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+84
+45
+DEUTSCHE POST AG (HGB)
+Deutsche Post AG as parent company
+82 CONSOLIDATED FINANCIAL
+STATEMENTS
+6
+BOARDS AND COMMITTEES
+45
+Employees
+6
+Members of and mandates held by
+45
+Results of operations
+the Board of Management
+46
+45
+7
+47
+Net assets and financial position
+Expected developments, opportunities and risks
+the Supervisory Board
+48
+NON-FINANCIAL STATEMENT
+9
+REPORT OF THE SUPERVISORY BOARD
+48
+Strategic orientation
+51
+Environment
+13
+REPORTING PRACTICE
+Members of and mandates held by
+EDITORIAL
+4
+3
+33.64
+24,336
+million kWh
+3,194
+3,194
+3,099
+%
+75
+76
+77
+3,091
+83
+36
+39.36
+27,296
+3,190
+5/5
+519,544
+%
+21.5
+4.4
+547,459
+22.1
+4.3
+546,924
+Deutsche Post DHL Group - 2021 Annual Report
+CONTENTS
+CONTENTS
+1 EBIT/revenue. 2 After deduction of non-controlling interests. 3 Capex relating to assets acquired. 4 Equity (including non-controlling interests)/total equity and liabilities. 5 Calculation, > Combined management report.
+and equity (including non-controlling interests). 7 The average weighted number of shares outstanding is used for the calculation. 8 The average weighted number of shares outstanding is adjusted for the number of all potentially dilutive shares.
+⁹ Cash flow from operating activities. 10 Proposal. 11 Estimate. 12 Tank-to-wheel. 13 Well-to-wheel. 14 Including electric vehicles. 15 Headcount at the end of the year, including trainees. 16 Middle and upper management.
+6 Net debt/net debt
+96
+53
+%
+3.9
+4.2
+25.1
+592,263
+571,974
+23.2
+22.2
+3.9
+Workforce
+56 Corporate citizenship
+82
+61
+Future economic parameters
+25
+Research and development
+62
+Expected developments
+26
+Steering metrics
+63
+67
+Opportunity and risk categories
+28
+REPORT ON ECONOMIC POSITION
+73
+Overall assessment
+28
+Forecast/actual comparison
+w w
+32
+30 Results of operations
+Significant events
+Annual Corporate Governance Statement
+Disclosures required by takeover law
+80
+Strategy
+74
+74
+30
+Economic parameters
+29
+Overall assessment
+29
+GOVERNANCE
+33.20
+23,100
+24
+61
+INCOME STATEMENT
+82 STATEMENT OF COMPREHENSIVE INCOME
+83
+BALANCE SHEET
+84
+CASH FLOW STATEMENT
+86
+STATEMENT OF CHANGES IN EQUITY
+87
+NOTES TO THE CONSOLIDATED FINANCIAL
+STATEMENTS OF DEUTSCHE POST AG
+Company information
+Basis of preparation
+102 Segment reporting disclosures
+105 Income statement disclosures
+57
+Corporate governance
+Business model
+14
+87
+OPPORTUNITIES AND RISKS
+GENERAL INFORMATION
+14
+Forecast period
+87
+61
+REPORT
+EU Taxonomy
+60
+COMBINED MANAGEMENT
+14
+EXPECTED DEVELOPMENTS,
+39
+37
+33
+35.63
+23,243
+€m
+3,297
+5,796
+6,049
+7,699
+9,993
+Free cash flow
+Capex³
+Equity ratio4
+Net debt5
+Net gearing
+Stock data
+Basic earnings per share?
+Diluted earnings per share
+Net cash from operating activities
+Cash flow per share7,9
+Dividend distribution
+Number of shares as at 31 December
+Year-end closing price
+ESG figures
+GHG efficiency index (CEX) 12
+GHG emissions13
+Energy consumption, company fleet
+€m
+1,432
+1,059
+867
+2,535
+4,092
+€m
+Dividend per share
+5,053
+2,979
+2,623
+Financial figures
+Revenue
+€m
+60,444
+Profit from operating activities (EBIT)
+€m
+3,741
+61,550
+3,162
+63,341
+4,128
+66,716
+4,847
+81,747
+7,978
+Return on sales¹
+%
+6.2
+5.1
+2,075
+2,713
+€m
+Consolidated net profit for the period²
+5,186
+2,199
+2,268
+1,509
+2,175
+€m
+EBIT after asset charge (EAC)
+9.8
+7.3
+6.5
+716
+2,648
+3,617
+2,999
+6.22
+8.11
+€
+1.15
+1.15
+1.15
+1.35
+1.8010
+€m
+1,409
+1,419
+1,422
+1,673
+millions
+€
+1,228.7
+39.75
+1,236.5
+23.91
+34.88
+21,733
+million kWh
+million tonnes CO₂e
+32
+index points
+Share of valid compliance-relevant training certificates¹6
+4.90
+Lost time injury frequency rate (LTIFR) per 200,000 working hours
+Number of employees 15
+Employee Opinion Survey, approval rate for Employee Engagement KPI
+Energy consumption, company buildings and facilities¹4
+2,20510,11
+1,239.1
+56.54
+1,239.1
+40.50
+1,236.5
+34.01
+Share of women in executive positions¹6
+35
+4.71
+€
+3,895
+%
+33.4
+27.5
+27.6
+25.5
+30.7
+€m
+1,938
+12,303
+13,367
+12,928
+12,772
+%
+13.1
+47.0
+48.2
+4.01
+2.36
+2.09
+1.66
+2.15
+€
+2.72
+4.10
+2.13
+1.69
+2.24
+€
+39.6
+47.9
+2.41
+44
+Divisions
+Financial position
+Fraport Brasil S.A. Aeroporto de Porto Alegre, Brazil
+(Supervisory Board, Chair) 4
+Fraport Brasil S.A. Aeroporto de Fortaleza, Brazil
+(Supervisory Board, Chair) 4
+Employee representatives
+Membership of statutory supervisory boards
+Jörg von Dosky
+PSD Bank München eG
+Stephan Teuscher
+DHL Hub Leipzig GmbH (Deputy Chair)
+Membership of comparable bodies
+Andrea Kocsis
+KfW Bankengruppe (Board of Directors)
+4
+Group mandate, KfW Bankengruppe. 2 Group mandate, Lanxess AG. 3 Group mandates, Volkswagen AG. Group mandates, Fraport AG.
+You can find more information on our
+Fraport Regional Airports of Greece Management Company S.A.,
+Greece (Board of Directors, Chair) 4
+website.
+Deutsche Post DHL Group - 2021 Annual Report
+9
+REPORT OF THE
+SUPERVISORY BOARD
+Dear Shareholders,
+As the world's leading logistics company, we grew signifi-
+cantly in the year under review, demonstrated our resilience
+and strength and were optimally prepared for global trade
+with restricted logistics capacities. We were thus able to
+successfully navigate the second year of the pandemic
+and the various challenges it posed for the company's cus-
+tomers and employees, as well as all divisions.
+The Board of Management kept the Supervisory Board
+up to date with information that allowed it to once again
+deal with the current developments in detail. In a spirit
+of trust and openness, a lively and intensive exchange of
+information on all important aspects of the business took
+place between members of the Board of Management
+and the Supervisory Board during regular meetings of the
+Supervisory Board committees and in plenary, as well as in
+the discussions held between meetings.
+Attendance at plenary and committee meetings
+For meetings of the plenary and the committees where they
+held seats, members of the Supervisory Board once again
+recorded a 100% attendance rate.
+The members of the Board of Management par-
+ticipated in five plenary meetings and reported on the
+business performance in the divisions for which they are
+responsible. The Supervisory Board dealt with certain
+agenda items without the presence of the Board of Man-
+agement members. The CEO and the members of the Board
+of Management responsible for their relevant agenda top-
+ics attended the 21 committee meetings. Executives from
+the tier immediately below the Board of Management and
+representatives of the auditors were also invited to attend
+for individual agenda items. In the autumn, I held talks with
+Attendance at plenary and committee meetings 2021
+Supervisory Board members
+Dr Nikolaus von Bomhard (Chair)
+Andrea Kocsis (Deputy Chair)
+Dr Günther Bräunig
+Dr Mario Daberkow
+Ingrid Deltenre
+REPORT OF THE SUPERVISORY BOARD
+(Board of Directors, Chair) 4
+Fraport Regional Airports of Greece B S.A., Greece
+(Board of Directors, Chair) 4
+ZF Friedrichshafen AG (since 1 January 2021),
+(Chair since 1 January 2022)
+Dr Jörg Kukies
+KfW IPEX-Bank GmbH¹
+Simone Menne
+BMW AG (until 18 May 2021)
+Henkel AG & Co. KGaA
+Lawrence Rosen
+Lanxess AG
+Lanxess Deutschland GmbH²
+Prof. Dr-Ing. Katja Windt
+Fraport AG
+Membership of comparable bodies
+Dr Nikolaus von Bomhard (Chair)
+Athora Holding Ltd., Bermuda (Board of Directors, Chair)
+Dr Mario Daberkow
+Softbridge-Projectos Tecnológicos S.A., Portugal
+(Board of Directors) ³
+Volkswagen Participações Ltda., Brazil (Supervisory Board) 3
+Volkswagen Holding Financière S.A., renamed Volkswagen
+Financial Service France S.A. on 5 August 2021, France
+(Supervisory Board) 3
+Fraport Regional Airports of Greece A S.A., Greece
+Fraport Ausbau Süd GmbH (Supervisory Board, Chair) 4
+Dr Stefan Schulte
+Qiagen N.V., Netherlands (Supervisory Board, Chair)
+Lawrence Rosen
+Johnson Controls International plc, Ireland (Board of Directors)
+Russell Reynolds Associates Inc., USA (Board of Directors)
+Jörg von Dosky
+Gabriele Gülzau
+Thomas Held
+Simone Menne
+Dr Jörg Kukies
+Banque Cantonale Vaudoise SA, Switzerland (Board of Directors)
+Agence France Presse, France (Board of Directors)
+Akara Funds AG, Switzerland (Board of Directors)
+Givaudan SA, Switzerland (Board of Directors)
+Ingrid Deltenre
+VW Credit, Inc., USA (Board of Directors)³
+Volkswagen Payments S.A., Luxembourg (Supervisory Board, Chair) 3
+Volkswagen S.A., Institución de Banca Múltiple, Mexico
+(Supervisory Board) 3 (until 7 October 2021)
+KfW Bankengruppe (Deputy member of the Board of Directors)
+(until 8 December 2021)
+several investors and proxies regarding issues that are the
+Supervisory Board's responsibility.
+Key topics addressed in plenary meetings
+Discussions in all plenary meetings involved the compa-
+ny's financial position and business performance as well as
+Supervisory Board meetings
+100
+Mario Jacubasch
+5/5
+100
+1/1
+100
+Thomas Koczelnik (until 31 August 2021)
+3/3
+100
+10/10
+100
+Thorsten Kühn
+5/5
+100
+3/3
+100
+Dr Jörg Kukies
+100
+2/2
+Yusuf Özdemir (since 9 September 2021)
+Lawrence Rosen
+100
+7/7
+100
+6/6
+5/5
+5/5
+Ulrike Lennartz-Pipenbacher
+Simone Menne
+100
+11/11
+100
+5/5
+100
+Fresenius Management SE
+100
+Dr Heinrich Hiesinger
+Attendance/meetings
+Attendance Attendance/meetings
+Committee meetings
+Attendance
+%
+%
+5/5
+100
+14/14
+100
+5/5
+100
+13/13
+100
+5/5
+100
+616
+100
+100
+4/4
+100
+5/5
+100
+5/5
+5/5
+100
+100
+8/8
+100
+5/5
+100
+5/5
+5/5
+BMW AG
+Dr Heinrich Hiesinger
+Deutsche Telekom AG
+BOARDS AND COMMITTEES
+Members of and mandates held by
+the Board of Management
+Members
+Deutsche Post DHL Group - 2021 Annual Report
+Additional mandates
+Dr Frank Appel
+Chief Executive Officer
+Global Business Services
+Born in 1961, nationality German
+Board member since November 2002
+CEO since February 2008
+Appointed until May 2023
+Ken Allen
+eCommerce Solutions
+Born in 1955, nationality British
+Board member since February 2009
+Appointed until July 2022
+Global Forwarding, Freight
+Tim Scharwath
+Born in 1963, nationality British
+Board member since January 2019
+Appointed until December 2026
+John Pearson
+Express
+Born in 1976, nationality German
+Board member since September 2017
+Appointed until August 2025
+Human Resources
+BOARDS AND COMMITTEES
+Dr Thomas Ogilvie
+Born in 1975, nationality German
+Dr Tobias Meyer
+Post & Parcel Germany
+Born in 1971, nationality German
+Board member since October 2014
+Appointed until May 2027
+Board member since October 2019
+Appointed until September 2027
+Melanie Kreis
+Finance
+Born in 1967, nationality Dutch
+Oscar de Bok
+Supply Chain
+Board member since April 2019
+Appointed until March 2027
+Born in 1965, nationality German
+Board member since June 2017
+Appointed until May 2025
+Sincerely yours, Frank Appel
+Chief Executive Officer
+Our globally dedicated team
+is our greatest asset and
+the key to our success.
+Net assets
+Opportunity and risk management
+111 Balance sheet disclosures
+131
+Lease disclosures
+132
+Cash flow disclosures
+133 Other disclosures
+152 RESPONSIBILITY STATEMENT
+153 INDEPENDENT AUDITOR'S REPORT
+158 INDEPENDENT PRACTITIONER'S REPORT
+161 FINANCIAL CALENDAR
+161 CONTACTS
+EDITORIAL
+We demonstrated our full
+strength during challenging
+times and achieved a new
+record performance.
+Frank Appel
+Deutsche Post DHL Group - 2021 Annual Report
+In addition to our dedication to the climate and the envi-
+ronment, we are also making progress in the other areas.
+Our globally dedicated team is our greatest asset and
+a high level of satisfaction amongst our approximately
+590,000 employees is the key to our success. We therefore
+advocate for a safe, inclusive and motivating working envi-
+ronment. DHL Express being honoured as the number one
+best workplace in Europe in 2021 by the international re-
+search and consulting institute Great Place to Work® is just
+one result of our numerous measures. As a global company,
+we bear an enormous responsibility, which is why respon-
+sible actions, ethical business practices and fair conduct
+form an integral part of our corporate management and
+our collaboration with our partners.
+We will support our ambitious target of reducing the
+greenhouse gas emissions of the Group to below 29 mil-
+lion tonnes by the year 2030 with additional spending of
+€7 billion. In spite of the coronavirus pandemic, we did not
+lose sight of our plans, which correspond to the stipulations
+of the Science Based Targets Initiative. Additionally, for the
+first time, we assessed the opportunities and risks arising
+from climate change in accordance with the requirements
+of the Task Force on Climate-related Financial Disclosures
+(TCFD) and classified our contribution to the climate targets
+of the EU within the framework of the EU taxonomy.
+We are actively taking on
+the challenges of the future.
+We still consider climate change to be one of the greatest
+threats facing humanity. We want to make the world a bet-
+ter place for all of us, and we are making the necessary
+adjustments to be able to actively take on future challenges
+and to create sustainable value. With our ESG Roadmap,
+which we introduced in March 2021, we reinforced and re-
+aligned our previous measures. We have implemented key
+performance indicators and set ourselves clear targets for
+environmentally friendly logistics, social responsibility and
+corporate governance.
+focusing heavily on our profitable logistics core businesses,
+with the acquisition of J.F. Hillebrand, for example, we will
+continue to expand our position in ocean freight. Through
+consistent investment in digital solutions, we have optimised
+our processes and achieved greater efficiency in day-to-day
+operations. Thanks to the national and international expan-
+sion of our parcel delivery network, we were able to ensure
+that the significantly higher demand and increased volumes
+in cross-border e-commerce could be met around the globe.
+Additionally, with logistics services for vaccinations, we are
+making an important contribution to fighting the pandemic.
+5
+In spite of the pandemic, our profitability reached a new
+level in the previous year. With our Group strategy, we are
+more resilient than ever and we will continue to focus on
+our profitable core businesses, sustainability, digital solu-
+tions and e-commerce. At the moment, due to the current
+shocking situation in Ukraine, we are all working to provide
+support to those directly affected and to ensure the safety
+of our employees. The impact of the conflict in Eastern
+Europe on the global economy and the world's transpor-
+tation markets is currently hard to assess. We will continue
+to closely monitor the situation.
+Deutsche Post DHL Group - 2021 Annual Report
+With Strategy 2025, we are setting ourselves the right goals
+and pursuing them with consistency and discipline. By
+Our strategy makes us
+more resilient than ever.
+mand for complex logistics solutions. This resulted in record
+performances, quarter for quarter, thanks to the collabora-
+tion of our divisions and the flexibility of our global network.
+We therefore increased earnings projections three times in
+2021 and, with Group EBIT of €8.0 billion, even exceeded
+this target. With this result, we have achieved a new level of
+performance and concluded the financial year as the most
+successful in the history of the company.
+Our organisation is stronger than ever before. Although
+2021 was no less challenging than 2020, we were able to
+considerably increase our performance and efficiency in
+many areas. As a market leader, we have taken on a central
+role in global trade and benefited from the increased de-
+Dear Readers, 2021 was yet another challenging year in
+which we demonstrated that we offer reliable delivery
+even in a turbulent market environment. We began the
+second year in the circumstances of the pandemic in
+excellent shape and further strengthened our market
+position with the right measures. In addition to the top
+priority of protecting our employees and customers, we
+responded flexibly to changing circumstances and in-
+vested continuously to expand our resources and secure
+critical supply chains.
+4
+EDITORIAL
+2021
+Membership of statutory supervisory boards
+Fresenius Management SE (Supervisory Board)
+(since 21 May 2021)
+Chair of the Group and Company Executive Representation
+Committee, Deutsche Post AG
+Gabriele Gülzau
+Chair of the Works Council, Deutsche Post AG, Hamburg Operations
+Branch
+Thomas Held
+Chair of the Central Works Council, Deutsche Post AG
+Mario Jacubasch
+Deputy Chair of the Group Works Council, Deutsche Post AG
+(until 31 August 2021)
+Chair of the Group Works Council, Deutsche Post AG
+(since 1 September 2021)
+Thomas Koczelnik
+(until 31 August 2021)
+Chair of the Group Works Council, Deutsche Post AG
+Thorsten Kühn
+Head of Postal Services, Co-determination and Youth, and Head of
+National Postal Services Group at ver.di National Administration
+Ulrike Lennartz-Pipenbacher
+Deputy Chair of the Central Works Council, Deutsche Post AG
+Yusuf Özdemir
+(since 9 September 2021)
+Deputy Chair of the Group Works Council and Deputy Chair of the
+Central Works Council, Deutsche Post AG
+Stephan Teuscher
+Deutsche Pfandbriefbank AG (Chair)
+Dr Günther Bräunig
+Münchener Rückversicherungs-Gesellschaft AG (Munich Re)
+(Chair)
+Dr Nikolaus von Bomhard (Chair)
+Membership of statutory supervisory boards
+Shareholder representatives
+Jörg von Dosky
+8
+1
+Additional mandates
+BOARDS AND COMMITTEES
+Deputy Chair of the Works Council, Deutsche Post AG, Augsburg
+Operations Branch
+Stefanie Weckesser
+Head of Wage, Civil Servant and Social Policies in the Postal
+Services, Forwarding Companies and Logistics Department, ver.di
+National Administration
+Deutsche Post DHL Group - 2021 Annual Report
+Dr Frank Appel
+Deputy Chair of ver.di National Executive Board and Head of Postal
+Services, Forwarding Companies and Logistics Department on the
+ver.di National Executive Board
+Employee representatives
+Membership of comparable bodies
+Ken Allen
+Blue Dart Express Ltd., India (Board of Directors)¹
+(until 28 February 2021)
+You can find more information on our website.
+1 Group mandate.
+6
+BOARDS AND COMMITTEES
+Members of and mandates held by
+the Supervisory Board
+Members
+Deutsche Post DHL Group - 2021 Annual Report
+7
+Shareholder representatives
+Dr Nikolaus von Bomhard (Chair)
+Chair of the Supervisory Board and former Chair of the Board of
+Management, Münchener Rückversicherungs-Gesellschaft AG
+(Munich Re)
+Dr Günther Bräunig
+Chair of the Board of Management, KfW Bankengruppe
+(until 31 October 2021)
+Former Chair of the Board of Management, KfW Bankengruppe
+(since 1 November 2021)
+Member of the Managing Board of SMS group GmbH
+Prof. Dr-Ing. Katja Windt
+Chair of the Executive Board of Fraport AG
+Dr Stefan Schulte
+Member of various supervisory boards, former member of the
+Board of Management, Deutsche Post AG
+Lawrence Rosen
+Andrea Kocsis (Deputy Chair)
+Member of various supervisory boards, former member of the
+Board of Managing Directors of Boehringer Ingelheim GmbH
+Dr Jörg Kukies
+Member of various supervisory boards, former Chair of the Board
+of Management, thyssenkrupp AG
+Dr Heinrich Hiesinger
+Member of various boards of directors, former Director General of
+the European Broadcasting Union
+Member of the Managing Board of Volkswagen Financial Services AG
+Ingrid Deltenre
+Dr Mario Daberkow
+State Secretary, Federal Ministry of Finance (until 8 December 2021)
+State Secretary, Federal Chancellery (since 9 December 2021)
+Simone Menne
+2020
+adjusted
+2019
+2018
+100
+7/7
+100
+5/5
+100
+13/13
+100
+5/5
+100
+7/7
+100
+5/5
+100
+Dr Stefan Schulte
+Stephan Teuscher
+Stefanie Weckesser
+Prof. Dr-Ing. Katja Windt
+REPORT OF THE SUPERVISORY BOARD
+Deutsche Post DHL Group - 2021 Annual Report
+10
+The Strategy Committee met six times, primarily ad-
+dressing the strategic positioning of the individual business
+The Finance and Audit Committee met seven times.
+It examined the financial statements and the combined
+management report for the company and the Group. The
+committee also discussed the half-yearly financial report
+following the review by the auditor and the quarterly fi-
+nancial statements with the CEO, the Board member for
+finance and the auditor prior to publication. In addition, it
+issued the audit engagement for the audit firm elected by
+the Annual General Meeting and specified the key audit
+priorities. Also covered at the meetings were the non-audit
+services provided by the audit firm, the accounting process,
+risk management and the findings of internal audits. It ob-
+tained detailed reports from the Chief Compliance Officer
+on important aspects of compliance and on updates to the
+compliance organisation and compliance management.
+The Personnel Committee held four meetings. Dis-
+cussions focussed on keeping employees safe during the
+pandemic, promoting women to executive positions, HR
+processes and services, the development of leadership and
+corporate culture, and ensuring the preservation of talents
+and skills.
+The Executive Committee met three times and dealt
+mainly with Board of Management issues, particularly re-
+viewing succession planning.
+a few matters, including approval for property transac-
+tions and secondary activities of Board of Management
+members. The committee chairs report extensively in
+the plenary meetings on the work of the committees. The
+composition of the committees is outlined in the Annual
+Corporate Governance Statement.
+Key topics addressed in committee meetings
+The six committees of the Supervisory Board prepare the
+decisions to be made in the plenary meetings. They have
+also been tasked with taking the final decisions regarding
+5/5
+2/2
+In an extraordinary meeting held in August, we approved
+a strategically relevant acquisition of the J.F. Hillebrand
+Group-which significantly reinforced the Deutsche Post DHL
+Group's position in the ocean freight sector.
+-
+Group's succession planning with a special focus on female
+executives.
+In our June meeting, we appointed Melanie Kreis, the
+Board member responsible for Finance, and Tobias Meyer,
+the Board member responsible for the Post & Parcel
+Germany division, respectively, to further five-year terms
+on the company's Board of Management. Both Board
+members have made major improvements to their areas
+of responsibility and they make an important contribution
+to the company's Board of Management with their skills
+and experience, thereby expanding the skills profile of
+the Board. The meeting also included discussions of the
+In March 2021, we discussed the annual and consol-
+idated financial statements, including the management
+report and the non-financial report. Following the report
+by the auditor regarding the findings of the audit, we
+approved the financial statements at the recommendation
+of the Finance and Audit Committee. We concurred with
+the Board of Management's proposed resolution on the
+appropriation of the net retained profit and the redemption
+of up to 30 million shares for the share buy-back planned
+for the reporting period. We determined the annual bonus
+for active Board of Management members based upon the
+degree of target achievement and corresponding recom-
+mendations by the Strategy Committee as well as Executive
+Committee and extended John Pearson's mandate by five
+years. The proposed resolutions for the 2021 Annual Gen-
+eral Meeting, including the re-election of Ingrid Deltenre
+and me for a second four-year term and Katja Windt for a
+third two-year term, were also approved at this meeting.
+We also held in-depth discussions on the sustainability
+strategy of the company.
+reports on committee meetings. The following key topics
+were also addressed:
+In our September meeting, we addressed the sale
+of StreetScooter Engineering GmbH and our committee
+memberships. Without the presence of the Board of Man-
+agement, we discussed the efficiency of our activities in
+the plenary meetings and in the committees at length and
+concluded that we performed and continue to perform our
+monitoring and advisory duties effectively and efficiently.
+100
+In our final Supervisory Board meeting of the year held
+in December, we decided that Tobias Meyer would succeed
+Frank Appel, and Nikola Hagleitner would succeed Tobias
+Meyer. We appointed Oscar de Bok, the Board member
+responsible for the Supply Chain division, to another five-
+year term on the Board of Management until 30 Septem-
+ber 2027. In addition, we discussed an increase to the
+Supervisory Board member remuneration. We approved
+the Group's business plan for 2022. We added sustainability
+topics to the responsibilities of the Strategy Committee and
+expanded the Supervisory Board skills profile to include
+these topics as well, and we defined the ESG targets for
+variable remuneration of Board of Management members
+for the 2022 financial year.
+100
+2017
+Key figures
+Deutsche Post DHL
+Group
+BHL
+DHL
+2021 ANNUAL REPORT
+ON A NEW
+LEVEL
+The carrying amounts of non-monetary assets recognised at sig-
+nificant consolidated companies operating in hyperinflationary
+economies are generally indexed in accordance with IAS 29 and
+thus reflect the current purchasing power at the reporting date.
+In accordance with IAS 21, receivables and liabilities in the
+financial statements of consolidated companies that have been
+prepared in local currencies are translated at the closing rate
+as at the reporting date. Currency translation differences are
+recognised in other operating income and expenses in the in-
+come statement. In the 2021 financial year, income of €336 mil-
+lion (previous year: €294 million) and expenses of €321 million
+(previous year: €308 million) resulted from currency translation
+differences. In contrast, currency translation differences relating
+to net investments in a foreign operation are recognised in other
+comprehensive income.
+7
+Accounting policies
+Uniform accounting policies are applied to the annual financial
+statements of the entities included in the consolidated financial
+statements. The consolidated financial statements are prepared
+under the historical cost convention, except for items that are
+required to be recognised at their fair value.
+The revenue generated by providing other logistics ser-
+vices is recognised in the reporting period in which the service
+was rendered.
+Deutsche Post DHL Group's normal business operations consist
+of the provision of logistics services comprising express deliv-
+ery, freight transport, supply chain management, e-commerce
+solutions and letter and parcel dispatch in Germany. All income
+relating to normal business operations is recognised as revenue
+in the income statement. All other income is reported as other
+operating income.
+Revenue is recognised when control over the goods or ser-
+vices transfers to the customer, i.e. when the customer has the
+ability to control the use of the transferred goods or services
+provided and generally derive their remaining benefits. There
+must be a contract with enforceable rights and obligations and,
+amongst other things, the receipt of consideration must be likely,
+taking into account the customer's credit quality. Revenue corre-
+sponds to the transaction price to which the Group is expected to
+be entitled. Variable consideration is included in the transaction
+price when it is highly probable that a significant reversal in the
+amount of revenue recognised will not occur and to the extent
+that the uncertainty associated with the variable consideration
+no longer exists. The Group does not expect to have contracts
+where the period between the transfer of the promised goods
+and/or services to the customer and payment by the customer
+exceeds one year. Accordingly, the promised consideration is not
+adjusted for the time value of money. For each performance obli-
+gation, revenue is either recognised at a point in time or over time.
+The obligation to perform transport services is fulfilled over time
+and revenue is recognised over the performance period.
+United States
+Whenever third parties are involved in the performance of
+a service, a distinction must be drawn between the principal and
+agent. If Deutsche Post DHL Group serves as the principal, then
+the gross amount of revenue is recognised. If the Group acts as
+the agent, the net amount is recognised. The transaction price for
+this specific service is limited to the amount of the commission to
+be received. Deutsche Post DHL Group is generally the principal
+when transport services are provided.
+Operating expenses are recognised in income when the
+service is utilised or when the expenses are incurred.
+Revenue and expense recognition
+Sweden
+84.9217
+121.8717
+10.4793
+1.1468
+India
+7.6120
+0.8581
+9.1859
+87.3248
+130.3173
+10.1551
+1.1816
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+84.2390
+130.4249
+10.2528
+1.1328
+126.4647
+10.0295
+1.2268
+89.6163
+8.8952
+8.8351
+9.5118
+Hong Kong
+0.8893
+0.8401
+Japan
+Deutsche Post DHL Group - 2021 Annual Report
+Intangible assets, which comprise internally generated and pur-
+chased intangible assets and purchased goodwill, are measured
+at amortised cost.
+22
+8 to 10
+Years¹
+20 to 50
+10 to 20
+15 to 20
+4 to 5
+4 to 18
+Other operating and office equipment
+Transport equipment and vehicle fleet
+IT equipment
+Technical equipment and machinery
+Aircraft
+Buildings
+Useful lives
+Property, plant and equipment is carried at cost, reduced by ac-
+cumulated depreciation and valuation allowances. In addition to
+direct costs, production cost includes an appropriate share of al-
+locable production overhead costs. Borrowing costs that can be
+allocated directly to the purchase, construction or manufacture
+of property, plant and equipment are capitalised. Value added
+tax arising in conjunction with the acquisition or production of
+items of property, plant or equipment is included in the cost if it
+cannot be deducted as input tax. Depreciation is charged using
+the straight-line method. The estimated useful lives applied to
+the major asset classes are presented in the table below:
+Property, plant and equipment
+Intangible assets that are not affected by legal, economic, con-
+tractual or other factors that might restrict their useful lives are
+considered to have indefinite useful lives. They are not amortised
+but are tested for impairment annually or whenever there are
+indications of impairment. They generally include brand names
+from business combinations and goodwill, for example. Impair-
+ment testing is carried out in accordance with the principles de-
+scribed in the Impairment section.
+1 The useful lives indicated represent maximum amounts specified by the Group. The
+actual useful lives may be shorter due to contractual arrangements or other specific
+factors such as time and location.
+92
+up to 20
+Customer relationships
+Licences
+Purchased software
+up to 5
+up to 10
+Internally developed software
+Years¹
+Useful lives
+Intangible assets (excluding goodwill) are amortised
+using the straight-line method over their useful lives. Impair-
+ment losses are recognised in accordance with the principles
+described in the Impairment section. The useful lives of signif-
+icant intangible assets are as follows:
+Internally generated intangible assets are recognised at
+cost if it is probable that their production will generate an in-
+flow of future economic benefits and the costs can be reliably
+measured. In the Group, this concerns internally developed soft-
+ware. If the criteria for capitalisation are not met, the expenses
+are recognised immediately in income in the year in which they
+are incurred. In addition to direct costs, the production cost of
+internally developed software includes an appropriate share of
+allocable production overhead costs. Any borrowing costs in-
+curred for qualifying assets are included in the production cost.
+Value added tax arising in conjunction with the acquisition or
+production of intangible assets is included in the cost if it cannot
+be deducted as input tax. Capitalised software is amortised over
+its useful life.
+0.8984
+Intangible assets
+term of
+agreement
+United Kingdom
+China
+7.2024
+the amount calculated separately for the debt component from
+the fair value of the instrument as a whole. The transaction costs
+are deducted on a proportionate basis.
+Liabilities
+Trade payables and other liabilities are carried at amortised cost.
+Most of the trade payables have a maturity of less than one year.
+The fair value of the liabilities corresponds more or less to their
+carrying amount.
+Deferred taxes
+In accordance with IAS 12, deferred taxes are recognised for
+temporary differences between the carrying amounts in the
+IFRS financial statements and the tax accounts of the individual
+entities. Deferred tax assets also include tax reduction claims
+which arise from the expected future utilisation of existing tax
+loss carryforwards and which are likely to be realised. The re-
+coverability of the tax reduction claims is assessed on the basis
+of each entity's earnings projections, which are derived from the
+Group projections and take any tax adjustments into account.
+The planning horizon is five years.
+In compliance with IAS 12.24(b) and IAS 12.15(b), deferred
+tax assets or liabilities were only recognised for temporary differ-
+ences between the carrying amounts in the IFRS financial state-
+ments and in the tax accounts of Deutsche Post AG where the
+differences arose after 1 January 1995. No deferred tax assets or
+liabilities are recognised for temporary differences resulting from
+initial differences in the opening tax accounts of Deutsche Post AG
+as at 1 January 1995. Further details on deferred taxes on tax loss
+carryforwards can be found in > note 28.
+In accordance with IAS 12, deferred tax assets and liabili-
+ties are calculated using the tax rates applicable in the individual
+countries at the reporting date or announced for the time when
+the deferred tax assets and liabilities are realised. The tax rate
+applied to German Group companies is unchanged at 30.5%. It
+comprises the corporation tax rate plus the solidarity surcharge,
+as well as a municipal trade tax rate that is calculated as the
+average of the different municipal trade tax rates. Foreign Group
+companies use their individual income tax rates to calculate de-
+ferred tax items. The income tax rates applied for foreign com-
+panies amount to up to 38% (previous year: 38%).
+Income taxes
+Income tax assets and liabilities are recognised when they are
+probable. They are measured at the amounts for which repay-
+ments from, or payments to, the tax authorities are expected
+to be received or made. If uncertain tax items are recognised
+because they are probable, they are measured at their most
+likely amount. Tax-related fines are recognised in income taxes
+if they are included in the calculation of income tax liabilities,
+due to their inclusion in the tax base and/or tax rate. All income
+tax assets and liabilities are current and have maturities of less
+than one year.
+Contingent liabilities
+Contingent liabilities represent possible obligations whose ex-
+istence will be confirmed only by the occurrence, or non-occur-
+rence, of one or more uncertain future events not wholly within
+the control of the enterprise. Contingent liabilities also include
+certain obligations that will probably not lead to an outflow of
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+CONVERTIBLE BOND ON DEUTSCHE POST AG SHARES
+The convertible bond on Deutsche Post AG shares is split into
+an equity and a debt component, in line with the contractual ar-
+rangements. The debt component, less the transaction costs, is
+reported under financial liabilities (bonds), with interest added
+back up to the issue amount over the term of the bond using the
+effective interest method (unwinding of the discount). The value
+of the call option, which allows Deutsche Post AG to redeem the
+bond early if a specified share price is reached, is attributed to the
+debt component in accordance with IAS 32.31. The conversion
+right is classified as an equity derivative and is reported in capital
+reserves. The carrying amount is calculated by assigning to the
+conversion right the residual value that results from deducting
+Deutsche Post DHL Group - 2021 Annual Report
+resources embodying economic benefits, or where the amount
+of the outflow of resources embodying economic benefits can-
+not be measured with sufficient reliability. In accordance with
+IAS 37, contingent liabilities are not recognised in the balance
+sheet; > note 44.
+8
+Exercise of judgement in applying the accounting
+policies
+The preparation of IFRS-compliant consolidated financial state-
+ments requires the exercise of judgement by management. All
+estimates are reassessed on an ongoing basis and are based on
+historical experience and expectations with regard to future
+events that appear reasonable under the given circumstances.
+For example, this applies to assets held for sale. In this case, man-
+agement must determine whether the assets are available for
+sale in their present condition and whether their sale is highly
+probable. If that is the case, the assets and associated liabilities
+must be measured and recognised as assets held for sale or li-
+abilities associated with assets held for sale.
+Estimates and assessments made by management
+The preparation of the consolidated financial statements in
+accordance with IFRSS requires management to make certain
+assumptions and estimates that may affect the amounts of the
+assets and liabilities included in the balance sheet, the amounts
+of income and expenses, and the disclosures relating to contin-
+gent liabilities. Examples of the main areas where assumptions,
+estimates and the exercise of management judgement occur are
+the recognition of provisions for pensions and similar obligations,
+the calculation of discounted cash flows for impairment test-
+ing and purchase price allocations, taxes and legal proceedings.
+Disclosures regarding the assumptions made in connection
+with the Group's defined benefit retirement plans can be found
+in > note 37.
+The Group has operating activities around the globe and is
+subject to local tax laws. Management can exercise judgement
+when calculating the amounts of current and deferred taxes in
+the relevant countries. Although management believes that it
+has made a reasonable estimate relating to tax matters that are
+inherently uncertain, there can be no guarantee that the actual
+outcome of these uncertain tax matters will correspond exactly
+to the original estimate made. Any difference between actual
+events and the estimate made could have an effect on tax li-
+abilities and deferred taxes in the period in which the matter is
+finally decided. The amount recognised for deferred tax assets
+could be reduced if the estimates of planned taxable income or
+changes to current tax laws restrict the extent to which future
+tax benefits can be realised.
+Goodwill is regularly reported in the Group's balance sheet
+as a consequence of business combinations. When an acquisition
+is initially recognised in the consolidated financial statements,
+all identifiable assets, liabilities and contingent liabilities are
+measured at their fair values at the date of acquisition. One of
+the important estimates this requires is the determination of the
+fair values of these assets and liabilities at the date of acquisi-
+tion. Land, buildings and office equipment are generally valued
+by independent experts, whilst securities for which there is an
+active market are recognised at the quoted exchange price. If in-
+tangible assets are identified in the course of an acquisition, their
+measurement can be based on the opinion of an independent
+external expert valuer, depending on the type of intangible asset
+and the complexity involved in determining its fair value. The
+independent expert determines the fair value using appropriate
+valuation techniques, normally based on expected future cash
+flows. In addition to the assumptions about the development of
+future cash flows, these valuations are also significantly affected
+by the discount rates used.
+Impairment testing for goodwill is based on assumptions
+about the future. The Group carries out these tests annually and
+also whenever there are indications that goodwill has become
+impaired. The recoverable amount of the CGU must then be cal-
+culated. This amount is the higher of fair value less costs to sell
+and value in use. Determining value in use requires assumptions
+and estimates to be made with respect to forecast future cash
+flows and the discount rate applied. Although management be-
+lieves that the assumptions made for the purpose of calculating
+the recoverable amount are appropriate, possible unforesee-
+able changes in these assumptions - e.g. a reduction in the EBIT
+margin, an increase in the asset charge or a decline in the long-
+term growth rate - could result in an impairment loss that could
+negatively affect the Group's net assets, financial position and
+results of operations.
+Pending legal proceedings in which the Group is involved
+are disclosed in > note 45. The outcome of these proceedings
+Disclosures on financial liabilities under leases can be
+found in the > Leases section.
+100
+7.9017
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+91
+7.9777
+1 The useful lives indicated represent maximum amounts specified by the Group. The
+actual useful lives may be shorter due to contractual arrangements or other specific
+factors such as time and location.
+1.6561
+1.5622
+1.5878
+1 EUR =
+2020
+2021
+1 EUR =
+1 EUR =
+Country
+Australia
+1 EUR =
+1.5781
+2021
+Deutsche Post DHL Group - 2021 Annual Report
+Average rates
+2020
+SEK
+USD
+JPY
+INR
+HKD
+GBP
+CNY
+AUD
+Currency
+for the Group were as follows:
+The exchange rates for the currencies that are significant
+14
+Closing rates
+If there are indications of impairment, an impairment test must
+be carried out; see the Impairment section.
+Financial liabilities are carried at fair value less transaction costs
+on initial recognition. The price determined in an efficient and
+liquid market or a fair value determined using the treasury risk
+management system deployed within the Group is taken as the
+fair value. Financial liabilities are measured at amortised cost in
+subsequent periods. Any differences between the amount re-
+ceived and the amount repayable are recognised in the income
+statement over the term of the loan using the effective interest
+method.
+At each reporting date, the carrying amounts of intangible assets,
+property, plant and equipment and investment property are
+reviewed for indications of impairment. If there are any such
+indications, an impairment test is carried out. This is done by
+determining the recoverable amount of the relevant asset and
+comparing it with the carrying amount.
+Cash and cash equivalents comprise cash, demand deposits and
+other short-term liquid financial assets with an original maturity
+of up to three months; they are carried at their principal amount.
+Overdraft facilities used are recognised in the balance sheet as
+amounts due to banks.
+Cash and cash equivalents
+loss from continuing operations until the final date of disposal.
+Gains and losses arising from the measurement at fair value less
+costs to sell of discontinued operations classified as held for sale
+are reported in profit or loss from discontinued operations. This
+also applies to the profit or loss from operations and the gain or
+loss on disposal of these components of an entity.
+97
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Assets held for sale are assets available for sale in their present
+condition and whose sale is highly probable. The sale must be ex-
+pected to qualify for recognition as a completed sale within one
+year of the date of classification. Assets held for sale may con-
+sist of individual non-current assets, groups of assets (disposal
+groups), components of an entity or a subsidiary acquired exclu-
+sively for resale (discontinued operations). Liabilities intended to
+be disposed of together with the assets in a single transaction
+form part of the disposal group or discontinued operation and
+are also reported separately as liabilities associated with assets
+held for sale. Assets held for sale are no longer depreciated or
+amortised, but are recognised at the lower of their fair value less
+costs to sell and the carrying amount. Gains and losses arising
+from the remeasurement of individual non-current assets or dis-
+posal groups classified as held for sale are reported in profit or
+Assets held for sale and liabilities associated with assets
+held for sale
+In accordance with IAS 20, government grants are recognised at
+their fair value only when there is reasonable assurance that the
+conditions attached to them will be complied with and that the
+grants will be received. The grants are reported in the income
+statement and are generally recognised as income over the
+periods in which the costs they are intended to compensate for are
+incurred. Where the grants relate to the purchase or production
+of assets, they are reported as deferred income and recognised
+in the income statement over the useful lives of the assets. Such
+deferred income is presented in other operating income.
+Government grants
+Inventories are assets that are held for sale in the ordinary course
+of business, are in the process of production or are consumed in
+the production process or in the rendering of services. They are
+measured at the lower of cost or net realisable value. Valuation
+allowances are charged for obsolete inventories and slow-mov-
+ing goods.
+Inventories
+In accordance with IAS 40, investment property is property held to
+earn rentals or for capital appreciation or both, rather than for use
+in the supply of services, for administrative purposes or for sale
+in the normal course of the company's business. It is measured in
+accordance with the cost model. Depreciable investment property
+is depreciated over a period of between 20 and 50 years using the
+straight-line method. The fair value is determined on the basis of
+expert opinions. Impairment losses are recognised in accordance
+with the principles described in the > Impairment section.
+Investment property
+If the right of offset is not enforceable in the normal course
+of business, the financial assets and liabilities are recognised in
+the balance sheet at their gross amounts as at the reporting date.
+The master netting arrangement then creates only a conditional
+right of offset.
+Financial assets and liabilities are offset on the basis of netting
+agreements (master netting arrangements) only if there is an
+enforceable right of offset and settlement on a net basis is in-
+tended as at the reporting date.
+Netting
+Financial liabilities are derecognised if the payment obli-
+gations arising from them have expired.
+Regular-way purchases and sales of financial assets are recog-
+nised at the settlement date, with the exception of derivatives in
+particular. A financial asset is derecognised when the rights to
+receive the cash flows from the asset have expired or have been
+transferred, and the Group has transferred essentially all risks
+and opportunities of ownership.
+Recognition and derecognition
+Net investment hedges in foreign entities are treated in
+the same way as cash flow hedges. The gain or loss from the
+effective portion of the hedge is recognised in other comprehen-
+sive income, whilst the gain or loss attributable to the ineffective
+portion is recognised directly in the income statement. The gains
+or losses recognised in other comprehensive income remain
+there until the disposal or partial disposal of the net investment.
+Detailed information on hedging transactions can be found in
+> note 43.
+reserve in equity. Ineffective portions resulting from changes in
+the fair value of the hedging instrument are recognised directly
+in income. The gains and losses generated by the hedging trans-
+actions are initially recognised in equity and are then reclassified
+to profit or loss in the period in which the financial asset acquired
+or financial liability assumed affects profit or loss. If a hedge of
+a firm commitment subsequently results in the recognition of
+a non-financial asset, the gains and losses recognised directly
+in equity are included in the initial carrying amount of the asset
+(basis adjustment).
+96
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+A cash flow hedge hedges the fluctuations in future cash
+flows from recognised assets and liabilities (in the case of inter-
+est rate risks), highly probable forecast transactions as well as
+unrecognised firm commitments that entail a currency risk. The
+effective portion of a cash flow hedge is recognised in the hedging
+A fair value hedge hedges the fair value of recognised assets
+and liabilities. Changes in the fair value of both the derivatives
+and the hedged item are recognised in income simultaneously.
+Non-controlling interests
+Non-controlling interests are the proportionate minority
+interests in the equity of subsidiaries and are recognised at their
+carrying amount. If an interest is acquired from, or sold to, other
+shareholders without affecting the existing control relation-
+ship, this is presented as an equity transaction. The difference
+between the proportionate net assets acquired from, or sold
+to, other shareholders and the purchase price is recognised in
+other comprehensive income. If non-controlling interests are in-
+creased by the proportionate net assets, no goodwill is allocated
+to the proportionate net assets.
+Equity-settled share-based payment transactions are measured
+at fair value at the grant date. The fair value of the obligation is
+recognised in staff costs over the vesting period. The fair value of
+equity-settled share-based payment transactions is determined
+using internationally recognised valuation techniques.
+Impairment
+Financial liabilities
+ultimate loss liabilities using actuarial methods and also com-
+missions an independent actuarial study of these each year in
+order to verify the reasonableness of its estimates.
+99
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+The technical reserves (insurance) consist mainly of out-
+standing loss reserves and IBNR (incurred but not reported
+claims) reserves. Outstanding loss reserves represent estimates
+of obligations in respect of actual claims or known incidents ex-
+pected to give rise to claims, which have been reported to the
+company but which have yet to be finalised and presented for
+payment. Outstanding loss reserves are based on individual
+claim valuations carried out by the company or its ceding insur-
+ers. IBNR reserves represent estimates of obligations in respect
+of incidents taking place on or before the reporting date that
+have not been reported to the company. Such reserves also
+include provisions for potential errors in settling outstanding
+loss reserves. The company carries out its own assessment of
+Other provisions are recognised for all legal or constructive ob-
+ligations to third parties existing at the reporting date that have
+arisen as a result of past events, that are expected to result in an
+outflow of future economic benefits and whose amount can be
+measured reliably. They represent uncertain obligations that are
+carried at the best estimate of the expenditure required to settle
+the obligation. Provisions with more than one year to maturity
+are discounted at market rates of interest that reflect the region
+and time to settlement of the obligation. The discount rates used
+in the financial year were between -0.30% and 10.00% (previous
+year: 0.00% to 7.75%). The effects arising from changes in inter-
+est rates are recognised in net financial income/net finance cost.
+Provisions for restructurings are only established in ac-
+cordance with the aforementioned criteria for recognition if
+a detailed, formal restructuring plan has been drawn up and
+communicated to those affected.
+Other provisions
+Contribution rates for one multi-employer retirement plan
+in the Netherlands are determined each year by the management
+body of the pension fund with the involvement of the central
+bank of the Netherlands, based on cost coverage. These con-
+tribution rates are the same for all employers and employees
+involved. There is no liability for the employer towards the fund
+beyond the contributions set, even in the case of withdrawal or
+obligations not met by other entities. Any subsequent under-
+funding ultimately results in the rights of members being cut
+and/or no indexation of their rights. The expected employer
+contributions to the fund for 2022 are €29 million (actual em-
+ployer contributions in the reporting period: €28 million, in the
+previous year: €25 million). As at 31 December 2021, the cover-
+age degree of plan funding was above a required minimum of
+approximately 105%, according to information provided by the
+fund. Deutsche Post DHL Group does not represent a significant
+portion of the fund in terms of contributions.
+law. The expected employer contributions to the funds for 2022
+are €73 million (actual employer contributions in the reporting
+period: €66 million, in the previous year: €58 million). Some of
+the plans in which Deutsche Post DHL Group participates are
+underfunded according to information provided by the funds.
+No information is available to the Group that would indicate
+any change from the contribution rates set by current collec-
+tive agreements. Deutsche Post DHL Group does not represent
+a significant level to any fund in terms of contributions, with the
+exception of one fund where the Group represents the largest
+employer in terms of contributions.
+Regarding these multi-employer plans in the United States,
+contributions are made based on collective agreements between
+the employer and the local union, with the involvement of the
+pension fund. There is no employer liability to any of the plans
+beyond the bargained contribution rates except in the event of a
+withdrawal meeting specified criteria, which could then include
+a liability for other entities' obligations as governed by US federal
+This also includes contributions to certain multi-employer
+plans which are basically defined benefit plans, especially in
+the United States and the Netherlands. However, the relevant
+institutions do not provide the participating companies with
+sufficient information to use defined benefit accounting. The
+plans are therefore accounted for as if they were defined con-
+tribution plans.
+To avoid variations in earnings resulting from changes in the
+fair value of derivative financial instruments, hedge accounting is
+applied where possible and economically useful. Gains and losses
+from the derivative and the related hedged item are recognised
+in income simultaneously. Depending on the hedged item and
+the risk to be hedged, the Group uses fair value hedges and cash
+flow hedges.
+Defined contribution retirement plans are in place for the
+Group's hourly workers and salaried employees, particularly in
+the United Kingdom, the United States and the Netherlands. The
+contributions to these plans are also reported in staff costs.
+Under Section 16 PostPersRG, the federal government
+makes good the difference between the current payment obli-
+gations of the PVK on the one hand, and the funding companies'
+current contributions or other return on assets on the other, and
+guarantees that the PVK is able at all times to meet the obliga-
+tions it has assumed in respect of its funding companies. Insofar
+as the federal government makes payments to the PVK under
+the terms of this guarantee, it cannot claim reimbursement from
+Deutsche Post AG.
+98
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Under the provisions of the Gesetz zum Personalrecht der
+Beschäftigten der früheren Deutschen Bundespost (PostPersRG-
+Former Deutsche Bundespost Employees Act), Deutsche Post AG
+provides retirement benefits and assistance benefits through the
+Postbeamtenversorgungskasse (PVK - Postal civil servant pen-
+sion fund) at the Bundesanstalt für Post und Telekommunikation
+(BAnst PT - German federal post and telecommunications
+agency) to retired employees or their surviving dependants
+who are entitled to benefits on the basis of a civil service ap-
+pointment. The amount of Deutsche Post AG's payment obli-
+gations is governed by Section 16 PostPersRG. This act obliges
+Deutsche Post AG to pay into the PVK an annual contribution of
+33% of the gross compensation of its active civil servants and the
+notional gross compensation of civil servants on leave of absence
+who are eligible for a pension.
+In accordance with statutory provisions, Deutsche Post AG pays
+contributions for civil servants in Germany to retirement plans
+which are defined contribution retirement plans for the company.
+These contributions are recognised in staff costs.
+DEFINED CONTRIBUTION RETIREMENT PLANS FOR CIVIL
+SERVANT EMPLOYEES IN GERMANY
+separately as pension assets. Where necessary, an asset ceiling
+must be applied when recognising pension assets. With regard
+to the cost components, the service cost is recognised in staff
+costs, net interest cost in net finance costs and the remeasure-
+ments outside the income statement in other comprehensive
+income. Any rights to reimbursement are reported separately
+in financial assets.
+Defined benefit obligations are measured using the projected
+unit credit method prescribed by IAS 19. This involves making
+certain actuarial assumptions. Most of the defined benefit
+retirement plans are at least partly funded via external plan
+assets. The remaining net liabilities are funded by provisions
+for pensions and similar obligations; net assets are presented
+THE GROUP'S DEFINED BENEFIT RETIREMENT PLANS
+There are arrangements (plans) in many countries under which
+the Group grants post-employment benefits to its employees.
+These benefits include pensions, lump-sum payments on retire-
+ment and other post-employment benefits and are referred to
+in these disclosures as retirement benefits, pensions and similar
+benefits, or pensions. A distinction must be made between de-
+fined benefit and defined contribution plans.
+Retirement benefit plans
+Cash-settled, share-based payments (stock appreciation
+rights, SARs) are measured on the basis of an option pricing
+model in accordance with IFRS 2. The stock appreciation rights
+are measured on each reporting date and on the settlement date.
+The amount determined for stock appreciation rights that will
+probably be exercised is recognised pro rata in income under
+staff costs, to reflect the services rendered as consideration dur-
+ing the vesting period (lock-up period). A provision is recognised
+for the same amount. Changes in value due to share price move-
+ments occurring after the grant date are recognised as other fi-
+nance costs in net finance costs.
+DEFINED CONTRIBUTION RETIREMENT PLANS FOR THE GROUP'S
+HOURLY WORKERS AND SALARIED EMPLOYEES
+The Group began to apply the IFRS 9 hedge accounting require-
+ments as at 1 January 2020.
+Share-based payments to executives
+Impairment losses on trade receivables and contract assets
+are offset against gains on the reversal of impairment losses.
+Further details are presented in > note 43.
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+As part of the review of leases in the Supply Chain division,
+the presentation of certain subleases embedded in customer
+contracts was standardised as finance leases at the lessor. In the
+balance sheet, this resulted in a reduction in rights of use and
+an increase in non-current financial assets; correspondingly, no
+Where the Group is the lessor in a finance lease, it recog-
+nises the assets as lease receivables in the amount of the net
+investment in the balance sheet.
+For operating leases, the Group reports the leased asset at
+amortised cost as an asset under property, plant and equipment
+where it is the lessor. The lease payments received in the period
+are recognised under other operating income or revenue if they
+belong to ordinary business activities.
+Lessor
+using the straight-line method. Additionally, the requirements
+do not apply to leases of intangible assets. The Group also exer-
+cises the option available for contracts comprising both lease and
+non-lease components to not separate these components, except
+in the case of real estate and aircraft leases. In addition, under
+IFRS 8, intra-Group leases - in line with internal management -
+are generally presented as operating leases in segment reporting.
+Extension and termination options exist for a number of
+leases, particularly for real estate. Such contract terms offer
+the Group the greatest possible flexibility in doing business. In
+determining lease terms, all facts and circumstances offering
+economic incentives for exercising extension options or not ex-
+ercising termination options are taken into account. Changes due
+to the exercise or non-exercise of such options are considered in
+determining the lease term only if they are sufficiently probable.
+The Group makes use of the relief options provided for
+leases of low-value assets and short-term leases (shorter than
+12 months) and expenses the payments in the income statement
+Right-of-use assets are subsequently measured at amor-
+tised cost. They are depreciated over the term of the lease using
+the straight-line method.
+• restoration obligations.
+⚫ initial direct costs; and
+⚫ lease payments made at or prior to delivery, less lease incen-
+tives received;
+Right-of-use assets are measured at cost, which comprises
+the following:
+24
+Lease payments are discounted at the interest rate implicit
+in the lease to the extent that this can be determined. Otherwise,
+they are discounted at the incremental borrowing rate of the
+respective lessee.
+expected residual payments from residual-value guarantees;
+the exercise price of call options when exercise is estimated
+to be sufficiently likely; and
+•
+• fixed payments, less lease incentives offered by the lessor;
+⚫ variable payments linked to an index or interest rate;
+In accordance with IFRS 16, the Group as lessee has recognised
+at present value assets for the right of use received and liabil-
+ities for the payment obligations entered into for all leases in
+the balance sheet. Lease liabilities include the following lease
+payments:
+Lessee
+A lease is a contract in which the right to use an asset (the leased
+asset) is granted for an agreed-upon period in return for com-
+pensation.
+Leases
+Since January 2005, goodwill has been accounted for us-
+ing the impairment-only approach in accordance with IFRS 3.
+This stipulates that goodwill must be subsequently measured
+at cost, less any cumulative adjustments from impairment losses.
+Purchased goodwill is therefore no longer amortised and instead
+is tested for impairment annually in accordance with IAS 36, re-
+gardless of whether any indication of possible impairment exists,
+as in the case of intangible assets with an indefinite useful life. In
+addition, the obligation remains to conduct an impairment test
+if there is any indication of impairment. Goodwill resulting from
+company acquisitions is allocated to the CGUS or groups of CGUS
+that are expected to benefit from the synergies of the acquisition.
+These groups represent the lowest reporting level at which the
+goodwill is monitored for internal management purposes. The
+carrying amount of a CGU to which goodwill has been allocated
+is tested for impairment annually and whenever there is an indi-
+cation that the unit may be impaired. Where impairment losses
+are recognised in connection with a CGU to which goodwill has
+been allocated, the existing carrying amount of the goodwill is
+reduced first. If the amount of the impairment loss exceeds the
+carrying amount of the goodwill, the difference is allocated to
+the remaining non-current assets in the CGU.
+93
+Deutsche Post DHL Group - 2021 Annual Report
+Derivatives and hedges
+In accordance with IAS 36, the recoverable amount is the
+asset's fair value less costs to sell or its value in use (present
+value of the pre-tax free cash flows expected to be derived from
+the asset in future), whichever is higher. The discount rate used
+for the value in use is a pre-tax rate of interest reflecting cur-
+rent market conditions. If the recoverable amount cannot be
+determined for an individual asset, the recoverable amount is
+determined for the smallest identifiable group of assets to which
+the asset in question can be allocated and which independently
+generates cash flows (cash generating unit - CGU). If the recover-
+able amount of an asset is lower than its carrying amount, an im-
+pairment loss is recognised immediately in respect of the asset.
+If it can be determined, the fair value or value in use of the indi-
+vidual assets represents their minimum carrying amount. If, after
+an impairment loss has been recognised, a higher recoverable
+amount is determined for the asset or the CGU at a later date,
+the impairment loss is reversed up to a carrying amount that
+does not exceed the recoverable amount. The increased carry-
+ing amount attributable to the reversal of the impairment loss is
+limited to the carrying amount that would have been determined
+(net of amortisation or depreciation) if no impairment loss had
+been recognised in the past. The reversal of the impairment loss
+is recognised in the income statement. Impairment losses recog-
+nised in respect of goodwill may not be reversed.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+⚫ contractual penalties for the termination of a lease if the
+lease term reflects the exercise of a termination option.
+94
+⚫lease liability;
+revenue was recognised - to the extent that it was attributable
+to the lease - and the right of use was not amortised. In the cash
+flow statement, net cash from operating activities decreased
+accordingly. There was an opposite effect in net cash used in
+investing activities.
+a loss allowance in an amount equal to the lifetime expected
+credit losses must be recognised for all instruments, regardless
+of their credit quality. The Group calculates the expected loss
+using impairment tables for the individual divisions. The loss
+estimate, documented by way of loss rates, encompasses all
+of the available information, including historical data, current
+economic conditions and reliable forecasts of future economic
+conditions (macroeconomic factors).
+Trade receivables and contract assets are generally short
+term in nature and contain no significant financing components.
+According to the simplified impairment approach in IFRS 9,
+All debt instruments measured at amortised cost are
+considered to be at low risk of default. The impairment loss
+recognised in the period was therefore limited to the 12-month
+expected credit loss. Management considers listed bonds to
+meet the criteria for a low risk of default when they have been
+assigned an investment-grade rating by at least one major rating
+agency. Other instruments qualify for the low-default-risk cat-
+egory if the risk of non-performance is low and the debtor is at
+all times in a position to meet contractual payment obligations
+at short notice.
+cant increase in counterparty credit risk since initial recognition
+are transferred from Stage 1 to Stage 2. A significant increase
+includes situations in which debtors are no longer able to meet
+their payment obligations at short notice or when it appears that
+the debtor has experienced an actual or expected deterioration
+in business performance. The credit risk can then be measured
+using the probability of default (PD) over the instrument's life-
+time (lifetime PD). The impairment loss is equivalent to the loss
+that may occur due to possible default events during the remain-
+ing term of the financial asset. Assets must be transferred from
+Stage 1 to Stage 2 when the contractual payments are more than
+30 days past due. If there is objective evidence that a financial
+asset is impaired, it must be transferred to Stage 3. In cases
+where payments are more than 90 days past due, there is rea-
+son to believe that the debtor is experiencing significant financial
+difficulties. This constitutes objective evidence of a credit loss.
+The financial asset must therefore be transferred to Stage 3.
+In accordance with the three-stage model, debt instru-
+ments measured at amortised cost are initially recognised in
+Stage 1. The expected loss is equal to the loss that may occur
+due to possible default events in the 12 months following the
+reporting date. Financial assets that have experienced a signifi-
+ECL is generally measured at the level of individual items;
+in exceptional cases, such as groups of receivables with the same
+credit risk characteristics, it is measured collectively at portfolio
+level. The Standard stipulates the three-stage general approach
+to determining credit loss for this process. This does not include
+trade receivables and contract assets.
+The Group distinguishes between two types of financial
+assets, both of which are subject to the ECL model: trade receiv-
+ables and contract assets, on the one hand, and debt instruments
+measured at amortised cost, on the other. Cash and cash equiv-
+alents are also subject to the IFRS 9 impairment rules. However,
+the impairment loss identified is not material.
+Expected credit loss (ECL) within the meaning of IFRS 9 is
+an estimate of credit loss over the expected lifetime of a financial
+instrument, weighted for the probability of default. A credit loss
+is the difference between the contractual cash flows to which
+the Group is entitled and the cash flows expected by the Group.
+The expected credit loss takes into account the amount and tim-
+ing of payments. Accordingly, a credit loss may also occur if the
+Group expects payment to be made in full, but later than the
+contractually agreed date.
+The Group makes a forward-looking assessment of the expected
+credit losses associated with its debt instruments (expected-
+credit-loss model).
+95
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Most of the equity instruments that the Group invests in for stra-
+tegic reasons are assigned to the FVOCI measurement category.
+They are measured at fair value. The effects of any change in the
+fair value of these equity instruments are recognised in other
+comprehensive income. On derecognition, these effects are not
+reclassified to the income statement. Dividends from such in-
+struments are reported in other income in the income statement.
+EQUITY INSTRUMENTS CLASSIFIED AS FVOCI
+Impairment
+Measurement
+Debt instruments assigned to the "hold to collect and sell❞ busi-
+ness model must be measured and recognised at fair value.
+Gains and losses from fair value measurement are recognised
+in other comprehensive income. Cumulative gains and losses
+are reclassified to the income statement when the financial asset
+is derecognised.
+DEBT INSTRUMENTS AT FAIR VALUE THROUGH OTHER
+COMPREHENSIVE INCOME (FVOCI)
+Debt instruments that are assigned to the “hold to collect con-
+tractual cash flows" business model and whose cash flows
+exclusively comprise interest and principal are measured and
+recognised at amortised cost. Interest income from these finan-
+cial assets is reported in financial income using the effective
+interest method.
+DEBT INSTRUMENTS AT AMORTISED COST
+Investments accounted for using the equity method
+Financial assets are classified in the measurement categories
+below. The classification of debt instruments depends on the
+business model used to manage the financial assets and their
+contractual cash flows.
+Classification
+The Group measures financial assets at fair value plus the trans-
+action costs directly attributable to the acquisition of these assets
+on initial recognition if they are not subsequently measured at
+fair value through profit or loss. The transaction costs of assets
+measured at fair value through profit or loss are recognised as
+expenses. For financial liabilities measured according to the fair
+value option, the part of the change in fair value resulting from
+changes in the Group's own credit risk is recognised in other
+comprehensive income rather than in the income statement.
+Investments accounted for using the equity method cover asso-
+ciates and joint ventures. These are recognised using the equity
+method in accordance with IAS 28, Investments in Associates
+and Joint Ventures. Based on the cost of acquisition at the time
+of purchase of the investments, the carrying amount of the in-
+vestment is increased or reduced annually to reflect the share of
+earnings, dividends distributed and other changes in the equity
+of the associates and joint ventures attributable to the invest-
+ments of Deutsche Post AG or its consolidated subsidiaries. An
+impairment loss is recognised on investments accounted for
+using the equity method, including the goodwill in the carrying
+amount of the investment, if the recoverable amount falls below
+the carrying amount. Gains and losses from the disposal of in-
+vestments accounted for using the equity method are recognised
+in other operating income or other operating expenses. Impair-
+ment losses and their reversal are recognised in net income/loss
+from investments accounted for using the equity method.
