000

2016 Annual Report
/2016 CONTENT
TO OUR SHAREHOLDERS
26 / 03
CONSTANTLY REINVENTING THE FUTURE CONSOLIDATED FINANCIAL STATEMENTS
OF LOGISTICS 99176
719 100 Income Statement
101 Statement of Comprehensive Income
SELECTED KEY FIGURES 102 Balance Sheet
20 103 Cash Flow Statement
104 Statement of Changes in Equity
105 Notes to the Consolidated Financial Statements
ofDeutschePost AG
171 Responsibility Statement
/ 01 172 Independent Auditors Report
GROUP MANAGEMENT REPORT

2184
22 General Information
/ 04
46 Annual Corporate Governance Statement FURTHER INFORMATION
47 Report on Economic Position
66 Deutsche Post Shares 177184
67 Non-Financial Figures
74 Opportunities andRisks 178 Multi-year Review
82 Expected Developments 180 Index
181 Glossary
182 Graphs and Tables
183 Contacts
183 Ordering
/ 02 184 Financial Calendar
CORPORATE GOVERNANCE
8598
86 Report of the Supervisory Board
89 Supervisory Board
90 Board of Management
92 Mandates
93 Corporate Governance Report
Cross-references Websites
2 Deutsche Post DHL Group 2016 Annual Report
TO OUR SHAREHOLDERS
WEARECOMMITTED/
TOCONTINUOUSLY
REINVENTINGOUR-
SELVESFORTHE
BENEFITOFOUR
CUSTOMERS
By FRANK APPEL
DrFrank Appel has been a member of the Board
ofManagement of Deutsche Post DHL Group since
2002. He became Chief Executive Officer in 2008.
FrankAppel has a PhD in neurobiology.
To stand still is to go backwards. I couldnt

agree more with this maxim. It applies
toeverything to nature, society, economies,
companies and our own lives. The world
ischanging, and its our responsibility to
recognise and seize the opportunities that
arise from this change.
To our Shareholders
3
As a leading company in a service industry, I believe we

have a particular duty to actively shape change. Thats
why I am so proud of the curiosity and innovative spirit
demonstrated by our employees.
Whats more, were networking with partners from indus-

try and research at our Innovation Centers in Germany and
DHL Innovation Centers provide Singapore, where we work together on innovative topics.
aplace for Deutsche Post DHL
Group customers and partners to
come together to collaborate
Over the next pages, we present a few examples of how
onnew trends and innovations. Deutsche Post DHL Group optimises business models,
Visitors are given a comprehen- applies digital technology and leverages new forms of
sive insight into present and
collaboration. Our sketch book shows the breadth
future logistics solutions and it is
here that the DHL Trend Research ofourtest projects from smart glasses and drones to
Team explores topics related to e-mobility and robots. At the heart of it all we are
innovation. creating added value for our customers.
For us/innovation means/

continuouslyimprovingwhat
wecanofferourcustomers
First and foremost, for us, innovation means continuously
improving what we can offer our customers for example,
innovative delivery options from Packstations to in-car
delivery that are as customised, flexible and convenient
aspossible. After all, that is what our customers in the
booming e-commerce business want with volumes rising
at the same time.
I believe one key to our success is continuing to reduce

complexity through new technologies and improved
processes. This is how we can simplify and streamline
standard activities. New technologies can help people
bemore productive and they thus play an important
roleindriving economic growth.
Newtechnologiescanhelp

peoplebemoreproductiveand
theythusplayanimportant
roleindrivingeconomic
growth
The results we achieved in financial year 2016 confirm
thatwe are on the right path. The measures implemented
in the prior year served to make our Group more efficient
and led to significantly higher margins. Consolidated EBIT
rose by around 45% to 3.5billion, which is in line with
our target.
All our operating divisions contributed to this positive

development: Post- eCommerce- Parcel achieved
anincrease in revenue and earnings, due mainly to
thedynamic growth recorded in the parcel business.
To our Shareholders
5
Inthe DHL d ivisions, the growth trend in the international

express business remained intact and the turnaround
measures implemented in the Global Forwarding, Freight
division, in particular, are taking effect. The Supply Chain
operating business continued to perform well.
In addition, we invested substantially in all divisions in

sustainable growth andmade major progress in the
implementation of ourStrategy 2020. We are well on our
way to becoming the global market leader in e-commerce
logistics.
Our Global E-Tailing 2015 study
uses four future scenarios to
describe the role which electronic
retailing could play in peoples Wearewellonourway/to
lives in the year 2025, howinter- becomingtheglobalmarket
national online retailing will
change consumer behaviour and
leaderine-commercelogis-
thus the world of retailing as tics
awhole, and the challenges that
will subsequently face thelogis-
tics industry.
We expect consolidated EBIT to reach around 3.75billion
in financial year 2017. The Post- eCommerce- Parcel
division is likely to contribute around 1.5billion to this
figure. Compared with the previous year, we expect an
additional improvement in overall earnings to around
2.6billion in the DHL divisions. The Corporate Center/
Other result is projected to be at the prior-year level of
around 0.35billion.
Against the backdrop of the positive results achieved

inthe reporting year, the Board of Management and the
Supervisory Board will propose a 0.20 increase in the
dividend to 1.05 per share to the Annual General Meeting
at the end of April. With a planned distribution ratio
of48%, we remain within our target range of 40% to 60%
The Groups finance strategy, of net profits.
which was presented in 2010,in-
cludes a dividend policy to
thiseffect and sets clear priorities
regarding the use of excess Asthedriverofinnovation
liquidity.
inourindustry/wecreate
newpossibilitiesthatallow
ustodoourjobjustalittle
bitbettereveryday
As CEO of a global logistics company, I know that we have
to continuously reinvent ourselves in order to seize the
opportunities presented by change and remain the driver
of innovation in our industry. That is how we create
newpossibilities that allow us to do our job just a little
bit better every day.
LEARNMOREAT:
www.delivering-tomorrow.com
ITISESSENTIALTO
SIMPLIFYOPERATIONS
ANDINCREASEFLEXI
BILITY/BY COMBINING
THESTRENGTHSOF
HUMANSANDMACHINE
Distribution processes
Numerous processes in our distribution centres could change
infuture, with machines supporting employees in their tasks
and,most importantly, taking over physically strenuous work.
Deutsche Post DHL Group has already tested new technologies
at various locations that aim to make work easier in the future.
Mobile piece picking

Pickers previously had to move from aisle to
aisleto retrieve goods in the warehouse. In the
United States, DHL Supply Chain is now testing
asmall autonomous robot that travels between
aisles thus relieving the order pickers. There was
also another project in our Post- eCommerce-
Parcel division.
9
2 3 4
Co-packing Exoskeletons Automated inventory management

Baxter and Sawyer are two collaborative robots Exoskeletons strengthen movements and A drone is equipped with a camera that can
who assist employees with order picking and support the body. DHL Supply Chain has already identifywarehouse stock levels from the air
co-packing the packaging or repackaging of tested this technology in its operations and atechnology that assists with inventory
goods. Taking the weight off our colleagues, foundthat it reduces the physical workload for management.The project has already been
they are especially useful in the lifting of heavy our employees. In future, exoskeletons may testedattheSupply Chain division. In future,
objects. The two robots have already been also support deliverers along their routes. dronescould beequipped with smart sensors
testedby DHL Supply Chain. toscangoods directly. The information col-
lectedwillthen be read out in order to deliver
preciseinventory data.
Collaborative robots
in logistics
Whilst industrial robots have been used in manu
facturing for years, they have not been considered
suitable for complex logistics tasks. Now thats all
changing. Baxter and Sawyer are two collaborative
robots that use sensors and cameras not only to
identify and grab objects, but also to integrate
themselves into existing operations and assist staff
with tasks, such as packaging, assembling and
co-packing products.
11
Flexible and adaptive

Robots today need to be flexible and adaptive
rather than rigid and stationary in order to
beableto complete complex logistics tasks.
Lightening the load

Fully automated, autonomous trolleys can
now follow employees and help with physical
work. DHL has tested these rolling assistants
in its Supply Chain warehouses. In future, they
may also be able to support our mail and
parcel delivery operations and are currently
being tested in the Post- eCommerce- Parcel
division. Delivery robots have to be even more
sophisticated for example, they must be
weatherproof, and able to detect and avoid
obstacles.
EffiBOT follows the warehouse worker up

anddown the aisles. Once fully loaded,
thetrolley goes by itself to the designated
drop-off location. A second cart then takes
over to assist the picker further.
Automated relief
Several years ago, Deutsche Post DHL Group put a system
intooperation that can autonomously unload containers with
loose parcels, thus relieving workers from what was very
strenuous manual labour. Guided by custom software and a
laser scanner, the parcel robot grabs individual parcels from
containers before placing them on a conveyor belt.
NEWTECHNOLOGIES
ASSMARTASSISTANTS
INTHEWORKPLACE
With the assistance of smart glasses

In 2015, DHL tested the use of smart glasses and augmented
reality for the first time at a distribution centre in theNether-
lands. Wearing the glasses, pickers see information that
tellsthem what to do next. This can accelerate the picking
process and reduce errors.
The next phase in the project started in the summer of 2016.

It is now being expanded to other countries in Europe, as well
as the United States, and in new sectors such as Technology,
Retail, Consumer and Automotive.
15
Chatbots go shopping
AllyouneedFresh, Deutsche Post DHL Groups online grocery
store, offers a special service to its customers in Germany:
customers send a shopping list or photo of a recipe using an
instant messenger such as SIMSme. An intelligent computer
program known as a chatbot then autonomously creates a
shopping list. The customer receives a link, reviews the order
and confirms the purchase. DHL then delivers the order within
the requested delivery window.
More flexible delivery and optimised routing

The requirements and customer demands placed on delivery
are changing rapidly, especially in urban areas. For example,
customers increasingly want flexible delivery windows
whilstour volumes continue to grow. In order to meet these
requirements and be able to offer excellent services in the
future, we are developing innovative planning models and, in
doing so, are making processes more efficient and flexible.
Forexample, in the Post- eCommerce- Parcel division the
research project Digital Delivery Graph is aimed at realising
flexible planning in real time. In the Express division, new
scanners and state-of-the-art route planning tools help us to
significantly increase our efficiency by reducing set-up times
and optimising routes.
WEMUSTCONTINUOUSLY
REINVENT OURSELVES/
TOKEEPPACEWITH
THECHANGINGWORLD
ANDTAKEADVANTAGE
OFOPPORTUNITIES
Delivery vehicles of the future

Delivery vehicles should be carbon free and quiet whilst
meeting the highly specialised requirements of our deliverers:
short routes in city traffic with frequent stops and starts.
In2011, the Group worked together with StreetScooter GmbH
in Aachen, Germany, to build a custom electric delivery
vehicle. The first StreetScooters were successfully tested in
our delivery operations in 2013. Starting in 2017, we shall
beina position to produce 10,000 StreetScooters per year. We
intend to replace our delivery fleet in Germany with these
electric vehicles in the medium term.
19
The ever-evolving Parcelcopter

The Deutsche Post DHL Group Parcelcopter lifted off for the first
time in 2013, flying over the Rhine in Bonn. In a subsequent
fieldtest, it delivered medication to the North Sea island of Juist.
Afterwards it flew from the Bavarian ski resort Reit im Winkl
tothe mountain plateau of Winklmoosalm, where it landed, for
example, in a specially designed Packstation the Parcelcopter
Skyport to deliver parcels. By continuously developing this
unmanned aircraft we have been able to integrate it into existing
logistics processes. The project was awarded the 2016 German
Mobility Prize.
Delivering convenience
Together with prominent car manufacturers, DHL Paket is
testingin-car delivery. Since the autumn of 2016, DHL and smart
have been running a joint test project allowing owners of
asmartin select cities to register their cars as mobile delivery
addresses for their parcel shipments. Using a smartphone
app,deliverers can locate the vehicle and open the boot using
aone-time transaction number in order to deposit the ship-
ment.A similar project called Smart Lock is also being tested:
customers can give, for example, parcel couriers access to their
home using a special electronic lock and app so that they can
deposit parcels there. The technology can also be used to
opendoors for other services, such as cleaning or maintenance
personnel.
SELECTED KEY FIGURES

01
EBIT 2016 EMPLOYEES
3,491 million 508,036

Profit from operating activities. Headcount at the end of 2016, including trainees.
(previous year: 2,411 million) (previous year: 497,745)
CONSOLIDATED NET PROFIT RETURN ON SALES 2016

FOR THE PERIOD
m
2016
2,639
6.1%
(previous year: 4.1%)
2015
1,540
After deduction of non-controlling interests.
REVENUE 2016 EARNINGS DIVIDEND
57,334 million
(previous year: 59,230 million)
PERSHARE

2016
2.19
PERSHARE

2016
1.051
2015 2015
1.27 0.85
Basic earnings per share. 1

Proposal.
2015 2016 +/% Q4 2015 Q4 2016 +/%
Revenue m 59,230 57,334 3.2 15,339 15,410 0.5

Profit from operating activities (EBIT) m 2,411 3,491 44.8 957 1,111 16.1
Return on sales1 % 4.1 6.1 6.2 7.2
EBIT after asset charge (EAC) m 877 1,963 >100
Consolidated net profit for the period 2
m 1,540 2,639 71.4 670 841 25.5
Free cash flow m 1,724 444 74.2 1,705 1,201 29.6
Net debt3 m 1,093 2,261 >100
Return on equity before taxes % 19.7 27.7
Earnings per share 4
1.27 2.19 72.4 0.55 0.70 27.3
Dividend per share 0.85 1.05 5
23.5
Number of employees6 497,745 508,036 2.1
1
EBIT/revenue.
2
3
Calculation Group Management Report, page 58.
4
Basic earnings per share.
5
Proposal.
6
Headcount at the end of the year, including trainees.
/01 GROUPMANAGEMENTREPORT
GroupManagementReport
GENERAL INFORMATION
/01
22
22 Business model and organisation
24 Business units and market positions
30 Objectives and strategies
32 Group management
34 Disclosures required by takeover law
38 Research and development
38 Remuneration of the Board ofManagement and Supervisory Board
46 ANNUAL CORPORATE GOVERNANCE STATEMENT

