ON A NEW
LEVEL
2021 ANNUAL REPORT
Key figures
Financial figures
Revenue
Profit from operating activities (EBIT)
Return on sales 1
EBIT after asset charge (EAC)
Consolidated net profit for the period 2
Net cash from operating activities
Free cash flow
Capex 3
Equity ratio 4
Net debt 5
Net gearing 6
Stock data
Basic earnings per share 7
Diluted earnings per share 8
Cash flow per share 7, 9
Dividend per share
Dividend distribution
Number of shares as at 31 December
Year-end closing price
ESG figures
GHG efficiency index (CEX) 12
GHG emissions 13
Energy consumption, company fleet
Energy consumption, company buildings and facilities 14
Employee Opinion Survey, approval rate for Employee Engagement KPI
Number of employees 15
Share of women in executive positions 16
Lost time injury frequency rate (LTIFR) per 200,000 working hours
Share of valid compliance-relevant training certificates 16
€m
€m
%
€m
€m
€m
€m
€m
%
€m
%
€
€
€
€
€m
millions
€
index points
million tonnes CO2e
million kWh
million kWh
%
%
%
2017
2018
2019
60,444
3,741
6.2
2,175
2,713
3,297
1,432
2,268
33.4
1,938
13.1
2.24
2.15
2.72
1.15
1,409
1,228.7
39.75
32
34.88
21,733
3,194
75
61,550
3,162
5.1
716
2,075
5,796
1,059
2,648
27.5
12,303
47.0
1.69
1.66
4.71
1.15
1,419
1,236.5
23.91
33
35.63
23,243
3,194
76
63,341
4,128
6.5
1,509
2,623
6,049
867
3,617
27.6
13,367
48.2
2.13
2.09
4.90
1.15
1,422
1,236.5
34.01
35
33.20
23,100
3,099
77
2020
adjusted
66,716
4,847
7.3
2,199
2,979
7,699
2,535
2,999
25.5
12,928
47.9
2.41
2.36
6.22
1.35
1,673
1,239.1
40.50
37
33.64
24,336
3,091
83
2021
81,747
7,978
9.8
5,186
5,053
9,993
4,092
3,895
30.7
12,772
39.6
4.10
4.01
8.11
1.80 10
2,205 10, 11
1,239.1
56.54
36
39.36
27,296
3,190
84
519,544
547,459
546,924
571,974
592,263
21.5
4.4
–
22.1
4.3
–
22.2
4.2
–
23.2
3.9
–
25.1
3.9
96
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. 6 Net debt / net debt
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.
CONTENTS
3
CONTENTS
4
EDITORIAL
6
BOARDS AND COMMITTEES
6 Members of and mandates held by
the Board of Management
7 Members of and mandates held by
the Supervisory Board
9
REPORT OF THE SUPERVISORY BOARD
13 REPORTING PRACTICE
14 COMBINED MANAGEMENT
REPORT
14 GENERAL INFORMATION
14 Business model
24 Strategy
25 Research and development
26 Steering metrics
28 REPORT ON ECONOMIC POSITION
28 Forecast / actual comparison
29 Overall assessment
29 Economic parameters
30 Significant events
30 Results of operations
32 Divisions
39 Financial position
44 Net assets
Deutsche Post AG as parent company
45 DEUTSCHE POST AG (HGB)
45
45 Employees
45 Results of operations
46 Net assets and financial position
47 Expected developments, opportunities and risks
82 CONSOLIDATED FINANCIAL
STATEMENTS
82
INCOME STATEMENT
82 STATEMENT OF COMPREHENSIVE INCOME
48 NON-FINANCIAL STATEMENT
48 Strategic orientation
51 Environment
53 Workforce
56 Corporate citizenship
57 Corporate governance
60 EU Taxonomy
61 EXPECTED DEVELOPMENTS,
OPPORTUNITIES AND RISKS
Forecast period
Future economic parameters
61
61
62 Expected developments
63 Opportunity and risk management
67 Opportunity and risk categories
73 Overall assessment
83 BALANCE SHEET
84 CASH FLOW STATEMENT
86 STATEMENT OF CHANGES IN EQUITY
87 NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS OF DEUTSCHE POST AG
87 Company information
87 Basis of preparation
102 Segment reporting disclosures
105
Income statement disclosures
111 Balance sheet disclosures
131 Lease disclosures
132 Cash flow disclosures
133 Other disclosures
74 GOVERNANCE
74 Annual Corporate Governance Statement
80 Disclosures required by takeover law
152 RESPONSIBILITY STATEMENT
153 INDEPENDENT AUDITOR’S REPORT
158 INDEPENDENT PRACTITIONER’S REPORT
161 FINANCIAL CALENDAR
161 CONTACTS
Deutsche Post DHL Group – 2021 Annual Report EDITORIAL
4
We demonstrated our full
strength during challenging
times and achieved a new
record performance.
Frank Appel
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.
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-
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 strategy makes us
more resilient than ever.
With Strategy 2025, we are setting ourselves the right goals
and pursuing them with consistency and discipline. By
Deutsche Post DHL Group – 2021 Annual Report EDITORIAL
5
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.
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 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.
We are actively taking on
the challenges of the future.
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.
Our globally dedicated team
is our greatest asset and
the key to our success.
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.
Sincerely yours, Frank Appel
Chief Executive Officer
Deutsche Post DHL Group – 2021 Annual Report BOARDS AND C OMMITTEES
6
BOARDS AND COMMITTEES
Members of and mandates held by
the Board of Management
Members
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
Oscar de Bok
Supply Chain
Born in 1967, nationality Dutch
Board member since October 2019
Appointed until September 2027
Melanie Kreis
Finance
Born in 1971, nationality German
Board member since October 2014
Appointed until May 2027
Dr Tobias Meyer
Post & Parcel Germany
Born in 1975, nationality German
Board member since April 2019
Appointed until March 2027
Dr Thomas Ogilvie
Human Resources
Born in 1976, nationality German
Board member since September 2017
Appointed until August 2025
John Pearson
Express
Born in 1963, nationality British
Board member since January 2019
Appointed until December 2026
Tim Scharwath
Global Forwarding, Freight
Born in 1965, nationality German
Board member since June 2017
Appointed until May 2025
Membership of statutory supervisory boards
Dr Frank Appel
Fresenius Management SE (Supervisory Board)
(since 21 May 2021)
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.
Deutsche Post DHL Group – 2021 Annual Report BOARDS AND C OMMITTEES
7
Members of and mandates held by
the Supervisory Board
Members
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)
Lawrence Rosen
Member of various supervisory boards, former member of the
Board of Management, Deutsche Post AG
Mario Jacubasch
Deputy Chair of the Group Works Council, Deutsche Post AG
(until 31 August 2021)
Dr Stefan Schulte
Chair of the Executive Board of Fraport AG
Chair of the Group Works Council, Deutsche Post AG
(since 1 September 2021)
Prof. Dr-Ing. Katja Windt
Member of the Managing Board of SMS group GmbH
Thomas Koczelnik
(until 31 August 2021)
Former Chair of the Board of Management, KfW Bankengruppe
(since 1 November 2021)
Employee representatives
Dr Mario Daberkow
Member of the Managing Board of Volkswagen Financial Services AG
Ingrid Deltenre
Member of various boards of directors, former Director General of
the European Broadcasting Union
Dr Heinrich Hiesinger
Member of various supervisory boards, former Chair of the Board
of Management, thyssenkrupp AG
Dr Jörg Kukies
State Secretary, Federal Ministry of Finance (until 8 December 2021)
State Secretary, Federal Chancellery (since 9 December 2021)
Simone Menne
Member of various supervisory boards, former member of the
Board of Managing Directors of Boehringer Ingelheim GmbH
Andrea Kocsis (Deputy Chair)
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
Jörg von Dosky
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
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
Head of Wage, Civil Servant and Social Policies in the Postal
Services, Forwarding Companies and Logistics Department, ver.di
National Administration
Stefanie Weckesser
Deputy Chair of the Works Council, Deutsche Post AG, Augsburg
Operations Branch
Deutsche Post DHL Group – 2021 Annual Report BOARDS AND C OMMITTEES
8
Additional mandates
Shareholder representatives
Membership of comparable bodies
Membership of statutory supervisory boards
Dr Nikolaus von Bomhard (Chair)
Münchener Rückversicherungs-Gesellschaft AG (Munich Re)
(Chair)
Dr Günther Bräunig
Deutsche Pfandbriefbank AG (Chair)
Deutsche Telekom AG
Dr Heinrich Hiesinger
BMW AG
Fresenius Management SE
ZF Friedrichshafen AG (since 1 January 2021),
(Chair since 1 January 2022)
Dr Jörg Kukies
KfW IPEX-Bank GmbH 1
Simone Menne
BMW AG (until 18 May 2021)
Henkel AG & Co. KGaA
Lawrence Rosen
Lanxess AG
Lanxess Deutschland GmbH 2
Prof. Dr-Ing. Katja Windt
Fraport AG
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
Volkswagen Payments S. A., Luxembourg (Supervisory Board, Chair) 3
Volkswagen S. A., Institución de Banca Múltiple, Mexico
(Supervisory Board) 3 (until 7 October 2021)
VW Credit, Inc., USA (Board of Directors) 3
Ingrid Deltenre
Givaudan SA, Switzerland (Board of Directors)
Dr Stefan Schulte
Fraport Ausbau Süd GmbH (Supervisory Board, Chair) 4
Fraport Regional Airports of Greece A S. A., Greece
(Board of Directors, Chair) 4
Fraport Regional Airports of Greece B S. A., Greece
(Board of Directors, Chair) 4
Fraport Regional Airports of Greece Management Company S. A.,
Greece (Board of Directors, Chair) 4
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
Banque Cantonale Vaudoise SA, Switzerland (Board of Directors)
Agence France Presse, France (Board of Directors)
Akara Funds AG, Switzerland (Board of Directors)
Dr Jörg Kukies
KfW Bankengruppe (Deputy member of the Board of Directors)
(until 8 December 2021)
Jörg von Dosky
PSD Bank München eG
Stephan Teuscher
DHL Hub Leipzig GmbH (Deputy Chair)
Membership of comparable bodies
Simone Menne
Johnson Controls International plc, Ireland (Board of Directors)
Andrea Kocsis
KfW Bankengruppe (Board of Directors)
Russell Reynolds Associates Inc., USA (Board of Directors)
Lawrence Rosen
Qiagen N. V., Netherlands (Supervisory Board, Chair)
1 Group mandate, KfW Bankengruppe. 2 Group mandate, Lanxess AG. 3 Group mandates, Volkswagen AG. 4 Group mandates, Fraport AG.
You can find more information on our
website.
Deutsche Post DHL Group – 2021 Annual Report REPORT OF THE SUPERVISORY BOARD
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. Ex ecutives 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
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
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
Jörg von Dosky
Gabriele Gülzau
Thomas Held
Dr Heinrich Hiesinger
Mario Jacubasch
Thomas Koczelnik (until 31 August 2021)
Thorsten Kühn
Dr Jörg Kukies
Ulrike Lennartz-Pipenbacher
Simone Menne
Yusuf Özdemir (since 9 September 2021)
Lawrence Rosen
Dr Stefan Schulte
Stephan Teuscher
Stefanie Weckesser
Prof. Dr-Ing. Katja Windt
Supervisory Board meetings
Committee meetings
Attendance / meetings
Attendance
%
Attendance / meetings
Attendance
%
5 / 5
5 / 5
5 / 5
5 / 5
5 / 5
5 / 5
5 / 5
5 / 5
5 / 5
5 / 5
3 / 3
5 / 5
5 / 5
5 / 5
5 / 5
2 / 2
5 / 5
5 / 5
5 / 5
5 / 5
5 / 5
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
14 / 14
13 / 13
6 / 6
–
8 / 8
–
–
4 / 4
6 / 6
1 / 1
10 / 10
3 / 3
11 / 11
–
7 / 7
2 / 2
–
7 / 7
13 / 13
7 / 7
–
100
100
100
–
100
–
–
100
100
100
100
100
100
–
100
100
–
100
100
100
–
Deutsche Post DHL Group – 2021 Annual Report
REPORT OF THE SUPERVISORY BOARD
10
reports on committee meetings. The following key topics
were also addressed:
Group’s succession planning with a special focus on female
executives.
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.
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 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.
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.
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
Super visory 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.
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
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.
The Executive Committee met three times and dealt
mainly with Board of Management issues, particularly re-
viewing succession planning.
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 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 Strategy Committee met six times, primarily ad-
dressing the strategic positioning of the individual business
Deutsche Post DHL Group – 2021 Annual Report REPORT OF THE SUPERVISORY BOARD
11
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.
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.
The Mediation Committee did not meet in the year
under review.
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
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 Lieferketten gesetz (Supply Chain Act),
Finanzmarktintegritäts stärkungsgesetz (Financial Market
Integrity Strengthening Act) and other current develop-
ments in the field of corporate governance.
Changes to the Board of Management
There were no changes to the Board of Management during
the year under review.
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.
Changes to the Supervisory Board
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
Özdemir to replace him as a member of the Supervisory
Board.
An overview of current Supervisory Board members is
provided in
Boards and committees.
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.
Company in compliance with all recommendations of
the German Corporate Governance Code
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.
Deutsche Post DHL Group – 2021 Annual Report REPORT OF THE SUPERVISORY BOARD
12
agement’s proposal for the appropriation of net retained
profit and the payment of a dividend of €1.80 per share.
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.
Bonn, 8 March 2022
The Supervisory Board
Nikolaus von Bomhard
Chairman
2021 annual and consolidated financial statements
examined
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.
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-
Deutsche Post DHL Group – 2021 Annual Report REPORTING PRACTICE
13
REPORTING PRACTICE
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
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).
online and as a
Applied reporting standards
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 (IFRS s) and the corresponding Interpretations
of the International Accounting Standards Board (IASB) as
adopted in the European Union.
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.
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-
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.
Independent audit
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.
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 contents of the
Corporate governance statement pur-
suant to Section 289f and 315d HGB have not been audited.
Forward-looking statements
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
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.
Additional information
Refers to information contained elsewhere in the report.
Indicates a hyperlink to content available online that is
not part of this report.
Separate remuneration report
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.
Translation
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.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GENERAL INFORMATION
14
COMBINED MANAGEMENT REPORT
GENERAL
INFORMATION
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.
The internal services that support the entire Group are
consolidated in our Global Business Services unit. Group
management functions are centralised in Group Functions.
Organisational changes
On 1 January 2021, the Corporate Incubations board
department was discontinued and Corporate Functions
renamed Group Functions.
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.
Corporate structure as at 31 December 2021
Divisions
Express
Global Forwarding,
Freight
Supply Chain
eCommerce
Solutions
Post & Parcel
Germany
Transport of urgent
documents and goods,
primarily as time-
definite international
shipments
International forwarding
services for air, ocean
and overland freight
Tailor-made logistics
services and supply
chain solutions based
on globally standardised
modules such as ware-
housing, transport and
value-added services
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
Transporting, sorting
and delivering docu-
ments and goods in
Germany and export to
the rest of the world
Share of
consolidated
revenue 1 2021:
29.0 %
26.4 %
16.8 %
7.1 %
20.7 %
Group Functions
Corporate Center
Global Business Services
Customer Solutions & Innovation
CEO
Finance
Human Resources
1
Note 11 to the consolidated financial statements.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GENERAL INFORMATION
15
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.
A presence that spans the globe
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.
EXPRESS DIVISION
A global express network
Around
120,000
employees
22
hubs
Around
3
million
customers
Around
111,800
service points
More than
500
airports
serviced
More than
320
dedicated
aircraft
Around
3,400
facilities
More than
220
countries and
territories
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GENERAL INFORMATION
16
Time-definite international shipments
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.
Our virtual airline
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.
Available capacity
Core
Express TDI core product – capacity
based upon average utilisation,
adjusted on a daily basis
Keeping our customer service promise
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.
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.
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.
BSA
Block Space
Agreement –
guaranteed air
cargo product
ACS
Air Capacity Sales,
average total spare
capacity that is not
slated to be utilised
for BSA or TDI core
volumes
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GENERAL INFORMATION
17
Around
200
freight terminals
GLOBAL FORWARDING, FREIGHT DIVISION
Air, ocean and overland freight
More than
250,000
customers
More than
150
countries and
territories
Around
45,000
employees
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.
Air freight achieved volume growth despite uncertain
market conditions
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.
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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GENERAL INFORMATION
18
Air and ocean freight market 2021: relevant volumes
Air freight (m tonnes) 1
Ocean freight (m TEUs) 2
Asia Pacific
11.6
39.3
Americas
5.5
9.1
Middle
East / Africa
1.1
5.3
Europe
6.0
8.4
Other
0.9
1.1
Global
25.1
63.2
1 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.
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.
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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GENERAL INFORMATION
19
SUPPLY CHAIN DIVISION
Solutions that reduce customer supply chain complexity
Around
14
million m2
warehousing
and operational
space1
Around
177,000
employees
Around
10,000
vehicles
Most innovative
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.
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.
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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GENERAL INFORMATION
20
Leading position in contract logistics
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.
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.
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 2020 1
€ billion
Contract logistics
1 Company estimate.
Asia Pacific
Americas
Middle
East / Africa
75.9
63.4
7.8
Europe
68.3
Global
215.4
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GENERAL INFORMATION
21
ECOMMERCE SOLUTIONS DIVISION
Domestic last-mile parcel delivery and non-TDI cross-border services
More than
20
countries
More than
1.1
billion parcels
More than
70,000
service points
Around
40,000
employees
Domestic and international non-time-definite
parcel delivery
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.
6
dedicated
aircraft
Around
22,500
vehicles
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GENERAL INFORMATION
22
POST & PARCEL GERMANY DIVISION
Nationwide post and parcel network in Germany
Around
197,000
employees
Around
25,500
sales points
Around
8,700
Packstations
82
mail centres
37
parcel centres
Around
108,600
postboxes
Around
49
million letters
per working day
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 %
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GENERAL INFORMATION
23
Cross-channel dialogue
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.
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 %).
German advertising market 1, 2021
Market volume 2: €28.1 billion
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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GENERAL INFORMATION
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.