+and derivative financial assets. Financial liabilities include con-
+tractual obligations to deliver cash or another financial asset to
+another entity. These mainly comprise trade payables, liabilities
+to banks, liabilities arising from bonds and leases, and derivative
+financial liabilities.
+A financial instrument is any contract that gives rise to a financial
+asset of one entity and a financial liability or equity instrument of
+another entity. Financial assets include in particular cash and cash
+equivalents, trade receivables, originated loans and receivables,
+Financial instruments
+DEBT INSTRUMENTS, DERIVATIVES AND EQUITY INSTRUMENTS
+AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)
+Debt instruments, derivatives and equity instruments acquired
+to maximise their cash flows by selling them in the short to me-
+dium term are assigned to the “sell” business model. They are
+measured at fair value. The resulting measurement gains and
+losses are reported in the income statement.
+359
+108,896
+Employees³
+42,240
+99,365
+1,285
+209
+0
+-1
+51
+302
+42,348
+1,478
+159,288
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+29,819
+32,099
+158,889
+164,429
+12,607
+12,641
+-1
+0 502,207
+528,079
+1 Prior-year amounts adjusted, > note 4. 2 Including rounding. 3 Average FTEs.
+1 January to 31 December
+Information about geographical regions
+€m
+3,768
+167,666
+3,830
+31
+-1
+External revenue
+0
+0
+0
+1
+1
+108
+1
+Total depreciation, amortisation and
+impairment losses
+1,383
+1,511
+246
+245
+-1
+920
+169
+Other non-cash income (-) and expenses (+)
+527
+524
+90
+158
+234
+245
+60
+179
+5
+329
+334
+784
+744
+756
+Non-current assets
+Group Functions includes Corporate Center, Global Business
+Services (GBS) and Customer Solutions & Innovation (CSI). The
+profit/loss generated by GBS is allocated to the operating seg-
+ments, whilst its assets and liabilities remain with GBS (asym-
+metrical allocation).
+1 Prior-year amounts adjusted, > note 4.
+5,758
+37,193
+6,975
+10.1 Segment reporting disclosures
+Deutsche Post DHL Group reports five operating segments for
+the 2021 financial year; these are managed independently by the
+responsible segment management bodies in line with the prod-
+ucts and services offered and the brands, distribution channels
+and customer profiles involved. Components of the entity are
+defined as a segment on the basis of the existence of segment
+managers with bottom-line responsibility who report directly to
+Deutsche Post DHL Group's top management.
+External revenue is the revenue generated by the divi-
+sions from non-Group third parties. Internal revenue is revenue
+generated with other divisions. If comparable external market
+prices exist for services or products offered internally within the
+Group, these market prices or market-oriented prices are used
+as transfer prices (arm's-length principle). The transfer prices for
+services for which no external market exists are generally based
+on incremental costs.
+The expenses for services provided in the IT service centres
+are allocated to the divisions by their origin. The additional costs
+resulting from Deutsche Post AG's universal postal service obli-
+gation (nationwide retail outlet network, delivery every working
+day), and from its obligation to assume the remuneration struc-
+ture as the legal successor to Deutsche Bundespost, are allocated
+to the Post & Parcel Germany division.
+In keeping with internal reporting, capital expenditure
+(capex) is disclosed. Additions to intangible assets net of good-
+will and to property, plant and equipment, including right-of-use
+assets, are reported in the capex figure. Depreciation, amortisation
+and impairment losses relate to the segment assets allocated to
+the individual divisions. Other non-cash income and expenses
+relate primarily to expenses from the recognition of provisions.
+The profitability of the Group's operating divisions is meas-
+ured as profit from operating activities (EBIT).
+10.2 Segments by division
+Reflecting the Group's predominant organisational structure, the
+primary reporting format is based on the divisions. The Group
+distinguishes between the following divisions:
+Express
+The Express division offers time-definite courier and express ser-
+vices to business and private customers. The division comprises the
+Europe, Middle East and Africa, Americas and Asia Pacific regions.
+Global Forwarding, Freight
+The Global Forwarding, Freight division comprises international
+air, ocean and overland freight forwarding services. The divi-
+sion's business units are Global Forwarding and Freight.
+Supply Chain
+The Supply Chain division delivers customised supply chain solu-
+tions to its customers based on globally standardised modular
+components including warehousing, transport and value-added
+services. The division comprises the Europe, Middle East and
+Africa, Americas and Asia Pacific regions.
+33,817
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+104
+eCommerce Solutions
+The eCommerce Solutions division is home to the Group's inter-
+national parcel delivery business. The core business activities
+are domestic parcel delivery in selected countries in Europe, the
+United States and Asia and non-TDI cross-border services.
+Post & Parcel Germany
+The Post & Parcel Germany division transports, sorts and deliv-
+ers documents and goods in and outside of Germany. Its business
+units are called Post Germany, Parcel Germany and International.
+In addition to the reported segments shown above, segment
+reporting comprises the following categories:
+Group Functions
+5
+Consolidation
+The data for the divisions is presented following consolidation
+of interdivisional transactions. The transactions between the
+divisions are eliminated in the Consolidation column.
+10.3 Information about geographical regions
+The main geographical regions in which the Group is active
+are Germany, Europe (excluding Germany), the Americas, Asia
+Pacific and Middle East and Africa. External revenue, non-current
+assets and capex are disclosed for these regions. Revenue, assets
+and capex are allocated to the individual regions on the basis of
+the domicile of the reporting entity. Non-current assets com-
+prise intangible assets, property, plant and equipment and other
+non-current assets (excluding pension assets).
+10.4 Reconciliation of segment amounts to consolidated
+amounts
+The following table shows the reconciliation of Deutsche Post DHL
+Group's total assets to the segment assets. Financial asset com-
+ponents, income tax assets, deferred taxes, cash and cash equiv-
+alents and other asset components are deducted.
+Reconciliation to segment assets
+Deutsche Post DHL Group - 2021 Annual Report
+686
+191
+140
+606
+Deutsche Post DHL Group - 2021 Annual Report
+103
+Germany
+Europe¹
+(excluding Germany)
+Americas
+Asia Pacific
+Middle East/Africa
+Group¹
+2020
+19,814
+10,093
+1,707
+2021
+21,554
+11,043
+2020
+18,922
+10,526
+2021
+23,740
+11,308
+2020
+12,993
+7,782
+2,347
+1,409
+1,746
+1,887
+599
+5,213
+81,747
+66,716
+3,230
+2,727
+Capex
+15,736
+2020
+2021
+2020
+2021
+2020
+12,260
+4,817
+615
+2021
+17,487
+8,943
+2,085
+2021
+0
+385
+0
+3,505
+717
+876
+2,716
+2,631
+1,567
+1,718
+-62
+-53
+73
+15,370
+111
+18,922
+Net segment assets
+12,039
+2,912
+13,573
+6,524
+4,977
+4,881
+1,161
+1,336
+3,472
+4,271
+3,700
+3,927
+-18
+-19
+30,936 34,493
+Capex (assets acquired)
+1,428
+5,605
+1,707
+5,012
+-1
+2,212
+0
+6,188
+0
+-2
+33
+1
+6,902
+5,267
+5,645
+-80
+-34
+46,306
+32
+53,415
+of which investments accounted for using
+-1
+the equity method
+6
+Segment liabilities
+4,224
+5,233
+19
+3,296
+20
+14
+15
+0
+0
+0
+0
+17
+71
+24
+71
+104
+351
+423
+604
+897
+833
+1,205
+0
+0
+5,758
+6,975
+Depreciation and amortisation
+1,383
+1,511
+246
+245
+284
+849
+164
+179
+329
+334
+753
+744
+-2
+-2
+3,722
+3,767
+Impairment losses
+0
+0
+0
+756
+132
+1,150
+347
+483
+141
+245
+590
+883
+445
+0
+0
+2,999
+3,895
+Capex (right-of-use assets)
+974
+1,246
+207
+1,324
+215
+667
+143
+178
+14
+14
+448
+760
+0
+2,759
+3,080
+Total capex
+2,402
+2,953
+311
+973
+0
+-72
+Deferred tax income from temporary
+differences
+1,878
+Change due to
+remeasurements of net
+2021
+€m
+After
+taxes
+Income
+taxes
+Before
+taxes
+Other comprehensive income
+The following table presents the tax effects on the compo-
+nents of other comprehensive income:
+The effective income tax expense includes prior-period
+tax expenses from German and foreign companies in the
+amount of €13 million (tax expense) (previous year: expense
+of €16 million).
+In the 2021 financial year, the change in the UK tax rate
+gave rise to a deferred tax expense of €52 million. In other tax
+jurisdictions abroad, tax rate changes had no material effect;
+there was no effect whatsoever at domestic Group companies.
+A deferred tax asset in the amount of €34 million was rec-
+ognised in the balance sheet for companies that reported a loss
+in the previous year or in the current period as, based on tax
+planning, realisation of the tax asset is probable.
+Effects from deferred tax assets not recognised for tax
+loss carryforwards and temporary differences in the amount of
+€7 million (previous year: €8 million) relate to the reduction of
+the effective income tax expense due to the utilisation of tax loss
+carryforwards and temporary differences, for which deferred
+tax assets had previously not been recognised. In addition, the
+recognition of deferred tax assets previously not recognised for
+tax loss carryforwards and of deductible temporary differences
+from a prior period (and resulting mainly from the Americas
+region) reduced the deferred tax expense by €323 million (pre-
+vious year: €368 million). Effects from unrecognised deferred
+tax assets amounting to €4 million (previous year: €5 million)
+were due to a valuation allowance recognised for a deferred tax
+asset. Other effects from unrecognised deferred tax assets relate
+primarily to tax loss carryforwards for which no deferred taxes
+were recognised.
+temporary differences relate primarily to Deutsche Post AG
+and members of its consolidated tax group. Effects from de-
+ferred tax assets of foreign companies not recognised for tax
+loss carryforwards and temporary differences relate primarily
+to the Americas region.
+The effects from deferred tax assets of German Group
+companies not recognised for tax loss carryforwards and
+The difference from deferred tax assets not recognised for initial
+differences is due to differences between the carrying amounts
+in the opening tax accounts of Deutsche Post AG and the car-
+rying amounts in the IFRS financial statements as at 1 Janu-
+ary 1995 (initial differences). In accordance with IAS 12.15(b)
+and IAS 12.24(b), the Group did not recognise any deferred tax
+assets in respect of these temporary differences, which related
+mainly to property, plant and equipment as well as to pension
+provisions and similar obligations. The remaining temporary
+differences between the original IFRS carrying amounts, net
+of accumulated depreciation or amortisation, and the tax base
+amounted to €107 million as at 31 December 2021 (previous
+year: €109 million).
+2,005
+-194
+254
+-1,936
+-78
+29
+Other comprehensive income
+6
+0
+6
+income of investments
+accounted for using the equity
+method
+925
+0
+925
+15
+-1
+16
+Reserve for equity instruments
+without recycling
+Currency translation reserve
+Share of other comprehensive
+pension provisions
+Hedging reserves
+23
+-6
+1,927
+2,981
+-115
+101
+-995
+241
+-13
+109
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+4,896
+4,454
+Total
+411
+426
+Miscellaneous
+-619
+-676
+Net finance costs
+5
+8
+Expenses from derivatives
+Reconciliation
+Differences in tax rates at foreign companies
+Income taxes
+€m
+1
+-16
+Effect from previous years on current taxes
+Tax-exempt income and non-deductible
+expenses
+253
+carryforwards and temporary differences
+companies not recognised for tax loss
+Deferred tax assets of foreign Group
+19
+45
+Deferred tax assets of German Group
+companies not recognised for tax loss
+carryforwards and temporary differences
+Deferred tax assets not recognised for initial
+differences
+2021
+7,359
+-2,244
+-1,272
+Expected income taxes
+2020
+4,171
+Profit before income taxes
+9
+-85
+2,896
+Change due to
+remeasurements of net
+€m
+5,053
+2,979
+€m
+2021
+2020
+Diluted earnings per share
+Weighted average number of shares for diluted earnings
+Potentially dilutive shares
+Adjusted consolidated net profit for the period attributable to Deutsche Post AG shareholders
+Weighted average number of shares outstanding
+Less income taxes
+Plus interest expense on the convertible bond
+Consolidated net profit for the period attributable to Deutsche Post AG shareholders
+Diluted earnings per share
+4.10
+8
+2.41
+8
+1
+126
+A dividend per share of €1.80 is being proposed for the 2021
+financial year (previous year: €1.35 paid). Further details on the
+dividend distribution can be found in > note 35.
+21 Dividend per share
+Diluted earnings per share in the reporting period were
+€4.01 (previous year: €2.36).
+Deutsche Post AG shareholders was increased by the amounts
+spent for the convertible bond.
+To compute diluted earnings per share, the weighted average
+number of shares outstanding is adjusted for the number of
+all potentially dilutive shares. This item includes the execu-
+tives' rights to shares under the Performance Share Plan and
+Share Matching Scheme (as at 31 December 2021: 11,678,092
+shares; previous year: 10,649,742) and the maximum number
+of ordinary shares that can be issued on exercise of the con-
+version rights under the convertible bond issued in Decem-
+ber 2017. Consolidated net profit for the period attributable to
+4.01
+2.36
+1,262,096,999
+1,232,451,264
+29,645,735
+number 1,236,900,096
+number
+28,591,660
+number 1,265,491,756
+5,060
+2,986
+€m
+1
+€m
+€
+Basic earnings per share
+1,232,451,264
+Currency translation reserve
+Share of other comprehensive
+income of investments
+accounted for using the equity
+method
+2020
+-954
+0
+-954
+-5
+0
+-5
+-12
+6
+-18
+-1,007
+80
+-1,087
+pension provisions
+Hedging reserves
+Reserve for equity instruments
+without recycling
+Other comprehensive income
+-8
+1
+-7
+1,236,900,096
+number
+2021
+5,053
+2020
+2,979
+€m
+Consolidated net profit for the period attributable to Deutsche Post AG shareholders
+Weighted average number of shares outstanding
+Basic earnings per share
+income tax expense is as follows:
+shares relate to issued capital less any treasury shares held.
+Basic earnings per share for the 2021 financial year were €4.10
+(previous year: €2.41).
+20 Earnings per share
+110
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+-1,985
+87
+-2,072
+Basic earnings per share are computed in accordance with IAS 33,
+Earnings per share, by dividing consolidated net profit by the
+weighted average number of shares outstanding. Outstanding
+€m
+-64
+Foreign currency result
+413
+Total revenue
+19,135
+Profit/loss from operating activities (EBIT)
+of which net income/loss from investments
+accounted for using the equity method
+Segment assets
+2,751
+2021
+23,704
+513
+24,217
+4,220
+2020
+2021
+14,784 21,553
+1,029 1,280
+15,813 22,833
+592
+1,303
+2020
+12,457
+92
+12,549
+424
+2021
+13,760
+104
+13,864
+705
+2020
+4,692
+137
+4,829
+158
+2021
+5,792
+136
+5,928
+417
+2020
+15,983
+472
+16,455
+1,592
+2021
+16,895
+550
+17,445
+Internal revenue
+2020
+79
+18,722
+External revenue
+10 Segment reporting
+Segments by division
+€m
+Deutsche Post DHL Group - 2021 Annual Report
+102
+Global Forwarding,
+Express
+Freight¹
+Supply Chain¹
+eCommerce
+Solutions
+Post & Parcel
+Germany
+Group Functions
+Consolidation¹,2
+Group¹
+1 January to 31 December
+2020
+Segment reporting disclosures
+2021
+2020
+-1
+81,747
+7,978
+3
+-2
+16,263
+18,806
+-2
+8,901
+-1
+1
+2
+-35
+0
+11,536
+7,889
+8,386
+66,716
+4,847
+44
+-1
+-413
+2021
+-1
+2020
+66,716
+2021
+81,747
+1,531
+1,750
+1,610
+1,794
+-3,674
+-3,675
+-4,333
+0
+0
+-4,334
+1,747
+-669
+-1
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Intra-Group revenue, other operating income, and expenses
+as well as receivables, liabilities and provisions between com-
+panies that are consolidated or proportionately consolidated
+are eliminated. Intercompany profits or losses from intra-Group
+deliveries and services not realised by sale to third parties are
+eliminated. Unrealised gains and losses from business transac-
+tions with investments accounted for using the equity method
+are eliminated on a proportionate basis.
+In the case of step acquisitions, the equity portion pre-
+viously held is remeasured at the fair value applicable at the
+acquisition date, and the resulting gain or loss is recognised in
+the income statement.
+75
+63
+Legal costs
+-142
+-151
+Other interest expenses
+76
+66
+Commissions paid
+-1,936
+-995
+Income taxes
+79
+65
+-383
+Losses on changes in fair value of financial
+-394
+assets
+-107
+16
+19
+Expenses from prior-period billings
+The reconciliation to the effective income tax expense based on
+consolidated net profit before income taxes and the expected
+-746
+-838
+28
+27
+Donations
+-68
+-59
+Other finance costs
+33
+32
+Audit costs
+-145
+Interest expense on leases
+Contributions and fees
+-524
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+101
+could have a significant effect on the net assets, financial posi-
+tion and results of operations of the Group. Management regu-
+larly analyses the information currently available about these
+proceedings and recognises provisions for probable obligations
+including estimated legal costs. Internal and external legal ad-
+visors participate in making this assessment. In deciding on the
+necessity for a provision, management takes into account the
+probability of an unfavourable outcome and whether the amount
+of the obligation can be estimated with sufficient reliability. The
+fact that an action has been launched or a claim asserted against
+the Group, or that a legal dispute has been disclosed in the notes,
+does not necessarily mean that a provision is recognised for the
+associated risk.
+It is possible that climate change will give rise to uncertain-
+ties and risks for the net assets, financial position and results of
+operations of the Group. Increased restrictions imposed by law
+to combat climate change are expected in the coming years, in-
+cluding limits on air transport or access to city centres. In certain
+cases this may also affect our existing business models and our
+ability to operate optimally.
+All assumptions and estimates are based on the circum-
+stances prevailing and assessments made at the reporting date.
+For the purpose of estimating the future development of the
+business, a realistic assessment was also made at that date of the
+economic environment likely to apply in the future to the differ-
+ent sectors and regions in which the Group operates, > Combined
+management report, Expected developments, opportunities and risks. In
+the event of developments in these economic parameters that
+diverge from the assumptions made, the actual amounts may
+differ from the estimated amounts. In such cases, the assump-
+tions made and, where necessary, the carrying amounts of the
+relevant assets and liabilities are adjusted accordingly.
+At the date of preparation of the consolidated financial
+statements, there is no indication that any significant change in
+the assumptions and estimates made will be required, so that on
+the basis of the information currently available it is not expected
+that there will be significant adjustments in the 2022 financial
+year to the carrying amounts of the assets and liabilities recog-
+nised in the financial statements.
+9
+Consolidation methods
+The consolidated financial statements are based on the IFRS
+financial statements of Deutsche Post AG and the subsidiaries,
+joint operations and investments accounted for using the equity
+method included in the consolidated financial statements and
+prepared in accordance with uniform accounting policies as at
+31 December 2021.
+Acquisition accounting for subsidiaries included in the
+consolidated financial statements uses the purchase method of
+accounting. The cost of the acquisition corresponds to the fair
+value of the assets given up, the equity instruments issued and
+the liabilities assumed at the transaction date. Acquisition-related
+costs are recognised as expenses. Contingent consideration is
+recognised at fair value at the date of initial consolidation.
+The assets and liabilities, as well as income and expenses,
+of joint operations are included in the consolidated financial
+statements in proportion to the interest held in these operations,
+in accordance with IFRS 11. Accounting for the joint operators'
+share of the assets and liabilities, as well as recognition and
+measurement of goodwill, use the same methods as applied to
+the consolidation of subsidiaries.
+In accordance with IAS 28, joint ventures and companies on
+which the parent can exercise significant influence (associates)
+are accounted for in accordance with the equity method using
+the purchase method of accounting. Any goodwill is recognised
+under investments accounted for using the equity method.
+28
+13
+Monetary transaction costs
+82
+-137
+-46
+-89
+on provisions
+86
+102
+Losses on disposal of assets
+-58
+-537
+Deferred tax expense from tax loss
+carryforwards
+Interest expense from unwinding discounts
+89
+78
+Voluntary social benefits
+Finance costs
+107
+-165
+Total equity and liabilities
+96
+Investment property
+Deutsche Post DHL Group - 2021 Annual Report
+107
+The increase in materials expense resulted mainly from a rise in
+transport costs in the Global Forwarding, Freight division and
+higher aircraft fuel costs in the Express division.
+A total of €103 million (previous year: €106 million) of the
+other expenses included in the cost of raw materials, consum-
+ables and supplies, and of goods purchased and held for resale,
+relates to the production of electric vehicles.
+The other expenses item includes furthermore a large
+number of individual items.
+15 Staff costs/employees
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Social security contributions relate, in particular, to statu-
+tory social security contributions paid by employers.
+The average number of Group employees in the reporting
+period, broken down by employee group, was as follows:
+16 Depreciation, amortisation and impairment losses
+€m
+Amortisation of and impairment losses on
+intangible assets (excluding goodwill),
+of which impairment losses: 0 (previous year: 3)
+Depreciation of and impairment losses on
+property, plant and equipment acquired,
+of which impairment losses: 0
+(previous year: 19)
+Retirement benefit expenses include the service cost re-
+lated to the defined benefit retirement plans. These expenses
+also include contributions to defined contribution retirement
+plans for civil servants in Germany in the amount of €347 million
+(previous year: €376 million), as well as for the Group's hourly
+workers and salaried employees, totalling €410 million (previ-
+ous year: €352 million), >note 7. For information on the increase
+in retirement benefit expenses, see > note 37.
+2020
+1 Prior-year figures adjusted, > note 4.
+33,704
+Changes in inventories are largely attributable to real estate de-
+velopment projects. The increase in work performed and capi-
+talised is largely attributable to the production of StreetScooter
+electric vehicles for Group companies.
+Low-value asset leases
+Variable lease payments
+Commissions paid
+Other purchased services
+60
+74
+17
+43,897
+21
+637
+958
+1,403
+30,616
+40,103
+Materials expense
+608
+110
+2021
+201
+149
+147
+18,987
+Operating and office equipment
+104
+95
+IT equipment
+Social security contributions
+2,921
+2020
+2021
+1,531
+1,648
+Retirement benefit expenses
+2,705
+203
+Employees
+2020
+17,701
+Land and buildings
+224
+235
+Technical equipment and machinery
+381
+401
+2021
+Transport equipment
+311
+€m
+Aircraft
+384
+459
+Wages, salaries and compensation
+289
+944
+101
+2,291
+36
+30
+Income from the derecognition of liabilities
+25
+25
+€m
+Income from loss compensation
+Cost of purchased services
+2021
+Recoveries on receivables previously
+Transport costs¹
+24,173
+32,434
+written off
+2020
+18
+3,794
+250
+Packaging material
+345
+401
+Goods purchased and held for resale
+469
+302
+3,088
+Spare parts and repair materials
+150
+Office supplies
+101
+96
+Other expenses
+365
+132
+Leases (incidental expenses)
+18
+Reversals of impairment losses on
+46
+6
+Total
+292
+348
+Lease expenses
+Income from derivatives
+Miscellaneous
+490
+532
+Short-term leases
+490
+506
+2,095
+Total
+Changes in inventories -
+773
+IT services
+expense (-)/income (+)
+74
+66
+Cost of temporary staff and services
+Maintenance costs
+2,106
+2,559
+633
+1,470
+receivables and other assets
+3
+16
+Work performed and capitalised
+218
+282
+1,586
+1,031
+Headcount (annual average)
+Depreciation of and impairment losses on
+211
+225
+Write-downs and remeasurements
+189
+218
+€m
+Telecommunication costs
+19 Income taxes
+186
+204
+2020
+2021
+Customs clearance-related charges
+165
+Insurance costs
+196
+Information on interest expenses from unwinding dis-
+counted net pension provisions can be found in > note 37. Posi-
+tive effects on the interest expense resulted from changes in the
+discount rate for other non-current provisions.
+The expense from the unwinding of discounts on bonds
+resulting from the application of the effective interest method
+amounted to €12 million (previous year: €13 million).
+308
+321
+Office supplies
+208
+247
+Travel and training costs
+Interest income and interest expenses result from financial
+assets and liabilities that were not measured at fair value through
+profit or loss.
+225
+18 Net finance costs
+The increase in the cost of purchased cleaning and security
+services resulted from the stepped-up safety measures due to
+the COVID-19 pandemic.
+Expenses for advertising and public relations rose for rea-
+sons including the global brand campaign.
+Taxes other than income taxes are either recognised in the
+related expense item or, if no specific allocation is possible, in
+other operating expenses.
+Miscellaneous other operating expenses include a large
+number of smaller individual items.
+Of interest income, €16 million relates to income from finance
+lease receivables.
+244
+Currency translation expenses
+€m
+Services provided by Bundesanstalt für Post
+47
+Consulting costs (including tax advice)
+103
+139
+Other financial income
+19
+12
+10
+-1,412
+Entertainment and corporate hospitality
+220
+191
+expenses
+102
+-858
+Financial income
+Current recoverable income tax
+127
+Interest income
+14
+74
+101
+2020
+und Telekommunikation (German federal
+80
+Gains on changes in fair value of financial
+-870
+2021
+-1,459
+post and telecommunications agency)
+162
+166
+assets
+Current income tax expense
+322
+306
+Other business taxes
+574,047
+Technical equipment and machinery
+45
+43
+Full-time equivalents¹
+Average for the year
+547,128
+Staff costs relate mainly to wages, salaries and compensation,
+as well as all other benefits paid to employees of the Group for
+their services in the financial year. The rise was due largely to
+salary increases and new hires. As in the previous year, further
+expenses were also incurred for the early retirement programme
+in the amount of €40 million (previous year: €108 million).
+As at 31 December
+1 Including trainees.
+The employees of companies acquired or disposed of during the
+financial year were included rateably. The number of full-time
+equivalents at joint operations included in the consolidated finan-
+cial statements as at 31 December 2021 amounted to 527 on a
+proportionate basis (previous year: 422).
+The impairment losses for the financial year are spread amongst
+different asset classes and each amounts to less than €1 million
+after rounding. The impairment losses for the prior year in the
+amount of €108 million can be found in the segment reporting.
+These related chiefly to negative impacts stemming from lock-
+down measures resulting from the pandemic and to property,
+plant and equipment as well as rights of use acquired. Goodwill im-
+pairment is attributable to the realignment of StreetScooter GmbH.
+Transport equipment
+229
+Wages, salaries and compensation include a special bonus
+of €300 paid to each employee in recognition of their service
+during the past several months, as in the previous year, and
+led to an additional expense of €165 million (previous year:
+€163 million).
+223
+Total
+1,494
+Expenses for other employee benefits
+Staff costs
+884
+940
+22,234
+23,879
+Hourly workers and salaried employees
+Civil servants
+1,347
+Trainees
+547,889
+21,203
+right-of-use assets,
+of which impairment losses: 0
+(previous year: 73)
+2020
+55,307
+Land and buildings
+518,277
+23,611
+5,240
+526,896
+502,207
+548,042
+528,079
+Aircraft
+17 Other operating expenses
+€m
+2020
+2021
+Cost of purchased cleaning and security
+services
+475
+108
+568
+compensation payments
+515
+482
+Expenses for advertising and public relations
+331
+433
+Warranty expenses, refunds and
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+3,768
+310
+296
+IT equipment
+1
+1
+Investment property
+4
+9
+2,083
+1,919
+Impairment of goodwill
+13
+0
+Depreciation, amortisation and
+impairment losses
+3,830
+762
+664
+4,955
+1,833
+-1
+2021
+-1
+2020
+66,716
+2021
+Global Forwarding, Freight
+14,784
+44
+21,553
+Global Forwarding¹
+11,368
+17,795
+Internal revenue
+2,143
+2,583
+81,747
+1,531
+2020
+2020
+79
+Total for
+reported segments¹
+Group Functions
+€m
+Reconciliation to
+Group/Consolidation ¹,2
+Consolidated amount¹
+2021
+2020
+Express
+18,722
+23,704
+External revenue
+2020
+66,638
+2021
+81,704
+2021
+€m
+1,750
+-4,333
+-1,552
+66,716
+2,095
+81,747
+Supply Chain¹
+12,457
+13,760
+-1,525
+2,291
+4,692
+5,792
+Changes in inventories and work
+Post & Parcel Germany
+15,983
+16,895
+eCommerce Solutions
+-3,674
+1,607
+2,236
+0
+0
+Freight
+3,416
+3,758
+Total revenue
+1,637
+68,781
+1,610
+1,794
+-3,675
+-4,334
+Other operating income
+1,983
+84,287
+performed and capitalised
+Revenue by business unit
+Income statement disclosures
+Current financial assets
+-1,299
+-2,989
+Cash and cash equivalents
+-4,482
+-3,531
+-9
+Segment assets
+53,415
+of which Group Functions
+5,267
+5,645
+total for reported segments
+41,119
+46,306
+47,842
+-10
+-230
+-12
+Fuel
+2021
+63,592
+-48
+Non-current financial assets
+-579
+-1,006
+Receivables and other current assets
+Other non-current assets
+-421
+Deferred tax assets
+-2,390
+-1,943
+Income tax assets
+-209
+-20
+11
+Consolidation¹
+-72
+1,567
+1,718
+total for reported segments
+13,865
+17,257
+Consolidation
+18,922
+-62
+of which Group Functions
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+The following table shows the reconciliation of the segment
+amounts to the income statement:
+Reconciliation to the income statement
+-53
+-80
+15,370
+-3,622
+1 Including rounding.
+The following table shows the reconciliation of Deutsche Post DHL
+Group's total liabilities to the segment liabilities. Components of
+the provisions and liabilities as well as income tax liabilities and
+deferred taxes are deducted.
+Reconciliation to segment liabilities
+€m
+Total equity and liabilities
+Equity
+2020
+55,307
+-3,658
+-14,078
+Consolidated liabilities
+41,229
+44,093
+Non-current provisions and liabilities
+Current provisions and liabilities
+Segment liabilities
+-22,237
+-21,513
+2021
+63,592
+-19,499
+248
+105
+43
+The allocation of revenue to geographical regions is pre-
+sented in the segment reporting.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+106
+12 Other operating income
+€m
+The change in revenue of €15,031 million is attributable
+exclusively to organic growth driven by volume and price effects
+and includes negative currency effects of €301 million; for de-
+tailed information, see > Combined management report.
+2020
+Income from currency translation
+294
+336
+Insurance income
+268
+301
+2021
+Income from the reversal of provisions
+The total amount includes revenue from performance obliga-
+tions in the amount of €45 million (previous year: €12 million)
+settled in prior periods.
+197
+1 Prior-year amounts adjusted.
+2 Including rounding.
+5,517
+8,392
+-669
+-413
+5,053
+370
+-1
+4,847
+-676
+4,171
+-995
+3,176
+7,978
+-619
+7,359
+-1,936
+5,423
+2,979
+-1
+Non-controlling interests
+191
+160
+€m
+2020
+2021
+Sublease income
+65
+74
+14 Materials expense
+capitalised
+53
+61
+Cost of raw materials, consumables and
+supplies, and of goods purchased and held
+for resale
+214
+Aircraft fuel
+1,012
+Income from prior-period billings
+274
+13 Changes in inventories and work performed and
+In the previous year, greater use was made of government
+subsidies for labour costs in the course of lockdown measures
+in the United Kingdom.
+195
+Operating lease income
+110
+130
+Income from fees and reimbursements
+110
+Miscellaneous other operating income includes a large
+number of smaller individual items.
+112
+177
+Income from the disposal of assets
+49
+85
+The increase in income from the reversal of provisions relates,
+among other things, to the early retirement programme, and
+insurance-related items.
+Income from operating leases was attributable mainly to
+leasing of the aircraft fleet's cargo space.
+Subsidies
+Deutsche Post AG shareholders
+Income from the remeasurement of liabilities
+Consolidated net profit for the period
+4,383
+11
+-33,704
+-22,234
+-43,897
+-23,879
+Parcel Germany
+5,885
+3,788
+6,756
+1,944
+2,036
+Depreciation, amortisation and
+Other
+168
+151
+International
+impairment losses
+-1,325
+-1,112
+-22,778
+1
+134
+0
+of which attributable to
+292
+348
+-1,195
+-1,068
+Post Germany
+7,952
+Materials expense
+-36,297
+-46,955
+Staff costs
+-21,175
+7,986
+-3,047
+9
+-784
+Net income/loss from investments
+accounted for using the equity method
+-33
+-1
+-2
+Income taxes
+1
+0
+-34
+32
+1 Prior-period amounts adjusted,
+note 4.
+-3,025
+Profit/loss from operating activities
+(EBIT)
+Net finance costs
+Profit before income taxes
+81,747
+66,716
+33
+-4,943
+1
+1
+43
+Other operating expenses
+-5,586
+-910
+-800
+-744
+1,490
+-3,830
+-4,454
+-3,768
+-4,896
+Group Functions/Consolidation
+Total revenue
+78
+1,399
+0
+Reclassifications
+-2
+0
+0
+2
+0
+Impairment losses
+0
+0
+13
+2
+0
+1
+200
+16
+1
+-1
+Disposals
+-87
+0
+0
+Balance as at 31 December 2020/1 January 2021
+-33
+-27
+-23
+1
+-3
+-210
+0
+0
+-108
+0
+0
+-102
+Currency translation differences
+129
+-139
+0
+392
+33
+2
+30
+4
+Currency translation differences
+-232
+1
+-6
+0
+0
+-73
+Disposals
+37
+1,098
+-110
+-14
+4
+462
+1,313
+67
+Depreciation, amortisation and impairment losses
+3,916
+0
+1,062
+1,253
+23
+Balance as at 31 December 2021
+445
+Depreciation, amortisation and impairment losses
+Balance as at 1 January 2020
+16,016
+162
+12,418
+1,600
+43
+480
+1,133
+422
+Express
+1,247
+11,658
+124
+10,998
+318
+15
+28
+175
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Carrying amount as at 31 December 2020
+161
+11,353
+312
+12
+30
+208
+Carrying amount as at 31 December 2021
+12,076
+3,940
+Deutsche Post DHL Group - 2021 Annual Report
+Goodwill impairment in the previous year related exclusively to
+StreetScooter GmbH, > note 16.
+0
+Supply Chain
+4,072
+279
+278
+Freight
+3,858
+Global Forwarding
+112
+Global Forwarding, Freight
+3,895
+2020
+31 Dec.
+€m
+For the purposes of annual impairment testing in accordance
+with IAS 36, the Group determines the recoverable amount of a
+CGU on the basis of its value in use. This calculation is based on
+projections of free cash flows that are initially discounted at a rate
+corresponding to the post-tax cost of capital. Pre-tax discount
+rates are determined iteratively.
+22.2 Allocation of goodwill to CGUS
+Purchased software, concessions, industrial rights, licences
+and similar rights and assets are reported under purchased in-
+tangible assets. Internally generated intangible assets relate to
+development costs for internally developed software.
+31 Dec.
+2021
+3,910
+26
+1
+1,288
+0
+0
+1
+0
+0
+-1
+201
+0
+0
+3
+0
+65
+Depreciation, amortisation and impairment losses
+Reclassifications
+3,836
+1
+1,042
+133
+1,065
+Disposals
+0
+31
+450
+1,105
+Balance as at 31 December 2021
+95
+0
+36
+-59
+27
+28
+2
+Currency translation differences
+-192
+-13
+-120
+0
+2
+81
+2
+0
+4
+291
+622
+-5
+40
+attributable to non-controlling interests
+146
+-7
+311
+10
+Dividend distributed to non-controlling interests
+119
+162
+0
+1
+Consolidated net profit attributable to non-controlling interests
+-1
+153
+58
+36
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Profit after income taxes
+Other comprehensive income
+Total comprehensive income
+2,720
+355
+482
+408
+753
+-14
+3
+103
+189
+1
+13
+305
+564
+2
+49
+Deutsche Post DHL Group - 2021 Annual Report
+282
+9
+Cash and cash equivalents at 1 January
+262
+370
+8
+9
+Effect of changes in exchange rates on cash and cash equivalents
+-14
+4
+57
+2
+Cash and cash equivalents as at 31 December
+370
+711
+9
+15
+1,887
+-1
+0
+284
+Net change in cash and cash equivalents
+Cash flow statement
+Net cash from operating activities
+390
+610
+17
+84
+Net cash used in/from investing activities
+122
+-14
+-10
+-46
+Net cash used in financing activities
+-254
+-343
+-5
+-34
+17
+111
+Balance sheet disclosures
+22 Intangible assets
+-358
+-36
+-4
+-26
+-4
+-248
+-12
+0
+0
+0
+0
+-111
+33
+-101
+0
+76
+-125
+0
+-428
+1,273
+66
+Reclassifications
+255
+152
+0
+60
+0
+Balance as at 31 December 2020/1 January 2021
+0
+Additions
+15,494
+125
+12,040
+1,565
+41
+450
+43
+0
+58
+233
+Reclassifications
+Additions
+Additions from business combinations
+Balance as at 1 January 2020
+Cost
+Total
+Advance payments and
+intangible assets under
+development
+Disposals
+Goodwill
+lists
+names
+Purchased customer
+Purchased brand
+Internally generated
+intangible assets
+€m
+22.1 Overview
+Other purchased
+intangible assets
+Currency translation differences
+1,291
+476
+132
+0
+62
+0
+0
+39
+1
+0
+1
+0
+0
+0
+15,903
+106
+12,398
+1,587
+45
+0
+1,977
+2,179
+1,593
+Depreciation, amortisation and impairment
+losses
+16
+13
+Balance as at 1 January
+Depreciation, amortisation and impairment
+losses
+71
+28
+1
+-3
+-1
+-1
+39
+-6
+4
+4
+28
+38
+2021
+2020
+Currency translation differences
+Balance as at 31 December
+Disposals
+Reclassifications
+Balance as at 1 January
+Additions
+Cost
+€m
+The investment property largely comprises leased property en-
+cumbered by heritable building rights and developed and un-
+developed land.
+Investment property
+24
+0
+Advance payments relate only to advance payments on
+items of property, plant and equipment for which the Group has
+paid advances in connection with incomplete transactions. They
+relate in particular to the renewal of the Express air fleet. Ad-
+vances for this purpose amounted to €412 million in the financial
+year (previous year: €587 million). Assets under development
+relate to items of property, plant and equipment in progress at
+the reporting date for whose production internal or third-party
+costs have already been incurred.
+9
+-1
+2021
+2020
+2021
+2020
+Total
+Joint ventures
+The previous year was marked by impairment losses on
+France-based Relais Colis SAS in the amount of €30 million due
+to lockdown measures. As part of a public flotation of Global-E
+Online, Israel, in May 2021, a capital measure was carried out at
+the company which led to the dilution of shares held. The dilu-
+tion and the resulting remeasurement of the shares generated
+income of €39 million.
+25 Investments accounted for using the equity method
+The following table is an overview of the carrying amount in the
+consolidated financial statements and selected financial data for
+those companies which, both individually and in the aggregate,
+are not of material significance for the Group.
+114
+Deutsche Post DHL Group - 2021 Annual Report
+Associates
+€m
+41
+Disposals
+7
+48
+12
+Carrying amount as at 31 December
+23
+16
+Balance as at 31 December
+0
+-1
+Currency translation differences
+-1
+1
+Reclassifications
+-1
+of which right-of-use assets
+2020
+In the prior year, disposals related primarily to disposals
+of right-of-use assets as a result of amended lease terms and
+terminations. In the 2021 financial year, a portion of disposals
+was attributable to the reclassification of subleases embedded
+in customer contracts to financial assets, > note 7.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Currency translation differences
+-1,715
+0
+-306
+-156
+-325
+-171
+-757
+Disposals
+-10
+0
+0
+0
+Balance as at 31 December 2021
+0
+-10
+Reversals of impairment losses
+4
+-2
+12
+0
+8
+-15
+1
+Reclassifications
+0
+0
+0
+0
+Disclosures on right-of-use assets are contained in > note 41.
+142
+45
+22,007
+1,601
+2,115
+4,105
+650
+2,760
+10,776
+24,903
+2,070
+2,388
+5,191
+659
+3,116
+72
+11,479
+Carrying amount as at 31 December 2020
+Carrying amount as at 31 December 2021
+18,033
+0
+2,236
+2,952
+1,816
+4,175
+6,854
+392
+0
+35
+98
+1 Change in the method of consolidation. 2 Proportionate change from joint operations.
+0
+2021
+Additions
+2021
+2020
+Total
+€m
+Current
+Non-current
+€m
+27 Other assets
+115
+Deutsche Post DHL Group - 2021 Annual Report
+26 Financial assets
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+-4
+Prepaid expenses
+-12
+6
+-8
+0
+-10
+-4
+1
+HOH
+0
+-1
+1
+165
+-5
+-7
+1
+-11
+937
+2021
+Contract assets
+208
+111
+Income from cost absorption
+46
+29
+0
+0
+46
+29
+comprehensive income
+Assets at fair value through other
+421
+2020
+Pension assets, non-current only
+547
+1,257
+81
+834
+466
+Assets measured at cost
+632
+551
+Tax receivables
+2021
+2020
+2021
+2020
+2,091
+Balance as at 1 January
+-5
+-12
+Changes recognised in profit or loss
+Changes in Group's share of equity
+-3
+-30
+0
+0
+-3
+-30
+Impairment losses
+0
+-19
+0
+0
+-5
+0
+Disposals
+2
+13
+0
+0
+2
+13
+73
+123
+15
+15
+58
+108
+-19
+572
+34
+1
+Total comprehensive income
+Other comprehensive income
+Profit after income taxes
+Aggregate financial data
+111
+73
+6
+-8
+06
+16
+15
+95
+58
+1
+-1
+-7
+Balance as at 31 December
+comprehensive income
+Changes recognised in other
+-2
+-2
+0
+0
+-2
+-2
+Profit distributions
+35
+-4
+6
+182
+0
+0
+1,583
+-1,647
+35
+925
+114
+336
+203
+672
+714
+136
+249
+2,171
+122
+11
+5,525
+1
+35,294
+1,759
+3,793
+5,312
+2,529
+2
+9
+16
+6,385
+15,516
+Currency translation differences
+Disposals
+Reclassifications
+Additions
+83
+Additions from business combinations¹
+-34
+-217
+40
+0
+5
+35
+0
+0
+0
+Additions from business combinations²
+37,798
+1,603
+4,071
+6,352
+2,495
+-731
+6,605
+Balance as at 31 December 2020/1 January 2021
+-1,215
+-73
+-89
+-299
+-94
+-157
+-503
+-1,894
+-30
+-341
+-383
+-192
+16,672
+Additions
+Balance as at 1 January 2020
+Total
+2.0
+7.2
+6.7
+2.5
+2.5
+7.0
+6.5
+Forwarding
+Freight
+Freight
+Global
+2021
+2.0
+2020
+2.0
+2021
+6.0
+2020
+5.8
+2.0
+Express
+Global
+Forwarding,
+Discount rates
+%
+The pre-tax cost of capital is based on the weighted aver-
+age cost of capital. The (pre-tax) discount rates for the material
+CGUS and the growth rates assumed in each case for the perpet-
+ual annuity are shown in the following table:
+The cash flow projections are based on the detailed planning
+for EBIT, depreciation and amortisation/investment planning
+adopted by management, as well as changes in net working cap-
+ital, and take both internal historical data and external macroeco-
+nomic data into account. From a methodological perspective, the
+detailed planning phase covers a three-year planning horizon
+from 2022 to 2024. Planning is supplemented by a perpetual
+annuity representing the value added from 2025 onwards. This
+is calculated using a long-term growth rate, which is determined
+for each CGU separately and is shown in the table below. The
+growth rates applied are based on long-term real growth figures
+for the relevant economies, growth expectations for the rele-
+vant sectors and long-term inflation forecasts for the countries
+in which the CGUs operate. The cash flow forecasts are based
+both on past experience and on the effects of the anticipated
+future general market trend. In addition, the forecasts take into
+account growth in the respective geographical sub-markets
+and in global trade, and the ongoing trend towards outsourcing
+logistics activities. Cost trend forecasts for the transport network
+and services also have an impact on value in use. A key planning
+assumption for the impairment test is the EBIT margin for the
+perpetual annuity.
+11,353
+10,998
+Total goodwill
+956
+920
+Post & Parcel Germany
+159
+160
+eCommerce Solutions
+Growth rates
+Cost
+Supply Chain
+7.0
+and assets under
+development
+Transport equipment
+Aircraft
+IT systems, operating
+and office equipment
+Technical equipment
+and machinery
+Land and buildings
+Advance payments
+€m
+113
+Deutsche Post DHL Group - 2021 Annual Report
+including right-of-use assets
+Overview of property, plant and equipment,
+23 Property, plant and equipment
+6.5
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+On the basis of these assumptions and the impairment tests
+carried out for the individual CGUs to which goodwill was allo-
+cated, it was established that the recoverable amounts for all
+CGUS exceed their carrying amounts. No impairment losses
+were recognised on goodwill in any of the CGUS as at 31 Decem-
+ber 2021.
+0.5
+0.5
+6.9
+6.1
+1.5
+1.5
+7.2
+6.6
+Solutions
+Post & Parcel
+Germany
+eCommerce
+2.5
+2.5
+When performing the impairment test, Deutsche Post DHL
+Group conducted sensitivity analyses for the significant CGUs
+in accordance with IAS 36.134 for the EBIT margin, the discount
+rate and the growth rate. These analyses - which included var-
+ying the essential valuation parameters within an appropriate
+range - did not reveal any risk of impairment to goodwill.
+0
+2,428
+125
+Currency translation differences
+-1,402
+0
+-273
+-328
+-180
+-155
+-466
+Disposals
+-2
+0
+0
+0
+-188
+0
+-2
+Reversals of impairment losses
+-2
+2
+-4
+0
+-2
+1
+1
+Reclassifications
+92
+0
+17
+0
+0
+-85
+-89
+Impairment losses
+3,558
+0
+534
+755
+243
+444
+1,582
+Depreciation, amortisation and impairment losses
+13
+0
+5
+8
+-64
+0
+0
+Additions from business combinations²
+15,791
+2
+1,956
+2,247
+1,845
+3,845
+5,896
+Balance as at 31 December 2020/1 January 2021
+-468
+0
+-42
+0
+240
+2
+66
+7,291
+18,333
+Balance as at 31 December 2021
+343
+61
+124
+330
+Currency translation differences
+-2,559
+-27
+-355
+-187
+-335
+2,475
+-198
+-34
+-2,025
+101
+881
+129
+520
+360
+Disposals
+Reclassifications
+6,720
+2,470
+738
+719
+-1,457
+7
+8,143
+49
+Impairment losses
+3,518
+0
+502
+694
+252
+418
+1,652
+Depreciation, amortisation and impairment losses
+64
+0
+1
+43
+64
+4,624
+1
+12
+Additions from business combinations¹
+13,991
+0
+1,755
+1,927
+1,836
+3,652
+4,821
+Balance as at 1 January 2020
+Depreciation, amortisation and impairment losses
+971
+42,936
+2,070
+7
+113
+20
+251
+-506
+-372
+Less operating financial liabilities¹
+19,897
+19,098
+Financial liabilities
+-3
+0
+Total for Performance Share Plan
+2021
+2020
+-28
+-26
+Employee Share Plan
+Utilisation of obligation
+25
+26
+Addition to obligation
+Performance Share Plan
+5
+10
+Total for Share Matching Scheme
+-99
+-77
+Utilisation of obligation
+104
+87
+2021
+3,519
+€m
+2020
+3,482
+Less cash and cash equivalents
+-3,531
+14,078
+Plus total equity
+3,533
+3,519
+Balance as at 31 December
+9
+3
+prices of treasury shares
+12,772
+12,928
+Net debt
+Differences between purchase and issue
+0
+-4,482
+-1
+0
+24
+Issue of treasury shares
+Less non-current derivative financial
+3
+0
+Total for Employee Share Plan
+-3,088
+-1,315
+Less current financial assets
+3
+0
+Addition to obligation
+instruments
+19,499
+Share Matching Scheme
+Addition to obligation
+€m
+The Articles of Association may be viewed on the company's
+website or in the electronic company register. They may also be
+viewed in the commercial register of the Bonn Local Court.
+33.2 Authorised and contingent capital
+118
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+The issued capital amounts to €1,239 million. It is composed of
+1,239,059,409 no-par-value registered shares (ordinary shares)
+with a notional interest in the share capital of €1 per share and
+is fully paid up.
+33.1 Changes in issued capital
+33 Issued capital and purchase of treasury shares
+As at 31 December 2021, KfW Bankengruppe (KfW) held a
+20.49% interest, unchanged from the previous year, in the share
+capital of Deutsche Post AG. Free float accounts for 78.28% of
+the shares and the remaining 1.23% of shares are owned by
+Deutsche Post AG. KfW holds the shares in trust for the Federal
+Republic of Germany.
+The fuel business of DHL Supply Chain Limited, United
+Kingdom, was sold in the first half of 2021. The disposal gain of
+€4 million is recognised under other operating income.
+The sale of the property in Steinfurt was completed in Oc-
+tober 2021. The disposal gain of €5 million is recognised under
+other operating income.
+a provider of route-planning solutions. With the sale, the Group
+is continuing the adjustment of its portfolio in favour of its core
+business. The most recent remeasurement prior to reclassifica-
+tion to assets held for sale and liabilities associated with assets
+held for sale did not result in any impairment loss. The sale was
+completed on 3 January 2022.
+Deutsche Post DHL Group intends to sell Greenplan GmbH,
+On 3 January 2022, Deutsche Post DHL Group sold the produc-
+tion rights and the complete ownership of the intangible assets
+for the production of StreetScooter electric vans as well as all
+shares in StreetScooter Japan K.K. and StreetScooter Schweiz
+to ODIN Automotive S.à.r.L., Luxembourg, > note 51. As at 31 De-
+cember 2021, the corresponding assets and liabilities were
+disclosed under assets and liabilities held for sale. The assets
+comprise primarily intangible assets, rights of use and cash and
+cash equivalents. The liabilities comprise primarily lease liabilities.
+Authorised and contingent capital as at 31 December 2021
+5
+Assets at fair value through profit or loss
+Financial assets
+16
+Assets held for sale and liabilities associated with assets held for sale
+1,224
+1,239
+Total as at 31 December
+0
+0
+1
+0
+-15
+0
+Balance as at 31 December
+7
+Balance as at 1 January
+Authorised Capital 2021
+(Annual General Meeting
+on 6 May 2021)
+Contingent Capital 2017
+(Annual General Meeting
+on 28 April 2017)
+Contingent Capital 2018/1
+(Annual General Meeting
+on 24 April 2018)
+Contingent Capital 2020/1
+(Annual General Meeting
+on 27 August 2020)
+Contingent Capital 2020/2
+(Annual General Meeting
+on 27 August 2020)
+Authorised Capital 2021
+34.1 Capital reserves
+34 Reserves
+Corporate capital
+In the 2021 financial year, the equity ratio was 30.7% (previous
+year: 25.5%). The company's capital is monitored using the net
+gearing ratio, which is defined as net debt divided by the total of
+equity and net debt.
+33.4 Disclosures on corporate capital
+As at 31 December 2021, Deutsche Post AG held 15,247,431
+treasury shares (previous year: 0 treasury shares).
+A total of 2.5 million treasury shares were issued to the
+executives concerned to settle the 2020 PSP tranche.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+In the 2021 financial year, treasury shares were also
+acquired and issued to executives to settle the 2020 tranche
+and claims to matching shares under the 2016 tranche. The
+2.6 million shares were acquired at an average price per share
+of €44.96 for a total of €118 million.
+At the end of the share buy-back programme, > note 3, in Oc-
+tober 2021, 17.7 million shares had been purchased for a total
+amount of €1 billion, at an average price of €56.53 per share.
+Share buy-back programme
+By way of a resolution adopted by the Annual General Meeting
+on 6 May 2021, the company is authorised to acquire treasury
+shares in the period to 5 May 2026 of up to 10% of the share
+capital existing when the resolution was adopted. The authori-
+sation permits the Board of Management to exercise it for every
+purpose permitted by law, and in particular to pursue the goals
+mentioned in the resolution by the Annual General Meeting. In
+addition, the Board of Management is authorised to acquire
+treasury shares totalling up to 5% of the share capital existing
+when the resolution was adopted by means including using
+derivatives.
+33.3 Authorisation to acquire treasury shares
+Amount Purpose
+€m
+The contingent capital increase serves to issue bonds with war-
+rants, convertible bonds and/or income bonds as well as profit
+participation certificates, or a combination thereof, in an aggre-
+gate principal amount of up to €1.5 billion, and to grant options or
+conversion rights for up to 40 million shares with a proportionate
+interest in the share capital not to exceed €40 million. The new
+shares participate in profit from the beginning of the financial
+year in which they are issued. The share capital was increased on
+a contingent basis by up to €40 million. Contingent capital was
+not utilised in the 2021 financial year.
+The contingent capital increase serves to grant Performance
+Share Units (PSUs) to selected Group executives. The share
+capital was increased on a contingent basis by up to €12 million
+through the issue of up to 12 million no-par-value registered
+shares. The new shares participate in profit from the beginning
+of the financial year in which they are issued. Contingent capital
+was not utilised in the 2021 financial year.
+Contingent Capital 2020/1
+The contingent capital increase serves to grant Performance
+Share Units (PSUs) to selected Group executives. The new shares
+participate in profit from the beginning of the financial year in
+which they are issued. The share capital was increased on a
+contingent basis by up to €12 million through the issue of up
+to 12 million no-par-value registered shares. Contingent capital
+was not utilised in the 2021 financial year.
+Contingent Capital 2018/1
+The contingent capital increase serves to issue bonds with war-
+rants, convertible bonds and/or income bonds as well as profit
+participation certificates, or a combination thereof, in an aggre-
+gate principal amount of up to €1.5 billion, and to grant options or
+conversion rights for up to 75 million shares with a proportionate
+interest in the share capital not to exceed €75 million. The new
+shares participate in profit from the beginning of the financial year
+in which they are issued. The authorisation was exercised in part
+in December 2017 by issuing the convertible bond 2017/2025 in
+an aggregate principal amount of €1 billion. The share capital was
+increased on a contingent basis by up to €75 million. Contingent
+capital was not utilised in the 2021 financial year.
+Contingent Capital 2017
+The Board of Management is authorised, subject to the consent
+of the Supervisory Board, to issue up to 130 million new, no-par-
+value registered shares until 5 May 2026 in exchange for cash
+and/or non-cash contributions and thereby increase the com-
+pany's share capital by up to €130 million. The authorisation may
+be used in full or for partial amounts. Shareholders generally
+have pre-emptive rights. However, subject to the approval of
+the Supervisory Board, the Board of Management may disapply
+the shareholders' pre-emptive rights to the shares covered by
+the authorisation. No use was made of the authorisation in the
+financial year under review.
+(authorisation until 26 August 2023)
+40 Issue of options/conversion rights
+(authorisation until 26 August 2023)
+12 Issue of Performance Share Units to
+executives
+(authorisation until 8 October 2020)
+12 Issue of Performance Share Units to
+executives
+75 Issue of options/conversion rights
+(authorisation until 7 May 2018)
+130 Increase in share capital against
+cash/non-cash contributions
+(authorisation until 5 May 2026)
+Contingent Capital 2020/2
+Total capital
+27,006
+32,271
+47
+58
+Other companies
+22
+18
+DHL Aero Expreso S.A., Panama
+247
+203
+1,115
+731
+125
+109
+966
+EQUITY AND LIABILITIES
+607
+94
+149
+124
+Total ASSETS
+23
+14
+PT. Birotika Semesta, Indonesia
+Current assets
+25
+15
+Blue Dart Express Limited, India
+Non-current assets
+345
+122
+196
+Non-controlling interests
+462
+Profit before income taxes
+Income taxes
+Income statement
+Revenue
+DHL Sinotrans International Air Courier Ltd. (Sinotrans),
+China, which is assigned to the Express segment, provides do-
+mestic and international express delivery and transport services.
+Deutsche Post DHL Group holds a 50% interest in the company.
+Deutsche Post AG holds a 75% interest in Blue Dart Express
+Limited (Blue Dart), India, which is assigned to the eCommerce
+Solutions segment. Blue Dart is a courier service provider. The fol-
+lowing table gives an overview of their aggregated financial data:
+There are material non-controlling interests in the following two
+companies:
+25
+15
+345
+196
+Non-controlling interests
+119
+82
+689
+393
+301
+128
+426
+338
+Total EQUITY AND LIABILITIES
+Net assets
+100
+89
+391
+314
+Current provisions and liabilities
+28
+32
+35
+24
+Non-current provisions and liabilities
+121
+ASSETS
+DHL Sinotrans International Air Courier Ltd.,
+China
+Balance sheet
+28
+Total
+3
+0
+Other
+-9
+-3
+prices of treasury shares
+Differences between purchase and issue
+26
+0
+Performance Share Plan
+-19
+-981
+31
+-982
+0
+Share buy-back
+2021
+2020
+€m
+Capital increase/decrease
+In addition to the items evident in the statement of changes in
+equity, retained earnings also include changes due to capital
+increases/decreases:
+1 Relates to e.g. liabilities from overpayments.
+34.2 Retained earnings
+39.6
+47.9
+Net gearing ratio (%)
+Share Matching Scheme
+Deutsche Post DHL Group - 2021 Annual Report
+119
+35 Equity attributable to Deutsche Post AG shareholders
+The equity attributable to Deutsche Post AG shareholders in the
+2021 financial year amounted to €19,037 million (previous year:
+€13,777 million).
+2021
+2020
+2021
+Blue Dart
+2020
+2021
+2020
+Sinotrans
+€m
+Financial data for material non-controlling interests
+€m
+The following table shows the companies to which the
+non-controlling interests relate:
+120
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+This balance sheet item includes adjustments for the interests of
+non-Group shareholders in consolidated equity from acquisition
+accounting, as well as their interests in profit or loss.
+36 Non-controlling interests
+1.15
+1,422
+Dividend distributed in the 2020 financial
+year for the year 2019
+1.35
+1,673
+Dividend distributed in the 2021 financial
+year for the year 2020
+per share
+€
+dividend
+€m
+Dividend
+Total
+Dividends paid to the shareholders of Deutsche Post AG are
+based on the net retained profit of €10,239 million reported in
+Deutsche Post AG's annual financial statements in accordance
+with the HGB. The Board of Management is proposing a dividend
+of €1.80 per no-par-value share carrying dividend rights. This
+corresponds to a total dividend of €2,205 million. The amount
+of €8,034 million remaining after deduction of the planned total
+dividend will be carried forward to new account. The final total
+dividend will be based on the number of shares carrying dividend
+rights at the time the Annual General Meeting resolves upon the
+appropriation of net retained profit on the date of the Annual
+General Meeting.
+Dividends
+0
+7
+21
+7
+116
+Deutsche Post DHL Group - 2021 Annual Report
+Carrying amount
+non-current
+Netting
+of which current
+Gross amount
+Tax loss carryforwards
+Other liabilities
+Financial liabilities
+Provisions
+Other current assets
+Other non-current assets
+Non-current financial assets
+Property, plant and equipment
+Intangible assets
+€m
+Breakdown by balance sheet item and maturity
+28 Deferred taxes
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Miscellaneous other assets include a large number of in-
+dividual items.
+Of the tax receivables, €478 million (previous year:
+€430 million) relates to VAT, €109 million (previous year:
+€86 million) to customs and duties and €45 million (previous
+year: €35 million) to other tax receivables.
+Pension assets increased, primarily because of actuarial
+gains, > note 37.
+The increase in prepaid expenses results primarily from the
+growth of business in Global Forwarding, Freight and the corre-
+sponding increase in prepayments for transport services.
+419
+non-current
+160
+2020
+2021
+Deferred tax
+Deferred tax
+67
+58
+65
+Trade receivables
+44
+16
+26
+14
+34
+3
+66
+2
+€m
+of which current
+0
+1,995
+416
+145
+13
+111
+22
+For information on impairment losses, default risk and maturity
+structures, see > note 43.
+30 Trade receivables
+The increase in finished goods and work in progress is attrib-
+utable mainly to real estate development projects. Adequate
+valuation allowances were recognised.
+Deferred tax
+liabilities
+Deferred tax
+assets
+liabilities
+assets
+479
+579
+Receivable from leasing
+-44
+50
+87
+66
+88
+37
+Receivables from private postal agencies
+Recoverable start-up costs, non-current only
+Receivables from insurance business
+Receivables from loss compensation
+(recourse claims)
+of which current
+of which non-current: 79 (previous year: 74)
+Other assets
+Receivables from employees
+Assets measured at cost also include the deposit made in con-
+junction with the acquisition of Hillebrand of €100 million. At
+the same time, assets measured at cost increased through the
+purchase of term deposits, and assets measured at fair value
+through profit or loss increased, largely on account of the pur-
+chase of money market fund shares. For details on impairment
+losses, default risk, maturity structures and restraints on disposal,
+see > note 43.
+€m
+Maturities of undiscounted lease payments 2021
+Assets measured at cost include €579 million (previous year:
+€107 million) in receivables from finance leases. The increase
+relates primarily to the receivables from certain embedded sub-
+leases, > note 7. The notional amounts of the outstanding lease
+payments have the following maturity dates:
+69
+89
+Creditors with debit balances
+97
+115
+Other assets from insurance contracts
+2,141
+4,278
+2,061
+3,088
+1,485
+1,831
+1,234
+1,315
+1,190
+746
+310
+66
+102
+Receivables from cash on delivery
+Miscellaneous,
+59
+Interest component included over entire term
+623
+Total undiscounted lease payments
+100
+More than 5 years
+46
+More than 4 years to 5 years
+70
+More than 3 years to 4 years
+108
+139
+160
+More than 2 years to 3 years
+54
+More than 1 year to 2 years
+587
+160
+3,588
+2,815
+4,175
+2,975
+680
+756
+non-current
+5
+3
+34
+27
+Up to 1 year
+Deferred revenue
+2,102
+44
+increase (Performance Share Plan)
+Liabilities
+Assets
+€m
+Addition due to contingent capital
+1,239
+1,237
+Balance as at 1 January
+Issued capital
+2021
+2020
+€m
+Changes in issued capital and treasury shares
+2
+The amounts reported in this item relate mainly to the following
+items:
+32 Assets held for sale and liabilities associated with
+117
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Of the €3,531 million in cash and cash equivalents, €1,905 mil-
+lion was not available for general use by the Group as at the
+reporting date (previous year: €1,248 million). Of this amount,
+€1,818 million (previous year: €1,169 million) was attributable
+to countries where exchange controls or other legal restrictions
+apply (mostly China, India and Thailand) and €87 million (pre-
+vious year: €79 million) primarily to companies with non-con-
+trolling-interest shareholders.
+593
+439
+Inventories
+11
+11
+Advance payments
+106
+30
+589
+held for resale
+0
+1,239
+5
+3
+Issue/sale of treasury shares
+0
+0
+0
+9
+-20
+-2
+Purchase of treasury shares
+1
+0
+2
+Balance as at 31 December
+0
+-1
+Balance as at 1 January
+Treasury shares
+4
+0
+18
+0
+Sale of StreetScooter production rights - Group Functions segment
+Sale of Greenplan GmbH, Germany - Group Functions segment
+Sale of Steinfurt property, Germany - Group Functions segment
+Sale of fuel business of DHL Supply Chain Limited, United Kingdom -
+Supply Chain segment
+Other
+2021
+2020
+2021
+2020
+1,239
+0
+Finished goods and goods purchased and
+assets held for sale
+196
+231
+1,029
+242
+954
+2,623
+31 Cash and cash equivalents
+4,429
+2,336
+4,690
+1,267
+1,752
+13
+2021
+222
+254
+3,736
+-2,300
+2,390
+10
+24
+1,700
+26
+1,632
+10,607
+1,076
+11,683
+8,985
+763
+8,222
+2021
+2020
+Trade receivables
+159
+640
+198
+2,094
+244
+3,400
+Raw materials, consumables and supplies
+Work in progress
+2020
+€m
+29 Inventories
+Deferred taxes have not been recognised for temporary
+differences of €568 million (previous year: €403 million) for
+accrued earnings of German and foreign subsidiaries, because
+these temporary differences will probably not reverse in the
+foreseeable future.
+The tax loss carryforwards from the Americas region for
+which no deferred tax assets were recognised do not expire prior
+to 2029.
+No deferred tax assets were recognised for tax loss car-
+ryforwards of around €1.7 billion (previous year: €2.6 billion)
+chiefly from the Americas region and for temporary differences
+of around €3.0 billion (previous year: €4.1 billion) primarily from
+Germany, as it can be assumed that the Group will probably not
+be able to use these tax loss carryforwards and temporary dif-
+ferences in its tax planning.