47 REPORT ON ECONOMIC POSITION
/02
47 Overall Board of Management a ssessment of the Groups economic position
47 Forecast/actual comparison
48 Economic parameters
50 Significant events
50 Results of operations
52 Financial position
58 Net assets
59 Business performance in the divisions
66 DEUTSCHE POST SHARES

67 NON-FINANCIAL FIGURES
67 Employees
69 Health and safety
69 Corporate responsibility
71 Customers and quality
73 Brands
74 OPPORTUNITIES ANDRISKS
74 Overall Board of Management a ssessment of the opportunity andrisksituation
74 Opportunity and risk management
77 Categories of opportunities and risks
82 EXPECTED DEVELOPMENTS
82 Overall Board of Management assessment of the future economic position
82 Forecast period
82 Future economic parameters
83 Revenue and earnings forecast
84 Expected financial position
84 Performance of further indicators r elevant for internal management
GENERAL INFORMATION vices we describe in the Business units and market positions chap-
ter, page 24ff. Each of them is under the control of its own
Business model and organisation divisional headquarters and subdivided into functions,
business units or regions for reporting purposes.
Four operating divisions We consolidate the internal services that support the
Deutsche Post AG is a listed corporation domiciled in Bonn, entire Group in our Global Business Services (GBS). Group
Germany. The Group is organised into the four operating management functions are centralised in the Corporate
divisions Post- eCommerce- Parcel, Express, Supply Chain Center.
and Global Forwarding, Freight, whose products and ser-
Organisational structure
01/0 1
Corporate Center Divisions
CEO, Post- Global

Global Business eCommerce- Forwarding,
Services Finance Human Resources Parcel Express Freight Supply Chain
Board member Board member Board member Board member Board member Board member Board member
DrFrank Appel Melanie Kreis Melanie Kreis Jrgen Gerdes Ken Allen DrFrank John Gilbert
Appel
Functions Functions Functions Business units Regions Regions
Board Services Corporate Corporate HR Post Europe Business units EMEA (Europe,
Corporate Legal Accounting& Germany eCommerce- Americas Global Middle East
Customer Solutions& Controlling Corporate HR Parcel Asia Pacific Forwarding and Africa)
Innovation Corporate Finance Standards& MEA (Middle Freight Americas
Corporate Office Investor Relations Programs East and Asia Pacific
CorporateDevelop Corporate Audit& Corporate HR Africa)
ment Security International
Corporate Executives Taxes Divisional HR
Corporate Heritage& Divisional Finance Organisations
Industry Associations Organisations
Corporate Legal Services
Communications&
Responsibility
Corporate Public
Policy&Regulation
Management
Global Business
Services (Corporate
Procurement,
Corporate Real
Estate, IT Services,
Insurance&Risk
Management etc.)
Group Management Report General Information Business model and organisation
23
Organisational changes Effective 1January2017, Frank Appel, as CEO, took over

Tim Scharwath was newly appointed as the member of the the responsibility for a large part of the functions of Global
Group Board of Management for Global Forwarding, Freight Business Services until further notice.
in May2016. He will have assumed office by June2017.
At his own request, Lawrence Rosen retired, resigning A presence that spans the globe
as the member of the Group Board of Management respon- Deutsche Post DHL Groups locations can be found in the
sible for Finance, Global Business Services, on 30Septem- list of shareholdings, dpdhl.com/en/investors. Table 01/02 provides
ber2016. Melanie Kreis has been appointed as his succes- an overview of market volumes in key regions. Our market
sor; she will retain her responsibility as the Board Member shares are detailed in the business units and market posi-
for Human Resources and as Group Labour Director until tions chapter below.
further notice.
Market volumes1
01/0 2
Global Germany
(2015) (2016)
21M TONNES
Air freight2
10.1 BN
Parcel6
50M TEUs 4.5 BN

Ocean freight3 20BN Mail communication6
International
express market5
(2013) 24.4 BN
Advertising
market7
184BN
Contract logistics4
(2015) Middle East/Africa Americas Europe Asia Pacific

Air freight (m tonnes)2 1.3 5.0 5.3 9.6
Ocean freight (m TEUs) 3
4.8 7.9 6.9 30.2
Contract logistics ( bn)4 5.6 54.3 65.7 59.3
International express market ( bn)5 7.2 (2013) 6.0 (2013) 6.5 (2013)
Road transport ( bn)8 193
1
Regional volumes do not add up to global volumes due to rounding.
2
Data based solely upon export freight tonnes. Source: Seabury Cargo Advisory.
3
Twenty-foot equivalent units; estimated part of overall market controlled by forwarders. Data based solely upon export freight tonnes.
Source: company estimates, Seabury Cargo Advisory.
4
Based upon Transport Intelligence and company estimates.
5
Includes express product Time Definite International. Country base: Americas, Europe, Asia Pacific, AE, SA, ZA (Global);
BR, CA, CL, CO, CR, GT, MX, PA, PE, US (Americas); AT, DE, DK, ES, FR, IT, NL, RU, TR, UK (Europe); CN, HK, IN, JP, KR, SG (Asia Pacific).
Source: Market Intelligence, 2014, annual reports and desk research.
6
Source: company estimates.
7
Includes all advertising media with external distribution costs. Source: company estimates.
8
Market volume covers 25 European countries, excluding liquids and bulky goods. Source: Market Intelligence Study DHL 2016,
based upon Eurostat, financial publications, IHS [2016]. All rights reserved.
Business units and market positions

POST- ECOMMERCE- PARCEL DIVISION
Nationwide transport and delivery network in Germany, 2016

01/0 3
Around
11,000
Paketshops
Around
110,000
Around
3,000
Packstations Around
4.3
million parcels
post boxes 3,100 perworking day
sales points
Over Around
13,000 103,000 82
retail outlets About
59
letter and parcel mail centres
Around
deliverers
900
million letters Paketboxes
perworking day 34
parcel centres
The postal service for Germany Domestic mail communication market, business customers, 2016
01/0 4
We deliver about 59million letters every working day in Market volume: 4.5billion
Germany, making us Europes largest postal company. Our
Deutsche Post 61.3%
products and services are aimed at both private and busi-
Competition 38.7%
ness customers and range from physical, hybrid and elec-
tronic letters and merchandise to additional services such Source: company estimate.
as cash on delivery, registered mail and insured items.

In the reporting year, the domestic market for business Targeted and cross-channel advertising
communications was around 4.5billion (previous year: We offer end-to-end dialogue marketing services to adver-
4.4billion). We look at the business customer market in tisers from address services, design and creative tools to
which we compete and take into account those companies print, shipment and advertising effectiveness measurement.
operating as service providers in this market. These include The customer dialogue is cross-channel, personalised and
both companies offering end-to-end services and consoli- automated so that digital and physical items with inter
dators offering partial services. Our market share declined related content reach recipients according to a co-ordinated
slightly to 61.3% compared with the prior year (62.1%). timetable. Our digital services allow companies to deter-
mine their target groups by analysing the visits to their
websites or online shops.
Group Management Report General Information Business units and market positions
25
Due to increasing media convergence, we now include Worldwide portfolio of parcel and e-commerce services
all advertising media with external distribution costs (place- We have a dense network of parcel acceptance and drop-off
ment costs) in our domestic advertising market reporting. points in Germany. Recipients can choose whether they
The domestic advertising market increased by 0.2% in 2016 wish to receive their parcels during a specific delivery win-
to a volume of 24.4billion, primarily because companies dow, on the same day or as quickly as possible. They can
reallocated their advertising expenditures. Our share of this decide at short notice whether to have their parcels de
highly fragmented and stable market decreased slightly to livered to an alternative address or a Parcelshop. We help
8.7% (previous year, adjusted: 8.9%). our business customers to grow their online retail busi-
nesses. On request, we can cover the entire logistics chain
Domestic advertising market1, 2016
01/0 5
through to returns management.
Market volume: 24.4billion The German parcel market volume totalled around
10.1billion in 2016 (previous year: 9.5billion). We ex-
Competition 91.3%
panded our market share to 45.1% (previous year: 43.7%).
Deutsche Post 8.7%
We are also increasingly offering our e-commerce ser-
1
Includes all advertising media with external distribution costs; the placement costs vices internationally. In Europe, we continued to expand our
areshown as ratios to each other.
B2C network in the reporting year. We are improving our
Source: company estimate.
market access in France and the United Kingdom with
theacquisition of a minority interest in Relais Colis and
Sending mail and merchandise internationally thetakeover of UK Mail. Furthermore, we expanded our
We carry mail and light-weight merchandise shipments European parcel business to a total of 19 countries, includ-
across borders and provide international dialogue marketing the German domestic market, through co-operation
ing services. For business customers in key European mail agreements in Scandinavia, the Baltic states, Hungary and
markets, we offer international shipping services. For the Slovenia. We operate over 20,000 Parcelshops in Europe
growing e-commerce sector, we develop international ship- and have set up the first Packstations.
ping solutions to consumers (B2C). Our portfolio also com- Outside Europe, we brought another e-commerce de-
prises consulting and services for all physical and digital livery network online in Thailand, opened two fulfilment
dialogue marketing needs. Furthermore, we offer physical, centres Glossary, page 181, in the United States and India re-
hybrid and electronic written communications for inter spectively as well as one in Mexico. Centrally co-ordinated
national business customers. in Hong Kong, we support FC Bayern Munichs Chinese
The global market volume for outbound international online fan store. Due to increasing demand, we reinforced
mail was around 5.8billion in 2016 (previous year, ad- our international parcel network by adding two new distri-
justed: 5.6billion). Our market share remained at the bution centres in China and one in the United States.
prior-year level at 16.3%.
Domestic parcel market, 2016
01/0 7
International mail market (outbound), 2016 Market volume: 10.1 billion
01/0 6
Market volume: 5.8billion
Competition 54.9%
Competition 83.7% DHL 45.1%
DHL 16.3%

EXPRESS DIVISION Our virtual airline

As an express service provider, we operate a global network
Express services in more than 220 countries and territories consisting of several airlines, some of which we own 100%.
In the Express division, we transport urgent documents and The combination of our own and purchased capacities,
goods reliably and on time from door to door. Our global which include varied terms of contract, allows us to respond
network spans more than 220 countries and territories, in flexibly to fluctuating demand. Figure 01/08 illustrates how
which some 90,000 employees provide services to more our available capacity is organised and offered on the mar-
than 2.5million customers. ket. The largest buyer of this freight capacity is the DHL
Global Forwarding business unit.
Time-definite international shipments as our core business In the reporting year, we signed an agreement with Elbe
Our main product is Time Definite International (TDI), Flugzeugwerke GmbH to convert four Airbus A330-300
which is a service with a pre-defined delivery time. We aircraft from passenger to cargo planes. They will be used
alsoprovide industry-specific services to complement this predominantly to cover the medium to high demand for
product. For example, our Medical Express transport solu- cargo space capacity, which will both increase our flexibility
tion, which is tailored specifically to customers in the Life and improve our fuel efficiency per kilogram flown. Fur-
Sciences&Healthcare sector, offers various types of thermal thermore, we put additional Boeing 757 aircraft into oper-
packaging for temperature-controlled, chilled and frozen ation as part of our fleet renewal activities.
content. Collect and Return is used predominantly by cus-
tomers in high-tech industries: technical products are col-
lected from the user, taken in for repairs and then returned.
Available capacity
01/0 8
Block Space Agreement

guaranteed air cargo product. Air Capacity Sales, total spare
capacity average capacity
notutilisedby Block Space or
TDICoreonaplanned basis.
Express TDI core product
capacity based upon average
utilisation, adjusted on a
dailybasis.
BSA CORE ACS

27
International express business benefits from trade GLOBAL FORWARDING, FREIGHT DIVISION
The international express business is benefiting from cross-
border e-commerce and the growing importance of small The air, ocean and overland freight forwarder
and medium-sized enterprises in international trade. The Our air, ocean and overland freight forwarding services not
strong volume growth of our TDI product compared with only include standardised transports but also multimodal
the competition indicates that we have maintained our and sector-specific solutions as well as individualised indus-
position as global market leader. trial projects.
Compared with other divisions, our operating business
Expanding our network in the Europe region model is asset-light, as it is based upon the brokerage of
In the Europe region, we have completed the expansion of transport services between our customers and freight car-
our global hub in Leipzig. Since beginning expansion activ- riers. Our global presence and network allow us to offer
ities at the end of 2013, 1,300 new jobs have been created at efficient routing and multimodal transports.
that location.
Air freight market, 2015: top 4
01/0 9
Expanding service in the Americas region Thousand tonnes1
In the Americas region, we opened more than 500 new ser-
Panalpina 836
vice points in 2016 and, specifically in light of growing
e-commerce volumes, hired over 600 new employees. The DB Schenker 1,128
expansion of our global hub in Cincinnati was also com-
Kuehne+Nagel 1,250
pleted, including space for 16 additional aircraft.
Supporting development in Asia

