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DHL Asia Pacific and China Strategy
Frank Appel Shanghai, 11 July 2012

Deutsche Post DHL | PageFrank Appel | Shanghai | 11 July 2012 2
Asia: Most dynamic global growth region

Population: ~ 56% (3,871 mn)
GDP: ~ 30% (EUR 14.77 trillion)
Export: ~ 33% (EUR 4.84 trillion)
~ 30% Dom. demand: (EUR 14.43 trillion)
Asia Pacific: Strong and stable growth rates
Asia Pacific: Fastest global growth region
0
5
1020
15F
2014
F
2013
F
2012
F
2011
2010
2009
2008
2007
GDP growth (real) in % (yoy) Share of absolute GDP growth (2010-2015)
9.8%
13.7%
27.7%
48.8%
Forecast
Asia Pacific: A major driver
of the world
Asia Pacific: An important growth engine for global GDP
Source: IHS Global Insight (Deutschland) GmbH, 2012
OtherEuropeAmericasAPAC

Source: Seabury Cargo 2012; Air Cargo & Containerized Ocean Freight in Metric Tons*) CAGR 2010-2015; for information: EuropeAsia: 13% of total trade (2015), CAGR 6.4%; North AmericaAsia: 13% of total trade (2015); CAGR 6.4% 2010-2015
in the centre of gravity for global trade
IntraAsia Trade32% of total trade (2015)CAGR 7.4% *)
Middle East-AfricaAsia9% of total trade (2015)CAGR 7.6% *)
Latin AmericaAsia5% of total trade (2015)CAGR 11.2% *)
More than 40% of global trade expected to originate from three triangles of trade around Asia by 2015
Example: Air Cargo & Containerized
Ocean Freight

Clear market leadership in Asian TDI
No. 1 in air freight, No. 2 in ocean freight
Market leader in contract logistics in Asia
Revenue 20111): EUR 11.4bn
DHL Asia: A strong contributor to the Group
1) External revenue = revenue generated by the divisions from non-Group third parties; 2) incl. DHL Freight
Asia Pacific
Others
30%
Others
Asia Pacific
26%
Others
Asia Pacific9%
Asia Pacific
Others
19%Revenue 20111)2):
EUR 38.9bn

Source: DHL, DHL Business Strategy in China (ICFAI Center for Management Research, 2004)
We are pioneers in Asia, continuously expanding operations
19801980 19901990 20002000 20052005 20102010
DHL established presence in China through Intl Express
DHL expanded into global forwarding and contract logistics segments
DHL established presence in dom. transportation services
Future Investments
NOT EXHAUSTIVE
1986DHL established JV with Sinotrans
1998Danzas Z.F. Freight Agency Co. established as a JV
2002DHL acquires stake in Air Hong Kong
2005DHL inaugurates Oceania Hub at Sydney Airport
Today1980DHL entered China through an agency agreement with Sinotrans
2000Central Asia Hub (Hong Kong) begins operations
2004DHL acquires 68% stake in Blue Dart (India)
North Asia Hub,Shanghai(Express)
1991DHL Danzas Air & Ocean started from a representative office
2003DHL acquires stake in Sinotrans
2009DHL opens domestic transportation hub (supply chain) in Shanghai
2007DHL first intl provider of dom. airfreight services in China
MegaHub,Hong Kong (Supply Chain)
New openings

Key growth levers in Asia
Improving connectivity, facilitating trade growth Next day delivered everywhere in EU
Intra-Asia andTrans-Pacific routes Following growth westward
North Asia Hub for EXPRESS in Shanghai
Early bird Overnight Europe from Pearl River Delta
Trans Pacific FlightsGoWest
DHL is the most reliable and fastest Express services provider in Asia