+A total of €438 million (previous year: €1,065 million) of the
+deferred taxes on tax loss carryforwards relates to tax loss
+carryforwards in Germany and €829 million (previous year:
+€687 million) to foreign tax loss carryforwards (mainly from
+the Americas region).
+3,531
+4,482
+51
+43
+Other cash and cash equivalents
+Cash and cash equivalents
+11
+202
+2,231
+17
+-2,300
+36
+-2,486
+1,943
+2,392
+-2,486
+€m
+2021
+2020
+Cash equivalents
+2,787
+1,238
+Bank balances/cash in transit
+Cash
+1,635
+137
+Net pension provisions
+Current service cost, excluding employee contributions
+Past service cost
+18,618
+2020
+227
+Fair value of plan assets
+37.2 Financial performance of the plans and determination
+of balance sheet items
+Net interest cost
+Balance as at 1 January
+€m
+The present value of defined benefit obligations, the fair value
+of plan assets and net pension provisions changed as follows:
+2021
+19,664
+274
+The Group companies fund their dedicated defined bene-
+fit retirement plans in these three countries primarily by using
+respective joint funding institutions. In the previous year, the
+allocation of plan assets to the participating Group companies
+was harmonised in the Netherlands. In the Netherlands and in
+Switzerland, both employers and employees contribute to plan
+funding. In the United States, no regularly recurring contribu-
+tions are currently made in this regard.
+Present value of
+defined benefit
+obligations
+2020
+13,758
+-19
+2020
+4,860
+2021
+5,815
+227
+274
+-6
+-19
+-6
+Settlement gains (-)/losses (+)
+-2
+-4
+-2
+-4
+funds available for such indexation, on the other. In Switzerland,
+employees receive an occupational pension in line with statutory
+requirements, where pension payments depend on the contribu-
+tions paid, an interest rate that is fixed each year, certain annu-
+ity factors and any pension increases specified. A separate plan
+providing for lump-sum payments instead of lifelong pension
+payments exists for specific higher wage components. In the
+United States, the companies' defined benefit retirement plans
+have been closed to new entrants and accrued entitlements have
+been frozen. In the year under review, a bundle of small pensions
+there was transferred to an insurance company, which primarily
+led to settlement payments.
+2021
+13,849
+122
+54
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Other administration costs in accordance with IAS 19.130
+Service cost¹
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+121
+The portion of other comprehensive income attributable to
+non-controlling interests largely relates to the currency trans-
+lation reserve. The changes are shown in the following table:
+€m
+Balance as at 1 January
+2020
+-16
+Transactions with non-controlling interests
+3
+2021
+-28
+-1
+Total comprehensive income
+Changes from unrealised gains and losses
+Changes from realised gains and losses
+Currency translation reserve as at
+31 December
+-15
+37
+0
+0
+In the Netherlands, collective agreements require that those em-
+ployees who are not covered by a sector-specific plan participate
+in a dedicated defined benefit retirement plan. The dedicated
+plan provides for annual accruals which are subject to a pension-
+able salary cap. The plan provides for monthly benefit payments
+that are indexed in line with inflation, on the one hand, and the
+Other
+The Group's defined benefit pension arrangements in the
+United Kingdom have mainly been consolidated into a Group
+plan with different sections for the participating divisions. These
+are funded mainly via a Group trust. The amount of the employer
+deficit contributions must be negotiated with the trustee in the
+course of funding valuations, which are carried out every three
+years and most recently in the year under review. Normal con-
+tribution amounts no longer accrue since the arrangements for
+further service accrual have been closed.
+In the United Kingdom, the Group's defined benefit pension ar-
+rangements are closed to new entrants and for further service
+accrual. One arrangement which, exceptionally, was partly open
+until 31 March 2019, was then also closed to new entrants and
+for further service accrual. Furthermore, in 2019 certain active
+members of this arrangement were given the option to transfer
+their past service benefits to an external pension arrangement.
+This led to settlement payments in the previous year. With regard
+to some of the arrangements of the Group, a full commutation
+exercise was carried out during the year under review, which
+entailed offering certain members with small pensions the op-
+portunity to exchange their pension for a lump-sum payment.
+This will lead primarily to settlement payments in the following
+year (2022).
+United Kingdom
+Individual subsidiaries in Germany have retirement bene-
+fit plans that were acquired in the context of acquisitions and
+transfers of operations and that are closed to new entrants. Con-
+tractual trust arrangements are in place for two subsidiaries for
+external funding.
+Deutsche Post DHL Group - 2021 Annual Report
+The prime source of external funding for Deutsche Post AG's
+respective retirement benefit obligations is a contractual trust
+arrangement, which also includes a pension fund. The trust is
+funded on a case-by-case basis in line with the Group's finance
+strategy. In the case of the pension fund, the regulatory fund-
+ing requirements can, in principle, be met without additional
+employer contributions. Part of the plan assets consists of real
+estate that is leased out to the Group on a long-term basis. In
+addition, Versorgungsanstalt der Deutschen Bundespost (VAP -
+Deutsche Bundespost institution for supplementary retirement
+pensions), a shared pension fund for successor companies to
+Deutsche Bundespost, is used for some of the legacy pension
+commitments.
+In Germany, Deutsche Post AG has an occupational retirement
+benefit arrangement based on a collective agreement, which is
+open to new hourly workers and salaried employees. Depending
+on the weekly working hours and wage/salary group, retirement
+benefit components are calculated annually for each hourly
+worker and salaried employee, and credited to an individual pen-
+Germany
+37.1 Plan features
+37 Provisions for pensions and similar obligations
+The Group's most significant defined benefit retirement plans
+are in Germany and the United Kingdom. A wide variety of other
+defined benefit retirement plans in the Group are to be found
+in the Netherlands, Switzerland, the United States and a large
+number of other countries. There are specific risks associated
+with these plans along with measures to mitigate them.
+8
+-28
+sion account. A 2.5% increase on the previous year is included in
+every newly allocated component. When the statutory pension
+falls due, the hourly workers and salaried employees can choose
+whether to receive payment as a lump-sum or in instalments, or
+lifelong monthly benefit payments that increase by 1% each year.
+The large majority of Deutsche Post AG's obligations relates to
+older vested entitlements of hourly workers and salaried employ-
+ees from a previous agreement, and to legacy pension commit-
+ments towards former hourly workers and salaried employees
+who have left or retired from the company. In addition, retirement
+benefit arrangements are available to executives below the Board
+of Management level and to specific employee groups through
+deferred compensation in particular. For information on the pen-
+sion scheme for the Board of Management, see > note 47.2.
+-10
+-10
+10
+750 Deutsche Post AG
+0.375
+Bond 2020/2029
+Bond 2020/2026
+818
+743
+846
+743
+750 Deutsche Post AG
+1.625
+526
+497
+534
+496
+745
+500 Deutsche Post AG
+525
+498
+536
+498
+500 Deutsche Post AG
+1.250
+Bond 2018/2028
+Bond 2017/2027
+Bond 2016/2026
+750
+750
+750 Deutsche Post AG
+0.375
+527
+1.000
+499
+771
+759
+€m
+40 Other liabilities
+Convertible bond
+In addition, Deutsche Post AG was granted a call option
+allowing it to repay the bond early at face value plus accrued
+interest if Deutsche Post AG's share price more than temporarily
+exceeds 130% of the conversion price applicable at that time. The
+convertible bond has a debt component and an equity compo-
+nent. In subsequent years, interest will be added to the carrying
+amount of the bond, up to the issue amount, using the effective
+interest method and recognised in profit or loss.
+The convertible bond issued carries a conversion right that al-
+lows holders to convert the bond into a predetermined number
+of Deutsche Post AG shares.
+CONVERTIBLE BOND
+130
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+1 Fair value of the debt component; the fair value of the convertible bond 2017/2025 is €1,200 million (previous year: €1,084 million).
+1,002
+974
+1,024
+967
+746
+1,000 Deutsche Post AG
+Convertible bond 2017/2025¹
+793
+747
+825
+747
+750 Deutsche Post AG
+1.000
+Bond 2020/2032
+776
+748
+798
+747
+750 Deutsche Post AG
+0.750
+0.050
+Tax liabilities
+542
+500 Deutsche Post AG
+The amounts due to banks mainly comprise current overdraft
+facilities and long-term loans due to various banks.
+866
+19,897
+696
+19,098
+3,283
+3,247
+16,614
+13
+54
+12
+617
+434
+249
+262
+15,851
+53
+1
+The amounts reported under liabilities at fair value through
+profit or loss relate mainly to the negative fair values of derivative
+financial instruments.
+1
+544
+479
+10,459
+1,964
+1,821
+9,841
+8,638
+188
+189
+356
+290
+6,669
+7,410
+502
+750
+11,805
+498
+Significant bonds
+The bond issued by Deutsche Post Finance B.V. is fully guaranteed
+by Deutsche Post AG.
+2.750
+764
+699
+786
+699
+700 Deutsche Post AG
+2.875
+508
+500
+525
+499
+500 Deutsche Post Finance B.V.
+2.950
+Bond 2016/2021
+Bonds
+Bond 2013/2023
+Bond 2012/2022
+€m
+€m
+€m
+€m
+Fair value
+Fair value Carrying amount
+Carrying amount
+Issue volume Issuer
+€m
+%
+Nominal coupon
+2021
+2020
+The bond 2016/2021 was completely repaid at the begin-
+ning of January 2021.
+Bond 2012/2024
+6,167
+of executive bodies
+Compensated absences
+18
+14
+damages and similar liabilities
+37
+47
+More than 3 years to 4 years
+Accrued insurance premiums for
+€55.69
+63
+72
+More than 2 years to 3 years
+40
+40
+51
+More than 4 years to 5 years
+of which non-current: 30 (previous year: 39)
+Transaction costs (debt/equity component)
+Conversion price at issue
+142
+146
+More than 1 year to 2 years
+residential building loans
+€53 million
+6,138
+5,135
+Up to 1 year
+Liabilities from the sale of
+2021
+2020
+43
+25
+€4.7/0.3 million
+Liabilities from cheques issued
+25
+Conversion price after adjustment
+304
+328
+non-current
+6,138
+5,135
+of which current
+€55.66
+in 2021
+6,442
+5,463
+Other liabilities
+€55.74
+in 2020
+1,153
+21
+1,003
+6,442
+5,463
+Other liabilities
+€55.63
+in 2019
+Miscellaneous other liabilities
+41
+38
+More than 5 years
+€55.61
+in 2018
+14
+13
+Accrued rentals
+of which non-current: 149 (previous year: 195)
+Incentive bonuses
+10 June 2025
+€946 million
+€m
+161
+Debtors with credit balances
+210
+169
+of which non-current: 95 (previous year: 70)
+Deferred income
+Miscellaneous other liabilities include a large number of
+individual items.
+The liabilities from the sale of residential building loans re-
+late to obligations of Deutsche Post AG to pay interest subsidies
+to borrowers to offset the deterioration in borrowing terms in
+conjunction with the assignment of receivables in previous years,
+as well as pass-through obligations from repayments of principal
+and interest for residential building loans sold.
+Of the tax liabilities, €661 million (previous year: €650 million)
+relates to VAT, €754 million (previous year: €439 million) to cus-
+toms and duties and €207 million (previous year: €178 million)
+to other tax liabilities.
+210
+182
+241
+241
+Social security liabilities
+149
+Payables to employees and members
+293
+Wages, salaries, severance payments
+360
+278
+of which non-current: 30 (previous year: 17)
+Contract liabilities
+446
+395
+1,157
+1,002
+1,622
+1,267
+2021
+2020
+342
+Value of debt component at issue date²
+Value of equity component at issue date³
+Overtime claims
+128
+45
+38
+of which non-current: 0 (previous year: 7)
+2 January 2023 to
+Liabilities for damages
+13 June 2025¹
+45
+38
+Other compensated absences
+13 Dec. 2020 to
+There is no significant difference between the carrying amounts
+and the fair values of the other liabilities due to their short matur-
+ities or near-market interest rates. There is no significant interest
+rate risk because most of these instruments bear floating rates
+of interest at market rates.
+Maturity structure
+54
+22
+108
+COD liabilities
+€1 billion
+58
+33
+Insurance liabilities
+107
+130
+Postage stamps (contract liabilities)
+13 Dec. 2017
+Exercise period, call option
+Exercise period, conversion right
+Outstanding volume
+Issue volume
+Issue date
+2017/2025
+€1 billion
+6,660
+2021
+2020
+2,870
+1,208
+1,080
+1,946
+1,790
+680
+375
+352
+396
+328
+75
+72
+50
+41
+771
+3,154
+25
+275
+204
+275
+204
+307
+283
+98
+72
+209
+211
+767
+712
+250
+230
+31
+517
+Other employee
+benefits
+Restructuring
+provisions
+-37
+-485
+-6
+-274
+-1
+-147
+15
+4
+-230
+-29
+-10
+10
+1111111
+82
+919
+-877
+680
+Total
+Miscellaneous
+provisions
+204
+-52
+283
+Tax provisions
+Aircraft
+maintenance
+-44
+712
+(insurance)
+reserves
+Technical
+72
+2,870
+37
+482
+919
+Kingdom, for example, include an allowance for expected future
+increases in life expectancy.
+Longevity risk may arise in connection with the benefits payable
+in the future due to a future increase in life expectancy. This is
+mitigated in particular by using current standard mortality tables
+when calculating the present value of the defined benefit obli-
+gations. The mortality tables used in Germany and the United
+LONGEVITY RISK
+127
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+The investment is in principle subject to a large number of risks;
+in particular, it is exposed to the risk that market prices may
+change. This is managed primarily by ensuring broad diversifi-
+cation and the use of hedging instruments.
+INVESTMENT RISK
+Pension obligations - especially relating to final salary schemes
+or schemes involving increases during the pension payment
+phase-can be linked directly or indirectly to changes in inflation.
+The risk of increasing inflation rates with regard to the present
+value of the defined benefit obligations has been mitigated in the
+case of Germany, for example, by switching to a system of retire-
+ment benefit components and, in the case of the United Kingdom,
+by closing the defined benefit arrangements. In addition, fixed
+rates of increase have been set and increases partially capped,
+and/or lump-sum payments have been provided for. There is
+also a positive correlation with interest rates.
+INFLATION RISK
+of ESG criteria are increasingly being used when investing plan
+assets.
+Sustainable approaches based mainly on an integration
+Asset-liability studies are performed at regular intervals
+in Germany, the United Kingdom and, amongst other places, the
+Netherlands, Switzerland and the United States, for the purpose
+of matching assets and liabilities; the strategic allocation of plan
+assets is adjusted accordingly.
+In the previous year, hedging measures triggered by de-
+velopments on the capital markets in 2020 (as a result of the
+COVID-19 pandemic) resulted in a decrease in the proportion of
+equity and fixed-income holdings and an increase in the propor-
+tion of the cash holdings.
+38 Other provisions
+68
+2,511
+5,437
+5,901
+39
+0
+29
+684
+1,102
+17
+140
+945
+155
+0
+529
+681
+13,849
+959
+Other provisions break down into the following main types of
+provision:
+Other employee benefits
+160
+181
+799
+738
+2021
+2020
+2021
+2020
+2021
+2020
+Total
+Current
+Non-current
+Balance as at 31 December 2021
+€m
+Addition
+Unwinding of discount/changes in discount rate
+Reversal
+Currency translation differences
+Utilisation
+Changes in consolidated group
+Balance as at 1 January 2021
+€m
+38.1 Changes in other provisions
+Other provisions
+Miscellaneous provisions
+Restructuring provisions
+Tax provisions
+Aircraft maintenance
+Technical reserves (insurance)
+Reclassification
+2
+14
+-67
+0
+4
+4
+3
+14
+50
+275
+0
+0
+0
+0
+0
+275
+307
+75
+43
+16
+93
+50
+98
+767
+81
+31
+44
+78
+283
+250
+959
+483
+48
+7
+50
+375
+64
+2021
+2020
+2021
+2020
+Total
+Current
+Non-current
+1 Explanations, > note 41.
+Financial liabilities
+Other financial liabilities
+Liabilities at fair value through profit or loss
+Lease liabilities¹
+Amounts due to banks
+Bonds
+152
+€m
+129
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+3,154
+704
+129
+158
+302
+653
+1,208
+771
+97
+39
+44
+39 Financial liabilities
+64
+154
+160
+Miscellaneous provisions, which include a large number of
+individual items, break down as follows:
+Of the tax provisions, €131 million (previous year: €99 mil-
+lion) relates to VAT, €45 million (previous year: €40 million) to
+customs and duties and €99 million (previous year: €65 million)
+to other tax provisions.
+The provision for aircraft maintenance relates to obliga-
+tions for major aircraft and engine maintenance by third-party
+companies.
+Technical reserves (insurance) mainly consist of outstand-
+ing loss reserves and IBNR (incurred but not reported) reserves;
+further details can be found in > note 7.
+The provision for other employee benefits primarily covers work-
+force reduction expenses such as severance payments, partial
+retirement, early retirement, stock appreciation rights (SARS) and
+jubilee payments. The increase is attributable mainly to higher
+obligations for partial retirement.
+128
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+13
+3,154
+771
+275
+307
+767
+€m
+75
+1,335
+454
+105
+64
+108
+59
+545
+0
+13
+-3
+0
+-3
+-20
+-21
+959
+Litigation costs
+of which non-current: 56 (previous year: 50)
+Risks from business activities
+of which non-current: 6 (previous year: 7)
+Miscellaneous other provisions
+Total
+More than 5 years
+More than 4 years
+to 5 years
+to 4 years
+More than 3 years
+More than 2 years
+to 3 years
+to 2 years
+Up to 1 year
+More than 1 year
+Total
+Miscellaneous provisions
+Restructuring provisions
+Tax provisions
+Aircraft maintenance
+Technical reserves (insurance)
+Other employee benefits
+2021
+2020
+2021
+111
+114
+49
+45
+1 Excluding possible contingent conversion periods according to the bond terms.
+of which non-current: 334 (previous year: 271)
+Miscellaneous provisions
+612
+680
+771
+38.2 Maturity structure
+The maturity structure of the provisions recognised in the 2021
+financial year is as follows:
+€m
+520
+2 Including transaction costs and call option granted.
+3 Recognised in capital reserves.
+4 After dividend payment.
+Fair value of plan assets
+Net pension provisions
+Reported separately
+Pension assets
+Provisions for pensions and similar obligations
+31 December 2020
+Present value of defined benefit obligations
+Fair value of plan assets
+Net pension provisions
+Reported separately
+Pension assets
+Provisions for pensions and similar obligations
+In the "Other" area, the Netherlands, Switzerland and the United
+States account for a share in the corresponding present value of
+the defined benefit obligations of 48%, 18% and 9%, respectively
+(previous year: 45%, 18% and 11%, respectively).
+Additionally, rights to reimbursement from former Group
+companies existed in the Group in Germany in the amount of
+around €13 million (previous year: €14 million), which had to
+be reported separately under financial assets. Corresponding
+benefit payments are being made directly by the former Group
+companies.
+Germany
+UK
+Other
+Total
+9,927
+Present value of defined benefit obligations
+31 December 2021
+€m
+The disaggregation of the present value of defined benefit
+obligations, fair value of plan assets and net pension provisions,
+as well as the determination of the balance sheet items, is as
+follows:
+-311
+429
+19,664
+18,503
+-313
+13,849
+426
+2
+3
+14,739
+5,497
+5,815
+1 Including other administration costs in accordance with IAS 19.130 from plan assets.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+123
+As at 31 December 2021, the effects of asset ceilings amounted
+to €46 million; an expedient was applied to their recognition
+by deducting this amount from the fair value of plan assets
+(1 January 2021/31 December 2020: €5 million; 1 January 2020:
+€5 million).
+There were settlement payments in the United States in
+particular in the reporting period. In the previous year, there
+were settlement payments in particular in the United Kingdom.
+Moreover, in Germany, the proportion of benefit payments paid
+directly by the company increased. The remeasurements caused
+net pension provisions to fluctuate heavily.
+Total payments amounting to €409 million are expected
+with regard to net pension provisions in 2022. Of this amount,
+€330 million is attributable to the Group's expected direct bene-
+fit payments and €79 million to expected employer contributions
+to pension funds.
+271
+3,079
+-6,229
+-5,895
+0
+13
+7
+26
+576
+5,233
+20
+5,835
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+5,815
+Deutsche Post DHL Group - 2021 Annual Report
+37.3 Additional information on the present value of defined
+benefit obligations
+The significant financial assumptions are as follows:
+%
+31 December 2021
+Discount rate (defined benefit obligations)
+Expected annual rate of future salary increase
+Expected annual rate of future pension increase
+31 December 2020
+Discount rate (defined benefit obligations)
+Expected annual rate of future salary increase
+Expected annual rate of future pension increase
+124
+0
+569
+5,233
+-2,615
+3,698
+-398
+464
+18,503
+-14,739
+3,764
+0
+400
+21
+421
+13
+2
+4,185
+3,698
+11,134
+5,450
+3,080
+-5,901
+-5,437
+-2,511
+19,664
+-13,849
+485
+3
+0
+-5
+456
+203
+130
+288
+326
+-10
+-180
+-10
+-180
+491
+1,708
+1,708
+-1,209
+-65
+112
+-65
+112
+Return on plan assets excluding interest income
+546
+728
+-1,209
+-546
+Income and expenses recognised in the income statement
+Actuarial gains (-)/losses (+) - changes in demographic assumptions
+Actuarial gains (-)/losses (+) - changes in financial assumptions
+Actuarial gains (-)/losses (+) - experience adjustments
+72
+10
+206
+264
+-10
+-10
+216
+274
+Interest cost on defined benefit obligations
+Interest income on plan assets
+285
+52
+192
+192
+213
+140
+-213
+-140
+285
+192
+213
+140
+285
+Germany
+-728
+income
+-733
+-729
+-358
+-417
+-375
+-312
+-68
+-55
+-67
+Balance as at 31 December
+-54
+-1
+0
+-13
+-2
+1
+2
+-14
+-2
+0
+-1
+Remeasurements recognised in the statement of comprehensive
+Currency translation effects
+Transfers
+1,633
+-1,277
+546
+728
+1,087
+-2,005
+Employer contributions
+68
+48
+Acquisitions/divestitures
+-68
+Employee contributions
+36
+28
+19
+28
+17
+0
+Benefit payments
+Settlement payments
+-48
+UK
+3,764
+Total
+Fixed income securities
+Alternatives¹
+Insurances
+Cash
+1,153
+564
+783
+Other
+2,080
+Equities
+4,554
+2,500
+7,871
+1,785
+309
+357
+2,451
+434
+277
+11
+722
+1,237
+519
+31 December 2021
+Other
+-0.23
+0.50
+-0.50
+0.36
+-0.33
+6.01
+7.13
+2.97
+-5.64
+-5.33
+-2.57
+Total
+These are effective weighted changes in the respective present
+value of the defined benefit obligations, e.g. taking into account
+the largely fixed nature of the pension increase for Germany.
+When determining the sensitivity disclosures, the present
+values were calculated using the same methodology used to cal-
+culate the present values at the reporting date. The presentation
+does not take into account interdependencies between the as-
+sumptions; rather, it supposes that the assumptions change in
+isolation. This would be unusual in practice, since assumptions
+are often correlated.
+The weighted average duration of the Group's defined bene-
+fit obligations as at 31 December 2021 was 14.3 years in Germany
+(previous year: 15.3 years) and 15.6 years in the United Kingdom
+(previous year: 17.1 years). In the other countries it was 18.6 years
+(previous year: 18.4 years), and in total it was 15.4 years (previous
+year: 16.3 years).
+A total of 30.5% (previous year: 32.1%) of the present value
+of the defined benefit obligations was attributable to active
+beneficiaries, 20.6% (previous year: 19.6%) to formerly employed
+beneficiaries and 48.9% (previous year: 48.3%) to retirees.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+37.4 Additional information on the fair value of plan assets
+The fair value of the plan assets can be disaggregated as follows:
+€m
+Germany
+UK
+A one-year increase in life expectancy for a 65-year-old
+beneficiary would increase the present value of the defined
+benefit obligations by 4.87% in Germany (previous year: 5.20%)
+and by 4.77% in the United Kingdom (previous year: 4.40%). The
+corresponding increase for other countries would be 3.37%
+(previous year: 3.33%) and the total increase would be 4.59%
+(previous year: 4.69%).
+-0.94
+0
+677
+Insurances
+Cash
+Other
+Fair value of plan assets
+1 Primarily includes absolute return products and private equity investments.
+Quoted market prices in an active market exist for around 68%
+(previous year: 70%) of the total fair values of plan assets. The re-
+maining assets for which no such quoted market prices exist are
+attributable as follows: 14% (previous year: 14%) to real estate,
+10% (previous year: 9%) to fixed income securities, 5% (previous
+year: 5%) to insurances, 2% (previous year: 2%) to alternatives
+and 1% (previous year: 0%) to other. The majority of the invest-
+ments on the active markets are globally diversified, with certain
+country-specific focus areas.
+Real estate included in plan assets in Germany with a fair
+value of €1,653 million (previous year: €1,563 million) is occu-
+pied by Deutsche Post DHL Group.
+617
+513
+Alternatives¹
+751
+1,755
+4,243
+1,152
+7,150
+1,670
+270
+343
+2,283
+356
+1,881
+158
+Real estate
+Equities
+230
+151
+25
+Other
+28
+40
+44
+406
+112
+Fair value of plan assets
+Fixed income securities
+6,229
+2,615
+14,739
+31 December 2020
+Deutsche Post DHL Group - 2021 Annual Report
+126
+37.5 Risk
+Specific risks are associated with the defined benefit retire-
+ment plans. This can result in a (negative or positive) change in
+Deutsche Post DHL Group's equity through other comprehensive
+income, whose overall relevance is classed as medium to high.
+In contrast, a low relevance is attached to the short-term effects
+on staff costs and net finance costs. Potential risk mitigation is
+applied depending on the specifics of the plans.
+INTEREST RATE RISK
+A decrease (increase) in the respective discount rate would lead
+to an increase (decrease) in the present value of the total obli-
+gation and would in principle be accompanied by an increase
+(decrease) in the fair value of the fixed income securities con-
+tained in the plan assets. Further hedging measures are applied,
+in some cases using derivatives.
+5,895
+n.a.
+Real estate
+-0.50
+UK
+%
+of defined benefit obligations
+Change in present value
+125
+Deutsche Post DHL Group - 2021 Annual Report
+Germany
+Change in assumption
+percentage points
+If one of the significant financial assumptions were to
+change, the present value of the defined benefit obligations
+would change as follows:
+Other
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+For the annual pension increase in Germany, fixed rates in
+particular must be taken into account, in addition to the assump-
+tions shown. The effective weighted average therefore amounts
+to approximately 1.00% (previous year: 1.00%).
+The discount rates for defined benefit obligations in the eurozone
+and the United Kingdom were each derived from an individual
+yield curve comprising the yields of AA-rated corporate bonds
+and taking into account membership composition and duration.
+For other countries, the discount rate for defined benefit obli-
+gations was determined in a similar way, provided there was a
+deep market for AA-rated (or, in some cases, AA- and AAA-rated)
+corporate bonds. By contrast, government bond yields were used
+for countries without a deep market for such corporate bonds.
+The selection of corporate bonds to be used for the eurozone
+was refined in June 2020.
+2.11
+1.02
+2.60
+1.75
+2.47
+2.36
+n.a.
+The most significant demographic assumptions made
+relate to life expectancy and/or mortality. For the Group
+companies in Germany, they are based on the HEUBECK RICHT-
+TAFELN 2018 G mortality tables. Life expectancy for the retire-
+ment benefit plans in the United Kingdom was based mainly on
+the S3PMA_H/S3PFA_H (previous year: S2PMA/S2PFA) tables
+of the Continuous Mortality Investigation (CMI) of the Institute
+and Faculty of Actuaries, adjusted to reflect plan-specific mortal-
+ity according to the latest funding valuation. Current projections
+of future mortality improvements were taken into account based
+on the CMI core projection model. For other countries, their own
+country-specific current standard mortality tables were used.
+2.50
+Total
+1.00
+-0.14
+n.a.
+-0.13
+-0.50
+0.24
+0.99
+n.a.
+0.14
+0.50
+31 December 2021
+Expected annual rate of future salary increase
+20.45
+17.53
+-0.89
+16.00
+-1.00
+-13.33
+-15.25
+-13.76
+-12.50
+17.18
+0.95
+Discount rate (defined benefit obligations)
+1.20
+-2.60
+31 December 2020
+Discount rate (defined benefit obligations)
+Expected annual rate of future salary increase
+Expected annual rate of future pension increase
+1.00
+-13.41
+-14.75
+-14.08
+-5.54
+-1.00
+19.08
+20.66
+18.36
+0.50
+0.15
+n.a.
+1.05
+1.06
+0.25
+17.38
+-5.12
+-15.36
+2.39
+-0.31
+1.67
+3.15
+1.75
+2.48
+n.a.
+2.50
+1.64
+2.65
+1.90
+1.61
+1.50
+-0.22
+Expected annual rate of future pension increase
+0.50
+0.34
+5.32
+7.29
+2.96
+-0.50
+0.80
+-44
+-409
+-8
+-462
+Other financial
+liabilities¹
+2020
+2021
+-1
+91
+€m
+Non-cash income and expense
+365
+-76
+42.1 Net cash from operating activities
+As at the reporting date, there were no hedges attributable solely
+to the liabilities arising from financing activities. The effects on
+cash flows from hedges are presented in the "Other financing
+activities" cash flow item in the amount of €111 million.
+2,850
+0
+2,850
+0
+-470
+Total
+16,601
+-2,288
+14
+At €9,993 million, net cash from operating activities was
+€2,294 million higher than in the prior-year period (€7,699 mil-
+lion). Income taxes paid saw an increase of €569 million to a total
+of €1,323 million. The cash outflow from the change in working
+capital amounted to €430 million (previous year: €404 million).
+Non-cash income and expenses are as follows:
+5
+3,408
+153
+Lease liabilities
+10,301
+309
+32
+1
+0
+0
+Balance as at 31 December 2021
+Other changes
+Currency translation
+Non-cash changes
+Leases
+-3,207
+12
+-2,395
+21
+-845
+Cash changes²
+18,672
+324
+10,459
+479
+7,410
+Balance as at 31 December 2020/1 January 2021
+43
+468
+41
+Deutsche Post DHL Group - 2021 Annual Report
+5,467
+8
+2,079
+899
+0
+14,644
+Total
+10,459
+11,805
+of which additions
+1,874
+83
+227
+1
+266
+1
+2,759
+Accumulated
+depreciation and
+impairment losses
+3,543
+6
+632
+402
+0
+534
+Carrying amount
+11,431
+1,821
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+131
+Lease disclosures
+41 Lease disclosures
+Currency translation income on lease liabilities totalled €16 mil-
+lion (previous year: €28 million), whilst the related expenses
+amounted to €49 million (previous year: €25 million). Gains
+from sale-and-leaseback transactions came in at €105 million
+(previous year: €149 million) with €96 million (previous year:
+€131 million) attributable to real estate development projects.
+The right-of-use assets carried as non-current assets resulting
+from leases are presented separately in the following table:
+Right-of-use assets
+€m
+In the real estate area, the Group primarily leases warehouses,
+office buildings and mail and parcel centres. The leased aircraft
+are predominantly deployed in the air network of the Express
+segment. The additions also relate to the renewal of the aircraft
+fleet. Leased transport equipment also includes the leased vehi-
+cle fleet. The real estate leases in particular are long-term leases.
+The Group had 79 real estate leases with remaining lease terms
+of more than 20 years as at 31 December 2021 (previous year:
+62 leases). Aircraft leases have remaining lease terms of up to
+14 years. Leases may include extension and termination options,
+> note 7. The leases are negotiated individually and include a
+wide range of different conditions. Lease liabilities are presented
+in the following table:
+Land and
+buildings
+Technical
+equipment and
+1,964
+IT systems,
+operating and
+machinery office equipment
+Transport
+equipment
+Advance
+payments and
+assets under
+€m
+2020
+2021
+development
+Total
+31 December 2020
+Accumulated cost
+Non-current lease liabilities
+Current lease liabilities
+8,638
+9,841
+Aircraft
+7,888
+137
+2
+Carrying amount
+8,154
+119
+2
+2,055
+587
+251
+5,914
+11,168
+Future cash outflows amounted to €14 billion (previous year:
+€13 billion) as at the reporting date, > note 43. Possible future
+cash outflows amounting to €2.6 billion (previous year: €2.0 bil-
+lion) were not included in lease liabilities because it is not reason-
+ably certain that the leases will be extended (or not terminated).
+Leases that the Group has entered into as a lessee but that have
+not yet commenced result in possible future payment outflows
+totalling €1.6 billion (previous year: €0.2 billion), which primar-
+ily result from the renewal of the aircraft fleet. Additional infor-
+mation on the lessee required under IFRS 16 can be found in
+> note 12, 14, 18 and 42.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+132
+0
+Cash flow disclosures
+The following table shows the reconciliation of changes in li-
+abilities arising from financing activities in accordance with the
+IFRS requirements:
+Liabilities arising from financing activities
+€m
+Balance as at 1 January 2020
+Cash changes²
+Non-cash changes
+Leases
+Currency translation
+Other changes
+Bonds
+Amounts due to
+banks
+42 Cash flow disclosures
+511
+961
+7
+1,447
+497
+0
+4,673
+9,971
+31 December 2021
+Accumulated cost
+12,472
+236
+9
+3,016
+1,098
+251
+of which additions
+2,116
+24
+1
+543
+310
+86
+17,082
+3,080
+Accumulated
+depreciation and
+impairment losses
+4,318
+117
+1,853
+90
+of the hedge
+12
+-20
+12
+-2
+10
+1 Excluding deferred taxes.
+1
+26.68
+1.13
+Balance as at 31 December¹
+6.49
+26.53
+28.41
+NET INVESTMENT HEDGES
+Currency risks resulting from the translation of foreign oper-
+ations were not hedged in 2021. At the reporting date, there
+was still a positive amount of €25 million from terminated net
+investment hedges in the currency translation reserve as in the
+previous year.
+43.4 Additional disclosures on the financial instruments
+used in the Group
+The Group classifies financial instruments based on the relevant
+balance sheet items. The following table reconciles the finan-
+cial instruments to the categories and their fair values as at the
+reporting date:
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Reconciliation of carrying amounts in accordance with IFRS 9 and level classification
+7.76
+€m
+2
+7
+Gains and losses on effective hedges
+OCI I
+Effective portion
+OCI II
+2020
+Cost of hedging
+2021
+-2
+-5
+-24
+-20
+11
+29
+-1
+28
+Reclassification due to the recognition of
+hedged items
+-29
+4
+Balance as at 1 January
+Financial
+instruments
+Other
+financial
+IFRS 9
+IFRS 9¹
+value Level 1 Level 2 Level 3
+ASSETS
+Debt instruments measured at cost
+14,344
+14,238
+106
+IFRS 7 fair
+473
+Non-current financial assets
+466
+385
+81
+473
+392
+17,724
+834
+17,157
+392
+31 December 2020
+outside
+Carrying
+amount
+within the instruments
+Level classification
+financial instruments
+within the scope of IFRS 9
+Deutsche Post DHL Group - 2021 Annual Report
+140
+31 December 2021
+Financial
+instruments
+scope of
+Other
+financial
+within the instruments
+within the scope of IFRS 9
+Carrying
+scope of
+amount
+IFRS 9
+outside
+IFRS 9¹
+IFRS 7 fair
+value Level 1 Level 2 Level 3
+Level classification
+financial instruments
+567
+103
+-110
+80.0-100.0
+of which for assets for the settlement of
+residential building loans
+46
+38
+for sureties paid
+101
+110
+Current collateral
+80.0
+16
+0
+100
+16
+100
+Trade receivables are derecognised when a reasonable assess-
+ment indicates they are no longer recoverable. The relevant indi-
+cators include a delay in payment of more than 360 days.
+In the 2021 financial year, there were factoring agreements
+in place that obliged the banks to purchase existing and future
+trade receivables. The banks' purchase obligations were limited
+to a maximum portfolio of receivables of €616 million (previous
+year: €672 million). Deutsche Post DHL Group can decide at its
+discretion whether, and to what extent, the revolving notional
+volume is utilised. The risks relevant to the derecognition of the
+receivables include credit risk and the risk of delayed payment
+(late payment risk).
+Credit risk represents primarily all the risks and rewards
+associated with ownership of the receivables. This risk is trans-
+ferred in full to the bank against payment of a fixed fee for doubt-
+ful accounts. A significant late payment risk does not exist. All of
+the receivables were therefore derecognised. In the 2021 financial
+year, the Group recognised programme fees (interest, allowances
+of which for restricted cash
+for sureties paid
+200
+The collateral provided relates primarily to sureties paid and
+restricted cash.
+2021
+148
+Non-current collateral
+%
+1 to 60 days
+61 to 120 days
+121 to 180 days
+181 to 360 days
+More than 360 days
+for doubtful accounts) of €2 million (previous year: €2 million)
+as an expense in the context of its continuing exposure. The
+notional volume of receivables factored as at 31 December 2021
+amounted to €90 million (previous year: €255 million).
+43.2 Collateral
+2020
+147
+Collateral provided
+2021
+0.1-0.3
+0.1-0.2
+1.0-4.0
+6.0-31.0
+1.4-3.1
+8.0-25.0
+€m
+42.0-76.0
+40.0-75.0
+2020
+103
+43.3 Derivative financial instruments
+There were no fair value hedges as at 31 December 2021, as in
+the previous year. At the reporting date, unwinding interest rate
+swaps resulted in carrying amount adjustments of €2 million
+(previous year: €6 million) which are included in current financial
+liabilities in the amount of €2 million (previous year: €0 million).
+The remaining carrying amount adjustments will be amortised
+using the effective interest method over the remaining term of
+the liabilities (2022) and will reduce interest expense.
+Remaining term
+Total notional volume
+Up to 1 year
+1 year to 5 years
+More than 5 years
+Average hedge rate
+€
+132
+139
+21
+21
+16
+16
+66
+378
+378
+-199
+-89
+65
+FAIR VALUE HEDGES
+Deutsche Post DHL Group - 2021 Annual Report
+Cash flow hedging reserve
+CASH FLOW HEDGES
+The Group uses currency forwards and currency swaps to hedge
+the cash flow risk from future foreign currency operating rev-
+enue and expenses. The notional amount of these currency
+forwards and currency swaps amounted to €192 million at the
+reporting date (previous year: €942 million); the fair value was
+€3 million (previous year: €-8 million). The hedged items will
+have an impact on cash flow by 2027.
+In addition, cash flow hedges were used to hedge fuel price
+risk with swap transactions in the notional amount of €13 million
+(previous year: €45 million) and a fair value of €7 million (pre-
+vious year: €-7 million) running until the end of 2022. Only the
+product price component of the fuel price was designated as
+the hedged item; based on official statistics, the product price
+component accounted, on average, for 90% of overall fuel price
+fluctuations in the past.
+The gains and losses on open hedging instruments recog-
+nised in equity at the reporting date amounted to €10 million
+(previous year: €–14 million). No ineffective portions of hedges
+were recognised. In the financial year under review, €3 million
+in realised gains from cash flow hedges for fuel price risk were
+recognised in materials expense.
+The following table shows the net open hedging positions
+at the reporting date in the currency pairs with the highest net
+positions and their weighted hedge rate:
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Notional volume of hedging instruments
+€m
+€m
+31 December 2021
+Currency forwards buy EUR/CZK
+Currency forwards sell EUR/USD
+Currency forwards buy USD/CNY
+31 December 2020
+Hedges of currency risk
+Currency forwards buy USD/HKD
+Currency forwards sell EUR/CZK
+Currency forwards buy USD/TWD
+As in the previous year, carrying amounts of derivative assets
+amounting to €11 million (previous year: €1 million) and deriva-
+tive liabilities amounting to €−1 million (previous year: €-16 mil-
+lion) included in cash flow hedges did not result in ineffectiveness
+within the period. This is because the changes in the fair value
+of the hedged items (€-30 million) and hedging transactions
+(€30 million) offset each other (previous year: €21 million and
+€-21 million).
+Hedges of currency risk
+Loss rates by age band
+436
+410
+1,234
+1,234
+1,234
+1,211
+23
+1,831
+1,831
+1,831 1,762
+Current financial assets
+69
+1,211
+1,211
+1,211
+1,211
+1,762
+1,762
+1,762
+1,762
+Debt instruments
+Trading derivatives
+0
+0
+309
+309
+Equity instruments
+1
+1
+1
+1
+1
+0
+1
+1
+Fair value option
+Derivatives designated as hedges
+1
+1
+1
+1
+0
+1
+309
+22
+22
+160
+2,485
+18,503
+n.a.
+n.a.
+587
+3,169
+n.a.
+n.a.
+15,752
+106
+TOTAL ASSETS
+1,987
+416
+23,667
+19,344
+567
+3,033
+2,118
+505
+103
+6,669
+1,490
+22
+Other current assets
+n.a.
+22
+58
+58
+58
+58
+Derivatives designated as hedges
+1
+1
+Other non-current assets
+1
+11
+11
+11
+11
+Not IFRS 7
+2,645
+n.a.
+3,756
+1
+424
+309
+249
+11,683
+11,683
+n.a.
+Cash and cash equivalents²
+4,482
+4,482
+n.a.
+3,531
+n.a.
+3,531
+Equity instruments at fair value through other comprehensive
+income
+29
+Non-current financial assets
+Reserve for equity instruments without recycling
+「88「8
+29
+29
+29
+n.a.
+222
+8,985
+Trade receivables²
+846
+436
+Current financial assets²
+81
+56
+25
+n.a.
+1,257
+8,985
+1,100
+n.a.
+Other current assets²
+330
+330
+n.a.
+419
+419
+n.a.
+157
+249
+222
+46
+2,141
+2,141
+2,072
+69
+Non-current financial assets
+251
+251
+251
+2,141
+250
+310
+310
+310
+310
+0
+Debt instruments
+249
+249
+1
+29
+24
+1,485
+46
+46
+46
+29
+46
+46
+46
+46
+1,461
+29
+46
+46
+46
+Current financial assets
+Reserve for equity instruments without recycling
+Debt instruments and equity instruments at fair value through
+profit or loss
+1,485
+1,485
+46
+The following table provides an overview of loss rates by age
+band that were used in the Group for the financial year under
+review:
+846
+Deutsche Post DHL Group - 2021 Annual Report
+0
+10
+89
+2,522
+1,428
+2,198
+7,309
+348
+1,833
+11,283
+1,151
+8
+2,155
+939
+1,165
+4,355
+949
+5,050
+656
+1,491
+7
+0
+89
+3,155
+5,754
+0
+8
+7
+6
+4
+74
+679
+2,746
+2,432
+2,453
+5
+8,914
+1,321
+2,355
+9,556
+339
+13,571
+2,408
+1,076
+1,350
+6
+2,097
+Currency risks arise from planned foreign currency trans-
+actions if the future transactions are settled at exchange rates
+that differ from the originally projected rates. These currency
+risks are also captured centrally in Corporate Treasury. Currency
+risks from planned transactions and transactions with existing
+contracts are only hedged in selected cases. The relevant hedged
+items and derivatives used for hedging purposes are accounted
+for using cash flow hedge accounting, > note 43.3.
+Currency risks also result from translating assets and liabil-
+ities of foreign operations into the Group's currency (translation
+risk). No translation risks were hedged at the reporting date.
+Cash outflows
+Cash inflows
+-2,944
+3,008
+-15
+-1
+16
+On-balance-sheet currency risks arise from the meas-
+urement and settlement of recognised foreign currency items
+if the exchange rate on the measurement or settlement date
+differs from the rate at initial recognition. The resulting foreign
+exchange differences directly impact profit or loss. In order to
+mitigate this impact as far as possible, all significant on-bal-
+ance-sheet currency risks within the Group are centralised in
+Deutsche Post AG's in-house bank function. The centralised cur-
+rency risks are aggregated by Corporate Treasury to calculate a
+net position per currency and hedged externally based on val-
+ue-at-risk limits. The currency-related value at risk (95%/one-
+month holding period) for the portfolio totalled €5 million (pre-
+vious year: €4 million) at the reporting date; the limit is currently
+a maximum of €5 million. The notional amount of the currency
+forwards and currency swaps used to manage on-balance-sheet
+currency risks amounted to €4,078 million at the reporting date
+(previous year: €3,562 million); the fair value was €46 million
+(previous year: €-16 million). Hedge accounting was not applied.
+Derivatives are accounted for as trading derivatives (free-stand-
+ing derivatives).
+1
+Cash inflows
+8
+Derivative liabilities -
+gross settlement
+Cash outflows
+-1,195
+-20
+Cash inflows
+Net settlement
+15
+The international business activities of Deutsche Post DHL Group
+expose it to currency risks from recognised or planned future
+transactions:
+More than
+5 years
+2,120
+9,420
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+The maturity structure of the derivative financial instruments
+based on cash flows is as follows:
+Maturity structure of derivative financial instruments
+€m
+As at 31 December 2021
+CURRENCY RISK AND CURRENCY MANAGEMENT
+Derivative receivables -
+Up to 1 year
+More than
+More than
+More than
+More than
+1 year to 2 years 2 years to 3 years 3 years to 4 years 4 years to 5 years
+Deutsche Post DHL Group - 2021 Annual Report
+135
+3
+gross settlement
+798
+1,603
+1,993
+0
+19,379
+Other
+28
+1
+Non-cash income (-) and expenses (+)
+132
+22
+1 Differences from the financial liabilities presented in > note 39 (other financial liabilities and financial liabilities at fair value through profit or loss) in the amount of €518 million
+(previous year: €426 million) are due to factors presented in other cash flow items, e.g. derivatives, contingent consideration from company acquisitions or operating financial liabilities.
+² Differences in cash changes from the total amount of net cash used in financing activities (€-6,224 million; previous year: €-2,250 million) are due primarily to interest payments
+in addition to payments relating to equity transactions. The interest payments reported in the cash flow statement also include payments that do not relate to liabilities from
+financing activities.
+361
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+133
+42.2 Net cash used in investing activities
+Net cash used in investing activities increased from €3,640 mil-
+lion to €4,824 million. Cash paid to acquire property, plant and
+equipment and intangible assets increased by €814 million to
+€3,736 million. Investing activities focused on, amongst other
+things, the ongoing expansion and renewal of the road vehicle
+and air fleet. The purchase of money market funds in the amount
+of €950 million led to, amongst other things, cash paid to acquire
+current financial assets totalling €1,508 million (previous year:
+€933 million).
+42.3 Net cash used in financing activities
+At €6,224 million, net cash used in financing activities was
+€3,974 million higher than the prior-year figure (€2,250 million).
+Share buy-backs led to cash paid to acquire treasury shares in
+the amount of €1,115 million. The dividend payment to the share-
+holders also increased, rising by €251 million to €1,673 million.
+For further details on the cash flow statement and free cash flow,
+see the Combined management report.
+Other disclosures
+43 Risks and financial instruments of the Group
+Deutsche Post DHL Group - 2021 Annual Report
+43.1 Risk management
+-32
+Result from investments accounted for using
+the equity method
+24
+138
+544
+11,805
+0
+3,408
+Expense from the remeasurement of assets
+Income from the remeasurement of liabilities
+Income (-)/expense (+) on asset disposals
+Staff costs relating to equity-settled
+share-based payments
+176
+34
+-176
+-3
+-4
+73
+79
+8
+350
+17
+156
+176
+-198
+As a result of its operating activities, the Group is exposed to
+financial risks that may arise from changes in exchange rates,
+commodity prices and interest rates. Deutsche Post DHL Group
+manages these risks centrally through the use of non-derivative
+and derivative financial instruments. Derivatives are used exclu-
+sively to mitigate non-derivative financial risks, and fluctuations
+in their fair value should not be assessed separately from the
+underlying transaction.
+The Group's internal risk guidelines govern the universe of
+actions, responsibilities and necessary controls regarding the
+use of derivatives. Financial transactions are recorded, assessed
+and processed using proven risk management software, which
+also regularly documents the effectiveness of hedging relation-
+ships. Portfolios of derivatives are regularly reconciled with the
+banks concerned.
+To limit counterparty risk from financial transactions, the
+Group may only enter into this type of contract with prime-rated
+banks. The conditions for the counterparty limits individually
+assigned to the banks are reviewed on a daily basis. The Group's
+Board of Management is informed internally at regular intervals
+about existing financial risks and the hedging instruments de-
+ployed to mitigate them. Financial instruments are accounted
+for and measured in accordance with IFRS 9. The Group be-
+gan to apply the IFRS 9 hedge accounting requirements as at
+1 January 2020.
+Non-current financial liabilities
+Current financial liabilities
+Current lease liabilities
+Trade payables
+Other current financial liabilities
+Current financial liabilities
+1 The convertible bond 2025 is contained in the "More than 3 years to 4 years" range.
+Deutsche Post DHL Group - 2021 Annual Report
+Other non-current financial liabilities
+134
+More than
+1 year to 2 years
+More than
+2 years to 3 years
+More than
+3 years to 4 years
+More than
+4 years to 5 years
+More than 5 years
+74
+745
+Up to 1 year
+Non-current lease liabilities
+Non-current financial liabilities'
+As at 31 December 2020
+Disclosures regarding risks associated with the Group's
+defined benefit retirement plans and their mitigation can be
+found in > note 37.5.
+Liquidity management
+The ultimate objective of liquidity management is to secure the
+solvency of Deutsche Post DHL Group and all Group companies.
+Consequently, liquidity in the Group is centralised as much as
+possible in cash pools and managed in the Corporate Center.
+The centrally available liquidity reserves (funding availabil-
+ity), consisting of central short-term financial investments and
+committed credit lines, are the key control parameter. The target
+is to have at least €2 billion available in a central credit line.
+As at 31 December 2021, the Group had central liquidity
+reserves of €5.6 billion (previous year: €5.9 billion), consisting
+of central financial investments amounting to €3.6 billion plus a
+syndicated credit facility of €2 billion.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+The maturity structure of non-derivative financial liabilities
+within the scope of IFRS 7 based on cash flows is as follows:
+Maturity structure of financial liabilities
+€m
+As at 31 December 2021
+Non-current financial liabilities¹
+Non-current lease liabilities
+Other non-current financial liabilities
+Non-current financial liabilities
+Current financial liabilities
+Current lease liabilities
+Trade payables
+Other current financial liabilities
+Current financial liabilities
+1,183
+21
+1,327
+1,122
+-19
+21
+Changes in receivables
+31 December 2021
+2,560
+-50
+2,510
+€m
+Balance as at 1 January 2020
+1,165
+Balance as at
+-28
+Newly originated financial
+Gross receivables
+assets
+623
+623
+Balance as at 1 January
+8,728
+9,213
+1,137
+Impairment loss
+410
+29
+913
+-36
+877
+29
+410
+No cash flows from debt instruments were modified in the finan-
+cial year and no changes were made to the model for determin-
+ing risk parameters. The inputs were not remeasured.
+All debt instruments and lease receivables were recognised
+in Stage 1 at the reporting date; they were neither past due nor
+impaired. There were no indications at the reporting date of any
+poor performance of the debt instruments and lease receivables.
+There was no reclassification between the stages in the financial
+year.
+Trade receivables from customer relationships amounting
+to €11,683 million were due within one year at the reporting date
+(previous year: €8,985 million). They are held primarily with the
+aim of collecting the principal amount of the receivables. These
+items are therefore assigned to the "held to collect contractual
+cash flows" business model and measured at amortised cost.
+Trade receivables changed as follows:
+Changes in consolidated
+group/Reclassifications
+2020
+Impairment loss
+1,940
+-13
+Disposal
+-719
+1,940
+-13
+-719
+Reversal of loss allowance
+Increase in loss allowance
+Currency translation
+differences
+32
+-46
+32
+-46
+2021
+Net
+carrying
+amount
+-3
+Changes
+Changes
+-61
+-60
+Changes in consolidated
+Balance as at 31 December
+-228
+-288
+group/Reclassifications
+-43
+3
+Carrying amount as at 31 December
+8,985
+11,683
+Balance as at
+31 December 2020
+913
+-36
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+3
+-3
+-43
+-228
+485
+2,758
+Disposal
+-832
+-832
+Balance as at 31 December
+9,213
+11,971
+differences
+Reversal of loss allowance
+24
+Increase in loss allowance
+-32
+-32
+Loss allowances
+Currency translation
+Balance as at 1 January
+-167
+24
+Loss
+allowance
+877
+Gross
+carrying
+Net settlement
+0
+Derivative liabilities -
+gross settlement
+Cash outflows
+Cash inflows
+-2,094
+2,054
+-26
+-1
+1
+-25
+-3
+26
+25
+16
+Net settlement
+Cash outflows
+-11
+The contract terms stipulate how the parties must meet their
+obligations arising from derivative financial instruments, either
+by net or by gross settlement.
+-16
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+7
+2,191
+amount
+-6
+-4
+-1
+7
+4
+1
+Net settlement
+35
+Cash outflows
+As at 31 December 2020
+Derivative receivables -
+gross settlement
+Cash outflows
+-2,167
+-34
+-6
+Cash inflows
+0
+Deutsche Post DHL Group - 2021 Annual Report
+Cash inflows
+Currency forwards and currency swaps in a notional
+amount of €4,270 million (previous year: €4,503 million) were
+outstanding at the reporting date. The corresponding fair value
+was €49 million (previous year: €-24 million).
+Most of the risks arising from commodity price fluctuations, in
+particular fluctuating prices for kerosene and marine diesel fuels,
+were passed on to customers via operating measures. As the
+impact of the related fuel surcharges is delayed by one to two
+months, earnings may be affected temporarily if there are sig-
+nificant short-term fuel price variations.
+The remaining fuel price risk is partly hedged with swap
+transactions in the notional amount of €13 million (previous
+year: €45 million) and a fair value of €7 million (previous year:
+€-7 million) running until the end of 2022.
+A 10% increase in the commodity prices underlying the de-
+rivatives as at the reporting date would therefore have increased
+fair values and equity by €2 million (previous year: €4 million).
+A corresponding decline in commodity prices would have had
+the opposite effect.
+1 The total amount is lower than the sum of the individual amounts, owing to interdependencies.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+Balance as at 1 January 2021
+Newly originated financial
+assets
+CREDIT RISK
+MARKET RISK
+Credit risk arises for the Group from operating activities and from
+financial transactions. The aggregate carrying amount of finan-
+cial assets represents the maximum default risk.
+any of the counterparties as at 31 December 2021.
+The credit risk of financial assets arising from operations
+is managed by the divisions.
+As a rule, the expected credit loss associated with financial
+assets must be determined. Based on the expected credit loss
+model (impairment model), a loss allowance must be anticipated
+for the possible credit loss, > note 7.
+The impairment model is applicable to non-current and
+current debt instruments recognised at amortised cost and to
+lease receivables. Debt instruments comprise mainly deposits,
+collateral provided and loans to third parties.
+The gross amounts of financial assets subject to the impair-
+ment model are presented in the following table:
+Stage 1-12-month ECL
+€m
+136
+In an effort to minimise credit risk from operating activities
+and financial transactions, counterparties are assigned individ-
+ual limits, the utilisation of which is regularly monitored. The
+Group's heterogeneous customer structure means that there is
+no risk concentration. Financial transactions are only entered
+into with prime-rated counterparties. A test is performed at the
+reporting dates to establish whether an impairment loss needs
+to be charged on financial assets and the positive fair values of
+derivatives due to changes in credit quality. This was not the case
+for
+INTEREST RATE RISK AND INTEREST RATE MANAGEMENT
+No interest rate hedging instruments were recognised as at the
+reporting date. The proportion of financial liabilities with short-
+term interest lock-ins, >note 39, amounts to 16% (previous year:
+17%) of the total financial liabilities as at the reporting date. The
+effect of potential interest rate changes on the Group's financial
+position remains insignificant.
+137
+4
+6
+IFRS 7 requires the disclosure of quantitative risk data,
+showing how profit or loss and equity are affected by changes
+in exchange rates at the reporting date. The impact of these
+changes in exchange rates on the portfolio of foreign currency
+financial instruments is assessed by means of a value-at-risk cal-
+culation (95% confidence/one-month holding period). It is as-
+sumed that the portfolio as at the reporting date is representative
+Risk data on currency risk
+€m
+Primary financial instruments and free-standing
+derivatives
+Derivative instruments (cash flow hedges)
+Total value at risk¹
+for the full year. The following assumptions are used as a basis
+for the sensitivity analysis:
+Primary financial instruments in foreign currencies used
+by Group companies are hedged by Deutsche Post AG's in-house
+bank. Deutsche Post AG determines monthly exchange rates and
+guarantees these to the Group companies. Exchange rate-re-
+lated changes therefore have no effect on the profit or loss and
+equity of the Group companies. Where Group companies are not
+permitted to participate in in-house banking for legal reasons,
+their currency risks from primary financial instruments are fully
+hedged locally through the use of derivatives. They therefore
+have no impact on the Group's risk position.
+Of the unrealised gains or losses from currency derivatives
+recognised in equity as at 31 December 2021, €4 million (previ-
+ous year: €-7 million) is expected to be recognised in income in
+the course of the following year.
+2021
+Profit or loss effects
+2020
+Equity effects
+Profit or loss effects
+Equity effects
+5
+7
+5
+The following table presents currency-related effects on
+value at risk:
+793
+1,007
+854
+222
+332
+1,343
+thousands
+174
+1,148
+How many, if any, of the SARS granted can be exercised
+is determined in accordance with four (absolute) performance
+targets based on the share price and two (relative) performance
+targets based on a benchmark index. One-sixth of the SARS
+granted are earned each time the closing price of Deutsche Post
+shares exceeds the issue price by at least 10, 15, 20 or 25% at
+the end of the waiting period (absolute performance targets).
+Both relative performance targets are tied to the performance
+of the shares in relation to the STOXX Europe 600 Index (SXXP;
+ISIN EU0009658202). They are met if the share price equals
+the index performance or if it outperforms the index by more
+than 10%. Performance is determined by comparing the average
+Since the 2006 financial year, the company has granted mem-
+bers of the Board of Management cash remuneration linked
+to the company's long-term share price performance through
+the issue of stock appreciation rights (SARS) as part of a Long-
+Term Incentive Plan (LTIP). Participation in the LTIP requires
+Board of Management members to make a personal invest-
+ment of 10% of their annual base salary by the grant date of each
+tranche, primarily in shares.
+The SARS granted can be fully or partly exercised after the
+expiration of a four-year lock-up period at the earliest, provided
+absolute or relative performance targets have been achieved at
+the end of this lock-up period. After expiration of the lock-up
+period, the SARS must be exercised within a period of two years
+(exercise period); any SARS not exercised expire.
+price of Deutsche Post shares and the average index value dur-
+ing a reference and a performance period. The reference period
+comprises the last 20 consecutive trading days prior to the issue
+date. The performance period is the last 60 trading days before
+the end of the lock-up period. The average (closing) price is cal-
+culated as the average closing price of Deutsche Post shares in
+Deutsche Börse AG's Xetra trading system. If absolute or relative
+performance targets are not met by the end of the lock-up pe-
+riod, the SARS attributable to them will expire without replace-
+ment or compensation. Each SAR exercised entitles the Board of
+Management member to receive a cash settlement equal to the
+difference between the average closing price of Deutsche Post
+shares for the five trading days preceding the exercise date and
+the exercise price of the SAR.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+LTIP 2006
+2016 tranche
+46.52
+46.2 Long-Term Incentive Plan (2006 LTIP) for members of
+the Board of Management
+864
+61.00¹
+thousands
+2017 tranche
+Number of deferred incentive shares
+thousands
+320
+256
+n.a.
+369
+246
+901
+1942
+Deferred incentive shares
+Investment shares
+Matching shares issued
+¹ Estimated provisional amount; it will be determined on 1 April 2022.
+2 Expected number.
+thousands
+288
+230
+n.a.
+Number of matching shares expected
+2018 tranche
+Initial dividend yield of Deutsche Post shares
+2020 tranche
+2021 tranche
+A stochastic simulation model is used to determine a fair
+value for the SARS from the 2006 LTIP. The result in the 2021
+financial year was an expense of €52 million (previous year:
+expense of €24 million) and a provision at the reporting date
+of €44 million (previous year: €34 million). The provision for
+the rights exercisable by the Board of Management amounted
+to €14 million at the reporting date (previous year: €20 million).
+For further disclosures on share-based payment for mem-
+bers of the Board of Management, see > note 47.2.
+46.3 Performance Share Plan (PSP) for executives
+The Annual General Meeting on 27 May 2014 resolved to intro-
+duce the Performance Share Plan (PSP) for executives. Under
+the PSP, shares are issued to participants at the end of the wait-
+ing period. The granting of the shares at the end of the waiting
+period is linked to the achievement of demanding performance
+targets. The performance targets under the PSP are identical
+to the performance targets under the LTIP for members of the
+Board of Management.
+Performance Share Units (PSUs) were issued to selected ex-
+ecutives for the first time on 1 September 2014. It is not planned
+that members of the Board of Management will participate in the
+PSP. The Long-Term Incentive Plan (2006 LTIP) for members of
+the Board of Management remains unchanged.
+In the consolidated financial statements as at 31 Decem-
+ber 2021, a total of €25 million (previous year: €26 million) has
+been appropriated to capital reserves for the purposes of the
+plan, with an equal amount recognised in staff costs.
+The value of the PSP is measured using actuarial methods
+based on option pricing models (fair value measurement). Fu-
+ture dividends were taken into account, based on a moderate
+increase in dividend distributions over the respective measure-
+ment period.
+The average remaining maturity of the outstanding PSUs
+as at 31 December 2021 was 24 months.
+Deutsche Post DHL Group - 2021 Annual Report
+147
+The Board of Management members received a total of 862,272
+SARS (previous year: 816,498 SARS) with a total value, at the
+time of issue, of €8.3 million (previous year: €8.0 million).
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+148
+Performance Share Plan
+Grant date
+Exercise price
+Waiting period expires
+Risk-free interest rate
+23.83
+Yield volatility of Deutsche Post shares
+Deutsche Post DHL Group - 2021 Annual Report
+31 August 2025
+58.68
+1 September 2021
+Issue date
+Issue price
+Waiting period expires
+€
+1 September 2016
+28.18
+31 August 2020
+1 September 2017
+34.72
+31 August 2021
+1 September 2018
+31.08
+31 August 2022
+1 September 2019
+28.88
+31 August 2023
+1 September 2020
+37.83
+31 August 2024
+2019 tranche
+27.30
+Alternative programme
+31.77
+145
+used to calculate the allowable profit margin under the amended
+provisions of the 2015 Post-Entgeltregulierungsverordnung
+(PEntgV - Postal Rate Regulation Act) was not in compliance
+with the provisions of the Postgesetz (PostG - German Postal
+Act) regarding the authority to issue statutory instruments. The
+German government eliminated this formal deficiency estab-
+lished by the German Federal Administrative Court by way of
+an amendment to the Postgesetz (German Postal Act) entering
+into force in March 2021 in addition to other amendments. As a
+result, previous regulatory practice can continue by and large.
+Possible negative effects on Deutsche Post of these court
+rulings and the proceedings underway on pricing approvals by
+the German federal network agency cannot be ruled out.
+Since 1 July 2010, as a result of the revision of the relevant
+tax exemption provisions, the VAT exemption has only applied
+to those specific universal services in Germany that are not sub-
+ject to individually negotiated agreements or provided on special
+terms (discounts etc.). Deutsche Post AG and the tax authorities
+hold different opinions on the VAT treatment of certain products.
+In the interest of resolving these issues, proceedings have been
+initiated by Deutsche Post AG at the tax court with jurisdiction
+in this matter, > note 44.
+On 30 June 2014, DHL Express France received a state-
+ment of objections from the French competition authority al-
+leging anti-competitive conduct with regard to fuel surcharges
+and price fixing in the domestic express business, a business
+which had been divested in June 2010. The French competition
+authority made its decision on 15 December 2015. The decision
+to fine DHL was confirmed by the Paris Court of Appeals on
+19 July 2018 and DHL Express France is appealing it before the
+Cour de cassation (Supreme Court). On 22 September 2021, the
+Cour de Cassation decided to reject DHL Express France's appeal
+and all other appeals. All legal remedies have therefore been
+exhausted and the case is considered closed.
+In view of the ongoing or announced legal proceedings men-
+tioned above, no further details are given on their presentation
+in the financial statements.
+46 Share-based payment
+Deutsche Post DHL Group - 2021 Annual Report
+Assumptions regarding the price of Deutsche Post AG's shares
+and assumptions regarding employee fluctuation are taken into
+account when measuring the value of share-based payments for
+executives. All assumptions are reviewed on a quarterly basis.