DHL 2,109
In June2016, a new gateway in Japan was put into operation
in the important Asia Pacific market. In the fourth quarter, 1
Data based solely upon export freight tonnes.
we also opened our South Asia Hub in Singapore. It is the Source: annual reports, publications and company estimates.
first hub in the industry in South Asia to have a fully auto-

mated Express parcel sorting and processing system. In Air freight market leadership solidified
order to improve trade relations with Cambodia and better According to the International Air Transport Association
connect the country internationally, a new flight was intro- (IATA), the worldwide freight tonne kilometres flown dur-
duced between Phnom Penh and Bangkok, one of our hubs ing the reporting year grew by 3.8%. Despite weak demand,
in the Asia Pacific region. capacities continue to grow, especially on passenger planes.
Furthermore, low fuel prices are providing an incentive to
Reliable partner in the MEA region put former cargo planes back into operation. With around
In the MEA (Middle East and Africa) region, the Middle 2.1million transported export freight tonnes, we remained
East continued to suffer from enormous geopolitical influ- the air freight market leader in 2015, as shown in table 01/09.
ences in 2016. Despite the situation, we were able to main-
tain our operations whilst adhering to legal requirements Further consolidation in the ocean freight market
and ensuring the safety of our employees. We opened an- The ocean freight market underwent significant changes in
other facility in Jeddah in order to support global trade to 2016, one of which was the insolvency of the Korean ship-
and from Saudi Arabia. We are also the first international ping company Hanjin. Nonetheless, the market grew mod-
logistics provider to offer our customers a direct flight to the erately. Volume growth was driven primarily by the routes
harbour city. In the sub-Saharan region, we opened a new between the Asia Pacific region and Europe, which experi-
facility in Uganda to accommodate the increase in volumes. enced capacity problems, particularly towards the end of
the year. Overall, surplus capacities continue to shape the
container ship market. Freight carriers are attempting to
adjust to this situation through mergers and alliances. With
around 2.9million transported twenty-foot equivalent SUPPLY CHAIN DIVISION

units, we remained the second-largest provider of ocean
freight services in 2015, as shown in the following table. Customer-centric outsourcing solutions
As the worlds leading contract logistics provider, we offer
Ocean freight market, 2015: top 4
01/1 0
our clients high-quality and customised supply chain solu-
Thousand TEUs1 tions based on standardised modular components including
warehousing, transport and value-added services.
Panalpina 1,594
The supply chain industry is benefiting greatly from
DB Schenker 1,942 technological advances, which provide visibility and effi-
cient logistics operations as well as predictive analytics for
DHL 2,930 standardised warehouse management and transport solu-
tions the foundation for an integrated supply chain. Plan-
ning, sourcing, production, packaging, repairs and returns
Kuehne+Nagel 3,820
are core services in contract logistics. We complement these
1
Twenty-foot equivalent units. offerings with value-added services and real estate solutions,
Source: annual reports, publications and company estimates. serving every aspect of the supply chain.
European overland freight market grows moderately Industry expertise in key sectors
The European road transport market grew again slightly in We have in-depth knowledge and experience in a variety of
the reporting year, after being virtually stagnant in the prior sectors, with a strategic focus on Life Sciences&Healthcare,
year. Oil prices fell again, whilst volumes increased in many Automotive and Technology. We grew in the year under re-
European countries. In what continues to be a competitive view with our acquisition of Mitsafetrans S.r.l. and a subsid-
environment, DHL remained the second-largest provider in iary. The companies provide logistics services for the tech-
2015 with a market share of 2.2%. nology, pharmaceutical and high-tech industries in Italy.
The Life Sciences&Healthcare sector is increasingly
European road transport market, 2015: top 5
01/1 1
outsourcing parts of its supply chains to providers who
Market volume: 193billion1 canensure compliance with stringent regulatory require-
Kuehne+Nagel 1.3%
ments.Rising demand for packaging services, temperature-
controlled transport, warehousing and direct-to-market
DSV 1.7%
solutions, Glossary, page 181, is driving growth in this sector.
Dachser 1.8% In the Automotive sector, production is shifting in-
DHL 2.2%
creasingly to emerging markets such as China, India and
Mexico. Integrated solutions such as Lead Logistics Pro-
vider (LLP), Glossary, page 181, offer growth o
pportunities in
DB Schenker 3.3%
this highly competitive outsourcing sector.
1
Total market for 25 European countries, excluding bulk goods and specialties transports.
Source: Market Intelligence Study DHL 2016 based upon Eurostat, financial publications,
IHS[2016].
29
Logistics and value-added services along the supply chain

01/12
Return Plan
Bringing it back for repair Laying the foundation
or when its not needed 6 1 for an efficient supply chain
Returns Raw materials
Distribution Inbound
transport
Deliver 5 2 Source
Getting it where it needs to be Getting the materials
at the time required
Warehousing Production
flows
Value-added services
Store&Customise 4 3 Make
Getting it ready to sell Supporting product manufacturing
End-to-end supply chain Supply Chain services
Companies in the fast-paced Technology sector require an Contract logistics market, 2015: top 10
01/1 3
agile supply chain to handle fast-moving products with Market volume: 184billion
short life-cycles quickly and cost-effectively. Flexible solu-
DHL 7.6%
tions that allow our customers to respond to market de-
XPO Logistics1 2.5%
mand are creating business opportunities in this sector.
Kuehne + Nagel 2.2%
Ceva 1.8%
Leading position in a fragmented market Hitachi 1.6%
DHL remains the global market leader in contract logistics, SNCF Geodis 1.4%
with a market share of 7.6% (2015) and operations in more UPS 1.3%
than 50 countries. The top ten players only account for Neovia 1.3%
DB Schenker Logistics 1.3%
around 22% of an estimated 184billion market. We lead
Ryder 1.2%
the market in mature regions such as North America and
Europe and are well positioned in rapidly growing markets 1
Market position improved through acquisition of Con-way Inc. and Norbert Dentressangle,
amongst others.
such as India, emerging markets throughout the Asia Pacific Source: Transport Intelligence; revenue figures are estimates based upon gross revenue
region and Latin America. withexternal customers; exchange rates as at 2015.
Objectives and strategies comprehensive Express network. Our general objective is to

increase our presence where the long-term growth potential
CORPORATE STRATEGY is greatest. Indeed, we aim to generate a minimum of 30%
of Group revenue in emerging markets by the year 2020.
Strategy 2020 sets priorities for our investments and actions Our strategy is designed to establish a unique market
With our Strategy 2020: Focus.Connect.Grow. Deutsche presence by the year 2020 both geographically and in
Post DHL Group underscores its global leadership in the terms of our portfolios performance. Our aim is to be inter
logistics industry. In the year under review, we again took a nationally renowned not only as a highly customer-centric
close look at our initial situation. We reaffirm that increas- company but also as quality leaders. When people think
ing digitalisation, accelerated growth in the e-commerce logistics, we want them to think Deutsche Post DHL Group.
segment and momentum in developing and emerging coun-
tries offer us significant opportunities. In line with our strat-
egy, the following priorities for investments and actions STRATEGY AND GOALS OF THE DIVISIONS
have been set to date:
Focus: We are focussing on our core mail and logistics Post- eCommerce- Parcel division
business. In addition to our three goals of being the provider, We want to offer our customers the best service at all times,
employer and investment of choice, we are working to be- at the highest level of quality and at reasonable prices.
come the benchmark for responsible business. In order to Therefore, we extend our offering in the Post business unit
deliver consistent, first-class service to our customers, we based on market demand, continuously expand our range
conduct frequent surveys to determine their needs. Our of services in the German parcel business and develop digi
employees are equipped with the knowledge and tools to tal service offerings.
enable them to take those customer requirements into As part of our Group-wide Certified initiative, we in-
account when designing our product offering. We see our- tend to certify all employees in the division by 2020. This
selves as a family of different divisions, each focused upon is because for us dedicated and happy employees are the key
defined markets and goals. to high-quality performance. In addition, we are systemat-
Connect: We are working to improve cross-divisionally ically driving forwards the networking of our division by
on a continuous basis. In doing so, we are concentrating co-operating with institutions outside the Group as well as
upon initiatives that create value for various stakeholders, with the other divisions.
for example, environmentally-friendly solutions and an op- In order to benefit from growing e-commerce, we are
timised IT landscape. Certified is our Group-wide initia- expanding into new markets and segments. We are also ex-
tive that enables all employees to gain specific skills and panding our networks and product offerings in our existing
knowledge relevant to their roles. Every employee in the markets. Furthermore, we are engaged in growth areas such
Group is to be certified internally. The employee motivation as electric mobility and food logistics.
and customer-centric culture this fosters not to mention In order to continue to grow profitably, we are design-
the improved, holistic understanding of operational pro- ing a market-based cost structure by adapting our networks
cesses help to differentiate our services in the market to the dynamic market conditions and shipment structures.
internationally. During the reporting year, we developed We are also cutting costs wherever possible and sensible,
new modules and have already succeeded in certifying a whilst investing in technologies, automation, innovation
great number of employees. and growth areas.
Grow: We intend to benefit from growth in the e-com-
merce segment and in developing and emerging markets.
For instance, we have invested in the domestic and cross-
border parcel business in Europe as well as in our already
Group Management Report General Information Objectives and strategies
31
EXPRESS division IT in the Global Forwarding business unit will be re-

Our return on sales rises when growing volumes lead to newed in accordance with the IT Renewal Roadmap adopted
economies of scale in the network, innovation and automa- in October2015. This will rely on a flexible IT architecture
tion improve productivity and costs are strictly managed. that leverages and enhances existing systems whilst incorp
We optimise indirect costs through standardised processes. orating advanced off-the-shelf solutions that have been
For example, we are streamlining our IT system architecture proven within the industry. In future, we shall focus on
step by step, whilst ensuring adherence to global standards improved shipment visibility, exception management and
and quality requirements, especially as regards facilities and electronic document management.
operating materials. We are working continuously to improve our customer
We concentrate upon items whose size and weight op- orientation and expand our range of services. For example,
timally match our network and thereby create economies of in the Freight business unit we introduced a virtual over-
scale. In terms of our pricing policy, we encourage global land transport marketplace, where companies canmatch
co-ordination and discipline. At the same time, we continu their transport needs with transport providers c apacities
ously improve our customer approach. Using global cam- and thereby find the appropriate provider online.
paigns, we specifically target small and medium-sized busi-
nesses which could benefit the most from increasing exports. SUPPLY CHAIN division
Most of our costs are attributable to the air and ground We want to be the Supply Chain solutions company for the
network. We replace old aeroplanes with newer, more effi- world, capitalise on market opportunities and grow faster.
cient, and thus more cost-effective aircraft. We sell available To achieve this, we are implementing our Supply Chain
cargo space to freight and forwarding companies, especially Strategy 2020 along the three pillars of Focus, Connect and
to DHL Global Forwarding, improving our network utilisa- Grow.
tion and reducing costs in the process. On the ground, pro- With Focus, we are increasing our efficiency and quality
cesses are automated and standardised. by standardising processes worldwide and reducing com-
Our Certified International Specialist (CIS) training plexity, thus facilitating innovative and customer-centric
programme ensures that our employees have the requisite solutions.
knowledge of the international express business at their dis- The Connect pillar is about connecting people and pro-
posal. Training is both functional and cross-functional, and cesses. A lean management structure and the use of Centres
it is carried out by our own employees. This adds to mutual of Excellence will improve our cost structure and establish
understanding whilst reinforcing a team atmosphere and proven structures. The Certified Supply Chain Specialist
loyalty within the division. We want to sustainably motivate programme empowers and motivates our employees world-
our employees around the world and systematically recog- wide to perform at their best and harmonises our company
nise outstanding performance. culture.
Finally, the Grow pillar focuses on those market seg-
GLOBAL FORWARDING, FREIGHT division ments that offer higher profitability and stronger growth.
We aim to increase the gross profit, page 63, of the Global Aclear set of global products and key sectors as well as a
Forwarding business unit, whereby we shall improve the geographical shift towards fast-growing markets will be key
profitability of contracts through optimised end-to-end drivers to accelerate future growth.
management coupled with improved revenue management.
In addition, we intend to bring costs in line with our busi-
ness performance. Ultimately, we aim to bring productivity
back to or beyond the level achieved in previous years.
Group management The asset charge is calculated on the basis of the

weighted average cost of capital, or WACC, which is defined
FINANCIAL PERFORMANCE INDICATORS as the weighted average net cost of interest-bearing liabil
ities and equity, taking into account company-specific risk
Impact on management compensation factors in accordance with the Capital Asset Pricing Model.
Deutsche Post DHL Group uses both financial and non- A standard WACC of 8.5% is applied across the divisions
financial performance indicators in its management of the and this figure also represents the minimum target for pro-
Group. The monthly, quarterly and annual changes in these jects and investments within the Group. The WACC is gen-
indicators are compared with the prior-year data and the erally reviewed once annually on the basis of the current
forecast data to assist in making management decisions. The situation on the financial markets. To ensure better compar
year-to-year changes in financial and non-financial perform ability with previous figures, in 2016 the WACC was main-
ance metrics portrayed here are also particularly relevant tained at a constant level compared with the previous years.
for calculating management remuneration. The Groups The asset charge calculation is performed each month
financial performance indicators are intended to preserve a so that fluctuations in the net asset base can also be taken
balance between profitability, an efficient use of resources into account during the year. Table 01/14 shows the compos
and sufficient liquidity. The performance of these indicators ition of the net asset base.
in the reporting year is described in the Report on economic
position on page 47ff. Free cash flow facilitates liquidity management
Along with EBIT and EAC, cash flow is another key perform
Profit from operating activities measures earnings power ance metric used by Group management. This is targeted at
The profitability of the Groups operating divisions is meas- maintaining sufficient liquidity to cover all of the Groups
ured as profit from operating activities (EBIT). EBIT is cal- financial obligations from debt repayment and dividends, in
culated by deducting materials expense and staff costs, de- addition to operating payment commitments and invest-
preciation, amortisation and impairment losses, as well as ments. Cash flow is calculated using the cash flow statement.
other operating expenses from revenue and other operating Operating cash flow (OCF) includes all items that are related
income, and adding net income from investments accounted directly to o
perating value creation. OCF is calculated by
for using the equity method. Interest and other finance adjusting EBIT for changes in non-current assets (depreci-
costs/other financial income are shown in net financial in- ation, amortisation and (reversals of) impairment losses,
come/net finance costs. To enable a comparison of divisions, net income/loss from disposals), other non-cash income
return on sales is calculated as the ratio of EBIT to revenue. and expense, dividends received, taxes paid, changes in pro-
visions and other non-current assets and liabilities. Another
EBIT after asset charge promotes efficient use of resources key parameter of OCF is net working capital. Effective man-
An additional key performance indicator for the Group is agement of net working capital is an important way for the
EBIT after asset charge (EAC). EAC is calculated by subtract- Group to improve cash flow in the short to medium term.
ing the cost of capital component, or asset charge, from EBIT. Free cash flow (FCF) as a management-related performance
Making the asset charge a part of business decisions en- indicator is calculated on the basis of OCF by adding/sub-
courages the efficient use of resources and ensures that the tracting the cash flows from capital expenditure, acquisi-
operating business is geared towards increasing value sus- tions and divestitures as well as net interest paid. Free cash
tainably whilst generating increasing cash flow. flow is regarded as an indicator of how much cash is avail-
able to the company at the end of a reporting period for
paying dividends or repaying debt.
Group Management Report General Information Group management
33
Calculations
01/1 4
Revenue EBIT EBIT
Other operating income Asset charge Depreciation, amortisation

andimpairment losses
Materials expense Net asset base
Weighted average cost of capital Net income/loss from disposal
Staff costs (WACC) ofnon-current assets
Depreciation, amortisation Non-cash income and expense
Other operating expenses EAC Change in provisions
EBIT after asset charge Change in other non-current assets