Strategic triad of purpose, vision and values
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.
Our Purpose
Connecting people,
improving lives
Our Vision
We are THE logistics company for the world
Our Values
Respect & Results
Our Mission
Excellence. Simply delivered.
Along the three bottom lines in a sustainable way
Enabled by Common DNA
Our Business Unit focus
Strengthening the profitable core
Supported by Group functions
Digitalisation
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GENERAL INFORMATION
25
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.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GENERAL INFORMATION
26
Steering metrics
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
position and in the
Non-financial statement.
Additional metrics that we will report beginning in 2022
Report on economic
are described and forecast in the
opportunities and risks section.
Expected developments,
EBIT and EAC (EBIT after asset charge)
The profitability of the Group’s operating divisions is mea-
sured as profit from operating activities (EBIT).
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
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.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GENERAL INFORMATION
27
Calculations
Revenue
Other operating income
Changes in inventories and work performed and capitalised
Materials expense
Staff costs
Depreciation, amortisation and impairment losses
Other operating expenses
Net income / loss from investments accounted
for using the equity method
EBIT
Profit from operating activities
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
• Trade receivables (included in net working capital) 1
• Other non-current operating assets 2
Operating liabilities
• Operating provisions
EBIT
Depreciation, amortisation and impairment losses
Net income / loss from disposal of non-current assets
Non-cash income and expense
Change in provisions
Change in other non-current assets and liabilities
Dividends received
Income taxes paid
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
(excluding provisions for pensions and similar obligations)
Cash inflow / outflow arising from acquisitions / divestitures
• Trade payables (included in net working capital) 1
• Other non-current operating liabilities 2
Net asset base
Cash outflow arising from repayments and interest on
lease liabilities
Net interest paid
FCF
Free cash flow
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.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
28
REPORT ON ECONOMIC POSITION
Forecast / actual comparison
Targets for 2021
EBIT 1
Results for 2021
EBIT
• 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
• Group: €8.0 billion
• DHL divisions: €6.6 billion
• Post & Parcel Germany division: €1.7 billion
• Group Functions: €–0.4 billion
Targets for 2022
EBIT
• Group: around €8.0 billion + / – max. of 5 %
• DHL divisions: around €7.0 billion + / – max. of 4 %
• Post & Parcel Germany division: around €1.5 billion
+ / – max. of 10 %
• Group Functions: around €–0.45 billion
EAC
EAC
EAC
• Projected to develop in line with EBIT and increase
• Rose in line with EBIT and increased to €5.2 billion
• Slight decline if asset charge increases as forecast
Cash flow 1
Cash flow
Cash flow
• Free cash flow amounts to more than €3.6 billion
• Free cash flow amounts to €4.1 billion
• Free cash flow 3 amounts to around €3.6 billion + / – max. of 5 %
Capital expenditure (capex) 1
Capital expenditure (capex)
Capital expenditure (capex)
• Investment spending (excluding leasing): around €3.9 billion
• Investment spending (excluding leases): €3.9 billion
• Investment spending (excluding leases): around €4.2 billion
Dividend distribution
Dividend distribution
Dividend distribution
• Dividend payout of 40 % to 60 % of net profit
• To be proposed: dividend payout of 42.9 % of adjusted net profit
• Dividend payout of 40 % to 60 % of net profit
Greenhouse gas efficiency
Greenhouse gas efficiency
Greenhouse gas emissions
• CEX projected to increase by one index point
• KPI and targets will be reviewed as part of the ESG roadmap 2
• CEX drops one index point to 36 index points
• New metric Realised Decarbonisation Effects replaces CEX
Employee Opinion Survey
beginning in 2022
Employee Opinion Survey
• Employee Engagement approval rate of more than 80 %
• Employee Engagement approval rate at 84 %
• Realised Decarbonisation Effects 4: 969 kilotonnes of CO2e
Employee Engagement
• Employee Engagement approval rate of more than 80 %
Women in executive positions
• Share of women in middle and upper management 4 rises to 25.9 %
Lost time injury frequency rate (LTIFR)
• LTIFR per 200,000 working hours 4 decreases to 3.7
Compliance-relevant training
• Share of valid training certificates in middle and upper
management 4 is at least 97 %
1 Forecast adjusted several times during the year. 2
Expected developments, opportunities and risks.
Strategy. 3 Calculation does not include the purchase price payment for Hillebrand. 4 New performance indicator to be used for managing the Group,
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
29
Overall assessment
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.
Economic parameters
The following figures describing the economic parameters
are based on information from IHS Markit.
Noticeable global economic growth despite further
pandemic waves
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 %
(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.
Upswing receives support from revival of global
commodity flow
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.
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.
The intersection of the limited ability to expand supply
due to the utilisation of intercontinental transport capacities
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.
Sustained growth in e-commerce
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.
Legal environment
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.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
30
Significant events
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.
In keeping with our financial strategy, we bought back
shares with a total value of €1 billion during the reporting
year.
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.
Results of operations
Portfolio unchanged
There were no material changes in our portfolio in the
reporting year.
Consolidated revenue up 22.5 %
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.
Other operating income increased by €196 million to
€2,291 million.
Increase in materials expense
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 –
increased other operating expenses by €442 million to
€4,896 million.
Consolidated EBIT up 64.6 %
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.
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.
Selected indicators for results of operations
Revenue 1
Profit from operating activities (EBIT)
Return on sales 2
EBIT after asset charge (EAC)
Consolidated net profit for the period 3
Earnings per share 4
Dividend per share
€ m
€ m
%
€ m
€ m
€
€
2020
66,716
4,847
7.3
2,199
2,979
2.41
1.35
2021
81,747
7,978
9.8
5,186
5,053
4.10
1.80 5
Q 4 2020
19,093
1,966
10.3
1,310
1,302
1.05
–
Q 4 2021
23,378
2,213
9.5
1,488
1,484
1.21
–
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. 5 Proposal.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
31
Net asset base (consolidated) 1
€ m
Intangible assets and property,
plant and equipment
Net working capital
Operating provisions
(excluding provisions
for pensions and similar
obligations)
Other non-current assets
and liabilities
Net asset base
31 Dec.
2020
31 Dec.
2021
+ / – %
33,673
36,996
– 505
–162
9.9
67.9
–2,267
–2,472
9.0
35
131
>100
30,936
34,493
11.5
1 Assets and liabilities as described in the segment reporting,
note 10 to the
consolidated financial statements.
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
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.
EBIT after asset charge (EAC)
€ m
EBIT
Asset charge
EAC
2020
4,847
2021
7,978
–2,648
–2,792
2,199
5,186
+ / – %
64.6
– 5.4
>100
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.
1,673
1.80
Operating provisions were up year-on-year, as were
1,409
1,419
1,422
1.15
1.15
1.15
1.35
1,270
1.05
1,027
0.85
other non-current assets and liabilities.
15
16
17
18
19
20
21 1
Dividend per no-par-value share (€).
1 Proposal.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
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.
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 %.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
33
Key figures, Express
€ m
Revenue
of which Europe
Americas
Asia Pacific
MEA (Middle East and Africa)
Consolidation / Other
Profit from operating activities (EBIT)
Return on sales (%) 1
Operating cash flow
1 EBIT / revenue.
Express: revenue by product
€ m per day 1
Time Definite International (TDI)
Time Definite Domestic (TDD)
2020
19,135
8,110
3,971
7,139
1,257
2021
24,217
10,193
5,120
8,871
1,361
–1,342
–1,328
2,751
14.4
4,382
4,220
17.4
5,894
+ / – %
Q 4 2020
Q 4 2021
+ / – %
26.6
25.7
28.9
24.3
8.3
1.0
53.4
–
34.5
5,599
2,424
1,152
2,046
348
–371
1,040
18.6
1,381
6,856
2,863
1,464
2,560
364
–395
1,111
16.2
1,331
22.5
18.1
27.1
25.1
4.6
– 6.5
6.8
–
–3.6
2020
57.3
5.0
2021
73.6
5.8
+ / – %
Q 4 2020
Q 4 2021
28.4
16.0
68.5
6.0
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
615
2021
1,210
645
+ / – %
Q 4 2020
Q 4 2021
10.3
4.9
1,289
716
1,281
671
+ / – %
– 0.6
– 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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
34
GLOBAL FORWARDING, FREIGHT
Key figures, Global Forwarding, Freight
€ m
Revenue
of which Global Forwarding
Freight
Consolidation / Other
Profit from operating activities (EBIT)
Return on sales (%) 2
Operating cash flow
1 Prior-year figures adjusted due to reclassifications.
2 EBIT / revenue.
Global Forwarding: revenue
€ m
Air freight
Ocean freight
Other
Total
1 Prior-year figures adjusted due to reclassifications.
Global Forwarding: volumes
Thousands
Air freight exports
Ocean freight
1 Prior-year figures adjusted due to reclassifications.
2 Twenty-foot equivalent units.
2020
adjusted 1
15,813
11,579
4,345
–111
592
3.7
665
2021
+ / – %
Q 4 2020
adjusted 1
Q 4 2021
+ / – %
22,833
18,108
4,848
–123
1,303
5.7
1,008
44.4
56.4
11.6
–10.8
>100
–
51.6
4,365
3,212
1,181
–28
173
4.0
259
7,134
5,894
1,270
–30
403
5.6
622
63.4
83.5
7.5
–7.1
>100
–
>100
2021
+ / – %
2020
adjusted 1
6,137
3,502
1,940
8,788
7,115
2,205
11,579
18,108
Q 4 2020
adjusted 1
1,770
949
493
3,212
Q 4 2021
+ / – %
2,848
2,456
590
5,894
60.9
>100
19.7
83.5
43.2
>100
13.7
56.4
2020
adjusted 1
1,667
2,891
2021
+ / – %
2,096
3,142
25.7
8.7
Q 4 2020
adjusted 1
478
771
tonnes
TEU 2
Q 4 2021
+ / – %
561
802
17.4
4.0
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.
Positive revenue trend
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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
35
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 COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
36
SUPPLY CHAIN
Key figures, Supply Chain
€ m
Revenue
of which EMEA ( Europe, Middle East and Africa)
Americas
Asia Pacific
Consolidation / Other
Profit from operating activities (EBIT)
Return on sales (%) 2
Operating cash flow
1 Prior-year amounts adjusted due to reclassifications.
2 EBIT / revenue.
2020
adjusted 1
2021
+ / – %
Q 4 2020
adjusted 1
Q 4 2021
+ / – %
12,549
13,864
6,104
4,640
1,814
– 9
424
3.4
6,596
5,266
2,046
– 44
705
5.1
1,063
1,582
10.5
8.1
13.5
12.8
<–100
66.3
–
48.8
3,501
1,689
1,310
505
–3
174
5.0
699
3,655
1,806
1,329
534
–14
198
5.4
664
4.4
6.9
1.5
5.7
<–100
13.8
–
– 5.0
Impacts of the pandemic on our business
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.
Strong revenue growth in the year under review
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
and contract renewals provide further reinforcement. In
the fourth quarter of 2021, revenue increased by 4.4 % to
€3,655 million.
Supply Chain: revenue by sector and region, 2021
Total revenue: €13,864 m
of which Retail
Consumer
Auto-mobility
Technology
Life Sciences & Healthcare
Engineering & Manufacturing
Others
of which Europe / Middle East / Africa / Consolidation
Americas
Asia Pacific
29 %
22 %
14 %
13 %
12 %
6 %
4 %
47 %
38 %
15 %
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.
Earnings performance significantly higher than
previous year
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 non recurring 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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
37
ECOMMERCE SOLUTIONS
Key figures, eCommerce Solutions
€ m
Revenue
of which Americas
Europe
Asia
Other / Consolidation
Profit from operating activities (EBIT)
Return on sales (%) 1
Operating cash flow
1 EBIT / revenue.
Impacts of the pandemic on our business
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.
Revenue growth in all regions
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.
2020
4,829
1,629
2,618
593
–11
158
3.3
337
2021
5,928
2,079
3,140
719
–10
417
7.0
654
+ / – %
Q 4 2020
Q 4 2021
+ / – %
22.8
27.6
19.9
21.2
9.1
>100
–
94.1
1,455
1,664
495
785
182
–7
75
5.2
37
617
855
195
–3
93
5.6
99
14.4
24.6
8.9
7.1
57.1
24.0
–
>100
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.
POST & PARCEL GERMANY
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.
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.
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.
Revenue surpasses prior-year level
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.
Varying business unit performance
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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
38
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.
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.
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.
EBIT improvement over prior year
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.
Key figures, Post & Parcel Germany
€ m
Revenue
of which Post Germany
Parcel Germany
International
Other / Consolidation
Profit from operating activities (EBIT)
Return on sales (%) 1
Operating cash flow
1 EBIT / revenue.
Post & Parcel Germany: revenue
€ m
Post Germany
of which Mail Communication
Dialogue Marketing
Other / Consolidation (Post Germany)
Parcel Germany
Post & Parcel Germany: volumes
Mail items (millions)
Post Germany
of which Mail Communication
Dialogue Marketing
Parcel Germany
2020
2021
+ / – %
Q 4 2020
Q 4 2021
+ / – %
16,455
17,445
8,030
5,915
2,397
113
1,592
9.7
1,703
2020
8,030
5,525
1,804
701
5,915
7,995
6,785
2,570
95
1,747
10.0
1,811
2021
7,995
5,473
1,811
711
6,785
6.0
– 0.4
14.7
7.2
–15.9
9.7
–
6.3
4,801
2,211
1,839
726
25
674
14.0
695
4,771
2,197
1,840
714
20
576
12.1
346
+ / – %
Q 4 2020
Q 4 2021
– 0.4
– 0.9
0.4
1.4
14.7
2,211
1,519
507
185
2,197
1,478
530
189
1,839
1,840
– 0.6
– 0.6
0.1
–1.7
–20.0
–14.5
–
– 50.2
+ / – %
– 0.6
–2.7
4.5
2.2
0.1
2020
2021
+ / – %
Q 4 2020
Q 4 2021
+ / – %
14,260
14,216
6,420
6,827
1,614
6,314
6,928
1,818
– 0.3
–1.7
1.5
12.6
3,889
1,753
1,870
498
3,942
1,687
1,992
488
1.4
–3.8
6.5
–2.0
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
39
Financial position
Selected cash flow indicators
€ m
Cash and cash equivalents as at 31 December
Change in cash and cash equivalents
Net cash from operating activities
Net cash used in investing activities
Net cash used in financing activities
2020
4,482
1,809
7,699
–3,640
–2,250
2021
3,531
–1,055
9,993
– 4,824
– 6,224
Q 4 2020
Q 4 2021
4,482
233
2,918
–1,672
–1,013
3,531
– 444
2,616
–2,184
– 876
Financial management is a centralised function in
the Group
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.
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 pursued its proven finance strategy once
again in the 2021 financial year, which, in addition to the
interests of shareholders, also takes the creditor require-
ments into account. The finance strategy will be further
enhanced in 2022.
FFO to debt
€ m
Operating cash flow before changes in
working capital
Interest received
Interest paid
Adjustment for pensions
2020
2021
8,103
10,423
67
556
97
91
550
102
Funds from operations, FFO
7,711
10,066
Reported financial liabilities
19,098
19,897
Financial liabilities at fair value through
profit or loss
Adjustment for pensions
Surplus cash and near-cash investments 1
Debt
FFO to debt (%)
54
5,826
4,350
13
3,777
4,089
20,520
19,572
37.6
51.4
1 Reported cash and cash equivalents and investment funds callable at sight,
less cash needed for operations.
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.
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.
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
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
40
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 COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
41
Agency ratings
Fitch
Long-term: BBB+
Short-term: F2
Outlook: stable
Rating factors
Moody’s
Long-term: A3
Short-term: P –2
Outlook: stable
Rating factors
• Balanced business risk profile
• Growth in parcel and express business fuelled by e-commerce
• Dynamic volume growth in Time Definite International and Time Definite Domestic products
• Solid credit metrics and good liquidity
• Large scale and strong business profile, supported by global leadership positions in express and
logistics, and by the large German mail business
• 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
• Solid financial profile
• Good earnings momentum supported by solid e-commerce growth
Rating factors
Rating factors
• Structural mail volume decline in the Post & Parcel Germany division and challenges in managing
• Challenges faced in domestic letter mail business which result from the structural decrease in
the cost structure in the division
conventional letter mail
• Exposure to global market volatility and competitiveness through the DHL divisions
• Exposure to highly competitive mature markets and volatile market conditions in the logistics
business
• Increasing capital spending, which hampers cash generation
Liquidity and sources of funds
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).
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.
Financial liabilities
€ m
Lease liabilities
Bonds
Amounts due to banks
Promissory note loans
Financial liabilities at fair value through
profit or loss
Other financial liabilities
2020
2021
10,459
11,805
7,410
6,669
479
150
54
546
544
150
13
716
19,098
19,897
Capital expenditure for assets acquired above
prior-year level
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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
42
Capex and depreciation, amortisation and impairment losses, full year
Express
2021
1,707
1,246
2,953
2020
1,428
974
2,402
Global
Forwarding,
Freight
Supply Chain
eCommerce
Solutions
Post & Parcel
Germany
Group
Functions
Consolidation 1
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
104
207
311
132
215
347
351
973
483
667
1,324
1,150
141
143
284
245
178
423
590
14
604
883
14
897
385
448
833
445
760
1,205
1,383
1,511
246
245
920
756
169
179
329
334
784
744
1.74
1.95
1.26
1.42
1.44
1.52
1.68
2.36
1.84
2.69
1.06
1.62
Group
2021
3,895
3,080
6,975
2020
2,999
2,759
5,758
0
0
0
–1
3,830
3,768
–
1.50
1.85
0
0
0
–1
–
Capex (€ m) relating to acquired assets
Capex (€ m) relating to leased assets
Total (€ m)
Depreciation, amortisation and impairment
losses (€ m)
Ratio of total capex to depreciation, amortisation
and impairment losses
1 Including rounding.
Capex and depreciation, amortisation and impairment losses, Q 4
Global
Forwarding,
Freight
Express
Supply Chain
eCommerce
Solutions
Post & Parcel
Germany
Group
Functions
Consolidation 1
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
737
259
996
758
334
1,092
41
74
115
355
400
60
37
60
97
65
99
289
388
166
155
321
79
39
118
138
90
228
2020
260
2
262
2021
403
5
408
165
151
316
136
263
399
228
117
43
51
89
90
190
190
2.81
2.73
1.92
1.49
1.70
2.74
2.74
4.47
2.94
4.53
1.66
2.10
Group
2021
1,638
906
2020
1,381
814
2,195
2,544
965
912
2.27
2.79
0
0
0
0
–
0
–1
–1
–1
–
Capex (€ m) relating to acquired assets
Capex (€ m) relating to leased assets
Total (€ m)
Depreciation, amortisation and impairment
losses (€ m)
Ratio of total capex to depreciation, amortisation
and impairment losses
1 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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
43
Significantly higher operating cash flow
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.