+The staff costs are recognised pro rata in profit or loss to reflect
+the services rendered as consideration during the vesting period
+(lock-up period). In the financial year, a total of €184 million
+(previous year: €132 million) was recognised for share-based
+payments, €105 million (previous year: €59 million) of which
+were cash-settled and €79 million (previous year: €73 million)
+of which were equity-settled.
+(Share Matching Scheme)
+Under the share-based payment system for executives (Share
+Matching Scheme), certain executives receive part of their var-
+iable remuneration for the financial year in the form of shares
+of Deutsche Post AG in the following year (deferred incentive
+shares). All Group executives can specify an increased equity
+component individually by converting a further portion of their
+variable remuneration for the financial year (investment shares).
+After a four-year lock-up period during which the executive must
+be employed by the Group, they again receive the same number
+of Deutsche Post AG shares (matching shares). Assumptions are
+made regarding the conversion behaviour of executives with
+respect to their relevant bonus portion. Share-based payment
+arrangements are entered into each year, with 1 December of
+the respective year and 1 April of the following year being the
+grant dates for each year's tranche. Whereas incentive shares
+and matching shares are classified as equity-settled share-based
+payments, investment shares are compound financial instru-
+ments and the debt and equity components must be measured
+separately. However, in accordance with IFRS 2.37, only the
+debt component is measured due to the provisions of the Share
+Matching Scheme. The investment shares are therefore treated
+as cash-settled share-based payments.
+Of the expenses under the Share Matching Scheme,
+€50 million (previous year: €46 million) was attributable to
+equity-settled share-based payments, and €54 million related
+to cash-settled share-based payments for investment shares
+(previous year: €35 million), all of which were unvested as at
+31 December 2021.
+Additional information on granting and settlement of these
+rights can be found in > note 33 and 34.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Share Matching Scheme
+Grant date of incentive shares and associated matching shares
+46.1 Share-based payment for executives
+Grant date of matching shares awarded for investment shares
+Term
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Moreover, the aforementioned CEP association had pre-
+viously filed an action against the pricing approvals granted
+on 4 December 2015 for the years from 2016 to 2018. The
+German Federal Administrative Court ruled on that action on
+27 May 2020. The only one of the approvals that the court
+deemed unlawful concerned the increase in the price of a
+standard domestic letter to €0.70. The ruling is only directly
+applicable to the plaintiff. The amount in dispute was set by the
+German Federal Administrative Court at a mid-range, four-digit
+euro amount. To date, the plaintiff had not asserted any claims
+for a refund of postal charges for the period from 2016 to 2018.
+Yield volatility of Dow Jones EURO STOXX 600 Index
+2021
+132
+96
+13
+8
+Liabilities from litigation risks
+Other contingent liabilities
+Total
+183
+213
+In the grounds for its decision, the court stated that the
+pricing approval in question was unlawful because the method
+440
+732
+823
+Other contingent liabilities also include a potential obligation to
+make settlement payments in the United States, which had arisen
+in 2014 mainly as a result of a change in the estimated settlement
+payment obligations assumed in the context of the restructuring
+measures in the United States, and other tax-related obligations.
+Other financial obligations such as the purchase obligation
+for investments in non-current assets amounted to €1,190 mil-
+lion (previous year: €1,582 million). They relate primarily to the
+delivery of additional cargo aircraft from the contract concluded
+with Boeing in December 2020.
+45 Litigation
+Many of the postal services rendered by Deutsche Post AG and
+its subsidiaries (particularly the Post & Parcel division) are sub-
+ject to sector-specific regulation by the German federal network
+agency (Bundesnetzagentur). The Bundesnetzagentur approves
+or reviews prices, formulates the terms of downstream access,
+has special supervisory powers to combat market abuse and
+guarantees the provision of universal postal services. This general
+regulatory risk could lead to a decline in revenue and earnings in
+the event of negative decisions.
+Revenue and earnings risk can arise in particular from
+the price cap procedure used by the German federal net-
+work agency to determine the rates for individual pieces of
+letter mail. The approval of the rates approved in the price
+cap procedure for the period from 1 July 2019 to 31 Decem-
+ber 2021 was issued by the German federal network agency
+on 12 December 2019.
+In its capacity as a consumer of postal services, a Ger-
+man courier, express and parcel (CEP) association and other
+customers and providers of postal services filed an action with
+the Cologne Administrative Court against the pricing approvals
+granted on 12 December 2019. On 4 January 2021, the Cologne
+Administrative Court ruled that the CEP association's action
+suspends the effect of the German federal network agency's
+decision to raise prices for standard, compact, large format
+(Großbrief) and extra-large format (Maxibrief) letters within
+Germany. The ruling only applies to the CEP association. The
+proceedings in the main action are still pending.
+470
+End of term
+Share price at grant date (fair value)
+months
+52
+March 2021
+March 2022
+June 2023
+March 2024
+March 2025
+52
+March 2026
+52
+Incentive shares and associated matching shares
+29.04
+39.26
+n.a.
+33.29
+40.72
+53.55
+Matching shares awarded for investment shares
+€
+€
+52
+52
+52
+Deutsche Post DHL Group - 2021 Annual Report
+146
+2016 tranche
+2017 tranche
+2018 tranche
+2019 tranche
+2020 tranche
+2021 tranche
+1 December 2016
+1 December 2017
+1 December 2019
+1 December 2020
+1 December 2021
+1 April 2017
+1 April 2018
+1 March 2019
+1 April 2020
+1 April 2021
+1 April 2022
+34.97
+Covariance of Deutsche Post shares to Dow Jones EURO STOXX 600 Index
+REPORTABLE TRANSACTIONS
+Rights outstanding at 1 January 2021
+0
+0
+0
+0
+0
+0
+0
+3
+1
+9
+5
+8
+11
+1
+1
+15
+10
+2620
+3
+205
+1
+5
+Receivables from in-house banking
+Financial liabilities
+Trade payables
+Income¹
+Expenses²
+to the Group via Deutsche Post Immobilien GmbH. These ar-
+rangements led to lease liabilities of €471 million as at 31 De-
+cember 2021 (previous year: €494 million). In the 2021 financial
+year, Deutsche Post Immobilien GmbH extinguished €25 million
+(previous year: €24 million) in lease liabilities and paid €15 million
+(previous year: €16 million) in interest. Deutsche Post Pensions-
+Treuhand GmbH & Co. KG owns 100% of Deutsche Post Pensions-
+fonds AG. Further disclosures on pension funds can be found in
+> note 7 and 37.
+RELATIONSHIPS WITH UNCONSOLIDATED COMPANIES,
+INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
+AND JOINT OPERATIONS
+In addition to the consolidated subsidiaries, the Group has dir-
+ect and indirect relationships with unconsolidated companies,
+investments accounted for using the equity method and joint
+operations deemed to be related parties of the Group in the
+course of its ordinary business activities.
+1
+Transactions were conducted in the 2021 financial year
+with major related parties, resulting in the following items in
+the consolidated financial statements:
+Unconsolidated companies
+2020
+2021
+2020
+2021
+5
+2
+3
+Investments accounted for using
+the equity method
+¹ Relates to revenue and other operating income. 2 Relates to materials expense, staff costs and other operating expenses.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+3
+4
+Termination benefits
+0
+0
+Share-based payment
+19
+45
+Post-employment benefits
+Total
+67
+ཐཱའི།
+BOARD OF MANAGEMENT REMUNERATION
+The remuneration paid to members of the Board of Management
+in the 2021 financial year totalled €15.3 million (previous year:
+€12.6 million). Non-performance-related components (fixed
+and fringe benefits) accounted for €8.6 million (previous year:
+€8.3 million). A total of €4.1 million (previous year: €3.9 million)
+was attributable to the annual bonus paid as a performance-
+related component along with €2.6 million from the 2019
+medium-term component (previous year: €0.4 million from the
+2018 medium-term component). An additional €4.1 million (pre-
+vious year: €3.9 million) of the annual bonus was transferred to
+SHAREHOLDINGS OF THE BOARD OF MANAGEMENT AND
+SUPERVISORY BOARD
+As at 31 December 2021, shares held by the Board of Manage-
+ment and the Supervisory Board of Deutsche Post AG amounted
+to less than 1% of the company's share capital.
+The transactions of Board of Management and Supervisory
+Board members involving securities of the company and notified
+to Deutsche Post AG in accordance with Article 19 of the Market
+Abuse Regulation can be viewed on the company's website.
+Guarantee obligations
+Warranties
+37
+18
+15
+(excluding share-based payment)
+150
+Deutsche Post AG issued letters of commitment in the amount of
+€7 million (previous year: €4 million) for these companies. Of this
+amount, €1 million (previous year: €1 million) was attributable
+to investments accounted for using the equity method, €6 mil-
+lion (previous year: €1 million) to joint operations and €0 million
+(previous year: €2 million) to unconsolidated companies.
+47.2 Related-party disclosures (individuals)
+In accordance with IAS 24, the Group also reports on transactions
+between the Group and related parties or members of their fam-
+ilies. Related parties are defined as the Board of Management,
+the Supervisory Board and the members of their families. There
+were no reportable transactions or legal transactions involving
+these related parties in the 2021 financial year. In particular, the
+company granted no loans to these related parties.
+The remuneration of key management personnel of the
+Group requiring disclosure under IAS 24 comprises the remu-
+neration of the active members of the Board of Management and
+the Supervisory Board.
+The active members of the Board of Management and the
+Supervisory Board were remunerated as follows:
+€m
+2020
+2021
+The employee representatives on the Supervisory Board em-
+ployed by the Group also receive their normal salaries for their
+work in the company in addition to the aforementioned bene-
+fits for their work on the Supervisory Board. These salaries are
+determined at levels that are commensurate with the salary
+appropriate for the function or work performed in the company.
+Post-employment benefits are recognised as the service
+cost resulting from the pension provisions for active members of
+the Board of Management. The corresponding liability amounted
+to €42 million at the reporting date (previous year: €44 million).
+Starting in 2008, newly appointed Board of Management
+members began receiving a defined contribution pension com-
+mitment. This entails the company crediting an annual amount
+totalling 35% of each Board of Management member's base
+salary to a virtual pension account. This capital bears interest
+until eligibility to receive benefits begins. The pension benefit
+is paid out as capital in the amount of the accumulated pension
+balance. Pension eligibility is triggered at the earliest when re-
+tirement age is reached, in the event of invalidity during the term
+of office, or upon death. When eligible for the pension benefit, the
+beneficiary may choose an annuity option. The Chairman of the
+Board of Management is still entitled to a legacy commitment in
+the form of a direct pension based on his final salary.
+47.3 Remuneration disclosures in accordance with the HGB
+the medium-term component in 2021 and will be paid out in
+2024. The condition for that payout is that the EAC (EBIT after
+asset charge) sustainability target is met. In the financial year,
+the Board of Management members also received a total of
+862,272 SARS (previous year: 816,498 SARS), which at the is-
+sue date were valued at €8.3 million (previous year: €8.0 million).
+FORMER MEMBERS OF THE BOARD OF MANAGEMENT
+Benefits paid to former members of the Board of Management or
+their surviving dependants amounted to €5.2 million (previous
+year: €8.9 million). The defined benefit obligation (DBO) for cur-
+rent pensions calculated under IFRSS was €92 million (previous
+year: €105 million).
+REMUNERATION OF THE SUPERVISORY BOARD
+The total remuneration of the Supervisory Board in the 2021
+financial year amounted to €2.6 million; as in the prior year,
+€2.4 million of this amount was also attributable to a fixed com-
+ponent and €0.2 million to attendance allowances.
+Further information on the itemised remuneration of the Board
+of Management and the Supervisory Board can be found no later
+than at the time the Annual General Meeting is convened in the
+remuneration report published on the company's website.
+Short-term employee benefits
+Loans
+Number
+Trade receivables
+The real estate with a fair value of €1,653 million (previous year:
+€1,563 million) - which can be offset as plan assets - of which
+Deutsche Post Pensions-Treuhand GmbH & Co. KG, Deutsche Post
+Altersvorsorge Sicherung e. V. & Co. Objekt Gronau KG and
+Deutsche Post Grundstücks-Vermietungsgesellschaft beta mbH
+Objekt Leipzig KG are the legal owners, is let almost exclusively
+3.07%
+23.03%
+22.39%
+21.38%
+24.89%
+26.49%
+16.34%
+16.29%
+3.57%
+14.79%
+17.33%
+2.78%
+2.66%
+2.21%
+3.05%
+3.25%
+2,631,486
+3,042,048
+16.62%
+3,417,264
+1 September 2021
+58.68
+31 August 2025
+-0.80%
+31 August 2024
+Rights granted
+Rights lapsed
+Rights settled at the end of the waiting period
+Rights outstanding at 31 December 2021
+2017 tranche
+1 September 2017
+2018 tranche
+1 September 2018
+2019 tranche
+1 September 2019
+2020 tranche
+1 September 2020
+-0.72%
+2021 tranche
+€31.08
+€28.88
+€37.83
+3.31%
+31 August 2021
+-0.48%
+31 August 2022
+-0.39%
+3.70%
+31 August 2023
+-0.90%
+3.98%
+€34.72
+2,645,394
+0
+0
+All companies that are controlled by the Group or with which a
+joint arrangement exists, or over which the Group can exercise
+significant influence, are recorded in the list of shareholdings.
+Deutsche Post AG maintains a variety of relationships with
+the Federal Republic of Germany (Federal Republic) and other
+companies controlled by the Federal Republic of Germany.
+The Federal Republic is a customer of Deutsche Post AG
+and as such uses the company's services. Deutsche Post AG has
+direct business relationships with the individual public author-
+ities and other government agencies as independent individual
+customers. The services provided for these customers are insig-
+nificant in respect of Deutsche Post AG's overall revenue.
+RELATIONSHIPS WITH KFW
+KfW supports the Federal Republic in continuing to privatise
+companies such as Deutsche Post AG or Deutsche Telekom AG.
+In 1997, KfW, together with the Federal Republic, developed a
+"placeholder model" as a tool to privatise government-owned
+companies. Under this model, the Federal Republic sells all or
+part of its investments to KfW with the aim of fully privatising
+these state-owned companies. On this basis, KfW has pur-
+chased shares of Deutsche Post AG from the Federal Republic
+in several stages since 1997 and executed various capital mar-
+ket transactions using these shares. KfW's current interest in
+Deutsche Post AG's share capital is 20.49%. Deutsche Post AG
+is thus considered to be an associate of the Federal Republic.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+149
+47.1 Related-party disclosures (companies and Federal
+Republic of Germany)
+RELATIONSHIPS WITH THE BUNDESANSTALT FÜR POST UND
+TELEKOMMUNIKATION (BANST PT)
+RELATIONSHIPS WITH THE GERMAN FEDERAL MINISTRY OF
+FINANCE
+Deutsche Post AG entered into an agreement with the German
+Federal Ministry of Finance dated 30 January 2004 relating to
+the transfer of civil servants to German federal authorities. Under
+this agreement, civil servants are seconded, with the aim of trans-
+ferring them, initially for 6 months, and are then transferred per-
+manently if they successfully complete their probation. Once a
+permanent transfer is completed, Deutsche Post AG contributes
+to the cost incurred by the Federal Republic by paying a flat fee.
+In 2021, this initiative resulted in 8 permanent transfers (previ-
+ous year: 39) and 4 secondments with the aim of a permanent
+transfer in 2022 (previous year: 5).
+RELATIONSHIPS WITH THE GERMAN FEDERAL
+EMPLOYMENT AGENCY
+Deutsche Post AG and the German Federal Employment Agency
+entered into an agreement dated 12 October 2009 relating to
+the transfer of Deutsche Post AG civil servants to the Federal
+Employment Agency. In 2021, this initiative resulted in 1 perma-
+nent transfer (previous year: 4).
+RELATIONSHIPS WITH DEUTSCHE BAHN AG AND ITS SUBSIDIARIES
+Deutsche Bahn AG is wholly owned by the Federal Republic. Ow-
+ing to this control relationship, Deutsche Bahn AG is a related
+party to Deutsche Post AG. Deutsche Post DHL Group has vari-
+ous business relationships with the Deutsche Bahn Group. These
+mainly consist of transport service agreements.
+RELATIONSHIPS WITH PENSION FUNDS
+The Bundesanstalt für Post und Telekommunikation (BAnst PT)
+is a government agency and falls under the technical and legal
+supervision of the German Federal Ministry of Finance. The BAnst
+PT continues to manage the social facilities such as the postal
+civil servant health insurance fund, the recreation programme,
+the Postbeamtenversorgungskasse (PVK - Postal civil servant
+pension fund), the Versorgungsanstalt der Deutschen Bundespost
+(VAP Deutsche Bundespost institution for supplementary re-
+tirement pensions) and the welfare service for Deutsche Post AG,
+Deutsche Postbank AG and Deutsche Telekom AG. Tasks
+are performed on the basis of agency agreements. In 2021,
+Deutsche Post AG was invoiced for €142 million (previous year:
+€143 million) in instalment payments relating to services pro-
+vided by the BAnst PT. Further disclosures on the PVK and the
+VAP can be found in > note 7 and 37.
+47 Related-party disclosures
+In the consolidated financial statements as at 31 Decem-
+ber 2021, €3 million was appropriated to capital reserves for
+the purposes of the ESP, with an equal amount recognised in
+staff costs.
+The shares acquired under the ESP are subject to a two-
+year lock-up period.
+0
+0
+0
+47,400
+2,584,086
+89,646
+90,600
+49,200
+1,774,848
+4,728
+0
+0
+0
+0
+0
+2,952,402
+3,326,664
+2,596,194
+1,770,120
+46.4 Employee Share Plan (ESP) for executives
+The Employee Share Plan (ESP) was introduced for another se-
+lected group of executives starting on 1 September 2021. Partici-
+pation in the ESP is voluntary. Executives participating in the ESP
+can acquire shares of Deutsche Post AG at a discount of 25% from
+the market price, up to a cap of €10,000 or €15,000, depending
+on their level. The ESP is offered quarterly. Prior to every savings
+period, the participating executives can choose the share of their
+remuneration they wish to invest in the ESP during the upcoming
+three-month savings period. At the beginning of the following
+quarter, executives receive shares at a discount of 25% from the
+market price.
+€m
+2020
+1
+Contingent liabilities
+1
+1
+1
+Earn-out obligation
+Trading derivatives
+Derivatives designated as hedges
+Current financial liabilities
+1
+1
+1
+1
+1
+1
+1
+53
+1
+1
+1
+1
+348
+n.a.
+383
+383
+n.a.
+Liabilities at fair value through profit or loss
+54
+53
+54
+54
+13
+13
+13
+13
+Non-current financial liabilities³
+1
+54
+348
+53
+12
+0
+0
+Not IFRS 7
+5,076
+n.a.
+6,029
+n.a.
+Other non-current liabilities
+289
+n.a.
+274
+n.a.
+Other current liabilities
+TOTAL EQUITY AND LIABILITIES
+4,787
+31,870
+0
+0
+15
+15
+12
+12
+12
+Earn-out obligation
+Trading derivatives
+38
+38
+53
+38
+12
+12
+12
+12
+Derivatives designated as hedges
+15
+15
+38
+16,335
+Other current liabilities²
+9,556
+IFRS 9
+outside
+IFRS 9¹
+IFRS 7 fair
+value Level 1 Level 2 Level 3
+Carrying
+amount
+scope of
+outside
+IFRS 7 fair
+IFRS 9
+IFRS 9¹
+value Level 1 Level 2 Level 3
+EQUITY AND LIABILITIES
+Liabilities measured at cost
+Non-current financial liabilities³
+26,740
+15,850
+16,281
+amount
+scope of
+Carrying
+within the scope of IFRS 9
+€m
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+141
+Financial
+instruments
+31 December 2020
+Other non-current liabilities
+Other
+financial
+Level classification
+financial instruments
+within the scope of IFRS 9
+31 December 2021
+Financial
+instruments
+Other
+financial
+within the instruments
+Level classification
+financial instruments
+within the instruments
+n.a.
+39
+10,459
+8,638
+30
+30
+Current financial liabilities²
+3,194
+1,373
+1,821
+n.a.
+3,271
+1,307
+1,964
+Trade payables²
+7,309
+7,309
+n.a.
+9,556
+30
+30
+39
+39
+7,861
+7,822 7,268
+7,268
+593
+29,853
+18,048
+11,805
+7,343
+7,212
+39
+6,689
+554
+16,613
+6,772
+9,841
+7,313
+6,689
+623
+653
+10,459
+n.a.
+5,755
+Derivative financial liabilities
+Trade payables
+Funds
+As at 31 December 2020
+Derivative financial liabilities
+Trade payables
+Funds
+Gross amount of
+liabilities
+Assets and liabilities not offset
+in the balance sheet
+Gross amount of Recognised net amount
+assets offset
+of liabilities offset
+Assets that do not
+meet offsetting criteria
+Collateral received
+Total
+13
+0
+13
+As at 31 December 2021
+€m
+Offsetting - liabilities
+8,970
+96
+0
+24
+18
+0
+6
+Trade receivables
+Funds
+9,052
+12
+67
+0
+15
+715
+619
+96
+0
+0
+8,985
+24
+0
+110
+0
+7,309
+619
+619
+0
+0
+0
+0
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+144
+To hedge cash flow and fair value risks, Deutsche Post AG enters
+into financial derivative transactions with a large number of
+financial services institutions. These contracts are subject to a
+standardised master agreement for financial derivative trans-
+actions. This agreement provides for a conditional right of offset,
+resulting in the recognition of the gross amount of the financial
+derivative transactions at the reporting date. The conditional
+right of offset is presented in the tables.
+Settlement processes arising from services related to
+postal deliveries are subject to the Universal Postal Convention
+and the Interconnect Remuneration Agreement - Europe (IRA-E).
+These agreements, particularly the settlement conditions, are
+binding on all public postal operators in respect of the specified
+contractual arrangements. Imports and exports between the
+parties to the agreement during a calendar year are summarised
+in an annual statement of account and presented on a net basis
+in the final annual statement. Receivables and payables covered
+by the Universal Postal Convention and the IRA-E agreement are
+presented on a net basis at the reporting date. In addition, funds
+are presented on a net basis if a right of offset exists in the normal
+course of business. The tables show the receivables and payables
+before and after offsetting.
+n.a.
+7,915
+44 Contingent liabilities and other financial obligations
+In addition to provisions and liabilities, the Group has contingent
+liabilities and other financial obligations. The contingent liabili-
+ties are broken down as follows:
+0
+7,309
+67
+7,376
+9,556
+18
+67
+9,471
+462
+462
+0
+1
+0
+0
+54
+0
+54
+18
+0
+36
+0
+Derivative financial assets
+9,666
+0
+Net gains and losses by measurement category
+€m
+Net gains/losses on financial assets
+Debt instruments at amortised cost¹
+Net gains (+)/losses (-) recognised in profit or loss
+Debt instruments at fair value through profit or loss
+(FVTPL)
+Net gains (+)/losses (-) recognised in profit or loss
+Net gains/losses on financial liabilities
+Debt instruments at fair value through profit or loss
+(FVTPL)
+Net gains (+)/losses (-) recognised in the income
+statement
+There were no Level 3 financial assets or liabilities to report.
+As in the previous year, no financial instruments were trans-
+ferred between levels in the 2021 financial year.
+Debt instruments at amortised cost
+Only effects from impairment losses are listed.
+2020
+2021
+-176
+-195
+34
+25
+Net gains (+)/losses (-) recognised in the income
+statement
+-41
+In addition to financial assets and financial liabilities meas-
+ured at amortised cost, commodity, interest rate and currency
+derivatives are reported under Level 2. The fair values of assets
+measured at amortised cost are determined using the multiplier
+method, amongst other things. The fair values of the derivatives
+are measured on the basis of discounted expected future cash
+flows, taking into account forward rates for currencies, inter-
+est rates and commodities (market approach). For this purpose,
+price quotations observable in the market (exchange rates,
+interest rates and commodity prices) are imported from stan-
+dard market information platforms into the treasury management
+system. The price quotations reflect actual transactions involving
+similar instruments on an active market. All significant inputs
+used to measure derivatives are observable in the market.
+IFRS 13 requires financial assets to be assigned to the ap-
+propriate level of the fair value hierarchy:
+n.a.
+7,268
+88
+647
+35,895
+18,061
+11,805
+Level 1 comprises equity and debt instruments measured at
+fair value and debt instruments measured at amortised cost whose
+fair values can be determined based on quoted market prices.
+7,356 6,689
+1 Relates to lease receivables or liabilities.
+2 The fair value is assumed to be equal to the carrying amount (IFRS 7.29a). Levels are not disclosed for these financial instruments.
+3 The Deutsche Post AG and Deutsche Post Finance B.V. bonds included in non-current financial liabilities are carried at amortised cost. Where required, the carrying amounts of unwound interest rate swaps were adjusted. The bonds are therefore not recognised fully at either
+fair value or amortised cost. The convertible bond issued by Deutsche Post AG in December 2017 had a fair value of €1,200 million as at the reporting date. The fair value of the debt component at the reporting date was €1,002 million.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+142
+If there is an active market for a financial instrument (e.g. a stock
+exchange), its fair value is determined by reference to the market
+or quoted exchange price at the reporting date. If no fair value
+is available in an active market, quoted market prices for similar
+instruments or recognised valuation models are used to deter-
+mine fair value.
+666
+-32
+The following table documents the net gains and losses of
+the categories of financial instruments:
+0
+69
+0
+69
+12
+0
+0
+11,793
+Total
+110
+12
+24
+11,647
+550
+0
+462
+88
+11,683
+Collateral received
+57
+€m
+The following tables show the impact of netting agreements
+based on master netting arrangements or similar agreements on
+financial assets and financial liabilities as at the reporting date:
+in the balance sheet
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Deutsche Post DHL Group - 2021 Annual Report
+143
+Offsetting - assets
+As at 31 December 2021
+The net gains and losses mainly include the effects of fair
+value measurement, impairment and disposals of financial in-
+struments. Dividends and interest are not taken into account
+for the financial instruments measured at fair value through
+profit or loss. Interest income and expenses and expenses from
+commission agreements relating to financial instruments mea-
+sured at amortised cost are recognised separately in the income
+statement.
+As at 31 December 2020
+Gross amount of
+assets
+Assets and liabilities not offset
+Gross amount of
+liabilities offset
+Recognised net amount
+of assets offset
+Liabilities that do not
+meet offsetting criteria
+Derivative financial assets
+Trade receivables
+Funds
+Є CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT AUDITOR'S REPORT
+153
+Deutsche Post DHL Group - 2021 Annual Report
+Basis for the audit opinions
+Tim Scharwath
+Deutsche Post DHL Group - 2021 Annual Report
+INDEPENDENT
+AUDITOR'S REPORT
+152
+To Deutsche Post AG, Bonn
+pliance with these requirements, give a true and fair view of
+the assets, liabilities and financial position of the Group as at
+December 31, 2021, and of its financial performance for the
+financial year from January 1 to December 31, 2021, and
+Report on the Audit of the Consolidated
+Financial Statements and of the Group
+Management Report
+Audit opinions
+We have audited the consolidated financial statements of
+Deutsche Post AG, Bonn, and its subsidiaries (the Group), which
+comprise the consolidated statement of financial position as
+at December 31, 2021, the consolidated statement of com-
+prehensive income, consolidated statement of profit or loss,
+consolidated statement of changes in equity and consolidated
+statement of cash flows for the financial year from January 1
+to December 31, 2021, and notes to the consolidated financial
+statements, including a summary of significant accounting
+policies. In addition, we have audited the Group management
+report of Deutsche Post AG, which is combined with the compa-
+ny's management report, for the financial year from January 1
+to December 31, 2021. In accordance with the German legal re-
+quirements, we have not audited the content of those parts of
+the Group management report listed in the "Other information"
+section of our auditor's report.
+In our opinion, on the basis of the knowledge obtained in
+the audit,
+⚫ the accompanying consolidated financial statements com-
+ply, in all material respects, with the IFRSS as adopted by
+the EU and the additional requirements of German commer-
+cial law pursuant to § [Article] 315e Abs. [paragraph] 1 HGB
+[Handelsgesetzbuch: German Commercial Code] and, in com-
+⚫ the accompanying Group management report as a whole pro-
+vides an appropriate view of the Group's position. In all material
+respects, this Group management report is consistent with the
+consolidated financial statements, complies with German legal
+requirements and appropriately presents the opportunities and
+risks of future development. Our audit opinion on the Group
+management report does not cover the content of those parts
+of the Group management report listed in the "Other Informa-
+tion" section of our auditor's report.
+Pursuant to § 322 Abs. 3 Satz [sentence] 1 HGB, we declare that
+our audit has not led to any reservations relating to the legal
+compliance of the consolidated financial statements and of the
+Group management report.
+We conducted our audit of the consolidated financial state-
+ments and of the Group management report in accordance with
+§ 317 HGB and the EU Audit Regulation (No. 537/2014, referred
+to subsequently as "EU Audit Regulation") in compliance with
+German Generally Accepted Standards for Financial Statement
+Audits promulgated by the Institut der Wirtschaftsprüfer [Insti-
+tute of Public Auditors in Germany] (IDW). We performed the
+audit of the consolidated financial statements in supplementary
+compliance with the International Standards on Auditing (ISAs).
+Our responsibilities under those requirements, principles and
+standards are further described in the "Auditor's Responsibili-
+ties for the audit of the consolidated financial statements and of
+the Group management report" section of our auditor's report.
+We are independent of the Group entities in accordance with
+the requirements of European law and German commercial
+and professional law, and we have fulfilled our other German
+John Pearson
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+RESPONSIBILITY STATEMENT
+Melanie Kreis
+⚫it4logistics GmbH
+professional responsibilities in accordance with these require-
+ments. In addition, in accordance with Article 10 (2) point (f) of
+the EU Audit Regulation, we declare that we have not provided
+non-audit services prohibited under Article 5 (1) of the EU Audit
+Regulation. We believe that the audit evidence we have obtained
+is sufficient and appropriate to provide a basis for our audit opin-
+ions on the consolidated financial statements and on the Group
+management report.
+Beraterdienstleistungen mbH
+• Saloodo! GmbH
+• StreetScooter GmbH
+50 Declaration of Conformity with the German Corporate
+Governance Code
+The Board of Management and the Supervisory Board of
+Deutsche Post AG jointly submitted the Declaration of Conform-
+ity with the German Corporate Governance Code for the 2021
+financial year required by Section 161 AktG. This Declaration of
+Conformity can be accessed on the company's website.
+Dr Thomas Ogilvie
+51 Significant events after the reporting date and other
+disclosures
+RESPONSIBILITY
+STATEMENT
+To the best of our knowledge, and in accordance with the ap-
+plicable reporting principles, the consolidated financial state-
+ments give a true and fair view of the assets, liabilities, financial
+position and profit or loss of the Group, and the management
+report of the Group, which is combined with the management
+report of Deutsche Post AG, includes a fair review of the devel-
+opment and performance of the business and the position of the
+Group, together with a description of the principal opportunities
+and risks associated with the expected development of the Group.
+Bonn, 18 February 2022
+Deutsche Post AG
+The Board of Management
+Dr Frank Appel
+Oscar de Bok
+Dr Tobias Meyer
+Ken Allen
+On 3 January 2022, Deutsche Post DHL Group sold the produc-
+tion rights and the complete ownership of the intangible assets
+for the production of StreetScooter electric vans as well as all
+shares in StreetScooter Japan K.K. and StreetScooter Schweiz
+for a purchase price of €100 million to ODIN Automotive S.à.r.L.,
+Luxembourg. As part of the transaction, the Group acquired a
+non-controlling interest in the amount of 10% in ODIN. The sale
+resulted in disposal gains of €88 million to be recognised for the
+2022 financial year. As was decided at the beginning of 2020,
+StreetScooter GmbH, which remains within the Group, will con-
+tinue to serve as a supplier of vehicle parts and batteries for the
+Group and focus on maintaining and repairing the existing fleet.
+Beyond that, there were no reportable events after the
+reporting date.
+Key audit matters in the audit of the consolidated financial
+statements
+⚫ the non-financial statement pursuant to § 289 b Abs. 1 HGB and
+§ 315 b Abs. 1 HGB included in section "non-financial statement"
+of the Group management report
+In our view, the matters of most significance in our audit were
+as follows:
+We satisfied ourselves as to the appropriateness of the
+future cash inflows used in the calculation by, inter alia,
+comparing this data with the current budgets in the three-
+year plan prepared by the executive directors and approved
+by the company's Supervisory Board, and reconciling it
+against general and sector-specific market expectations.
+With the knowledge that even relatively small changes
+in the discount rate can have a material impact on the re-
+coverable amount calculated using this method, we also
+focused our testing on the parameters used to determine
+the discount rate applied, including the weighted average
+cost of capital, and evaluated the company's calculation
+procedure. Due to the materiality of goodwill and the fact
+that its measurement also depends on economic conditions
+which are outside of the company's sphere of influence,
+we carried out our own additional sensitivity analyses and
+found that the respective goodwill is sufficiently covered
+by the discounted future cash inflows.
+Overall, the measurement parameters and assump-
+tions used by the executive directors to be reproduceable.
+The company's disclosures regarding goodwill are con-
+tained in note 22 of the notes to the consolidated financial
+statements.
+2
+Pension obligations and plan assets
+In the consolidated financial statements of Deutsche Post AG
+a total of EUR 4.2 billion is reported under the balance
+sheet item "Provisions for pensions and similar obliga-
+tions". As a result of pension scheme surpluses in some
+defined benefit plans, pension assets of EUR 0.4 billion are
+reported under the balance sheet item “Other non-current
+assets". The net pension provisions of EUR 3.8 billion were
+calculated on the basis of the present value of the obliga-
+tions amounting to EUR 18.5 billion, less the plan assets
+of EUR 14.7 billion, which were measured at fair value.
+The obligations from defined benefit pension plans were
+measured using the projected unit credit method in ac-
+cordance with IAS 19. This requires in particular that as-
+sumptions are made as to the long-term salary and pen-
+sion trend as well as average life expectancy. Furthermore,
+the discount rate must be determined as of the balance
+sheet date by reference to the yield on high-quality cor-
+porate bonds with matching currencies and consistent
+terms. Changes to these measurement assumptions are
+recognized directly in equity as actuarial gains or losses.
+Changes in the financial measurement parameters and
+experience adjustments resulted in actuarial gains of
+EUR 1.3 billion. The plan assets are measured at fair value,
+which in turn involves making estimates that are subject
+to estimation uncertainties. Deviations from the planned
+development of the fair value of the plan assets are also
+recognized directly in equity. These deviations resulted in
+gains of EUR 0.7 billion.
+In our view, these matters were of particular signifi-
+cance, as the measurement of the pension obligations and
+plan assets is to a large extent based on the estimates and
+assumptions made by the company's executive directors.
+With the knowledge that estimated values bear an increased
+risk of accounting misstatements and that the executive
+directors' measurement decisions have a direct and signif-
+icant effect on the consolidated financial statements, we
+assessed the appropriateness of the values adopted, in
+particular the measurement parameters used in the cal-
+culation of the pension provisions, inter alia on the basis
+of actuarial reports made available to us and taking into
+account the expert knowledge of our internal specialists
+for pension valuations. Our evaluation of the fair values of
+plan assets was in particular based on bank confirmations
+submitted to us, as well as other statements of assets and
+real estate appraisals.
+On the basis of our audit procedures, we were able to
+satisfy ourselves that the estimates and assumptions made
+by the executive directors were sufficiently documented
+and supported to justify the recognition and measurement
+of the material pension provisions.
+This matter was of particular significance in our audit,
+because the result of this measurement depends to a large
+extent on the estimation of future cash inflows by the com-
+pany's executive directors and the discount rate used, and
+is therefore subject to considerable uncertainty.
+The company's disclosures relating to provisions for pen-
+sions and similar obligations as well as pension assets are
+contained in note 37 of the notes to the consolidated finan-
+cial statements.
+The executive directors are responsible for the other informa-
+tion. The other information comprises the following non-audited
+parts of the Group management report:
+the statement on corporate governance pursuant to § 289 f
+HGB and § 315 d HGB included in section "governance" of the
+Group management report
+The other information comprises further all remaining parts
+of the annual report - excluding cross-references to external
+information - with the exception of the audited consolidated fi-
+nancial statements, the audited Group management report and
+our auditor's report.
+Є CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT AUDITOR'S REPORT
+Deutsche Post DHL Group - 2021 Annual Report
+155
+⚫ interServ Gesellschaft für Personal- und
+Our audit opinions on the consolidated financial state-
+ments and on the Group management report do not cover the
+other information, and consequently we do not express an audit
+opinion or any other form of assurance conclusion thereon.
+Other information
+Key audit matters are those matters that, in our professional
+judgment, were of most significance in our audit of the consoli-
+dated financial statements for the financial year from January 1
+to December 31, 2021. These matters were addressed in the
+context of our audit of the consolidated financial statements as
+a whole, and in forming our audit opinion thereon; we do not
+provide a separate audit opinion on these matters.
+reported equity. Goodwill is tested for impairment by the
+company on an annual basis or if there are indications that
+goodwill may be impaired. The impairment test of goodwill
+is based on the recoverable amount, which is determined
+by applying a measurement model using the discounted
+cash flow method.
+(2)
+1
+2
+Recoverability of goodwill
+Pension obligations and plan assets
+Our presentation of these key audit matters has been structured
+in each case as follows:
+Matter and issue
+(1)
+2
+(3)
+Audit approach and findings
+(3)
+1
+(1)
+Hereinafter we present the key audit matters:
+Recoverability of goodwill
+In the consolidated financial statements of Deutsche Post AG,
+goodwill amounting to EUR 11.4 billion is reported under
+the balance sheet item “Intangible assets", representing
+approximately 18% of total assets and 58% of the Group's
+Є CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT AUDITOR'S REPORT
+Deutsche Post DHL Group - 2021 Annual Report
+154
+Reference to further information
+• Gerlach Zolldienste GmbH
+Other services¹
+• Erste Logistik Entwicklungsgesellschaft MG GmbH
+⚫ Danzas Deutschland Holding GmbH
+0
+⚫ Deutsche Post Adress Beteiligungsgesellschaft mbH
+0
+• Deutsche Post Assekuranz Vermittlungs GmbH
+11
+• Deutsche Post Beteiligungen Holding GmbH
+• Deutsche Post Customer Service Center GmbH
+The audit services category includes the fees for auditing the
+consolidated financial statements and for auditing the annual
+financial statements prepared by Deutsche Post AG and its
+German subsidiaries. The fees for reviewing the interim reports,
+support by auditors in connection with implementing new ac-
+counting requirements and the fees for voluntary audits beyond
+the statutory audit engagement, such as audits of the internal
+control system (ICS), are also reported in this category.
+Other assurance services related in particular to attestation
+reports relating to the internal control system. Tax advisory ser-
+vices were attributable in particular to support during tax audits
+conducted by the tax authorities. Other services were comprised
+mainly of general training sessions (workshops) in areas outside
+of accounting.
+⚫ Deutsche Post DHL Beteiligungen GmbH
+• Deutsche Post DHL Corporate Real Estate
+Management GmbH & Co. Logistikzentren KG
+⚫ Deutsche Post DHL Express Holding GmbH
+• Deutsche Post DHL Real Estate Deutschland GmbH
+(formerly: Deutsche Post DHL Corporate Real Estate
+Management GmbH)
+• Deutsche Post DHL Research and Innovation GmbH
+• Deutsche Post Dialog Solutions GmbH
+• Deutsche Post Direkt GmbH
+1
+• CSG.TS GmbH
+10
+• CSG GmbH
+In connection with our audit, our responsibility is to read the
+other information mentioned above and, in so doing, to consider
+whether the other information
+Deutsche Post DHL Group - 2021 Annual Report
+151
+48 Auditing fee
+The fee for the auditing services provided by Pricewaterhouse-
+Coopers GmbH Wirtschaftsprüfungsgesellschaft amounted to
+€11 million in the 2021 financial year and was recognised as an
+expense.
+Auditing fee
+€m
+Audit services
+• Deutsche Post E-POST Solutions GmbH
+Other assurance services
+Total
+1 Rounded below €1 million.
+49 Exemptions under the HGB
+For the 2021 financial year, the following German subsidiaries
+have exercised the simplification options under Section 264(3)
+HGB or Section 264b HGB and, if applicable, Section 291 HGB:
+• Agheera GmbH
+• Albert Scheid GmbH
+• ALTBERG GmbH
+• Betreibergesellschaft Verteilzentrum GmbH
+2021
+Tax advisory services¹
+• Deutsche Post Expansion GmbH
+• Deutsche Post Fleet GmbH
+• Deutsche Post Immobilien GmbH
+⚫ DHL Global Event Logistics GmbH
+(formerly: DHL Trade Fairs & Events GmbH)
+⚫ DHL Global Forwarding GmbH
+⚫ DHL Global Forwarding Management GmbH
+• DHL Global Management GmbH
+• DHL Home Delivery GmbH
+⚫ DHL Hub Leipzig GmbH
+⚫ DHL International GmbH
+⚫ DHL Freight GmbH
+• DHL Paket GmbH
+• DHL Solutions GmbH
+• DHL Sorting Center GmbH
+• DHL Supply Chain (Leipzig) GmbH
+• DHL Supply Chain Management GmbH
+• DHL Supply Chain Operations GmbH
+(formerly: DHL Fashion Retail Operations GmbH)
+• DHL Supply Chain VAS GmbH
+• Erste End of Runway Development Leipzig GmbH
+• DHL Solutions Fashion GmbH
+• European Air Transport Leipzig GmbH
+• DHL Freight Germany Holding GmbH
+• DHL Express Network Management GmbH
+• Deutsche Post InHaus Services GmbH
+• Deutsche Post Investments GmbH
+• Deutsche Post IT Services GmbH
+⚫ Deutsche Post IT Services (Berlin) GmbH
+• Deutsche Post Mobility GmbH
+• Deutsche Post Shop Essen GmbH
+• Deutsche Post Shop Hannover GmbH
+• Deutsche Post Shop München GmbH
+⚫ DHL FoodLogistics GmbH
+• Deutsche Post Vermarktungs GmbH
+⚫ DHL 2-Mann-Handling GmbH
+• DHL Airways GmbH
+• DHL Automotive GmbH
+• DHL Automotive Offenau GmbH
+• DHL Consulting GmbH
+• DHL Delivery GmbH
+⚫ DHL Express Customer Service GmbH
+• DHL Express Germany GmbH
+• Deutsche Post Zahlungsdienste GmbH
+⚫ is materially inconsistent with the consolidated financial state-
+ments, with the Group management report disclosures audited in
+terms of content or with our knowledge obtained in the audit, or
+⚫ otherwise appears to be materially misstated.
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Responsibilities of the executive directors and the
+Supervisory Board for the consolidated financial
+statements and the Group management report
+159
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT PRACTITIONER'S REPORT
+The EU Taxonomy Regulation and the Delegated Acts is-
+sued thereunder contain wording and terms that are still subject
+to considerable interpretation uncertainties and for which clar-
+ifications have not yet been published in every case. Therefore,
+the executive directors have disclosed their interpretation of
+the EU Taxonomy Regulation and the Delegated Acts adopted
+thereunder in section “EU Taxonomy" of the Combined Non-
+financial Statement. They are responsible for the defensibility of
+this interpretation. Due to the immanent risk that indeterminate
+legal terms may be interpreted differently, the legal conformity
+of the interpretation is subject to uncertainties.
+This responsibility includes the selection and application
+of appropriate non-financial reporting methods and making as-
+sumptions and estimates about individual non-financial disclo-
+sures of the Company that are reasonable in the circumstances.
+Furthermore, the executive directors are responsible for such
+internal controls as they consider necessary to enable the prepa-
+ration of a Combined Non-financial Statement that is free from
+material misstatement whether due to fraud or error.
+The executive directors of the Company are responsible for
+the preparation of the Combined Non-financial Statement in
+accordance with §§ (Articles) 315c in conjunction with 289c to
+289e HGB ("Handelsgesetzbuch": "German Commercial Code")
+and Article 8 of REGULATION (EU) 2020/852 OF THE EURO-
+PEAN PARLIAMENT AND OF THE COUNCIL of 18 June 2020 on
+establishing a framework to facilitate sustainable investment
+and amending Regulation (EU) 2019/2088 (hereinafter the
+"EU Taxonomy Regulation") and the Delegated Acts adopted
+thereunder, as well as for making their own interpretation of the
+wording and terms contained in the EU Taxonomy Regulation
+and the Delegated Acts adopted thereunder, as set out in section
+"EU Taxonomy" of the Combined Non-financial Statement.
+Responsibility of the Executive Directors
+Not subject to our assurance engagement are the external
+sources of documentation or expert opinions mentioned in the
+Combined Non-financial Statement.
+⚫ performed a limited assurance engagement on all informa-
+tion other than the Indicators in the Combined Non-financial
+Statement.
+•
+If, based on the work we have performed, we conclude that
+there is a material misstatement of this other information, we
+are required to report that fact. We have nothing to report in
+this regard.
+• Number of audits relating to respect for human rights by Cor-
+porate Internal Audit in the sixth paragraph of the section "Re-
+specting human rights"
+• Number of on-site reviews relating to respect for human rights
+in the fourth paragraph of the section "Respecting human
+rights"
+• Number of audits by Corporate Internal Audit in the eighth
+paragraph of the section "Trusted business partner thanks to
+compliance"
+Approval rate for proud of the Group's contribution to society in
+the third paragraph of the section "Partnerships and initiatives"
+Compliance training certification rate in middle and upper man-
+agement 2021 in the seventh paragraph of the section "Trusted
+business partner thanks to compliance"
+о
+°
+⚫ Sickness rate in the fifth paragraph of the section “Occupational
+health and safety"
+• Disclosures in the table "Workplace accident statistics"
+• Share of women in middle and upper management in the third
+paragraph of the section “Diversity is our strength"
+• Disclosures for 2021 in the table "Selected results from the
+Employee Opinion Survey"
+• Share of unplanned employee turnover 2021 in the table
+"Workforce development"
+• Share of female employees 2021 in the table "Workforce
+development"
+• Disclosures for 2021 in the table "Energy consumption in the
+company's own fleet and buildings (Scopes 1 and 2)"
+• Share of electricity from renewable sources in the third para-
+graph of the section "Using sustainable technologies and fuels"
+• GHG efficiency (CEX) in the first paragraph of the section "GHG
+efficiency drops"
+• Disclosures in the chart "GHG emissions by mode of transpor-
+tation"
+• Disclosures for 2021 in the table "GHG emissions (well-to-
+wheel)"
+• Realised Decarbonisation Effects 2021 in the first paragraph of
+the section "GHG emissions above prior-year level"
+Independence and Quality Control of the Audit Firm
+We have complied with the German professional provisions
+regarding independence as well as other ethical requirements.
+We have performed an assurance engagement on the combined
+non-financial statement of Deutsche Post AG, Bonn, (hereinaf-
+ter the "Company") for the period from 1 January to 31 Decem-
+ber 2021 (hereinafter the "Combined Non-financial Statement")
+included in section "Non-financial Statement" of the combined
+management report. In accordance with our engagement we
+have divided the level of assurance to be obtained by us and
+• performed a reasonable assurance engagement on the indicators
+Our audit firm applies the national legal requirements and
+professional standards - in particular the Professional Code
+for German Public Auditors and German Chartered Auditors
+("Berufssatzung für Wirtschaftsprüfer und vereidigte Buch-
+prüfer": "BS WP/VBP") as well as the Standard on Quality Con-
+trol 1 published by the Institut der Wirtschaftsprüfer (Institute
+of Public Auditors in Germany; IDW): Requirements to quality
+control for audit firms (IDW Qualitätssicherungsstandard 1:
+Anforderungen an die Qualitätssicherung in der Wirtschafts-
+prüferpraxis - IDW QS 1) - and accordingly maintains a compre-
+hensive system of quality control including documented policies
+and procedures regarding compliance with ethical requirements,
+professional standards and applicable legal and regulatory
+requirements.
+Our responsibility is to express a conclusion with reasonable as-
+surance on the Indicators disclosed in the Company's Combined
+Non-financial Statement and a limited assurance on all infor-
+mation other than the Indicators in the Combined Non-financial
+Statement based on our assurance engagement.
+160
+Deutsche Post DHL Group - 2021 Annual Report
+ppa. Thomas Groth
+(German Public Auditor)
+Wirtschaftsprüfer
+Hendrik Fink
+PricewaterhouseCoopers GmbH
+Wirtschaftsprüfungsgesellschaft
+Düsseldorf, 18 February 2022
+We draw attention to the fact that the assurance engagement
+was conducted for the Company's purposes and that the report
+is intended solely to inform the Company about the result of the
+assurance engagement. Consequently, it may not be suitable
+for any other purpose than the aforementioned. Accordingly,
+the report is not intended to be used by third parties for mak-
+ing (financial) decisions based on it. Our responsibility is to the
+Company. We do not accept any responsibility to third parties.
+Our assurance opinion is not modified in this respect.
+Restriction of Use
+Based on the assurance procedures performed and evi-
+dence obtained, nothing has come to our attention that causes
+us to believe that all information other than the Indicators in
+the Combined Non-financial Statement of the Company for the
+period from 1 January to 31 December 2021 is not prepared, in
+all material respects, in accordance with §§ 315 c in conjunc-
+tion with 289c to 289e HGB and the EU Taxonomy Regulation
+and the Delegated Acts issued thereunder as well as the inter-
+pretation by the executive directors disclosed in section "EU
+Taxonomy" of the Combined Non-financial Statement. We do
+not express an assurance opinion on the external sources of
+documentation or expert opinions mentioned in the Combined
+Non-financial Statement.
+In our opinion the Indicators disclosed in the Company's Com-
+bined Non-financial Statement for the period from 1 January to
+31 December 2021 have been prepared, in all material respects,
+in accordance with §§ 315 c in conjunction with 289c to 289e
+HGB by the executive directors.
+Assurance Opinion
+CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT PRACTITIONER'S REPORT
+In determining the disclosures in accordance with Article 8 of the
+EU Taxonomy Regulation, the executive directors are required to
+interpret undefined legal terms. Due to the immanent risk that
+undefined legal terms may be interpreted differently, the legal
+conformity of their interpretation and, accordingly, our assur-
+ance engagement thereon are subject to uncertainties.
+In the course of our reasonable assurance engagement part on the
+Indicators disclosed in the Company's Combined Non-financial
+Statement, we have performed the following assurance proce-
+dures and other activities in addition to those described above:
+• Evaluation of the internal control system regarding the Indicators
+• Inspection of processes for the collection, control, analysis and
+aggregation of selected data of different sites of the Company
+on the basis of samples
+• Evaluation of the presentation of the Combined Non-financial
+Statement
+• Inquiries on the relevance of climate-risks
+• Evaluation of the process to identify taxonomy-eligible eco-
+nomic activities and the corresponding disclosures in the Com-
+bined Non-financial Statement
+• Reconciliation of selected disclosures with the corresponding
+data in the consolidated financial statements and group man-
+agement report
+• Analytical procedures on selected disclosures in the Combined
+Non-financial Statement
+• Identification of likely risks of material misstatement in the
+Combined Non-financial Statement
+control system relating to this process and about disclosures
+in the Combined Non-financial Statement
+• Inquiries of the executive directors and relevant employees
+involved in the preparation of the Combined Non-financial
+Statement about the preparation process, about the internal
+• Gain an understanding of the structure of the Company's sus-
+tainability organization and stakeholder engagement
+In the course of our assurance engagement, we have,
+amongst other things, performed the following assurance pro-
+cedures and other activities:
+The procedures performed for the limited assurance engagement
+part are less extensive than those performed for the reasonable
+assurance engagement part, and accordingly a substantially
+lower level of assurance is obtained. The selection of the assur-
+ance procedures is subject to the professional judgement of the
+assurance practitioner.
+• obtain reasonable assurance whether the Indicators disclosed in
+the Company's Combined Non-financial Statement for the pe-
+riod from 1 January to 31 December 2021 have been prepared,
+in all material respects, in accordance with §§ 315 c in conjunc-
+tion with 289c to 289e HGB by the executive directors and
+• obtain limited assurance about whether any matters have
+come to our attention that cause us to believe that all infor-
+mation other than the Indicators in the Company's Combined
+Non-financial Statement, other than the external sources of
+documentation or expert opinions mentioned in the Combined
+Non-financial Statement, are not prepared, in all material re-
+spects, in accordance with §§ 315 c in conjunction with 289c
+to 289e HGB and the EU Taxonomy Regulation and the Dele-
+gated Acts issued thereunder as well as the interpretation by
+the executive directors disclosed in section “EU Taxonomy" of
+the Combined Non-financial Statement.
+We conducted our assurance engagement in accordance
+with International Standard on Assurance Engagements (ISAE)
+3000 (Revised): Assurance Engagements other than Audits or
+Reviews of Historical Financial Information, issued by the IAASB.
+This Standard requires that we plan and perform the assurance
+engagement to
+Responsibility of the Assurance Practitioner
+To Deutsche Post AG, Bonn
+disclosed in the Combined Non-financial Statement (hereafter
+the "Indicators") and
+on a Limited and Reasonable Assurance
+Engagement on Non-financial Reporting
+We have performed assurance work in accordance with § 317
+Abs. 3a HGB to obtain reasonable assurance as to whether the
+rendering of the consolidated financial statements and the Group
+management report (hereinafter the "ESEF documents") con-
+tained in the electronic file DP_AG_KA_KLB_ESEF-2021-12-31.zip
+and prepared for publication purposes complies in all material
+respects with the requirements of § 328 Abs. 1 HGB for the
+electronic reporting format ("ESEF format"). In accordance with
+German legal requirements, this assurance work extends only to
+Assurance opinion
+Report on the assurance on the electronic rendering of the
+consolidated financial statements and the Group management
+report prepared for publication purposes in accordance with
+§ 317 Abs. 3a HGB
+Other legal and regulatory requirements
+From the matters communicated with those charged with
+governance, we determine those matters that were of most sig-
+nificance in the audit of the consolidated financial statements
+of the current period and are therefore the key audit matters.
+We describe these matters in our auditor's report unless law or
+regulation precludes public disclosure about the matter.
+We also provide those charged with governance with a
+statement that we have complied with the relevant independ-
+ence requirements, and communicate with them all relationships
+and other matters that may reasonably be thought to bear on
+our independence, and where applicable, the related safeguards.
+We communicate with those charged with governance regarding,
+among other matters, the planned scope and timing of the audit
+and significant audit findings, including any significant deficien-
+cies in internal control that we identify during our audit.
+risk that future events will differ materially from the prospec-
+tive information.
+• Evaluate the consistency of the Group management report
+with the consolidated financial statements, its conformity with
+German law, and the view of the Group's position it provides.
+• Perform audit procedures on the prospective information pre-
+sented by the executive directors in the Group management
+report. On the basis of sufficient appropriate audit evidence
+we evaluate, in particular, the significant assumptions used
+by the executive directors as a basis for the prospective infor-
+mation, and evaluate the proper derivation of the prospective
+information from these assumptions. We do not express a sep-
+arate audit opinion on the prospective information and on the
+assumptions used as a basis. There is a substantial unavoidable
+• Obtain sufficient appropriate audit evidence regarding the fi-
+nancial information of the entities or business activities within
+the Group to express audit opinions on the consolidated finan-
+cial statements and on the Group management report. We are
+responsible for the direction, supervision and performance of
+the Group audit. We remain solely responsible for our audit
+opinions.
+• Evaluate the overall presentation, structure and content of the
+consolidated financial statements, including the disclosures,
+and whether the consolidated financial statements present the
+underlying transactions and events in a manner that the con-
+solidated financial statements give a true and fair view of the
+assets, liabilities, financial position and financial performance
+of the Group in compliance with IFRSS as adopted by the EU
+and the additional requirements of German commercial law
+pursuant to § 315 e Abs. 1 HGB.
+conclude that a material uncertainty exists, we are required to
+draw attention in the auditor's report to the related disclosures
+in the consolidated financial statements and in the Group man-
+agement report or, if such disclosures are inadequate, to modify
+our respective audit opinions. Our conclusions are based on the
+audit evidence obtained up to the date of our auditor's report.
+However, future events or conditions may cause the Group to
+cease to be able to continue as a going concern.
+156
+Deutsche Post DHL Group - 2021 Annual Report
+Є CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT AUDITOR'S REPORT
+• Conclude on the appropriateness of the executive directors'
+use of the going concern basis of accounting and, based on the
+audit evidence obtained, whether a material uncertainty exists
+related to events or conditions that may cast significant doubt
+on the Group's ability to continue as a going concern. If we
+• Evaluate the appropriateness of accounting policies used by the
+executive directors and the reasonableness of estimates made
+by the executive directors and related disclosures.
+• Obtain an understanding of internal control relevant to the audit
+of the consolidated financial statements and of arrangements
+and measures (systems) relevant to the audit of the Group
+management report in order to design audit procedures that
+are appropriate in the circumstances, but not for the purpose
+of expressing an audit opinion on the effectiveness of these
+systems.
+PricewaterhouseCoopers GmbH has performed a limited as-
+surance engagement on the German version of the combined
+non-financial statement and issued an independent practitioner's
+report in German language, which is authoritative. The following
+text is a translation of the independent practitioner's report.
+We exercise professional judgment and maintain profes-
+sional skepticism throughout the audit. We also:
+§ 317 HGB and the EU Audit Regulation and in compliance with
+German Generally Accepted Standards for Financial Statement
+Audits promulgated by the Institut der Wirtschaftsprüfer (IDW)
+and supplementary compliance with the ISAs will always detect
+a material misstatement. Misstatements can arise from fraud
+or error and are considered material if, individually or in the
+aggregate, they could reasonably be expected to influence the
+economic decisions of users taken on the basis of these consoli-
+dated financial statements and this Group management report.
+is not a guarantee that an audit conducted in accordance with
+Reasonable assurance is a high level of assurance, but
+Auditor's responsibilities for the audit of the consolidated
+financial statements and of the Group management report
+Our objectives are to obtain reasonable assurance about whether
+the consolidated financial statements as a whole are free from
+material misstatement, whether due to fraud or error, and
+whether the Group management report as a whole provides an
+appropriate view of the Group's position and, in all material re-
+spects, is consistent with the consolidated financial statements
+and the knowledge obtained in the audit, complies with the
+German legal requirements and appropriately presents the op-
+portunities and risks of future development, as well as to issue an
+auditor's report that includes our audit opinions on the consoli-
+dated financial statements and on the Group management report.
+The Supervisory Board is responsible for overseeing the
+Group's financial reporting process for the preparation of the
+consolidated financial statements and of the Group management
+report.
+Furthermore, the executive directors are responsible for the
+preparation of the Group management report that, as a whole,
+provides an appropriate view of the Group's position and is, in
+all material respects, consistent with the consolidated financial
+statements, complies with German legal requirements, and ap-
+propriately presents the opportunities and risks of future devel-
+opment. In addition, the executive directors are responsible for
+such arrangements and measures (systems) as they have consid-
+ered necessary to enable the preparation of a Group management
+report that is in accordance with the applicable German legal
+requirements, and to be able to provide sufficient appropriate
+evidence for the assertions in the Group management report.
+addition, they are responsible for financial reporting based on
+the going concern basis of accounting unless there is an inten-
+tion to liquidate the Group or to cease operations, or there is no
+realistic alternative but to do so.
+In preparing the consolidated financial statements, the ex-
+ecutive directors are responsible for assessing the Group's ability
+to continue as a going concern. They also have the responsibility
+for disclosing, as applicable, matters related to going concern. In
+The executive directors are responsible for the preparation of
+the consolidated financial statements that comply, in all material
+respects, with IFRSS as adopted by the EU and the additional
+requirements of German commercial law pursuant to § 315 e
+Abs. 1 HGB and that the consolidated financial statements, in
+compliance with these requirements, give a true and fair view
+of the assets, liabilities, financial position, and financial per-
+formance of the Group. In addition, the executive directors are
+responsible for such internal control as they have determined
+necessary to enable the preparation of consolidated financial
+statements that are free from material misstatement, whether
+due to fraud or error.
+the conversion of the information contained in the consolidated
+financial statements and the Group management report into the
+ESEF format and therefore relates neither to the information
+contained within these renderings nor to any other information
+contained in the electronic file identified above.
+In our opinion, the rendering of the consolidated financial
+statements and the Group management report contained in
+the electronic file identified above and prepared for publication
+purposes complies in all material respects with the require-
+ments of § 328 Abs. 1 HGB for the electronic reporting format.
+Beyond this assurance opinion and our audit opinion on the
+accompanying consolidated financial statements and the ac-
+companying Group management report for the financial year
+from January 1 to December 31, 2021 contained in the "Report
+on the audit of the consolidated financial statements and on
+the Group management report" above, we do not express any
+assurance opinion on the information contained within these
+renderings or on the other information contained in the elec-
+tronic file identified above.
+• Identify and assess the risks of material misstatement of the
+consolidated financial statements and of the Group manage-
+ment report, whether due to fraud or error, design and per-
+form audit procedures responsive to those risks, and obtain
+audit evidence that is sufficient and appropriate to provide a
+basis for our audit opinions. The risk of not detecting a mate-
+rial misstatement resulting from fraud is higher than for one
+resulting from error, as fraud may involve collusion, forgery,
+intentional omissions, misrepresentations or the override of
+internal controls.
+We conducted our assurance work on the rendering of the con-
+solidated financial statements and the Group management report
+contained in the electronic file identified above in accordance
+with § 317 Abs. 3a HGB and the IDW Assurance Standard: Assur-
+ance Work on the Electronic Rendering, of Financial Statements
+and Management Reports, Prepared for Publication Purposes
+in Accordance with § 317 Abs. 3a HGB (IDW ASS 410 (10.2021))
+and the International Standard on Assurance Engagements 3000
+(Revised). Our responsibility in accordance therewith is further
+described in the "Group auditor's responsibilities for the assur-
+ance work on the ESEF documents" section. Our audit firm ap-
+plies the IDW Standard on Quality Management 1: Requirements
+for Quality Management in the Audit Firm (IDW QS 1).
+Basis for the assurance opinion
+REPORT
+INDEPENDENT
+PRACTITIONER'S
+158
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT PRACTITIONER'S REPORT
+(German Public Auditor)
+Wirtschaftsprüfer
+Dietmar Prümm
+PricewaterhouseCoopers GmbH
+Wirtschaftsprüfungsgesellschaft
+Düsseldorf, 18 February 2022
+The German Public Auditor responsible for the engagement is
+Verena Heineke.
+German Public Auditor responsible
+for the engagement
+Our auditor's report must always be read together with the
+audited consolidated financial statements and the audited Group
+management report as well as the assured ESEF documents. The
+consolidated financial statements and the Group management
+report converted to the ESEF format – including the versions to
+be published in the Federal Gazette - are merely electronic ren-
+derings of the audited consolidated financial statements and the
+audited Group management report and do not take their place. In
+particular, the "Report on the assurance on the electronic render-
+ing of the consolidated financial statements and the Group man-
+agement report prepared for publication purposes in accordance
+with § 317 Abs. 3a HGB" and our assurance opinion contained
+therein are to be used solely together with the assured ESEF
+documents made available in electronic form.
+Reference to an other matter -
+use of the auditor's report
+Verena Heineke
+Wirtschaftsprüferin
+(German Public Auditor)
+We were elected as Group auditor by the Annual General Meet-
+ing on May 6, 2021. We were engaged by the Supervisory Board
+on November 24, 2021. We have been the Group auditor of the
+Deutsche Post AG, Bonn, without interruption since the company
+first met the requirements of a public-interest entity within the
+meaning of 316a Satz 2 Nr. 1 HGB in financial year 2000.
+Є CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT AUDITOR'S REPORT
+We declare that the audit opinions expressed in this
+auditor's report are consistent with the additional report to the
+audit committee pursuant to Article 11 of the EU Audit Regulation
+(long-form audit report).
+Deutsche Post DHL Group - 2021 Annual Report
+157
+The executive directors of the company are responsible for the
+preparation of the ESEF documents including the electronic ren-
+derings of the consolidated financial statements and the Group
+management report in accordance with § 328 Abs. 1 Satz 4 Nr.
+[number] 1 HGB and for the tagging of the consolidated finan-
+cial statements in accordance with § 328 Abs. 1 Satz 4 Nr. 2 HGB.
+In addition, the executive directors of the company are
+responsible for such internal control as they have considered
+necessary to enable the preparation of ESEF documents that
+are free from material non-compliance with the requirements
+of § 328 Abs. 1 HGB for the electronic reporting format, whether
+due to fraud or error.
+The Supervisory Board is responsible for overseeing the
+process for preparing the ESEF documents as part of the finan-
+cial reporting process.