Net income from investments andliabilities
accountedfor using the equity method
Dividends received
Operating assets
Income taxes paid
EBIT Intangible assets
Property, plant and equipment
Operating cash flow before
from operating
rofit
P changesin working capital
activities Goodwill
(networking capital)
T rade receivables
(includedinnetworking capital) 1 Changes in net working capital
Other non-current operating assets2
Net cash from/used in operating
Operating liabilities activities (operating cash flowOCF)
Operating provisions Cash inflow/outflow arising from
(notincludingprovisions for change in property, plant and
pensionsand similar obligations) equipment and intangible assets
Trade payables
(includedinnetworking capital)1 Cash inflow/outflow arising from
Other non-current operating acquisitions /divestitures
liabilities2
Net interest paid
Net asset base
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.
NON-FINANCIAL PERFORMANCE INDICATORS Disclosures required by takeover law

Results of Employee Opinion Survey used as a management Disclosures required under sections 289(4) and 315(4) of
indicator the Handelsgesetzbuch (HGB German Commercial Code)
Our annual worldwide Employee Opinion Survey shows us and explanatory report
how we are perceived as a group from the perspective of our
employees. We place particular significance on the surveys Composition of issued capital, voting rights and transfer
indication of Employee Engagement and of how employees ofshares
rate the leadership behaviour of their superiors. The Active As at 31December2016, the companys share capital
Leadership indicator is thus used in the calculation of totalled 1,240,915,883 and was composed of the same
bonuses for our executives. The results of the Employee number of no-par value registered shares. Each share car-
Opinion Survey carried out in the reporting year can be ries thesame statutory rights and obligations and entitles
found in the Employees section on page 67. the holder to one vote at the Annual General Meeting
(AGM). No individual shareholder or group of shareholders
Reducing dependency upon fossil fuels is entitled to special rights, particularly rights granting
We aim to reduce our dependency upon fossil fuels, im- powers of control.
prove our carbon efficiency and lower costs. The corres The exercise of voting rights and the transfer of shares
ponding target of our GoGreen environmental protection are based upon the general legal requirements and the com-
programme is greenhouse gas efficiency, which we measure panys Articles of Association, which do not restrict either
using a carbon efficiency index (CEX). CEX is based upon of these activities. Article 19 of the Articles of Association
the business unit-specific emission intensity figures, which sets out the requirements that must be met in order to at-
are indexed to the base year. We quantify the greenhouse tend the AGM as a shareholder and exercise a voting right.
gas emissions upon which our CEX is based in accordance Only persons entered in the share register shall be recog-
with the Greenhouse Gas Protocol Standards and DIN EN nised as shareholders by the company. The Board of Man-
16258; those attributable to our European air freight busi- agement is not aware of any agreements between sharehold-
ness are calculated in accordance with the requirements of ers that would limit voting rights or the transfer of shares.
the European Union Emissions Trading System (EU ETS). In 2016, members of the Board of Management again
Pursuant to DIN EN 16258, all gases that are harmful to the received stock appreciation rights (SARs) as a long-term
environment must be disclosed in the form of CO2 equiva- remuneration component under the Long-Term Incentive
lents (CO2e). This indicates the ratio of the respective emis- Plan provided that they invest in each tranche of the plan,
sions to a matching performance indicator in the Group. preferably in Deutsche Post AG shares but alternatively in
CEX is a management indicator of non-financial perform cash. If a Board of Management member sells the shares
ance. The figures obtained for the reporting year are pro- included in their personal investment for the tranche or
vided in the section on Corporate responsibility on page 69f. disposes of their personal cash investment before the sched-
uled waiting period of four years has expired, all SARs from
that tranche will be forfeited.
As part of the Share Matching Scheme, one of the com-
panys share-based payment schemes, some Group execu-
tives authorised to participate must, and others may, use a
portion of their annual bonus to purchase shares within the
scheme. According to the underlying terms, these shares
are subject to a four-year lock-up period.
Shareholdings exceeding 10% of voting rights