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).
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
Acquisition of subsidiaries and other business units
Acquisition 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
Free cash flow showed a sharp improvement from
Cash outflow for leases
€2,535 million to €4,092 million.
Interest received (without leasing)
Interest paid (without leasing)
Net interest paid
Free cash flow
2020
7,699
122
–2,922
2021
9,993
190
–3,736
Q 4 2020
2,918
38
–1,259
Q 4 2021
2,616
102
–1,456
–2,800
–3,546
–1,221
–1,354
5
0
0
–13
– 8
27
0
–1,894
–394
–2,261
67
–162
– 95
2,535
13
1
0
–2
12
143
16
–2,051
–383
–2,275
75
–167
– 92
4,092
1
0
0
0
1
10
0
– 478
– 96
– 564
16
–75
– 59
1,075
10
1
0
0
11
122
16
– 532
–100
– 494
22
– 68
– 46
733
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION
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.
Net assets
Selected indicators for net assets
Equity ratio
Net debt
Net interest cover
Net gearing
31 Dec.
2020
31 Dec.
2021
25.5
30.7
12,928
12,772
9.9
47.9
17.4
39.6
%
€ m
%
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
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.
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.
Balance sheet structure of the Group as at 31 December
€ m
Intangible assets
ASSETS
63,592
55,307
21 %
19 %
Property, plant and equipment
40 %
39 %
Trade receivables
16 %
18 %
EQUITY AND LIABILITIES
63,592
55,307
Equity
26 %
31 %
Non-current provisions and liabilities
43 %
36 %
Other assets
23 %
24 %
Current provisions and liabilities
31 %
33 %
2020
2021
2020
2021
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT REPORT ON ECONOMIC POSITION – DEUTSCHE POST AG (HGB)
45
Net debt drops slightly to €12,772 million
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
Current financial liabilities
Financial liabilities 1
Cash and cash equivalents
Current financial assets
Positive fair value of non-current
financial derivatives 2
Financial assets
Net debt
31 Dec.
2020
15,833
31 Dec.
2021
16,589
2,893
2,802
18,726
19,391
4,482
1,315
3,531
3,088
1
0
5,798
6,619
12,928
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.
1 Less operating financial liabilities.
2 Recognised in non-current financial assets in the balance sheet.
Employees
The number of full-time equivalents at Deutsche Post AG
at the reporting date was 165,221 (previous year: 166,143).
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,
€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
Revenue
Other own work capitalised
Other operating income
Materials expense
Staff costs
Amortisation of intangible assets and
depreciation of property, plant and
equipment
Other operating expenses
Financial result
Taxes on income
2020
15,585
53
972
2021
16,610
77
1,109
16,610
17,796
– 5,207
– 8,532
– 5,756
– 8,844
–291
–2,156
–317
–2,134
–16,186
–17,051
2,765
3,616
–274
– 426
Result after tax / Net profit for the period
2,915
3,935
Retained profits brought forward from
previous year
Net retained profit
5,062
6,304
7,977
10,239
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT DEUTSCHE POST AG (HGB)
46
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.
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.
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).
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.
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).
Net assets and financial position
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
Intangible assets
Property, plant and equipment
Non-current financial assets
Current assets
Inventories
Receivables and other assets
Securities
Cash and cash equivalents
Prepaid expenses
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Subscribed capital
Treasury shares
Issued capital
(Contingent capital: €139 million)
Capital reserves
Revenue reserves
Net retained profit
Provisions
Liabilities
Deferred income
2020
2021
190
3,430
15,713
19,333
232
3,848
13,285
17,365
68
79
19,251
24,795
1,208
2,767
1,745
1,861
23,294
28,480
385
410
43,012
46,255
1,239
0
1,239
4,670
4,480
7,977
18,366
5,388
1,239
–15
1,224
4,679
3,598
10,239
19,740
5,227
19,186
21,198
72
90
TOTAL EQUITY AND LIABILITIES
43,012
46,255
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT DEUTSCHE POST AG (HGB)
47
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.
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
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
48
NON-FINANCIAL
STATEMENT
for Deutsche Post AG and for the Deutsche Post DHL Group
in accordance with Sections 289b(1) and 315b(1) HGB
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.
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.
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-
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.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
49
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.
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.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
50
Contents of the combined non-financial statement
Reporting in accordance with Sections 289b(1) and 315b(1) HGB
Aspects (HGB)
Business model
Concepts
Claims for 2021
Results for 2021
Environmental matters
Climate and environmental protection
Greenhouse gas efficiency increases by one
index point
Employee matters
Employee engagement and motivation
Employee Engagement KPI approval rate of
more than 80 %
CEX drops one index point to 36 1, 2
As of 2022, we will replace CEX as a perfor-
mance indicator with Realised Decarbonisation
Effects 2
Employee Engagement climbs to 84 % 1, 2
Promotion of diversity and inclusion
Increase share of women in executive
positions 3
Share of women in executive positions
totals 25.1 % 2, 3
Ensure health at work
Prevent accidents
LTIFR amounts to 3.9 2
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
Social matters
Corporate citizenship
Employee pride in contribution to society
Approval rate of 79 % for this question in
annual survey of employees 2
Society
Anti-corruption and -bribery matters
Compliance with laws, principles and policies
Participation by executives 3 in compliance
training
96 % valid training certificates 2, 3
Respect for human rights
Prevent human rights violations
Carry out audits with regard to human rights
19 audits have been carried out 2
Corporate governance
Expected developments
Corporate governance
Cybersecurity
Guarantee IT system and data security
Taxes
Avoid corporate structuring only for the
purpose of tax optimisation
Participation by executives 3 in Information
Security Awareness training
Adhere to tax strategy Group-wide
98 % valid training certificates 3
Corporate governance
New target definition under development
Taxes and social security contributions paid
in line with the tax strategy
Corporate governance
1 Management-relevant in the year under review,
Steering metrics. 2 Reviewed with reasonable assurance,
Assurance Report. 3 In middle and upper management.
Reporting on the facilitation of sustainable investments (EU Taxonomy)
Regulation 2020 / 852, Article 8, of the European Parliament and of the Council
EU Taxonomy
Results for 2021
Report taxonomy-eligible shares of revenue, capex and opex
56 % of revenue, 64 % of capex, 62 % of opex are taxonomy-eligible
Report section
EU Taxonomy
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
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 by mode of transportation
Total: 39.36 million tonnes CO2e 1
70 %Air transport
1 %
Buildings
22 %
Ground transport
GHG emissions (well-to-wheel)
Million tonnes CO2e
GHG emissions, total
of which Scope 1
Scope 2
Scope 3
2020
33.64
6.59
0.19
2021
+ / – %
39.36
7.30
0.20
17.0
10.8
5.3
18.6
26.86
31.86
7 %
Ocean transport
1 Scopes 1 to 3.
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
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
52
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.
GHG efficiency drops
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.
Using sustainable technologies and fuels
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.
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.
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
Results for 2021
Targets for 2030
Use sustainable fuels and technologies
€156 million used
Use sustainable fuels in air, ocean and road
freight
€28 million used for the purchase of
sustainable fuels in addition to the legally
required blending
Share of sustainable fuels amounts to 1.3 %
Use up to €7 billion for decarbonisation
Share of sustainable fuels in air, ocean and
road freight tops 30 %
Increase electrification of the fleets
€115 million used
60 % e-vehicles used in pick-ups and deliveries
Climate-neutral building design
Some 20,700 e-vehicles used in pick-ups and
deliveries
€13 million used for climate-neutral
technologies
All our own new buildings are climate neutral
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
53
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)
2020 1
24,336
19,625
2021
27,296
22,660
3
4,711
128
3,091
1,711
1,464
175
4,636
150
3,190
1,736
1,497
Million kWh
Fleet consumption
Air transport (kerosene)
of which sustainable fuel
Road transport
of which sustainable fuels 2
Consumption in buildings and facilities 3
of which electricity
of which from renewable sources
1 Adjusted due to structural changes.
2 Includes legally required blending.
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
Strategy. It connects us across
call it our common DNA,
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).
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-
Employee matters
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.
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.
Topics
KPI
Results for 2021
Targets for 2022
Targets for 2025
Employee engagement
Employee Engagement 1
Diversity and inclusion
Share of women in middle-
and upper- management 1
Occupational health and
safety
LTIFR per 200,000 working
hours 1
Employee Engagement
approval rate in the annual
survey increases to 84 %
Share of women of 25.1 %
Group approval rate of
more than 80 %
Maintain employee
engagement at a high level
Share of women rises to
25.9 %
Share of women amounts
to 30 %
LTIFR of 3.9
LTIFR decreases to 3.7
LTIFR of less than 3.1
1 Relevant for internal management; from 2022, share of women in middle- and upper-management positions as well as LTIFR.
Deutsche Post DHL Group – 2021 Annual Report
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
2020
2021
+ / – %
Headcount
At year end 1
Average for the year 1
Full-time equivalents
At year end 1
of which Express
Global Forwarding,
Freight 2
Supply Chain 2
571,974
592,263
547,128
574,047
526,896
105,036
548,042
114,134
41,897
43,840
166,199
175,099
eCommerce Solutions
31,995
33,809
3.5
4.9
4.0
8.7
4.6
5.4
5.7
Post & Parcel Germany
169,299
168,084
– 0.7
Group Functions
12,470
13,076
Average for the year 1
Share of part-time employees (%)
502,207
18
528,079
17
Average age of Group employees
(years)
Share of female employees (%)
Unplanned employee turnover (%)
40
34.2
8
40
34.7
12
4.9
5.2
–
–
–
–
1 Including trainees. 2 Prior-period amounts adjusted.
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-
Steering metrics. This enables
ment-relevant indicator,
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
%
Response rate
Approval rate for Employee
Engagement KPI
2020
75
83 1
2021
75
84
1 Prior-year figures adjusted due to changes in the survey.
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
be havioural 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.
Our company’s in-house RainbowNet network pro-
vides space for LGBTQ+ employees to share their experi-
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
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.
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.
Generations Pact Deutsche Post AG
2020
2021
+ / – %
Number of employees with
working time accounts
30,220
31,449
of which in partial retirement
5,997
6,735
Number of civil servants with
working time accounts
of which in partial retirement
4,104
1,234
4,201
1,149
4.1
12.3
2.4
– 6.9
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
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.
Workplace accident statistics
LTIFR
of which Express
Global Forwarding, Freight
Supply Chain
eCommerce Solutions
Post & Parcel Germany
Group Functions
Working days lost per accident
Number of fatalities due to workplace
accidents
of which as a result of traffic accidents
2020
2021
3.9
2.1
0.7
0.5
1.4
11.0
0.4
17.2
5
5
3.9
1.8
0.7
0.5
1.8
11.7
0.2
18.3
5
4
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
56
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
Contributing to economic development and social
progress
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”.
Partnerships and initiatives
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.
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.
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
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 %).
Large numbers of employees participate in the
Go programmes
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.
The GoTeach 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.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
57
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 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
Super visory 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
Corporate governance
Topic
Measure
Target for 2022
Compliance (including anti-corruption
and -bribery matters)
Participation of executives in middle- and
upper-level management in compliance
training
Share of valid training certificates in middle
and upper management 1 is at least 97 %
1 Management indicator starting in 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.
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.
Our Code of Conduct and Anti-Corruption Policy, along
with training on these topics, help employees identify situ-
a tions 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
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
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 Super visory 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
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
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.
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.
Cybersecurity
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.
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
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
cyber security 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
Other business taxes
of which taxes on capital, real estate and
vehicles
other operating taxes
Employer’s social security contributions
Total
2020
754
306
132
174
2,705
3,765
2021
1,323
322
133
189
2,921
4,566
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT NON-FINANCIAL STATEMENT
60
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 rev enue
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.
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.
Taxonomy-eligible share of economic activities, 2021
According to Regulation (EU) 2020 / 852, Article 8
€ m
Revenue 1
of which taxonomy-eligible
taxonomy non-eligible
Capital expenditure 2
of which taxonomy-eligible
taxonomy non-eligible
Operating expenditure 3
of which taxonomy-eligible
taxonomy non-eligible
Amount
Share (%)
81,747
45,653
36,094
6,979
4,467
2,512
2,337
1,441
896
100
56
44
100
64
36
100
62
38
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,
financial statements.
note 10 to the consolidated
3 Investment-related operating expenditure, especially non-capitalised lease
expenses, repair and maintenance costs.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT ExPECTED DEVELOPMENTS , OPPORTUNITIES AND RISKS
61
EXPECTED
DEVELOPMENTS,
OPPORTUNITIES
AND RISKS
Forecast period
The information contained in the report on expected devel-
opments generally refers to the 2022 financial year.
Future economic parameters
Further GDP increase on back of above-average,
medium-term e-commerce growth
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.
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 %).
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.
Highly cyclical international express market
Experience shows that growth in the international express
market, particularly in the B2B segment, is highly depen dent
upon the economic situation. We believe that the steadi ly
growing cross-border e-commerce sector will continue to
drive growth in the international express market in 2022.
Air and ocean freight business dependent upon the
easing of the capacity situation
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.
Of additional significance for the air cargo market is
how quickly passenger flights resume, which is closely
linked to how the pandemic develops.
The acquisition of Hillebrand aligns with our long-term
strategy to create a relevant footprint in the fast-growing
ocean freight market.
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.
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.
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.
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.
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.
Expected developments
Sustained earnings growth
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.
Consolidated EBIT of around €8.0 billion expected
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.
Proposed dividend: €1.80 per share
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.
Group’s credit rating remains the same
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
payment and purchase price payment for Hillebrand. We
expect no change in our current credit rating by rating
agencies as a result.
Liquidity remains very solid
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.
Capital expenditure to total around €4.2 billion
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.
Expected EAC and free cash flow
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 %).
GHG emissions remain at a high level
Beginning in 2022, absolute GHG emissions will become
the new efficiency target which we manage with the KPI
Realised Decarbonisation Effects.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT ExPECTED DEVELOPMENTS , OPPORTUNITIES AND RISKS
63
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.
Continued strong employee engagement
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.
Increase share of female executives
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.
Reduce LTIFR
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.
Conduct compliance-relevant training
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.
Opportunity and risk management
Uniform reporting standard
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.
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”.
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.
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:
1
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
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT ExPECTED DEVELOPMENTS , OPPORTUNITIES AND RISKS
64
Opportunity and risk management process
1 Identify and assess
Assess
Define measures
Analyse
Identify
5 Control
Review results
Review measures
Monitor early warning indicators
Corporate
Audit
reviews
processes
2 Aggregate and report
Review
Supplement and change
Aggregate
Report
3 Overall strategy / risk management /
compliance
Determine
Manage
4 Operating measures
Plan
Implement
Divisions Opportunity and risk-controlling processes Board of Management Corporate Audit
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.
2 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
compil ation 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 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.
3 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.
4 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.
5 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.
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT ExPECTED DEVELOPMENTS , OPPORTUNITIES AND RISKS
65
Accounting-related internal control and risk
management system
Disclosures required under Sections 289(4) and 315(4)
HGB and explanatory report
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.
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.
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.
• 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.
• Both preventive and detective control mechanisms are
used to ensure that the minimum requirements are met
along with all division-specific and local requirements.
• 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
the Group’s standardised process of preparing financial
statements by using a centrally administered financial
statements calendar guarantees a structured and efficient
accounting process.
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 IFRS s)
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,
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):
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66
Classification of risks and opportunities
Probability of occurrence (%)
Planned Group EBIT
Risks
Opportunities
> 50
> 15
to
≤ 50
≤ 15
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.
< – 500
– 500 to – 151
– 150 to 0
0 to 150
151 to 500
> 500
Effects (€ m)
Significance for the Group: Low Medium High
The following assessment scale applies to qualitative risk
(measured on a net basis):
Assessing qualitative risk
Probability of occurrence (%)
Risks
> 50
> 15
to
≤ 50
≤ 15
High
Medium
Low
Effects
Significance for the Group: Low Medium High
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
Deutsche Post DHL Group – 2021 Annual Report
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67
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
Corporate strategy
Legal and compliance-related
Capital expenditure and projects
Operational
Human resources
Information technology
Financial
Tax-related
Real estate
Market- and customer-specific
Regulation
Opportunity / risk
Significance
n. a.
n. a.
n. a.
–
–
–
Risk of operational restrictions due to climate change Medium
n. a.
IT security incident
Currency effects (opportunity and risk)
n. a.
n. a.
Inflation
Availability of sustainable aviation fuels (SAF)
Pricing approval action
Carbon tax
Restriction of GHG emissions
–
Medium
Medium
–
–
Medium
Medium
Medium
Medium
Medium
Medium
Environment, catastrophes and epidemics
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-
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 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.
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 cus tomers.
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.
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
Deutsche Post DHL Group – 2021 Annual Report
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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
the market very closely and take them into account in our
earnings projections.
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.
At present, we do not see any specific legal or compli-
ance-related opportunities or risks of material significance.
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.
We do not currently see any specific opportunities or
risks of material significance in the area of capital expen-
diture and projects.
Operational opportunities and risks
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
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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.
the area of mental health using a new system for assessing
risks associated with mental stresses.
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
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
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70
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.
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.
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.
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
liq uidity 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
note 43 to the consolidated financial statements.
position and in
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.