+Responsibilities of the executive directors and the
+Supervisory Board for the ESEF documents
+Our objective is to obtain reasonable assurance about whether
+the ESEF documents are free from material non-compliance with
+the requirements of § 328 Abs. 1 HGB, whether due to fraud or
+error. We exercise professional judgment and maintain profes-
+sional skepticism throughout the assurance work. We also:
+• Identify and assess the risks of material non-compliance with
+the requirements of § 328 Abs. 1 HGB, whether due to fraud or
+error, design and perform assurance procedures responsive to
+those risks, and obtain assurance evidence that is sufficient and
+appropriate to provide a basis for our assurance opinion.
+• Obtain an understanding of internal control relevant to the
+assurance work on the ESEF documents in order to design as-
+surance procedures that are appropriate in the circumstances,
+but not for the purpose of expressing an assurance opinion on
+the effectiveness of these controls.
+• Evaluate the technical validity of the ESEF documents, i.e.,
+whether the electronic file containing the ESEF documents
+meets the requirements of the Delegated Regulation (EU)
+2019/815 in the version in force at the date of the consolidated
+financial statements on the technical specification for this elec-
+tronic file.
+• Evaluate whether the ESEF documents provide an XHTML
+rendering with content equivalent to the audited consolidated
+financial statements and to the audited Group management
+report.
+• Evaluate whether the tagging of the ESEF documents with Inline
+XBRL technology (iXBRL) in accordance with the requirements
+of Articles 4 and 6 of the Delegated Regulation (EU) 2019/815,
+in the version in force at the date of the consolidated finan-
+cial statements, enables an appropriate and complete ma-
+chine-readable XBRL copy of the XHTML rendering.
+Further information pursuant to article 10 of the EU Audit
+regulation
+Group auditor's responsibilities for the assurance work on
+the ESEF documents
+7 November
+Deutsche Post DHL Group - 2021 Annual Report
+Results of the first nine months of 2023
+Updates to the financial calendar as well as information
+on live webcasts can be found on our @ Reporting hub.
+CONTACTS
+Deutsche Post AG
+Headquarters
+53250 Bonn
+Germany
+161
+Headquarters
+⑤+49 (0) 228 182-6 36 36
+ir@dpdhl.com
+Press Office
++49 (0) 228 182-99 44
+pressestelle@dpdhl.com
+Deutsche Post AG
+Investor Relations
+53250 Bonn
+Germany
+dpdhl.com
+1 August
+Investor Relations
+Dividend payment
+6 May
+2023 Annual General Meeting
+FINANCIAL CALENDAR - CONTACTS
+FINANCIAL CALENDAR
+2022 O
+3 May
+Results of the first quarter of 2022
+2022 Annual General Meeting
+11 May
+Dividend payment
+9 May
+5 August
+8 November
+Results of the first nine months of 2022
+2023
+9 March
+Results of financial year 2022
+3 May
+Results of the first quarter of 2023
+4 May
+Results of the first half of 2022
+Results of the first half of 2023
+6.0
+8.4
+Deutsche Post DHL Group - 2021 Annual Report
+14
+14
+Deutsche Post DHL Group - 2021 Annual Report
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+The English version of the 2021 Annual Report of Deutsche
+Post DHL Group constitutes a translation of the original
+German version. Only the German version is legally bind-
+ing, insofar as this does not conflict with legal provisions
+in other countries.
+Translation
+According to Section 162 German Stock Corporation Act
+(AktG), listed companies are now required to separately
+prepare a joint remuneration report for the Board of Man-
+agement and Supervisory Board each year that will be pub-
+lished on the company's website.
+GENERAL
+INFORMATION
+Separate remuneration report
+Additional information
+therein. Instead, they depend on a number of factors and
+are subject to various risks and uncertainties (particularly
+those described in the "Expected developments, opportu-
+nities and risks" section) and are based on assumptions
+that may prove to be inaccurate. It is possible that actual
+performance and results may differ from the forward-
+looking statements made in this report. Deutsche Post AG
+undertakes no obligation to update the forward-looking
+statements contained in this report except as required by
+applicable law. If Deutsche Post AG updates one or more
+forward-looking statements, no assumption can be made
+that the statement(s) in question or other forward-looking
+statements will be updated regularly.
+This report contains forward-looking statements which
+are not historical facts. They also include statements con-
+cerning assumptions and expectations which are based
+upon current plans, estimates and projections, and the
+information available to Deutsche Post AG at the time this
+report was completed. They should not be considered to
+be assurances of future performance and results contained
+Forward-looking statements
+The contents of the > Corporate governance statement pur-
+suant to Section 289f and 315d HGB have not been audited.
+The combined non-financial statement was audited
+separately by PwC on behalf of the Supervisory Board in
+a limited and, for certain indicators, reasonable assurance
+engagement, > Practitioner's report.
+The consolidated financial statements of Deutsche Post AG
+and its subsidiaries and the combined management re-
+port for the financial year from 1 January to 31 Decem-
+ber 2021 were audited by PricewaterhouseCoopers GmbH
+Wirtschaftsprüfungsgesellschaft (PwC) in a reasonable as-
+surance engagement, > Auditor's report.
+> Refers to information contained elsewhere in the report.
+Indicates a hyperlink to content available online that is
+not part of this report.
+Business model
+An international service portfolio
+Deutsche Post AG is a listed corporation domiciled in
+Bonn, Germany. Under its DHL and Deutsche Post brands,
+Deutsche Post DHL Group provides an international service
+portfolio of services in the areas of express delivery, freight
+transport, supply chain management, e-commerce solutions
+and letter and parcel dispatch. The Group is organised into
+five operating divisions: Express; Global Forwarding, Freight;
+Supply Chain; eCommerce Solutions; and Post & Parcel
+Germany. Each of the divisions is managed by its own divi-
+sional headquarters and subdivided into functions, business
+units or regions for reporting purposes.
+Post & Parcel
+Germany
+Domestic last-mile
+parcel delivery in
+selected countries in
+Europe, the United
+States and Asia;
+non-TDI cross-border
+services to, from and
+within Europe
+eCommerce
+Solutions
+Tailor-made logistics
+services and supply
+chain solutions based
+on globally standardised
+modules such as ware-
+housing, transport and
+value-added services
+Supply Chain
+Divisions
+Deutsche Post DHL
+Group
+International forwarding
+services for air, ocean
+and overland freight
+Share of
+consolidated
+revenue¹ 2021:
+Transport of urgent
+documents and goods,
+primarily as time-
+definite international
+shipments
+Global Forwarding,
+Freight
+Express
+Corporate structure as at 31 December 2021
+In March 2021, John Pearson's Board of Management
+term was extended until December 2026. In June 2021,
+the Board of Management terms of Tobias Meyer and
+Melanie Kreis were extended to March 2027 and May 2027,
+respectively.
+On 1 January 2021, the Corporate Incubations board
+department was discontinued and Corporate Functions
+renamed Group Functions.
+Organisational changes
+The internal services that support the entire Group are
+consolidated in our Global Business Services unit. Group
+management functions are centralised in Group Functions.
+Independent audit
+mining material topics, supplemented by HGB requirements.
+The non-financial statement also includes information aimed
+at facilitating sustainable investment (EU Taxonomy) in
+accordance with Article 8 of Regulation 2020/852 of the
+European Parliament and of the European Council. In the
+interest of avoiding repetition, please also refer to other sec-
+tions of the management report for reporting on manda-
+tory disclosures, provided that they already are explained
+in greater detail there. Information regarding employees ap-
+plies to all of the Group's staff; exceptions are noted as such.
+The combined management report also includes the
+combined non-financial statement for Deutsche Post AG
+and for the Group in accordance with Sections 289b(1) and
+315b (1) HGB. The non-financial key performance indica-
+tors used for managing the Group were determined on the
+basis of their materiality in accordance with the German
+Commercial Code; the German Accounting Standards (GASS)
+were applied, > Steering metrics. The Global Reporting Ini-
+tiative (GRI) standards are taken as the framework for deter-
+The combined management report comprises the
+Group Management Report of Deutsche Post DHL Group
+and the Management Report of Deutsche Post AG. Unless
+otherwise noted, the information presented refers to the
+Group. Information pertaining solely to Deutsche Post AG
+is identified as such.
+An overview of current Supervisory Board members is
+provided in Boards and committees.
+Board.
+Özdemir to replace him as a member of the Supervisory
+There were no changes to the shareholder representatives
+during the reporting period. The employee representative
+Thomas Koczelnik stepped down from the Supervisory
+Board on 31 August 2021. The court appointed Yusuf
+Changes to the Supervisory Board
+We initiated the change at the top of the company in
+December. We renewed the appointment of Frank Appel
+until 4 May 2023. He will thus chair the Board of Manage-
+ment until the 2023 Annual General Meeting. Tobias Meyer,
+the Board member responsible for Post & Parcel Germany
+up until then, will succeed him. In the course of the tran-
+sition, Tobias Meyer will assume the Global Business Ser-
+vices Group function from Frank Appel in July 2022. We
+appointed Nikola Hagleitner, currently head of the business
+department Sales, Post & Parcel Germany, to head the
+Post & Parcel Germany division from July 2022 as Tobias
+Meyer's successor.
+There were no changes to the Board of Management during
+the year under review.
+Changes to the Board of Management
+meetings with the participation of members of the Board
+of Management. These provided Supervisory Board mem-
+bers with an in-depth look at operational workflows and
+conditions on the ground. In June, Directors' Day covered
+the topics of the tax situation and internal and external com-
+munications of the Deutsche Post DHL Group; in Septem-
+ber, it covered the Lieferkettengesetz (Supply Chain Act),
+Finanzmarktintegritätsstärkungsgesetz (Financial Market
+Integrity Strengthening Act) and other current develop-
+ments in the field of corporate governance.
+Support of the members of the Supervisory Board
+The company supports the members of the Supervisory
+Board in terms of the constantly evolving requirements
+on their activities. Newly elected members of the Super-
+visory Board receive a customised introduction in the form
+of individual meetings with the members of the Board of
+Management; additional measures include the provision of
+informational materials, access to a digital data room spe-
+cially designed for the Supervisory Board and the offer of
+reimbursement for the cost of attending selected external
+training events and subscribing to industry publications. In
+addition, to the extent permitted by the coronavirus restric-
+tions, regular guided walk-throughs at operating units of the
+company were held in conjunction with Supervisory Board
+The Mediation Committee did not meet in the year
+under review.
+The Nomination Committee met once. It recommended
+that the Supervisory Board propose to the 2022 Annual
+General Meeting that Stefan B. Wintels, CEO of KfW Banken-
+gruppe, be proposed as a Supervisory Board candidate and
+successor to Günther Bräunig, who is stepping down at the
+close of the Annual General Meeting on 6 May 2022.
+-
+units in their respective market segments and the imple-
+mentation of our Strategy 2025, as well as the acquisition
+and sale of equity investments. The particular areas of focus
+were the further development of the various digitalisation
+initiatives and the sustainability of business operations in
+the divisions. In December, the Supervisory Board assigned
+the committee the responsibility for regularly addressing
+sustainability-related topics (environment, social, gover-
+nance ESG) from a strategic perspective.
+11
+Deutsche Post DHL Group - 2021 Annual Report
+REPORT OF THE SUPERVISORY BOARD
+Managing conflicts of interest
+Supervisory Board members neither hold positions on the
+governing bodies of, nor provide consultancy services to,
+the Group's main competitors, nor do they maintain per-
+sonal relationships with them. No conflicts of interest were
+reported in the year under review.
+Transporting, sorting
+and delivering docu-
+ments and goods in
+Germany and export to
+the rest of the world
+Company in compliance with all recommendations of
+the German Corporate Governance Code
+REPORT OF THE SUPERVISORY BOARD
+As a listed company, Deutsche Post AG has prepared its
+consolidated financial statements in accordance with Sec-
+tion 315e Handelsgesetzbuch (HGB - German Commercial
+Code) in compliance with International Financial Reporting
+Standards (IFRSS) and the corresponding Interpretations
+of the International Accounting Standards Board (IASB) as
+adopted in the European Union.
+Applied reporting standards
+This publication contains both financial and non-financial
+information about the results for the 2021 financial year. It
+was published on 9 March 2022 in German and English and
+is available @online and as a @ PDF. The report sections that
+are subject to publication requirements are published in the
+Bundesanzeiger (Federal Gazette), in due consideration of
+the European Single Electronic Format (ESEF).
+REPORTING PRACTICE
+13
+Deutsche Post DHL Group - 2021 Annual Report
+REPORTING PRACTICE
+122
+12
+Nikolaus von Bomhard
+Chairman
+Bonn, 8 March 2022
+The Supervisory Board
+We would like to thank all employees as well as the
+members of the Board of Management of the company for
+their outstanding work over the last financial year, which
+resulted in a correspondingly good profit for the year.
+agement's proposal for the appropriation of net retained
+profit and the payment of a dividend of €1.80 per share.
+After prior examination by the Finance and Audit Com-
+mittee, the Supervisory Board in its meeting today discussed
+the annual and consolidated financial statements, including
+the Board of Management's proposal on the appropriation
+of the net retained profit, and the combined management
+report including the combined non-financial statement for
+the 2021 financial year in depth with the Board of Manage-
+ment. PwC reported on the results of their audit before the
+Finance and Audit Committee and plenary meeting and
+was available to answer questions. The Supervisory Board
+concurred with the results of the audit and approved the
+annual and consolidated financial statements for the 2021
+financial year, as recommended by the Finance and Audit
+Committee. No objections were raised on the basis of the
+final outcome of the examination by the Supervisory Board
+and the Finance and Audit Committee of the annual and con-
+solidated financial statements, the combined management
+report including the combined non-financial statement,
+and the proposal for the appropriation of the net retained
+profit. The Supervisory Board endorsed the Board of Man-
+The auditors elected by the AGM, PricewaterhouseCoopers
+GmbH Wirtschaftsprüfungsgesellschaft (PwC), Düsseldorf,
+audited the annual and consolidated financial statements
+for the 2021 financial year, including the combined man-
+agement report, and issued unqualified audit opinions.
+PwC also conducted the voluntary review of the half-yearly
+financial report and the voluntary substantive review of the
+remuneration report to be approved by the Annual General
+Meeting without issuing any objections.
+2021 annual and consolidated financial statements
+examined
+Deutsche Post DHL Group - 2021 Annual Report
+In December, the members of the Board of Management
+and the Supervisory Board issued a statement of compli-
+ance with the recommendations of the German Corporate
+Governance Code as amended on 16 December 2019 and
+their intent to continue to comply in the future - with the
+sole exception that, on a case-by-case basis, a Board of
+Management member may assume a chairmanship ap-
+pointment to the supervisory board of a company outside
+the Group in the final months of their term. We consider
+it appropriate for experienced members of our Board of
+Management to assume supervisory board chairmanship
+appointments outside the Group during the final months
+of their terms. The statements from past years can be
+accessed on the company's website. Further information
+regarding corporate governance within the company can
+be found in the > Annual Corporate Governance Statement.
+20
+29.0%
+16.8%
+BSA
+Our global air freight network is operated by multiple air-
+lines, some of which are wholly owned by the Group. The
+combination of our own and purchased capacities allows
+us to respond flexibly to fluctuating demand. The follow-
+ing graphic illustrates how our available freight capacity is
+organised and offered on the market. Most of the freight
+capacity is used for TDI, our main product. If any cargo space
+remains on our own flights, we sell it to customers in the air
+freight sector. The largest buyer of remaining capacity is the
+DHL Global Forwarding business unit.
+Our virtual airline
+We conduct regular reviews of operational safety,
+compliance with standards and quality of service at our
+facilities in co-operation with government authorities.
+Approximately 370 locations have been certified by the
+Transported Asset Protection Association (TAPA), making
+us a leader in this area.
+At our quality control centres, we track shipments
+across the globe and adjust the processes dynamically as
+required. All premium products are tracked until they are
+delivered.
+In order to keep our commitments to our customers as a
+global network operator, we monitor their ever-changing
+requirements, for example through our Insanely Customer
+Centric Culture programme and with Net Promoter Scores.
+Keeping our customer service promise
+Block Space
+Agreement -
+guaranteed air
+cargo product
+Express TDI core product - capacity
+based upon average utilisation,
+adjusted on a daily basis
+16
+Deutsche Post DHL Group - 2021 Annual Report
+Available capacity
+In the Express division, we transport urgent documents and
+goods reliably and on time from door to door. International
+time-definite shipments are our core business. The divi-
+sion's main product is Time Definite International (TDI). Our
+TDI services enable delivery at predefined times, and our
+expertise in customs clearance keeps shipments moving
+as a prerequisite in ensuring fast and reliable door-to-door
+service. We also provide industry-specific services to round
+out our TDI product. For example, our Medical Express
+transport solution, which is tailored specifically to compa-
+nies in the life sciences and healthcare sector, offers vari-
+ous types of thermal packaging for temperature-controlled,
+chilled and frozen contents.
+Time-definite international shipments
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+countries and
+territories
+Core
+ACS
+Air Capacity Sales,
+average total spare
+capacity that is not
+slated to be utilised
+for BSA or TDI core
+volumes
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+Despite the pandemic in 2021, we achieved noticeable vol-
+ume growth with around 2.1 million tonnes (previous year:
+around 1.7 million tonnes) of export air freight transported.
+Air freight achieved volume growth despite uncertain
+market conditions
+Air, ocean and overland freight forwarding services
+Air, ocean and overland freight forwarding services are our
+core business. They include standardised transports as well
+as multimodal and sector-specific solutions, together with
+customised industrial projects and customs services. Our
+business model is based upon brokering transport services
+between customers and freight carriers. The global reach
+of our network allows us to offer efficient routing and multi-
+modal transport options. Compared with the Group's other
+divisions, our operational business model is asset-light.
+freight terminals
+200
+Around
+territories
+countries and
+150
+More than
+customers
+250,000
+More than
+Air, ocean and overland freight
+GLOBAL FORWARDING, FREIGHT DIVISION
+17
+Deutsche Post DHL Group - 2021 Annual Report
+220
+More than
+DHL
+facilities
+EXPRESS DIVISION
+Deutsche Post DHL Group's locations can be found in the
+List of shareholdings. The following description of the
+divisions shows our market shares and market volumes -
+where available and useful - in the most important regions.
+A presence that spans the globe
+The Supervisory Board resolved the following changes
+in December 2021: The Board of Management term of
+Oscar de Bok was extended until September 2027. Frank
+Appel's term as Chairman of the Board of Management was
+extended until May 2023. As of 1 July 2022, Tobias Meyer
+will assume responsibility for Global Business Services. He
+will be appointed Chairman of the Board of Management
+on the day after the 2023 Annual General Meeting. Nikola
+Hagleitner will be appointed as a member of the Board of
+Management from 1 July 2022 to 30 June 2025. Respon-
+sibility for Post & Parcel Germany will be transferred to her.
+15
+Deutsche Post DHL Group - 2021 Annual Report
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+Note 11 to the consolidated financial statements.
+Human Resources
+Finance
+CEO
+Customer Solutions & Innovation
+Global Business Services
+Corporate Center
+Group Functions
+20.7%
+7.1%
+A global express network
+26.4%
+Around
+LILLAL
+3,400
+Around
+dedicated
+aircraft
+320
+More than
+airports
+serviced
+More than
+500
+DHL
+DHL
+111,800
+service points
+Around
+customers
+million
+3
+Around
+hubs
+22
+120,000
+employees
+Ocean freight market also reports higher volumes
+With around 3.1 million 20-foot container units (previous
+year: around 2.9 million) transported, we managed to in-
+crease the ocean freight volume under the difficult circum-
+stances of 2021.
+Around
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+Data based solely on export freight tonnes. Source: estimate by Seabury Consulting. 2 Twenty-foot container units; estimated part of overall market controlled by
+forwarders. Data based solely on export volumes. Source: company estimates, Seabury Consulting.
+After considerable downturn, European road transport
+market once again registers strong growth
+Following a difficult 2020, the European road transport mar-
+ket once again registered strong growth in the reporting
+year. At the same time, a series of challenges arose; amongst
+those, an imbalance between supply and demand resulted
+in capacity constraints. However, supported primarily by
+strong growth in demand, DHL strengthened its position
+within the very fragmented European road transport market.
+Satisfied customers and automated processes
+We aim to design our services to be as user-friendly as pos-
+sible. To do so, we systematically record customer feedback
+by calculating Net Promoter Scores and conducting annual
+satisfaction surveys. Based upon the information received,
+we define initiatives and actions aimed at steadily improv-
+ing our products and services.
+Another key enabler to improve the customer expe-
+rience is our digitalisation roadmap. The global Transport
+Management System, whose introduction we concluded in
+the Global Forwarding business unit during the year under
+review, was the foundation for further scaling of global ap-
+plications as well as automated and standardised processes.
+We made every effort to push forward with the im-
+plementation of our standardised Transport Management
+System in the Freight business unit as well. Meanwhile, we
+are continually registering new user groups in our myDHLi
+portal, which is now available in 14 languages. We are also
+reaching new segments through sales channels such as
+Saloodo! - our digital marketplace for road freight - and
+our online freight portal for customers in Sweden.
+Deutsche Post DHL Group - 2021 Annual Report
+63.2
+18
+19
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+SUPPLY CHAIN DIVISION
+Solutions that reduce customer supply chain complexity
+Around
+14
+million m²
+Deutsche Post DHL Group - 2021 Annual Report
+warehousing
+25.1
+5.3
+45,000
+employees
+Air and ocean freight market 2021: relevant volumes
+Air freight (m tonnes)¹
+Ocean freight (m TEUs)²
+Asia Pacific
+0.9
+1.1
+Americas
+Europe
+Other
+Global
+11.6
+39.3
+5.5
+9.1
+1.1
+Middle
+East/Africa
+and operational
+space¹
+1
+DHL
+Thanks to our systematic follow-up on customer feed-
+back, our satisfaction values (Net Promoter Approach)
+remain on a consistent high level.
+Contract logistics market 2020¹
+€ billion
+Contract logistics
+Asia Pacific
+Americas
+Middle
+East/Africa
+Europe
+Global
+75.9
+63.4
+7.8
+PHL
+68.3
+215.4
+Meeting or exceeding quality expectations
+We continuously build upon our position as a quality leader
+in contract logistics. With the globally consistent operat-
+ing standards of our “Operations Management System
+First Choice", we ensure that we either meet or exceed our
+customers' quality expectations and continuously improve.
+The global contract logistics market is estimated at around
+€215.4 billion for the year 2020. DHL is the global market
+leader in the fragmented market of contract logistics with
+a market share of 5.8% (2020) and operations in more than
+50 countries. The market share of the second-leading pro-
+vider is only half as large.
+1 Company estimate.
+Standardisation and use of innovative technologies
+We are constantly striving to increase speed and agility
+along the entire supply chain through modular standard-
+isation and the use of new technologies. State-of-the-art
+digital solutions are already used at more than 80% of
+our locations, for example with some 2,000 collaborative
+robots and some 25,000 smart wearables deployed. In
+addition, we leverage data analytics to drive operational
+efficiencies and to enhance the customer experience. We
+are integrating physical and digital supply chain solutions.
+Tailor-made supply chain solutions
+Our core business comprises tailor-made logistics services
+and supply chain solutions in order to reduce the complexity
+for our customers and to add value. We offer a broad prod-
+uct portfolio including warehouse operations and transport
+as well as value-added services such as eFulfillment and
+returns management, Lead Logistics Partner (LLP), Real
+Estate Solutions, Service Logistics and packaging solutions
+for strategic industry sectors. We offer modular solutions
+that allow our customers' operations to be more agile and
+more flexible to respond to changed supply chain needs.
+Leading position in contract logistics
+Around
+177,000
+employees
+Most innovative
+Around
+10,000
+3PL offering
+according to Gartner ranking
+Active in more than
+50
+countries
+1 Includes owned and leased warehouses only and not customer owned facilities operated by DHL.
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+vehicles
+More than
+• Post & Parcel Germany division: around €1.5 billion
++/- max. of 10%
+• Group Functions: around €-0.45 billion
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+ECOMMERCE SOLUTIONS DIVISION
+Domestic last-mile parcel delivery and non-TDI cross-border services
+20
+employees
+More than
+70,000
+service points
+Around
+EAC
+40,000
+countries
+⚫ Slight decline if asset charge increases as forecast
+Cash flow
+In the 2021 financial year, global trade overall once again
+took off, resulting in increased shipments. All divisions of
+Deutsche Post DHL Group managed to increase revenue,
+profits and margins - considerably in some cases. In total,
+Group EBIT came to €8.0 billion and exceeded the most
+recent forecast figure of more than €7.7 billion. With in-
+vestments of €3.9 billion, we are continuing the expansion
+of our infrastructure and strengthening its future viability.
+Free cash flow of €4.1 billion once again underscores our
+solid financial foundation and our potential to continue
+profitable growth in the future.
+• Investment spending (excluding leases): around €4.2 billion
+Dividend distribution
+DHL SNL NL NL
+Economic parameters
+Overall assessment
+29
+Deutsche Post DHL Group - 2021 Annual Report
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+• Free cash flow³ amounts to around €3.6 billion +/- max. of 5%
+Capital expenditure (capex)
+Forecast adjusted several times during the year. > Strategy. 3 Calculation does not include the purchase price payment for Hillebrand. 4 New performance indicator to be used for managing the Group,
+> Expected developments, opportunities and risks.
+⚫LTIFR per 200,000 working hours* decreases to 3.7
+Compliance-relevant training
+Lost time injury frequency rate (LTIFR)
+• Share of women in middle and upper management* rises to 25.9%
+• Employee Engagement approval rate of more than 80%
+Women in executive positions
+• Realised Decarbonisation Effects4: 969 kilotonnes of CO₂e
+Employee Engagement
+• Dividend payout of 40% to 60% of net profit
+Greenhouse gas emissions
+• Share of valid training certificates in middle and upper
+management is at least 97%
+Deutsche Post DHL Group - 2021 Annual Report
+EBIT
+More than
+Nationwide post and parcel network in Germany
+Around
+197,000
+employees
+Around
+25,500
+sales points
+POST & PARCEL GERMANY DIVISION
+Around
+Packstations
+DHL
+Around
+108,600
+postboxes
+The following figures describing the economic parameters
+are based on information from IHS Markit.
+82
+8,700
+21
+22
+Deutsche Post DHL Group - 2021 Annual Report
+1.1
+billion parcels
+6
+dedicated
+aircraft
+Around
+22,500
+22
+vehicles
+Our core business is domestic last-mile parcel delivery in
+selected countries in Europe, in Asian emerging markets,
+in the United States and in India and non-TDI cross-border
+services primarily to, from and within Europe, as well as to,
+from and within the United States.
+The domestic last-mile parcel delivery service is pro-
+vided via our own and partner networks, serving a mix of
+B2C and B2B customers across all sectors. Our non-TDI
+cross-border service provides worldwide shipping solutions
+to enable our customers to capitalise on strong growth in
+cross-border trade, whilst meeting their expectations for
+speed, transparency and quality. The DHL Parcel Connect
+platform is our delivery and returns solution developed es-
+pecially for e-commerce in Europe, catering to both B2B and
+B2C, which simplifies pan-European cross-border shipping
+with a harmonised label, common IT systems, core features
+and local services.
+Management of the business is centrally organised
+according to the regions in which we operate.
+Satisfied customers and high level of delivery reliability
+We focus on delivering industry-leading performance as
+well as quality and service excellence. Even against the
+background of the pandemic, operational challenges and
+volume increases, we succeeded in achieving an overall
+global delivery quality of 95% (previous year: 94%).
+Implementation of the Net Promoter Approach is also
+being prepared for the eCommerce division.
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+Domestic and international non-time-definite
+parcel delivery
+Noticeable global economic growth despite further
+pandemic waves
+2020
+66,716
+(previous year: -3.4%) in the United States, saw a robust
+increase of 8.1% (previous year: 2.3%) in China and grew
+by 5.3% (previous year: -6.4%) in the eurozone. Germany's
+GDP was up 2.8% in 2021 after declining 4.9% in the pre-
+vious year.
+Earnings per share4
+Consolidated net profit for the period³
+EBIT after asset charge (EAC)
+9.5
+10.3
+9.8
+Dividend per share
+7.3
+2,213
+Q4 2021
+23,378
+1,966
+7,978
+4,847
+€m
+%
+Q4 2020
+19,093
+1 Adjusted prior-year figures, > note 4 to the consolidated financial statements. 2 EBIT/revenue. 3 After deduction of non-controlling interests. 4 Basic earnings per share.
+€m
+€
+1.21
+1.05
+4.10
+2.41
+€
+5 Proposal.
+1,484
+1,488
+1,310
+5,186
+5,053
+2,979
+€m
+2,199
+1,302
+In 2021, the global economy trended toward recovery from
+the shock of the COVID-19 pandemic, but fought off set-
+backs in view of further pandemic waves and the utilisation
+of intercontinental transport capacities. After a dive in the
+previous year caused by the pandemic, the gross domestic
+product (GDP) overall saw positive development worldwide.
+Average annual GDP rose approximately 5.1% (previous
+year: -4.5%) in the industrial countries and around 6.7%
+(previous year: -1.5%) in the emerging markets. This de-
+velopment was given additional impetus by accelerated
+growth in all major economic areas. GDP was up 5.7%
+2021
+81,747
+€m
+In recognition of their achievements during the pandemic,
+we paid our employees a special bonus of €300 each, as
+in the previous year. The total amount of €165 million is
+contained in staff costs.
+Significant events
+30
+Deutsche Post DHL Group - 2021 Annual Report
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+In view of our leading market position, many of our services
+are subject to sector-specific regulation under the Post-
+gesetz (PostG - German Postal Act). Further information
+regarding this issue and legal risks is contained in >> note 45
+to the consolidated financial statements.
+In keeping with our financial strategy, we bought back
+shares with a total value of €1 billion during the reporting
+year.
+Legal environment
+Sustained growth in e-commerce
+and demand catching up - sometimes by leaps and bounds -
+caused inflation to rise to levels not seen in decades in some
+countries. The sharp rise in energy prices, particularly for
+natural gas and crude oil, was a major factor in this regard.
+The intersection of the limited ability to expand supply
+due to the utilisation of intercontinental transport capacities
+One of the reasons for the lack of free transport capac-
+ity was strong demand for all types of consumer goods in
+the United States. Simultaneous bottlenecks at ports meant
+that ocean-going fleets worldwide could no longer be de-
+ployed efficiently. This shortage of ocean freight capacity in
+turn caused an upturn in demand for air cargo space. As in
+the previous year, the available supply here was limited as
+well, because less cargo capacity was available in passenger
+planes on account of the pandemic.
+Global economic output, which is key to logistics and had
+been rising by an average of 3.1% per year for the past
+decade, fell 3.4% in 2020 and then gained 5.7% in 2021.
+For Deutsche Post DHL Group, this recovery in industrial
+demand had a mainly positive impact on the revenue and
+earnings trends of the DHL divisions. The worldwide up-
+swing was, in fact, further supported by a revival in the
+global commodity flow: The IMF's World Economic Outlook
+for January forecast an increase of 9.3% in world trade vol-
+ume in US dollars based on an assumption of constant real
+effective exchange rates after -8.2% in the previous year.
+Growth was held back by a lack of free market capacity for
+transport services. At the same time, this led to a significant
+rise in air, ocean and road freight rates.
+Upswing receives support from revival of global
+commodity flow
+Continued strong consumer spending in the United States
+additionally reflects the accelerated penetration of the
+market by e-commerce thanks to the pandemic, a trend
+also observed in most other markets around the globe. In
+2020, initial pandemic-related social distancing measures
+triggered strong acceleration of structural growth in on-
+line purchasing. This growth rate continued to exceed the
+structural trend again in the first six months of 2021. In
+the second half of 2021, e-commerce-based volumes sta-
+bilised at the high level of the previous year and therefore
+underscored the sustained growth brought about by the
+pandemic.
+mail centres
+In August, Deutsche Post DHL Group signed an agree-
+ment to fully acquire J.F. Hillebrand Group AG for approx-
+imately €1.5 billion. This acquisition serves to accelerate
+expansion in the dynamic ocean freight forwarding market.
+Portfolio unchanged
+Return on sales²
+Profit from operating activities (EBIT)
+Revenue¹
+Sharp improvement in consolidated net profit
+Consolidated net profit showed a sharp improvement in the
+2021 financial year, rising from €3,176 million to €5,423 mil-
+lion. Of this amount, €5,053 million is attributable to
+Deutsche Post AG shareholders and €370 million to
+non-controlling interest shareholders. Basic earnings per
+share also rose from €2.41 to €4.10 and diluted earnings
+per share from €2.36 to €4.01.
+Totalling €7,978 million in the year under review, profit from
+operating activities (EBIT) came in €3,131 million higher
+and thus well above the prior-year figure (€4,847 million).
+In the fourth quarter this figure increased from €1,966 mil-
+lion to €2,213 million. Net finance costs improved from
+€-676 million to €-619 million. Positive effects on the in-
+terest expense resulted from changes in the discount rate
+for non-current provisions. Profit before income taxes
+improved significantly by €3,188 million to €7,359 million.
+Income taxes increased by €941 million to €1,936 million
+also due to an increased tax rate.
+Consolidated EBIT up 64.6%
+Results of operations
+increased other operating expenses by €442 million to
+€4,896 million.
+Increase in materials expense
+Other operating income increased by €196 million to
+€2,291 million.
+In the 2021 financial year, consolidated revenue rose from
+€66,716 million to €81,747 million, reduced by currency
+effects in the amount of €301 million. The proportion of
+revenue generated abroad increased from 70.3% to 73.6%.
+In the fourth quarter of 2021, revenue increased by 22.4%
+to €23,378 million, supported by positive currency effects
+in the amount of €451 million.
+Consolidated revenue up 22.5%
+Selected indicators for results of operations
+There were no material changes in our portfolio in the
+reporting year.
+Materials expense increased from €33,704 million to
+€43,897 million, driven primarily by higher transport
+costs in the Global Forwarding, Freight division, as well
+as increased fuel costs in the Express division. Staff costs
+increased by €1,645 million to €23,879 million, due pri-
+marily to the increase in the number of employees. By
+contrast, depreciation, amortisation and impairment
+losses decreased by €62 million to €3,768 million. In the
+previous year there were impairment losses necessary in
+the Supply Chain division due to, amongst other factors,
+lockdown measures. Amongst others, expenses for ad-
+vertising - for example for our global brand campaign -
+Around
+49
+million letters
+per working day
+DHL
+EBIT
+Asset charge
+Net asset base
+× Weighted average cost of capital (WACC)
+EAC
+EBIT after asset charge
+Operating assets
+•Intangible assets
+• Property, plant and equipment
+• Goodwill
+Profit from operating activities
+• Trade receivables (included in net working capital)¹
+Operating liabilities
+• Operating provisions
+(excluding provisions for pensions and similar obligations)
+• Trade payables (included in net working capital)¹
+• Other non-current operating liabilities²
+Net asset base
+EBIT
++ Depreciation, amortisation and impairment losses
+± Net income/loss from disposal of non-current assets
+± Non-cash income and expense
+• Other non-current operating assets²
+EBIT
+for using the equity method
+± Net income/loss from investments accounted
+EBIT after asset charge (EAC) is another key perfor-
+mance indicator used by the Group. EAC is calculated by
+subtracting the asset charge, a cost-of-capital component,
+from EBIT. Making the asset charge a part of business deci-
+sions encourages the efficient use of resources and ensures
+that our operational business is geared towards increasing
+value sustainably whilst improving cash flow.
+The asset charge is calculated on the basis of the
+weighted average cost of capital, or WACC, which is defined
+as the weighted average net cost of interest-bearing liabil-
+ities and equity, taking into account company-specific risk
+factors in accordance with the Capital Asset Pricing Model.
+A standard WACC of 8.5% is applied across the divisions.
+That figure also represents the minimum target for projects
+and investments within the Group. The WACC is generally
+reviewed once annually on the basis of the current situation
+on the financial markets. To ensure better comparability of
+the asset charge with previous figures, in 2021 the WACC
+used here was maintained at a constant level compared with
+the previous years.
+The asset charge is calculated each month so that
+fluctuations in the net asset base can also be taken into
+account during the year. The O Calculations graphic shows
+the composition of the Group's net asset base.
+Free cash flow facilitates liquidity management
+Along with EBIT and EAC, cash flow is another key perfor-
+mance metric used by Group management. The goal is to
+maintain sufficient liquidity to cover all of the Group's fi-
+nancial obligations from debt repayment and dividends, in
+addition to meeting payment commitments arising from
+the Group's operations and investments. Cash flow is cal-
+culated using the cash flow statement.
+Operating cash flow (OCF) includes all items that are
+related directly to operating value creation. Another key
+parameter impacting OCF is net working capital. Effective
+management of net working capital is an important way for
+the Group to improve cash flow in the short to medium term.
+Free cash flow (FCF) is a management indicator de-
+rived from OCF. It is used as an indicator of how much cash
+is available to the company for paying out dividends or re-
+paying debt at the end of a reporting period.
+Managing greenhouse gas emissions and improving
+efficiency
+We aim to reduce the greenhouse gas (GHG) emissions
+produced by us and our transportation subcontractors as
+well as our dependency on fossil fuels in order to mitigate
+our impact on the global climate, improve greenhouse gas
+efficiency and cut costs.
+The Carbon Efficiency Index (CEX) was the key per-
+formance indicator we used to measure GHG efficiency
+in the reporting period. This metric is based on business-
+unit-specific emissions intensity figures that are indexed
+to the base year. The calculation methodology is based on
+recognised international standards such as the Greenhouse
+Gas Protocol, DIN EN 16258 and the Global Logistics Emis-
+sions Council Framework. The CEX reflects GHG emissions
+excluding those from the upstream chain (tank-to-wheel
+emissions), while we expanded GHG emissions reporting
+to include the upstream emissions arising from fuel pro-
+duction (well-to-wheel emissions) in the reporting period.
+Employee engagement as a factor for success
+Motivated and committed employees contribute to the
+success of the company. In the annual Group-wide survey,
+each employee has the opportunity to anonymously rate
+the company's strategy and values as well as its working
+conditions. We derive the Employee Engagement key per-
+formance indicator from these results.
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+Calculations
+Deutsche Post DHL Group - 2021 Annual Report
+27
+27
+Revenue
++ Other operating income
++ Changes in inventories and work performed and capitalised
+Materials expense
+Staff costs
+Depreciation, amortisation and impairment losses
+Other operating expenses
+Change in provisions
++ Change in other non-current assets and liabilities
++ Dividends received
+± Income taxes paid
+•⚫ Dividend payout of 40% to 60% of net profit
+Greenhouse gas efficiency
+⚫ CEX projected to increase by one index point
+• KPI and targets will be reviewed as part of the ESG roadmap²
+Employee Opinion Survey
+• Employee Engagement approval rate of more than 80%
+2
+Results for 2021
+EBIT
+• Group: €8.0 billion
+• DHL divisions: €6.6 billion
+• Post & Parcel Germany division: €1.7 billion
+• Group Functions: €-0.4 billion
+EAC
+• Rose in line with EBIT and increased to €5.2 billion
+Cash flow
+• Free cash flow amounts to €4.1 billion
+Capital expenditure (capex)
+• Investment spending (excluding leases): €3.9 billion
+Dividend distribution
+• To be proposed: dividend payout of 42.9% of adjusted net profit
+Greenhouse gas efficiency
+• CEX drops one index point to 36 index points
+• New metric Realised Decarbonisation Effects replaces CEX
+beginning in 2022
+Employee Opinion Survey
+• Employee Engagement approval rate at 84%
+Targets for 2022
+• Investment spending (excluding leasing): around €3.9 billion
+Dividend distribution
+The profitability of the Group's operating divisions is mea-
+sured as profit from operating activities (EBIT).
+Capital expenditure (capex)¹
+• Projected to develop in line with EBIT and increase
+Cash flow¹
+Operating cash flow before changes
+in working capital (net working capital)
+Change in net working capital
+Net cash from/used in operating activities
+(operating cash flow, OCF)
+± Cash inflow/outflow arising from change in property,
+plant and equipment and intangible assets
+± Cash inflow/outflow arising from acquisitions/divestitures
+Cash outflow arising from repayments and interest on
+lease liabilities
+Net interest paid
+¹ Includes EBIT-related current assets and liabilities. Not included are assets and liabilities related to taxes, financing and cash and cash equivalents, for example.
+2 Includes EBIT-related other non-current assets and liabilities. Not included are assets and liabilities related to taxes or bonds, for example.
+FCF
+Free cash flow
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+Deutsche Post DHL Group - 2021 Annual Report
+28
+1
+REPORT ON ECONOMIC POSITION
+Forecast/actual comparison
+Targets for 2021
+EBIT¹
+• Group: more than €7.7 billion
+• DHL divisions: more than €6.4 billion
+• Post & Parcel Germany division: €1.7 billion to €1.8 billion
+• Group Functions: around €-0.4 billion
+EAC
+• Free cash flow amounts to more than €3.6 billion
+EBIT and EAC (EBIT after asset charge)
+Additional metrics that we will report beginning in 2022
+are described and forecast in the Expected developments,
+opportunities and risks section.
+Financial and non-financial key performance indicators
+Deutsche Post DHL Group uses both financial and non-
+financial performance indicators in its management of the
+Group. The monthly, quarterly and annual changes in these
+indicators are compared with prior-year data and forecast
+data to assist in making management decisions. The year-to-
+year changes in the financial and non-financial performance
+indicators described here also play an important role in the
+calculation of management remuneration. The Group's fi-
+nancial performance indicators are intended to preserve a
+balance between profitability, the efficient use of resources
+and adequate liquidity. How these metrics are computed is
+illustrated in the > Calculations graphic. Their performance
+in the reporting year is described in the > Report on economic
+position and in the > Non-financial statement.
+Competition
+Deutsche Post
+94.0%
+6.0%
+1 Includes all advertising media with external distribution costs; the placement
+costs are shown as ratios.
+2 Based on expanded market data, primarily relating to online activities.
+Source: company estimates.
+DHL Parcel for companies and private individuals
+We maintain a dense network of parcel acceptance and
+drop-off points in Germany, which we expanded in the re-
+porting year.
+We offer support to businesses to grow their online
+retail business. Along with the Supply Chain division, we are
+able to cover the entire logistics chain through to returns
+management on request.
+Various services enable individualised and conve-
+nient parcel delivery for private customers: parcels can be
+delivered to an alternative address, a specific retail outlet
+or a Paketshop at short notice. Furthermore, registered
+customers can now have all items sent automatically to a
+Packstation or selected retail outlet.
+The German parcel market continues to be subject to
+competition-driven structural changes, with established
+as well as new companies are offering their services. In
+e-commerce, the delivery of a portion of shipments is han-
+dled by the merchant's own distribution networks.
+We will increase the number of Packstations to 15,000
+by 2023 to make it even more convenient for customers
+all over Germany to send and receive parcels and to create
+an environmentally friendly, traffic-reduced parcel delivery
+system.
+Fast and reliable delivery
+According to surveys conducted by Quotas, a quality re-
+search institute, around 88% of all domestic letters posted
+in Germany during daily opening hours at our retail outlets
+or before final collection were delivered the very next day in
+the year under review. Around 98% were delivered within
+two days. This puts us well above the legally required levels
+of 80% (D+1) and 95% (D+2).
+In the parcel business, around 79% of items were de-
+livered the next working day in the year under review. This
+reflects parcels collected from business customers that
+were delivered on the following day. These figures can be
+deemed very positive in light of the highly demanding op-
+erational situation caused by the pandemic and growing
+number of online orders.
+Our approximately 25,500 sales points were open
+for an average of 55 hours per week in the year under re-
+view, as was the case in the previous year. Consumers who
+use the products and services offered by Deutsche Post
+retail outlets primarily operated mostly by retailers are
+surveyed annually regarding customer satisfaction by
+“Kundenmonitor Deutschland". This study attested to the
+high level of approval enjoyed by Deutsche Post retail out-
+lets: a total of 94.5% of the persons surveyed were satisfied
+with quality and service (previous year: 94.6%). In addi-
+tion, customers gave our sales points an average rating
+of 4.31 out of 5 stars in the Deutsche Post location finder
+(previous year: 4.39). The fixed-location acceptance and
+sales network has grown to around 34,000 sites (previous
+year: 32,000) thanks to the expansion of our Packstation
+network.
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+Deutsche Post DHL Group - 2021 Annual Report
+24
+24
+Strategy
+Navigating safely through a volatile, fast-changing
+environment
+We announced Strategy 2025 in October 2019. It draws on
+the successful elements of Strategy 2015 and 2020, which
+established us as the world's leading logistics company.
+Building on this strong foundation, Strategy 2025 helps
+us to cement and grow that leading position as the pace of
+change in the world around us accelerates.
+We defined our strategic goals in a comprehensive
+process in which we worked with relevant stakeholders in-
+cluding employees, customers, suppliers and investors. Our
+Strategy House illustrates the most important elements of
+our strategy and how they are connected.
+Strategy 2025 navigated us safely through the volatile,
+fast-changing environment brought about by the global
+pandemic. As part of a yearly assessment, we undertook a
+detailed review of our corporate strategy and found it not
+only to be fundamentally sound, but that it had also made
+Deutsche Post DHL Group more resilient in the face of the
+pandemic. That resilience is the result of disciplined and
+consistent execution of our Group strategy, with each and
+every element playing a key role.
+Market volume²: €28.1 billion
+Strategic triad of purpose, vision and values
+German advertising market¹, 2021
+On request, our Dialogue Marketing unit offers end-to-end
+solutions to advertisers - from address services and tools
+for design and creation to printing, delivery and evaluation.
+This supports cross-channel, personalised and automated
+dialogue so that digital and physical items with interrelated
+content are delivered according to a co-ordinated timetable
+and without any coverage waste.
+37
+Deutsche Post O
+parcel centres
+Around
+6.7
+million parcels
+per working day
+The postal service for Germany
+As Europe's largest postal company, our core business
+is the transport, sorting and delivery of documents and
+goods. We maintain a nationwide post and parcel network
+in Germany as depicted in the graphic opposite, which we
+continually expand in consideration of digitalisation and
+sustainability.
+Our products and services in the mail communication
+segment are targeted towards both private and business
+customers and range from physical and hybrid letters to
+special products for the delivery of goods, and include ad-
+ditional services such as registered mail, cash on delivery
+and insured items. We expanded our range in 2021 with
+digital products such as stamps with data matrix codes and
+the introduction of Poststations as an uninterrupted access
+point for a variety of postal services.
+In the year under review, the German market for mail
+communication for business customers was worth around
+€4.2 billion (previous year: around €4.3 billion). The struc-
+tural decline in mail volumes was offset somewhat by the
+high level of mail-in ballots in the German federal and state
+elections. We monitor the market in which we compete, in-
+cluding the companies that operate as service providers
+in this market - i.e. both competitors offering end-to-end
+services and consolidators providing partial services. Our
+market share declined slightly to 61.4% compared with the
+prior year (62.6%).
+German mail communication market
+business customers, 2021
+Market volume: around €4.2 billion
+Deutsche Post
+Competition
+Source: company estimates.
+61.4%
+38.6%
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+Deutsche Post DHL Group - 2021 Annual Report
+23
+23
+Cross-channel dialogue
+The advertising market in Germany grew by 5.9% in
+2021 to come in at €28.1 billion after the largely pandemic-
+related decline in the previous year. Due to an expansion of
+market data, primarily relating to online activities, those
+reported here diverge from the presentation in the previous
+year. Our share of the highly fragmented advertising market
+declined slightly to 6.0% (previous year, adjusted: 6.4%).
+• Group: around €8.0 billion +/- max. of 5%
+Our purpose of "Connecting people, improving lives" has
+never been more important than it is today. In keeping with
+our vision of being THE logistics company for the world,
+Deutsche Post DHL Group strives to continue leading the
+industry and doing so in an increasingly digital and sus-
+tainability-oriented world. Our core values "Respect and
+Results" are just as much a part of our strategy today as
+they have been in the past.
+STRATEGY 2025
+• DHL divisions: around €7.0 billion +/- max. of 4%
+Deutsche Post DHL Group - 2021 Annual Report
+25
+45
+The triad of purpose, vision and values underpins the
+three building blocks of Strategy 2025 - sustained execu-
+tion excellence along the three bottom lines, becoming an
+employer, provider and investment of choice, a focus on
+our profitable core business and digital transformation. We
+have also cemented sustainability into every part of our
+business strategy through purpose and our own values.
+Respect and Results mean that we are committed to each
+other and together make a positive social contribution. Our
+purpose "Connecting people, improving lives" guides our
+efforts and sense of responsibility.
+Execution excellence along the three bottom lines
+Our mission "Excellence. Simply delivered." is defined by
+the three bottom lines. We believe having motivated and
+skilled employees is the key to providing excellent service
+quality and achieving profitable growth.
+At Deutsche Post DHL Group, when we speak of our
+common DNA we mean the set of behaviours, tools and
+programmes that we put into practice throughout the
+Group. Group-wide programmes such as Certified, First
+Choice and Safety First play an important part in building
+the common DNA by influencing what we do on a day-to-
+day basis. Irrespective of division, geographical region or
+function, our common DNA is an expression of who we are
+and how we do things at Deutsche Post DHL Group.
+As an integral part of our strategy, sustainability is
+anchored along our three bottom lines. New policies and
+regulations across industries, increasingly changing buying
+habits and the growing focus on sustainable investments
+have motivated us to serve as a sustainability role model
+in our industry and to set ourselves ambitious targets. We
+therefore made sustainability a cornerstone of our Strategy
+2025 and an essential element of our mission.
+With our ESG roadmap, we build on our past achieve-
+ments and plot a course for future success. The roadmap
+will serve as guidance in the three areas of environment,
+social responsibility and corporate governance. Clear ob-
+jectives were set for each of these areas. We strive for envi-
+ronmentally friendly logistics and aim to be a great place to
+work for all and a trustworthy company and partner.
+We set transparent, time-bound targets and KPIs that
+enable us to make sustainability an integral component in
+the yearly planning and strategic cycle, with targets inte-
+grated into our decision-making process. One key target is
+to increase the pace of our company's planned decarbon-
+isation, Non-financial statement.
+Divisions focus on profitable core business
+Our divisions continue to focus relentlessly on their prof-
+itable core. In so doing, they ensure that our services and
+solutions can be provided reliably, even in unusual circum-
+stances.
+Digital transformation as a key lever
+Representing a significant lever for sustainable business
+growth, digital transformation plays a crucial role in our
+strategy. We therefore invest in initiatives designed to im-
+prove the experiences our customers and employees have
+with the company and to increase operational efficiency.
+Our digitalisation framework has two elements. We are up-
+grading the IT infrastructure and utilising new technologies
+throughout the Group. At the same time, we are scaling busi-
+ness models that augment our core. From 2019 to 2025, our
+digital transformation spending is expected to reach around
+€2 billion and to contribute at least €1.5 billion annually to
+earnings by 2025.
+In our divisions, we have several initiatives and pro-
+grammes in place to upgrade the IT backbone, ensure our
+future agility and increase IT efficiency. In our Centres of
+Excellence, we have combined technologies and expertise,
+e.g. in the areas of automation and robotics, data science,
+API, blockchain and the Internet of Things. They are allow-
+ing us to foster and build up in-house know-how and scale
+digital solutions across the divisions.
+Research and development
+As a service provider, Deutsche Post DHL Group does not
+engage in research and development activities in the nar-
+rower sense and therefore has no significant expenses to
+report in this connection.
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+Deutsche Post DHL Group - 2021 Annual Report
+26
+Steering metrics
+Digitalisation
+-
+Supported by Group functions
+Our Business Unit focus
+Delivering excellence
+in a digital world
+Know your people
+Employer
+of Choice
+Our Purpose
+Connecting people,
+improving lives
+Our Vision
+We are THE logistics company for the world
+Know your customers
+of Choice
+Provider *
+CONNECTING PEOPLE
+IMPROVING LIVES
+Investment
+of Choice
+Know your numbers
+PROFITABLE
+CORE
+Our Values
+Respect & Results
+Our Mission
+Excellence. Simply delivered.
+Along the three bottom lines in a sustainable way
+Enabled by Common DNA
+Strengthening the profitable core
+Є COMBINED MANAGEMENT REPORT GENERAL INFORMATION
+1.805
+1.35
+16,455
+>100
+949
+2,456
+Other
+1,940
+2,205
+13.7
+493
+590
+Total
+11,579
+18,108
+56.4
+3,212
+5,894
+60.9
+>100
+19.7
+83.5
+1
+Prior-year figures adjusted due to reclassifications.
+7,115
+3,502
+Ocean freight
+2,848
+34
++/-%
+Impacts of the pandemic on our business
+The global forwarding market was still highly affected by
+the COVID-19 pandemic in 2021. Strong demand for goods
+drove the volume recovery whilst capacity shortages and
+infrastructure problems in both air and ocean freight
+caused freight rates to increase, at times considerably.
+Seabury Consulting forecasts an increase in total
+tonnes flown worldwide of 18.4% for 2021.
+The ocean freight market also registered an upturn
+in volumes, though to differing degrees depending on the
+region. Vessel capacity shortages, overstretched ports or
+those closed due to pandemic outbreaks, along with the
+blockage of the Suez Canal, resulted in congestion.
+Similar to air and ocean freight, the European road
+transport market also experienced an extraordinary and
+challenging year in 2021. With COVID lockdowns easing and
+vaccination attempts rising, economic growth recovered
+and demand increased significantly. Combined with signif-
+icantly altered market structures and shortage in important
+raw materials, this caused tremendous capacity constraints.
+2020
+Global Forwarding: volumes
+2021
+adjusted¹
+Q4 2020
+adjusted¹
+Q4 2021
++/-%
+Air freight
+6,137
+43.2
+1,770
++/-%
+Thousands
+Air freight exports
+Ocean freight
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+Higher gross profit in air and ocean freight, capacity
+shortages in ocean freight
+We registered an increase of 25.7% in air freight volumes
+in 2021, due mainly to the recovery in global merchandise
+trade. The highest growth was attributable to the trade
+lanes between Asia and the United States. Air freight rev-
+enue exceeded the prior-year level by 43.2%; gross profit
+improved by 18.5%. In the fourth quarter of 2021, air freight
+revenue rose by 60.9% whilst gross profit was up 31.9%.
+Ocean freight volumes for the year under review were
+up 8.7% year-on-year. Ocean freight revenue increased by
+103.2% and gross profit improved by 77.5% - strongly im-
+pacted by centrally sourced freight capacity. Continued tight
+capacities contributed to high freight rates. In the fourth
+quarter of 2021, ocean freight revenue (+158.8%) and gross
+profit (+93.5%) both saw significant improvements.
+Revenue increase in European overland transport
+business
+Revenue in the Freight business unit increased by 11.6% to
+€4,848 million in the reporting year; positive currency ef-
+fects amounted to €3 million. Volumes were up 7.8% year-
+on-year. The gross profit of the business unit also rose by
+11.0% to €1,239 million. The fourth quarter also proved to
+be stronger with revenue 7.5% above the previous year.
+Earnings substantially exceed prior-year figure
+Division EBIT rose from €592 million to €1,303 million,
+thus more than doubling in the year under review. With the
+EBIT margin at 5.7%, EBIT amounts to 28.3% of gross profit.
+At €403 million, fourth quarter division EBIT was also sig-
+nificantly higher than the prior-period level of €173 million.
+The special bonus once again paid out in the year under
+review amounted to €14 million.
+Deutsche Post DHL Group - 2021 Annual Report
+Revenue in the division increased by 44.4% in the year
+under review to €22,833 million. Excluding negative cur-
+rency effects of €84 million, revenue was up 44.9% year-
+on-year. In the fourth quarter of 2021, revenue amounted to
+€7,134 million and exceeded the prior-year figure by 63.4%.
+In the Global Forwarding business unit, revenue increased
+by 56.4% to €18,108 million in the reporting year. Excluding
+negative currency effects of €87 million, the increase was
+57.1%. At €3,366 million, gross profit in the Global Forward-
+ing business unit was likewise up on the prior-year figure
+of €2,564 million.
+S
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+Deutsche Post DHL Group - 2021 Annual Report
+36
+SUPPLY CHAIN
+Key figures, Supply Chain
+€m
++/-%
+2020
+adjusted¹
+35
+Positive revenue trend
+17.4
+4.0
+802
+1 Prior-year figures adjusted due to reclassifications.
+2 Twenty-foot equivalent units.
+2020
+adjusted¹
+2021
++/-%
+Q4 2020
+adjusted¹
+Q4 2021
++/-%
+tonnes
+1,667
+2,096
+25.7
+478
+561
+TEU²
+2,891
+3,142
+8.7
+771
+54
+Deutsche Post DHL Group - 2021 Annual Report
+€m
+Global Forwarding: revenue
+716
+671
+-6.3
+Revenue in the Americas region rose by 28.9% to
+€5,120 million in 2021. Excluding negative currency effects
+of €89 million, revenue rose by 31.2%. Per-day TDI volumes
+were up 18.8% compared with the previous year. Per-day
+TDI revenues grew by 38.5%. In the fourth quarter of 2021,
+shipment volumes improved by 5.3% and per-day interna-
+tional revenues rose 30.3%.
+In the Asia Pacific region, revenue improved by 24.3%
+to €8,871 million in the reporting year. The revenue figure
+includes foreign currency gains of €13 million. Revenue
+growth excluding currency effects was 24.1%. In the TDI
+product line, revenue per day increased by 25.1% and per-
+day volumes by 6.2%. Changes in the fourth quarter of 2021
+came to 20.9% for revenues per day and -2.1% for per-day
+volumes.
+Revenue in the MEA (Middle East and Africa) region
+improved by 8.3% to €1,361 million in the reporting period.
+Excluding negative currency effects of €32 million, revenue
+rose by 10.8%. Per-day TDI revenues increased by 17.4%
+and per-day volumes decreased by 1.0%. Changes in the
+fourth quarter of 2021 came to 6.1% for revenues per day
+and -15.7% for per-day volumes.
+EBIT up sharply year-on-year
+Division EBIT climbed 53.4% in 2021 to €4,220 million.
+Return on sales increased from 14.4% to 17.4%. The spe-
+cial bonus once again paid out amounted to €37 million.
+Fourth-quarter EBIT was up by 6.8% to €1,111 million.
+4.9
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+Key figures, Global Forwarding, Freight
+€m
+2020
+2021
++/-%
+Q4 2020
+Q4 2021
+Revenue
+GLOBAL FORWARDING, FREIGHT
+645
+615
+-0.6
+16.0
+6.0
+Q4 2021
+83.0
+6.3
++/-%
+21.2
+5.0
+1 To improve comparability, product revenues were translated at uniform exchange rates. These revenues are also the basis for the weighted calculation of working days.
+Express: volume by product
+Items per day (thousands)
+Time Definite International (TDI)
+Time Definite Domestic (TDD)
+2020
+1,097
+2021
+1,210
++/-%
+10.3
+Q4 2020
+Q4 2021
++/-%
+1,289
+1,281
+of which Global Forwarding
+adjusted¹
+15,813
+adjusted¹
+22,833
+1,303
+>100
+173
+403
+7.5
+-7.1
+>100
+Return on sales (%) 2
+3.7
+5.7
+4.0
+5.6
+Operating cash flow
+665
+1,008
+51.6
+259
+622
+>100
+1 Prior-year figures adjusted due to reclassifications.
+2 EBIT/revenue.
+592
+2021
+Profit from operating activities (EBIT)
+-28
+44.4
+4,365
+7,134
+11,579
+18,108
+56.4
+3,212
+5,894
+63.4
+83.5
+Freight
+4,345
+4,848
+11.6
+1,181
+1,270
+Consolidation/Other
+-111
+-123
+-10.8
+-30
++/-%
+Q4 2020 Q4 2021
+adjusted¹
+Revenue
+Earnings performance significantly higher than
+previous year
+New business worth €1,409 million secured
+The division concluded additional contracts worth
+€1,409 million (annualised revenue) in the reporting period,
+which corresponds to a contract volume of €5,104 million.
+This represents a further year-on-year increase of 8.7%.
+The Retail including e-commerce, Consumer, and Life
+Sciences & Healthcare sectors accounted for the majority
+of the new business. Solutions based on e-commerce ac-
+counted for a 28% share of new business. The annualised
+contract renewal rate remained at a consistently high level.
+15%
+38%
+47%
+4%
+6%
+12%
+EBIT in the division rose significantly to €705 million in
+the year under review (previous year: €424 million). In the
+previous year, EBIT was affected by extraordinary expenses
+of €62 million caused by nonrecurring impairment losses
+resulting from lockdown measures and the payment of
+a special bonus totalling €52 million. The special bonus
+once again paid out in the year under review amounted to
+€47 million. Strong revenue growth, productivity improve-
+ments and digitalisation initiatives contributed significantly
+to the earnings growth. The EBIT margin was 5.1% in the
+year under review. EBIT for the fourth quarter of 2021 rose
+from €174 million to €198 million.
+13%
+22%
+29%
+Asia Pacific
+Americas
+of which Europe/Middle East/Africa/Consolidation
+Others
+Engineering & Manufacturing
+Life Sciences & Healthcare
+14%
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+Deutsche Post DHL Group - 2021 Annual Report
+ECOMMERCE SOLUTIONS
++/-%
+14.4
+24.6
+617
+495
+27.6
+2,079
+1,629
+Q4 2021
+1,664
+1,455
+22.8
+5,928
+4,829
+Q4 2020
++/-%
+2021
+2020
+of which Americas
+Revenue
+€m
+Key figures, eCommerce Solutions
+Technology
+Consumer
+Auto-mobility
+of which Retail
+Supply Chain: revenue by sector and region, 2021
+Total revenue: €13,864 m
+66.3
+705
+424
+4.4
+6.9
+1.5
+5.7
+<-100
+-14
+-3
+<-100
+-44
+-9
+534
+505
+12.8
+2,046
+1,814
+Asia Pacific
+1,329
+1,310
+13.5
+5,266
+174
+Europe
+198
+3.4
+and contract renewals provide further reinforcement. In
+the fourth quarter of 2021, revenue increased by 4.4% to
+€3,655 million.
+Revenue in the division rose by 10.5% to €13,864 million
+in the year under review. Excluding negative currency
+effects of €30 million, revenue exceeded the prior-year
+figure by 10.7%. The strong performance registered dur-
+ing the course of the year extended to all regions and
+sectors; growing e-commerce business, new business
+Strong revenue growth in the year under review
+The COVID-19 pandemic once again impacted the contract
+logistics market in 2021. In some parts, certain sectors
+were confronted with local lockdown measures and eco-
+nomic restrictions, thus the pandemic is accounting for
+global shortages such as semiconductor chips. We were
+able to manage our customers' supply chains well thanks to
+our flexibility, our standardised processes and our targeted
+data analyses.
+Impacts of the pandemic on our business
+2 EBIT/revenue.
+1 Prior-year amounts adjusted due to reclassifications.
+Operating cash flow
+Return on sales (%) 2
+Profit from operating activities (EBIT)
+Consolidation/Other
+-5.0
+664
+699
+48.8
+5.4
+5.0
+5.1
+1,582
+1,063
+13.8
+5.8
+2,618
+19.9
+International
+Parcel Germany
+of which Post Germany
+Revenue
+€m
+Key figures, Post & Parcel Germany
+EBIT in the division improved by 9.7% to €1,747 million in
+the year under review. This was due mainly to higher rev-
+enues in the domestic and international parcel business and
+strict cost management. In contrast, Mail Communication
+saw revenue drop slightly. The EBIT figure includes the spe-
+cial bonus payment to employees totalling €52 million. The
+special bonus amounting to €51 million was included in the
+previous year's figure. Division EBIT in the fourth quarter of
+2021 totalled €576 million, a decline of 14.5%. The higher
+revenue in the prior-year quarter due to the pandemic as
+well as higher material costs to ensure high quality during
+the Christmas season influenced EBIT.
+EBIT improvement over prior year
+Other/Consolidation
+During the year under review, imports shipped as let-
+ter mail were significantly impacted by declining volumes
+of lightweight shipments of goods coming from China due
+to changes in European import rules. By contrast, imports
+shipped as parcels again recorded significant growth over
+the course of the year. In terms of goods and documents
+exported to the rest of Europe and the world, document
+shipments declined slightly, whereas the number of mer-
+chandise shipments rose again.
+In the course of 2021, Dialogue Marketing's revenue
+and sales volumes outperformed their levels of the previ-
+ous year, which was affected by the lockdown, when adver-
+tising expenditure was reduced in the retail segment in
+particular.