KfW Bankengruppe (KfW), Frankfurt am Main, is our
largest shareholder, holding 20.5% of the share capital. The
Federal Republic of Germany holds an indirect stake in
Group Management Report General Information Group management Disclosures required by takeover law
35
Deutsche Post AG via KfW. According to the notifications 236,267,019.00 (Authorised Capital 2013, article 5(2) of
we have received pursuant to sections 21 et seq. of the Wert the Articles of Association). When new shares are issued on
papierhandelsgesetz (WpHG German Securities Trading the basis of Authorised Capital 2013, the shareholders are
Act), no other direct or indirect shareholders own more entitled in principle to subscription rights. Such rights may
than 10% of the share capital. only be disapplied subject to the requirements specified in
article 5 (2) of the Articles of Association and subject to the
Appointment and replacement of members of the Board consent of the Supervisory Board. Details may be found in
ofManagement article 5 (2) of the Articles of Association of the company.
The members of the Board of Management are appointed Authorised Capital 2013 is a financing and acquisition
and replaced in accordance with the relevant legal provi- instrument in accordance with international standards that
sions (sections 84 and 85 of the Aktiengesetz (AktG G
erman allows the company to increase equity quickly, flexibly and
Stock Corporation Act) and section 31 of the Mitbestim cost-effectively. The authorised capital is equivalent to less
mungsgesetz (MitbestG German Co-determination Act)). than 20% of the share capital. Authorised Capital 2013,
In accordance with section 84 of the AktG and section 31 of which originally amounted to 240million, was used in a
the MitbestG, appointments by the Supervisory Board shall total amount of 3,732,981.00 in financial years 2014 and
be for a maximum term of five years. Re-appointments or 2015 in order to finance a share buy-back to settle share-
extensions of the term of office are permitted for a max based payments due to executives in these years.
imum of five years in each case. Article 6 of the Articles of The Board of Management utilised the authorisation it
Association stipulates that the Board of Management must received in an AGM resolution passed on 25May2011, sub-
have at least two members. Beyond that, the number of ject to the consent of the Supervisory Board, in the full
board members is determined by the Supervisory Board, amount in December2012 by issuing a convertible bond in
which may also appoint a chairman and deputy chairman the aggregate principal amount of 1billion. By 31Decem-
of the Board of Management. ber2016, a total of 28,167,028 shares had been issued to
holders of bonds after exercise of their conversion options.
Amendments to the Articles of Association As at 31December2016, the share capital had been in-
In accordance with section 119(1), number 5 and section creased on a contingent basis by up to 46,832,972.00 for
179(1), sentence 1 of the AktG, amendments to the Articles the purpose of granting shares to the holders or creditors of
of Association are adopted by resolution of the AGM. In ac- the convertible bond after exercise of their rights in order
cordance with article 21(2) of the Articles of Association in to settle these rights or to fulfil the conversion obligations
conjunction with sections 179(2) and 133(1) of the AktG, (Contingent Capital 2011, article 5(3) of the Articles of
such amendments generally require a simple majority of the A
ssociation).
votes cast and a simple majority of the share capital repre- An AGM resolution was passed on 29May2013 author-
sented on the date of the resolution. In such instances where ising the Board of Management, subject to the consent of
the law requires a greater majority for amendments to the the Supervisory Board, to issue bonds with warrants, con-
Articles of Association, that majority is decisive. Under vertible bonds and/or income bonds as well as profit partici
a rticle 14 (7) of the Articles of Association, the Supervisory pation certificates, or a combination thereof (hereinafter
Board has the authority to approve amendments to the referred to collectively as bonds), in an aggregate princi-
Articles of Association in cases where the amendments pal amount of up to 1.5billion, on one or more occasions
affect only the wording. on or before 28May2018, thereby granting options or con-
version rights for up to 75million shares with a total share
Board of Management authorisation, particularly regarding in the share capital not to exceed 75million. The bond
issue and buy-back of shares conditions may also stipulate an obligation to exercise op-
The Board of Management is authorised, subject to the con- tions or conversion rights or may entitle the company to
sent of the Supervisory Board, to issue up to 236,267,019 grant the bond holders or creditors shares in the company
new, no-par value registered shares on or before 28May2018 in lieu of payment of all or part of the sum of money owed,
in exchange for cash and/or non-cash contributions and either at the time of maturity of the bonds or at another time.
thereby increase the companys share capital by up to The share capital was increased on a contingent basis by up
to 75million in order to grant shares to the holders or Articles of Association). Further details may be found in the
creditors of the bonds after exercise of their options or con- motion adopted by the AGM under agenda item 8 of the
version rights or to fulfil their option or conversion obliga- AGM of 27May2014.
tions, or to grant them shares in lieu of monetary payment As at 31December2016, 11,808,168 Performance Share
in accordance with the bond conditions (Contingent Cap Units, which were issued in financial years 2014 to 2016,
ital 2013, article 5 (4) of the Articles of Association). When were outstanding.
issuing bonds, shareholders subscription rights may only Finally, the AGM of 27May2014 authorised the com-
be disapplied subject to the terms of the aforementioned pany to buy back shares on or before 26May2019 up to an
resolution and subject to the consent of the Supervisory amount not to exceed 10% of the share capital existing as at
Board. Further details may be found in the motion adopted the date of the resolution. Such authorisation is subject to
by the AGM under agenda item 7 of the AGM of 29May2013. the proviso that at no time should the shares thus acquired,
Authorisation to issue bonds is standard practice together with the shares already held by the company,
amongst publicly listed companies. This allows the company account for more than 10% of the share capital. The shares
to finance its activities flexibly and promptly and gives it the may be purchased through the stock market, a public offer,
financial leeway necessary to take advantage of favourable a public call for offers of sale from the companys sharehold-
market conditions at short notice, for example by offering ers or by some other means in accordance with section 53a
bonds with options or conversion rights, or conversion ob- of the AktG. The shares purchased may be used for any le-
ligations on shares in the company as a consideration within gally permissible purpose. In addition to a sale via the stock
the context of company mergers, and when acquiring com- exchange or by public offer to all shareholders, it is permit-
panies or shareholdings in companies. To date, the Board ted in particular to use the shares with pre-emptive sub-
of Management has not exercised this authority. scription rights disapplied in accordance with the provi-
An AGM resolution was passed on 27May2014 author- sions of the authorisation resolution or to call in the shares
ising the Board of Management to issue up to 40million without an additional resolution of the AGM. Further details
Performance Share Units with pre-emptive subscription may be found in the motion adopted by the AGM under
rights to a total of up to 40million shares with a total share agenda item 6 of the AGM of 27May2014.
in the share capital not to exceed 40million, subject to the In addition to this, the AGM of 27May2014 also author-
provisions of the authorisation resolution, on or before ised the Board of Management, within the scope specified
26May2019 to members of the management of entities in in agenda item 6, to buy back shares, including through the
which the company is the majority shareholder and to ex- use of derivatives. This is to occur by servicing options that,
ecutives of the company and the entities in which it is a upon their exercise, require the company to repurchase
majority shareholder. The Performance Share Units may shares (put options), by exercising options that, upon their
also be issued by entities in which the company is the ma- exercise, grant the company the right to buy back shares
jority shareholder with the consent of the Board of Manage- (call options), as a result of purchase agreements where
ment. The issue of shares arising from the subscription there are more than two trading days between conclusion
rights associated with the Performance Share Units depends of the purchase agreement for Deutsche Post shares and
upon certain performance targets being met after expiry of servicing by way of the delivery of Deutsche Post shares
a four-year waiting period, with it being possible to issue up (forward purchases) or by servicing or exercising a combin
to four shares for every six subscription rights granted, if ation of put options, call options and/or forward purchases.
and insofar as performance targets for the share price, All share acquisitions using the aforementioned derivatives
which have been specified in detail, are met, and up to two are limited to a maximum of 5% of the share capital existing
shares if and insofar as certain outperformance targets on the date of the resolution. The term of the individual
based upon the percentage change of the STOXX Europe 600 derivatives may not exceed 18 months, must expire by no
Index are met. The share capital was increased on a contin- later than 26May2019 and be selected such that shares may
gent basis by up to 40million in order to grant shares in not be repurchased by exercising the derivatives after
the company to the executives entitled to subscription 26May2019. Further details may be found in the motion
rights, in accordance with the provisions of the authorisa- adopted by the AGM under agenda item 7 of the AGM of
tion resolution (Contingent Capital 2014, article 5(5) of the 27May2014.
Group Management Report General Information Disclosures required by takeover law
37
It is standard business practice amongst publicly listed credit line as well as its share of outstanding loans and to
companies in Germany for the AGM to authorise the com- request repayment. The terms and conditions of the bonds
pany to buy back shares. The authorisation to repurchase issued under the Debt Issuance Programme established in
shares using derivatives is merely intended to supplement March2012 and of the convertible bond issued in Decem-
share buy-back as a tool and give the company the oppor- ber2012 also contain change-in-control clauses. In the event
tunity to structure share repurchase in an advantageous of a change in control within the meaning of the terms and
manner. conditions, creditors are, under certain conditions, granted
Utilising part of the authorisation to repurchase shares the right to demand early redemption of the respective
it received from an AGM resolution passed on 27May2014, bonds. Furthermore, a framework agreement exists con-
the Board of Management resolved on 1March2016 a share cerning the supply of fuel, based upon which fuel in the
buyback programme for up to 60million shares at a total value of a high double-digit million amount was obtained
purchase price (not including transaction costs) of up to in the reporting year and which, in the event of a change in
1billion. The purchased shares were to be either retired, control, grants the supplier the right to bring the business
used to service long-term remuneration plans or used to relationship to a close without notice.
meet potential obligations if rights accruing under the In the event of a change in control, any member of the
2012/2019 convertible bond are exercised. The buyback Board of Management is entitled to resign their office for
programme began on 1April2016 and will end no later than good cause within a period of six months following the
6March2017. By 31December2016, 29,587,229 shares had change in control after giving three months notice to the
been repurchased through the programme. A portion of the end of a given month, and to terminate their Board of
purchased shares have been designated for use as matching Management contract (right to early termination). If the
shares from 2017 to 2021 as part of the Share Matching right to early termination is exercised or a Board of Manage
Scheme. On 25October2016, the Board of Management of ment contract is terminated by mutual consent within nine
Deutsche Post AG resolved to implement another share buy- months of the change in control, the Board of Management
back programme for up to 3million shares after the current member is entitled to payment to compensate the remain-
programme ends. The shares purchased as part of this pro- ing term of their Board of Management contract. Such pay-
gramme will be used exclusively for the purpose of making ment is limited to the cap pursuant to the recommendation
them available as investment shares for the 2017 tranche as of No.4.2.3 of the German Corporate Governance Code,
part of the Share Matching Scheme. As at 31December2016, subject to the specifications outlined in the remuneration
the company held 29,587,229 treasury shares. report. With respect to options from the Long-Term Incen-
Any public offer to acquire shares in the company is tive Plan, the Board of Management member will be treated
governed solely by law and the Articles of Association, in- as if the waiting period for all options had already expired
cluding the provisions of the Wertpapiererwerbs- und ber upon cessation of the Board of Management contract. The
nahmegesetz (WpG German Securities Acquisition and options eligible for exercise may then be exercised within
Takeover Act). The AGM has not authorised the Board of six months of cessation of the contract. With regard to the
Management to undertake actions within its sphere of com- Share Matching Scheme for executives, the holding period
petence to block possible takeover bids. for the shares will become invalid with immediate effect in
the event of a change in control of the company. The partici
Significant agreements that are conditional upon a change pating executives will receive the total number of matching
incontrol following a takeover bid and agreements shares corresponding to their investment in due course. In
withmembers of the Board of Management or employees such case, the employer will be responsible for any tax dis-
providing for compensation in the event of a change advantages resulting from reduction of the holding period.
incontrol Exempt from this are taxes normally incurred after the
Deutsche Post AG holds a syndicated credit facility with a holding period.
volume of 2billion that it has taken out with a consortium
of banks. If a change in control within the meaning of the
contract occurs, each member of the bank consortium is
entitled under certain conditions to cancel its share of the
Research and development period; the rest is made up of an annual bonus linked to the
companys yearly profits, with 50% of the annual bonus
As a service provider, the Group does not engage in research flowing into a medium-term component with a three-year
and development activities in the narrower sense and there- calculation period (deferral). Thus less than a quarter of the
fore has no significant expenses to report in this connection. variable remuneration component is granted on the basis of
a one-year calculation. The amount of the annual bonus is
set at the due discretion of the Supervisory Board on the
Remuneration of the Board basis of the companys performance. The individual annual
ofManagement and Supervisory Board bonus amounts reflect the extent to which predefined tar-
gets are achieved, missed or exceeded. The maximum
Remuneration structure of the Group Board of Management amount of the annual bonus may not exceed 100% of the
in financial year 2016 annual base salary.
The remuneration paid to individual Board of Management The same criteria were used to calculate the amount of
members for financial year 2016 was determined by the the annual bonus for the reporting year as for the previous
Supervisory Board, which held consultations to resolve on year. A key parameter for all Board of Management mem-
the total remuneration to be paid to the individual members bers is the Groups EBIT after asset charge performance met-
of the Board of Management, including the main contrac- ric, including the asset charge on goodwill before goodwill
tual elements. In so doing, it obtained advice from an inde- impairment (EAC). For the Board of Management members
pendent remuneration consultant. in charge of the Post- eCommerce- Parcel, Express, Global
The Board of Management remuneration reflects the Forwarding, Freight and Supply Chain divisions, the EAC of
size and global reach of the company, its economic and their respective division is also a key parameter. The Groups
financial situation and the roles and achievements of the reported free cash flow is one of the targets applicable to all
individual members. It is set to ensure competitiveness with members of the Board of Management. Furthermore, an
comparable German and international companies, thus employee-related target is agreed with all Board of Manage-
incentivising the Board of Management members to deliver ment members based upon the annual Employee Opinion
maximum performance and achieve results. Survey, as are additional targets.
The remuneration paid to the Board of Management for Achievement of the upper targets for the financial year
2016 is in line with standard market practice, appropriate to that have been agreed based upon demanding objectives is
the tasks involved and designed to reward performance; rewarded with the maximum annual bonus. If the targets
itcomprises fixed (non-performance-related) elements and specified for the financial year are only partially reached or
variable (performance-related) elements, which include completely missed, the annual bonus will be paid on a pro-
short, medium and long-term incentives. The remuneration rata basis or not at all.
as a whole as well as its variable components have been Even if the agreed targets are reached, the annual bonus
capped. is not paid out in full in a single instalment. Instead, 50% of
Non-performance-related components are the annual the annual bonus flows into a medium-term component
base salary (fixed annual remuneration), fringe benefits and with a three-year calculation period (performance phase of
pension commitments. The annual base salary is paid in one year, sustainability phase of two years). That medium-
twelve equal monthly instalments retroactively at the end term component will be paid out after expiry of the sustain-
of each month. Fringe benefits mainly comprise the use of ability phase subject to the condition that EAC an indica-
company cars, supplements for insurance premiums and tor of sustainability be reached during the sustainability
special allowances and benefits for assignments outside the phase. Otherwise, payment of the medium-term compo-
home country. nent is forfeited without compensation. This demerit system
The variable remuneration paid to the Board of Manage puts greater emphasis on sustainable company development
ment is almost entirely medium and long-term based. More in determining Board of Management remuneration and
than half of the variable target remuneration consists of a sets long-term incentives.
long-term incentive plan (LTIP) with a four-year calculation
Group Management Report General Information Research and development Remuneration of the Board ofManagement
and Supervisory Board 39
Stock appreciation rights (SARs) were also granted in Provisions to cap severance payments pursuant to the
2016 as a long-term remuneration component based upon Corporate Governance Code recommendation, change-of-
the LTIP authorised by resolution of the Supervisory Board control provisions and post-contractual non-compete clauses
(2006 LTIP). In accordance with the recommendation of the German
Each SAR entitles the holder to receive a cash settlement Corporate Governance Code (DCGK), Board of Manage-
equal to the difference between the average closing price of ment contracts contain a provision stipulating that in the
Deutsche Post shares for the five trading days preceding the event of premature termination of a Board of Management
exercise date and the exercise price of the SAR. In 2016, the members contract, the severance payment may compensate
members of the Board of Management each made a perno more than the remaining term of the contract. The sev-
sonal financial investment consisting of 10% of their annual erance payment is limited to a maximum amount of two
base salary. The waiting period for the stock appreciation years remuneration including fringe benefits (severance
rights is four years from the date on which they were payment cap). The severance payment cap is calculated ex-
granted. After expiration of the waiting period, and pro- clusive of any special remuneration or the value of rights
vided an absolute or relative performance target has been allocated from LTIPs.
achieved, some or all of the SARs can be exercised for a In the event of a change in control, any member of the
period of two years. Any SARs not exercised during the two- Board of Management is entitled to resign from office for
year period will expire. good cause within a period of six months following the
To determine how many, if any, of the SARs granted can change in control, after giving three months notice by the
be exercised, the average share price or the average index end of a given month, and to terminate their Board of Man-
value for the reference period is compared with that of the agement contract (right to early termination).
performance period. The reference period comprises the The contractual provisions stipulate that a change in
last 20 consecutive trading days prior to the issue date. The control exists if a shareholder has acquired control within
performance period is the last 60 trading days before the the meaning of section 29(2) of the Wertpapiererwerbs-
end of the waiting period. The average (closing) price is und bernahmegesetz (WpG German Securities Acqui-
calculated as the average closing price of Deutsche Post sition and Takeover Act) via possession of at least 30% of
shares in Deutsche Brse AGs Xetra trading system. the voting rights, including the voting rights attributable to
A maximum of four out of every six SARs can be earned such shareholder by virtue of acting in concert with other
via the absolute performance target, and a maximum of two shareholders as set forth in section 30 of the WpG or if a
via the relative performance target. If neither an absolute control agreement has been concluded with the company as
nor a relative performance target is met by the end of the a dependent entity in accordance with section 291 of the
waiting period, the SARs attributable to the related tranche AktG and such agreement has taken effect or if the company
will expire without replacement or compensation. has merged with another legal entity outside of the Group
One SAR is earned each time the closing price of pursuant to section 2 of the Umwandlungsgesetz (UmwG
Deutsche Post shares exceeds the issue price by at least 10, German Reorganisation and Transformation Act), unless
15, 20 or 25%. The relative performance target is tied to the the value of such other legal entity, as determined by the
performance of the shares in relation to the STOXX Europe agreed conversion rate, is less than 50% of the value of the
600 Index (SXXP; ISIN EU0009658202). It is met if the company.
share price equals the index performance or if it outper- In the event the right to early termination is exercised
forms the index by at least 10%. or a Board of Management contract is terminated by mutual
The proceeds from stock appreciation rights are limited consent within nine months of the change in control, the
to a maximum amount. The individual amount limits for Board of Management member is entitled to payment to
the 2016 tranche can be seen in tables 01/15 and 01/16. The compensate the remaining term of their Board of Manage-
remuneration from stock appreciation rights may be limited ment contract. Such payment is limited to 150% of the sev-
by the Supervisory Board in the event of extraordinary cir- erance payment cap pursuant to the DCGK recommenda-
cumstances. tion. The amount of the payment is reduced by 25% if the
Board of Management member has not reached the age of Amount of remuneration paid to members of the Group
60 upon leaving the company. If the remaining term of the Board of Management in financial year 2016
Board of Management contract is less than two years and The remuneration paid to members of the Board of Man-
the Board of Management member has not reached the age agement in financial year 2016 totalled 12.26million (pre-
of 62 upon leaving the company, the payment will corres vious year: 10.70million) in accordance with the applic
pond to the severance payment cap. The same applies if a able international accounting standards. That amount
Board of Management contract expires prior to the Board comprised 6.63million in non-performance-related com-
of Management members reaching the age of 62 because ponents (previous year: 7.05million) and 5.63million in
less than nine months remained on the term of the contract paid-out performance-related components (previous year:
at the time of the change in control and the contract was 3.65million). An additional 3.01million of the perform
notrenewed. ance-related component was transferred to the medium-
Board of Management members are also subject to a term component and will be paid out in 2019 subject to the
non-compete clause, taking effect on the cessation of their condition that the required EAC, an indicator of sustainabil-
contracts. During the one-year non-compete period, former ity, be reached.
Board of Management members receive 100% of their last The members of the Board of Management were granted
contractually stipulated annual base salary on a pro-rata a total of 1,202,376 SARs in financial year 2016 with a total
basis as compensation each month. Any other income value of 6.25million (previous year: 6.66million) at the
earned during the non-compete period is subtracted from time of issue (1September2016). The total remuneration
the compensation paid. The amount of the compensation paid to Board of Management members is presented indi-
payment itself is deducted from any severance payments or vidually in the tables below. In addition to the applicable
pension payments. Prior to, or concurrent with, cessation accounting principles, the DCGK recommendations were
of the Board of Management contract, the company may also taken into account.
declare its waiver of adherence to the non-compete clause. In accordance with the recommendations, the target
In such a case, the company will be released from the obli- remuneration tables (01/15 and 01/16, or benefits granted
gation to pay compensation due to a restraint on competi- in DCGK terminology) do not show any actual payments of
tion six months after receipt of such declaration. performance-based remuneration. By contrast with the
Apart from the aforementioned arrangements, no mem- payment amount stated, the figures stated for the one-year
ber of the Board of Management has been promised any variable remuneration and the portion of the one-year vari
further benefits after leaving the company. able remuneration to be deferred (the deferral) reflect the

target amount (i. e., the amount when achieving 100% of the
target) that was granted for financial year 2016 or for the
previous year. In addition, the long-term remuneration
(LTIP with a four-year waiting period) granted in the report-
ing year or in the previous year is reported at the fair value
at the time granted. With respect to pension commitments,
the pension expense, i.e., the service cost in accordance
with IAS19, is presented. The presentation is supplemented
by the minimum and maximum values that can be achieved.
Group Management Report General Information Remuneration of the Board ofManagement and Supervisory Board
41
Target remuneration for the Board of Management members active as at 31December2016

01/1 5
DrFrank Appel Ken Allen
Chairman Express
2015 2016 Min.2016 Max.2016 2015 2016 Min.2016 Max.2016
a) Non-performance-related remuneration
Base salary 1,962,556 1,962,556 1,962,556 1,962,556 968,750 976,500 976,500 976,500
Fringe benefits 34,801 35,099 35,099 35,099 102,252 102,375 102,375 102,375
Total (lit.a) 1,997,357 1,997,655 1,997,655 1,997,655 1,071,002 1,078,875 1,078,875 1,078,875
b) Performance-related remuneration
One-year variable remuneration 785,022 785,022 0 981,278 387,500 390,600 0 488,250
Multi-year variable remuneration 2,747,597 2,747,596 0 5,887,668 1,364,020 1,367,129 0 4,394,250
LTIP with four-year waiting period 1,962,575 1,962,574 0 4,906,390 976,520 976,529 0 3,906,000
Deferral with three-year waiting period 785,022 785,022 0 981,278 387,500 390,600 0 488,250
Total (lit.a and b) 5,529,976 5,530,273 1,997,655 8,866,601 2,822,522 2,836,604 1,078,875 5,961,375
c) Pension expense (service cost) 1,094,399 899,257 899,257 899,257 321,537 337,497 337,497 337,497
Total DCGK remuneration (lit.a to c) 6,624,375 6,429,530 2,896,912 9,765,858 3,144,059 3,174,101 1,416,372 6,298,872
d) Variable cash remuneration pursuant to DRS 17

One-year variable remuneration (payment amount) 288,300 950,662 203,680 482,147
Payout from medium-term component 834,086 928,682 453,375 447,935
Total remuneration (cash components) pursuant
toDRS17 (lit.a and d) 3,119,743 3,876,999 1,728,057 2,008,957
Jrgen Gerdes John Gilbert