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Opportunities and risks related to real estate
transactions
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.
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 do not currently see any specific opportunities or
risks of significance in the area of real estate.
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.
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.
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.
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.
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
growing – and this is precisely what we provide with our
broad-based service portfolio.
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.
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72
The current rise in inflation represents a risk of medium
significance.
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.
In addition, no significant opportunities or risks are
seen at present in this risk category.
Opportunities and risks arising from political,
regulatory or legal conditions
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
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.
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.
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.
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
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.
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.
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 PostEntgelt
re gulierungsverordnung (PEntgV – Postal Rate Regula-
tion Act) was not in compliance with the provisions of the
Post gesetz (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
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73
a result, previous regulatory practice can continue by and
large.
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.
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.
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 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 have not identified any other significant opportu-
nities or risks associated with the political, regulatory or
statutory environment.
Opportunities and risks arising from the environment,
catastrophes and epidemics
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.
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.
We have not identified any significant opportunities or
risks in this area other than the effects of the pandemic.
Overall assessment
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 %).
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.
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GOVERNANCE
74
GOVERNANCE
Annual Corporate Governance
Statement
pursuant to Sections 289f and 315d HGB with respect to
Deutsche Post AG and Deutsche Post DHL Group.
Declaration of Conformity with the German Corporate
Governance Code
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
of Deutsche Post AG hereby declare that, since the is suance
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.”
Particularly when a Board of Management member
steps down after a long term of service, the transition of
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.
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.
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.
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
partner of the United Nations, we also support the UN’s
Sustainable Development Goals (SDGs).
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.
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.
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
Governance.
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.
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
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GOVERNANCE
75
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.
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.
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 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.
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 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.
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 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
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
company’s website. There are no
can be accessed at the
contracts between the company and Supervisory Board
members apart from those governing their Supervisory
Board activities and the employment contracts with the
employee representatives.
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
Report of the Supervisory Board. Some of
described in the
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 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-
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GOVERNANCE
76
agement, and all material business planning and related
implementation issues.
after discussing this list of candidates, submits it to the
Supervisory Board.
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),
Finanz markt integritätsstärkungsgesetz (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 suit able
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,
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 Super visory Board with
a good overview of the capabilities and talents avail able
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-
ken gruppe, 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 com pany’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
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
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GOVERNANCE
77
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.
Targets for the composition of the Supervisory Board
(skills profile)
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:
1 When proposing candidates to the Annual General Meet-
ing for election as Supervisory Board members, the
Super visory 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.
2 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.
3 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.
4 The Supervisory Board should collectively have suffi-
cient expertise in the areas of accounting and financial
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
5 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.
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.
Board of Management and Supervisory Board
committees
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
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
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GOVERNANCE
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
Dr Nikolaus von Bomhard (Chair)
Andrea Kocsis (Deputy Chair)
Ingrid Deltenre
Thomas Held
Thorsten Kühn
Dr Jörg Kukies
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
Strategy and Sustainability Committee
Dr Nikolaus von Bomhard (Chair)
Andrea Kocsis (Deputy Chair)
Dr Günther Bräunig
Thomas Held (since 15 September 2021)
Dr Heinrich Hiesinger
Thomas Koczelnik (until 31 August 2021)
Stephan Teuscher
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)
Dr Heinrich Hiesinger
Thorsten Kühn
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
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
Deutsche Post DHL Group – 2021 Annual Report
COMBINED MANAGEMENT REPORT GOVERNANCE
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-
vesti tures 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.
The Personnel Committee discusses human resources
principles for the Group.
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.
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’ curricu lum 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.
Diversity
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
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.
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 ex ecutives 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.
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.
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
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GOVERNANCE
80
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.
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
Super visory 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.
Disclosures required by takeover law
Disclosures required under Sections 289a and 315a HGB
and explanatory report.
Composition of issued capital, voting rights and
transfer of shares
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 en titles
the holder to one vote at the Annual General Meeting
(AGM). There are no shares with special rights conveying
powers of control.
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 accor dance with Section 71b of AktG.
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
Deutsche Post DHL Group – 2021 Annual Report COMBINED MANAGEMENT REPORT GOVERNANCE
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.
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS INCOME STATEMENT – STATEMENT OF C OMPREHENSIVE INCOME
82
CONSOLIDATED FINANCIAL STATEMENTS
INCOME STATEMENT
STATEMENT OF
COMPREHENSIVE INCOME
1 January to 31 December
€ m
Revenue 1
Other operating income
Changes in inventories and work performed and
capitalised
Materials expense 1
Staff costs
Depreciation, amortisation and impairment losses
Other operating expenses
Net income from investments accounted for using
the equity method
Profit from operating activities (EBIT)
Financial income
Finance costs
Foreign currency result
Net finance costs
Profit before income taxes
Income taxes
Consolidated net profit for the period
attributable to Deutsche Post AG shareholders
attributable to non-controlling interests
Basic earnings per share (€)
Diluted earnings per share (€)
1 Prior-period amounts adjusted due to reclassifications,
note 4.
Note
11
12
13
14
15
16
17
25
18
19
20
20
2020
66,716
2,095
292
–33,704
–22,234
–3,830
– 4,454
–34
4,847
220
– 838
– 58
– 676
4,171
– 995
3,176
2,979
197
2.41
2.36
2021
81,747
2,291
348
– 43,897
–23,879
–3,768
– 4,896
32
7,978
191
–746
– 64
– 619
7,359
–1,936
5,423
5,053
370
4.10
4.01
1 January to 31 December
€ m
Consolidated net profit for the period
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
Share of other comprehensive income of investments
accounted for using the equity method, net of tax
Total, net of tax
Items that may be subsequently reclassified to profit or
loss
Hedging reserves
Changes from unrealised gains and losses
Changes from realised gains and losses
Currency translation reserve
Changes from unrealised gains and losses
Changes from realised gains and losses
Income taxes relating to components of other compre-
hensive income
Share of other comprehensive income of investments
accounted for using the equity method, net of tax
Total, net of tax
Other comprehensive income, net of tax
Total comprehensive income
attributable to Deutsche Post AG shareholders
attributable to non-controlling interests
Note
37
19
19
2020
3,176
–1,087
– 5
80
0
–1,012
11
–29
– 954
0
7
– 8
– 973
–1,985
1,191
1,009
182
2021
5,423
2,005
16
–79
0
1,942
27
2
925
0
– 6
6
954
2,896
8,319
7,915
404
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS BALANCE SHEET
83
BALANCE SHEET
€ m
ASSETS
Intangible assets
Property, plant and equipment
Investment property
Investments accounted for using the equity method
Non-current financial assets
Other non-current assets
Deferred tax assets
Non-current assets
Inventories
Current financial assets
Trade receivables
Other current assets
Income tax assets
Cash and cash equivalents
Assets held for sale
Current assets
TOTAL ASSETS
Note
31 Dec. 2020
31 Dec. 2021
Note
31 Dec. 2020
31 Dec. 2021
22
23
24
25
26
27
28
29
26
30
27
31
32
11,658
22,007
12
73
746
160
2,390
37,046
439
1,315
8,985
2,815
209
4,482
16
18,261
55,307
12,076
24,903
48
111
1,190
587
1,943
40,858
593
3,088
11,683
3,588
230
3,531
21
22,734
63,592
EQUITY AND LIABILITIES
Issued capital
Capital reserves
Other reserves
Retained earnings
Equity attributable to Deutsche Post AG shareholders
Non-controlling interests
Equity
Provisions for pensions and similar obligations
Deferred tax liabilities
Other non-current provisions
Non-current financial liabilities
Other non-current liabilities
Non-current provisions and liabilities
Current provisions
Current financial liabilities
Trade payables
Other current liabilities
Income tax liabilities
Liabilities associated with assets held for sale
Current provisions and liabilities
TOTAL EQUITY AND LIABILITIES
33
34
34
35
36
37
28
38
39
40
38
39
40
32
1,239
3,519
–1,666
10,685
13,777
301
14,078
5,835
36
1,790
15,851
328
23,840
1,080
3,247
7,309
5,135
611
7
17,389
55,307
1,224
3,533
–733
15,013
19,037
462
19,499
4,185
137
1,946
16,614
304
23,186
1,208
3,283
9,556
6,138
717
5
20,907
63,592
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS CASH FLOW S TATEMENT
84
CASH FLOW STATEMENT
1 January to 31 December
€ m
Consolidated net profit for the period
Income taxes
Net finance costs
Profit from operating activities (EBIT)
Depreciation, amortisation and impairment losses
Net cost / net income from disposal of non-current assets
Non-cash income and expense
Change in provisions
Change in other non-current assets and liabilities
Dividend received
Income taxes paid
Net cash from operating activities before changes in working capital
Changes in working capital
Inventories
Receivables and other current assets
Liabilities and other items
Net cash from operating activities
Subsidiaries and other business units
Property, plant and equipment and intangible assets
Investments accounted for using the equity method and other investments
Other non-current financial assets
Proceeds from disposal of non-current assets
Subsidiaries and other business units
Property, plant and equipment and intangible assets
Investments accounted for using the equity method and other investments
Other non-current financial assets
Cash paid to acquire non-current assets
Interest received
Current financial assets
Net cash used in investing activities
Note
42
42
2020
3,176
995
676
4,847
3,830
29
132
73
– 56
2
–754
8,103
– 44
–1,305
945
7,699
5
122
0
44
171
0
2021
5,423
1,936
619
7,978
3,768
–20
22
31
–37
4
–1,323
10,423
–137
–3,317
3,024
9,993
13
190
1
156
360
0
–2,922
–3,736
–13
–10
–2,945
67
– 933
–3,640
–2
–29
–3,767
91
–1,508
– 4,824
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS CASH FLOW S TATEMENT
85
Proceeds from issuance of non-current financial liabilities
Repayments of non-current financial liabilities
Change in current financial liabilities
Other financing activities
Proceeds from / cash paid for transactions with non-controlling interests
Dividend paid to Deutsche Post AG shareholders
Dividend paid to non-controlling interest holders
Purchase of treasury shares
Interest paid
Net cash used in financing activities
Net change in cash and cash equivalents
Effect of changes in exchange rates on cash and cash equivalents
Changes in cash and cash equivalents due to changes in consolidated group
Cash and cash equivalents at beginning of reporting period
Cash and cash equivalents at end of reporting period
Note
2020
2,488
–2,488
23
– 88
– 5
–1,422
–157
– 45
– 556
42
–2,250
1,809
–192
3
2,862
4,482
31
2021
131
–2,903
16
111
–16
–1,673
–225
–1,115
– 550
– 6,224
–1,055
104
0
4,482
3,531
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY
86
STATEMENT OF CHANGES IN EQUITY
1 January to 31 December
€ m
Note
Balance at 1 January 2020
Dividend
Transactions with non-controlling interests
Changes in non-controlling interests due to changes in
consolidated group
Issued capital Capital reserves
33
1,236
34
3,482
Capital increase / decrease
3
37
Total comprehensive income
Consolidated net profit for the period
Currency translation differences
Change due to remeasurements of net pension provisions
Other changes
Total
Balance at 31 December 2020
1,239
3,519
Balance at 1 January 2021
Dividend
Transactions with non-controlling interests
Capital increase / decrease
Total comprehensive income
Consolidated net profit for the period
Currency translation differences
Change due to remeasurements of net pension provisions
Other changes
Total
1,239
3,519
–15
14
Balance at 31 December 2021
1,224
3,533
Other reserves
Reserve for
equity
instruments
without
recycling
–22
0
– 5
–27
–27
0
15
–12
Hedging
reserves
– 5
0
–12
–17
–17
0
23
6
Currency
translation
reserve
– 673
–3
– 946
Retained
earnings
34
10,099
–1,422
8
28
2,979
–1,007
0
–1,622
10,685
–1,622
1
894
10,685
–1,673
–1
– 981
5,053
1,930
0
–727
15,013
Equity
attributable
to Deutsche
Post AG
shareholders
Non-controlling
interests
Total equity
35
14,117
–1,422
5
0
68
2,979
– 946
–1,007
–17
1,009
13,777
13,777
–1,673
0
– 982
5,053
894
1,930
38
7,915
19,037
36
275
–165
–11
20
0
197
–15
0
0
182
301
301
–219
–24
0
370
37
–3
0
404
462
14,392
–1,587
– 6
20
68
3,176
– 961
–1,007
–17
1,191
14,078
14,078
–1,892
–24
– 982
5,423
931
1,927
38
8,319
19,499
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE P OST AG
87
NOTES TO THE
CONSOLIDATED
FINANCIAL
STATEMENTS OF
DEUTSCHE POST AG
Company information
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.
Basis of preparation
Basis of accounting
1
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 (IFRS s) 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.
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.
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 IFRS s 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.
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 consolidated financial statements are prepared in
euros (€). Unless otherwise stated, all amounts are given in mil-
lions of euros (€ million, € m).
No separate reporting is provided in cases where effects
cannot be unequivocally attributed to the COVID-19 pandemic.
Consolidated group
2
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.
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.
DHL Sinotrans International Air Courier Ltd. (Sinotrans),
China, is a significant company that has been consolidated de-
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.
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.
The number of companies consolidated with Deutsche
Post AG is shown in the following table:
Consolidated group
Number of fully consolidated companies
(subsidiaries)
German
Foreign
Number of joint operations
German
Foreign
Number of investments accounted for using
the equity method
German
Foreign
2020
2021
81
633
1
0
1
17
83
636
1
0
1
16
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
88
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.
2.1 Joint operations
Joint operations are consolidated in accordance with IFRS 11,
based on the interest held.
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.
Significant transactions
3
The following significant transactions occurred in the 2021 fi-
nancial year:
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.
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.
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-
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.
Adjustment of prior-period amounts
4
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.
Income statement 2020
€ m
Revenue
Materials expense
Amount Adjustment
66,806
–33,794
– 90
90
Adjusted
amount
66,716
–33,704
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
89
5
New developments in international accounting under
IFRS s
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:
Standard
Subject matter and significance
Amendments to IFRS 16: COVID-19-Related Rent Concessions and
COVID-19-Related Rent Concessions beyond 30 June 2021
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.
Amendments to IFRS 4, Insurance Contracts –
Deferral of Effective Date of IFRS 9
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.
Interest Rate Benchmark Reform (IBOR Reform) –
Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
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.
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
Subject matter and significance
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)
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.
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 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.
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)
Annual Improvements to IFRS s (2018 – 2020 Cycle)
(issued on 14 May 2020 and applicable for financial years
beginning on or after 1 January 2022)
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 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.
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)
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.
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New accounting standards not yet adopted by the EU
( endorsement procedure)
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 IFRS s is dependent
on their adoption by the EU.
Standard
Subject matter and significance
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)
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, 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
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.
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 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.
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)
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.
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)
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.
Currency translation
6
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
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.
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.
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91
The exchange rates for the currencies that are significant
for the Group were as follows:
Currency
AUD
CNY
GBP
HKD
INR
JPY
SEK
USD
Country
Australia
China
United Kingdom
Hong Kong
India
Japan
Sweden
United States
Closing rates
Average rates
2020
1 EUR =
1.5878
7.9777
0.8984
9.5118
89.6163
126.4647
10.0295
1.2268
2021
1 EUR =
1.5622
7.2024
0.8401
8.8351
84.2390
130.4249
10.2528
1.1328
2020
1 EUR =
1.6561
7.9017
0.8893
8.8952
84.9217
121.8717
10.4793
1.1468
2021
1 EUR =
1.5781
7.6120
0.8581
9.1859
87.3248
130.3173
10.1551
1.1816
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.
Accounting policies
7
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.
Revenue and expense recognition
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.
The revenue generated by providing other logistics ser-
vices is recognised in the reporting period in which the service
was rendered.
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.
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92
Intangible assets
Intangible assets, which comprise internally generated and pur-
chased intangible assets and purchased goodwill, are measured
at amortised cost.
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.
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:
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.
Property, plant and equipment
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:
Useful lives
Useful lives
Internally developed software
Purchased software
Licences
Customer relationships
Buildings
Technical equipment and machinery
Aircraft
IT equipment
Transport equipment and vehicle fleet
Other operating and office equipment
Years 1
up to 10
up to 5
term of
agreement
up to 20
Years 1
20 to 50
10 to 20
15 to 20
4 to 5
4 to 18
8 to 10
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 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.
If there are indications of impairment, an impairment test must
be carried out; see the Impairment section.
Impairment
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.
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 recover able
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.
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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 CGU s or groups of CGU s
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.
Leases
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.
Lessee
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:
• fixed payments, less lease incentives offered by the lessor;
• variable payments linked to an index or interest rate;
• expected residual payments from residual-value guarantees;
• the exercise price of call options when exercise is estimated
to be sufficiently likely; and
• contractual penalties for the termination of a lease if the
lease term reflects the exercise of a termination option.
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.
Right-of-use assets are measured at cost, which comprises
the following:
• lease liability;
• lease payments made at or prior to delivery, less lease incen-
tives received;
• initial direct costs; and
• restoration obligations.
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.
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
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.
Lessor
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.
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.
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
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
94
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.
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.
Investments accounted for using the equity method
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.
Financial instruments
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,
Measurement
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.
Classification
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.
DEBT INSTRUMENTS AT AMORTISED COST
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 FAIR VALUE THROUGH OTHER
COMPREHENSIVE INCOME (FVOCI)
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, 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.
EQUITY INSTRUMENTS CLASSIFIED AS FVOCI
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.
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Impairment
The Group makes a forward-looking assessment of the expected
credit losses associated with its debt instruments (expected-
credit-loss model).
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 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.
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.
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-
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.
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.
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,
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).
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.
Derivatives and hedges
The Group began to apply the IFRS 9 hedge accounting require-
ments as at 1 January 2020.
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.
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.
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
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96
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).
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.
Recognition and derecognition
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.
Financial liabilities are derecognised if the payment obli-
gations arising from them have expired.
Netting
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.
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.
Investment property
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.
Inventories
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.
Government grants
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.
Assets held for sale and liabilities associated with assets
held for sale
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
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
97
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.
Cash and cash equivalents
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.
equity-settled share-based payment transactions is determined
using internationally recognised valuation techniques.