+38
+Deutsche Post DHL Group - 2021 Annual Report
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+37
+37
+In the reporting year, Mail Communication saw revenue and
+volumes follow the overall sustained downward trend, as
+expected. This development was mitigated somewhat by
+the unusually high percentage of people voting by mail in
+Germany's federal and state elections. After three years of
+price stability, the prices of some mail products subject to
+regulation were increased moderately as of 1 January 2022,
+Expected developments, opportunities and risks.
+Varying business unit performance
+The German parcel business saw pandemic-related
+restrictions on traditional retail strongly boost growth
+until mid-year. Despite shops increasingly opening again,
+the volumes remained at a high level in the second half.
+Supported by rate increases, revenue generated by Parcel
+Germany rose by 14.7% in the year under review.
+Profit from operating activities (EBIT)
+Return on sales (%) 1
+Operating cash flow
+12,549
+13,864
+10.5
+3,501
+3,655
+of which EMEA (Europe, Middle East and Africa)
+6,104
+6,596
+8.1
+1,689
+1,806
+Americas
+4,640
+2021
+2020
+Post Germany
+€m
+Post & Parcel Germany: revenue
+1 EBIT/revenue.
+At €17,445 million, division revenue exceeded the prior-year
+figure by 6.0% in the year under review. The increase was
+driven in particular by continued strong growth in the Ger-
+man parcel business. Revenue for the fourth quarter of
+2021 was down slightly by 0.6% versus the prior year.
+Revenue surpasses prior-year level
+The parcel market is continuing to register significant
+growth driven by the ongoing shift from retail sale busi-
+nesses to online sales across many categories of goods.
+The Dialogue Marketing business unit performed well:
+the advertising spend in mail-order retailing grew in con-
+trast to the weak previous year, primarily an effect of the
+pandemic.
+>100
+417
+158
+Profit from operating activities (EBIT)
+-3
+-7
+9.1
+-10
+-11
+Other/Consolidation
+195
+182
+21.2
+719
+593
+Asia
+8.9
+855
+785
+75
+3,140
+93
+Return on sales (%)¹
+Impacts of the pandemic on our business
+The ongoing COVID-19 pandemic has accelerated the struc-
+tural transformation already underway in the mail delivery
+market. As conventional letter mail volumes containing
+documents continue to decline, volumes of goods ship-
+ments are growing, in some cases substantially, although
+the retail sector was largely open for business in the year
+under review.
+POST & PARCEL GERMANY
+Significant year-on-year increase in EBIT
+EBIT in the division increased to €417 million in the year
+under review (previous year: €158 million). This was due
+mainly to higher revenues in the B2C business and strict
+cost management. In the previous year, nonrecurring
+impairment losses of €30 million were recognised in the
+second quarter, and the payment of a special bonus of
+€10 million was recognised in the third quarter. The special
+bonus paid once again amounted to €11 million in the re-
+porting period. The EBIT margin was 7.0%. EBIT amounted
+to €93 million (previous year: €75 million) in the fourth
+quarter of 2021.
+The division generated revenue of €5,928 million in the
+year under review, up 22.8% on the prior-year figure. The
+increase in revenue in all regions is attributable to higher
+volumes in the B2C business. Excluding negative currency
+effects of €38 million, revenue was up a total of 23.5% year-
+on-year. Division revenue increased by 14.4% in the fourth
+quarter of 2021 to €1,664 million.
+Revenue growth in all regions
+Besides the ongoing global shift from traditional retail
+businesses to e-commerce, the pandemic and pandemic-
+related factors have continued to accelerate the trend
+towards online shopping in 2021. Across all regions, we
+have seen increases in shipping volumes, especially in the
+B2C e-commerce sector.
+Impacts of the pandemic on our business
+1 EBIT/revenue.
+>100
+99
+37
+94.1
+654
+337
+Operating cash flow
+5.6
+5.2
+7.0
+3.3
+7.1
+57.1
+24.0
+Q4 2020
+68.5
+8,788
+73.6
+Q4 2021
+Q4 2020
++1-%
+2021
+2020
+-50.2
+346
+695
++/-%
+6.3
+1,703
+12.1
+14.0
+10.0
+9.7
+-14.5
+576
+674
+1,811
+8,030
+7,995
+-0.4
+1.4
+711
+701
+Other/Consolidation (Post Germany)
+4.5
+530
+507
+0.4
+1,811
+1,804
+-2.7
+1,478
+1,519
+-0.9
+5,473
+5,525
+-0.6
+2,197
+2,211
+9.7
+185
+1,747
+-20.0
+-0.6
+4,771
++/-%
+Q4 2021
+Q4 2020
+4,801
++/-%
+6.0
+17,445
+Reported financial liabilities
+8,030
+19,897
+54
++ Adjustment for pensions
+5,826
+Surplus cash and near-cash investments¹
+Debt
+4,350
+20,520
+13
+3,777
+4,089
+19,572
+FFO to debt (%)
+37.6
+Financial liabilities at fair value through
+profit or loss
+7,995
+-0.4
+2,211
+20
+25
+-15.9
+95
+113
+-1.7
+714
+726
+7.2
+2,570
+2,397
+0.1
+1,840
+1,839
+14.7
+6,785
+5,915
+-0.6
+2,197
+1,592
+189
+2.2
+Parcel Germany
+-6,224
+-2,250
+-4,824
+-3,640
+2,918
+9,993
+7,699
+Net cash from operating activities
+-1,672
+-1,013
+4,482
+233
+1,809
+Change in cash and cash equivalents
+3,531
+4,482
+Cash and cash equivalents as at 31 December
+Q4 2020
+2021
+2020
+-1,055
+Q4 2021
+3,531
+-444
+2,616
+-2,184
+-876
+Net cash used in investing activities
+Net cash used in financing activities
+97
+7,711
+Funds from operations, FFO
+91
+550
+556
+67
+10,423
+8,103
+Operating cash flow before changes in
+working capital
+2020
+2021
++ Adjustment for pensions
++ Interest received
+Interest paid
+€m
+FFO to debt
+interests of shareholders, also takes the creditor require-
+ments into account. The finance strategy will be further
+enhanced in 2022.
+The Group pursued its proven finance strategy once
+again in the 2021 financial year, which, in addition to the
+Corporate Finance's main task is to minimise financial
+risk and the cost of capital in addition to preserving the
+Group's financial stability and flexibility over the long term.
+In order to maintain its unrestricted access to the capital
+markets, the Group continues to aim for a credit rating ap-
+propriate to the sector.
+The Group's financial management activities include man-
+aging liquidity along with hedging against fluctuations in
+interest rates, currencies and commodity prices, arranging
+Group financing, issuing guarantees and letters of comfort
+and liaising with rating agencies. Responsibility for these
+activities rests with Corporate Finance at Group headquar-
+ters in Bonn, which is supported by three Regional Trea-
+sury Centres in Bonn (Germany), Weston (Florida, USA) and
+Singapore. The regional centres act as interfaces between
+Group headquarters and the operating companies, advise
+the companies on financial management issues and ensure
+compliance with Group-wide requirements.
+Financial management is a centralised function in
+the Group
+€m
+Selected cash flow indicators
+Financial position
+39
+Q4 2021
+3,942
+3,889
+Q4 2020
++/-%
+-0.3
+14,216
+14,260
+2021
+2020
+of which Mail Communication
+Dialogue Marketing
+Parcel Germany
+Post Germany
+Post & Parcel Germany: volumes
+Mail items (millions)
+of which Mail Communication
+Dialogue Marketing
+0.1
+1,840
+1,839
+14.7
+6,785
+5,915
++/-%
+28.4
++/-%
+1.4
+51.4
+6,420
+-1.7
+52
+Deutsche Post DHL Group - 2021 Annual Report
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+102
+10,066
+-2.0
+488
+498
+12.6
+1,818
+1,614
+6.5
+1,992
+1,870
+1.5
+6,928
+6,827
+-3.8
+1,687
+1,753
+6,314
+1 Reported cash and cash equivalents and investment funds callable at sight,
+less cash needed for operations.
+19,098
+The FFO to debt performance metric saw a significant
+year-on-year increase in the year under review because
+funds from operations rose whilst debt decreased.
+Key figures, Express
+€m
+Revenue
+2020
+2021
++/-%
+Q4 2020
+Q4 2021
+19,135
+33
+24,217
+5,599
+6,856
+of which Europe
+8,110
+10,193
+25.7
+2,424
+2,863
+Americas
+26.6
+Deutsche Post DHL Group - 2021 Annual Report
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+Revenue in the Europe region increased by 25.7% to
+€10,193 million in the reporting year, including negative
+currency effects of €10 million, without which year-on-year
+revenue growth was 25.8%. In the TDI product line, per-
+day revenue increased by 29.8% and per-day shipment vol-
+umes by 12.4%. In the fourth quarter of 2021, international
+revenues per day were up by 20.1% and per-day shipment
+volumes by 0.3%.
+211
+Funds from operations (FFO) represents operating cash
+flow before changes in working capital plus interest re-
+ceived less interest paid and adjusted for pensions, as
+shown in the FFO to debt calculation. In addition to finan-
+cial liabilities and surplus cash and near-cash investments,
+the figure for debt also includes pension liabilities funded
+by provisions.
+1 Proposal.
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+Deutsche Post DHL Group - 2021 Annual Report
+52
+32
+Divisions
+EXPRESS
+Continuing to expand and modernise network and
+intercontinental fleet
+In 2018, we contracted with Boeing to purchase 14 new
+B777F aircraft as part of the upgrading of our intercon-
+tinental fleet. By the end of 2021, all of the new aircraft
+ordered were delivered and entered service. In 2020, we
+placed an order with Boeing for an additional eight new
+B777 freighters; four of these aircraft are scheduled for
+delivery during 2022.
+In Europe, all critical hubs have optimally utilised their
+capacities. Brexit and VAT22 transitions were successful.
+One important event was the opening of the new hub at
+Paris Charles de Gaulle Airport. During 2021, two Airbus
+A321 conversions and two A330-300 conversions entered
+service. We have also committed to seven B737-800 air-
+craft which will be delivered during 2022. Moreover, we
+founded the new company DHL Air Austria as our second
+European airline, along with European Air Transport Leipzig.
+Major projects in the Americas region include the ex-
+pansion of our hub at Miami International Airport and of our
+gateway at Ontario International Airport. In the US, three
+additional converted Boeing B737-800 aircraft entered
+service. In Latin America, a converted Boeing B767-300
+was introduced. In addition, dedicated flights from Miami
+to Santiago de Chile were introduced. We are expanding
+our retail footprint, adding 56 new retail service points and
+more than 700 retail partners.
+In the Asia-Pacific region, we added several new in-
+tercontinental connections, whilst also expanding our air
+freight capacity to keep pace with the strong intra-Asia
+trade. Of the three previously acquired Airbus A330-300
+aircraft for conversion, the third unit entered service in
+early 2021. Another two converted aircraft of this model are
+planned for delivery during 2022. The additional aircraft
+enabled the introduction of a direct flight between Hong
+Kong (HKG) and Penang (PEN). In October, we opened the
+expanded Bengaluru Gateway in India.
+Also in the MEA region, we are accelerating our re-
+gional ground and air investments, with new facilities in
+Qatar, Bahrain and the United Arab Emirates. Furthermore,
+we acquired seven B767-300 aircraft for conversion, of
+which six entered service in 2021. The additional delivery
+is planned for the start of 2022. With these extensions, daily
+network flights have been added between Bahrain (BAH),
+Hong Kong (HKG) and Bangalore (BLR). In sub-Saharan
+Africa, we committed to four converted ATR72-500 aircraft
+with the intention these will replace existing older aircraft.
+Impacts of the pandemic on our business
+The pandemic had a direct impact on demand for our net-
+work capacity, as it accelerated online sales growth. In al-
+most all regions, the shipping volumes of the B2B and B2C
+e-commerce sectors increased considerably and exceeded
+expectations. The drastic increase in shipment weights due
+to the recovery of B2B was also significant. At the same time,
+the pandemic seriously impacted the supply of air cargo
+capacity; particularly passenger airlines were impacted,
+with many flights cancelled and aircraft grounded. Our
+ability to purchase cargo capacity on commercial flights
+was curtailed - and, for some lanes, this impact has contin-
+ued through 2021. To address the increased demand and
+protect service to destinations to which commercial flight
+services were reduced or suspended, we have adapted our
+air network operations by adding more of our own dedi-
+cated flights.
+During 2021, we expanded our air network with the ad-
+dition of several new direct services, for example, between
+East Midlands (EMA) and Miami (MIA), Hong Kong (HKG)
+and Miami (MIA), Singapore (SIN) and Melbourne (MEL)
+and Shenzhen (SZX) and Los Angeles (LAX). In addition,
+we have introduced the first direct flight from Guangzhou
+(CAN) to the Americas.
+International business posts strong revenue growth
+Revenue in the division increased by 26.6% in the year
+under review to €24,217 million. This includes negative
+currency effects of €157 million. Excluding these effects,
+the increase in revenue was 27.4%. The revenue figure also
+reflects the fact that fuel surcharges were higher than in
+the previous year in all regions. Excluding currency effects
+and fuel surcharges, revenue was up by 22.9%. Per-day
+revenues and shipment volumes were up in both our Time
+Definite International (TDI) and our Time Definite Domestic
+(TDD) product lines in the reporting year.
+3,971
+5,120
+28.9
+1,152
+1,040
+1,111
+4.6
+-6.5
+6.8
+Return on sales (%)¹
+14.4
+17.4
+18.6
+Operating cash flow
+4,382
+5,894
+34.5
+1,381
+16.2
+1,331
+-3.6
+1 EBIT/revenue.
+Express: revenue by product
+€m per day¹
+Time Definite International (TDI)
+Time Definite Domestic (TDD)
+2020
+57.3
+5.0
+2021
+53.4
+20
+4,220
+Profit from operating activities (EBIT)
+1,464
++/-%
+22.5
+18.1
+27.1
+Asia Pacific
+7,139
+8,871
+24.3
+2,046
+2,560
+25.1
+MEA (Middle East and Africa)
+1,257
+1,361
+8.3
+348
+364
+Consolidation/Other
+-1,342
+-1,328
+1.0
+-371
+-395
+2,751
+19
+Dividend per no-par-value share (€).
+17
+Dividend of €1.80 per share proposed
+Our finance strategy calls for paying out 40% to 60% of
+net profits as dividends as a general rule. The Board of
+Management and the Supervisory Board will therefore
+propose to the shareholders at the Annual General Meet-
+ing on 6 May 2022 a dividend of €1.80 per share for the
+2021 financial year (previous year: €1.35). The payout
+ratio in relation to the consolidated net profit attributable
+to Deutsche Post AG shareholders amounts to 43.6%.
+Adjusted for significant one-off effects, the payout ratio is
+42.9%. The net dividend yield based on the year-end closing
+price for our shares is 3.2%. The dividend will be disbursed
+on 11 May 2022.
+Total dividend and dividend per no-par-value share
+€m
+2,205
+18
+1.80
+31
+EBIT after asset charge (EAC) grows significantly
+EAC improved significantly in 2021, rising from €2,199 mil-
+lion to €5,186 million. Whilst EBIT was up considerably, the
+imputed asset charge rose only moderately.
+€m
+Net asset base (consolidated)¹
+€m
+31 Dec.
+2020
+31 Dec.
+2021
++/-%
+Intangible assets and property,
+plant and equipment
+EBIT after asset charge (EAC)
+Deutsche Post DHL Group - 2021 Annual Report
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+40
+Funds from operations were up by €2,355 million to
+€10,066 million, mainly on account of a positive change in
+operating cash flow before changes in working capital.
+Debt decreased by €948 million year-on-year to
+€19,572 million. Reported financial liabilities increased,
+mainly as a result of higher lease liabilities. Conversely, a
+bond was repaid in the amount of €750 million in the year
+under review. The adjustment for pensions decreased,
+because pension obligations decreased whilst the plan
+assets increased. Surplus cash and near-cash investments
+dropped despite free cash flow of €4,092 million, primarily
+due to dividends paid out, payments for the share buy-back
+programme, the repayment of a bond and increased cash
+needed for operations.
+Cash and liquidity managed centrally
+The cash and liquidity of our globally operating subsidiaries
+is managed centrally by Corporate Treasury. Approximately
+80% of the Group's external revenue is consolidated in cash
+pools and used to balance internal liquidity needs. In coun-
+tries where this practice is ruled out for legal reasons, inter-
+nal and external borrowing and investment are managed
+centrally by Corporate Treasury. In this context, we observe
+a balanced banking policy in order to remain independent
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+of individual banks. Our subsidiaries' intra-Group revenue is
+also pooled and managed by our in-house bank (inter-com-
+pany clearing) in order to avoid paying external bank
+charges and margins. Payment transactions are executed
+in accordance with uniform guidelines using standardised
+processes and IT systems. Many Group companies pool
+their external payment transactions in the intra-Group
+Payment Factory, which executes payments on behalf of
+the respective companies via Deutsche Post AG's central
+bank accounts.
+Limiting market risk
+The Group uses both primary and derivative financial in-
+struments to limit market risk. Interest rate risk is man-
+aged exclusively via swaps. Currency risk is additionally
+hedged using forward transactions, cross-currency swaps
+and options. We pass on most of the risk arising from com-
+modity fluctuations to our customers and, to some extent,
+use commodity swaps to manage the remaining risk. The
+parameters, responsibilities and controls governing the use
+of derivatives are laid down in internal guidelines.
+Flexible and stable financing
+The Group covers its long-term financing requirements by
+means of equity and debt. This ensures our financial stabil-
+ity and also provides adequate flexibility. Our most impor-
+tant source of funds is net cash from operating activities.
+We also have a syndicated credit facility in a total vol-
+ume of €2 billion that guarantees us favourable market
+conditions and acts as a secure, long-term liquidity reserve.
+The term of the syndicated credit facility is through 2025,
+it does not contain any further covenants concerning the
+Group's financial indicators and, thanks to our solid liquid-
+ity situation, it was not drawn down during the year under
+review.
+As part of our banking policy, we spread our business
+volume widely and maintain long-term relationships with
+the financial institutions we entrust with our business. In
+addition to credit lines, we meet our borrowing requirements
+through other independent sources of financing, such as
+bonds, promissory note loans and leases. Most debt is taken
+out centrally in order to leverage economies of scale and
+specialisation benefits and hence minimise borrowing costs.
+One bond in the amount of €750 million was repaid in
+the year under review. Information on bonds is contained
+in >note 39 to the consolidated financial statements.
+No change in the Group's credit rating
+The ratings of "BBB+” issued by Fitch Ratings (Fitch) and
+"A3" issued by Moody's Investors Service (Moody's) remain
+in effect for our credit quality. The stable outlook from both
+rating agencies also still applies. We remain well positioned
+in the transport and logistics sector with these ratings. The
+following table shows the ratings as at the reporting date
+and the underlying factors. The complete and current anal-
+yses by the rating agencies and the rating categories can be
+found under @ Creditor relations.
+Deutsche Post DHL Group - 2021 Annual Report
+33,673
+36,996
+1,673
+-505
+131 >100
+34,493 11.5
+The net asset base increased by €3,557 million to
+€34,493 million as at the reporting date. Intangible assets
+and property, plant and equipment increased, mainly on ac-
+count of the acquisition of freight aircraft and investments
+in warehouses, sorting facilities and the vehicle fleet. Net
+working capital also rose over the previous year.
+1,270
+1 Assets and liabilities as described in the segment reporting, > note 10 to the
+consolidated financial statements.
+1,409
+1,419
+1,422
+30,936
+Net working capital
+15
+1.35
+0.85
+1.05
+1.15
+1.15
+1.15
+16
+Net asset base
+Operating provisions were up year-on-year, as were
+other non-current assets and liabilities.
+and liabilities
+-162
+9.9
+67.9
+Operating provisions
+(excluding provisions
+EBIT
+2020
+4,847
+Asset charge
+EAC
+-2,648
+2,199
+35
+2021
+7,978
+-2,792
+5,186
+1,027
++/-%
+64.6
+-5.4
+>100
+for pensions and similar
+obligations)
+-2,267
+-2,472
+9.0
+± Other non-current assets
+60
+2.74
+2.74
+1.70
+65
+228
+2.94
+4.47
+Ratio of total capex to depreciation, amortisation
+and impairment losses
+117
+1.49
+1.92
+2.73
+2.81
+55
+60
+400
+355
+losses (€m)
+Depreciation, amortisation and impairment
+2,544
+2,195
+-1
+0
+399
+316
+43
+16
+89
+At €19,037 million, equity attributable to Deutsche
+Post AG shareholders was well above the figure as at
+31 December 2020 (€13,777 million). Actuarial gains from
+pension obligations, currency effects and consolidated net
+profit in particular increased this figure, whilst the dividend
+payment and share buy-backs decreased it. Higher interest
+rates resulted in a steep decrease in provisions for pensions
+and other obligations by €1,650 million to €4,185 million.
+Financial liabilities increased from €19,098 million to
+€19,897 million, primarily due to lease liabilities having risen
+on account of investments. Trade payables increased from
+€7,309 million to €9,556 million. Other current liabilities
+increased by €1,003 million to €6,138 million due also to
+an increase in customs and duties which we assumed for
+our customers.
+Equity ratio
+%
+31 Dec.
+2020
+25.5
+31 Dec.
+2021
+€m
+Net debt
+€m
+12,928
+Balance sheet structure of the Group as at 31 December
+30.7
+12,772
+Net gearing
+%
+9.9
+47.9
+17.4
+39.6
+Intangible assets
+Consolidated total assets up sharply
+The Group's total assets amounted to €63,592 million as
+at 31 December 2021, €8,285 million higher than at 31 De-
+cember 2020 (€55,307 million).
+Intangible assets rose from €11,658 million to
+€12,076 million, mainly because positive currency ef-
+fects led to an increase in goodwill. Property, plant and
+Net interest cover
+ASSETS
+equipment grew significantly from €22,007 million to
+€24,903 million, as investments and positive currency ef-
+fects exceeded disposals and depreciation, amortisation
+and impairment losses. Non-current financial assets rose
+from €746 million to €1,190 million, primarily because
+lease receivables increased. Other non-current assets
+grew by €427 million to €587 million; actuarial gains in par-
+ticular increased pension assets. Current financial assets
+increased significantly from €1,315 million to €3,088 mil-
+lion also due to our investment of €950 million in money
+market funds. Trade receivables rose by €2,698 million to
+€11,683 million. Cash and cash equivalents decreased by
+€951 million to €3,531 million.
+Net assets
+-167
+-75
+-68
+Net interest paid
+-95
+-92
+-59
+-46
+Free cash flow
+Selected indicators for net assets
+2,535
+1,075
+733
+43
+43
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+Deutsche Post DHL Group - 2021 Annual Report
+44
+Net cash used in financing activities amounted to €6,224 mil-
+lion and was thus well above the prior-year figure
+(€2,250 million) which was primarily impacted by inflows
+from bonds issued in the amount of €2.2 billion. In the year
+under review, by contrast, we paid back a bond in the amount
+of €750 million. The dividend paid out to our shareholders in
+May increased by €251 million to €1,673 million. The share
+buy-back programme in particular increased the acquisition
+of treasury shares to €1,115 million.
+Cash and cash equivalents fell from €4,482 million as
+at 31 December 2020 to €3,531 million.
+4,092
+63,592
+55,307
+21%
+2021
+COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION - DEUTSCHE POST AG (HGB)
+Deutsche Post DHL Group - 2021 Annual Report
+45
+45
+Our net debt declined slightly from €12,928 million as at
+31 December 2020 to €12,772 million as at 31 Decem-
+ber 2021. At 30.7%, the equity ratio was well above the
+prior-year figure (25.5%). At 17.4, net interest cover was
+also noticeably up on the previous year's level (9.9). Net
+gearing was 39.6% as at 31 December 2021.
+Net debt
+€m
+Non-current financial liabilities
+2020
++ Current financial liabilities
+31 Dec.
+2020
+15,833
+2,893
+18,726
+Cash and cash equivalents
+4,482
+Current financial assets
+1,315
+31 Dec.
+2021
+16,589
+2,802
+19,391
+3,531
+3,088
+408
+→ Financial liabilities¹
+2021
+2020
+24%
+19%
+Equity
+EQUITY AND LIABILITIES
+63,592
+55,307
+26%
+31%
+Property, plant and equipment
+40%
+39%
+Non-current provisions and liabilities
+43%
+36%
+Trade receivables
+16%
+18%
+Current provisions and liabilities
+31%
+33%
+Other assets
+23%
+-162
+51
+Interest paid (without leasing)
+75
+Net cash used in investing activities increased from
+€3,640 million to €4,824 million. Cash paid to acquire
+non-current assets also rose, from €2,945 million in the
+previous year to €3,767 million in the year under review.
+Most of this was for the ongoing expansion and renewal of
+our vehicle and air fleets. The purchase of money market
+funds totalling €950 million led to, amongst other effects,
+cash paid to acquire current financial assets amounting to
+€1,508 million (previous year: €933 million).
+Free cash flow showed a sharp improvement from
+€2,535 million to €4,092 million.
+Calculation of free cash flow
+€m
+Net cash from operating activities
+Sale of property, plant and equipment and intangible assets
+Acquisition of property, plant and equipment and intangible assets
+Cash outflow from change in property, plant and equipment and
+intangible assets
+Disposals of subsidiaries and other business units
+Disposals of investments accounted for using the equity method and
+other investments
+Cash outflow/inflow from acquisitions/divestitures
+Proceeds from lease receivables
+Interest from lease receivables
+Repayment of lease liabilities
+Interest on lease liabilities
+Net cash from operating activities increased significantly
+from €7,699 million to €9,993 million. Based upon EBIT,
+which at €7,978 million was well over the prior-year figure
+(€4,847 million), all non-cash income and expense items
+were adjusted. Income tax payments rose by €569 million
+to €1,323 million. At €430 million, the cash outflow from
+changes in the working capital was €26 million higher than
+in the previous year.
+2020
+7,699
+Q4 2020
+2,918
+Q4 2021
+2,616
+122
+-2,922
+190
+-3,736
+38
+102
+-1,259
+-1,456
+2021
+9,993
+-2,800
+Significantly higher operating cash flow
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+90
+190
+190
+0
+-1
+965
+912
+2.27
+2.79
+Deutsche Post DHL Group - 2021 Annual Report
+4.53
+2.10
+I
+Including rounding.
+Investments in the Express division related to buildings and
+technical equipment. Continuous maintenance and renewal
+of our intercontinental air fleet represented an additional
+focus of investment spending.
+In the Global Forwarding, Freight division, we invested
+in warehouses, office buildings and IT.
+In the Supply Chain division, the majority of funds were
+invested to support customer implementations in all re-
+gions, mostly in the Americas and EMEA regions.
+In the eCommerce Solutions division, most of the in-
+vestments were attributable to network expansion in the
+Netherlands, the Czech Republic and the United States.
+In the Post & Parcel Germany division, the largest capex
+portion was attributable to the expansion of our infrastruc-
+ture. The acquisition and development of property were
+stepped up in the year under review. Another key focus was
+expanding Packstations.
+At Group Functions, investments in the reporting year
+were mainly in the vehicle fleet and IT solutions.
+1.66
+-3,546
+-1,221
+-1,354
+122
+0
+16
+0
+16
+-1,894
+-2,051
+-478
+-532
+10
+-394
+-96
+-100
+Cash outflow for leases
+-2,261
+-2,275
+-564
+-494
+Interest received (without leasing)
+67
+-383
+143
+27
+11
+5
+13
+1
+10
+Acquisition of subsidiaries and other business units
+0
+1
+0
+1
+0
+0
+0
+0
+Acquisition of investments accounted for using the equity method and
+other investments
+-13
+-2
+0
+0
+-8
+12
+1
+22
+262
+Liquidity and sources of funds
+118
+104
+1,707
+1,428
+Capex (€m) relating to acquired assets
+2021
+2020
+2021
+2020
+2021
+2020
+2021
+132
+2020
+2020
+2021
+2020
+2021
+2020
+2021
+2020
+Group
+Consolidation¹
+Group
+Functions
+Post & Parcel
+Germany
+2021
+Solutions
+351
+141
+Total (€m)
+2,759 3,080
+0
+0
+760
+448
+14
+14
+178
+143
+667
+483
+973
+207
+974 1,246
+Capex (€m) relating to leased assets
+2,999 3,895
+0
+0
+445
+385
+883
+590
+245
+215
+2,402
+eCommerce
+Freight
+Rating factors
+• Good earnings momentum supported by solid e-commerce growth
+• Solid financial profile
+• Support that is built into the rating because of the German government's indirect shareholding
+and the importance of the company's services to the German economy
+• Large scale and strong business profile, supported by global leadership positions in express and
+logistics, and by the large German mail business
++ Rating factors
+• Exposure to global market volatility and competitiveness through the DHL divisions
+• Structural mail volume decline in the Post & Parcel Germany division and challenges in managing
+the cost structure in the division
+Rating factors
+• Dynamic volume growth in Time Definite International and Time Definite Domestic products
+• Solid credit metrics and good liquidity
+• Growth in parcel and express business fuelled by e-commerce
+⚫ Challenges faced in domestic letter mail business which result from the structural decrease in
+conventional letter mail
+• Balanced business risk profile
+41
+Deutsche Post DHL Group - 2021 Annual Report
+Short-term: P-2
+Outlook: stable
+Long-term: A3
+Moody's
+Outlook: stable
+Short-term: F2
+Long-term: BBB+
+Fitch
+Agency ratings
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
++ Rating factors
+Supply Chain
+• Exposure to highly competitive mature markets and volatile market conditions in the logistics
+business
+Positive fair value of non-current
+Express
+42
+Deutsche Post DHL Group - 2021 Annual Report
+Global
+Forwarding,
+Capex and depreciation, amortisation and impairment losses, full year
+Є COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
+Investments in property, plant and equipment and intan-
+gible assets acquired (excluding goodwill) amounted to
+€3,895 million in the year under review (previous year:
+€2,999 million). Please refer to > note 10, 22 and 23 to the
+consolidated financial statements for a breakdown of capex
+into asset classes and regions.
+Capital expenditure for assets acquired above
+prior-year level
+13
+716
+19,897
+19,098
+546
+• Increasing capital spending, which hampers cash generation
+Other financial liabilities
+Financial liabilities at fair value through
+profit or loss
+2021
+11,805
+6,669
+544
+150
+150
+Promissory note loans
+2020
+10,459
+7,410
+479
+Amounts due to banks
+Lease liabilities
+Bonds
+€m
+Financial liabilities
+The following table gives a breakdown of the financial li-
+abilities reported in the balance sheet. Additional information
+is provided in > note 39 to the consolidated financial statements.
+As at the reporting date, the Group had cash and cash
+equivalents in the amount of €3.5 billion (previous year:
+€4.5 billion) at its disposal. The centrally available cash is
+either invested on the money and capital markets in the short
+term or deposited in existing bank accounts. These central,
+short-term financial investments had a volume of €3.6 billion
+as at the reporting date (previous year: €3.9 billion).
+54
+2,953
+311
+347
+136
+165
+403
+260
+2021
+2020
+2021
+2020
+2021
+2020
+2021
+0
+2020
+79
+166
+99
+37
+41
+758
+737
+Capex (€m) relating to acquired assets
+2020
+2021
+2020
+2021
+138
+2021
+0
+1,638
+321
+388
+97
+115
+1,092
+996
+Total (€m)
+906
+814
+-1
+0
+1,381
+263
+5
+2
+90
+39
+155
+289
+60
+74
+334
+259
+Capex (€m) relating to leased assets
+151
+2020
+2021
+2020
+744
+784
+329
+179
+169
+756
+920
+245
+246
+1,511
+1,383
+-1
+losses (€m)
+6,975
+5,758
+0
+0
+833 1,205
+897
+604
+423
+284
+1,150
+1,324
+Depreciation, amortisation and impairment
+-1 3,830
+3,768
+Ratio of total capex to depreciation, amortisation
+and impairment losses
+Group
+Consolidation¹
+Group
+Functions
+Post & Parcel
+Germany
+eCommerce
+Solutions
+Supply Chain
+Global
+Forwarding,
+Freight
+Express
+Capex and depreciation, amortisation and impairment losses, Q4
+1 Including rounding.
+1.85
+1.50
+|
+1.62
+1.06
+2.69
+1.84
+2.36
+1.68
+1.52
+1.44
+1.42
+1.26
+1.95
+1.74
+228
+financial derivatives²
+334
+0
+mental values apply to the entire Group and are laid down in
+our Code of Conduct for employees and in the Supplier Code
+of Conduct for the business partners in our supply chain.
+Since respect for human rights is particularly important to
+us, we specify these guidelines in our Human Rights Policy
+Statement, > Corporate governance.
+Moreover, we participate in numerous United Nations
+initiatives and support the UN Sustainable Development
+Goals (SDGs). Our commitment is most closely aligned with
+the goals of Quality Education (SDG 4), Gender Equality
+(SDG 5), Decent Work and Economic Growth (SDG 8), Sus-
+tainable Cities and Communities (SDG 11), Climate Action
+(SDG 13) and Partnerships for the Goals (SDG 17).
+Strategic orientation
+Realignment of material topics
+Our purpose of "Connecting people, improving lives" reflects
+our understanding of sustainability, which is embedded in
+our strategic bottom lines throughout the Group, > Strategy.
+The degree to which we meet the needs of our key stake-
+holder groups, minimise the environmental impact of our
+business, increase our contributions to society and act as
+trustworthy business partners are also determinants of the
+success of our company. That is why we adhere to principles
+aimed at reducing our environmental footprint, creating a
+safe, inclusive and motivating workplace for our employees,
+and ensuring that our business practices are transparent
+and in compliance with the law.
+Our ESG Roadmap reinforces and realigns our climate
+action and environmental protection activities and under-
+scores and further defines our strategies towards social
+responsibility and corporate governance, > Strategy. In
+addition, from 2022, all three ESG areas will be incorporated
+into and account for 10% respectively, of the target port-
+folio for bonus calculation of the Board of Management. The
+details are provided in a separate statutory remuneration
+report that will be published on our website.
+We learned about the expectations of our key stake-
+holders through a comprehensive survey whose results
+were considered both in developing our ESG Roadmap and
+the associated initiatives and in conducting our materiality
+analysis. Using these, we derived six topics on which our
+business has a material influence or, conversely, which
+can affect our business. The six topics are: 1. climate pro-
+tection with a focus on greenhouse gas (GHG) emissions,
+2. engagement of our employees, 3. diversity and inclusion,
+4. occupational safety and health in the workplace, 5. com-
+pliance and 6. cybersecurity. Key performance indicators
+(KPIs) have already been defined and targets determined
+for five of these topics; the definition of targets is under de-
+velopment for the topic of cybersecurity.
+In the year under review, the management-relevant
+KPIs were Employee Engagement and greenhouse gas
+efficiency (CEX), > Steering metrics. From 2022 onward we
+will introduce the following KPIs in addition to Employee
+Engagement: Realised Decarbonisation Effects, share
+of women in executive positions in middle and upper
+management, lost time injury frequency rate (LTIFR) per
+200,000 working hours and share of valid compliance-
+relevant training certificates amongst managers in middle
+and upper management, Expected developments.
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Deutsche Post DHL Group - 2021 Annual Report
+49
+We conduct our business in accordance with applicable
+law and high ethical principles and environmental standards.
+As a signatory to the UN Global Compact, Deutsche Post DHL
+Group implements its ten principles in areas where we have
+influence. Additionally, we take guidance from the princi-
+ples set out in the Universal Declaration of Human Rights,
+the OECD Guidelines for multinational enterprises and the
+International Labour Organization's (ILO) Declaration on
+Fundamental Principles and Rights at Work, as well as from
+the principle of social partnership. Our ethical and environ-
+40
+New assessment of non-financial opportunities and risks
+Opportunity and risk management takes place in Group
+Controlling and also covers sustainability-related opportu-
+nities and risks. In the reporting period, we assessed for the
+first time our opportunities and risks arising from climate
+change using a scenario analysis according to the standards
+of the Task Force on Climate-related Financial Disclosures
+(TCFD). This involved applying scenarios including possible
+warming of the planet by 2.0, 2.4 or 4.3 degrees Celsius to
+assess physical risks which could result from a rise in ocean
+levels, among other factors. For transitory risks, we used
+the sustainable development scenarios of the International
+Energy Agency.
+In workshops, together with the Board of Manage-
+ment members responsible for the divisions, we analysed
+and evaluated the possible effects of climate change on
+our business models, strategy and operational business
+and considered them in view of our mission of striving
+to achieve net zero GHG emissions by 2050. This results
+mainly in transitory risks for the Group, particularly with
+regard to the development of carbon pricing, GHG emis-
+sions and operational limitations due to stricter regulation
+and the availability of sustainable fuels. This conclusion
+underscores the strategy behind our climate action activi-
+ties: reducing GHG emissions and using sustainable tech-
+nologies and fuels to minimise dependency on fossil fuels.
+Details are provided in Expected developments, opportuni-
+ties and risks.
+Responsibility for ESG issues reassigned
+The Board of Management is the central decision maker
+also on Group-wide sustainability focus, whereas the
+divisions are responsible for implementation. The progress
+achieved is regularly discussed by the Board of Manage-
+ment. ESG topics are also the subject of meetings of the
+Supervisory Board and its committees. Topics relating to
+sustainability have been added to the tasks of the Strategy
+Committee and the skills profile of the Supervisory Board,
+> Report of the Supervisory Board. The Sustainability Advisory
+Council provides perspectives from stakeholders outside
+the company.
+Our ethical and environmental goals are expressed in
+Group policies that provide all employees and managers
+with principles and clear standards for contributing to our
+success within the scope of their jobs and responsibilities.
+The most important Group policies include the Code of
+Conduct and Supplier Code of Conduct, the guidelines on
+anti-corruption and standards for business ethics and on
+the environment and energy, as well as the Human Rights
+Policy Statement.
+Responsibility for strategic orientation, the materiality
+analysis, stakeholder dialogue and implementation of the
+strategic and operational ESG programme was transferred
+to Corporate Development under the leadership of the CEO,
+where ESG topics are also embedded in the Group strategy.
+ESG controlling and reporting is handled by Corporate
+Accounting & Controlling in the Finance Board department.
+This responsibility includes defining ESG metrics, meeting
+reporting standards, developing specifications for imple-
+mentation in financial systems and the reporting itself.
+Measures to counteract climate change and improve
+occupational safety are managed by the Operations Board
+and cybersecurity is managed by the IT Board, both of which
+are under the leadership of the CEO. Human resources (HR)
+issues such as employee matters and social standards are
+handled by the HR Board, which is chaired by the Board
+member for HR. Corporate citizenship is supported by the
+Board of Management and driven by corporate communi-
+cations. Corporate Procurement defines the standards for
+procurement, designs the Corporate Procurement Policy
+and determines the selection processes for suppliers. The
+Chief Procurement Officer reports directly to the head of
+the Global Business Services Group Function and ensures
+that the Group's standardised selection processes are
+applied. The Chief Compliance Officer is responsible for
+the design of the Compliance Management System and
+reports to the CFO.
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Deutsche Post DHL Group - 2021 Annual Report
+50
+The development of actual versus planned key perfor-
+mance indicators is presented to the Board of Management
+along with financial KPIs, and discussed monthly. Deviations
+are analysed and solutions developed and approved. More-
+over, we continued integrating the ESG KPIs and targets into
+the financial systems, the internal control system and the
+opportunity and risk management process in the reporting
+period.
+In this statement the Global Reporting Initiative (GRI)
+standards are taken as the framework for determining ma-
+terial non-financial topics, amended by German Commercial
+Code (HGB) requirements. The key performance indicators
+used for managing the Group were determined on the ba-
+sis of their materiality in accordance with the HGB and the
+German Accounting Standard 20 was applied.
+The year 2021 was again a challenging one, both for people
+individually and the economy in general. The continuing pan-
+demic and numerous natural disasters adversely affected
+living conditions worldwide and tested the stability of supply
+chains. Moreover, employees and business partners as well
+as the capital market are all increasing their expectations for
+sustainable business, and legislators are tightening up their
+requirements for sustainable finance and reporting.
+for Deutsche Post AG and for the Deutsche Post DHL Group
+in accordance with Sections 289b(1) and 315b(1) HGB
+5,388
+19,186
+5,227
+21,198
+Deferred income
+72
+90
+TOTAL EQUITY AND LIABILITIES
+43,012
+46,255
+Provisions
+Liabilities
+COMBINED MANAGEMENT REPORT DEUTSCHE POST AG (HGB)
+Deutsche Post DHL Group - 2021 Annual Report
+47
+Current assets grew by €5,186 million, due largely to an
+increase of €5,624 million in receivables from affiliated
+companies resulting from intra-Group cash management
+(€4,955 million) and profit transfer agreements (€668 mil-
+lion). In addition, securities holdings increased by €537 mil-
+lion. Cash and cash equivalents decreased by €906 million.
+Equity was up from €18,366 million in the previous
+year to €19,740 million. The 2021 distribution to sharehold-
+ers totalling €1,673 million was more than entirely offset
+by the net profit for 2021 of €3,935 million. Revenue re-
+serves declined by €882 million, with the share buy-back
+programme reducing this figure by €982 million. The off-
+setting increase in the revenue reserves by €100 million
+and the increase in capital reserves by €9 million are at-
+tributable to the commitment and settlement of shares for
+executive remuneration plans. The equity ratio remained
+the same at 42.7%.
+Provisions were down by €161 million in the report-
+ing period. Provisions for pensions and similar obligations
+decreased by €11 million, provisions for taxes by €97 mil-
+lion and other provisions by €53 million. The decline in
+provisions for taxes is due to higher advance income tax
+payments. Other provisions were down because of a de-
+crease in obligations for the early retirement programme
+of €67 million.
+Liabilities increased by €2,012 million to €21,198 mil-
+lion. The liabilities arising from bonds were down by
+€750 million. A bond with a principal amount of €750 mil-
+lion was repaid. Liabilities to banks rose by €31 million. The
+increase in liabilities to affiliated companies amounting
+to €3,027 million resulted largely from intra-Group cash
+management.
+Decline in cash funds
+Deutsche Post AG's cash funds declined by €906 million
+to €1,861 million in the 2021 financial year. This was sig-
+nificantly influenced by the share buy-back programme
+(€1,000 million), the repayment of a bond (€750 million),
+the increase in securities (€537 million) and the offsetting
+higher operating profit.
+Increase in debt
+Deutsche Post AG's debt (provisions and liabilities) rose by
+€1,851 million to €26,425 million compared with the previ-
+ous year. The increase was due chiefly to higher liabilities
+to affiliated companies (€3,027 million) and lower liabilities
+arising from bonds (€750 million) in the year under review.
+Expected developments,
+opportunities and risks
+Deutsche Post AG is included fully in the Group's interna-
+tional strategy and associated performance forecast. Since
+Deutsche Post AG is interconnected, to a large degree, with
+the companies of Deutsche Post DHL Group through ar-
+rangements including financing and guarantee commit-
+ments and direct and indirect investments in its investees,
+Deutsche Post AG's opportunities and risks align closely
+with those of the Group. The section titled > Expected
+developments, opportunities and risks therefore also covers
+expected developments, opportunities and risks with re-
+spect to the parent company. The Post & Parcel Germany
+division reflects Deutsche Post AG's core business in mate-
+rial respects. The DHL divisions have an indirect influence
+on Deutsche Post AG through net investment income from
+profit transfer agreements. As a result, the subsidiaries' fu-
+ture operating results also influence the future results of
+Deutsche Post AG. The HGB financial statements are rel-
+evant for calculating the dividend. For the 2022 financial
+year, we anticipate a result for Deutsche Post AG that will
+enable a dividend payment compatible with our financial
+strategy.
+Є COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Deutsche Post DHL Group - 2021 Annual Report
+48
+NON-FINANCIAL
+STATEMENT
+Contents of the combined non-financial statement
+Reporting in accordance with Sections 289b(1) and 315b(1) HGB
+Aspects (HGB)
+Business model
+Share of women in executive positions
+totals 25.1% 2,3
+LTIFR amounts to 3.92
+Approval rate of 79% for this question in
+annual survey of employees²
+96% valid training certificates 2,3
+19 audits have been carried out²
+98% valid training certificates³
+New target definition under development
+Taxes and social security contributions paid
+in line with the tax strategy
+Assurance Report. 3 In middle and upper management.
+Report section
+> General information
+> Steering metrics
+> Forecast/actual comparison
+> Environment
+> Expected developments
+> Steering metrics
+> Forecast/actual comparison
+> Workforce
+> Expected developments
+> Workforce
+> Expected developments
+> Workforce
+> Expected developments
+> Society
+> Corporate governance
+> Expected developments
+> Corporate governance
+> Corporate governance
+> Corporate governance
+EU Taxonomy
+Report taxonomy-eligible shares of revenue, capex and opex
+Results for 2021
+56% of revenue, 64% of capex, 62% of opex are taxonomy-eligible
+Report section
+> EU Taxonomy
+1
+Employee Engagement climbs to 84% 1,2
+19,740
+CEX drops one index point to 361,2
+As of 2022, we will replace CEX as a perfor-
+mance indicator with Realised Decarbonisation
+Effects²
+Reporting on the facilitation of sustainable investments (EU Taxonomy)
+Regulation 2020/852, Article 8, of the European Parliament and of the Council
+Concepts
+Environmental matters
+Climate and environmental protection
+Employee matters
+Employee engagement and motivation
+Social matters
+Promotion of diversity and inclusion
+Ensure health at work
+Corporate citizenship
+Anti-corruption and -bribery matters Compliance with laws, principles and policies
+Respect for human rights
+Cybersecurity
+Taxes
+Prevent human rights violations
+Guarantee IT system and data security
+Avoid corporate structuring only for the
+purpose of tax optimisation
+Claims for 2021
+Greenhouse gas efficiency increases by one
+index point
+Employee Engagement KPI approval rate of
+more than 80%
+Increase share of women in executive
+positions³
+Prevent accidents
+Employee pride in contribution to society
+Participation by executives³ in compliance
+training
+Carry out audits with regard to human rights
+Participation by executives³ in Information
+Security Awareness training
+Adhere to tax strategy Group-wide
+1 Management-relevant in the year under review, > Steering metrics. 2 Reviewed with reasonable assurance,
+Results for 2021
+18,366
+Net debt drops slightly to €12,772 million
+7,977
+-8,844
+Amortisation of intangible assets and
+depreciation of property, plant and
+equipment
+-291
+-2,156
+-16,186
+-317
+-2,134
+-17,051
+Results of operations
+Revenue grew by a total of €1,025 million (6.6%) year-
+on-year.
+Revenue from German letter mail business was
+€7,670 million in the year under review and thus 0.6%
+below the prior-year level of €7,716 million. Of this revenue,
+Financial result
+2,765
+3,616
+Taxes on income
+-274
+-426
+Result after tax/Net profit for the period
+Retained profits brought forward from
+previous year
+2,915
+3,935
+5,062
+6,304
+Net retained profit
+7,977
+10,239
+COMBINED MANAGEMENT REPORT DEUTSCHE POST AG (HGB)
+Deutsche Post DHL Group - 2021 Annual Report
+446
+Other operating income registered a year-on-year increase
+of €137 million, or 14.1%, driven mainly by higher income
+from disposals of assets as a result of real estate sales.
+Materials expense rose by €549 million on account of
+an increase in the cost of transport services for letters and
+parcels as well as an increase for leases and rents.
+-8,532
+Staff costs rose by €312 million year-on-year, due pri-
+marily to a tariff increase of 3% and the associated social
+insurance contributions. A special bonus of €52 million
+(previous year: €50 million) was paid in the financial year
+under review.
+Staff costs
+-5,207
+10,239
+= Financial assets
+5,798
+Net debt
+12,928
+6,619
+12,772
+DEUTSCHE POST AG
+(HGB)
+Deutsche Post AG as parent company
+In addition to the reporting on the Group, the performance
+of Deutsche Post AG is outlined below.
+As the parent company of Deutsche Post DHL Group,
+Deutsche Post AG prepares its consolidated financial state-
+ments in accordance with the principles of the Handels-
+gesetzbuch (HGB - German Commercial Code) and the Ak-
+tiengesetz (AktG - German Stock Corporation Act). The HGB
+financial statements are relevant for calculating the dividend.
+There are no separate performance indicators relevant
+for management purposes that are applicable to the parent
+company Deutsche Post AG as a legal entity. For this reason,
+the explanations presented for Deutsche Post DHL Group
+are also applicable to Deutsche Post AG.
+€4,952 million (previous year: €5,085 million) was at-
+tributable to Mail Communication, €1,697 million (previous
+year: €1,693 million) to Dialogue Marketing and €1,021 mil-
+lion (previous year: €938 million) to other services. Rev-
+enue in the German parcel business in the reporting year
+was €6,120 million, exceeding the prior-year figure of
+€5,164 million by 18.5%. This is primarily attributable to
+the rise in deliveries due to the pandemic as well as price
+increases vis-à-vis intra-Group companies. Revenue of
+€2,159 million (previous year: €2,079 million) was reported
+for our International business unit in the reporting period.
+Other revenue amounted to €661 million (previous year:
+€626 million).
+Income statement for Deutsche Post AG (HGB)
+1 January to 31 December
+€m
+Less operating financial liabilities.
+Recognised in non-current financial assets in the balance sheet.
+Revenue
+Other own work capitalised
+Other operating income
+53
+2021
+16,610
+77
+972
+1,109
+16,610
+17,796
+Employees
+The number of full-time equivalents at Deutsche Post AG
+at the reporting date was 165,221 (previous year: 166,143).
+Other operating expenses
+Materials expense
+-5,756
+The decrease in other operating expenses by €22 million
+stemmed mainly from lower currency expenses (€116 mil-
+lion) and higher expenses for service level agreements
+(€63 million) and purchased services (€32 million).
+2020
+15,585
+After accounting for taxes on income of €-426 million
+(previous year: €−274 million), net profit for the period
+totalled €3,935 million (previous year: €2,915 million). In-
+cluding retained profits carried forward, net retained profit
+for the period amounted to €10,239 million (previous year:
+€7,977 million).
+2,767
+1,861
+23,294
+28,480
+Prepaid expenses
+385
+410
+TOTAL ASSETS
+43,012
+46,255
+EQUITY AND LIABILITIES
+Equity
+Cash and cash equivalents
+Subscribed capital
+1,239
+Treasury shares
+0
+-15
+1,239
+1,224
+(Contingent capital: €139 million)
+Capital reserves
+Revenue reserves
+Net retained profit
+4,670
+4,679
+4,480
+The financial result in the amount of €3,616 million
+(previous year: €2,765 million) mainly comprises net invest-
+ment income of €4,085 million (previous year: €3,399 mil-
+lion) and a net interest expense of €460 million (previous
+year: €634 million). The change in net investment income
+is due mainly to the €668 million increase in income from
+profit transfer agreements attributable to Deutsche Post
+Beteiligungen Holding GmbH. Deutsche Post Beteiligun-
+gen Holding GmbH's earnings were the result of higher
+profit transfers thanks to very good operating results
+generated by the subsidiaries, the reversal of impairment
+losses on carrying amounts of investments in subsidiaries
+and income from the disposal of investments as a result of
+a transfer within the Group. Higher income from plan assets
+led to the improvement in net interest expenses.
+1,239
+1,745
+Issued capital
+24,795
+Net assets and financial position
+1,208
+Total assets up
+Total assets rose to €46,255 million as at the reporting date
+(previous year: €43,012 million).
+Fixed assets declined from €19,333 million to
+€17,365 million. Investments in property, plant and equip-
+ment totalled €700 million (previous year: €475 million)
+and related mainly to land and buildings (€277 million),
+technical equipment (€130 million) and advance pay-
+ments and assets under development (€237 million). In-
+vestments were made mainly in mail and parcel centres,
+conveyor and sorting systems, Packstations and real estate
+for network expansion. Non-current financial assets were
+down €2,428 million. Shares in affiliated companies were
+up in particular through equity measures, increasing by
+€5,483 million in the reporting period, mostly due to the
+carrying amount of Deutsche Post Beteiligungen GmbH.
+Loans to affiliated companies declined by €7,910 million,
+because Group financing was shifted largely to short-term
+cash management in current assets.
+Balance sheet of Deutsche Post AG (HGB)
+as at 31 December
+€m
+ASSETS
+Fixed assets
+2020
+2021
+Intangible assets
+190
+3,598
+Property, plant and equipment
+232
+Receivables and other assets
+Securities
+79
+68
+Current assets
+Inventories
+17,365
+19,333
+19,251
+15,713
+Non-current financial assets
+3,848
+3,430
+13,285
+Share of women rises to
+25.9%
+LTIFR decreases to 3.7
+1 Relevant for internal management; from 2022, share of women in middle- and upper-management positions as well as LTIFR.
+Targets for 2025
+Maintain employee
+engagement at a high level
+Share of women amounts
+to 30%
+LTIFR of less than 3.1
+53
+53
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+54
+At €23,879 million, staff costs exceeded the prior-year
+figure of €22,234 million. This includes the special bonus of
+€300 which we paid to all employees - following a bonus
+payment in the same amount in 2020 - in the year under
+review for the additional strain they experienced due to the
+pandemic. Details can be found in > note 15 to the consolidated
+financial statements.
+As at 31 December 2021, the Group employed 592,263
+individuals. Calculated as full-time equivalents, this figure
+totalled 548,042, up 4.0% from the previous year. Our
+current planning foresees a slight increase in the number
+of employees again in 2022. Added to this were another
+81,939 external FTEs subject to the control and direction
+of the Group.
+Workforce development
+Headcount
+Employee engagement remains high
+Each year we measure employee satisfaction and engage-
+ment by conducting a Group-wide survey. This important
+tool helps us determine where we are in our journey toward
+becoming an employer of choice. In this process, we use
+the Employee Engagement KPI as a Group-wide manage-
+ment-relevant indicator, > Steering metrics. This enables
+us to quantify our employees' commitment to the com-
+pany and their motivation to help the Group succeed. We
+exceeded the target of more than 80% for the reporting
+year with an approval score of 84%.
+Selected results from the Employee Opinion Survey
+%
+Deutsche Post DHL Group - 2021 Annual Report
+Targets for 2022
+Group approval rate of
+more than 80%
+Moreover, we offer both defined benefit and defined
+contribution pension plans in which approximately 70% of
+the Group's employees participate. Our main retirement
+benefit plans are provided in Germany, the UK, the USA, the
+Netherlands and Switzerland, > note 37.1 to the consolidated
+financial statements.
+Results for 2021
+Employee Engagement
+approval rate in the annual
+survey increases to 84%
+Share of women of 25.1%
+2020
+3 Also includes consumption by electric vehicles.
+Workforce
+Common DNA as a factor for success
+Our corporate culture makes us strong. It is underpinned
+by common values, convictions and behaviours and is one
+of the most important factors in our business success. We
+call it our common DNA, > Strategy. It connects us across
+all business units and operating regions and defines who
+we are and how we operate. As early as 2006 we defined a
+Code of Conduct applicable to the whole Group. We value
+the diversity of our workforce and treat one another with
+respect, so that we may work together cooperatively and
+lay the foundation for our company's financial success.
+Being an employer of choice
+Our employees are our most valuable asset. With some
+590,000 employees, we are one of the world's largest em-
+ployers in our sector and aim to be an employer of choice, at-
+tracting competent and committed employees, continuously
+developing them and retaining them over the long term.
+Only motivated employees deliver excellent service
+quality, meet our customers' needs satisfactorily and
+therefore ensure the sustainable profitability of our busi-
+ness activities. For this reason, we want to strengthen and
+lock in their commitment at a high level. We are dedicated
+to the principles of diversity and inclusion to create a work
+environment free of discrimination where each individual
+is valued and to guarantee workplaces that promote health.
+In addition to direct dialogue with their superiors and
+management representatives, employees can turn to em-
+ployee committees, works councils, trade unions and other
+bodies to indirectly represent their interests. At the global
+level, we engage in regular, open dialogue with international
+trade union confederations such as UNI Global Union (UNI)
+and International Transport Workers' Federation (ITF).
+Employee matters
+Topics
+Employee engagement
+Diversity and inclusion
+Occupational health and
+safety
+ΚΡΙ
+Employee Engagement¹
+2 Includes legally required blending.
+Share of women in middle-
+and upper-management¹
+able remuneration components such as bonus payments. In
+many countries, we also provide employees with access to
+defined benefit and defined contribution retirement plans.
+We also use neutral job evaluations to prevent discrimina-
+tion on the basis of personal characteristics. These evalu-
+ations focus on the type of job, position in the company and
+responsibilities assigned. This systematic approach enables
+an independent and balanced remuneration structure.
+In Germany, wages or salaries are generally regulated
+through either industry-level or company-level collective
+wage agreements. In many of our subsidiaries throughout
+Germany, our wage-scale employees also receive a per-
+formance-based bonus in addition to their monthly wage
+or salary. Employees of Deutsche Post AG covered by the
+collective wage agreement may opt to take additional time
+off in lieu of a pay increase. A total of 18.7% of the workforce
+there had exercised this option as at 31 December 2021.
+LTIFR per 200,000 working LTIFR of 3.9
+hours¹
+We foster employee loyalty and motivation by offer-
+ing performance-based remuneration in line with market
+standards. It includes a base salary plus the agreed vari-
+40
+2021
+75
+Average age of Group employees
+(years)
+40
+Share of female employees (%)
+34.2
+34.7
+Unplanned employee turnover (%)
+8
+12
+1 Including trainees. 2 Prior-period amounts adjusted.
+83¹
+84
+Our common DNA is a fundamental part of our corporate
+strategy. Knowing this and living it has an immediate ef-
+fect on employee satisfaction and engagement. We com-
+municate our company culture not only in our day-to-day
+operations but also through select training initiatives. One
+example is our Group-wide "Certified" employee motivation
+and development programme, which aims to make our em-
+ployees experts in their respective areas of responsibility.
+It also creates an atmosphere that places our customers at
+the heart of our activities and ensures we provide excellent
+service. In addition to a certified foundation module, we
+offer our employees a wide range of follow-up modules
+customised to their specific roles and areas of expertise. We
+place special emphasis on providing training for manage-
+ment and team leaders to help reinforce employees in their
+roles and support executives in carrying out their leader-
+ship duties. Such training focuses on leadership attributes
+that are applicable to all Group executives and serve as a
+behavioural compass. We also offer qualified employees a
+number of personal development options, such as special
+training for those with potential and development ambitions
+in self-management and in participation in interdisciplinary
+or international projects.
+Diversity is our strength
+Our organisation brings together people from cultures and
+cultural backgrounds from all over the world who possess a
+wide range of experiences, abilities and perspectives, with
+179 nations represented at our German sites alone. The di-
+versity of our employees is not only an asset to the company
+but also one of its major strengths. Diversity, inclusion and
+freedom from discrimination are anchored throughout the
+Group as part of our Code of Conduct. We expressly reject
+any and all forms of discrimination.
+We take an equal opportunity approach to new hirings,
+both internally and externally, and look exclusively to a can-
+didate's qualifications when deciding on their suitability.
+One particular focus of our activities in diversity man-
+agement is on increasing the share of women in executive
+positions. By 2025 we aim for women to occupy at least 30%
+of middle and upper management positions in the Group.
+The company uses various approaches to specifically em-
+power female junior staff for the next step in their careers
+on the way to becoming middle- or upper-level executives,
+including coaching, mentoring and networks. In the year
+under review, we grew the share of women in middle and
+upper management by 1.9 percentage points from 23.2% to
+25.1%. We are planning a share of 25.9% for 2022.
+1 Adjusted due to structural changes.
+17
+75
+18
+41,897 43,840 4.6
+166,199 175,099 5.4
+31,995 33,809 5.7
+169,299 168,084 -0.7
+12,470 13,076 4.9
+502,207 528,079 5.2
+Response rate
+Approval rate for Employee
+Engagement KPI
+2020
+2021 +/-%
+1 Prior-year figures adjusted due to changes in the survey.
+At year end¹
+Average for the year¹
+571,974 592,263
+547,128 574,047
+3.5
+4.9
+Full-time equivalents
+At year end¹
+of which Express
+526,896 548,042
+105,036 114,134
+4.0
+8.7
+Global Forwarding,
+Freight²
+Supply Chain²
+eCommerce Solutions
+Post & Parcel Germany
+Group Functions
+Average for the year¹
+Share of part-time employees (%)
+150
+3,190
+1,736
+1,497
+70%
+of which from renewable sources
+0.20
+Scope 3
+26.86
+31.86
+2021 +/-%
+39.36 17.0
+7.30 10.8
+5.3
+18.6
+1 Scopes 1 to 3.
+DHL
+Our company's in-house RainbowNet network pro-
+vides space for LGBTQ+ employees to share their experi-
+Air transport
+22%
+Ground transport
+DHL
+DHL
+For 2022 we expect a budgeted figure of around 41 million
+tonnes of CO2e, primarily because the limited availability
+and low percentage of sustainable fuels used in blends will
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Deutsche Post DHL Group - 2021 Annual Report
+52
+62
+not yet significantly reduce GHG emissions in air and ocean
+freight. This jump in emissions at the start of our mid-term
+horizon to 2030 - prior to a reduction in the second half of
+the decade is included in our planning. Nonetheless, we
+are optimistic that, through our measures, we will realise
+decarbonisation effects totalling 969 kilotonnes of CO2e
+in 2022, thereby significantly cushioning the increase in
+emissions from 2021 to 2022. We also hereby reiterate our
+medium-term target of lowering GHG emissions to below
+29 million tonnes of CO2e by 2030.
+0.19
+GHG efficiency drops
+Scope 2
+2020
+33.64
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Deutsche Post DHL Group - 2021 Annual Report
+51
+Environment
+Reposition climate protection
+Our business activities impact the climate and the envi-
+ronment mainly in the form of greenhouse gases (GHG).
+We have reviewed and largely endorsed the climate action
+and environmental protection measures we have taken to
+date as part of our ESG Roadmap. A major element is a
+new medium-term climate protection target striving for an
+absolute reduction in GHG emissions by 2030.
+We have therefore now switched the focus of our re-
+porting to the development of absolute GHG emissions.
+Starting with this reporting year, we report GHG emissions
+according to the well-to-wheel approach; that is, our cal-
+culation includes the entire process chain for generating
+and supplying energy for transport as an additional Scope 3
+category. Beginning in the coming financial year, we will
+replace CEX as a management-relevant KPI with Realised
+Decarbonisation Effects. We determine these effects using
+the GHG emissions avoided by decarbonisation measures.
+We want to reduce our GHG emissions to net zero by
+2050. That means we will use active reduction measures to
+reduce our GHG emissions (Scopes 1, 2 and 3) down to an
+unavoidable minimum, which is to be fully compensated for
+with recognised countermeasures (excluding offsetting).
+We have set new, ambitious targets to be achieved
+by 2030 that continue to include the transport services
+provided by our subcontractors (Scope 3). Particularly im-
+portant for achieving these goals by 2030 is a bundle of
+measures up to €7 billion to increase the use of sustain-
+able technologies and fuels in our fleets and buildings to be
+rounded out by a range of environmentally friendly prod-
+ucts. This approach allows us to uphold our responsibility
+to the climate and the environment, while strengthening
+our own market position.
+Together with our subcontractors, we also work as
+part of initiatives to reduce fuel consumption and lower
+GHG emissions. This also enables us to procure the con-
+sumption and emissions data necessary for subcontractor
+management, which is why we take part in industry-wide
+initiatives and collaborate closely with customers, suppliers
+and industry partners.
+GHG emissions above prior-year level
+Due to the positive development of business in all divisions
+in the year under review and the significant increase in
+transport volumes associated with it, absolute GHG emis-
+sions rose as expected to 39.36 million tonnes of CO2e,
+thus coming in 17.0% higher than the prior-year figure of
+33.64 million tonnes of CO2e. Realised Decarbonisation
+Effects already amounted to 728 kilotonnes of CO2e. More-
+over, a further 172 kilotonnes of CO2e were avoided through
+the statutory blending of biofuels.
+GHG emissions (well-to-wheel)
+Million tonnes CO₂e
+GHG emissions, total
+of which Scope 1
+GHG emissions by mode of transportation
+Total: 39.36 million tonnes CO₂e¹
+1%
+Buildings
+7%
+Ocean transport
+6.59
+1,464
+We measure our GHG efficiency using the CEX, which
+dropped by one index point to 36 in the year under review.
+In spite of improved efficiency in nearly all areas, the total
+value worsened due to the disproportionate growth in air
+freight, where the decreased passenger load of the remain-
+ing passenger aircraft had a negative influence on the effi-
+ciency. Because air freight is often transported in the cargo
+holds of passenger aircraft, the lower utilisation of this
+transport option on account of the pandemic results in the
+noticeable decrease in GHG efficiency in goods transport.
