Deutsche Post DHL Expands Position in the United States and Pushes Transatlantic Free-Trade Zone

  Deutsche Post DHL Expands Position in the United States and Pushes
  Transatlantic Free-Trade Zone

  *U.S. market and the Americas region are key components in the Group’s
    growth strategy
  *Further expansion of leading market position of all divisions in the
    logistics operation being planned
  *CEO Appel receives the John McCloy Award for his promotion of
    transatlantic business ties
  *CEO Frank Appel: “Growth momentum and a boost for innovation for both
    sides”

Business Wire

NEW YORK -- June 12, 2013

Frank Appel, the CEO of Deutsche Post DHL, was presented last night with this
year’s John McCloy Award by the American Council of Germany in recognition of
his work on behalf of transatlantic business relations. During the award
presentation, the head of the world’s leading mail and logistics group called
once again for a free-trade zone between the European Union and the United
States to be quickly put in place. “The opportunity is there for the taking,
and we should do everything in our power to seize it,” Appel said in regard to
related statements made by political leaders on both sides of the Atlantic.

Appel said that such an agreement would produce at the very least 1 additional
percent of growth in both regions respectively and generate innovative
momentum in many industries and sectors. But the CEO noted that the creation
of the zone posed a tremendous challenge. For this reason, a determined effort
to create the zone is required on the highest political level, he added. “Such
an agreement should not just address all types of trade barriers and promote
the standardization of rules in important business areas,” Appel added. “It
should also eliminate existing barriers to investment and market entry. The
gains in efficiency resulting from this change would help both our customers
and companies around the world. The world’s most important economic
partnership could be fortified in this way.”

Appel noted that the benefits of a transatlantic free-trade zone would extend
well beyond commercial gains: “In a closer partnership, we would have an
opportunity to jointly tackle the world’s most pressing problems today –
climate change and sustainable globalization that creates participation
opportunities for more and more people around the world,” a confident Appel
said.

United States: a core market with much potential for Deutsche Post DHL

For Deutsche Post DHL, the U.S. market will play an important role in the
continued implementation of the Group’s global growth strategy. The trade lane
between Germany and the U.S. operated by DHL serves major international
companies in both directions. As part of this strategy, the Group’s DHL
Express Division is focusing on time-definite international shipments (TDI).
And the work is paying off: With daily revenue volume of more than EUR 3
million and over 50,000 shipments per day with these products alone, DHL is
one of the leading express providers in the United States. Last year, the
division boosted its revenues in the United States by more than one-third to
over EUR 1 billion. With its Global Forwarding & Freight and Supply Chain
Divisions, DHL is among the market leaders in the United States. In contract
logistics, the Group maintains business relationships with a number of major
companies in the country. In addition, DHL Global Mail offers a large range of
national and international postal services in the U.S. market.

In the United States, the Group employs more than 35,000 people who work at
over 800 locations. In a reflection of the U.S. market’s strategic importance,
the Group has also invested heavily in the effort to expand its business
there. As part of this effort, DHL’s fleet of delivery vehicles in New York
was completely retrofitted with environmentally conscious drive systems in
2011. DHL Express also opened a new air-freight center at the Miami airport at
the end of last year as a way to better serve the growing needs of customers
regarding shipments to and from Latin America. Furthermore, the company has
poured more than $100 million into the expansion and modernization of its air
hub in Cincinnati. It recently invested nearly $50 million in the construction
of an approximately 18,000 square meter sorting center with 280 new jobs. The
new facilities in Cincinnati will officially go into operation on June 13.

“The United States is responsible for a large share of global trade,” Appel
said. “For this reason, it is a central link in the global network of Deutsche
Post DHL. In 2012, we generated double-digit growth in our U.S. revenues. We
produce more than 10 percent of our consolidated revenues there. Given the
country’s economic strength, our leading market position and targeted growth
initiatives in all DHL divisions, we see tremendous potential for successfully
growing our company in the U.S. market.”

DHL: leading international logistics provider in the Americas region

In the entire Americas region, which comprises North America and South
America, the Group generated revenues of nearly EUR 10 billion in 2012 – with
a strong upward trend. During this past financial year alone, revenues were
boosted by more than EUR 1 billion. The Group currently employs more than
70,000 people on the American continent. All DHL divisions further cemented
their leading market positions in the region. “DHL Supply Chain is by far the
No. 1 in the Americas region. Global Forwarding is the market leader in air
freight, and Express is at the head of the pack in the highly competitive
market for time-critical international shipments in Latin America – we intend
to further bolster this market position and continuously add market share,”
Appel said in explaining the company’s ambitions in the region.

The foundation for this was laid by a far-reaching investment program. In the
past two years alone, DHL has invested nearly EUR 500 million in the region.
As part of these investments, new hubs for the express business were opened in
Colombia and Mexico. In addition, the entire fleet of vehicles in Argentina
was modernized and equipped with the latest security systems. One critically
important element of the investment program in the Americas region is
expanding the express network and, in particular, routes between America and
Asia’s growth markets. In recent months, DHL has extensively extended its
service range for intercontinental and intra-Asian routes. Through the
addition of new connections between the United States and Australia, Japan and
Hong Kong, the Express Division has recently made further improvements to its
line of services and cut transit times among many destinations once again.

Intact growth expectations

Growth in the Americas regions is primarily being fueled by the international
express business, an area where revenues in the international time-definite
shipments rose by 18 percent over the past year. The revenue cleared off
currency effects jumped by almost 11 percent during the past financial year.
Among Latin America’s emerging markets, Mexico and Brazil specifically offer
tremendous potential – for logistics in general and for the market leader with
its three DHL divisions in particular. The key industries here include such
global growth sectors as technology, the automotive industry, energy as well
as engineering and manufacturing. “DHL has been active in the growth markets
of the American continent since the 1970s and has gained unique expertise in
the region as a result,” Appel said. “With services and products that have
been especially tailored to meet the needs of customers there, we are
exceptionally well positioned to generate long-range profitable growth,” Appel
said in New York.

Deutsche Post DHL is the world’s leading mail and logistics services group.

The Deutsche Post and DHL corporate brands represent a one-of-a-kind portfolio
of logistics (DHL) and communications (Deutsche Post) services. The Group
provides its customers with both easy to use standardized products as well as
innovative and tailored solutions ranging from dialog marketing to industrial
supply chains. About 475,000 employees in more than 220 countries and
territories form a global network focused on service, quality and
sustainability. With programs in the areas of environmental protection,
disaster management and education, the Group is committed to social
responsibility. In 2012, Deutsche Post DHL generated revenues of more than 55
billion euros.

The postal service for Germany. The logistics company for the world.

For more information: www.dp-dhl.com

Contact:

Deutsche Post DHL
Media Relations
Silje Skogstad
Sebastian Steffen
+49 (0)228 182-99 44
pressestelle@deutschepost.de
or
Deutsche Post DHL
Media Relations – Americas
Bea Garcia, 1-954-701-9265
bea.garcia@dhl.com
or
Online: www.dp-dhl.de/presse
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