Cash-settled, share-based payments (stock appreciation
rights, SAR s) 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.
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.
Share-based payments to executives
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
Retirement benefit 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.
THE GROUP’S DEFINED BENEFIT RETIREMENT PLANS
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
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 CONTRIBUTION RETIREMENT PLANS FOR CIVIL
SERVANT EMPLOYEES IN GERMANY
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.
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.
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
98
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.
DEFINED CONTRIBUTION RETIREMENT PLANS FOR THE GROUP’S
HOURLY WORKERS AND SALARIED EMPLOYEES
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.
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.
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
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.
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.
Other provisions
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.
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
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
99
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.
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.
Financial liabilities
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.
Disclosures on financial liabilities under leases can be
found in the
Leases section.
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
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
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
100
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 IFRS s 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
note 45. The outcome of these proceedings
are disclosed in
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
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.
Consolidation methods
9
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.
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.
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.
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
102
Segment reporting disclosures
10 Segment reporting
Segments by division
€ m
Express
Global Forwarding,
Freight 1
Supply Chain 1
eCommerce
Solutions
Post & Parcel
Germany
Group Functions
Consolidation 1, 2
Group 1
1 January to 31 December
2020
2021
2020
2021
2020
2021
External revenue
Internal revenue
Total revenue
18,722
23,704
14,784
21,553
12,457
13,760
413
513
1,029
1,280
92
104
19,135
24,217
15,813
22,833
12,549
13,864
Profit / loss from operating activities (EBIT)
2,751
4,220
592
1,303
424
705
of which net income / loss from investments
accounted for using the equity method
3
–2
–2
–1
1
2
Segment assets
16,263
18,806
8,901
11,536
7,889
8,386
of which investments accounted for using
the equity method
Segment liabilities
Net segment assets
Capex (assets acquired)
Capex (right-of-use assets)
Total capex
Depreciation and amortisation
Impairment losses
Total depreciation, amortisation and
impairment losses
Other non-cash income (–) and expenses (+)
24
6
4,224
5,233
12,039
13,573
19
3,296
5,605
20
5,012
6,524
1,428
974
2,402
1,383
0
1,383
527
1,707
1,246
2,953
1,511
0
1,511
524
104
207
311
246
0
246
90
132
215
347
245
0
245
158
14
2,912
4,977
351
973
15
3,505
4,881
483
667
1,324
1,150
849
71
920
234
756
0
756
245
2020
4,692
137
4,829
158
–35
1,878
0
717
2021
5,792
136
2020
2021
15,983
16,895
472
550
5,928
16,455
17,445
417
1,592
1,747
2020
79
1,531
1,610
– 669
2021
44
1,750
1,794
– 413
2020
–1
2021
2020
2021
–1
66,716
81,747
–3,674
– 4,333
0
0
–3,675
– 4,334
66,716
81,747
–1
–1
4,847
7,978
0
0
0
–2
33
2,212
6,188
6,902
5,267
5,645
0
876
1,161
1,336
141
143
284
164
5
169
60
245
178
423
179
0
179
5
0
2,716
3,472
0
2,631
4,271
17
1,567
3,700
590
14
604
329
0
329
359
883
14
897
334
0
334
302
385
448
833
753
31
784
209
71
1,718
3,927
445
760
1,205
744
0
744
51
1
– 80
–1
– 62
–18
0
0
0
–2
1
–1
–1
–1
0
–72
–1
– 53
–19
0
0
0
–2
1
–1
0
0
–34
32
46,306
53,415
73
111
15,370
18,922
30,936
34,493
2,999
2,759
5,758
3,722
108
3,830
1,478
3,895
3,080
6,975
3,767
1
3,768
1,285
502,207
528,079
Employees 3
99,365
108,896
42,240
42,348
159,288
167,666
29,819
32,099
158,889
164,429
12,607
12,641
1 Prior-year amounts adjusted,
note 4. 2 Including rounding. 3 Average FTEs.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
103
Information about geographical regions
€ m
1 January to 31 December
External revenue
Non-current assets
Capex
1 Prior-year amounts adjusted,
note 4.
Germany
(excluding Germany)
Americas
Asia Pacific
Middle East / Africa
Group 1
Europe 1
2020
19,814
10,093
1,707
2021
21,554
11,043
2,347
2020
18,922
10,526
1,409
2021
23,740
11,308
1,746
2020
12,993
7,782
1,887
2021
17,487
8,943
2,085
2020
12,260
4,817
615
2021
15,736
5,213
606
2020
2,727
599
140
2021
3,230
686
191
2020
66,716
33,817
5,758
2021
81,747
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, amort isation
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.
Deutsche Post DHL Group – 2021 Annual Report
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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
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).
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.
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
Consolidated liabilities
2020
55,307
2021
63,592
–14,078
–19,499
41,229
44,093
Non-current provisions and liabilities
–22,237
–21,513
Current provisions and liabilities
Segment liabilities
of which Group Functions
total for reported segments
Consolidation
–3,622
15,370
1,567
13,865
– 62
–3,658
18,922
1,718
17,257
– 53
Reconciliation to segment assets
€ m
Total equity and liabilities
Investment property
Non-current financial assets
Other non-current assets
Deferred tax assets
Income tax assets
Receivables and other current assets
Current financial assets
Cash and cash equivalents
Segment assets
of which Group Functions
total for reported segments
Consolidation 1
1 Including rounding.
2020
55,307
–12
– 579
–20
–2,390
–209
–10
–1,299
– 4,482
46,306
5,267
41,119
– 80
2021
63,592
– 48
–1,006
– 421
–1,943
–230
– 9
–2,989
–3,531
53,415
5,645
47,842
–72
Deutsche Post DHL Group – 2021 Annual Report
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105
The following table shows the reconciliation of the segment
amounts to the income statement:
Reconciliation to the income statement
€ m
Total for
reported segments 1
Group Functions
Group / Consolidation 1, 2
Consolidated amount 1
Reconciliation to
Income statement disclosures
11 Revenue by business unit
2020
–1
–3,674
–3,675
–1,525
1
3,788
9
1
1,399
1,490
1
–1
0
–1
2020
66,638
2,143
68,781
1,983
2021
81,704
2,583
84,287
2,236
248
214
–36,297
– 46,955
–21,175
–22,778
–3,047
– 4,943
–3,025
– 5,586
2020
79
1,531
1,610
1,637
43
–1,195
–1,068
–784
– 910
2021
44
1,750
1,794
1,607
134
–1,325
–1,112
–744
– 800
–33
–1
–2
33
5,517
8,392
– 669
– 413
External revenue
Internal revenue
Total revenue
Other operating income
Changes in inventories and work
performed and capitalised
Materials expense
Staff costs
Depreciation, amortisation and
impairment losses
Other operating expenses
Net income / loss from investments
accounted for using the equity method
Profit / loss from operating activities
(EBIT)
Net finance costs
Profit before income taxes
Income taxes
Consolidated net profit for the period
of which attributable to
Deutsche Post AG shareholders
Non-controlling interests
1 Prior-year amounts adjusted.
2 Including rounding.
€ m
Express
Global Forwarding, Freight
Global Forwarding 1
Freight
Supply Chain 1
eCommerce Solutions
Post & Parcel Germany
2021
–1
– 4,333
– 4,334
–1,552
2020
66,716
0
66,716
2,095
2021
81,747
0
81,747
2,291
0
292
348
Post Germany
4,383
–33,704
– 43,897
Parcel Germany
11
–22,234
–23,879
International
2020
18,722
14,784
11,368
3,416
12,457
4,692
15,983
7,986
5,885
1,944
168
78
2021
23,704
21,553
17,795
3,758
13,760
5,792
16,895
7,952
6,756
2,036
151
43
1
–3,830
– 4,454
–3,768
– 4,896
Other
Group Functions / Consolidation
Total revenue
66,716
81,747
–34
32
1 Prior-period amounts adjusted,
note 4.
4,847
– 676
4,171
– 995
3,176
2,979
197
7,978
– 619
7,359
–1,936
5,423
5,053
370
The total amount includes revenue from performance obliga-
tions in the amount of €45 million (previous year: €12 million)
settled in prior periods.
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.
The allocation of revenue to geographical regions is pre-
sented in the segment reporting.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
106
The increase in income from the reversal of provisions relates,
among other things, to the early retirement programme, and
insurance-related items.
14 Materials expense
€ m
2020
2021
Income from operating leases was attributable mainly to
2020
2021
12 Other operating income
€ m
Income from currency translation
Insurance income
Income from the reversal of provisions
Income from the remeasurement of liabilities
Operating lease income
Income from fees and reimbursements
Subsidies
Income from the disposal of assets
Sublease income
Income from prior-period billings
Income from loss compensation
Income from the derecognition of liabilities
Recoveries on receivables previously
written off
Reversals of impairment losses on
receivables and other assets
Income from derivatives
294
268
191
160
110
110
177
49
65
53
36
25
18
3
46
336
301
274
195
130
112
96
85
74
61
30
25
18
16
6
leasing of the aircraft fleet’s cargo space.
In the previous year, greater use was made of government
subsidies for labour costs in the course of lockdown measures
in the United Kingdom.
Miscellaneous other operating income includes a large
number of smaller individual items.
13 Changes in inventories and work performed and
capitalised
€ m
Changes in inventories –
expense (–) / income (+)
Work performed and capitalised
Total
2020
2021
74
218
292
66
282
348
Miscellaneous
Total
490
2,095
532
2,291
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.
Cost of raw materials, consumables and
supplies, and of goods purchased and held
for resale
Aircraft fuel
Fuel
Packaging material
Goods purchased and held for resale
Spare parts and repair materials
Office supplies
Other expenses
Cost of purchased services
Transport costs 1
Cost of temporary staff and services
Maintenance costs
IT services
Lease expenses
Short-term leases
Leases (incidental expenses)
Low-value asset leases
Variable lease payments
Commissions paid
Other purchased services
Materials expense
1 Prior-year figures adjusted,
note 4.
1,012
1,833
664
345
469
132
101
365
762
401
302
150
96
250
3,088
3,794
24,173
32,434
2,106
1,470
633
490
101
60
17
608
958
30,616
33,704
2,559
1,586
773
506
110
74
21
637
1,403
40,103
43,897
Deutsche Post DHL Group – 2021 Annual Report
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107
Social security contributions relate, in particular, to statu-
16 Depreciation, amortisation and impairment losses
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
€ m
Wages, salaries and compensation
Social security contributions
Retirement benefit expenses
Expenses for other employee benefits
tory social security contributions paid by employers.
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.
The average number of Group employees in the reporting
period, broken down by employee group, was as follows:
2020
17,701
2,705
944
884
2021
18,987
2,921
1,031
940
Employees
Headcount (annual average)
Hourly workers and salaried employees
Staff costs
22,234
23,879
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).
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).
Civil servants
Trainees
Total
Full-time equivalents 1
As at 31 December
Average for the year
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).
€ 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)
Land and buildings
Technical equipment and machinery
Transport equipment
Aircraft
IT equipment
Operating and office equipment
Depreciation of and impairment losses on
right-of-use assets,
of which impairment losses: 0
(previous year: 73)
Land and buildings
Technical equipment and machinery
Transport equipment
2020
2021
518,277
547,889
23,611
5,240
21,203
4,955
547,128
574,047
526,896
502,207
548,042
528,079
Aircraft
IT equipment
Investment property
Impairment of goodwill
Depreciation, amortisation and
impairment losses
2020
2021
203
201
224
381
289
384
149
104
235
401
311
459
147
95
1,531
1,648
1,494
1,347
45
229
310
1
4
43
223
296
1
9
2,083
13
1,919
0
3,830
3,768
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.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
108
17 Other operating expenses
€ m
Cost of purchased cleaning and security
services
Warranty expenses, refunds and
compensation payments
Expenses for advertising and public relations
Other business taxes
Currency translation expenses
Office supplies
Travel and training costs
Telecommunication costs
Write-downs and remeasurements
Insurance costs
Customs clearance-related charges
Services provided by Bundesanstalt für Post
und Telekommunikation (German federal
post and telecommunications agency)
Consulting costs (including tax advice)
Entertainment and corporate hospitality
expenses
Monetary transaction costs
Voluntary social benefits
Losses on disposal of assets
Contributions and fees
Commissions paid
Legal costs
Audit costs
Donations
Expenses from prior-period billings
Expenses from derivatives
Miscellaneous
Total
475
515
331
306
308
208
225
211
189
186
165
162
103
102
82
78
102
65
66
63
32
27
19
8
568
482
433
322
321
247
244
225
218
204
196
166
139
126
107
89
86
79
76
75
33
28
16
5
426
4,454
411
4,896
The increase in the cost of purchased cleaning and security
services resulted from the stepped-up safety measures due to
the COVID-19 pandemic.
2020
2021
Expenses for advertising and public relations rose for rea-
sons including the global brand campaign.
Of interest income, €16 million relates to income from finance
lease receivables.
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).
Taxes other than income taxes are either recognised in the
related expense item or, if no specific allocation is possible, in
other operating expenses.
Interest income and interest expenses result from financial
assets and liabilities that were not measured at fair value through
profit or loss.
Miscellaneous other operating expenses include a large
number of smaller individual items.
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.
18 Net finance costs
€ m
Financial income
Interest income
Gains on changes in fair value of financial
assets
Other financial income
Finance costs
Interest expense from unwinding discounts
on provisions
Interest expense on leases
Other interest expenses
Losses on changes in fair value of financial
assets
Other finance costs
Foreign currency result
Net finance costs
19
Income taxes
2020
2021
€ m
74
127
19
220
– 89
–394
–151
–145
– 59
– 838
– 58
– 676
101
80
10
191
– 46
–383
–142
–107
– 68
–746
– 64
– 619
Current income tax expense
Current recoverable income tax
Deferred tax income from temporary
differences
Deferred tax expense from tax loss
carryforwards
Income taxes
2020
– 870
12
– 858
2021
–1,459
47
–1,412
28
13
–165
–137
– 995
– 537
– 524
–1,936
The reconciliation to the effective income tax expense based on
consolidated net profit before income taxes and the expected
income tax expense is as follows:
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
109
Reconciliation
€ m
Profit before income taxes
Expected income taxes
Deferred tax assets not recognised for initial
differences
Deferred tax assets of German Group
companies not recognised for tax loss
carryforwards and temporary differences
Deferred tax assets of foreign Group
companies not recognised for tax loss
carryforwards and temporary differences
Effect from previous years on current taxes
Tax-exempt income and non-deductible
expenses
Differences in tax rates at foreign companies
Income taxes
2020
4,171
2021
7,359
–1,272
–2,244
9
45
253
–16
–115
101
– 995
1
19
241
–13
–194
254
–1,936
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).
The effects from deferred tax assets of German Group
companies not recognised for tax loss carryforwards and
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.
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.
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.
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.
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).
The following table presents the tax effects on the compo-
nents of other comprehensive income:
Other comprehensive income
€ m
Before
taxes
Income
taxes
After
taxes
2021
Change due to
remeasurements of net
pension provisions
Hedging reserves
Reserve for equity instruments
without recycling
Currency translation reserve
Share of other comprehensive
income of investments
accounted for using the equity
method
2,005
29
16
925
6
Other comprehensive income
2,981
2020
Change due to
remeasurements of net
pension provisions
Hedging reserves
Reserve for equity instruments
without recycling
Currency translation reserve
Share of other comprehensive
income of investments
accounted for using the equity
method
–1,087
–18
– 5
– 954
– 8
Other comprehensive income
–2,072
–78
– 6
–1
0
0
– 85
1,927
23
15
925
6
2,896
80
–1,007
6
0
0
–12
– 5
– 954
1
87
–7
–1,985
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
110
20 Earnings per share
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
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).
Basic earnings per share
Consolidated net profit for the period attributable to Deutsche Post AG shareholders
€ m
2020
2,979
2021
5,053
Weighted average number of shares outstanding
Basic earnings per share
number
1,236,900,096
1,232,451,264
€
2.41
4.10
Diluted earnings per share
Consolidated net profit for the period attributable to Deutsche Post AG shareholders
Plus interest expense on the convertible bond
Less income taxes
Adjusted consolidated net profit for the period attributable to Deutsche Post AG shareholders
Weighted average number of shares outstanding
Potentially dilutive shares
Weighted average number of shares for diluted earnings
Diluted earnings per share
€ m
€ m
€ m
€ m
2020
2,979
8
1
2021
5,053
8
1
2,986
5,060
number
1,236,900,096
1,232,451,264
number
28,591,660
29,645,735
number
1,265,491,756
1,262,096,999
€
2.36
4.01
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
Deutsche Post AG shareholders was increased by the amounts
spent for the convertible bond.
Diluted earnings per share in the reporting period were
€4.01 (previous year: €2.36).
21 Dividend per share
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.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
111
Balance sheet disclosures
22
Intangible assets
22.1 Overview
€ m
Cost
Balance as at 1 January 2020
Additions from business combinations
Additions
Reclassifications
Disposals
Currency translation differences
Balance as at 31 December 2020 / 1 January 2021
Additions
Reclassifications
Disposals
Currency translation differences
Balance as at 31 December 2021
Depreciation, amortisation and impairment losses
Balance as at 1 January 2020
Depreciation, amortisation and impairment losses
Impairment losses
Reclassifications
Disposals
Currency translation differences
Balance as at 31 December 2020 / 1 January 2021
Depreciation, amortisation and impairment losses
Reclassifications
Disposals
Currency translation differences
Balance as at 31 December 2021
Carrying amount as at 31 December 2021
Carrying amount as at 31 December 2020
Internally generated
intangible assets
Purchased brand
names
Purchased customer
lists
Other purchased
intangible assets
1,291
0
39
58
–111
– 4
1,273
43
66
–73
4
1,313
1,133
67
1
2
–102
–3
1,098
65
–1
– 59
2
1,105
208
175
476
0
0
0
0
–26
450
0
0
0
30
480
445
0
0
0
0
–23
422
0
0
0
28
450
30
28
45
0
0
0
0
– 4
41
0
0
0
2
43
23
4
0
0
0
–1
26
3
0
0
2
31
12
15
1,587
1
62
76
–125
–36
1,565
60
81
–139
33
1,600
1,253
129
2
–2
–108
–27
1,247
133
1
–120
27
1,288
312
318
Advance payments and
intangible assets under
development
106
0
132
–101
–12
0
125
152
–110
– 6
1
162
0
0
0
1
0
0
1
0
0
0
0
1
161
124
Goodwill
12,398
0
0
0
0
–358
12,040
0
0
–14
392
12,418
1,062
0
13
0
0
–33
1,042
0
0
–13
36
1,065
11,353
10,998
Total
15,903
1
233
33
–248
– 428
15,494
255
37
–232
462
16,016
3,916
200
16
1
–210
– 87
3,836
201
0
–192
95
3,940
12,076
11,658
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
112
Goodwill impairment in the previous year related exclusively to
StreetScooter GmbH,
note 16.