+A cornerstone of our ESG Roadmap is a bundle of measures
+of up to €7 billion for sustainable technologies and fuels
+to be implemented by 2030. Our focus here is mainly on
+the modes of transportation using the most fuel and gen-
+erating the most emissions, namely air freight and road
+transport, and further increasing the electrification of our
+fleet of pick-up and delivery vehicles. Moreover, we aim
+to further decarbonise purchased ocean freight capacity.
+We will also invest in technologies to design our own new
+buildings to be climate neutral.
+Deutsche Post DHL Group - 2021 Annual Report
+Group-wide energy consumption (Scopes 1 and 2) rose
+to 30,486 million kWh in the reporting period (previous
+year: 27,427 million kWh).
+Energy consumption in the company's own fleet and
+buildings (Scopes 1 and 2)
+Million kWh
+Fleet consumption
+2020¹
+24,336
+Air transport (kerosene)
+19,625
+of which sustainable fuel
+3
+Road transport
+4,711
+2021
+27,296
+22,660
+175
+4,636
+of which sustainable fuels²
+128
+Consumption in buildings and facilities³
+3,091
+of which electricity
+1,711
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Using sustainable technologies and fuels
+All our own new buildings are climate neutral
+Use up to €7 billion for decarbonisation
+Share of sustainable fuels in air, ocean and
+road freight tops 30%
+Examples from the divisions:
+During the year under review, Express concluded de-
+livery contracts for sustainable aircraft fuels to the airports
+in San Francisco, East Midlands and Schiphol, with more
+locations to come.
+The Global Forwarding, Freight division continually
+strives to identify and offer the most environmentally
+friendly transportation solutions or to shift deliveries to
+more efficient transport modes. With our established Green
+Carrier Certification, we create transparency regarding the
+sustainability of our subcontractors. In the year under re-
+view, we were one of the first companies in our industry
+to offer air and ocean freight solutions that make use of
+sustainable fuels.
+Supply Chain offers our customers state-of-the-art
+solutions which drive the decarbonisation of their supply
+chains, for instance through carbon-neutral warehousing,
+reduced-carbon transport solutions and sustainable pack-
+aging solutions.
+Post & Parcel Germany is focusing, amongst other
+things, on shifting parcel volumes to rail transport and ex-
+panding e-vehicles in pick-up and delivery. In addition, the
+Decarbonisation measures
+Measures
+Use sustainable fuels and technologies
+Use sustainable fuels in air, ocean and road
+freight
+Increase electrification of the fleets
+Climate-neutral building design
+Results for 2021
+€156 million used
+use of sustainable fuels in road transport and the building
+of sustainable real estate is being promoted - with this also
+being pursued by eCommerce Solutions.
+In the year under review, decarbonisation measures
+totalling €156 million were carried out, and Realised
+Decarbonisation Effects amounted to 728 kilotonnes of
+CO2e. At 86%, the share of electricity from renewable
+sources used at our sites remained at the same high level
+as the previous year. In addition to our reduction measures,
+we offer our customers offsetting products to compensate
+for GHG emissions; in accordance with the GHG Protocol
+and for the presentation of the Realised Decarbonisation
+Effects, this offsetting is not taken into account for the cal-
+culation of our GHG footprint.
+€28 million used for the purchase of
+sustainable fuels in addition to the legally
+required blending
+Share of sustainable fuels amounts to 1.3%
+€115 million used
+Some 20,700 e-vehicles used in pick-ups and
+deliveries
+€13 million used for climate-neutral
+technologies
+Targets for 2030
+60% e-vehicles used in pick-ups and deliveries
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+and falling, as well as carrying heavy objects. Accidents are
+analysed to determine the cause and to introduce measures
+aimed at continually improving safety for our employees.
+Additionally, we hold regular work meetings and workplace
+inspections and place signage at locations with greater
+potential hazards to increase the awareness of employees.
+We measure the success of these initiatives based on
+the lost time injury frequency rate per 200,000 working
+hours (LTIFR). In the year under review, we were able to
+maintain the figure at the previous-year level of 3.9, as
+planned. Each work-related injury led to 18.3 missed work-
+days on average. We have set an ambitious goal for 2022:
+lowering the LTIFR to 3.7 despite the ongoing influence of
+the pandemic. Furthermore, we will step up our occupa-
+tional safety and communication initiatives. We anticipate
+lowering this indicator to below 3.1 by 2025.
+55
+can only access the data they need to perform their duties.
+All systems and data are backed up on a regular basis, and
+critical data are replicated across data centres. Additionally,
+by performing regular software updates, we can fix poten-
+tial security vulnerabilities and protect system functionality.
+Communication measures, regular phishing and IT
+crisis simulations and training sessions help employees
+and executives alike become more aware of possible
+cybersecurity risks. Participation in Information Security
+Awareness training is mandatory for all employees with a
+computer workstation. All participants who have already
+completed their training must update their certification
+every two years. In the reporting period, the share of valid
+training certificates amongst middle- and upper-level
+management was 98%.
+Tax strategy as a standard adhered to worldwide
+Our tax strategy is aligned with our Group strategy and must
+be adhered to throughout the Group. The overarching ap-
+proach applied by the Group is that taxes are always inci-
+dental to and follow business needs. We do not undertake
+aggressive tax planning or enter into artificial arrangements
+with the goal of avoiding taxes. Our Group maintains loca-
+tions in more than 220 countries and territories, including
+some with lower tax rates than those in Germany. These
+locations are necessary for carrying out our operational
+business in those regions. None of our companies was es-
+tablished with the purpose of obtaining tax benefits or is
+currently used to pursue aggressive tax structuring.
+In interpreting and applying tax legislation, we do not
+merely follow the letter of the law, but also consider its
+spirit and intended purpose. As a globally active group of
+companies, our activities necessarily include operations in
+countries where uncertainty is high. We mitigate this uncer-
+tainty through continual dialogue with tax authorities and
+tax advisers to obtain the greatest possible degree of legal
+certainty. This allows us to meet tax compliance require-
+ments in the countries in which we operate to the best of
+our knowledge and belief. Our Group risk management sys-
+tem incorporates a tax risk management framework that
+enables us to monitor and avoid tax risk as far as possible.
+In the reporting period, we recognised taxes and social
+security contributions totalling €4,566 million.
+Taxes and social security contributions
+€m
+Income taxes paid
+2020
+2021
+754
+1,323
+Other business taxes
+306
+322
+Deutsche Post DHL Group - 2021 Annual Report
+132
+133
+other operating taxes
+174
+The central functions of Group Chief Information Secu-
+rity Officer, IT Audit, Data Protection and Corporate Security,
+as well as the corresponding divisional functions, monitor
+and assess threats and new potential risks on an ongoing
+basis and ensure compliance with security standards. We
+limit access to our systems and data such that employees
+189
+Our cybersecurity management activities protect the in-
+formation of the Group, our business partners and our
+employees as well as IT systems from unauthorised ac-
+cess or manipulation and data misuse, ensures uninter-
+rupted availability and enables reliable operations. Our
+internal guidelines and processes are closely aligned with
+ISO 27002 and our data centres are certified in accordance
+with ISO 27001.
+In addition, Corporate Internal Audit conducted
+19 audits relating to respect for human rights and verified
+that the agreed follow-up measures had been implemented.
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Deutsche Post DHL Group - 2021 Annual Report
+58
+violations using a standardised process. Information on
+relevant violations is collected and included in the regular
+compliance reports made to the Board of Management and
+to the Supervisory Board's Finance and Audit Committee,
+Report of the Supervisory Board.
+In the interest of raising awareness of compliance
+amongst employees, four Compliance Weeks were carried
+out for the first time in the year under review. These were
+cross-divisional and were held in various regions. Commu-
+nications activities included town hall meetings with Board
+of Management members and round tables with executives
+and divisional compliance officers. In addition, campaigns
+were launched via in-house communication channels to
+increase participation, primarily virtually in view of the
+continuing pandemic.
+The compliance training certification rate was 96% in
+middle and upper management in the year under review. We
+anticipate that at least 97% valid training certification in mid-
+dle- and upper-level management will be available in 2022.
+In the context of its 207 audits, Corporate Internal Audit
+also reviewed compliance management system processes
+and the implementation of agreed follow-up measures.
+Findings from the regular audits facilitate the identifica-
+tion of other compliance risks and the refinement of the
+compliance programme.
+Respecting human rights
+Our commitment to respect for human rights includes ad-
+herence to the principles of the UN Global Compact and
+the International Labour Organization (ILO), which we have
+embedded in our Codes of Conduct and outlined in greater
+detail in our Human Rights Policy Statement. These stipu-
+late clear requirements and responsibilities for our employ-
+ees and executives as well as our business partners, and
+contribute to the general understanding and implementa-
+tion of the principles of the UN Global Compact throughout
+the Group. The policy statement applies to all employees
+and executives, and also clarifies our expectations and
+goals for our business partners.
+Our human rights activities focus on the prevention of
+child and forced labour, decent working conditions (remu-
+neration, working hours, occupational health and safety)
+and the right to freedom of association. Our executives
+play a key role when it comes to implementing our values
+and objectives, so we have made the Code of Conduct an
+integral component of their employment contracts. The
+Supplier Code of Conduct is a binding component of the
+Group's contracts with suppliers, including subcontractors.
+By signing, they commit to complying with our ethical and
+environmental principles and implementing them in their
+own supply chains.
+The internal management system ensures that our
+Human Rights Policy Statement is implemented throughout
+the Group. A key component is training initiatives and on-
+site reviews conducted by specially trained and externally
+certified professionals from the divisions and corporate
+headquarters. A risk-based approach is taken to the selec-
+tion of countries and locations for the on-site reviews based
+on internal criteria, such as number of employees, as well
+as external criteria from Verisk Maplecroft's Human Rights
+Index and Transparency International's Corruption Percep-
+tions Index. Additionally, we consider suggestions from
+international trade union confederations. The Employee
+Relations Forum is tasked Group-wide with ensuring re-
+spect for human rights in the workforce.
+Under the leadership of the HR department, on-site
+reviews were held in ten countries in the reporting year.
+These were conducted virtually due to pandemic-related
+travel restrictions. Some cases of non-compliance with
+working time regulations and knowledge gaps concerning
+occupational safety requirements were identified and sub-
+sequently rectified by way of a structured action plan. Addi-
+tional employees were certified according to the SMETA
+standard, so that the annual number of on-site reviews can
+be increased. Moreover, we developed a training modality
+we aim to use to raise employee awareness of the need
+to respect human rights. Participation is recommended
+for all employees and is mandatory for executives. The
+initiative will be launched and communicated to the com-
+pany in 2022. We also participated in Human Rights Day
+on 10 December with internal and external communication
+campaigns.
+When selecting suppliers, Corporate Procurement
+generally prefers those who meet our standards. Supplier
+selection is based on a standardised multistep assessment
+process. Procurement employees are continually trained to
+identify potential supplier-related risks early on. In the year
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Deutsche Post DHL Group - 2021 Annual Report
+59
+under review, Corporate Procurement improved the trans-
+parency of the existing due diligence process by including
+respect for human rights as well as diversity and inclusion.
+Amongst other things, the Supplier Code of Conduct and
+corresponding training module were made available in ad-
+ditional languages and the reporting process for possible
+violations of the code or legal requirements was opened
+up to third parties. In addition, we began developing a
+Group-wide risk management system for uniform supplier
+assessment.
+Cybersecurity
+Employer's social security contributions
+Total
+2,705
+2,921
+100
+4,467
+64
+taxonomy non-eligible
+Operating expenditure³
+of which taxonomy-eligible
+2,512
+36
+2,337
+100
+1,441
+62
+896
+38
+of which taxonomy-eligible
+taxonomy non-eligible
+1 Revenue according to the > Income statement.
+2 Includes investment properties (IAS 40) in addition to the capital expenditure
+reported in accordance with segment reporting, > note 10 to the consolidated
+financial statements.
+3 Investment-related operating expenditure, especially non-capitalised lease
+expenses, repair and maintenance costs.
+60
+60
+6,979
+44
+36,094
+taxonomy non-eligible
+Capital expenditure²
+3,765
+4,566
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Deutsche Post DHL Group - 2021 Annual Report
+EU Taxonomy
+Starting with the reporting period, we are reporting our
+contribution to the European Union's environmental ob-
+jectives of climate change mitigation and climate change
+adaptation according to the guidelines laid down in the EU
+Taxonomy regulation for the first time. To this end, we have
+comprehensively analysed our economic activities and the
+revenue they generate, as well as our capital expenditure
+(capex) and operating expenditure (opex), and determined
+the shares that qualify as taxonomy-eligible.
+In the year under review, we developed a Group policy
+to uniformly implement calculation and documentation
+rules for the taxonomy-eligible shares of revenue, capex
+and opex in our financial and controlling systems. Prior to
+doing so, we conducted an extensive analysis of the report-
+ing processes and relevant posting accounts to enable as-
+signment of economic activities to the individual economic
+activities described in the EU Taxonomy. In doing so, we
+assign our transport services (Sections 6.2, 6.4, 6.5, 6.6,
+6.10) including the required infrastructure (Section 6.15)
+to the transport sector, whilst we allocate real estate not
+used for transportation activities (Sections 7.1, 7.2, 7.7) to
+the construction and real estate sector.
+Some of our services comprise different taxonomy-
+eligible economic activities. In the cases where one-to-one
+allocation is not possible, we primarily use a cost-based
+allocation logic that reflects the different business models
+of the divisions. We avoid double counting by allocating
+revenue, capex and opex to only one economic activity
+respectively.
+During the year under review, in particular the revenue
+from warehousing in the Supply Chain division as well as
+revenue, capex and opex from air freight in the Express
+and Global Forwarding, Freight divisions was classified as
+taxonomy non-eligible. Neither of these economic activities
+is currently reflected in the EU Taxonomy guidelines.
+57
+The European Commission has announced further acts
+and clarifications for the application and interpretation of
+the existing guidelines, which will address additional envi-
+ronmental goals as well as adapt previous guidelines which,
+in future, could have an impact on the information to be
+reported.
+€m
+Revenue¹
+of which taxonomy-eligible
+Amount
+Share (%)
+81,747
+100
+45,653
+56
+Taxonomy-eligible share of economic activities, 2021
+According to Regulation (EU) 2020/852, Article 8
+44
+of which taxes on capital, real estate and
+vehicles
+With our compliance management system (CMS) we
+have implemented effective measures for the prevention of
+corruption and bribery throughout the Group. Responsibil-
+ity for designing the system lies with the Chief Compliance
+Officer. Uniform minimum standards are laid down in the
+CMS and accompanied by related activities initiated by the
+compliance officer in the divisions.
+3.9
+of which Express
+2.1
+1.8
+Global Forwarding, Freight
+0.7
+0.7
+Supply Chain
+0.5
+0.5
+eCommerce Solutions
+1.4
+1.8
+Post & Parcel Germany
+Group Functions
+11.0
+11.7
+0.4
+0.2
+Working days lost per accident
+Number of fatalities due to workplace
+accidents
+3.9
+17.2
+LTIFR
+2020
+55
+ences. Its aim is to ensure that all employees, irrespective
+of their sexual orientation and gender identity, are able to
+go about their work unhindered. As a founding member
+of the PROUT AT WORK Foundation, we are committed to
+providing a collegial, discrimination-free workplace so that
+our employees can achieve their individual career goals
+regardless of their sexual orientation or gender identity.
+In line with our inclusive approach, we give disabled
+individuals professional prospects. In Germany, employ-
+ers are required by law to ensure that employees with
+disabilities make up at least 5% of their workforce. At
+Deutsche Post AG, our principal entity in Germany, 8.0%
+of the total workforce represented employees with dis-
+abilities in the reporting year, that is 14,652 persons with
+disabilities, 15 of whom were trainees. This figure is signif-
+icantly higher than the statutory quota.
+In Germany, we offered a total of around 2,000 spots
+in our post-secondary educational training programmes
+during the reporting year. We provide college and univer-
+sity graduates with the chance to choose between various
+post-graduate training programmes.
+Our Code of Conduct and Anti-Corruption Policy, along
+with training on these topics, help employees identify situ-
+ations in which the integrity of the company could be called
+into question with respect to relevant third parties. Poten-
+tial violations can be reported around the clock, including
+via a special web application, among other things. Exter-
+nal whistle-blowers can use a form on the Group's website.
+The reported tip-offs are reviewed internally for possible
+Generations Pact Deutsche Post AG
+2021 +/-%
+2020
+Number of employees with
+working time accounts
+of which in partial retirement
+Number of civil servants with
+working time accounts
+30,220
+5,997
+31,449 4.1
+6,735 12.3
+4,104
+1,234
+4,201 2.4
+1,149 -6.9
+of which in partial retirement
+Occupational health and safety
+The health and safety of our employees in the workplace
+is of particular importance to us and is therefore embed-
+ded in our Codes of Conduct. We comply with the Group's
+existing occupational health and safety policies, statutory
+regulations and industry standards. The Group policy on
+occupational health and safety defines seven core elements
+implemented Group-wide in our Safety First manage-
+ment system. The system complies with the international
+ISO 45001 standards, to which various business units are
+also externally certified. Our Supplier Code of Conduct,
+which is a binding part of the Group's contracts with sup-
+pliers, requires our business partners to adhere to these
+same high standards.
+Accident prevention in the workplace is the top priority
+of our occupational health and safety activities. Some of our
+biggest challenges are in our pick-up and delivery oper-
+ations. Bad weather, road work, complex traffic situations
+and dealing with animals require employees to pay atten-
+tion, concentrate and take responsibility for themselves.
+The most frequent causes of accidents are slipping, tripping
+Workplace accident statistics
+2021
+18.3
+In response to demographic change in Germany as well
+as for the purpose of ensuring an ageing-friendly work-
+place, we have established a Generations Pact enabling
+employees of Deutsche Post AG aged 55 and over to reduce
+their working hours. The option of early retirement for civil
+servants (engagierter Ruhestand) is also still in effect.
+SS
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Deutsche Post DHL Group - 2021 Annual Report
+Corporate governance
+Role model for responsible corporate governance
+We intend to serve both as a role model for responsible
+corporate governance in our sector and as a trustworthy
+company. Ensuring our interactions with business partners,
+employees, the capital market and the general public are
+conducted with integrity and within the bounds of the law is
+vital to maintaining our reputation and is the basis for sus-
+tainable business success. We take the appropriate steps
+to guarantee honest and transparent business practices in
+compliance with the law by focusing on training executives
+in compliance-relevant content, building cybersecurity
+skills, expanding sustainable and stable relationships with
+business partners and fully integrating ESG metrics into
+management processes and incentive systems.
+The rules for ethical conduct included in our Codes of
+Conduct are further specified in our Human Rights Policy
+Statement, our Anti-Corruption and Business Ethics Stan-
+dards Policy and our Corporate Procurement Policy. Our
+focus at all times is on preventing potential violations of
+statutory requirements and internal guidelines.
+Corporate governance
+Topic
+Compliance (including anti-corruption
+and -bribery matters)
+1 Management indicator starting in 2022.
+Measure
+Corporate Internal Audit evaluates the effectiveness
+of our risk management system, control mechanisms, and
+management and monitoring processes, contributing to
+their improvement. It does this by performing indepen-
+dent regular and ad hoc audits at all Group companies and
+at corporate headquarters with the authority of the Board
+of Management. The audit teams discuss the audit findings
+and agree on measures for improvement with the audited
+organisational units and their management. The Board of
+Management is regularly informed of the findings. The
+Supervisory Board is provided with a summary once a year.
+Trusted business partner thanks to compliance
+We render all of our services in compliance with current
+legislation and in accordance with our own values. Com-
+pliance includes legally required disclosures relating to
+anti-corruption and -bribery matters. We observe all appli-
+cable international anti-corruption standards and statutes
+and are a member of the Partnering Against Corruption
+initiative of the World Economic Forum.
+Ensuring legally compliant conduct in our business
+activities and in our interactions with employees is an
+essential task of all Group management bodies. In line with
+Participation of executives in middle- and
+upper-level management in compliance
+training
+Target for 2022
+our objective, participation of executives in middle- and
+upper-level management in various types of compliance
+training is mandatory. We believe one thing: managers have
+to be well informed to identify potential compliance risks
+and ensure that such risks are mitigated appropriately.
+The foundation to this approach is our compliance
+training comprising our Core Compliance Curriculum (anti-
+corruption training, competitive compliance, Code of Con-
+duct) and data protection training. All participants who have
+already completed their training must update their certifi-
+cation every two years. Starting in the 2022 financial year
+we will use the share of valid training certificates amongst
+executives in middle- and upper-level management as a
+management-relevant KPI.
+of which as a result of traffic accidents
+56
+56
+Share of valid training certificates in middle
+and upper management¹ is at least 97%
+The Go Teach programmes were enhanced with virtual
+experiences, enabling us to support young people through-
+out the pandemic and improve their employability. Our em-
+ployees in numerous countries also supported local relief
+organisations in their fight against COVID-19.
+We expanded our newest programme, GoTrade, to ad-
+ditional countries, including in Africa via the Express and
+Global Forwarding, Freight divisions. Along with national
+governments and multinational organisations, we transfer
+knowledge about international trade to small and medi-
+um-sized companies in emerging and developing countries,
+thereby unlocking access to global markets.
+5
+4
+COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
+Deutsche Post DHL Group - 2021 Annual Report
+We carry out health projects and local initiatives to create a
+health-promoting work environment and raise awareness
+of a healthy lifestyle amongst our employees. Incentives are
+provided to local management to offer health-promoting
+programmes to employees and their families.
+The Chief Medical Officer advises the Board of Man-
+agement in all matters regarding occupational health - for
+instance how to deal with physical and psychological dis-
+eases in the work environment - as well as how to deal with
+the circumstances of a pandemic or epidemic. During the
+year under review, we progressed vaccination and testing
+of our employees at the locations throughout the Group.
+Some 75,000 vaccinations were given in Germany alone.
+The Group's worldwide sickness rate was 5.5% in the year
+under review, nearly the same as in the prior year (5.4%) in
+spite of the pandemic.
+Some of our employees work in countries that offer
+insufficient statutory health coverage, or none at all. For
+this reason, we offer employees and their families in nu-
+merous countries high-quality primary or supplementary
+health insurance coverage at attractive terms through our
+Group's in-house employee benefits programme. Some
+250,000 employees in 100 countries are covered by this
+programme.
+Corporate citizenship
+5
+We contribute to the socioeconomic development of the re-
+gions in which we operate through our sites, our employees
+and our business partners, thereby making a contribution
+to social and individual prosperity. As part of our corporate
+citizenship initiatives, we are leveraging our global network
+and the expertise of local employees in line with our pur-
+pose of "Connecting people, improving lives".
+Our employees volunteered locally in many capacities in the
+reporting year. Following natural disasters, they supported
+locales such as Indonesia with the GoHelp programme.
+After the flood disaster in parts of Germany, Luxembourg
+and Belgium, our workforce donated generously to our "We
+help each other" fund. This financial support was quickly
+distributed to affected employees without a lot of red tape.
+Contributing to economic development and social
+progress
+Large numbers of employees participate in the
+Go programmes
+in their personal lives but also at work, to help society and
+the environment and to enhance the Group's reputation.
+We therefore measure the success of our initiatives using
+the approval rate for the survey question asking whether
+our employees are proud of Deutsche Post DHL Group's
+contribution to society. In the reporting year, 79% of all em-
+ployees responded positively (previous year: 78%).
+5
+We dignify employee engagement through our Global
+Volunteer Day, the "DHL's Got Heart" initiative and the Im-
+proving Lives Fund. Volunteering encourages employees to
+participate in, and give back to, local communities.
+Our initiatives enable us to use our strengths and capabil-
+ities to effect change locally and to work together to meet
+global challenges. We partner with established interna-
+tional organisations to ensure that our initiatives have the
+greatest impact possible. With GoGreen (environmental
+protection), GoHelp (disaster management), GoTeach
+(increasing employability) and GoTrade (promoting trade)
+we also support SDGs 4, 5, 8, 11, 13 and 17.
+Partnerships and initiatives
+Based on the Group-wide annual survey of employees,
+we know that corporate citizenship is a relevant factor in
+determining their overall level of motivation. They want to
+contribute to social and environmental objectives not only
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+Deutsche Post DHL Group - 2021 Annual Report
+68
+80
+in different sectors all over the world, we are able to diver-
+sify our risk portfolio and thus counteract the incumbent
+risks. Our future success moreover depends on our ability
+to continuously improve our existing business, seamlessly
+integrate new business and grow in our most important
+markets and segments.
+The eCommerce Solutions division is responsible for
+domestic and international non-time-definite standard
+parcel delivery services in various countries around the
+globe. It predominantly serves customers in the fast-
+growing e-commerce sector. Our goal is to leverage our
+international resources and services to build a cross-bor-
+der solutions platform that can be connected to the most
+cost-efficient networks for last-mile delivery. We want to
+grow profitably in all sectors and segments. We took
+measures to counteract the fundamental risk of rising
+cost pressure and to improve network efficiency and cost
+flexibility.
+In the German mail and parcel business, we are re-
+sponding to the challenges posed by the structural shift
+from a physical to a digital business and the continual de-
+cline in letter mail occurring parallel to the steady increase
+in volumes of parcels and merchandise mail items. We are
+counteracting the risk arising from changing demand by
+expanding our range of services. Due to the e-commerce
+boom, we expect our parcel business to continue growing
+in the coming years and are therefore expanding our parcel
+network. We are also expanding our range of electronic
+communications services, securing our standing as a qual-
+ity leader and, where possible, making our transport and
+delivery costs more flexible. We follow developments in
+We currently do not see any specific corporate strategy
+opportunities or risks of material significance, either for the
+Group or individual divisions.
+Legal and compliance-related opportunities and risks
+Legal disputes or legal proceedings may arise or be initiated
+in cases of non-compliance with national or international
+laws, regulations or agreements. Examples are violations
+of antitrust and competition law or of regulatory, statutory
+or contractual requirements. Investigations of any such
+violations may cause considerable (financial) sanctions to
+be imposed in the context of legal proceedings or out-of-
+court settlements.
+We have established a corporate compliance unit to
+monitor adherence to Group-wide standards at both Group
+and divisional level with respect to typical compliance risks.
+The compliance unit monitors adherence to external laws
+and regulations and our corresponding internal policies to
+prevent risks from materialising. In addition to our compli-
+ance initiative aimed at fighting corruption and violations of
+cartel and competition law, we have introduced initiatives
+in all divisions intended to ensure compliance with data
+protection laws - for example to ensure adherence to the
+provisions of the European Union's General Data Protection
+Regulation (GDPR). A similar, Group-wide compliance initia-
+tive aims to ensure adherence to international and national
+export controls and embargo regulations.
+Opportunities and risks arising from capital
+expenditure and projects
+Our Group invests in growing our network, in buildings and
+technical equipment, in IT solutions and in our fleet of vehi-
+cles and freight carriers. This can lead to risk in the event of
+deviations from budgets. Deviations from time frames and
+in implementation could impair the continuity and quality
+of the services we provide. Complex projects or a lack of
+resource availability may likewise lead to deviations from
+budgets or time frames. The Group is constantly on the
+lookout for attractive, financially advantageous investment
+options to firm up our divisions' positioning.
+Project management and project and investment mon-
+itoring keep a constant watch on the status of investments
+and current projects in order to identify risks at an early
+stage so that targeted countermeasures can be taken. We
+report regularly to the Group Board of Management on the
+status of projects under monitoring in our reporting system.
+The Supervisory Board is additionally provided with regu-
+lar, comprehensive reports on the Group's biggest projects.
+Moreover, the Group Board of Management is informed
+promptly of any critical projects.
+Operational opportunities and risks
+In the Supply Chain division, our success is highly de-
+pendent on our customers' business performance. Since
+we offer companies a widely diversified range of products
+We do not currently see any specific opportunities or
+risks of material significance in the area of capital expen-
+diture and projects.
+the market very closely and take them into account in our
+earnings projections.
+At present, we do not see any specific legal or compli-
+ance-related opportunities or risks of material significance.
+Carbon tax
+In the Express division, our future success depends
+above all upon general factors such as trends in the com-
+petitive environment, costs and quantities transported. We
+plan to keep growing our international business and expect
+a further increase in shipment volumes. Based upon this
+assumption, we are investing in our network, our services,
+our employees and the DHL brand.
+Currency effects (opportunity and risk)
+Logistics services are generally provided in bulk and re-
+quire a complex, external operational infrastructure with
+high quality standards. Any weaknesses with regard to
+the tendering, sorting, transport, warehousing, customs
+Medium
+n.a.
+n.a.
+Inflation
+Medium
+Availability of sustainable aviation fuels (SAF)
+Pricing approval action
+Medium
+Medium
+Medium
+Restriction of GHG emissions
+COVID-19
+Opportunities and risks arising from corporate strategy
+Over the past few years, the Group has ensured that its
+business activities are well positioned in the world's
+fastest-growing regions and markets. We are also con-
+stantly working to create efficient structures in all areas
+to enable us to flexibly adapt capacities and costs to de-
+Medium
+Medium
+mand a condition for lasting, profitable business success.
+With respect to our strategic orientation, we are focusing
+upon our core competencies in the logistics and letter
+mail businesses with an eye towards growing organically
+and simplifying our processes for the benefit of our cus-
+tomers. Our earnings projections regularly take account
+of development opportunities arising from our strategic
+orientation.
+We take action early to counter potential strategic risks.
+In so doing, it helps that our portfolio of users and supplier
+companies are as broad as possible and that we focus on
+profitable sectors and products, regularly review customer
+and product performance, practice strict cost management
+and add surcharges whenever necessary.
+In the Global Forwarding, Freight division, we purchase
+transport services for interested buyers from airlines, ship-
+ping companies and freight carriers rather than providing
+them ourselves. In the best case, we are able to outsource
+transport services at such a low rate that we can generate
+a margin. In the worst-case scenario, we bear the risk of not
+being able to pass on all price increases to our customers.
+The extent of our opportunities and risks essentially de-
+pends on trends in the supply, demand and pricing of
+transport services as well as the duration of our contracts.
+Comprehensive knowledge in the area of brokering trans-
+port services helps us to capitalise on opportunities and
+minimise risk.
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+have therefore designed our systems to protect against
+complete system failure. All of our software is updated
+regularly to address bugs, close potential gaps in security
+and increase functionality. We employ a patch management
+process - a defined procedure for managing software up-
+grades - - to control risks that could arise from outdated
+software or from software upgrades.
+69
+We currently do not see any other specific IT-related
+opportunities or risks of material significance.
+Financial opportunities and risks
+As a global operator, we are exposed to financial opportu-
+nities and risks arising from fluctuating foreign exchange
+rates, interest rates and commodities prices, as well as the
+general risk inherent in the use of financial instruments.
+Changes in pension obligations also impact our business.
+We attempt to reduce the volatility of our financial perfor-
+mance due to financial risk by implementing both opera-
+tional and financial management measures.
+With respect to currencies, opportunities and risks re-
+sult from scheduled foreign currency transactions as well
+as those budgeted for the future. Any significant currency
+risks arising from budgeted transactions are quantified as
+a net position over a rolling 24-month period. Highly cor-
+related currencies are consolidated in blocks. At the Group
+level, the most important net surpluses are budgeted for
+the US dollar block as well as for the pound sterling, the
+Japanese yen and the Australian dollar. The Czech koruna is
+the only currency with a considerable net deficit. As at the
+reporting date, there were no significant currency hedges
+for scheduled foreign currency transactions.
+Any general depreciation of the euro presents an op-
+portunity as regards the Group's earnings position. The
+main risk to the Group's earnings position would be a gen-
+eral appreciation of the euro.
+We currently assess the aggregate effect of all foreign
+currency gains and losses both as an opportunity and a risk
+of medium relevance for the Group.
+As a logistics group, our biggest commodity price
+risks result from changes in fuel prices (kerosene, diesel
+and marine diesel). In the DHL divisions, most of these risks
+are passed on to customers via operating measures (fuel
+surcharges).
+The key control parameters for liquidity management
+are the centrally available liquidity reserves. The Group's
+liquidity is secured over the short and medium terms.
+Moreover, the Group enjoys open access to the capital
+markets on account of its good ratings within the industry
+and is well positioned to ensure that long-term capital
+requirements are fulfilled. We therefore see no significant
+risk to the Group at present in the area of liquidity.
+Further information on the Group's financial posi-
+tion and finance strategy as well as on the management
+of financial risks can be found in the Report on economic
+position and in > note 43 to the consolidated financial statements.
+Detailed information on risks in relation to the Group's de-
+fined benefit retirement plans can be found in > note 37 to
+the consolidated financial statements.
+Risk may also arise from our financial and managerial
+accounting processes and our budgetary processes. We
+monitor those processes continuously to prevent such
+risk from materialising. We do not currently see any other
+significant financial opportunities or risks.
+Tax-related opportunities and risks
+Due to the international scope of our operations, we are
+subject to a variety of tax regimes. Opportunities and risks
+arise from the introduction of new types of taxes, legislative
+changes and judicial rulings.
+We mitigate this risk through continual dialogue with
+taxation authorities and tax advisors to obtain the greatest
+possible degree of legal certainty. This allows us to meet
+tax compliance requirements in the countries in which we
+operate to the best of our knowledge and belief. Our Group
+risk management system incorporates a tax risk manage-
+ment framework that enables us to monitor and avoid tax
+risk as far as possible.
+Currently, we have not identified any significant tax-
+related opportunities or risks.
+Medium
+We also take continuous action to minimise risk, such
+as holding regular training courses for our employees and
+monitoring all of our networks and IT systems globally via
+our Cyber Defence Centre, along with regular information
+security incident simulations.
+Deutsche Post DHL Group - 2021 Annual Report
+We limit access to our systems and data such that
+employees can only access the data they need to perform
+their duties. All systems and data are backed up on a regular
+basis, and critical data are replicated across data centres.
+In addition to outsourced data centres, we operate central
+data centres in the Czech Republic, Malaysia and the United
+States. Our systems are thus geographically separate and
+can be replicated locally. Overall, a possible IT security in-
+cident represents a risk of medium importance.
+Deutsche Post DHL Group - 2021 Annual Report
+69
+clearance or delivery of shipments could seriously com-
+promise our competitive position. To consistently guar-
+antee reliability and punctual delivery, processes must be
+organised so as to proceed smoothly with no technical or
+personnel-related glitches. We counteract potential opera-
+tional risks, e.g. through efficient workflows and structures
+and by continuously improving our fleet management. We
+also take out insurance policies to guard against potential
+losses.
+Most recently, the global pandemic has revealed how
+external factors can reduce the availability of our employ-
+ees and hence potentially impair our operating perfor-
+mance. For information on the measures we are taking to
+protect our employees, please refer to the category titled
+"Human resources" and "Environment, catastrophes and
+epidemics".
+A large number of internal processes must be aligned
+so that we can render our services. These include - in addi-
+tion to our fundamental operating processes - supporting
+functions such as sales and purchasing. The extent to which
+we succeed in aligning our internal processes to meet cus-
+tomer needs whilst simultaneously lowering costs corre-
+lates with potential positive deviations from the current
+projections. Our earnings projections already incorporate
+the expected cost savings.
+Increased restrictions imposed by law to combat cli-
+mate change can be expected in the coming years, including
+limits on air transport or access to city centres. In certain
+cases this may also affect our business models. The re-
+sulting risk represents a risk of medium significance for us
+currently. At this time we do not see any additional specific
+operational opportunities or risks of material significance
+in this regard.
+Opportunities and risks arising from human resources
+It is essential for us to have qualified and motivated employ-
+ees in order to achieve long-term success. In some mar-
+kets, however, demographic change may lead to a scarcity
+of available workers.
+Our work in the area of human resources aims to avoid
+potential risk that may arise from changing demographic
+and social structures. The goal is to motivate our personnel,
+to provide them with employee development opportunities
+and to foster their long-term loyalty to the company. Of
+particular importance in this context is training manage-
+ment and team leaders in our leadership attributes, which
+are applicable to all Group executives and serve as a be-
+havioural compass.
+We keep a constant eye on developments in the job
+market, communicate directly with our employees and
+endeavour to further enhance our attractiveness to both
+existing and prospective employees.
+Chronic disease or acute illnesses on the part of em-
+ployees may negatively impact their health and our ability
+to provide our services. We therefore place high value on
+occupational health and safety standards. We additionally
+counter the risk of disease or illness by carrying out initia-
+tives tailored to local requirements and by cooperating
+across divisions in the management of healthcare initiatives,
+such as app-supported exercise programmes, options to
+have check-ups performed on-site and the Group-wide em-
+ployee benefits programme. In addition, we address risk in
+the area of mental health using a new system for assessing
+risks associated with mental stresses.
+With approximately 590,000 employees (headcount
+as at 31 December 2021) in over 220 countries and ter-
+ritories, upholding human rights is an important priority
+also reflected in our own Human Rights Policy Statement.
+If infringements are reported, we will take appropriate
+measures for clarification.
+Thanks to a targeted and coordinated approach, we
+were able to limit the impact of the pandemic in the year
+under review without generating any serious repercussions
+for our sickness rate. We foresee similar results for 2022.
+Overall, we do not currently see any specific personnel-
+related opportunities or risks of material significance.
+Opportunities and risks arising from information
+technology
+The security of our information systems is particularly im-
+portant to us. The goal is to ensure continuous IT system
+operation and prevent unauthorised access to our systems
+and databases. To this end, we have defined guidelines,
+standards and procedures based upon ISO 27001, the in-
+ternational standard for information security management.
+In addition, IT risks are monitored and assessed on an on-
+going basis by Group Risk Management, Internal Audit,
+Data Protection and Corporate Security. We estimate the
+latent risk of third parties gaining unauthorised access to
+our systems and jeopardising the availability of our data
+as medium.
+For our business processes to run smoothly at all times,
+the essential IT systems must be continuously available. We
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+70
+IT security incident
+Environment, catastrophes and epidemics
+Continued strong employee engagement
+Monitor early warning indicators
+Review measures
+Review results
+5 Control
+Identify
+Analyse
+Define measures
+Assess
+1 Identify and assess
+Opportunity and risk management process
+64
+Deutsche Post DHL Group - 2021 Annual Report
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+63
+64
+Identify and assess: Managers in all divisions and
+regions evaluate the opportunity and risk situation
+on a quarterly basis and document the actions taken.
+They use scenarios to assess best, expected and worst
+cases. Each identified risk is assigned to at least one risk
+owner who assesses and monitors the risk, specifies
+possible procedures for going forward and then files a
+report. The same applies to opportunities. At least one
+management process used to measure net risk expo-
+sure must be reported for each opportunity or risk. In
+isolated cases where it is not initially possible to make
+The simulation is a stochastic model that takes the
+probability of occurrence of the underlying risks and op-
+portunities into consideration and is based upon the law of
+large numbers. Randomly selected scenarios - one for each
+opportunity and risk - are combined on the basis of the dis-
+tribution functions for each individual opportunity and risk.
+The most important steps in our opportunity and risk
+management process are:
+Our early-identification process links the Group's
+opportunity and risk management with uniform report-
+ing standards using a proprietary IT application that is
+constantly updated. Furthermore, we use a Monte Carlo
+simulation for the purpose of aggregating opportunities
+and risks in standard evaluations.
+In 2021 we launched a Group-wide project to comply
+with the recommendations of the Task Force on Climate-
+related Financial Disclosures (TCFD). This involves discuss-
+ing and assessing both transitory and physical risks stem-
+ming from climate change using various scenarios. The
+material risks identified during this process are explained
+in "Opportunity and risk categories".
+As an internationally operating logistics company, we are
+facing numerous changes. Our aim is to identify the re-
+sulting opportunities and risks at an early stage and take
+the necessary measures in the specific areas affected in
+due time to ensure that we achieve a sustained increase
+in enterprise value. Our Group-wide opportunity and risk
+management system facilitates this aim. Each quarter, ex-
+ecutives estimate the impact of future scenarios, evaluate
+opportunities and risks in their departments and present
+planned measures as well as those already taken. Queries
+are made and approvals given on a hierarchical basis to
+ensure that different managerial levels are involved in the
+process. Opportunities and risks can also be reported at any
+time on an ad-hoc basis.
+Uniform reporting standard
+Opportunity and risk management
+Our aspiration is to be a reliable and trustworthy partner
+in all business relationships. When conducting day-to-day
+business, our managers serve an important function as role
+models to the employees and business partners, which is
+why corresponding training is of such importance for ex-
+ecutives. We measure success in this area on the basis of
+the share of valid training certificates at the middle and
+upper management levels. This is yet another KPI that will
+be used to manage the Group in the upcoming financial
+year. We anticipate the share of valid training certificates to
+be at least 97% in middle and upper management in 2022.
+2
+Divisions
+2 Aggregate and report
+Review
+Supplement and change
+Aggregate
+Report
+Corporate
+Audit
+reviews
+processes
+Both preventive and detective control mechanisms are
+used to ensure that the minimum requirements are met
+along with all division-specific and local requirements.
+• Risks that could lead to material misstatements in the fi-
+nancial reports are identified and minimum requirements
+are formulated on the basis of such risks.
+The approach of the accounting-related ICS in summary:
+The internal control system takes a risk-based approach
+that is defined in a Group guideline and takes both quan-
+titative and qualitative aspects into account.
+The ICS was designed to follow the internationally
+recognised COSO framework for internal control systems
+(COSO: Committee of Sponsoring Organizations of the
+Treadway Commission). It is continuously updated and is a
+mandatory and integral part of the accounting and financial
+reporting process of the companies included in the Group.
+Deutsche Post DHL Group has implemented an ac-
+counting-related internal control system (ICS) as part
+of its risk management system. The ICS aims to ensure
+the compliance of (Group) accounting and financial re-
+porting with generally accepted principles. Specifically, it
+is intended to ensure that all transactions are recorded
+promptly, accurately and in a uniform manner on the basis
+of the applicable norms, accounting standards and inter-
+nal Group regulations. Accounting errors are to be avoided
+in principle and significant measurement errors detected
+promptly.
+Disclosures required under Sections 289(4) and 315(4)
+HGB and explanatory report
+management system
+Accounting-related internal control and risk
+Deutsche Post DHL Group - 2021 Annual Report
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+Control: With respect to key opportunities and risks,
+early-warning indicators have been defined that are
+monitored constantly by the risk owners. Corporate
+Audit has the task of ensuring that the Board of Man-
+agement's specifications are adhered to. It also reviews
+the quality of the entire opportunity and risk manage-
+ment operation. The control units regularly analyse all
+parts of the process as well as the reports from Corpo-
+rate Internal Audit and the independent auditor, with
+the goal of identifying potential for improvement and
+making adjustments to processes where necessary.
+Conduct compliance-relevant training
+Overall strategy: The Group Board of Management
+decides on the methodology that will be used to anal-
+yse and report on opportunities and risks. The reports
+created by Corporate Controlling provide the Board
+of Management with an additional, regular source of
+information for managing the Group as a whole. The
+Group Board of Management defines the thresholds
+for risk tolerance and risk-bearing ability and uses the
+Monte Carlo simulation to review the necessity for
+strategic changes on a quarterly basis.
+Operating measures: The measures to be used to
+take advantage of opportunities and manage risks are
+determined within the individual organisational units.
+They use cost-benefit analyses to assess whether
+risks can be avoided, mitigated or transferred to third
+parties.
+3
+Corporate Controlling reports to the Group Board of
+Management and the Supervisory Board on signifi-
+cant opportunities and risks as well as on the poten-
+tial overall impact each division might experience. For
+this purpose, opportunities and risks are aggregated
+for the key organisational levels. We use two methods
+for this. In the first method, we calculate a possible
+spectrum of results for the divisions and combine the
+respective scenarios. The totals for "worst case" and
+"best case" indicate the total spectrum of results for
+the respective division. Within these extremes, the to-
+tal "expected cases" shows current expectations. The
+second method makes use of a Monte Carlo simulation,
+the divisional results of which are regularly included in
+the opportunity and risk reports to the Board of Man-
+agement and the Supervisory Board.
+a quantitative assessment, risks may be assessed on a
+qualitative basis to ensure that the full scope of all risks
+is captured. The results are compiled in a database. We
+also conduct an annual risk workshop for each division
+with the Divisional Boards, as supplements to the quar-
+terly process. Workshop discussion focuses on opportu-
+nities and risks of significance to the whole division. At
+the same time, newly identified opportunities and risks
+are subsequently integrated into the quarterly process.
+Aggregate and report: The controlling units col-
+lect the results, evaluate them and review them for
+plausibility. If individual financial effects overlap, this
+is noted in our database and taken into account in the
+compilation process. After being approved by the di-
+vision risk owners, all results are passed on to the next
+level in the hierarchy. The last step is complete when
+Corporate Audit
+Board of Management
+Opportunity and risk-controlling processes
+Implement
+Plan
+4 Operating measures
+compliance
+Determine
+Manage
+3 Overall strategy/risk management/
+4
+.
+We use the LTIFR per 200,000 working hours to assess
+the success of the measures we take towards occupational
+health and safety. This will become a management-related
+KPI beginning in 2022. We expect to reduce the LTIFR per
+200,000 working hours to 3.7 throughout the Group in
+2022; by 2025, the KPI should be less than 3.1.
+From the 2022 financial year, the share of women in mid-
+dle and upper management positions becomes a manage-
+ment-relevant KPI. In 2022, 25.9% of the positions in middle
+and upper management will be held by women. That share
+should rise to at least 30% by 2025.
+62
+Deutsche Post DHL Group - 2021 Annual Report
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+Pandemic reinforces trend towards online shopping
+The German market for paper-based mail communication
+will continue to decline as digital communication increases.
+As part of our digital transformation agenda for Post & Par-
+cel Germany, we will be realigning our product portfolio to
+reflect the rise in online communication.
+Good growth prospects for eCommerce Solutions
+Growth of our eCommerce Solutions division is dependent
+on local as well as global economic trends. The ongoing
+pandemic and pandemic-related restrictions have contin-
+ued to strengthen the trend towards online shopping and
+again drove strong volume growth across the business
+in the year under review. In all regions, especially in the
+B2C e-commerce sectors, increases in shipping volumes
+exceeded expectations in 2020 and 2021. This trend sta-
+bilised and reached normal levels in the later part of the
+year under review. We expect this trend to continue after a
+normalisation phase during the course of the year and are
+confident that our product portfolio, our digitalisation ac-
+tivities, network and automation investments and our focus
+on quality and customer-centric solutions will continue to
+contribute to the overall growth in 2022.
+Contract logistics market continues to grow
+Growth in eFulfillment and e-commerce as initially accel-
+erated by the pandemic will continue to increase the com-
+plexity of supply chains. This, together with the apparent
+vulnerability of tranditional supply chain set-ups, will in-
+crease the demand for flexible and agile solutions, driving
+outsourcing. Therefore the market for contract logistics is
+likely to continue growing, yet inflation due to scarcity of
+labour and capacity represents both an opportunity and
+a threat.
+We expect volume growth in the European road trans-
+port market to persist at high levels in 2022 as well and
+prices to increase accordingly.
+The acquisition of Hillebrand aligns with our long-term
+strategy to create a relevant footprint in the fast-growing
+ocean freight market.
+Of additional significance for the air cargo market is
+how quickly passenger flights resume, which is closely
+linked to how the pandemic develops.
+Particularly with regard to the core business of air and ocean
+freight, the further development will depend significantly
+on when and how rapidly the capacity, inclusive of vessels
+and aircraft, return to normal. In light of the uncertain mar-
+ket situation, this remains difficult to predict. Despite this,
+the trend is towards a gradual return to normalisation in
+the second half of the year.
+Air and ocean freight business dependent upon the
+easing of the capacity situation
+Highly cyclical international express market
+Experience shows that growth in the international express
+market, particularly in the B2B segment, is highly dependent
+upon the economic situation. We believe that the steadily
+growing cross-border e-commerce sector will continue to
+drive growth in the international express market in 2022.
+A sustained global driver of growth will continue to be
+the structural shift in consumer habits towards e-commerce.
+The current stabilisation phase reflects the unusually high
+growth in the early phase of the pandemic. During 2022
+e-commerce demand is projected to grow once more based
+on increased market volumes and to make a disproportion-
+ately high contribution to GDP growth in the medium term.
+IHS Markit has forecast the following GDP growth for
+key countries and regions in 2022: China is anticipated to
+post growth of 5.3%, moderate for Chinese standards, after
+its race to catch up in 2021. At 3.7%, growth in the United
+States is likely to far outpace the prevailing trend once again
+for reasons including fiscal policy. A rate of 2.9% is forecast
+for Japan. Growth of 3.7% is predicted for the eurozone.
+IHS Markit has recently projected growth of 3.4% for the
+German economy, a conservative estimate in view of the
+higher forecasts issued by the IMF in January 2022 (3.8%)
+and even by the German Council of Economic Experts in
+November 2021 (4.6%).
+Following the robust economic recovery in the reporting
+period, worldwide growth is expected to continue in 2022.
+However, as indications showed in the second half of 2021,
+GDP growth will slow to some 4%, which is still approxi-
+mately one percentage point above the long-term trend.
+Further GDP increase on back of above-average,
+medium-term e-commerce growth
+Future economic parameters
+The information contained in the report on expected devel-
+opments generally refers to the 2022 financial year.
+Forecast period
+EXPECTED
+DEVELOPMENTS,
+OPPORTUNITIES
+AND RISKS
+61
+Deutsche Post DHL Group - 2021 Annual Report
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+62
+Revenue from the German advertising market will
+continue to grow in 2022, driven by the sustained growth
+in online media and the recovery of media segments par-
+ticularly affected by the pandemic.
+In the international letter mail business, rising ship-
+ments of goods are expected to compensate somewhat
+for declining volumes of small-format documents. Whether
+the compensatory effect is stronger or weaker will depend
+on developments in cross-border trade restrictions and air
+freight capacity.
+The German parcel market will continue to grow. The
+shift from in-store to online shopping has now become es-
+tablished for many types of goods. Additional categories of
+products and customers of various ages have joined online
+shopping during the pandemic. After a phase of growth
+normalisation, we expect further growth to be driven by
+e-commerce in the medium term.
+Increase share of female executives
+With regard to the Employee Engagement key performance
+indicator, we anticipate an approval level of more than 80%
+across the Group in 2022; this level is expected to remain
+steady until 2025.
+n.a.
+On the way to reducing our GHG emissions to net zero
+by 2050, we still expect to see an increase in emissions
+in 2022 due to the planned business growth. We aim to
+achieve Realised Decarbonisation Effects of 969 kilotonnes
+of CO2e through targeted measures. By 2030, we plan to
+reduce our GHG emissions to less than 29 million tonnes
+CO2e overall. These efforts also take into consideration the
+GHG emissions of our subcontractors.
+Deutsche Post DHL Group - 2021 Annual Report
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+Beginning in 2022, absolute GHG emissions will become
+the new efficiency target which we manage with the KPI
+Realised Decarbonisation Effects.
+GHG emissions remain at a high level
+In view of the expected EBIT development in combination
+with a predicted increase in the asset charge, we expect
+the EAC to be slightly down year-on-year. Free cash flow
+(excluding the purchase price payment for Hillebrand) is
+projected at around €3.6 billion (+/− max. 5%).
+Expected EAC and free cash flow
+In order to further support our strategic aims and further
+growth even at the expected higher level, we intend to in-
+crease capital expenditure (excluding leasing) in 2022 to
+around €4.2 billion with a similar focus as in prior years.
+Reduce LTIFR
+Capital expenditure to total around €4.2 billion
+Liquidity remains very solid
+payment and purchase price payment for Hillebrand. We
+expect no change in our current credit rating by rating
+agencies as a result.
+Against the backdrop of the sharp rise in free cash flow,
+we anticipate our FFO-to-debt performance indicator to
+remain stable even considering the increased dividend
+Group's credit rating remains the same
+The Board of Management and the Supervisory Board will
+propose a > dividend of €1.80 per share for the 2021 finan-
+cial year (previous year: €1.35 per share) to the sharehold-
+ers at the Annual General Meeting on 6 May 2022.
+Proposed dividend: €1.80 per share
+In the 2022 financial year, we anticipate consolidated EBIT
+of around €8.0 billion (+/- max. 5%). The DHL divisions
+are projected to generate total EBIT of approximately
+€7.0 billion (+/− max. 4%). In the Post & Parcel Germany
+division, EBIT is forecast to come in at around €1.5 bil-
+lion (+/- max. 10%). The earnings contributed by Group
+Functions (formerly: Corporate Functions) is expected to
+amount to around €-0.45 billion.
+Consolidated EBIT of around €8.0 billion expected
+In the 2022 financial year, we expect continually increasing
+B2B volumes to remain a key growth driver in our networks.
+After rising sharply under pandemic conditions, B2C deliv-
+ery volumes are forecast to return to structural growth after
+a stabilisation phase during 2022. The recently observed
+imbalances in international transport markets will remain
+in place well into 2022.
+Sustained earnings growth
+Expected developments
+Due to the dividend payment for the 2021 financial year in
+May 2022, the repayment of a bond in June 2022 and the
+expected closing of the Hillebrand acquisition, our liquidity
+is expected to decrease up to mid-year 2022. Due to the
+usually good business development in the second half of
+the year, the liquidity situation will improve again towards
+the end of the year.
+•
+5
+High
+> 15
+to
+≤ 50
+≤ 15
+Risks
+Medium
+Low
+Significance for the Group:
+Low
+Medium
+High
+Effects
+High-impact risks tend to affect the entire Group, whereas
+medium-impact risks play out at a divisional level and
+low-impact risks at a local level. Qualitative risk can be
+measured for financial risk, reputational risk, operational
+risk and environmental risk.
+The opportunities and risks described here are not nec-
+essarily the only ones the Group faces or is exposed to. Our
+business activities could also be influenced by additional
+factors of which we are currently unaware or which we do
+not yet consider to be material.
+Opportunities and risks are identified and assessed
+decentrally at Deutsche Post DHL Group. Reporting on
+possible deviations from projections, as well as long-term
+and latent opportunities and risks, occurs primarily at the
+country or regional level. In view of the degree of detail
+provided in the internal reports, we have combined the
+decentrally reported opportunities and risks in categories
+for the purposes of this report. It should be noted that the
+99
+66
+figures provided in the underlying individual reports exhibit
+a significant correlation with the performance of the world
+economy and global economic output. Unless otherwise
+specified, a low relevance is attached to the individual
+opportunities and risks within the respective categories.
+The opportunities and risks generally apply to all divisions,
+unless indicated otherwise.
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+Deutsche Post DHL Group - 2021 Annual Report
+67
+62
+Opportunity and risk categories
+Overview of material opportunities and risks
+As outlined on the pages that follow and listed in the over-
+view below, we have assigned material opportunities and
+risks to the following categories:
+Overview of opportunities and risks
+Category
+Significance
+Risk of operational restrictions due to climate change Medium
+> 50
+Probability of occurrence (%)
+Assessing qualitative risk
+The following assessment scale applies to qualitative risk
+(measured on a net basis):
+To maintain the system's effectiveness and implement
+continuous improvements, the ICS is subjected to regular
+reviews using the “four eyes” principle of dual control.
+The Supervisory Board is provided with regular reports
+on the results of the review of ICS effectiveness.
+In addition to the ICS components already described,
+additional organisational and technical procedures have
+been implemented for all companies in the Group. Centrally
+standardised accounting guidelines govern the reconcilia-
+tion of the single-entity financial statements and ensure
+that international financial reporting standards (EU IFRSS)
+are applied in a uniform manner throughout the Group. In
+addition, German generally accepted accounting principles
+(GAAP) have been established for Deutsche Post AG and the
+other Group companies subject to HGB reporting require-
+ments. A standard chart of accounts is required to be ap-
+plied by all Group companies. We immediately assess new
+developments in international accounting for relevance and
+announce their implementation in a timely manner, for ex-
+ample in monthly newsletters. Often, accounting processes
+are pooled in a shared service centre in order to centralise
+and standardise them. The IFRS financial statements of
+the individual Group companies are recorded in a standard,
+SAP-based system and then processed at a central location
+where one-step consolidation is performed. Other quality
+assurance components include automatic plausibility re-
+views and system validations of the accounting data. In
+addition, regular, manual checks are carried out centrally
+at the Corporate Center by Corporate Accounting & Con-
+trolling, Taxes and Corporate Finance. If necessary, we call
+in outside professionals with the requisite expertise. Finally,
+the Group's standardised process of preparing financial
+statements by using a centrally administered financial
+statements calendar guarantees a structured and efficient
+accounting process.
+Over and above the ICS and risk management, Corpo-
+rate Internal Audit is an essential component of the Group's
+control and monitoring system. Using risk-based auditing
+procedures, Corporate Internal Audit regularly examines
+the processes related to financial reporting and reports its
+results to the Board of Management.
+It should, however, always be taken into consideration
+that no ICS, regardless of how well designed, can offer ab-
+solute certainty that all material accounting misstatements
+will be avoided or detected.
+Reporting and assessing opportunities and risks
+In the following, we have reported mainly on those risks
+and opportunities which, from a current standpoint, could
+have a significant impact upon the Group during the fore-
+cast period beyond the impact already accounted for in the
+business plan. In addition, we consider both long-term as
+well as latent opportunities and risks. The risks and oppor-
+tunities have been assessed in terms of their probability
+of occurrence and their impact. The assessment is used to
+classify opportunities and risks as either low, medium or
+high. Medium and high risks and opportunities are con-
+sidered significant, and are shown as black or grey in the
+following table. The following assessment scale is used
+(measured on a net basis):
+55
+65
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+Deutsche Post DHL Group - 2021 Annual Report
+Classification of risks and opportunities
+Probability of occurrence (%)
+Risks
+> 50
+Opportunity/risk
+> 15
+to
+≤15
+<-500
+Planned Group EBIT
+Opportunities
+-500 to 151
+-150 to 0
+0 to 150
+151 to 500
+> 500
+Significance for the Group:
+Low
+Medium
+High
+Effects (€m)
+≤ 50
+n.a.
+Corporate strategy
+n.a.
+Legal and compliance-related
+Market- and customer-specific
+Real estate
+Tax-related
+Financial
+Regulation
+Human resources
+Operational
+n.a.
+Capital expenditure and projects
+Information technology
+We are unable to generally rule out the possibility of
+an economic downturn in specific regions or a stagnation
+or decrease in transport quantities. However, we assume
+that this would not reduce demand in all business units. For
+example - as we have just learned during the pandemic -
+the opposite effect has occurred in our parcel business
+as online sales have resulted in higher demand. Cyclical
+risks can affect our divisions differently depending on
+their magnitude and point in time, which could mitigate
+the total effect. Moreover, we have taken measures in re-
+cent years to make costs more flexible and to allow us to
+respond quickly to changes in market demand. For instance,
+our Coronavirus Task Force was able to respond swiftly and
+flexibly to changes caused by the pandemic. This enabled
+us to keep our supply chain intact and provide the best pos-
+sible service.
+Deutsche Post and DHL are in competition with other
+providers and new competitors entering the market. Such
+competition can significantly impact our customer base as
+well as the levels of prices and margins in our markets. In
+the logistics and letter mail business, the key factors for
+success are quality, confidence and competitive prices.
+Thanks to the high quality we offer, along with the cost sav-
+ings we have generated in recent years, we believe that we
+shall be able to remain competitive and keep any negative
+effects at a low level.
+As a logistics concern, we are additionally exposed to
+the effects of fluctuations in market prices on Group profit.
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+Deutsche Post DHL Group - 2021 Annual Report
+12
+The current rise in inflation represents a risk of medium
+significance.
+In addition, no significant opportunities or risks are
+seen at present in this risk category.
+In line with our ESG Roadmap, we aim to have more
+than 30% of the total fuel we use for air freight come from
+sustainable sources (sustainable aviation fuel - SAF) by
+2030. The possibility that the market supply of SAF may
+not be sufficient therefore represents a risk of medium
+significance.
+growing - and this is precisely what we provide with our
+broad-based service portfolio.
+72
+The trend towards outsourcing business processes
+continues. Supply chains are becoming more complex and
+more international, due in part to an increasing desire on
+the part of many businesses for supplier diversity as a re-
+sult of the global pandemic. However, the added complexity
+also makes supply chains more prone to disruption. The
+need for stable, integrated logistics solutions is therefore
+We negotiate suitable solutions early with our lessors,
+analyse real estate markets and identify suitable properties
+for expanding or optimising the current portfolio based on
+our divisions' business strategies and operational location
+planning. The main objective is to secure the availability of
+properties needed for our core business.
+We expect the positive development of our business to
+carry over into 2022. Growth opportunities will arise in all
+areas of business as the world economy gradually recovers
+and structural growth continues in the area of e-commerce.
+Although the consequences of the pandemic have weakened
+world trade, our DHL divisions are benefitting from rising
+demand for complex logistics solutions, amongst other
+things, thanks to our position as the global market leader.
+As a provider of choice, our business is based on our
+customers' needs. Our customers are likewise exposed
+to macroeconomic trends that impact growth in their re-
+spective sectors. We monitor market developments on an
+ongoing basis and review the potential financial effects
+of relationships with business partners and suppliers at
+regular intervals to enable us to avert any risk that could
+arise from potential insolvencies, for example, at an early
+stage. Our Customer Solutions & Innovation unit uses a risk
+dashboard for this purpose.
+Market- and customer-specific opportunities and risks
+Macroeconomic and sector-specific conditions are a key
+factor in determining the success of our business. Along
+with the global economic cycle, of particular importance
+here is the evolution of the logistics market in the interplay
+between our company and our stakeholders, and including
+our customers, suppliers and competitors. Changes in de-
+mand present both opportunities and risks.
+We do not currently see any specific opportunities or
+risks of significance in the area of real estate.
+Opportunities and risks arising from political,
+regulatory or legal conditions
+Deutsche Post DHL Group is one of the world's largest cor-
+porate users of industrial properties. A large portion of the
+Group's industrial real estate portfolio consists of leased
+properties. Ownership solutions have additionally been im-
+plemented for a number of especially strategic properties.
+Our business may be impacted by opportunities and risks
+arising from the lease, purchase, sale, construction or use
+of real estate. A global team of real estate professionals
+manages the Group portfolio and ensures that any opportu-
+nities or risks are identified at an early stage and a suitable
+response is selected.
+transactions
+Opportunities and risks related to real estate
+71
+Deutsche Post DHL Group - 2021 Annual Report
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+Annual Corporate Governance
+Statement
+pursuant to Sections 289f and 315d HGB with respect to
+Deutsche Post AG and Deutsche Post DHL Group.
+In addition, our strong position in all the regions in
+which we operate allows us to compensate for declines in
+certain trade lanes based on growth in others. Whether and
+to what extent the logistics market will grow depends on
+a number of factors.
+Our business is fundamentally intertwined with the politi-
+cal and legal environment in which we operate. The stabil-
+ity and security of international transport routes represent
+the first line in this framework, and they could be critically
+disrupted by events ranging from geopolitical develop-
+ments to military conflicts. In addition, the international
+transport of goods is subject to the import, export and
+transit regulations of more than 220 countries and territo-
+ries as well as their applicable foreign trade laws. In recent
+years, not only has the number but also complexity of such
+laws and regulations increased significantly (including
+their extraterritorial application). Violations are also being
+pursued more aggressively by the competent authorities,
+with stricter penalties imposed. We have implemented a
+Group-wide compliance programme in response to this de-
+velopment. In addition to the legally prescribed checking
+of all senders, recipients, suppliers and employees against
+current embargo lists, this specifically includes the legally
+Moreover, the same CEP association had previously
+(on 4 December 2015) filed an action against the pricing
+approvals granted for the years from 2016 to 2018. The
+German Federal Administrative Court ruled on that action
+brought by the CEP association on 27 May 2020. The only
+one of the approvals that the court deemed unlawful con-
+cerned the increase in the price of a standard domestic
+letter to €0.70 for the period from 2016 to 2018. The rul-
+ing is only directly applicable to the plaintiff. The amount
+in dispute was set by the German Federal Administrative
+Court at a mid-range, four-digit euro amount. To date, the
+plaintiff had not asserted any claims for a refund of postal
+charges for the period from 2016 to 2018.
+A number of risks arise primarily from the fact that the
+Group provides some of its services in regulated markets.
+Many of the postal services rendered by Deutsche Post AG
+and its subsidiaries (particularly the Post & Parcel Germany
+division) are subject to sector-specific regulation by the
+German federal network agency (Bundesnetzagentur).
+The German federal network agency approves or reviews
+prices, formulates the terms of downstream access, has
+special supervisory powers to combat market abuse and
+guarantees the provision of universal postal services. This
+general regulatory risk could lead to a decline in revenue
+and earnings in the event of negative decisions.