Post - eCommerce - Parcel Supply Chain
2015 2016 Min.2016 Max.2016 2015 2016 Min.2016 Max.2016
Base salary 991,148 1,005,795 1,005,795 1,005,795 715,000 823,750 823,750 823,750
Fringe benefits 31,399 35,011 35,011 35,011 168,110 174,576 174,576 174,576
Total (lit.a) 1,022,547 1,040,806 1,040,806 1,040,806 883,110 998,326 998,326 998,326
One-year variable remuneration 396,459 402,318 0 502,898 286,000 329,500 0 411,875
Multi-year variable remuneration 1,402,267 1,408,144 0 4,526,078 1,001,011 1,189,528 0 3,851,875
LTIP with four-year waiting period 1,005,808 1,005,826 0 4,023,180 715,011 860,028 0 3,440,000
Deferral with three-year waiting period 396,459 402,318 0 502,898 286,000 329,500 0 411,875
Total (lit.a and b) 2,821,273 2,851,268 1,040,806 6,069,782 2,170,121 2,517,354 998,326 5,262,076
c) Pension expense (service cost) 325,592 277,604 277,604 277,604 253,470 239,316 239,316 239,316
Total DCGK remuneration (lit.a to c) 3,146,865 3,128,872 1,318,410 6,347,386 2,423,591 2,756,670 1,237,642 5,501,392

One-year variable remuneration (payment amount) 167,256 478,406 156,406 389,263
Payout from medium-term component 457,274 470,331 277,726
toDRS17 (lit.a and d) 1,647,077 1,989,543 1,039,516 1,665,315
Melanie Kreis
Finance1
2015 2016 Min.2016 Max.2016
Base salary 715,000 739,167 739,167 739,167
Fringe benefits 22,596 18,990 18,990 18,990
Total (lit.a) 737,596 758,157 758,157 758,157
One-year variable remuneration 286,000 295,667 0 369,584
Multi-year variable remuneration 1,001,011 1,010,677 0 3,229,584
LTIP with four-year waiting period 715,011 715,010 0 2,860,000
Deferral with three-year waiting period 286,000 295,667 0 369,584
Total (lit.a and b) 2,024,607 2,064,501 758,157 4,357,325
c) Pension expense (service cost) 70,207 241,937 241,937 241,937

Total DCGK remuneration (lit.a to c) 2,094,814 2,306,438 1,000,094 4,599,262

One-year variable remuneration (payment amount) 120,656 364,964
Payout from medium-term component 58,056
toDRS17 (lit.a and d) 858,252 1,181,177
1
Responsible for Finance since 1October2016 and, until further notice, also responsible for Human Resources.
Target remuneration for the Board of Management members who left the company in financial year 2016
01/1 6
Lawrence Rosen
Finance, Global Business Services
(until 30September2016)
2015 2016 Min.2016 Max.2016
Base salary 945,500 732,375 732,375 732,375
Fringe benefits 24,985 20,832 20,832 20,832
Total (lit.a) 970,485 753,207 753,207 753,207
One-year variable remuneration 378,200 292,950 0 366,188
Multi-year variable remuneration 1,354,720 1,025,339 0 3,295,688
LTIP with four-year waiting period 976,520 732,389 0 2,929,500
Deferral with three-year waiting period 378,200 292,950 0 366,188
Total (lit.a and b) 2,703,405 2,071,496 753,207 4,415,083
c) Pension expense (service cost) 332,971 341,735 341,735 341,735

Total DCGK remuneration (lit.a to c) 3,036,376 2,413,231 1,094,942 4,756,818

One-year variable remuneration (payment amount) 100,459 345,608
Payout from medium-term component 453,375 434,264
toDRS17 (lit.a and d) 1,524,319 1,533,079
43
The payments tables (01/17 and 01/18) below include the eferral whose calculation period ended upon expiry of the
d
same figures for fixed remuneration and fringe benefits as reporting year or the previous year is reported. The tables
in the target remuneration tables (01 / 15 and 01/ 16). By also reflect the amount paid (the payment amount) from
contrast with the presentation in the target remuneration the tranches of the long-term components that were exer-
tables, the one-year variable remuneration paid out in finan- cised in financial year 2016 or in the previous year. In add
cial year 2016 or in the previous year (the payment amount) ition, the pension expense (service cost in accordance with
is stated; the presentation therefore does not include the IAS19) is stated pursuant to the DCGK recommendations.
share of the annual bonus transferred to the medium-term Although the pension expense does not represent an actual
component in these years. With regard to the medium-term payment per se, it is included in the presentation for the
component (the deferral), the payment amount of the purpose of illustrating the total remuneration.
Payments made to the Board of Management members active as at 31December2016

01/1 7
DrFrank Appel Ken Allen Jrgen Gerdes
Chairman Express Post - eCommerce - Parcel
2015 2016 2015 2016 2015 2016
Payments
Base salary 1,962,556 1,962,556 968,750 976,500 991,148 1,005,795
Fringe benefits 34,801 35,099 102,252 102,375 31,399 35,011
Total 1,997,357 1,997,655 1,071,002 1,078,875 1,022,547 1,040,806
One-year variable remuneration 288,300 950,662 203,680 482,147 167,256 478,406
Multi-year variable remuneration 5,436,086 6,086,462 5,305,016 3,637,093 5,703,809 3,479,244
Medium-term component 2013 834,086 453,375 457,274
Medium-term component 2014 928,682 447,935 470,331
LTIP (2011 tranche) 4,602,000 5,157,780 4,851,641 5,246,535
LTIP (2012 tranche) 3,189,158 3,008,913
Miscellaneous
Total 7,721,743 9,034,779 6,579,698 5,198,115 6,893,612 4,998,456
Pension expense (service cost) 1,094,399 899,257 321,537 337,497 325,592 277,604
Total 8,816,142 9,934,036 6,901,235 5,535,612 7,219,204 5,276,060
John Gilbert Melanie Kreis

Supply Chain Finance1
2015 2016 2015 2016
Payments
Base salary 715,000 823,750 715,000 739,167
Fringe benefits 168,110 174,576 22,596 18,990
Total 883,110 998,326 737,596 758,157
One-year variable remuneration 156,406 389,263 120,656 364,964
Multi-year variable remuneration 277,726 58,056
Medium-term component 2013
Medium-term component 2014 277,726 58,056
LTIP (2011 tranche)
LTIP (2012 tranche)
Miscellaneous
Total 1,039,516 1,665,315 858,252 1,181,177
Pension expense (service cost) 253,470 239,316 70,207 241,937
Total 1,292,986 1,904,631 928,459 1,423,114
1
Responsible for Finance since 1October2016 and, until further notice, also responsible for Human Resources.
Payments made to the Board of Management members who left the company in financial year 2016
01/1 8
Lawrence Rosen
(until 30September2016)
2015 2016
Payments
Base salary 945,500 732,375
Fringe benefits 24,985 20,832
Total 970,485 753,207
One-year variable remuneration 100,459 345,608
Multi-year variable remuneration 5,305,016 4,136,970
Medium-term component 2013 453,375
Medium-term component 2014 434,264
LTIP (2011 tranche) 4,851,641
LTIP (2012 tranche) 3,702,706
Miscellaneous
Total 6,375,960 5,235,785
Pension expense (service cost) 332,971 341,735
Total 6,708,931 5,577,520
Share-based component with long-term incentive effect

01/1 9
Members become entitled to benefits due to permanent
Number of shares Number Number disability after at least five years of service. Eligibility for
ofSARs ofSARs retirement benefits begins at the earliest at the age of 55, or
2015 tranche 2016 tranche
DrFrank Appel, Chairman 570,516 377,418
at the age of 62 in the case of Jrgen Gerdes. The pensions
Ken Allen 283,872 187,794 are generally geared towards annuity payments. However,
Jrgen Gerdes 292,386 193,428 the members of the Board of Management have the option
John Gilbert 207,852 165,390 of choosing a lump sum payment instead of the annuity
Melanie Kreis 207,852 137,502 payment. The benefit amount depends on the pensionable
Lawrence Rosen (until 30September2016) 283,872 140,844
income and the pension level derived from the years of
s ervice.
Pensionable income consists of the annual base salary
(fixed annual remuneration) computed on the basis of the
Pension commitments under the previous system average salary over the last twelve calendar months of em-
DrFrank Appel and Jrgen Gerdes have direct, final-salary- ployment. Members of the Board of Management attain a
based pension commitments on the basis of their individual pension level of 25% after five years of service. The max
contracts, providing for benefits in case of permanent dis imum pension level of 50% is attained after ten years ofser-
ability, death or retirement. If the contract of a member ends vice. Subsequent pension benefits increase or decrease to
after at least five years of service on the Board of Manage- reflect changes in the consumer price index in Germany.
ment, the entitlements they have acquired will vest in full.
45
Pension commitments under the previous system

01/2 0
Pension commitments
Pension Pension Present Present

level on level on Maximum value (DBO) on value (DBO) on
31Dec.2015 31Dec.2016 pension level 31Dec.2015 31Dec.2016
% % %
DrFrank Appel, Chairman 50 50 50 15,922,337 18,606,680
Jrgen Gerdes 25 25 50 6,863,181 8,366,436
Total 22,785,518 26,973,116
Pension commitments under the new system in a lump sum in the amount of the value accumulated in
Since 4March2008, newly appointed Board of Manage- the pension account. The benefits fall due when the Board
ment members have been granted pension commitments of Management member reaches the age of 62 or in the case
based upon a defined contribution plan. Under the defined of invalidity or death whilst in office. In the event of benefits
contribution pension plan, the company credits an annual falling due, the pension beneficiary may opt to receive an
amount of 35% of the annual base salary to a virtual pension annuity payment in lieu of a lump sum payment. If this
account for the Board of Management member concerned. option is exercised, the capital is converted to an annuity
The maximum contribution period is 15 years. The pension payment, taking into account the average iBoxx Corpor
capital accrues interest at an annual rate equal to the iBoxx ates AA10+ Annual Yield for the past ten full calendar
Corporates AA10+ Annual Yield rate, or at an annual rate years as well as the individual data of the surviving depend-
of 2.25% at minimum, and will continue to do so until the ants and a future pension increase of 1% per year.
pension benefits fall due. The pension benefits are paid out
Board of Management pension commitments under the new system: individual breakdown
01/2 1
Total Total Present value Present value
contribution contribution (DBO) as at (DBO) as at
for 2015 for 2016 31Dec.2015 31Dec.2016
Ken Allen 325,500 341,775 2,125,947 2,506,156
John Gilbert 250,250 250,250 445,742 704,837
Melanie Kreis 250,250 250,250 783,552 1,049,012
Lawrence Rosen (until 30September2016) 325,500 256,331 3,179,558 3,387,970
Total 1,151,500 1,098,606 6,534,799 7,647,975
Benefits for former Board of Management members

Benefits paid to former members of the Board of Manage-
ment or their surviving dependants amounted to 5.4mil-
lion in financial year 2016 (previous year: 25.3million).
The defined benefit obligation (DBO) for current pensions
calculated under IFRSs was 97million (previous year:
94million).
Remuneration of the Supervisory Board mittees, or act as chair or deputy chair, for part of the finan-
Remuneration for the members of the Supervisory Board is cial year are remunerated on a pro-rata basis.
governed by article 17 of the Articles of Association of As in the previous year, Supervisory Board members
Deutsche Post AG, according to which Supervisory Board receive an attendance allowance of 1,000 for each plenary
members receive a fixed annual remuneration in the amount meeting of the Supervisory Board or committee meeting
of 70,000 (as in the previous year). that they attend. They are entitled to the reimbursement of
The Supervisory Board chairman and the Supervisory out-of-pocket cash expenses incurred in the exercise of their
Board committee chairs receive an additional 100% of the office. Any value added tax charged on Supervisory Board
remuneration, and the Supervisory Board deputy chair and remuneration or out-of-pocket expenses is reimbursed.
committee members receive an additional 50%. This does The remuneration for 2016 totalled 2,622,000 (previ-
not apply to the Mediation or Nomination Committees. ous year: 2,682,000). Table 01/22 shows both totals, broken
Those who only serve on the Supervisory Board or its com- down as the remuneration paid to each Supervisory Board
member.
Remuneration paid to Supervisory Board members

01/2 2
2015 2016
Fixed Attendance Fixed Attendance

Board members component allowance Total component allowance Total
Prof.DrWulf von Schimmelmann (Chair) 315,000 25,000 340,000 315,000 20,000 335,000
Andrea Kocsis (Deputy Chair) 245,000 21,000 266,000 245,000 19,000 264,000
Rolf Bauermeister 140,000 18,000 158,000 140,000 15,000 155,000
DrNikolaus von Bomhard (since 18May2016) 43,750 3,000 46,750
Ingrid Deltenre (since 18May2016) 43,750 2,000 45,750
Jrg von Dosky 70,000 8,000 78,000 70,000 5,000 75,000
Werner Gatzer 140,000 18,000 158,000 140,000 16,000 156,000
Prof.DrHenning Kagermann 105,000 11,000 116,000 105,000 7,000 112,000
Thomas Koczelnik 175,000 24,000 199,000 175,000 21,000 196,000
Anke Kufalt 70,000 8,000 78,000 70,000 5,000 75,000
Thomas Kunz (until 18May2016) 70,000 6,000 76,000 26,250 1,000 27,250
Simone Menne 105,000 12,000 117,000 105,000 11,000 116,000
Roland Oetker 140,000 18,000 158,000 140,000 15,000 155,000
Andreas Schdler 70,000 8,000 78,000 70,000 5,000 75,000
Sabine Schielmann 70,000 8,000 78,000 70,000 4,000 74,000
DrUlrich Schrder 105,000 9,000 114,000 105,000 6,000 111,000
DrStefan Schulte 140,000 15,000 155,000 140,000 12,000 152,000
Stephan Teuscher 105,000 15,000 120,000 105,000 12,000 117,000
Helga Thiel 105,000 15,000 120,000 105,000 11,000 116,000
Elmar Toime (until 18May2016) 70,000 8,000 78,000 26,250 2,000 28,250
Stefanie Weckesser 105,000 13,000 118,000 105,000 10,000 115,000
Prof.Dr-Ing.Katja Windt 70,000 7,000 77,000 70,000 5,000 75,000
ANNUAL CORPORATE
GOVERNANCE STATEMENT
You can find the Annual Corporate Governance Statement,
which is also part of the Group Management Report, at
dpdhl.com/en/investors and in the Corporate Governance
R
eport, page 93ff.
Group Management Report GENERAL INFORMATION Remuneration of the Board of Management and Supervisory Board ANNUAL CORPORATE G OVERNANCE
STATEMENT Report on Economic Position Overall Board of Management assessment of the Groups economic position Forecast/actual comparison 47
REPORT ON ECONOMIC the dynamic growth recorded in the parcel business more
than compensated for the decline in revenue in the Post
POSITION business unit. In the DHL divisions, the growth trend in the
international Express business remained intact and the
Overall Board of Management turnaround measures implemented in the Global Forward-
assessment of the Groups economic ing, Freight division in particular are taking effect. Con
solidated revenue remained below the prior-year level, due
position
in part to negative currency effects. Capital expenditure
In financial year 2016, Deutsche Post DHL Group increased increased. Excluding the further funding of pension obliga-
EBIT to 3.5billion. All divisions contributed to the increase. tions, free cash flow registered a positive development.
The measures implemented in the prior year served to make From the perspective of the Board of Management, this
the Group more efficient and led to significantly higher testifies to the continuing sound financial position of the
margins. In the Post- eCommerce- Parcel (PeP) division, Group.
Forecast/actual comparison
Forecast/actual comparison
01/2 3
Targets 2016 Results 2016 Targets 2017