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.
22.2 Allocation of goodwill to CGU s
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.
€ m
Express
Global Forwarding, Freight
Global Forwarding
Freight
Supply Chain
eCommerce Solutions
Post & Parcel Germany
31 Dec.
2020
3,895
31 Dec.
2021
3,910
3,858
278
1,887
160
920
4,072
279
1,977
159
956
Total goodwill
10,998
11,353
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 CGU s 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.
The pre-tax cost of capital is based on the weighted aver-
age cost of capital. The (pre-tax) discount rates for the material
CGU s and the growth rates assumed in each case for the perpet-
ual annuity are shown in the following table:
%
Express
Global
Forwarding,
Freight
Global
Forwarding
Freight
Supply Chain
eCommerce
Solutions
Post & Parcel
Germany
Discount rates
Growth rates
2020
5.8
2021
6.0
2020
2.0
2021
2.0
6.5
6.7
6.5
6.6
6.1
7.0
7.2
7.0
7.2
6.9
2.5
2.0
2.5
1.5
0.5
2.5
2.0
2.5
1.5
0.5
On the basis of these assumptions and the impairment tests
carried out for the individual CGU s to which goodwill was allo-
cated, it was established that the recoverable amounts for all
CGU s exceed their carrying amounts. No impairment losses
were recognised on goodwill in any of the CGU s as at 31 Decem-
ber 2021.
When performing the impairment test, Deutsche Post DHL
Group conducted sensitivity analyses for the significant CGU s
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.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
113
23 Property, plant and equipment
Overview of property, plant and equipment,
including right-of-use assets
€ m
Cost
Balance as at 1 January 2020
Additions from business combinations 1
Additions
Reclassifications
Disposals
Currency translation differences
Balance as at 31 December 2020 / 1 January 2021
Additions from business combinations 2
Additions
Reclassifications
Disposals
Currency translation differences
Balance as at 31 December 2021
Depreciation, amortisation and impairment losses
Balance as at 1 January 2020
Additions from business combinations 1
Depreciation, amortisation and impairment losses
Impairment losses
Reclassifications
Reversals of impairment losses
Disposals
Currency translation differences
Balance as at 31 December 2020 / 1 January 2021
Additions from business combinations 2
Depreciation, amortisation and impairment losses
Impairment losses
Reclassifications
Reversals of impairment losses
Disposals
Currency translation differences
Balance as at 31 December 2021
Carrying amount as at 31 December 2021
Carrying amount as at 31 December 2020
Land and buildings
Technical equipment
and machinery
IT systems, operating
and office equipment
Aircraft
Transport equipment
Advance payments
and assets under
development
15,516
16
2,171
203
–731
– 503
16,672
0
2,428
360
–1,457
330
18,333
4,821
12
1,652
66
1
–2
– 466
–188
5,896
0
1,582
0
1
–10
–757
142
6,854
11,479
10,776
6,385
9
249
336
–217
–157
6,605
0
240
520
–198
124
7,291
3,652
7
418
7
1
0
–155
– 85
3,845
0
444
0
–15
0
–171
72
4,175
3,116
2,760
2,529
2
136
114
–192
– 94
2,495
0
125
129
–335
61
2,475
1,836
1
252
2
–2
0
–180
– 64
1,845
0
243
0
8
0
–325
45
1,816
659
650
5,312
83
714
925
–383
–299
6,352
35
719
881
–187
343
8,143
1,927
43
694
0
0
0
–328
– 89
2,247
8
755
0
0
0
–156
98
2,952
5,191
4,105
3,793
1
672
35
–341
– 89
4,071
5
738
101
–355
64
4,624
1,755
1
502
17
– 4
0
–273
– 42
1,956
5
534
0
12
0
–306
35
2,236
2,388
2,115
1,759
11
1,583
–1,647
–30
–73
1,603
0
2,470
–2,025
–27
49
2,070
0
0
0
0
2
0
0
0
2
0
0
0
–2
0
0
0
0
2,070
1,601
Total
35,294
122
5,525
–34
–1,894
–1,215
37,798
40
6,720
–34
–2,559
971
42,936
13,991
64
3,518
92
–2
–2
–1,402
– 468
15,791
13
3,558
0
4
–10
–1,715
392
18,033
24,903
22,007
1 Change in the method of consolidation. 2 Proportionate change from joint operations.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
114
Disclosures on right-of-use assets are contained in
note 41.
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.
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.
Investment property
24
The investment property largely comprises leased property en-
cumbered by heritable building rights and developed and un-
developed land.
€ m
Cost
Balance as at 1 January
Additions
Reclassifications
Disposals
Currency translation differences
Balance as at 31 December
Depreciation, amortisation and impairment
losses
Balance as at 1 January
Depreciation, amortisation and impairment
losses
Disposals
Reclassifications
Currency translation differences
Balance as at 31 December
Carrying amount as at 31 December
of which right-of-use assets
€ m
Balance as at 1 January
Additions
Disposals
Impairment losses
Changes in Group’s share of equity
Changes recognised in profit or loss
Profit distributions
Changes recognised in other
comprehensive income
Balance as at 31 December
Aggregate financial data
Profit after income taxes
Other comprehensive income
Total comprehensive income
2020
2021
28
4
39
–1
1
71
16
9
–1
–1
0
23
48
41
38
0
– 6
–1
–3
28
13
4
–1
1
–1
16
12
7
2020
108
13
–19
–30
– 5
–2
–7
58
– 5
–7
–12
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.
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.
Associates
Joint ventures
2021
58
2
0
–3
34
–2
6
95
–11
6
– 5
2020
15
2021
15
0
0
0
1
0
–1
15
1
–1
0
0
0
0
1
0
0
16
1
0
1
2020
123
13
–19
–30
– 4
–2
– 8
73
– 4
– 8
–12
Total
2021
73
2
0
–3
35
–2
6
111
–10
6
– 4
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
115
26 Financial assets
€ m
Assets measured at cost
Assets at fair value through other
comprehensive income
Assets at fair value through profit or loss
Financial assets
Non-current
2021
834
46
310
1,190
2020
466
29
251
746
Current
2021
1,257
0
1,831
3,088
2020
81
0
1,234
1,315
2020
547
29
1,485
2,061
Total
2021
2,091
46
2,141
4,278
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.
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-
note 7. The notional amounts of the outstanding lease
leases,
payments have the following maturity dates:
Maturities of undiscounted lease payments 2021
€ m
Up to 1 year
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
Total undiscounted lease payments
Interest component included over entire term
Receivable from leasing
of which current
non-current
160
139
108
70
46
100
623
– 44
579
160
419
27 Other assets
€ m
Prepaid expenses
Tax receivables
Pension assets, non-current only
Income from cost absorption
Contract assets
Other assets from insurance contracts
Creditors with debit balances
Receivables from private postal agencies
Recoverable start-up costs, non-current only
Receivables from insurance business
Receivables from loss compensation
(recourse claims)
Receivables from employees
Receivables from cash on delivery
Miscellaneous,
of which non-current: 79 (previous year: 74)
Other assets
of which current
non-current
2020
937
551
20
111
182
115
66
37
66
50
54
27
3
756
2,975
2,815
160
2021
1,593
632
421
208
113
97
89
88
87
69
59
34
5
680
4,175
3,588
587
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.
Pension assets increased, primarily because of actuarial
gains,
note 37.
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.
Miscellaneous other assets include a large number of in-
dividual items.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
116
28 Deferred taxes
Breakdown by balance sheet item and maturity
€ m
The increase in finished goods and work in progress is attrib-
utable mainly to real estate development projects. Adequate
valuation allowances were recognised.
2020
2021
Deferred tax
assets
Deferred tax
liabilities
Deferred tax
assets
Deferred tax
liabilities
30 Trade receivables
For information on impairment losses, default risk and maturity
structures, see
note 43.
Intangible assets
Property, plant and equipment
Non-current financial assets
Other non-current assets
Other current assets
Provisions
Financial liabilities
Other liabilities
Tax loss carryforwards
Gross amount
of which current
non-current
Netting
Carrying amount
22
416
2
14
65
589
1,632
198
1,752
4,690
954
3,736
–2,300
2,390
111
1,995
66
26
58
44
26
10
2,336
242
2,094
–2,300
36
13
479
3
16
67
640
1,700
244
1,267
4,429
1,029
3,400
–2,486
1,943
145
2,102
34
44
102
159
24
13
2,623
231
2,392
–2,486
137
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).
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.
The tax loss carryforwards from the Americas region for
which no deferred tax assets were recognised do not expire prior
to 2029.
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.
29
Inventories
€ m
Raw materials, consumables and supplies
Work in progress
Finished goods and goods purchased and
held for resale
Advance payments
Inventories
2020
202
196
30
11
439
2021
222
254
106
11
593
€ m
Trade receivables
Deferred revenue
Trade receivables
31 Cash and cash equivalents
€ m
Cash equivalents
Bank balances / cash in transit
Cash
Other cash and cash equivalents
2020
8,222
763
8,985
2021
10,607
1,076
11,683
2020
2,787
1,635
17
43
2021
1,238
2,231
11
51
Cash and cash equivalents
4,482
3,531
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.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
117
Changes in issued capital and treasury shares
€ m
2020
2021
Issued capital
Balance as at 1 January
Addition due to contingent capital
increase (Performance Share Plan)
Balance as at 31 December
Treasury shares
Balance as at 1 January
Purchase of treasury shares
Issue / sale of treasury shares
Balance as at 31 December
1,237
2
1,239
–1
–2
3
0
1,239
0
1,239
0
–20
5
–15
Total as at 31 December
1,239
1,224
32 Assets held for sale and liabilities associated with
assets held for sale
The amounts reported in this item relate mainly to the following
items:
€ m
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
Assets held for sale and liabilities associated with assets held for sale
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.
Deutsche Post DHL Group intends to sell Greenplan GmbH,
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.
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.
Assets
2021
18
2
0
0
1
21
Liabilities
2020
2021
0
0
0
7
0
7
4
1
0
0
0
5
2020
0
0
9
7
0
16
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.
Issued capital and purchase of treasury shares
33
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.
33.1 Changes in issued capital
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.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
118
33.2 Authorised and contingent capital
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.
Authorised and contingent capital as at 31 December 2021
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)
Amount
€ m
130
Purpose
Increase in share capital against
cash / non-cash contributions
(authorisation until 5 May 2026)
75
Issue of options / conversion rights
(authorisation until 7 May 2018)
12
12
Issue of Performance Share Units to
executives
(authorisation until 8 October 2020)
Issue of Performance Share Units to
executives
(authorisation until 26 August 2023)
40
Issue of options / conversion rights
(authorisation until 26 August 2023)
Authorised Capital 2021
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.
Contingent Capital 2017
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 2018 / 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 2020 / 1
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 / 2
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.
33.3 Authorisation to acquire treasury shares
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.
Share buy-back programme
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.
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.
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119
A total of 2.5 million treasury shares were issued to the
34 Reserves
executives concerned to settle the 2020 PSP tranche.
As at 31 December 2021, Deutsche Post AG held 15,247,431
34.1 Capital reserves
treasury shares (previous year: 0 treasury shares).
33.4 Disclosures on 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.
Corporate capital
€ m
Financial liabilities
Less operating financial liabilities 1
Less cash and cash equivalents
Less current financial assets
Less non-current derivative financial
instruments
Net debt
Plus total equity
Total capital
Net gearing ratio (%)
1 Relates to e. g. liabilities from overpayments.
2020
19,098
–372
– 4,482
–1,315
–1
12,928
14,078
27,006
47.9
2021
19,897
– 506
–3,531
–3,088
0
12,772
19,499
32,271
39.6
€ m
Balance as at 1 January
Share Matching Scheme
Addition to obligation
Utilisation of obligation
Total for Share Matching Scheme
Performance Share Plan
Addition to obligation
Utilisation of obligation
Total for Performance Share Plan
Employee Share Plan
Addition to obligation
Total for Employee Share Plan
Issue of treasury shares
Differences between purchase and issue
prices of treasury shares
2020
3,482
2021
3,519
87
–77
10
26
–26
0
0
0
24
3
104
– 99
5
25
–28
–3
3
3
0
9
Balance as at 31 December
3,519
3,533
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).
Dividends
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.
Total
dividend
€ m
Dividend
per share
€
34.2 Retained earnings
In addition to the items evident in the statement of changes in
equity, retained earnings also include changes due to capital
increases / decreases:
Dividend distributed in the 2021 financial
year for the year 2020
Dividend distributed in the 2020 financial
year for the year 2019
1,673
1,422
1.35
1.15
Capital increase / decrease
€ m
Share buy-back
Share Matching Scheme
Performance Share Plan
Differences between purchase and issue
prices of treasury shares
Other
Total
2020
0
31
0
–3
0
28
2021
– 982
–19
26
– 9
3
– 981
36 Non-controlling interests
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.
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120
The following table shows the companies to which the
Financial data for material non-controlling interests
non-controlling interests relate:
€ m
€ m
DHL Sinotrans International Air Courier Ltd.,
China
Blue Dart Express Limited, India
PT. Birotika Semesta, Indonesia
DHL Aero Expreso S. A., Panama
Other companies
Non-controlling interests
2020
2021
196
345
15
14
18
58
25
23
22
47
301
462
Balance sheet
ASSETS
Non-current assets
Current assets
Total ASSETS
EQUITY AND LIABILITIES
Non-current provisions and liabilities
Current provisions and liabilities
Total EQUITY AND LIABILITIES
There are material non-controlling interests in the following two
companies:
Net assets
Non-controlling interests
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:
Income statement
Revenue
Profit before income taxes
Income taxes
Profit after income taxes
Other comprehensive income
Total comprehensive income
attributable to non-controlling interests
Dividend distributed to non-controlling interests
Consolidated net profit attributable to non-controlling interests
Cash flow statement
Net cash from operating activities
Net cash used in / from investing activities
Net cash used in financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at 1 January
Effect of changes in exchange rates on cash and cash equivalents
Cash and cash equivalents as at 31 December
Sinotrans
Blue Dart
2020
2021
2020
2021
124
607
731
24
314
338
393
196
149
966
1,115
35
391
426
689
345
2,179
2,720
408
103
305
–14
291
146
119
153
390
–14
–254
122
262
–14
370
753
189
564
58
622
311
162
282
610
17
–343
284
370
57
711
94
109
203
32
89
121
82
15
355
3
1
2
–7
– 5
–1
0
0
17
–10
– 5
2
8
–1
9
122
125
247
28
100
128
119
25
482
49
13
36
4
40
10
1
9
84
– 46
–34
4
9
2
15
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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
Transactions with non-controlling interests
Total comprehensive income
Changes from unrealised gains and losses
Changes from realised gains and losses
Currency translation reserve as at
31 December
2020
–16
3
–15
0
–28
2021
–28
–1
37
0
8
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.
37.1 Plan features
Germany
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-
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.
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.
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.
United Kingdom
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).
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.
Other
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
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122
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.
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.
37.2 Financial performance of the plans and determination
of balance sheet items
The present value of defined benefit obligations, the fair value
of plan assets and net pension provisions changed as follows:
€ m
Balance as at 1 January
Current service cost, excluding employee contributions
Past service cost
Settlement gains (–) / losses (+)
Other administration costs in accordance with IAS 19.130
Service cost 1
Interest cost on defined benefit obligations
Interest income on plan assets
Net interest cost
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
Return on plan assets excluding interest income
Present value of
defined benefit
obligations
Fair value of plan assets
Net pension provisions
2020
18,618
2021
19,664
2020
13,758
2021
13,849
227
–19
–2
–
206
285
–
285
491
–10
1,708
– 65
–
274
– 6
– 4
–
264
192
–
192
456
–180
–1,209
112
–
–
36
–733
– 68
0
–2
–311
–
28
–729
– 55
–13
0
429
–
–
–
–10
–10
–
213
213
203
–
–
–
546
546
68
19
–358
– 67
–2
– 5
–313
–
–
–
–10
–10
–
140
140
130
–
–
–
728
728
48
28
– 417
– 54
1
0
426
2020
4,860
227
–19
–2
10
216
285
–213
72
288
–10
1,708
– 65
– 546
2021
5,815
274
– 6
– 4
10
274
192
–140
52
326
–180
–1,209
112
–728
1,087
–2,005
– 68
17
–375
–1
2
3
2
– 48
0
–312
–1
–14
0
3
19,664
18,503
13,849
14,739
5,815
3,764
Remeasurements recognised in the statement of comprehensive
income
1,633
–1,277
Employer contributions
Employee contributions
Benefit payments
Settlement payments
Transfers
Acquisitions / divestitures
Currency translation effects
Balance as at 31 December
1 Including other administration costs in accordance with IAS 19.130 from plan assets.
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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.
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:
Germany
UK
Other
Total
9,927
– 6,229
3,698
0
3,698
11,134
– 5,901
5,233
0
5,233
5,497
– 5,895
–398
400
2
5,450
– 5,437
13
13
26
3,079
–2,615
464
21
485
3,080
–2,511
569
7
576
18,503
–14,739
3,764
421
4,185
19,664
–13,849
5,815
20
5,835
€ m
31 December 2021
Present value of defined benefit obligations
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.
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124
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
Germany
1.50
2.50
1.75
0.80
2.50
1.75
UK
1.90
n. a.
3.15
1.20
n. a.