+Declaration of Conformity with the German Corporate
+Governance Code
+GOVERNANCE
+74
+☑
+Deutsche Post DHL Group - 2021 Annual Report
+Є COMBINED MANAGEMENT REPORT GOVERNANCE
+The current business planning has not identified any
+significant changes in the Group's overall opportunity and
+risk situation compared with last year's risk report. No new
+risks with a potentially critical impact upon the Group's
+result have been identified according to current assess-
+ments. Based upon the Group's early warning system and
+in the estimation of its Board of Management, there were
+no identifiable risks for the Group in the current forecast
+period which, individually or collectively, cast doubt upon
+the Group's ability to continue as a going concern. Nor
+are any such risks apparent in the foreseeable future. The
+stable to positive outlook projected for the Group is more-
+over reflected in our Credit rating.
+In the 2022 financial year, we anticipate consolidated EBIT
+of around €8.0 billion (+/− max. 5%). The DHL divisions
+are expected to generate a total of around €7.0 billion
+(+/- max. 4%). In the Post & Parcel Germany division, EBIT
+is projected to amount to around €1.5 billion (+/− max. 10%).
+The earnings contributed by Group Functions are expected
+to amount to around €-0.45 billion. In view of the expected
+EBIT development in combination with a predicted increase
+in the asset charge, we expect the EAC to be slightly down
+year-on-year. Free cash flow (excluding the purchase price
+payment for Hillebrand) is expected to come in at around
+€3.6 billion (+/- max. 5%).
+Overall assessment
+We have not identified any significant opportunities or
+risks in this area other than the effects of the pandemic.
+The year 2021 was again crucially shaped by the
+COVID-19 pandemic, which presented us with challenges
+posing both opportunities and risks. Our focus at all times
+was, and continues to be, on safeguarding the health of our
+employees. At the same time, we succeeded in significantly
+increasing our revenues due to volume increases in both
+the German parcel business and in express deliveries. At
+the same time, measures aimed at containing the pandemic
+led to economic restrictions and uncertainty about how
+the global economy as a whole and our business will fare
+going forward. We are making a collective effort to contain
+the virus and adapt our business to the current situation
+by taking suitable measures such as improving hygiene
+protocols, requiring masks to be worn, enabling remote
+working where possible and holding virtual meetings. The
+further course of the virus cannot be predicted at present.
+We are therefore examining the impact of the pandemic on
+our operations in the individual regions at regular intervals.
+We believe that the overall effect of the risks described will
+be of medium relevance for the Group in the coming years.
+We deal with additional potential effects of the pandemic
+in the report on expected developments.
+Our business operations can be both positively and
+negatively impacted by natural disasters, epidemics and
+ecological factors, also including physical risks arising from
+climate change such as floods and storms.
+Opportunities and risks arising from the environment,
+catastrophes and epidemics
+We have not identified any other significant opportu-
+nities or risks associated with the political, regulatory or
+statutory environment.
+The fight against climate change could result in in-
+creased regulatory and legal changes in the coming years.
+An increase in, or stepped up introduction of, carbon taxes
+represents a risk of medium importance for us, similar to
+increased restrictions on GHG emissions.
+We describe other significant legal proceedings in
+> note 45 to the consolidated financial statements. However, we
+do not see any of these other proceedings as posing a risk
+of significant deviations from the projections for the 2022
+forecast period.
+The Supervisory Board meets at least twice each half-
+year, at least once without the Board of Management pre-
+sent. Extraordinary Supervisory Board meetings are held
+whenever decisions need to be made at short notice or
+particular issues require discussion. In the 2021 financial
+year, Supervisory Board members held five plenary meet-
+ings, 21 committee meetings and one closed meeting, as
+described in the > Report of the Supervisory Board. Some of
+those meetings were held as conference calls due to pan-
+demic-related restrictions. The members of the Super-
+visory Board without exception attended all meetings of the
+plenary and the committees where they held seats this year.
+The attendance rate of 100% is broken down by member in
+the Report of the Supervisory Board.
+The German federal government agreed in the coalition
+agreement that the Postal Act would again be amended. The
+aim is to further enhance social and environmental stan-
+dards and strengthen fair competition. Depending upon the
+structure of the new regulatory framework, opportunities
+and risks may arise for the company's regulated areas.
+It cannot currently be ruled out that the effects on ex-
+isting pricing approvals, or on future price cap procedures,
+of the court's decisions, the change in the regulatory frame-
+work or the actions currently pending could be negative
+for Deutsche Post. According to current assessments, this
+represents a medium risk.
+a result, previous regulatory practice can continue by and
+large.
+73
+Deutsche Post DHL Group - 2021 Annual Report
+COMBINED MANAGEMENT REPORT EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
+In the grounds for its decision, the court stated that
+the pricing approval in question was unlawful because
+the method used to calculate the allowable profit margin
+under the amended provisions of the 2015 Post-Entgelt-
+regulierungsverordnung (PEntgV - Postal Rate Regula-
+tion Act) was not in compliance with the provisions of the
+Postgesetz (PostG - German Postal Act) regarding the au-
+thority to issue statutory instruments. The German gov-
+ernment eliminated this formal deficiency disputed by the
+German Federal Administrative Court by way of an amend-
+ment to the Postgesetz (German Postal Act) entering into
+force in March 2021 in addition to other amendments. As
+that the CEP association's action suspends the effect of the
+German federal network agency's decision to raise prices for
+standard, compact, large format (Großbrief) and extra-large
+format (Maxibrief) letters within Germany. The ruling only
+applies to the CEP association. The proceedings in the main
+action are still pending.
+In its capacity as a consumer of postal services, a Ger-
+man courier, express and parcel (CEP) association together
+with other customers and providers of postal services filed
+an action with the Cologne Administrative Court against
+the old pricing approval granted on 12 December 2019. On
+4 January 2021, the Cologne Administrative Court ruled
+Revenue and earnings risk can arise in particular from
+the price cap procedure used to determine the rates for
+individual pieces of letter mail. Provisional approval of
+the rates for the period from 1 January 2022 to 31 De-
+cember 2024 was issued by the German federal network
+agency on 10 December 2021.
+required review of shipments for the purpose of enforcing
+applicable export restrictions as well as country sanctions
+and embargos. Deutsche Post DHL Group also co-operates
+with the responsible authorities, both in working to pre-
+vent violations as well as in assisting in the investigation
+of any infringements in order to avoid or limit potential
+sanctions.
+Deutsche Post AG once again complied with the sugges-
+tions and recommendations of the German Corporate
+Governance Code in the year under review. The Board of
+Management and Supervisory Board will continue to do
+so in the future - with the exception that, on a case-by-
+case basis, a Board of Management member may assume
+a chairmanship appointment to the supervisory board of
+another company in the final months of their term. In De-
+cember 2021, the Board of Management and Supervisory
+Board of Deutsche Post AG issued the following declaration
+of conformity:
+The Board of Management and the Supervisory Board
+regularly discuss the Group's strategy, the divisions' objec-
+tives and strategies, the financial position and performance
+of the company and the Group, key business transactions,
+the progress of acquisitions and investments, compliance
+and compliance management, risk exposure and risk man-
+Particularly when a Board of Management member
+steps down after a long term of service, the transition of
+CFO. Additionally, quarterly review meetings are held for
+the cross-divisional functions with the CEO and CFO as well
+as representatives of management.
+The review meetings involve discussions of strategic
+initiatives, operational matters and the budgetary situation
+in the divisions. In addition, all of the Board of Management
+departments have Board committees where decisions
+are made on the fundamental strategic orientation of the
+respective department and prominent topics. Finally, the
+responsible Board departments resolve on investment, real
+estate and M&A plans within certain threshold limits using
+defined decision-making and approval processes.
+The members of the Supervisory Board's committees
+prepare the resolutions to be taken in the plenary meetings
+and fulfil the duties assigned to them by the law, the com-
+pany's Articles of Association and the rules of procedure for
+the Supervisory Board.
+The Executive Committee prepares the resolutions to
+be taken in the plenary meetings regarding the appoint-
+ment of members to the Board of Management, prepara-
+tion of their service agreements (including remuneration),
+the system for remunerating Board of Management mem-
+bers, the establishment of variable remuneration targets,
+the establishment of variable remuneration according to
+degrees of target achievement and the review of the appro-
+priateness of Board of Management remuneration. In addi-
+tion, it regularly focuses on long-term succession planning
+for the Board of Management.
+The Finance and Audit Committee reviews the com-
+pany's accounts and oversees its accounting process and
+the effectiveness of the internal control system, the risk
+management system and the internal audit system, as well
+as the audit of the annual financial statements, in particu-
+lar with respect to audit quality and the independence of
+the auditors. It prepares the proposals of the Supervisory
+Є COMBINED MANAGEMENT REPORT GOVERNANCE
+Deutsche Post DHL Group - 2021 Annual Report
+78
+Board to be made to the Annual General Meeting concern-
+ing the appointment of the audit firm and is responsible
+for carrying out the selection process. The Finance and
+Audit Committee, moreover, deals with the audit of the
+non-financial statement. If the auditor is to be engaged to
+perform non-audit services, the committee must also ap-
+prove any such engagement. It examines corporate com-
+pliance and discusses the half-yearly financial reports and
+the quarterly statements with the Board of Management
+prior to their publication. Based upon its own assessment,
+the committee submits proposals for the approval of the
+annual and consolidated financial statements to the Super-
+visory Board. As required, the Finance and Audit Commit-
+tee is also responsible for issuing findings on the required
+Supervisory Board approvals of significant transactions
+between the company and related parties.
+As previously described, the Chair of the Finance and
+Audit Committee, Dr Stefan Schulte, is independent and
+an expert both in the accounting area as well as in the
+auditing of financial statements as defined in Sections
+100(5) and 107(4) AktG and in D.4 of the German Corpo-
+rate Governance Code. Besides Dr Stefan Schulte, Simone
+Menne also a member of the Finance and Audit Com-
+mittee - and Lawrence Rosen are also independent and
+possess expertise in the areas of accounting and auditing
+of financial statements.
+-
+An agreement has been reached with the auditor that
+the Chair of the Supervisory Board and the Chair of the
+Finance and Audit Committee will be informed without
+delay of any potential grounds for exclusion or for impair-
+ment of the auditors' independence that arise during the
+audit, to the extent that any such grounds for exclusion
+or impairment are not immediately remedied. In addition,
+it has been agreed that the auditor will inform the Super-
+visory Board without delay of all material findings and in-
+Committees of the Supervisory Board
+Executive Committee
+Business review meetings are held on a quarterly basis for
+each division, attended by representatives of management
+from the respective division, once with the entire Board of
+Management and the other three times with the CEO and
+Dr Nikolaus von Bomhard (Chair)
+Andrea Kocsis (Deputy Chair)
+Ingrid Deltenre
+Thomas Held
+Thorsten Kühn
+Personnel Committee
+Andrea Kocsis (Chair)
+Dr Nikolaus von Bomhard (Deputy Chair)
+Ingrid Deltenre
+Mario Jacubasch (since 15 September 2021)
+Thomas Koczelnik (until 31 August 2021)
+Finance and Audit Committee
+Dr Stefan Schulte (Chair, independent and expert in the areas of
+accounting and auditing of financial statements as defined in
+Sections 100(5) and 107(4) AktG and D.4 German Corporate
+Governance Code)
+Stephan Teuscher (Deputy Chair)
+Thomas Koczelnik (until 31 August 2021)
+Dr Jörg Kukies
+Simone Menne (independent and expert in the areas of
+accounting and auditing of financial statements as defined in
+Sections 100(5) and 107(4) AktG and D.4 of the German
+Corporate Governance Code)
+Yusuf Özdemir (since 15 September 2021)
+Stefanie Weckesser
+cidents occurring in the course of the audit. Furthermore,
+the auditor must inform the Supervisory Board if, whilst
+conducting the financial statement audit, any facts are
+found leading to the Declaration of Conformity issued by
+Strategy and Sustainability Committee
+Dr Nikolaus von Bomhard (Chair)
+Andrea Kocsis (Deputy Chair)
+Dr Jörg Kukies
+Board of Management and Supervisory Board
+committees
+The current Supervisory Board meets these targets and
+fulfils this skills profile. The Supervisory Board took such
+targets and the skills profile into account in the election
+proposals it made to the 2021 Annual General Meeting. It
+will do the same with respect to the election proposal to be
+made to this year's Annual General Meeting.
+Conflicts of interest affecting Supervisory Board mem-
+bers are an obstacle to providing independent advice
+to, and supervision of, the Board of Management. The
+Supervisory Board will decide how to deal with poten-
+tial or actual conflicts of interest on a case-by-case
+basis, in accordance with the law and giving due con-
+sideration to the German Corporate Governance Code.
+In accordance with the age limit adopted by the Super-
+visory Board and laid down in the rules of procedure
+for the Supervisory Board, proposals for the election
+of Supervisory Board members must ensure that their
+term of office ends no later than the close of the next
+Annual General Meeting to be held after the Super-
+visory Board member reaches the age of 72. As a
+general rule, Supervisory Board members should not
+serve more than three full terms of office.
+Є COMBINED MANAGEMENT REPORT GOVERNANCE
+Deutsche Post DHL Group - 2021 Annual Report
+76
+agement, and all material business planning and related
+implementation issues.
+The Board of Management informs the Supervisory
+Board promptly and in full about all issues of significance.
+The Chair of the Supervisory Board and the CEO maintain
+close contact about current issues; the Chair of the Finance
+and Audit Committee regularly discusses important mat-
+ters with the Board member responsible for Finance, even
+outside of meetings.
+Supervisory Board decisions are prepared in advance
+in separate meetings of the shareholder representatives
+and the employee representatives, and by the relevant
+committees. Each plenary Supervisory Board meeting in-
+cludes a detailed report regarding the committees' work
+and the decisions made. Supervisory Board members are
+personally responsible for ensuring they receive the train-
+ing and professional development measures they need to
+perform their tasks. They receive appropriate support
+from the company in the process. Directors' Day is the core
+element of this support. In June, Directors' Day covered the
+topics of the tax situation and internal and external com-
+munications of the Deutsche Post DHL Group; in Septem-
+ber, it covered the Lieferkettengesetz (Supply Chain Act),
+Finanzmarktintegritätsstärkungsgesetz (Financial Market
+Integrity Strengthening Act) and other current develop-
+ments in the field of corporate governance.
+Succession planning for the Board of Management
+Planning for the appointments of the members of the
+Board of Management is an ongoing process mainly in the
+remit of the Executive Committee. In the event of an up-
+coming vacancy, the Executive Committee selects suitable
+candidates for personal interviews, taking into account
+specific requirements for experience and qualifications to
+be met by the members of the Board of Management and,
+after discussing this list of candidates, submits it to the
+Supervisory Board.
+Possible successors from within the Group are gener-
+ally given the opportunity to give a presentation on topics
+from their own areas of responsibility before the Super-
+visory Board. This provides the Supervisory Board with
+a good overview of the capabilities and talents available
+within the Group. When appointing new members to the
+Board of Management, the Supervisory Board ensures that
+the different personalities and skills of the members supple-
+ments the Board of Management and that its membership is
+as diverse as possible. In addition to industry experience and
+international diversity, gender diversity is also one of the key
+selection criteria. The initial term of service for members of
+the Board of Management generally runs for three years.
+Independence of shareholder representatives on the
+Supervisory Board
+All Supervisory Board members are independent within the
+meaning of the German Corporate Governance Code. This
+exceeds the target of filling the shareholder side with at
+least 60% independent members.
+The largest shareholder in the company, KfW Ban-
+kengruppe, currently holds 20.49% of the shares in
+Deutsche Post AG and therefore does not exercise control.
+Accordingly, Dr Jörg Kukies and Dr Günther Bräunig are
+also independent. The same applies for the successor of
+Dr Günther Bräunig proposed for election to the Super-
+visory Board, Stefan B. Wintels.
+The term of Dr Stefan Schulte, who has been a mem-
+ber of the board for over twelve years, does not affect his
+independence; it also falls within the framework of the
+aforementioned maximum of three terms. When deter-
+mining independence, the assessment must also include
+consideration of the term length, along with an overall view
+of the personality and the duties of the Supervisory Board
+member, and the conclusion may be reached that other as-
+pects balance out a comparatively longer term of office. A
+determining factor for the Supervisory Board in consider-
+ing this overall view is how Dr Schulte confidently asserts
+his expertise as a financial expert and, particularly as the
+Chairman of the Financial and Audit Committee, engages
+the Board of Management in open discussions and critically
+examines their presentations.
+Lawrence Rosen's duties as a member of the company's
+Board of Management ended on 30 September 2016 and
+thus do not affect his independence. Rather, it is his knowl-
+edge of the company and business operations that make it
+possible for him to support the Board of Management as a
+critical advisor and to fully perform the monitoring duties
+of the Supervisory Board.
+No Supervisory Board member exceeds the max-
+imum age limit of 72, holds seats on governing bodies of
+the Group's main competitors or provides consultancy
+services to, or maintains personal relationships with, such
+competitors.
+Effectiveness of the Supervisory Board's advisory and
+monitoring duties
+statement audits. This includes knowledge of inter-
+national developments in the field of accounting. Ad-
+ditionally, the Supervisory Board believes that the
+independence of its members helps guarantee the
+integrity of the accounting process and ensure the
+independence of the auditors.
+6
+4 The Supervisory Board should collectively have suffi-
+cient expertise in the areas of accounting and financial
+The Supervisory Board should collectively serve as a
+competent advisor to the Board of Management on
+future issues, in particular digital transformation and
+sustainability issues.
+The Supervisory Board's future proposals to the An-
+nual General Meeting will continue to consider can-
+didates whose origins, education or professional ex-
+perience equip them with international knowledge and
+experience.
+When proposing candidates to the Annual General Meet-
+ing for election as Supervisory Board members, the
+Supervisory Board is guided purely by the best interests
+of the company. Subject to this requirement, the Super-
+visory Board aims to ensure that the independent group
+of shareholder representatives as defined in C.6 of the
+German Corporate Governance Code accounts for at
+least 60% of the Supervisory Board, and that at least
+30% of Supervisory Board members are women.
+Dr Günther Bräunig
+3
+Targets for the composition of the Supervisory Board
+(skills profile)
+the Supervisory Board and with Board of Management
+members in an atmosphere of trust enables duties to be
+performed in a proper and professional manner.
+77
+Deutsche Post DHL Group - 2021 Annual Report
+Є COMBINED MANAGEMENT REPORT GOVERNANCE
+The Supervisory Board carries out an annual review to de-
+termine how effectively it discharges its duties. This review
+is carried out in a Supervisory Board meeting, without the
+Board of Management, and is based upon a questionnaire
+at least once every three years. Suggestions made by indi-
+vidual members of the Supervisory Board are also taken
+up and implemented during the year. In the year under re-
+view, the Supervisory Board reviewed the efficiency of its
+activities in its September meeting. The board concluded
+that it had performed its monitoring and advisory duties
+effectively and efficiently. Constructive collaboration within
+"The Board of Management and the Supervisory Board
+of Deutsche Post AG hereby declare that, since the issuance
+of the Declaration of Conformity in December 2020, all rec-
+ommendations of the Government Commission German
+Corporate Governance Code (DCGK) as amended on
+16 December 2019 and published in the Federal Gazette
+on 20 March 2020 have been complied with and that all
+recommendations of the code shall be complied with in the
+future. With a view to recommendation C.5, this does not
+apply to a Board member who assumes a chairmanship role
+in the supervisory board of a listed company during the
+final 12 to 15 months of his or her term."
+Thomas Held (since 15 September 2021)
+In addition to legal requirements (notably Sections 100
+and 107 AktG), the composition of the Supervisory Board
+is guided by recommendation C.6 of the German Corpo-
+rate Governance Code (DCGK). The Supervisory Board last
+updated the targets for its composition in December 2021,
+when it added competent advising on the topic of sustain-
+ability issues. Overall, the Supervisory Board set the follow-
+ing targets for its composition which also reflect the skills
+profile it aspires to have:
+Thomas Koczelnik (until 31 August 2021)
+Shareholdings exceeding 10% of voting rights
+KfW Bankengruppe (KfW), Frankfurt am Main, is our largest
+shareholder, holding 20.49% of the share capital. The
+Federal Republic of Germany holds an indirect stake in
+Deutsche Post AG via KfW.
+Appointment and replacement of members of the
+Board of Management
+The members of the Board of Management are appointed
+and replaced in accordance with the relevant statutory
+provisions (cf. Sections 84 and 85 AktG and Section 31
+Mitbestimmungsgesetz (MitbestG German Co-Deter-
+mination Act)). Article 6 of the Articles of Association stipu-
+lates that the Board of Management must have at least two
+members. Beyond that, the number of Board members is
+determined by the Supervisory Board.
+Amendments to the Articles of Association
+In accordance with Section 119 (1), Number 6, and Sec-
+tion 179 (1), Sentence 1 AktG, amendments to the Articles
+of Association are adopted by resolution of the AGM. In
+accordance with Article 21 (2) of the Articles of Associa-
+tion in conjunction with Sections 179 (2) and 133 (1) AktG,
+such amendments generally require a simple majority of
+the votes cast and a simple majority of the share capital
+represented on the date of the resolution. In such instances
+where the law requires a greater majority for amendments
+to the Articles of Association, that majority is decisive.
+Board of Management authorisation, particularly
+regarding the issue and buy-back of shares
+The Board of Management is authorised, subject to the con-
+sent of the Supervisory Board, to issue up to 130,000,000
+new no-par-value registered shares (2021 Authorised Cap-
+ital). Details may be found in Article 5(2) of the Articles of
+Association. The Articles of Association are available on the
+@company's website and in the electronic company register.
+They may also be viewed in the commercial register of the
+Bonn Local Court.
+The Board of Management has furthermore been au-
+thorised by resolution of the AGMs of 28 April 2017 (agenda
+The principles governing the Supervisory Board's
+internal organisation, a catalogue of Board of Manage-
+ment transactions requiring approval and the work of
+the Supervisory Board committees are governed by the
+rules of procedure. The Chair elected by the members of
+the Supervisory Board from their ranks co-ordinates the
+work of the Supervisory Board and represents the Super-
+visory Board publicly. The Supervisory Board represents
+the company in respect of the Board of Management mem-
+bers. Members of the Supervisory Board receive a fixed
+annual remuneration of €70,000 from the Annual General
+Meeting, an amount which was last increased in 2014. At
+this year's Annual General Meeting, we will recommend
+The company's D&O insurance for the members of the
+Board of Management provides for a deductible as set out
+in the AktG.
+The retirement age for Board of Management members
+defined by the Supervisory Board is generally the year in
+which the Board of Management member reaches the age
+of 65. The Supervisory Board defined the retirement age for
+members of the Supervisory Board in such a way that, for
+nominations for the election of members of the Supervisory
+Board, attention shall be paid to the fact that the term of
+office shall end no later than the close of the Annual General
+Meeting after the Supervisory Board member reaches the
+age of 72. As a general rule, Supervisory Board members
+should not serve more than three terms of office.
+No member of the Board of Management is a member
+of a supervisory board of a non-Group listed company or
+exercises a comparable function. The CEO, Dr Frank Appel,
+is a member of the supervisory board of Fresenius Manage-
+ment SE. Additionally, he is to be nominated to the annual
+general meeting of Deutsche Telekom AG for election to its
+supervisory board; the intention is for him to assume the
+chairmanship of that body.
+The current remuneration system for the company's
+Board of Management was adapted prior to the Annual
+General Meeting in May 2021 on the basis of new provi-
+sions under stock corporation law, new regulations of the
+German Corporate Governance Code and deliberations with
+investors, and was approved by the Annual General Meet-
+ing with a majority of 93.39% of votes cast.
+The Supervisory Board appoints, advises and oversees
+the Board of Management. It proposes the remuneration
+system for Board of Management members to the Annual
+General Meeting, and - together with the Board of Manage-
+ment - is jointly responsible for the long-term succession
+planning for the Board of Management.
+The exercise of voting rights and the transfer of shares
+are based upon statutory provisions and the company's
+Articles of Association, which place no restrictions on
+the exercise of voting rights or transfer of shares. Under
+the Employee Share Plan share-based remuneration
+programme, stocks are subject to time-related trading
+restrictions during the two-year holding period. As at
+31 December 2021, Deutsche Post AG held a total of
+15,247,431 treasury shares, which are excluded from rights
+for the company in accordance with Section 71b of AktG.
+The CEO conducts Board of Management business,
+aligns board department activities with the company's
+overall goals and plans, and ensures that corporate pol-
+icy is implemented. When making decisions, members of
+the Board of Management may not act in their own per-
+sonal interest or exploit corporate business opportunities
+for their own benefit. Any conflicts of interest must be
+disclosed to the chairs of the Supervisory Board and the
+Board of Management without delay; the other Board of
+Management members must also be informed.
+75
+Deutsche Post DHL Group - 2021 Annual Report
+Members of the Board of Management are respon-
+sible for the management of the company. The Board of
+Management's rules of procedure set out the principles
+Co-operation between the Board of Management and
+the Supervisory Board, remuneration, retirement ages
+Deutsche Post AG is subject to German stock corporation
+law and has a two-tier board structure comprising the
+Board of Management and the Supervisory Board.
+Governance.
+Ensuring that our interactions with business partners,
+shareholders and the public are conducted with integrity
+and within the bounds of the law is vital to maintaining our
+reputation. This is also the foundation of Deutsche Post DHL
+Group's lasting business success. Our compliance manage-
+ment system (CMS) focuses on preventing corruption and
+anti-competitive conduct. Insights gained from compli-
+ance audits and reported violations are also used to con-
+tinually improve and upgrade the CMS system, > Corporate
+Doing business includes using our expertise as a ser-
+vice provider in the mail and logistics sector for the benefit
+of society and the environment, and we motivate our em-
+ployees to engage personally.
+The Code of Conduct also defines what is meant by
+diversity. Diversity and mutual respect are some of the
+core values that contribute to good co-operation within
+the Group and thus to economic success. The key criteria
+for the recruitment and professional development of our
+employees are their skills and qualifications. The members
+of the Board of Management and the Supervisory Board
+support the Group's diversity strategy, with a particular
+focus on the goal of increasing the number of women in
+management.
+partner of the United Nations, we also support the UN's
+Sustainable Development Goals (SDGs).
+As a Group-wide framework of policies and regula-
+tions, the Code of Conduct is firmly established within the
+company and is applicable across all divisions and regions.
+It takes into account the principles set out in the United
+Nations (UN) Global Compact and is based upon the Uni-
+versal Declaration of Human Rights. It is consistent with
+recognised legal standards, including the applicable anti-
+corruption legislation and agreements. We adhere to the
+International Labour Organization (ILO) Declaration on
+Fundamental Principles and Rights at Work and the OECD
+Guidelines for Multinational Enterprises. As a long-standing
+Corporate governance principles and shared values
+Our business relationships and activities are based upon
+responsible business practices that comply with applicable
+laws, ethical standards and international guidelines, and
+this also forms part of the Group's strategy. Equally, we
+require our suppliers to act in this way. We encourage re-
+lationships with our shareholders, our employees and other
+stakeholders, whose decisions to select Deutsche Post DHL
+Group as a supplier, employer or investment are increas-
+ingly also based upon the requirement that we apply good
+corporate governance criteria.
+The current Declaration of Conformity and the Annual
+Corporate Governance Statement along with the Declara-
+tions of Conformity for the past five years are available on
+the company's website.
+that seat is generally known well before the member de-
+parts. In some situations, chairmanships of the supervisory
+boards of other companies are planned before completion
+of the Board of Management member's regular term. The
+Supervisory Board considers it proper for an experienced
+Board member to assume a supervisory board chairman-
+ship appointment during the final months of his or her term
+and would like to allow this on a case-by-case basis.
+Dr Heinrich Hiesinger
+governing its internal organisation, management and rep-
+resentation, as well as co-operation between its individ-
+ual members. The members of the Board of Management
+manage their board departments independently, except
+where decisions of particular significance and conse-
+quence for the company or the Group must be made by
+the members of the Board of Management as a whole.
+They are required to subordinate the interests of their
+individual board departments to the collective interests
+of the company and to inform the full Board of Manage-
+ment about significant developments in their spheres of
+responsibility.
+As at 31 December 2021, the company's share capital
+totalled €1,239,059,409 and was composed of the same
+number of no-par-value registered shares. Each share
+carries the same rights and obligations stipulated by law
+and/or in the company's Articles of Association and entitles
+the holder to one vote at the Annual General Meeting
+(AGM). There are no shares with special rights conveying
+powers of control.
+Є COMBINED MANAGEMENT REPORT GOVERNANCE
+Disclosures required under Sections 289a and 315a HGB
+and explanatory report.
+Stephan Teuscher
+Composition of issued capital, voting rights and
+transfer of shares
+Nomination Committee
+Dr Nikolaus von Bomhard (Chair)
+Ingrid Deltenre
+Dr Jörg Kukies
+Mediation Committee (pursuant to Section 27(3)
+German Co-determination Act)
+Dr Nikolaus von Bomhard (Chair)
+Andrea Kocsis (Deputy Chair)
+the Board of Management and Supervisory Board being
+incorrect. The Chair of the Finance and Audit Commit-
+tee and the auditor regularly exchange information both
+at meetings and at other times. The Finance and Audit
+Є COMBINED MANAGEMENT REPORT GOVERNANCE
+Deutsche Post DHL Group - 2021 Annual Report
+79
+Committee regularly reviews the quality of the finan-
+cial statement audit. Both in the meeting of the Finance
+and Audit Committee held in preparation for the finan-
+cial statements meeting as well as in the meeting of the
+plenary where the company and consolidated financial
+statements are approved, the members of the Supervisory
+Board closely examine the contents and the processes of
+the financial statement audit.
+The duties of the Strategy Committee were expanded
+by resolution of the Supervisory Board in December 2021
+to include regularly addressing sustainability-related topics
+(environment, social, governance - ESG). The committee
+was renamed the Strategy and Sustainability Committee. In
+addition to dealing with ESG topics, the Strategy and Sus-
+tainability Committee prepares the Supervisory Board's
+strategy discussions and regularly discusses implemen-
+tation of the strategy and the competitive position of the
+enterprise as a whole and of the divisions. In addition, it
+does preparatory work on corporate acquisitions and di-
+vestitures that require the Supervisory Board's approval.
+In the year under review, this was the acquisition of the
+J.F. Hillebrand Group stock corporation.
+The Nomination Committee presents the shareholder
+representatives of the Supervisory Board with recommen-
+dations for shareholder candidates for election to the Super-
+visory Board at the Annual General Meeting.
+Dr Heinrich Hiesinger
+Thorsten Kühn
+The Mediation Committee carries out the duties as-
+signed to it pursuant to the MitbestG: it makes proposals
+to the Supervisory Board on the appointment of members
+of the Board of Management in those cases in which the
+required majority of two-thirds of the votes of the Super-
+visory Board members is not reached. The committee did
+not meet in the past financial year.
+The remuneration system applied to Board of Man-
+agement members must be presented to the Annual Gen-
+eral Meeting for approval whenever there are significant
+changes, or at least every four years; the four-year inter-
+val also applies to the remuneration of the Supervisory
+Board members. The 2021 Annual General Meeting ap-
+proved the Board of Management remuneration system
+with 93.39% and the Supervisory Board remuneration with
+99.46% of the votes cast in favour. The Board of Manage-
+ment remuneration system and the resolution of the An-
+nual General Meeting on the remuneration of Supervisory
+Board members can also be accessed on the company's
+website. Information regarding the remuneration of the
+individual members of the Board of Management and the
+Supervisory Board can be found in the remuneration re-
+port, which is a part of the convocation to the 2022 Annual
+General Meeting. In accordance with Section 162 AktG, the
+remuneration report and the auditor report will also be
+available on our website.
+The Personnel Committee discusses human resources
+principles for the Group.
+when the Annual General Meeting is convened. A detailed
+CV is published for each Supervisory Board candidate put
+forth for election. We assist our shareholders in exercising
+their voting rights not only by making it possible to submit
+postal votes but also by appointing company proxies, who
+cast their votes solely as instructed by the shareholders.
+Additionally, shareholders can authorise company proxies
+and submit postal votes via the online service offered by the
+company. Due to the pandemic, the 2021 Annual General
+Meeting was also held online in line with the applicable
+statutory provisions. Shareholders were able to submit their
+questions online up to one day prior to the AGM. They were
+able to vote either by absentee ballot or by authorising a
+company proxy to vote in their place. In light of the steadily
+high numbers of infections, the plan is for the 2022 Annual
+General Meeting to once again be held as a virtual event.
+80
+Deutsche Post DHL Group - 2021 Annual Report
+increasing this base remuneration to €100,000 annually.
+The increase is intended to account for greater demands
+placed on the Supervisory Board in terms of time and
+workload and remuneration trends at comparable com-
+panies. As previously, the remuneration for the Chair of
+the Supervisory Board increases by 100%, for the Deputy
+Chair by 50%, for the Chair of a committee by 100% and for
+committee members by 50%. The contents of the report
+on remuneration of Board of Management and Supervi-
+sory Board members have been audited, and the report
+can be accessed at the company's website. There are no
+contracts between the company and Supervisory Board
+members apart from those governing their Supervisory
+Board activities and the employment contracts with the
+employee representatives.
+Disclosures required by takeover law
+Shareholders and Annual General Meeting
+Shareholders exercise their rights, and in particular their
+right to receive information and to vote, at the Annual Gen-
+eral Meeting. Each share in the company entitles the holder
+to one vote. The agenda with the proposed resolutions for
+the Annual General Meeting and additional information will
+be made available on the company website at the latest
+Є COMBINED MANAGEMENT REPORT GOVERNANCE
+The diversity criteria important to the Supervisory
+Board when considering its own composition are outlined
+in the list of its goals. With a proportion of women of 35%,
+the Supervisory Board has exceeded its own target of 30%,
+which also reflects the minimum statutory requirement.
+For the target period beginning 1 January 2020, the
+Board of Management set a target of 30% for the percent-
+age of women at Deutsche Post AG at both executive tiers
+below the Board of Management. We aim to meet these
+targets by 31 December 2024. The two executive tiers are
+defined on the basis of their reporting lines: tier 1 comprises
+executives assigned to the N-1 reporting line; the share of
+women here was 27.5% as at 31 December 2021. Tier 2 con-
+sists of executives from the N-2 reporting line; the share of
+women here was 28% as at 31 December 2021. The com-
+pany intends to increase the share of women in management
+globally and has therefore set itself the goal of increasing
+the percentage of women in middle and upper management
+to 30% by 2025. This figure has risen continually in recent
+years and stood at 25.1% as at 31 December 2021.
+target-initially not yet met - and approved a percentage
+of women on the Board of Management of 25%, exceeding
+the statutory participation requirement, to be reached by
+the end of 2024. With the appointment of Nikola Hagleitner
+as the Board member for the Post & Parcel Germany divi-
+sion, a second woman will be on the Board of Management
+beginning in July 2022 along with Melanie Kreis.
+During succession planning and the selection of members
+for the Board of Management, the Supervisory Board pays
+close attention to ensuring that they contribute to the pro-
+file of the Board of Management as a whole in terms of
+their qualifications, abilities and experience. Long-term
+succession planning in all divisions guarantees that there
+will be sufficient qualified internal candidates to fill Board
+of Management positions in future. The early promo-
+tion of women in the company also plays a key role. The
+Second Leadership Positions Act stipulates that, from
+1 August 2022, listed companies to which the German
+Co-determination Act applies and with more than three
+board of management members are subject to a par-
+ticipation requirement of at least one woman and at least
+one man. Deutsche Post AG already complies with this
+participation requirement. Additionally, the Supervisory
+Board had approved a target for the proportion of women
+on the Board of Management of 2:8 by the 2021 Annual
+General Meeting. The Supervisory Board confirmed this
+Diversity
+Further information about the work of the Supervisory
+Board and its committees in the 2021 financial year is con-
+tained in the Report of the Supervisory Board. The members
+of the Supervisory Board and all additional offices held by
+them as well as the members of the Board of Management
+and all additional offices held by them can be found in
+> Boards and Committees. Board members' curriculum vitae,
+information about their qualifications and the terms of their
+current appointments are also published on our website.
+The website also has current curriculum vitae of the share-
+holder representatives on the Supervisory Board along with
+information on their professional occupation, the length of
+their membership on the Supervisory Board and the dura-
+tion of their current term of office.
+3,176
+-6
+5,423
+5,053
+197
+370
+Share of other comprehensive income of investments
+accounted for using the equity method, net of tax
+Total, net of tax
+2,979
+20
+Total comprehensive income
+4.10
+Other comprehensive income, net of tax
+20
+2.36
+4.01
+attributable to Deutsche Post AG shareholders
+7
+attributable to non-controlling interests
+-8
+2.41
+19
+attributable to Deutsche Post AG shareholders
+-1,936
+6
+-619
+Currency translation reserve
+Profit before income taxes
+Income taxes
+Consolidated net profit for the period
+attributable to non-controlling interests
+Basic earnings per share (€)
+Diluted earnings per share (€)
+1 Prior-period amounts adjusted due to reclassifications, > note 4.
+4,171
+7,359
+Changes from unrealised gains and losses
+Changes from realised gains and losses
+-954
+925
+0
+0
+19
+-995
+Income taxes relating to components of other compre-
+hensive income
+-973
+34
+-1,985
+23
+22,007
+24,903
+EQUITY AND LIABILITIES
+Issued capital
+Capital reserves
+33
+1,239
+1,224
+3,519
+3,533
+Investment property
+24
+12
+48
+Other reserves
+-1,666
+-733
+Investments accounted for using the equity method
+-676
+Property, plant and equipment
+954
+12,076
+22
+2,896
+1,191
+8,319
+1,009
+7,915
+182
+404
+CONSOLIDATED FINANCIAL STATEMENTS BALANCE SHEET
+BALANCE SHEET
+€m
+Note
+31 Dec. 2020
+31 Dec. 2021
+Deutsche Post DHL Group - 2021 Annual Report
+Note
+31 Dec. 2020
+31 Dec. 2021
+ASSETS
+Intangible assets
+11,658
+18
+25
+-58
+2020
+66,716
+2021
+81,747
+Consolidated net profit for the period
+Note
+2020
+2021
+3,176
+5,423
+11
+Other operating income
+2,095
+2,291
+Changes in inventories and work performed and
+capitalised
+13
+Materials expense¹
+14
+292
+-33,704
+348
+12
+Revenue¹
+Note
+82
+Є COMBINED MANAGEMENT REPORT GOVERNANCE
+Deutsche Post DHL Group - 2021 Annual Report
+81
+item 7), 24 April 2018 (agenda item 6) and 27 August 2020
+(agenda items 7 and 8) to issue Performance Share Units
+(PSUs). The authorisation resolutions are included in the
+notarised minutes of the AGM, which can be viewed in
+the commercial register of the Bonn Local Court. In order
+to service both current PSUs and those yet to be issued,
+the AGM approved contingent capital increases. Details
+may be found in Article 5 of the Articles of Association. As
+at 31 December 2021, the PSUs already issued conferred
+rights to up to 28,613,021 Deutsche Post AG shares, as-
+suming the conditions are met. Under the authorisations
+granted, up to 47,575,636 additional PSUs may still be
+issued.
+The AGM of 6 May 2021 authorised the company to
+buy back shares on or before 5 May 2026 up to an amount
+not to exceed 10% of the share capital existing as at the
+date of adoption of the resolution. Further details, including
+the option of using the treasury shares acquired on that
+basis or on the basis of a preceding authorisation, may be
+found in the authorisation resolution adopted by the AGM
+of 6 May 2021 (agenda item 8). In addition, the AGM of
+6 May 2021 authorised the Board of Management to buy
+back shares within the scope specified in agenda item 8,
+including through the use of derivatives (agenda item 9).
+The company repurchased 17,694,910 shares in the fi-
+nancial year based upon that authorisation resolution and,
+together with the shares repurchased on the basis of the
+previous authorisation of 28 April 2017, repurchased a total
+of 20,314,969.
+Significant agreements that are conditional upon a
+change of control following a takeover bid and agree-
+ments with members of the Board of Management or
+employees providing for compensation in the event of
+a change of control
+Deutsche Post AG holds a syndicated credit facility with
+a volume of €2 billion under an agreement entered into
+with a consortium of banks. If a change of control within
+the meaning of the agreement occurs, each member of
+the bank consortium is entitled, under certain conditions,
+to cancel its share of the credit facility as well as its share
+of any outstanding loans and to request repayment. The
+terms and conditions of the bonds issued under the Debt
+Issuance Programme established in March 2012 and those
+of the convertible bond issued in December 2017 also con-
+tain change-of-control clauses. In the event of a change of
+control within the meaning of those terms and conditions,
+creditors are, under certain conditions, granted the right to
+demand early redemption of the respective bonds. Finally,
+Deutsche Post AG has concluded a factoring agreement pro-
+viding for a maximum volume of €70 million in connection
+with distribution partnerships. The factoring agreement can
+be terminated without notice in the event of a change of con-
+trol as defined in the agreement. The factoring agreement
+expires during the first quarter of 2022.
+In the event of a change of control, any member of the
+Board of Management is entitled to resign their office for
+good cause within a period of six months following the
+change of control after giving three months' notice to the
+end of a given month, and to terminate their Board of Man-
+agement contract (right to early termination). The former
+severance payment claim previously provided for in the
+event of the exercise of the right to early termination no
+longer applies from the 2021 financial year. With regard
+to the Annual Bonus Plan with Share Matching for execu-
+tives, the holding period for the shares will become invalid
+with immediate effect in the event of a change of control
+of the company. The participating executives will receive
+the total number of matching shares corresponding to their
+investment (or a cash equivalent) in due course. In such a
+case, the employer will be responsible for any tax disad-
+vantages resulting from a reduction of the holding period.
+Taxes normally incurred after the holding period are exempt
+from this provision. Under the Employee Share Plan, if a
+change of control occurs, any amounts that have already
+been invested and for which shares have yet to be delivered
+are reimbursed. Effective immediately, the holding period is
+waived for shares that have already been granted.
+Є CONSOLIDATED FINANCIAL STATEMENTS INCOME STATEMENT - STATEMENT OF COMPREHENSIVE INCOME
+INCOME STATEMENT
+1 January to 31 December
+€m
+Deutsche Post DHL Group - 2021 Annual Report
+STATEMENT OF
+COMPREHENSIVE INCOME
+1 January to 31 December
+€m
+62
+Staff costs
+15
+-22,234
+Depreciation, amortisation and impairment losses
+Profit from operating activities (EBIT)
+4,847
+7,978
+Items that may be subsequently reclassified to profit or
+loss
+Financial income
+220
+191
+Hedging reserves
+Changes from unrealised gains and losses
+Finance costs
+Foreign currency result
+Net finance costs
+-838
+-746
+Changes from realised gains and losses
+11
+-29
+27
+27
+2
+32
+-64
+-34
+the equity method
+16
+Other operating expenses
+17
+-3,830
+-4,454
+-43,897
+-23,879
+-3,768
+-4,896
+Items that will not be reclassified to profit or loss
+Change due to remeasurements of net pension provisions
+Reserve for equity instruments without recycling
+Income taxes relating to components of other compre-
+hensive income
+37
+-1,087
+-5
+2,005
+16
+19
+80
+-79
+Net income from investments accounted for using
+Share of other comprehensive income of investments
+accounted for using the equity method, net of tax
+Total, net of tax
+0
+0
+-1,012
+1,942
+25
+73
+14,392
+Retained earnings
+-24
+-24
+0
+-1
+1
+0
+0
+Transactions with non-controlling interests
+-1,892
+-219
+-1,673
+Dividend
+14,078
+301
+13,777
+10,685
+-1,622
+-27
+-17
+3,519
+1,239
+Balance at 1 January 2021
+14,078
+301
+13,777
+10,685
+-1,622
+-27
+-17
+Capital increase/decrease
+-15
+14
+-981
+1,224
+8,319
+404
+7,915
+38
+0
+38
+15
+23
+1,927
+-3
+1,930
+1,930
+931
+3,519
+37
+894
+5,423
+370
+5,053
+5,053
+Balance at 31 December 2021
+Total
+Change due to remeasurements of net pension provisions
+Other changes
+Currency translation differences
+Consolidated net profit for the period
+Total comprehensive income
+-982
+0
+-982
+894
+3,533
+1,239
+182
+-1,587
+-165
+-1,422
+-1,422
+36
+275
+14,117
+35
+34
+10,099
+-673
+-22
+-5
+3,482
+1,236
+34
+33
+Total equity
+Non-controlling
+interests
+to Deutsche
+Post AG
+shareholders
+Retained
+earnings
+Currency
+translation
+reserve
+instruments
+without
+recycling
+Hedging
+reserves
+Issued capital Capital reserves
+86
+Equity
+attributable
+Deutsche Post DHL Group - 2021 Annual Report
+Reserve for
+equity
+Other reserves
+Balance at 31 December 2020
+0
+0
+-3
+8
+1,009
+-17
+0
+-17
+0
+-5
+-12
+-1,007
+0
+-1,007
+-1,007
+3,176
+-961
+-15
+-946
+1,191
+-946
+2,979
+2,979
+68
+0
+68
+28
+20
+20
+0
+37
+3
+-6
+-11
+5
+197
+6
+-12
+-727
+The amendments simplify the reporting of changes to contractual cash flows and hedge accounting required as a result of IBOR reform. They relate to the actual
+change in interest rate benchmarks. The consolidated financial statements were not materially affected.
+The effective date of IFRS 17, which will replace IFRS 4, was deferred to 1 January 2023. The expiry date of the temporary exemption from IFRS 9 in IFRS 4 was
+therefore also deferred to 1 January 2023.
+Under certain conditions, the amendment permits lessees to not assess whether rent concessions granted as a direct consequence of the COVID-19 pandemic
+are lease modifications. If the conditions are met, lessees may instead account for those rent concessions as if they are not lease modifications. The amendment
+was initially applicable only for relevant lease payments before 30 June 2021. This simplification of the rule was extended for one year with a further amendment
+to IFRS 16. The application did not materially affect the consolidated financial statements.
+Subject matter and significance
+Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
+Interest Rate Benchmark Reform (IBOR Reform) -
+Amendments to IFRS 4, Insurance Contracts -
+Deferral of Effective Date of IFRS 9
+Amendments to IFRS 16: COVID-19-Related Rent Concessions and
+COVID-19-Related Rent Concessions beyond 30 June 2021
+Standard
+89
+68
+Deutsche Post DHL Group - 2021 Annual Report
+New accounting standards effective in the 2021 financial year
+The following standards, changes to standards and interpreta-
+tions must be applied from 1 January 2021:
+IFRSS
+5 New developments in international accounting under
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+Revenue
+-33,704
+90
+-33,794
+Materials expense
+amount
+66,716
+-90
+Amount Adjustment
+66,806
+Adjusted
+€m
+Income statement 2020
+The Lead Logistics Provider (LLP) business which had, to date,
+been partially reported in the Global Forwarding, Freight
+segment has been bundled in the Supply Chain division since
+January 2021. The presentation of revenue and materials ex-
+pense was standardised based on a review of certain customer
+contracts as part of this transition. The prior-period amounts
+were adjusted accordingly.
+Adjustment of prior-period amounts
+New accounting standards adopted by the EU but only
+effective in future periods
+The following standards, changes to standards and interpreta-
+tions have already been endorsed by the EU. However, they will
+only be required to be applied in future periods.
+Standard
+Amendments to IFRS 3, Reference to the Conceptual Framework
+(issued on 14 May 2020 and applicable for financial years beginning
+on or after 1 January 2022)
+Goodwill arising from business combinations after 1 Jan-
+uary 2005 is treated as an asset of the acquired company and
+therefore carried in the functional currency of the acquired
+company.
+monthly closing rates. The resulting currency translation dif-
+ferences are recognised in other comprehensive income. In the
+2021 financial year, currency translation differences amounting
+to €931 million (previous year: €-961 million) were recognised in
+other comprehensive income, > Statement of comprehensive income.
+The financial statements of consolidated companies prepared
+in foreign currencies are translated into euros (€) in accordance
+with IAS 21 using the functional currency method. The functional
+currency of foreign companies is determined by the primary eco-
+nomic environment in which they mainly generate and use cash.
+Within the Group, the functional currency is predominantly the
+local currency. In the consolidated financial statements, assets
+and liabilities are therefore translated at the closing rates, whilst
+periodic income and expenses are generally translated at the
+Currency translation
+6
+The amendment limits the exemption from the (initial) recognition of deferred tax in that it no longer applies to transactions for which entities recognise both an
+asset and a liability (e.g. leases and decommissioning obligations). In future, deferred tax assets and liabilities must be recognised for such transactions to the
+extent that equal amounts of deductible and taxable temporary differences arise. No material effects on the consolidated financial statements are expected.
+The narrow-scope amendment to IFRS 17 permits entities to apply an optional classification overlay, if certain conditions are met, with the aim of providing useful
+comparative information on financial instruments for 2022. The amendment was issued because the initial application of IFRS 9 is not required to be retroactive,
+whereas this is the case for IFRS 17. This can result in accounting mismatches for financial instruments. The impact on the consolidated financial statements is
+being reviewed.
+The amendments to IAS 1 relate solely to the presentation of debt and other liabilities in the statement of financial position. They clarify that a liability must be
+classified as non-current if the entity has a substantial right at the reporting date to defer settlement of the liability for at least 12 months after the reporting
+date. The determining factor is that such a substantial right exists; no intention to exercise that right is required. No material effects on the consolidated financial
+statements are expected. The effective date was deferred to 1 January 2023 due to the COVID-19 pandemic.
+The amendments introduced a new definition of accounting estimates and explain how entities should distinguish changes in accounting estimates from changes
+in accounting policies. The effects on the consolidated financial statements are being assessed.
+The amendments serve to assist entities with deciding which accounting policies to disclose in their financial statements. The amendment of IAS 1 explains and
+requires that a disclosure of "material" rather than “significant” accounting policies must be made. To support this approach, the amendments to IFRS Practice
+Statement 2 demonstrate the application of the concept of materiality to accounting policy disclosures. The effects on the consolidated financial statements are
+being assessed.
+Subject matter and significance
+Amendments to IAS 12, Deferred Tax related to Assets and Liabilities
+arising from a Single Transaction (issued on 7 May 2021 and applicable
+for financial years beginning on or after 1 January 2023)
+Amendment to IFRS 17, Initial Application of IFRS 17 and IFRS 9 –
+Comparative Information (issued on 9 December 2021 and applicable
+for financial years beginning on or after 1 January 2023)
+Amendments to IAS 1, Classification of Liabilities as Current
+or Non-current (issued on 23 January 2020 and applicable
+for financial years beginning on or after 1 January 2023)
+and Deferral of the Effective Date
+Amendments to IAS 8, Definition of Accounting Estimates
+(issued on 12 February 2021 and applicable for financial years
+beginning on or after 1 January 2023)
+Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of
+Accounting Policies (issued on 12 February 2021 and applicable for
+financial years beginning on or after 1 January 2023)
+4
+Standard
+New accounting standards not yet adopted by the EU
+(endorsement procedure)
+90
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+IFRS 17 will replace IFRS 4, Insurance Contracts, in future. It outlines the principles governing the recognition, measurement, presentation and disclosure of
+insurance contracts. The objective of the standard is to ensure that the reporting entity provides relevant information that faithfully represents the effect that
+insurance contracts have on an entity's net assets, financial position, results of operations and cash flows. The effects on the Group are currently being assessed.
+The amendments relate to IFRS 1, First-Time Adoption of International Financial Reporting Standards; IFRS 9, Financial Instruments; IFRS 16, Leases; and IAS 41,
+Agriculture. Application is not expected to have a material effect on the consolidated financial statements.
+The amendment defines the cost of fulfilling a contract. All costs that relate directly to the contract must be included when assessing whether a contract is onerous.
+Application is not expected to have a material effect on the consolidated financial statements.
+The amendment prohibits deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced whilst bringing that
+asset to the location and condition necessary for it to be capable of operating in the manner intended. Application is not expected to have a material effect on the
+consolidated financial statements.
+The amendments contain an update to IFRS 3 so that it refers to the 2018 revision of the Conceptual Framework. Additionally, it stipulates that, for transactions
+within the scope of IAS 37 or IFRIC 21, an acquirer applies IAS 37 or IFRIC 21 to identify liabilities assumed in a business combination instead of the Conceptual
+Framework. Contingent liabilities are excluded from this requirement. IFRS 3 continues to prohibit recognition of contingent assets. Application is not expected
+to have an effect on the consolidated financial statements.
+Subject matter and significance
+IFRS 17, Insurance Contracts (issued on 18 May 2017),
+including amendments to IFRS 17 (issued on 25 June 2020 and
+applicable for financial years beginning on or after 1 January 2023)
+Annual Improvements to IFRSS (2018-2020 Cycle)
+(issued on 14 May 2020 and applicable for financial years
+beginning on or after 1 January 2022)
+Amendments to IAS 37, Onerous Contracts - Cost of Fulfilling a Contract
+(issued on 14 May 2020 and applicable for financial years beginning on
+or after 1 January 2022)
+Amendments to IAS 16, Property, Plant and Equipment - Proceeds
+before Intended Use (issued on 14 May 2020 and applicable for
+financial years beginning on or after 1 January 2022)
+The IASB and the IFRIC issued further standards, amendments
+to standards and interpretations in the 2021 financial year and
+in previous years whose application is not yet mandatory for the
+2021 financial year. The application of these IFRSS is dependent
+on their adoption by the EU.
+warding, transport and logistics of beverages, non-hazardous
+bulk liquids and other products that require special care. This
+acquisition serves to accelerate expansion in the dynamic ocean
+freight forwarding market. A deposit of €100 million was made
+in conjunction with this transaction which will be offset against
+the purchase price upon conclusion of the transaction. The clos-
+ing is scheduled for the first half of 2022.
+In August 2021, the Board of Management signed an
+agreement to fully acquire J.F. Hillebrand Group AG (Hillebrand)
+and its subsidiaries for approximately €1.5 billion. Hillebrand is
+a global service provider specialised in the ocean freight for-
+In the fourth quarter of 2021, Deutsche Post DHL Group
+paid a special bonus of €300 per employee (FTE) to its work-
+force of approximately 550,000 as an acknowledgement of
+their achievements during the pandemic. This led to expenses
+of €165 million, > note 15.
+Consolidated group
+The number of companies consolidated with Deutsche
+Post AG is shown in the following table:
+The complete list of the Group's shareholdings in accor-
+dance with Section 313(2), Nos. 1 to 6, and (3) HGB may be
+viewed on the company's website.
+spite Deutsche Post DHL Group not having a majority of voting
+rights. Sinotrans provides domestic and international express
+delivery and transport services and has been assigned to the
+Express segment. The company is fully integrated into the global
+DHL network and operates exclusively for Deutsche Post DHL
+Group. Due to the arrangements in the Network Agreement,
+Deutsche Post DHL Group is able to prevail in decisions concern-
+ing Sinotrans' relevant activities. Sinotrans has therefore been
+consolidated although Deutsche Post DHL Group holds no more
+than 50% of the company's share capital.
+DHL Sinotrans International Air Courier Ltd. (Sinotrans),
+China, is a significant company that has been consolidated de-
+When Deutsche Post DHL Group holds less than the major-
+ity of voting rights, other contractual arrangements may result
+in the Group controlling the investee.
+The consolidated group includes all companies controlled by
+Deutsche Post AG. Control exists if Deutsche Post AG has de-
+cision-making powers, is exposed, and has rights, to variable
+returns, and is able to use its decision-making powers to affect
+the amount of the variable returns. The Group companies are
+consolidated from the date on which Deutsche Post DHL Group
+is able to exercise control.
+Consolidated group
+2
+No separate reporting is provided in cases where effects
+cannot be unequivocally attributed to the COVID-19 pandemic.
+The consolidated financial statements are prepared in
+euros (€). Unless otherwise stated, all amounts are given in mil-
+lions of euros (€ million, €m).
+These consolidated financial statements were autho-
+rised for issue by a resolution of the Board of Management of
+Deutsche Post AG dated 18 February 2022.
+The accounting policies and the explanations and disclo-
+sures in the notes to the IFRS consolidated financial statements
+for the 2021 financial year are generally based on the same
+accounting policies used in the 2020 consolidated financial
+statements. Exceptions to this are the changes in international fi-
+nancial reporting under the IFRSS described in > note 5 that have
+been required to be applied by the Group since 1 January 2021.
+The accounting policies are explained in > note 7.
+The consolidated financial statements consist of the income
+statement and the statement of comprehensive income, the bal-
+ance sheet, the cash flow statement, the statement of changes
+in equity and the notes. In order to improve the clarity of pre-
+sentation, various items in the balance sheet and in the income
+statement have been combined. These items are disclosed and
+explained separately in the notes. The income statement has been
+classified in accordance with the nature-of-expense method.
+2020
+As a listed company, Deutsche Post AG prepared its consoli-
+dated financial statements in accordance with Section 315e
+Handelsgesetzbuch (HGB - German Commercial Code) ("con-
+solidated financial statements in accordance with International
+Financial Reporting Standards") in compliance with International
+Financial Reporting Standards (IFRSS) and related Interpreta-
+tions of the International Accounting Standards Board (IASB) as
+adopted in the European Union in accordance with Regulation
+(EC) No. 1606/2002 of the European Parliament and of the
+Council on the application of international accounting standards.
+The requirements of the standards applied have been sat-
+isfied in full, and the consolidated financial statements therefore
+provide a true and fair view of the Group's net assets, financial
+position and results of operations.
+1
+Basis of preparation
+Deutsche Post DHL Group is a global mail and logistics group. The
+Deutsche Post and DHL corporate brands represent a portfolio
+of logistics (DHL) and communication (Deutsche Post) services.
+The financial year of Deutsche Post AG and its consolidated sub-
+sidiaries is the calendar year. Deutsche Post AG, whose registered
+office is in Bonn, Germany, is entered in the commercial register
+of the Bonn Local Court under HRB 6792.
+Company information
+DEUTSCHE POST AG
+STATEMENTS OF
+CONSOLIDATED
+FINANCIAL
+NOTES TO THE
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+19,499
+462
+19,037
+15,013
+Basis of accounting
+Total
+2021
+German
+In March 2021, the Board of Management of Deutsche
+Post AG resolved a share buy-back programme for up to
+30 million shares at a total purchase price of up to €1 billion.
+The repurchased shares will either be retired or used to ser-
+vice long-term executive remuneration plans. The repurchase
+via the stock exchange started on 10 May 2021 and ended in
+October 2021. With the termination of the share buy-back pro-
+gramme, 17.7 million shares were bought back for a total of
+€1 billion. The share buy-back programme is based on the au-
+thorisation resolved by the company's Annual General Meeting
+on 6 May 2021, > note 33.3.
+The following significant transactions occurred in the 2021 fi-
+nancial year:
+Significant transactions
+3
+Aerologic GmbH (Aerologic), Germany, a cargo airline
+domiciled in Leipzig, is the only joint operation in this regard.
+Aerologic has been assigned to the Express segment. It was
+jointly established by Lufthansa Cargo AG and Deutsche Post
+Beteiligungen Holding GmbH, which each hold 50% of its capital
+and voting rights. Aerologic's shareholders are simultaneously
+its customers, giving them access to its freight aircraft capacity.
+Aerologic mainly serves the DHL Express network from Monday
+to Friday, and flies for the Lufthansa Cargo network at weekends.
+In contrast to its capital and voting rights, the company's assets
+and liabilities, as well as its income and expenses, are allocated
+based on this user relationship.
+Joint operations are consolidated in accordance with IFRS 11,
+based on the interest held.
+2.1 Joint operations
+No material acquisitions or sales of companies were conducted
+in the 2021 financial year. Other changes in the consolidated
+group resulted from companies being formed or liquidated.
+888
+88
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
+87
+83
+Number of fully consolidated companies
+(subsidiaries)
+16
+1
+1
+1
+0
+0
+1
+HO
+Foreign
+Number of investments accounted for using
+the equity method
+German
+Foreign
+German
+Number of joint operations
+83
+636
+81
+633
+Foreign
+17
+Other changes
+Change due to remeasurements of net pension provisions
+Currency translation differences
+6,138
+5,135
+40
+Other current liabilities
+63,592
+55,307
+TOTAL ASSETS
+9,556
+7,309
+Trade payables
+22,734
+18,261
+Current assets
+3,283
+3,247
+39
+Current financial liabilities
+21
+16
+32
+Assets held for sale
+1,208
+1,080
+38
+Current provisions
+3,531
+4,482
+31
+Cash and cash equivalents
+Income tax liabilities
+611
+717
+Liabilities associated with assets held for sale
+Changes in working capital
+Net cash from operating activities before changes in working capital
+Income taxes paid
+Dividend received
+Change in other non-current assets and liabilities
+Change in provisions
+Non-cash income and expense
+Net cost/net income from disposal of non-current assets
+Depreciation, amortisation and impairment losses
+Profit from operating activities (EBIT)
+Net finance costs
+Income taxes
+Consolidated net profit for the period
+€m
+23,186
+1 January to 31 December
+84
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS CASH FLOW STATEMENT
+83
+83
+63,592
+55,307
+TOTAL EQUITY AND LIABILITIES
+20,907
+17,389
+Current provisions and liabilities
+5
+7
+32
+CASH FLOW STATEMENT
+23,840
+Non-current provisions and liabilities
+230
+439
+29
+40,858
+37,046
+Inventories
+Non-current assets
+19,499
+14,078
+Equity
+462
+301
+36
+19,037
+13,777
+593
+35
+587
+1,943
+2,390
+28
+Deferred tax assets
+160
+27
+Other non-current assets
+1,190
+746
+26
+Non-current financial assets
+15,013
+10,685
+34
+Equity attributable to Deutsche Post AG shareholders
+Non-controlling interests
+Inventories
+Provisions for pensions and similar obligations
+Deferred tax liabilities
+5,835
+209
+Income tax assets
+304
+328
+40
+Other non-current liabilities
+3,588
+2,815
+27
+Other current assets
+16,614
+15,851
+39
+Non-current financial liabilities
+37
+11,683
+30
+Trade receivables
+1,946
+1,790
+38
+Other non-current provisions
+3,088
+1,315
+26
+Current financial assets
+137
+36
+28
+4,185
+8,985
+111
+Receivables and other current assets
+Net cash from operating activities
+-5
+-1,422
+111
+-88
+16
+-2,903
+-2,488
+23
+2021
+131
+2020
+2,488
+Note
+Cash and cash equivalents at end of reporting period
+Cash and cash equivalents at beginning of reporting period
+Changes in cash and cash equivalents due to changes in consolidated group
+Effect of changes in exchange rates on cash and cash equivalents
+Net change in cash and cash equivalents
+Net cash used in financing activities
+Interest paid
+Purchase of treasury shares
+Dividend paid to non-controlling interest holders
+Dividend paid to Deutsche Post AG shareholders
+Proceeds from/cash paid for transactions with non-controlling interests
+Other financing activities
+Change in current financial liabilities
+Repayments of non-current financial liabilities
+Proceeds from issuance of non-current financial liabilities
+85
+Deutsche Post DHL Group - 2021 Annual Report
+CONSOLIDATED FINANCIAL STATEMENTS CASH FLOW STATEMENT
+-4,824
+-3,640
+-16
+-1,673
+-157
+-45
+-225
+Consolidated net profit for the period
+Total comprehensive income
+Capital increase/decrease
+consolidated group
+Changes in non-controlling interests due to changes in
+Transactions with non-controlling interests
+Dividend
+Balance at 1 January 2020
+Note
+€m
+1 January to 31 December
+STATEMENT OF CHANGES IN EQUITY
+CONSOLIDATED FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY
+3,531
+42
+4,482
+4,482
+2,862
+0
+3
+104
+-192
+-1,055
+1,809
+-6,224
+-2,250
+42
+-550
+-556
+-1,115
+31
+-1,508
+91
+67
+-933
+73
+22
+132
+-20
+29
+3,768
+3,830
+7,978
+4,847
+619
+676
+1,936
+995
+5,423
+31
+3,176
+2020
+Note
+Net cash used in investing activities
+Current financial assets
+Interest received
+Cash paid to acquire non-current assets
+Other non-current financial assets
+Investments accounted for using the equity method and other investments
+Property, plant and equipment and intangible assets
+Subsidiaries and other business units
+Proceeds from disposal of non-current assets
+Investments accounted for using the equity method and other investments
+Other non-current financial assets
+Property, plant and equipment and intangible assets
+Subsidiaries and other business units
+2021
+Liabilities and other items
+-56
+2
+-3,767
+-29
+-2
+-3,736
+-2,922
+-13
+-10
+-2,945
+0
+0
+360
+171
+156
+44
+1
+0
+190
+-37
+122
+5
+9,993
+7,699
+42
+3,024
+945
+-3,317
+-137
+-44
+-1,305
+10,423
+8,103
+-1,323
+-754
+4
+13
+-1,673