EBIT EBIT EBIT
Group: 3.4billion to 3.7billion. Group: 3.49billion. Group: around 3.75billion.
PeP division: more than 1.3billion. PeP division: 1.44billion. PeP division: around 1.5billion.
DHL divisions: 2.45billion to 2.75billion. DHL divisions: 2.41billion. DHL divisions: around 2.6billion.
Corporate Center/Other: 0.35 billion. Corporate Center/Other: 0.36 billion. Corporate Center/Other: 0.35 billion.
EAC EAC EAC
Will develop in line with EBIT and increase Developed in line with EBIT and increased Will develop in line with EBIT and increase.
substantially. substantially.
Cash flow Cash flow Cash flow
Free cash flow to more than cover At 1.4billion free cash flow significantly Free cash flow over 1.4billion.
dividend payment in May2016, exclud exceeded dividend payment in May2016,
ingthe further funding of pension excluding the further funding of pension
obligationsin the amount of 1billion1. obligations in the amount of 1billion.
Capital expenditure (capex) Capital expenditure (capex) Capital expenditure (capex)
Increase investments to around 2.2billion. Invested: 2.1billion. Increase investments to around 2.3billion.
Dividend distribution Dividend distribution Dividend distribution
Pay out 40% to 60% of net profit Proposal: pay out 48% of net profit Pay out 40% to 60% of net profit
asdividend. asdividend. asdividend.
Employee Opinion Survey Employee Opinion Survey Employee Opinion Survey
Increase approval rating of keyperform Approval rating of key performance Increase approval rating of keyperform
ance indicator Active Leadership by indicator Active Leadership increased ance indicator Active Leadership by
onepercentage point. byone percentage point to 74%. onepercentage point.
Greenhouse gas efficiency Greenhouse gas efficiency2 Greenhouse gas efficiency
CEX will increase by one index point. CEX improved to 30 index points (previous CEX will increase by one index point.
year, adjusted: 29).
1
Forecast adjusted during the year.
2
Adjusted weighting of the divisions carbon efficiencies page 70.
Economic parameters Pronounced increases were seen in private consumption,

government spending and gross fixed capital formation. By
Global economy continues to record weak growth contrast, growth in exports declined substantially. This ul-
Growth of the global economy slowed slightly in 2016. The timately resulted in GDP growth of 1.7% (previous year:
reason for the decline was softening economic momentum 2.0%). Although the individual countries reported great
in the industrial countries, where average GDP growth de- variations in performance, they all registered positive
creased to 1.6%. In the emerging markets, growth remained growth rates. As a result, the average unemployment rate
at 4.1%, moderate on a long-term comparison especially dropped significantly to 10.0%, which is, however, still
since the stable result was also attributable to weakening quitehigh.
recessions in a number of major threshold economies. On The German economy grew steadily in 2016, albeit sub-
the whole, global economic output grew by 3.1% (previous ject to greater fluctuation. Domestic demand provided for
year: 3.2%) after adjusting for purchasing power. The in- strong momentum. Private consumption increased substan-
crease in global trade was even more cautious (IMF: 1.9%; tially thanks to rising real incomes. Government spending
OECD: 1.9%). recorded an above-average rise. Gross fixed capital forma-
tion experienced a somewhat more significant increase,
Global economy: growth indicators, 2016
01/2 4
above all due to increased residential construction. By con-
% Gross domestic Domestic trast, investments in machinery and equipment expanded
product (GDP) Exports demand only slightly and the referendum in the UK to leave the
China 6.7 7.7 n.a.
European Union may have played a part in the current en-
Japan 1.0 0.3 0.5
vironment of corporate uncertainty. Exports increased only
USA 1.6 0.4 1.7
Euro zone 1.7 2.3 1.9
moderately. GDP growth nonetheless rose to 1.9% (previous
Germany 1.9 2.5 2.2 year: 1.7%) and the unemployment rate fell to 6.1% on an
annual average (previous year: 6.4%). At the same time, the
Some data estimated, as at 7February2017.
Source: Postbank, national statistics.
average number of employed persons rose to 43.5million
(previous year: 43.1million).
The Asian threshold economies again provided the strongest Rise in crude oil prices over the course of 2016
economic momentum. At 6.3%, GDP growth fell well below At the end of 2016, the price for one barrel of Brent Crude
the 6.7% recorded in the prior year. The Chinese economy was US$55.21 (previous year: US$36.43). However, the aver-
continued to weaken, with exports registering a sharp fall. age price of oil for the year declined by around 16% on the
At the same time, however, industrial manufacturing growth previous year to just under US$44 per barrel. Oil prices fluc-
stabilised, albeit at a relatively low level for China. GDP tuated between US$26 and US$56 over the course of the year,
growth declined to 6.7% (previous year: 6.9%). The Japan whereby prices rose significantly in the months following
ese economy recorded only minimal growth. Moderate in- the low recorded in January.
creases were seen in private consumption and gross fixed
capital formation, whilst exports increased only very slightly. Euro weakens on the back of Brexit and monetary policies
All in all, GDP growth declined to 1.0% (previous year: 1.2%). The European Central Bank (ECB) further expanded its
In the United States, the economic upturn lost notable monetary policy efforts in 2016. Against the backdrop of
momentum, with the pronounced decrease in corporate the very low inflation rate, which even dropped below zero
investment supplying the main reason for the decline. How- at the start of the year, March saw the ECB lower its key re-
ever, private consumption expanded markedly once more financing rate by 0.05 percentage points to 0.00% and its
and remained the key driver of growth. Foreign trade had deposit rate by 0.10 percentage points to 0.40%. Moreover,
no major impact on growth. GDP rose by just 1.6% overall in April, the bank increased the monthly volumes of its
(previous year: 2.6%), and the unemployment rate con bond-buying programme by 20billion to 80billion. In
tinued to fall. June, the ECB began buying bonds from companies outside
In the euro zone, the economic recovery continued in of the banking sector for the first time. By contrast, the US
the year under review driven, above all, by domestic demand. Federal Reserve increased its key interest rate by 0.25 per-
Group Management Report Report on Economic Position Economic parameters
49
centage points to 0.50% to 0.75% last December, due to solid year-on-year to 2.44%. Initially, risk premiums for corpor
growth in the labour market and the gradual rise in i nflation. ate bonds with good ratings saw a significant decrease.
The euro managed to gain on the US dollar in the first Although they registered an upwards trend as the year pro-
few months of 2016, but again came under downward pres- gressed, by the end of the year they had fallen below the
sure in the ensuing period. The vote in favour of Brexit in 2015 year-end level.
the UK was a major blow for the euro. Later in the year, the Listings on the German stock market dropped sharply
US dollar benefited from expectations of an additional in- at the start of the year driven by increasing concern regard-
crease in key interest rates in the USA, whilst the ECB sig- ing a notable downturn in global growth. After a period of
nalled sustained expansionary monetary policies beyond stabilisation, the Brexit vote led to another relapse. However,
2016. At the end of the year, the euro listed at just over rising economic optimism resulted in a strong increase in
US$1.05, a drop of 3.0% year-on-year. Measured against the equities prices, especially towards the end of the year. The
pound sterling, the euro posted a gain of 15.9%. DAX ended 2016 at 11,481 points, a year-on-year gain of 6.9%.
The EURO STOXX 50 registered growth of only 0.7% year-
Slight decline in risk premiums for corporate bonds on-year.
The euro zone bond markets were impacted during the first
half of the year by the ECBs expansionary monetary policies Regional variations in growth of international trade
in addition to economic concerns resulting from the Brexit The global trade movements of relevance to us air and
vote. Capital market interest rates decreased sharply. Yields ocean freight sent in containers, excluding liquids and bulk
on ten-year German government bonds reached a historic goods grew by a total of 1.7% in the reporting year. Intra-
low in July, having fallen to 0.21% at the end of the year regional volumes remained stable or grew. By contrast, ex-
(previous year: 0.63%). By the end of 2016, yields on ten-year ports to North and Latin America fell from almost all
US government bonds had risen by 0.17 percentage points r egions.
Trade volumes: compound annual growth rate, 2015 to 2016

01/2 5
%
Import MEA
Export Asia Pacific Europe Latin America (Middle East and Africa) North America
Asia Pacific 4.4 3.9 6.7 1.0 0.3
Europe 1.2 9.6 6.9 4.7 1.8
Latin America 7.9 8.5 1.0 3.3 2.2
MEA (Middle East and Africa) 3.3 3.9 7.7 0.2 4.7
North America 4.9 0.1 3.4 2.4 5.8
Source: Seabury Cargo Advisory, as at 13January2017; based upon all relevant ocean and air freight trading volumes in tonnes, excluding liquids and bulk goods.
Excluding shipments within the European Union free trade zone.
Legal environment
In view of our leading market position, a large number of
our services are subject to sector-specific regulation under
the Postgesetz (PostG German Postal Act). Further infor-
mation regarding this issue and legal risks is contained in
note 48 to the consolidated financial statements.
Significant events Changes in portfolio

In the first quarter of 2016, we acquired 27.5% of the shares
At the end of January2016, we sold the remaining shares in in French logistics provider Relais Colis SAS. The company
UK property development companies Kings Cross Central is accounted for using the equity method. In addition, we
Property Trust and Kings Cross Central General Partner Ltd. sold all of the shares in nugg.ad GmbH.
On 1April, the Group placed two bonds with a total In the third quarter of 2016, we sold the joint ventures
volume of 1.25billion on the capital market. Of the capital Gll GmbH, Germany, and Presse-Service Gll GmbH,
raised, 1billion was used for the further funding of pen- Switzerland, which were accounted for using the equity
sion obligations. method. The Supply Chain division acquired Italian logis-
Pension provisions declined in the reporting year des tics service provider Mitsafetrans S.r.l., including a subsid-
pite decreasing discount rates, which was largely as a result iary, in its entirety. In the Post- eCommerce- Parcel div
of further funding of pension obligations. A measurement- ision, we sold our entire interest in German e-mail and
related reversal had already been recognised in the first marketing services provider optivo GmbH.
quarter due to changes in the occupational retirement ar- In the fourth quarter of 2016, we withdrew from the
rangement in Germany. This was offset by a number of other coach market. Our acquisition of UK Mail Group plc, the
human resources measures including the early retirement British postal and parcel services provider, closed at the end
scheme for civil servants, with the result that, overall, there of December.
was no effect on earnings. There were no changes in reporting.
Given that the state aid decision, notes 46 and 48 to the
consolidated financial statements, set aside on 14July2016 has be- Consolidated revenue falls to 57.3billion
come null and void with final effect, there are no longer any Consolidated revenue in financial year 2016 fell by
grounds for the obligation to repay the alleged state aid, and 1,896million to 57,334million. Negative currency effects
the amount of 378million deposited in a trustee account led to a drop of 1,494million. The change to the way in
was released. which revenue and expenses are reported as a result of the
At the end of September, we submitted a takeover offer revised terms of the UK National Health Service (NHS) con-
for the entire share capital of UK Mail Group plc, United tract reduced revenue by a further 1,435million. Excluding
Kingdom. The transaction was completed on 22December these effects, revenue growth was 1.7%. The proportion of
following approval by the shareholders and the competent revenue generated abroad declined from 70.5% to 68.8%.
authorities. Revenue for the fourth quarter of 2016 was up 0.5% year-
on-year, at 15,410million. The increase excluding negative
currency effects (372million) was 2.9%.
Results of operations Other operating income dropped by 238million to
2,156million. The prior-year figure included income from
Selected indicators for results of operations
01/26
the sale of equity interests in Sinotrans and Kings Cross as
well as from the remeasurement of assets from the hub in
2015 2016 Cincinnati. The figure for the reporting year includes a gain
Revenue m 59,230 57,334
of 63million on the disposal of the remaining shares in
Profit from operating activities
(EBIT) m 2,411 3,491 Kings Cross.
Return on sales1 % 4.1 6.1
EBIT after asset charge (EAC) m 877 1,963
Consolidated net profit
fortheperiod2 m 1,540 2,639
Earnings per share3 1.27 2.19
Dividend per share 0.85 1.054
1
EBIT/revenue.
2
3
Basic earnings per share.
4
Proposal.
Group Management Report Report on Economic Position Significant events Results of operations
51
Changes in revenue, other operating income and operating expenses, 2016

01/2 7
m +/%
Revenue 57,334 3.2 Growth trends in the German parcel and international express businesses remain intact
Currency effects lead to fall of 1,494million
Revised NHS contract reduced revenue by 1,435million
Other operating income 2,156 9.9 Prior-year figure included higher income from the sale of equity interests
Materials expense 30,620 7.7 Drop of 1,421million in cost of goods purchased and held for resale due to revised
NHScontract
Lower transport and fuel costs
Positive currency effects
Staff costs 19,592 0.2 At prior-year level
Depreciation, amortisation and impairment 1,377 17.3 Prior-year figure included impairment losses of 310million on NFE
losses
Other operating expenses 4,414 6.9 Lower, mainly due to positive currency effects
Materials expense markedly lower Dividend of 1.05 per share proposed