2.60
Other
1.61
2.39
1.67
1.06
2.36
1.02
Total
1.64
2.48
2.65
0.95
2.47
2.11
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.
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 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.
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If one of the significant financial assumptions were to
change, the present value of the defined benefit obligations
would change 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
Change in assumption
percentage points
Change in present value
of defined benefit obligations
%
Germany
UK
Other
Total
1.00
–1.00
0.50
– 0.50
0.50
– 0.50
1.00
–1.00
0.50
– 0.50
0.50
– 0.50
–12.50
16.00
0.14
– 0.13
0.34
– 0.31
–13.41
17.38
0.15
– 0.14
0.36
– 0.33
–13.76
17.53
n. a.
n. a.
5.32
– 5.12
–14.75
19.08
n. a.
n. a.
6.01
– 5.64
–15.25
20.45
0.99
– 0.89
7.29
– 5.54
–15.36
20.66
1.05
– 0.94
7.13
– 5.33
–13.33
17.18
0.24
– 0.22
2.96
–2.60
–14.08
18.36
0.25
– 0.23
2.97
–2.57
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.
sumptions; rather, it supposes that the assumptions change in
isolation. This would be unusual in practice, since assumptions
are often correlated.
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 %).
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-
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.
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126
37.4 Additional information on the fair value of plan assets
The fair value of the plan assets can be disaggregated as follows:
€ m
31 December 2021
Equities
Fixed income securities
Real estate
Alternatives 1
Insurances
Cash
Other
Fair value of plan assets
31 December 2020
Equities
Fixed income securities
Real estate
Alternatives 1
Insurances
Cash
Other
Germany
UK
Other
Total
1,153
2,080
1,785
434
519
230
28
564
4,554
309
277
0
151
40
783
1,237
357
11
158
25
44
2,500
7,871
2,451
722
677
406
112
6,229
5,895
2,615
14,739
617
1,755
1,670
356
529
945
29
513
4,243
270
271
0
140
0
751
1,152
343
54
155
17
39
1,881
7,150
2,283
681
684
1,102
68
13,849
Fair value of plan assets
5,901
5,437
2,511
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.
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.
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.
Sustainable approaches based mainly on an integration
of ESG criteria are increasingly being used when investing plan
assets.
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.
INFLATION 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.
INVESTMENT RISK
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.
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CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
127
LONGEVITY RISK
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
Kingdom, for example, include an allowance for expected future
increases in life expectancy.
38 Other provisions
Other provisions break down into the following main types of
provision:
€ m
Other employee benefits
Technical reserves (insurance)
Aircraft maintenance
Tax provisions
Restructuring provisions
Miscellaneous provisions
Other provisions
38.1 Changes in other provisions
€ m
Balance as at 1 January 2021
Changes in consolidated group
Utilisation
Currency translation differences
Reversal
Unwinding of discount / changes in discount rate
Reclassification
Addition
Balance as at 31 December 2021
Non-current
Current
2020
738
482
211
–
31
328
1,790
2021
799
517
209
–
25
396
1,946
2020
2021
2020
181
230
72
204
41
352
160
250
98
275
50
375
919
712
283
204
72
680
1,080
1,208
2,870
3,154
Total
2021
959
767
307
275
75
771
Other employee
benefits
Restructuring
provisions
Technical
reserves
(insurance)
Aircraft
maintenance
Tax provisions
Miscellaneous
provisions
919
0
– 485
37
– 67
–3
13
545
959
72
0
–37
2
–21
0
0
59
75
712
0
– 44
14
–20
–3
0
108
767
283
11
– 52
10
–10
1
0
64
307
204
0
–29
4
– 9
0
0
105
275
680
0
–230
15
–147
–1
0
454
771
Total
2,870
11
– 877
82
–274
– 6
13
1,335
3,154
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
128
The provision for other employee benefits primarily covers work-
force reduction expenses such as severance payments, partial
retirement, early retirement, stock appreciation rights (SAR s) and
jubilee payments. The increase is attributable mainly to higher
obligations for partial retirement.
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 aircraft maintenance relates to obliga-
tions for major aircraft and engine maintenance by third-party
companies.
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.
Miscellaneous provisions, which include a large number of
individual items, break down as follows:
€ m
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
of which non-current: 334 (previous year: 271)
Miscellaneous provisions
2020
2021
111
49
520
680
114
45
612
771
38.2 Maturity structure
The maturity structure of the provisions recognised in the 2021
financial year is as follows:
€ m
2021
Other employee benefits
Technical reserves (insurance)
Aircraft maintenance
Tax provisions
Restructuring provisions
Miscellaneous provisions
Total
Up to 1 year
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
Total
160
250
98
275
50
375
1,208
154
283
50
0
14
152
653
64
78
93
0
3
64
302
50
44
16
0
4
44
158
48
31
7
0
4
39
129
483
81
43
0
0
97
704
959
767
307
275
75
771
3,154
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
129
The amounts due to banks mainly comprise current overdraft
facilities and long-term loans due to various banks.
The amounts reported under liabilities at fair value through
profit or loss relate mainly to the negative fair values of derivative
financial instruments.
Bonds
The bond issued by Deutsche Post Finance B. V. is fully guaranteed
by Deutsche Post AG.
The bond 2016 / 2021 was completely repaid at the begin-
ning of January 2021.
39 Financial liabilities
€ m
Bonds
Amounts due to banks
Lease liabilities 1
Liabilities at fair value through profit or loss
Other financial liabilities
Financial liabilities
1 Explanations,
note 41.
Significant bonds
Bond 2012 / 2022
Bond 2012 / 2024
Bond 2013 / 2023
Bond 2016 / 2021
Bond 2016 / 2026
Bond 2017 / 2027
Bond 2018 / 2028
Bond 2020 / 2026
Bond 2020 / 2029
Bond 2020 / 2032
Convertible bond 2017 / 2025 1
Non-current
Current
2020
6,660
290
8,638
1
262
2021
6,167
356
9,841
1
249
15,851
16,614
2020
750
189
1,821
53
434
3,247
Total
2021
6,669
544
11,805
13
866
2020
7,410
479
10,459
54
696
19,098
19,897
2021
502
188
1,964
12
617
3,283
2020
Nominal coupon
%
Issue volume
€ m
Issuer
Carrying amount
€ m
Fair value
€ m
Carrying amount
€ m
2.950
2.875
2.750
0.375
1.250
1.000
1.625
0.375
0.750
1.000
0.050
500 Deutsche Post Finance B. V.
700 Deutsche Post AG
500 Deutsche Post AG
750 Deutsche Post AG
500 Deutsche Post AG
500 Deutsche Post AG
750 Deutsche Post AG
750 Deutsche Post AG
750 Deutsche Post AG
750 Deutsche Post AG
1,000 Deutsche Post AG
499
699
498
750
498
496
743
745
747
747
967
525
786
542
750
536
534
846
771
798
825
1,024
500
699
499
–
498
497
743
746
748
747
974
2021
Fair value
€ m
508
764
527
–
525
526
818
759
776
793
1,002
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).
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
130
CONVERTIBLE BOND
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.
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.
Convertible bond
Issue date
Issue volume
Outstanding volume
Exercise period, conversion right
Exercise period, call option
Value of debt component at issue date 2
Value of equity component at issue date 3
2017 / 2025
13 Dec. 2017
€1 billion
€1 billion
13 Dec. 2020 to
13 June 2025 1
2 January 2023 to
10 June 2025
€946 million
€53 million
Transaction costs (debt / equity component)
€4.7 / 0.3 million
Conversion price at issue
Conversion price after adjustment 4
in 2018
in 2019
in 2020
in 2021
€55.69
€55.61
€55.63
€55.74
€55.66
1 Excluding possible contingent conversion periods according to the bond terms.
2 Including transaction costs and call option granted.
3 Recognised in capital reserves.
4 After dividend payment.
40 Other liabilities
€ m
Tax liabilities
Incentive bonuses
Compensated absences
Contract liabilities
of which non-current: 30 (previous year: 17)
Wages, salaries, severance payments
Payables to employees and members
of executive bodies
Social security liabilities
Deferred income
of which non-current: 95 (previous year: 70)
Debtors with credit balances
Overtime claims
Postage stamps (contract liabilities)
Insurance liabilities
COD liabilities
Other compensated absences
Liabilities for damages
of which non-current: 0 (previous year: 7)
Liabilities from cheques issued
Liabilities from the sale of
residential building loans
of which non-current: 30 (previous year: 39)
Accrued insurance premiums for
damages and similar liabilities
Accrued rentals
Miscellaneous other liabilities
of which non-current: 149 (previous year: 195)
Other liabilities
of which current
non-current
2020
1,267
1,002
395
2021
1,622
1,157
446
278
293
241
182
169
161
108
130
33
22
38
38
25
51
14
13
360
342
241
210
210
149
128
107
58
54
45
45
43
40
18
14
1,003
5,463
5,135
328
1,153
6,442
6,138
304
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.
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.
Miscellaneous other liabilities include a large number of
individual items.
Maturity structure
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.
€ m
Up to 1 year
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
Other liabilities
2020
5,135
146
72
47
25
38
2021
6,138
142
63
37
21
41
5,463
6,442
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
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
31 December 2020
Accumulated cost
of which additions
Accumulated
depreciation and
impairment losses
Carrying amount
31 December 2021
Accumulated cost
of which additions
Accumulated
depreciation and
impairment losses
Carrying amount
Land and
buildings
Technical
equipment and
machinery
IT systems,
operating and
office equipment
Aircraft
Transport
equipment
Advance
payments and
assets under
development
11,431
1,874
3,543
7,888
12,472
2,116
4,318
8,154
227
83
90
137
236
24
117
119
8
1
6
2
9
1
7
2
2,079
534
632
1,447
3,016
543
961
2,055
899
266
402
497
1,098
310
511
587
0
1
0
0
251
86
0
251
Total
14,644
2,759
4,673
9,971
17,082
3,080
5,914
11,168
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:
€ m
Non-current lease liabilities
Current lease liabilities
Total
2020
8,638
1,821
2021
9,841
1,964
10,459
11,805
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.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
132
Cash flow disclosures
42 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 changes 2
Non-cash changes
Leases
Currency translation
Other changes
Balance as at 31 December 2020 / 1 January 2021
Cash changes 2
Non-cash changes
Leases
Currency translation
Other changes
Balance as at 31 December 2021
Bonds
5,467
1,853
0
–1
91
7,410
– 845
0
1
103
6,669
Amounts due to
banks
Lease liabilities
Other financial
liabilities 1
468
41
0
– 44
14
479
21
0
32
12
544
10,301
–2,288
2,850
– 409
5
10,459
–2,395
3,408
309
24
11,805
365
–76
0
– 8
43
324
12
0
8
17
361
Total
16,601
– 470
2,850
– 462
153
18,672
–3,207
3,408
350
156
19,379
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.
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.
42.1 Net cash from operating activities
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:
Non-cash income and expense
€ m
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
Result from investments accounted for using
the equity method
Other
Non-cash income (–) and expenses (+)
2020
176
–176
–3
73
34
28
132
2021
176
–198
– 4
79
–32
1
22
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
133
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.
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
43.1 Risk management
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.
Disclosures regarding risks associated with the Group’s
defined benefit retirement plans and their mitigation can be
found in
note 37.5.
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
134
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 liabilities 1
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
As at 31 December 2020
Non-current financial liabilities 1
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 The convertible bond 2025 is contained in the “More than 3 years to 4 years” range.
Up to 1 year
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
745
1,993
8
2,746
679
1,833
10
2,522
798
1,603
7
2,408
656
1,491
8
2,155
1,076
1,350
6
2,432
939
1,151
7
2,097
1,327
1,122
4
2,453
1,165
949
6
2,120
3,155
5,754
5
8,914
4,355
5,050
15
9,420
74
0
0
74
1,321
2,355
9,556
339
13,571
89
0
0
89
1,428
2,198
7,309
348
11,283
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
135
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
Derivative receivables –
gross settlement
Cash outflows
Cash inflows
Net settlement
Cash inflows
Derivative liabilities –
gross settlement
Cash outflows
Cash inflows
Net settlement
Cash outflows
As at 31 December 2020
Derivative receivables –
gross settlement
Cash outflows
Cash inflows
Net settlement
Cash inflows
Derivative liabilities –
gross settlement
Cash outflows
Cash inflows
Net settlement
Cash outflows
Up to 1 year
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
–15
16
–20
21
–34
35
–26
26
–1
1
–19
21
– 6
7
–25
25
–2,944
3,008
8
–1,195
1,183
0
–2,167
2,191
0
–2,094
2,054
–11
– 4
4
–1
1
– 6
7
–1
1
–16
16
–3
3
The contract terms stipulate how the parties must meet their
obligations arising from derivative financial instruments, either
by net or by gross settlement.
CURRENCY RISK AND CURRENCY MANAGEMENT
The international business activities of Deutsche Post DHL Group
expose it to currency risks from recognised or planned future
transactions:
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).
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.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
136
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).
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.
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
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.
The following table presents currency-related effects on
value at risk:
Risk data on currency risk
€ m
Profit or loss effects
Equity effects
Profit or loss effects
Equity effects
2020
2021
Primary financial instruments and free-standing
derivatives
Derivative instruments (cash flow hedges)
Total value at risk 1
4
5
5
7
4
6
1 The total amount is lower than the sum of the individual amounts, owing to interdependencies.
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-
note 39, amounts to 16 % (previous year:
term interest lock-ins,
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.
MARKET RISK
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.
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137
CREDIT 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.
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 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
Gross
carrying
amount
Loss
allowance
Net
carrying
amount
Balance as at 1 January 2021
913
–36
877
Newly originated financial
assets
Impairment loss
Disposal
Reversal of loss allowance
Increase in loss allowance
Currency translation
differences
Changes in consolidated
group / Reclassifications
Balance as at
31 December 2021
Balance as at 1 January 2020
Newly originated financial
assets
Impairment loss
Disposal
Reversal of loss allowance
Increase in loss allowance
Currency translation
differences
Changes in consolidated
group / Reclassifications
Balance as at
31 December 2020
1,940
–13
–719
29
410
2,560
1,165
623
–3
– 832
– 43
3
32
– 46
– 50
–28
24
–32
1,940
–13
–719
32
– 46
29
410
2,510
1,137
623
–3
– 832
24
–32
– 43
3
913
–36
877
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 receivables
€ m
Gross receivables
Balance as at 1 January
Changes
Balance as at 31 December
Loss allowances
Balance as at 1 January
Changes
Balance as at 31 December
Carrying amount as at 31 December
2020
2021
8,728
485
9,213
–167
– 61
–228
8,985
9,213
2,758
11,971
–228
– 60
–288
11,683
Deutsche Post DHL Group – 2021 Annual Report
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138
The following table provides an overview of loss rates by age
band that were used in the Group for the financial year under
review:
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).
Loss rates by age band
%
1 to 60 days
61 to 120 days
121 to 180 days
181 to 360 days
More than 360 days
2020
0.1 – 0.3
1.0 – 4.0
2021
0.1 – 0.2
1.4 –3.1
6.0 –31.0
8.0 –25.0
42.0 –76.0
40.0 –75.0
80.0
80.0 –100.0
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
43.2 Collateral
Collateral provided
€ m
Non-current collateral
of which for assets for the settlement of
residential building loans
for sureties paid
Current collateral
of which for restricted cash
for sureties paid
2020
147
46
101
16
0
16
2021
148
38
110
200
100
100
The collateral provided relates primarily to sureties paid and
restricted cash.
43.3 Derivative financial instruments
FAIR VALUE HEDGES
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.
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:
Deutsche Post DHL Group – 2021 Annual Report
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139
Notional volume of hedging instruments
€ m
31 December 2021
Hedges of currency risk
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).
Total notional volume
Up to 1 year
1 year to 5 years
More than 5 years
Average hedge rate
€
Remaining term
132
21
16
378
–199
103
65
21
16
378
– 89
103
66
1
–110
26.68
1.13
6.49
7.76
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:
Cash flow hedging reserve
€ m
Balance as at 1 January
Gains and losses on effective hedges
Reclassification due to the recognition of
hedged items
Balance as at 31 December 1
1 Excluding deferred taxes.
OCI I
Effective portion
of the hedge
OCI II
Cost of hedging
–24
29
7
12
4
–1
– 5
–2
2020
–2
11
–29
–20
2021
–20
28
2
10
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
140
Reconciliation of carrying amounts in accordance with IFRS 9 and level classification
€ m
31 December 2020
31 December 2021
Level classification
financial instruments
within the scope of IFRS 9
Level classification
financial instruments
within the scope of IFRS 9
Financial
instruments
within the
scope of
IFRS 9
Other
financial
instruments
outside
IFRS 9 1
Carrying
amount
IFRS 7 fair
value Level 1 Level 2 Level 3
Carrying
amount
Financial
instruments
within the
scope of
IFRS 9
Other
financial
instruments
outside
IFRS 9 1
IFRS 7 fair
value Level 1 Level 2 Level 3
ASSETS
Debt instruments measured at cost
Non-current financial assets
Current financial assets 2
Other current assets 2
Trade receivables 2
Cash and cash equivalents 2
Equity instruments at fair value through other comprehensive
income
Non-current financial assets
Reserve for equity instruments without recycling
Current financial assets
Reserve for equity instruments without recycling
106
81
25
14,344
14,238
466
81
330
8,985
4,482
29
29
29
385
56
330
8,985
4,482
29
29
29
473
473
n. a.
n. a.
n. a.
n. a.
29
29
29
29
29
29
Debt instruments and equity instruments at fair value through
profit or loss
1,485
1,485
1,485
1,461
Non-current financial assets
Debt instruments
Equity instruments
Fair value option
Derivatives designated as hedges
Current financial assets
Debt instruments
Trading derivatives
Derivatives designated as hedges
Not IFRS 7
Other non-current assets
Other current assets
TOTAL ASSETS
251
249
1
1
1,234
1,211
22
1
251
249
1
1
1,234
1,211
22
1
2,645
160
2,485
250
249
1
251
249
1
1
1,234
1,211
1,211
1,211
22
1
n. a.
n. a.
n. a.