New projects in Asia in 20121) New openings in China
EXEMPLARY
Round-the-world-flight, linking Hong Kong, Los Angeles and Leipzig Mar. 2012
DHL Door-to-More direct distribution solution from Asia to Europe (Global Forwarding)Jun. 2012
Distribution center for Life Sciences & HealthcareJun. 2012
Mumbai
Continuously expanding in Asia
1) Multitude of other investment projects ongoing, for example upgrade and enhance capacity & capability of AFR/OFR/RFR/multimodal products/facilities in Mid-West China, furthermore upcoming launch of multi-national LCL gateway in Korea; 2) Shenzhen Qianhaiwan Free Trade Port Area
North Asia HubShanghai
Supply Chain MegaHub
Hong Kong
DHL Integrated Logistics Center
Shenzhen2)
July 2012
December 2012
Airfreight bonded facility expansion
Shanghai
New multi-user warehouse Jun. 2012
Jakarta
LCL global forwarding hubAug. 2012 (planned)
Korea
New International Service CenterMay 2012
Hong Kong
Direct flights from Hong Kong to Chengdu and Ho Chi Minh CityJune 2012
Hong Kong

China: Global hub and dynamic domestic market

Origin of Growth 2010 2025
Origin of Absolute GDP Growth
(EUR bn)
Real GDP Growth
(Indexed 2010 = 100%)
China
APAC w/o ChinaWorldNorth AmericaEurope
Source: Copyright IHS Global Insight (Deutschland) GmbH, 2012
China will remain the engine of the global economy until 2025
300
250
200
150
02025202020152010
3,664
Europe
4,616
RoW
4,519
North America
4,408
APAC
9,719
5,103(China)

The China of tomorrow
China in 2025
5 million buildings Half of the worlds buildings constructed until 2025
50,000 skyscrapers The equivalent to constructing up to 10 New York cities
5 billion square meters of road will be paved Today its only half of it and even less than in Germany
Chinas urban population increase by 350 m More than the population of todays United States
221 cities with more than one million people Europe has 35 today
Source: McKinsey Global Institute Preparing for Chinas urban billion, 2009

Logistics has a key role to play in Chinas development
Help accelerate the pace of innovation with intelligent logistics solutions
Help international players to be successful in China and support Chinese heroes in their quest for internationalization
Support shift to environmentally conscious business practices with green logistics solutions
Help China integrate stronger with the global economy by facilitating international and domestic trade flows
As China continues on a path of globalization, logistics has a key role to play:
Offer efficient logistics solutions as key enabler of growth

DHL Express in China: First foreign express company to enter China in 1980
(DHL Sinotrans)
Key strategic growth levers
Emerging industries: Consumer electronics, Automotive, Healthcare, Engineering & Manufacturing, Fashion
Specific Initiatives:Growth initiatives targeted at specific industry sub-segments at city or provincial level, e.g. Wedding Gowns from Suzhou
High Potential Regions:Southwest (Chengdu & Chongqing), central cities (Wuhan & Zhengzhou, Northeast Region (Dalian, Qingdao, Jilin, Shenyang)
>30 years of experience in China Covering >400 cities in China >110,000 customers Appr. 6,000 employees >30% market share in time definite
international

DHL Global Forwarding in China: No. 1 Freight Forwarder in the market
Expand customer portfolio:From global multi-nationals to fast-growing enterprises and local small- and medium-sized enterprises
Deliver operational excellence:Enhance exception management and complaint handling through one-touch initiative
Continuous sector development:Maintain strength in Hi-Tech and further expand into Fashion & Luxury, Automotive, Life Sciences, Energy, Retail and Engineering & Manufacturing
First foreign logistics company to enter China domestic airfreight market
>35,000 customers Around 3,000 employees Appr. 400,000 sqm of warehouse
space

DHL Supply Chain in China: Integrated logistics solutions for key industries
Focus on operational excellence and qualityContinuous investment in IT applications and warehouse footprint
Talent & people developmentConsultative selling and key account management
Sector-focused business developmentLeverage on global solutions with adaptation to local requirements >25 years experience with domestic
transportation and distribution in China
>4,000 employees Around 200 customers >600,000 sqm of warehouse and
cross docking space 1)
1) including Hong Kong and Taiwan

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