392
392
24
1
1
23
22
1
567
410
157
17,724
17,157
834
1,257
419
11,683
3,531
46
46
46
424
1,100
419
11,683
3,531
46
46
46
846
846
n. a.
n. a.
n. a.
n. a.
46
46
46
46
46
46
2,141
2,141
2,141
2,072
310
309
1
0
1,831
1,762
58
11
310
309
1
0
1,831
1,762
58
11
3,756
587
3,169
310
309
1
310
309
1
0
1,831
1,762
1,762
1,762
58
11
n. a.
n. a.
n. a.
436
436
69
0
0
69
58
11
18,503
15,752
106
1,987
1,490
416
23,667
19,344
567
3,033
2,118
505
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
141
31 December 2020
31 December 2021
Level classification
financial instruments
within the scope of IFRS 9
Level classification
financial instruments
within the scope of IFRS 9
Financial
instruments
within the
scope of
IFRS 9
Other
financial
instruments
outside
IFRS 9 1
IFRS 7 fair
value Level 1 Level 2 Level 3
10,459
8,638
1,821
16,281
7,212
39
1,373
7,309
348
54
1
1
53
38
15
593
554
39
54
1
1
53
38
15
7,861
7,268
7,822
7,268
39
n. a.
n. a.
n. a.
54
1
1
53
38
15
n. a.
n. a.
n. a.
Carrying
amount
26,740
15,850
39
3,194
7,309
348
54
1
1
53
38
15
5,076
289
4,787
Financial
instruments
within the
scope of
IFRS 9
Other
financial
instruments
outside
IFRS 9 1
IFRS 7 fair
value Level 1 Level 2 Level 3
11,805
9,841
1,964
18,048
6,772
30
1,307
9,556
383
13
1
1
12
12
0
653
623
30
13
1
1
12
12
0
7,343
6,689
7,313
6,689
30
n. a.
n. a.
n. a.
13
1
1
12
12
0
n. a.
n. a.
n. a.
Carrying
amount
29,853
16,613
30
3,271
9,556
383
13
1
1
12
12
0
6,029
274
5,755
EQUITY AND LIABILITIES
Liabilities measured at cost
Non-current financial liabilities 3
Other non-current liabilities
Current financial liabilities 2
Trade payables 2
Other current liabilities 2
Liabilities at fair value through profit or loss
Non-current financial liabilities 3
Earn-out obligation
Trading derivatives
Derivatives designated as hedges
Current financial liabilities
Earn-out obligation
Trading derivatives
Derivatives designated as hedges
Not IFRS 7
Other non-current liabilities
Other current liabilities
TOTAL EQUITY AND LIABILITIES
31,870
16,335
10,459
7,915
7,268
647
35,895
18,061
11,805
7,356
6,689
666
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.
Deutsche Post DHL Group – 2021 Annual Report
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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.
IFRS 13 requires financial assets to be assigned to the ap-
propriate level of the fair value hierarchy:
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.
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.
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.
The following table documents the net gains and losses of
the categories of financial instruments:
Net gains and losses by measurement category
€ m
2020
2021
Net gains / losses on financial assets
Debt instruments at amortised cost 1
Net gains (+) / losses (–) recognised in profit or loss
–176
–195
Debt instruments at fair value through profit or loss
(FVTPL)
Net gains (+) / losses (–) recognised in profit or loss
34
25
Net gains / losses on financial liabilities
Debt instruments at fair value through profit or loss
(FVTPL)
Net gains (+) / losses (–) recognised in the income
statement
– 41
–32
Debt instruments at amortised cost
Net gains (+) / losses (–) recognised in the income
statement
0
0
1 Only effects from impairment losses are listed.
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.
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:
Deutsche Post DHL Group – 2021 Annual Report
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143
Offsetting – assets
€ m
As at 31 December 2021
Derivative financial assets
Trade receivables
Funds
As at 31 December 2020
Derivative financial assets
Trade receivables
Funds
Offsetting – liabilities
€ m
As at 31 December 2021
Derivative financial liabilities
Trade payables
Funds
As at 31 December 2020
Derivative financial liabilities
Trade payables
Funds
Gross amount of
assets
Gross amount of
liabilities offset
Recognised net amount
of assets offset
Liabilities that do not
meet offsetting criteria
Collateral received
Total
Assets and liabilities not offset
in the balance sheet
69
11,793
550
24
9,052
715
0
110
462
0
67
619
69
11,683
88
24
8,985
96
12
12
0
18
0
0
0
24
0
0
15
0
57
11,647
88
6
8,970
96
Gross amount of
liabilities
Gross amount of
assets offset
Recognised net amount
of liabilities offset
Assets that do not
meet offsetting criteria
Collateral received
Total
Assets and liabilities not offset
in the balance sheet
13
9,666
462
54
7,376
619
0
110
462
0
67
619
13
9,556
0
54
7,309
0
12
18
0
18
0
0
0
67
0
0
0
0
1
9,471
0
36
7,309
0
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
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.
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:
Contingent liabilities
€ m
Guarantee obligations
Warranties
Liabilities from litigation risks
Other contingent liabilities
Total
2020
96
13
183
440
732
2021
132
8
213
470
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.
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.
In the grounds for its decision, the court stated that the
pricing approval in question was unlawful because the method
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
145
used to calculate the allowable profit margin under the amended
provisions of the 2015 PostEntgeltregulierungsverordnung
(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
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.
46.1 Share-based payment for executives
(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.
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
146
Share Matching Scheme
Grant date of incentive shares and associated matching shares
1 December 2016
1 December 2017
–
1 December 2019
1 December 2020
1 December 2021
Grant date of matching shares awarded for investment shares
1 April 2017
1 April 2018
1 March 2019
1 April 2020
1 April 2021
1 April 2022
Term
End of term
months
52
52
52
52
52
52
March 2021
March 2022
June 2023
March 2024
March 2025
March 2026
2016 tranche
2017 tranche
Alternative programme
2018 tranche
2019 tranche
2020 tranche
2021 tranche
Share price at grant date (fair value)
Incentive shares and associated matching shares
Matching shares awarded for investment shares
Number of deferred incentive shares
Number of matching shares expected
Deferred incentive shares
Investment shares
Matching shares issued
1 Estimated provisional amount; it will be determined on 1 April 2022.
2 Expected number.
€
€
thousands
thousands
thousands
thousands
29.04
31.77
320
288
901
1,148
39.26
34.97
256
230
864
n. a.
27.30
n. a.
n. a.
854
33.29
23.83
369
332
1,343
40.72
46.52
246
222
1,007
53.55
61.00 1
194 2
174
793
46.2 Long-Term Incentive Plan (2006 LTIP) for members of
the Board of Management
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 (SAR s) 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 SAR s 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 SAR s must be exercised within a period of two years
(exercise period); any SAR s not exercised expire.
How many, if any, of the SAR s 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 SAR s
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
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 SAR s 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.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
147
LTIP 2006
2016 tranche
2017 tranche
2018 tranche
2019 tranche
2020 tranche
2021 tranche
The Board of Management members received a total of 862,272
SAR s (previous year: 816,498 SAR s) with a total value, at the
time of issue, of €8.3 million (previous year: €8.0 million).
A stochastic simulation model is used to determine a fair
value for the SAR s 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.
Issue date
Issue price
€
Waiting period expires
1 September 2016
1 September 2017
1 September 2018
1 September 2019
1 September 2020
1 September 2021
28.18
34.72
31.08
28.88
37.83
58.68
31 August 2020
31 August 2021
31 August 2022
31 August 2023
31 August 2024
31 August 2025
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
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
Initial dividend yield of Deutsche Post shares
Yield volatility of Deutsche Post shares
Yield volatility of Dow Jones EURO STOXX 600 Index
Covariance of Deutsche Post shares to Dow Jones EURO STOXX 600 Index
Number
Rights outstanding at 1 January 2021
Rights granted
Rights lapsed
Rights settled at the end of the waiting period
Rights outstanding at 31 December 2021
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.
The shares acquired under the ESP are subject to a two-
year lock-up period.
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.
2017 tranche
2018 tranche
2019 tranche
2020 tranche
2021 tranche
1 September 2017
1 September 2018
1 September 2019
1 September 2020
1 September 2021
€34.72
€31.08
€28.88
€37.83
58.68
31 August 2021
31 August 2022
31 August 2023
31 August 2024
31 August 2025
– 0.48 %
3.31 %
23.03 %
16.34 %
2.78 %
– 0.39 %
3.70 %
22.39 %
16.29 %
2.66 %
– 0.90 %
3.98 %
21.38 %
14.79 %
2.21 %
– 0.72 %
3.57 %
24.89 %
16.62 %
3.05 %
2,631,486
3,042,048
3,417,264
2,645,394
0
47,400
2,584,086
0
89,646
0
0
90,600
0
0
49,200
0
– 0.80 %
3.07 %
26.49 %
17.33 %
3.25 %
0
1,774,848
4,728
0
0
2,952,402
3,326,664
2,596,194
1,770,120
47 Related-party disclosures
47.1 Related-party disclosures (companies and Federal
Republic of Germany)
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.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
149
RELATIONSHIPS WITH THE BUNDESANSTALT FÜR POST UND
RELATIONSHIPS WITH THE GERMAN FEDERAL
TELEKOMMUNIKATION (BANST PT)
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.
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).
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 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
€ m
Trade receivables
Loans
Receivables from in-house banking
Financial liabilities
Trade payables
Income 1
Expenses 2
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.
Transactions were conducted in the 2021 financial year
with major related parties, resulting in the following items in
the consolidated financial statements:
Investments accounted for using
the equity method
Unconsolidated companies
2020
2021
2020
2021
5
1
0
0
3
8
1
2
1
0
0
5
11
1
3
1
0
3
2
0
15
5
0
0
9
6
2
10
1 Relates to revenue and other operating income. 2 Relates to materials expense, staff costs and other operating expenses.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
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
Short-term employee benefits
(excluding share-based payment)
Post-employment benefits
Termination benefits
Share-based payment
Total
2020
2021
15
3
0
19
37
18
4
0
45
67
The employee representatives on the Super visory 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
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
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 SAR s (previous year: 816,498 SAR s), 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 IFRS s 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.
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.
REPORTABLE TRANSACTIONS
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.
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
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
Other assurance services
Tax advisory services 1
Other services 1
Total
1 Rounded below €1 million.
2021
10
1
0
0
11
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.
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
• CSG GmbH
• CSG.TS GmbH
• Danzas Deutschland Holding GmbH
• Deutsche Post Adress Beteiligungsgesellschaft mbH
• Deutsche Post Assekuranz Vermittlungs GmbH
• Deutsche Post Beteiligungen Holding GmbH
• Deutsche Post Customer Service Center GmbH
• 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
• Deutsche Post E-POST Solutions GmbH
• Deutsche Post Expansion GmbH
• Deutsche Post Fleet GmbH
• Deutsche Post Immobilien 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
• Deutsche Post Vermarktungs GmbH
• Deutsche Post Zahlungsdienste 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
• DHL Express Network Management GmbH
• DHL FoodLogistics GmbH
• DHL Freight Germany Holding GmbH
• DHL Freight 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 Paket GmbH
• DHL Solutions Fashion 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
• Erste Logistik Entwicklungsgesellschaft MG GmbH
• European Air Transport Leipzig GmbH
• Gerlach Zolldienste GmbH
• interServ Gesellschaft für Personal- und
Beraterdienstleistungen mbH
• it4logistics GmbH
• Saloodo! GmbH
• StreetScooter GmbH
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF DEUTSCHE POST AG
152
RESPONSIBILITY STATEMENT
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.
51 Significant events after the reporting date and other
disclosures
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
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
Ken Allen
Oscar de Bok
Melanie Kreis
reporting date.
Dr Tobias Meyer
Dr Thomas Ogilvie
John Pearson
Tim Scharwath
Deutsche Post DHL Group – 2021 Annual Report
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153
INDEPENDENT
AUDITOR’S REPORT
To Deutsche Post AG, Bonn
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 IFRS s 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-
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
• 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.
Basis for the audit opinions
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
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.
Key audit matters in the audit of the consolidated financial
statements
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.
In our view, the matters of most significance in our audit were
as follows:
1 Recoverability of goodwill
2 Pension obligations and plan assets
Our presentation of these key audit matters has been structured
in each case as follows:
1 Matter and issue
2 Audit approach and findings
3 Reference to further information
Hereinafter we present the key audit matters:
1 Recoverability of goodwill
1
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
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT AUDITOR’S REPORT
154
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.
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.
2 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.
3
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
1
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.
2 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.
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.
3
Other information
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 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
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.
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT AUDITOR’S REPORT
155
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.
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 connection with our audit, our responsibility is to read the
other information mentioned above and, in so doing, to consider
whether the other information
• 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.
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.
Responsibilities of the executive directors and the
Super visory Board for the consolidated financial
statements and the Group management report
The executive directors are responsible for the preparation of
the consolidated financial statements that comply, in all material
respects, with IFRS s 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.
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
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.
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.
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.
Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with
§ 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.
We exercise professional judgment and maintain profes-
sional skepticism throughout the audit. We also:
• 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.
• 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.
• Evaluate the appropriateness of accounting policies used by the
executive directors and the reasonableness of estimates made
by the executive directors and related disclosures.
• 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
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT AUDITOR’S REPORT
156
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.
• 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 IFRS s as adopted by the EU
and the additional requirements of German commercial law
pursuant to § 315 e Abs. 1 HGB.
• 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 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
risk that future events will differ materially from the prospec-
tive information.
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.
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.
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.
Other legal and regulatory requirements
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
Assurance opinion
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
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.
Basis for the assurance opinion
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).
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157
Responsibilities of the executive directors and the
Supervisory Board for the ESEF documents
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.
Group auditor’s responsibilities for the assurance work on
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
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.
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).
Reference to an other matter –
use of the auditor’s report
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.
German Public Auditor responsible
for the engagement
The German Public Auditor responsible for the engagement is
Verena Heineke.
Düsseldorf, 18 February 2022
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Dietmar Prümm
Wirtschaftsprüfer
(German Public Auditor)
Verena Heineke
Wirtschaftsprüferin
(German Public Auditor)
Deutsche Post DHL Group – 2021 Annual Report
CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT PRACTITIONER’S REPORT
158
INDEPENDENT
PRACTITIONER’S
REPORT
on a Limited and Reasonable Assurance
Engagement on Non-financial Reporting
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.
To Deutsche Post AG, Bonn
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
• Realised Decarbonisation Effects 2021 in the first paragraph of
the section “GHG emissions above prior-year level”
• Disclosures for 2021 in the table “GHG emissions (well-to-
wheel)”
• Disclosures in the chart “GHG emissions by mode of transpor-
tation”
• GHG efficiency (CEX) in the first paragraph of the section “GHG
• Disclosures for 2021 in the table “Energy consumption in the
company’s own fleet and buildings (Scopes 1 and 2)”
• Share of female employees 2021 in the table “Workforce
development”
• Share of unplanned employee turnover 2021 in the table
“Workforce development”
• Disclosures for 2021 in the table “Selected results from the
Employee Opinion Survey”
• Share of women in middle and upper management in the third
paragraph of the section “Diversity is our strength”
• Disclosures in the table “Workplace accident statistics”
• Sickness rate in the fifth paragraph of the section “Occupational
health and safety”
• 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”
• Number of audits by Corporate Internal Audit in the eighth
paragraph of the section “Trusted business partner thanks to
compliance”
• Number of on-site reviews relating to respect for human rights
in the fourth paragraph of the section “Respecting human
rights”
• 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”
disclosed in the Combined Non-financial Statement (hereafter
the “Indicators”) and
• performed a limited assurance engagement on all informa-
tion other than the Indicators in the Combined Non-financial
Statement.
Responsibility of the Executive Directors
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.
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 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.
efficiency drops”
• Share of electricity from renewable sources in the third para-
graph of the section “Using sustainable technologies and fuels”
Not subject to our assurance engagement are the external
sources of documentation or expert opinions mentioned in the
Combined Non-financial Statement.
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159
Independence and Quality Control of the Audit Firm
We have complied with the German professional provisions
regarding independence as well as other ethical requirements.
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.
Responsibility of the Assurance Practitioner
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.
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
• 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.
The procedures performed for the limited assurance engagement
part are less extensive than those performed for the reason able
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.
In the course of our assurance engagement, we have,
amongst other things, performed the following assurance pro-
cedures and other activities:
• Gain an understanding of the structure of the Company’s sus-
tainability organization and stakeholder engagement
• 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
control system relating to this process and about disclosures
in the Combined Non-financial Statement
• Identification of likely risks of material misstatement in the
Combined Non-financial Statement
• Analytical procedures on selected disclosures in the Combined
Non-financial Statement
• Reconciliation of selected disclosures with the corresponding
data in the consolidated financial statements and group man-
agement report
• Evaluation of the process to identify taxonomy-eligible eco-
nomic activities and the corresponding disclosures in the Com-
bined Non-financial Statement
• Inquiries on the relevance of climate-risks
• Evaluation of the presentation of the Combined Non-financial
Statement
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
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.
Deutsche Post DHL Group – 2021 Annual Report CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT PRACTITIONER’S REPORT
160
Assurance Opinion
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.
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.
Restriction of Use
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.
Düsseldorf, 18 February 2022
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Hendrik Fink
Wirtschaftsprüfer
(German Public Auditor)
ppa. Thomas Groth
Deutsche Post DHL Group – 2021 Annual Report
FINANCIAL CALENDAR – CONTACTS
Deutsche Post DHL Group – 2021 Annual Report
161
FINANCIAL CALENDAR
CONTACTS
Deutsche Post AG
Headquarters
53250 Bonn
Germany
Investor Relations
+ 49 (0) 228 182-6 36 36
ir @ dpdhl.com
Press Office
+ 49 (0) 228 182-99 44
pressestelle @ dpdhl.com
2022
3 May
Results of the first quarter of 2022
6 May
2022 Annual General Meeting
11 May
Dividend payment
5 August
Results of the first half of 2022
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
2023 Annual General Meeting
9 May
Dividend payment
1 August
Results of the first half of 2023
7 November
Results of the first nine months of 2023
Updates to the financial calendar as well as information
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