Materials expense showed a marked fall of 2,550million Our finance strategy calls for a payout of 40% to 60% of
to 30,620million. The cost of goods purchased and held netprofits as dividends as a general rule. The Board of Man-
for resale dropped considerably as a result of the revised agement and the Supervisory Board will therefore propose
NHS contract. Materials expense was also reduced by lower a dividend of 1.05 per share for financial year 2016 (previ-
transport and fuel costs as well as currency effects. The in- ous year: 0.85) to shareholders at the Annual General
crease in headcount at the Express division was the main Meeting on 28April2017. The distribution ratio based
factor raising staff costs, whereas positive exchange rate upon net profit, which is defined as consolidated net profit
effects led to a slight overall decrease in this item. Depreci- for the period after deduction of non-controlling interests,
ation, amortisation and impairment losses declined signifi amounts to 48.2%. The net dividend yield based upon the
cantly, falling by 288million to 1,377million: the prior- year-end closing price of our shares is 3.4%. The dividend
year figure included impairment losses of 310million for will be distributed on 4May2017 and is tax-free for share-
NFE. Mainly positive currency effects reduced other operat- holders resident in Germany. It does not entitle recipients
ing expenses from 4,740million to 4,414million. to a tax refund or atax credit.
Consolidated EBIT up 44.8% Total dividend and dividend perno-parvalue share

01/2 8
At 3,491million, profit from operating activities (EBIT) m
exceeded the prior-year figure of 2,411million by 44.8%. 1,271
Fourth-quarter EBIT rose by 16.1% to 1,111million. At

359million, net finance costs in the reporting period 1,030 1,027
968
weresimilar to the previous year (354million). Profit be- 846 846 1.05
786
foreincome taxes climbed substantially by 1,075million 0.85 0.85
0.80
to 3,132million. Income taxes rose by 13million to 0.65
0.70 0.70
351million.
Sharp improvement in consolidated net profit

Consolidated net profit showed a sharp improvement, 10 11 12 13 14 15 161
rising from 1,719million to 2,781million. Of this
Dividend per no-par value share ()
amount,2,639million is attributable to shareholders of 1
Proposal.
Deutsche Post AG and 142million to non-controlling i nterest
holders. Basic earnings per share improved from 1.27 to
2.19 and diluted earnings per share from 1.22 to 2.10.
EBIT after asset charge (EAC) increases substantially Financial position

In 2016, EBIT after asset charge (EAC) climbed from
877million to 1,963million, mainly as a result of the Selected cash flow indicators
01/3 1
strong increase in the companys profitability. The imputed m
asset charge remained stable year-on-year, with larger in- 2015 2016
Cash and cash equivalents as at 31December 3,608 3,107
vestments in property, plant and equipment and lower pro-
Change in cash and cash equivalents 615 437
visions being offset by a decline in average net working
Net cash from operating activities 3,444 2,439
capital. Net cash used in investing activities 1,462 1,643
Net cash used in financing activities 1,367 1,233
EBIT after asset charge (EAC)
01/2 9
m
2015 2016 +/% Financial management is a centralised function in the Group
EBIT 2,411 3,491 44.8
The Groups financial management activities include man-
Asset charge 1,534 1,528 0.4
aging liquidity along with hedging against fluctuations in
EAC 877 1,963 >100
interest rates, currencies and commodity prices, arranging
Group financing, issuing guarantees and letters of comfort
and liaising with rating agencies. Responsibility for these
The net asset base increased by 730million to 17,539mil- activities rests with Corporate Finance at Group headquar-
lion as at the reporting date. Investments in IT systems, the ters in Bonn, which is supported by three Regional Treasury
purchase of freight aircraft, and replacement and expansion Centres in Bonn (Germany), Weston (USA) and Singapore.
investments in warehouses, sorting systems and the vehicle The regional centres act as interfaces between Group head-
fleet increased year-on-year, as did intangible assets. Net quarters and the operating companies, advise the companies
working capital remained more or less stable. on financial management issues and ensure compliance
Both operating provisions and other non-current assets with Group-wide requirements.
and liabilities declined year-on-year. Corporate Finances main task is to minimise financial
risk and the cost of capital in addition to preserving the
Net asset base (non-consolidated)1
01/3 0
Groups financial stability and flexibility over the long term.
m 31Dec.2015 31Dec.2016 +/% In order to maintain its unrestricted access to the capital
adjusted markets, the Group continues to aim for a credit rating
Intangible assets and property,
plant and equipment 20,296 20,943 3.2
appropriate to the sector. We therefore monitor the ratio of
Net working capital 1,024 1,043 1.9 our operating cash flow to our adjusted debt particularly
perating provisions
O closely. Adjusted debt refers to the Groups net debt, allow-
(excludingprovisions for ing for unfunded pension obligations and liabilities under
pensions and similar
obligations) 2,471 2,321 6.1 operating leases.
Other non-current assets
andliabilities 8 37 >100
Maintaining financial flexibility and low cost of capital
Net asset base 16,809 17,539 4.3
The Groups finance strategy builds upon the principles and
1
Assets and liabilities are defined as described in the segment reporting, note 10 to aims of financial management. In addition to the interests
theconsolidated financial statements. Consolidation produces an amount of 71million
(previous year: 191million). of shareholders, the strategy also takes creditor require-
ments into account. The goal is for the Group to maintain
its financial flexibility and low cost of capital by ensuring a
high degree of continuity and predictability for investors.
Group Management Report Report on Economic Position Results of operations Financial position
53
A key component of this strategy is having a target rat- dend policy and clear priorities regarding the use of excess
ing of BBB+, which is managed via a dynamic perform liquidity, which is to be used to gradually increase plan
ance metric known as funds from operations to debt (FFO assets of our German pension plans, to distribute special
to debt). Our strategy additionally includes a sustained divi dividends and to buy back shares.
Finance strategy
01/3 2
Credit rating Investors

Maintain BBB+ and Baa1 ratings, respectively. Reliable and consistent information from the company.
FFO to debt used as dynamic performance metric. Predictability of expected returns.
Dividend policy Group

Pay out 40% to 60% of net profit. Preserve financial and strategic flexibility.
Consider cash flows and continuity. Assure low cost of capital.
Excess liquidity
Increase plan assets of German pension plans.
Pay out special dividends or execute share buy-back programme.
Debt portfolio
Syndicated credit facility taken out as liquidity reserve.
Debt Issuance Programme established for issuing bonds.
Issue bonds to cover long-term capital requirements.
FFO to debt
01/3 3
Funds from operations (FFO) represents operating cash flow
m 2015 2016 before changes in working capital plus interest received less
adjusted1 interest paid and adjusted for operating leases and pensions,
Operating cash flow before changes in
working capital 2,656 2,514
as shown in the following calculation. In addition to finan-
Interest received 47 50 cial liabilities and surplus cash and near-cash investments,
Interest paid 76 138 the figure for debt also includes operating lease liabilities as
Adjustment for operating leases 1,413 1,569 well as unfunded pension liabilities.
Adjustment for pensions 239 1,003 Due to funds from operations increasing strongly, the
Funds from operations (FFO) 4,279 4,998
FFOto debt performance metric increased in the reporting
Reported financial liabilities 5,178 6,035 yearcompared with the previous year despite the increase
F inancial liabilities at fair value through in debt.
profit or loss 125 121
6,394 7,166
Funds from operations saw an increase of 719million
Adjustment for operating leases
Adjustment for pensions 6,103 5,467 to a total of 4,998million. The rise was due primarily to
Surplus cash and near-cash investments2 2,641 2,239 the significant increase in the adjustment for pensions,
Debt 14,909 16,308 which resulted from pension obligation funding. The pen-
FFO to debt (%) 28.7 30.6 sion obligation funding is shown in operating cash flow.
The increase in the adjustment for operating leases is the
Non-recurring income or expense is no longer reported separately since it is no longer
result of higher lease payments in 2016 and 2017. The inter-
1
generated or incurred in a relevant scope.

2
Reported cash and cash equivalents and investment funds callable at sight, less cash est paid is higher in the reporting year as a result of the in-
needed for operations.
terest income generated from unwinding interest rate swaps
related to outstanding bonds in the first quarter of 2015.
Debt rose by 1,399million to 16,308million com- Limiting market risk

pared with the previous year. The main cause of this was the The Group uses both primary and derivative financial in-
rise in reported financial liabilities as a result of the April struments to limit market risk. Interest rate risk is managed
bond issues in the amount of 1.25billion as well as the exclusively via swaps. Currency risk is additionally hedged
remaining obligations from the share buy-back programme using forward transactions, cross-currency swaps and op-
in the amount of 0.2billion. The increase in reported fi- tions. We pass on most of the risk arising from commodity
nancial liabilities was partially offset by the conversion of fluctuations to our customers and, to some extent, use com-
shares in the convertible bond, note 41 to the consolidated finan- modity swaps to manage the remaining risk. The parame-
cial statements, occurring in the reporting year in the amount ters, responsibilities and controls governing the use of
of 0.6billion. In addition, the adjustment for operating derivatives are laid down in internal guidelines.
leases rose because of the increase in lease obligations and
the lower interest rate. The adjustment for pensions de- Flexible and stable financing
clined. This is attributable to the increase in plan assets asThe Group covers its long-term financing requirements by
a result of further funding of pension obligations. Further means of equity and debt. This ensures our financial stabil-
information on pensions can be found in note 39 to the con- ity and also provides adequate flexibility. Our most import
solidated financial statements. Payments made in connection with
ant source of funds is net cash from operating activities.
the share buyback programme reduced surplus cash and We also have a syndicated credit facility in a total vol-
near cash investments by 0.8billion. ume of 2billion that guarantees us favourable market con-
ditions and acts as a secure, long-term liquidity reserve. The
Cash and liquidity managed centrally facility matures in 2020, and does not contain any coven
The cash and liquidity of our globally operating subsidiaries ants concerning the Groups financial indicators. In view of
is managed centrally by Corporate Treasury. More than 80% our solid liquidity, the syndicated credit facility was not
of the Groups external revenue is consolidated in cash pools drawn down during the year under review.
and used to balance internal liquidity needs. In countries As part of our banking policy, we spread our business
where this practice is ruled out for legal reasons, internal volume widely and maintain long-term relationships with
and external borrowing and investment are managed cen- the financial institutions we entrust with our business. In
trally by Corporate Treasury. In this context, we observe a addition to credit lines, we meet our borrowing require-
balanced banking policy in order to remain independent of ments through other independent sources of financing,
individual banks. Our subsidiaries intra-group revenue is such as bonds and operating leases. Most debt is taken out
also pooled and managed by our in-house bank in order to centrally in order to leverage economies of scale and spe-
avoid external bank charges and margins through inter- cialisation benefits and hence minimise borrowing costs.
company clearing. Payment transactions are executed in In April2016, we issued two bonds in a volume of
accordance with uniform guidelines using standardised 0.75billion and 0.5billion as part of the Debt Issuance
processes and IT systems. Many Group companies pool Programme established in 2012 with a volume of up to
their external payment transactions in the intra-group Pay- 8billion. The cash funds received that same month were
ment Factory, which executes payments on behalf of the utilised for the further funding of pension obligations in
respective companies via Deutsche Post AGs central bank Germany in the amount of 1billion.
accounts. No bonds were redeemed in the year under review.
Atotal of 0.6billion of the convertible bond issued in 2012
in the amount of 1billion was converted in 2016. Further
information on the existing bonds is contained in note 41
to the consolidated financial statements.
Group Management Report Report on Economic Position Financial position
55
Group issues sureties, letters of comfort and guarantees No change in the Groups credit rating
Deutsche Post AG provides security for the loan agreements, The ratings of A3 issued by Moodys Investors Service
leases and supplier contracts entered into by Group com (Moodys) and BBB+ issued by Fitch Ratings (Fitch) re-
panies, associates or joint ventures by issuing sureties, let- main in effect with regard to our credit quality. The stable
ters of comfort or guarantees as needed. This practice allows outlook from both rating agencies is also still applicable. We
better conditions to be negotiated locally. The sureties are remain well positioned in the transport and logistics sector
provided and monitored centrally. with these ratings. The following table shows the ratings as
at the reporting date and the underlying factors. The com-
plete and current analyses by the rating agencies and the
rating categories can be found at dpdhl.com/en/investors.
Agency ratings
01/3 4
Fitch Ratings Moodys Investors Service

Long-term: BBB+ Long-term: A3
Short-term: F2 Short-term: P2
Outlook: stable Outlook: stable
Rating factors Rating factors

Balanced business risk profile. Scale and global presence as the worlds largest logistics company.
Stable contribution of core mail products. Large and robust mail business in Germany.
Growth in internet-led domestic parcel volumes. Expectations of profitability recovery through its network investments
Strong global footprint in the Express, Global Forwarding, Freight and restructuring programme.
and Supply Chain businesses. Appropriate financial metrics, conservative financial policy and sound
Fairly stable credit metrics for the current rating and adequate liquidity profile.
financial flexibility.
Rating factors Rating factors
Structural mail volume decline in the Post- eCommerce- Parcel Exposure to global macroeconomic trends in the logistics businesses.
division due to secular changes in the industry (i.e., competition Structural decline of traditional postal services.
fromelectronic communication and digitalisation).
Exposure to global market volatility and competitiveness through
theDHL divisions.
Liquidity and sources of funds Financial liabilities

01/3 5
As at the balance sheet date, the Group had cash and cash m
equivalents of 3.1billion (previous year: 3.6billion) at its 2015 2016
Bonds 4,304 4,990
disposal. A large portion of that amount is held directly by
Due to banks 166 158
Deutsche Post AG. The cash is either invested centrally on
Finance lease liabilities 167 209
the money market or deposited in existing bank accounts. Liabilities to Group companies 26 28
These central, short-term financial investments had a vol- Financial liabilities at fair value through
ume of 1.7billion as at the balance sheet date. In addition, profit orloss 125 121
Other financial liabilities 390 529
0.2billion has been invested in a money market fund. The
5,178 6,035
following table gives a breakdown of the financial liabilities
reported in our balance sheet. Further information on rec-
ognised financial liabilities is contained in note 41 to the con-
solidated financial statements.
Operating leases remain an important source of funding for Operating lease obligations increased significantly year-on-
the Group. We mainly use operating leases to finance real year to 8.2billion, with new long-term agreements pri-
estate, although we also finance aircraft, vehicle fleets and marily for real estate overcompensating considerably for
IT equipment. the reduction in the remaining terms of legacy agreements.
Operating lease liabilities by asset class Capital expenditure above prior-year level
01/3 6
m Investments in property, plant and equipment and intan
2015 2016 gible assets (not including goodwill) amounted to
Land and buildings 5,929 6,657
2,074million in the reporting year, 2.5% above the prior
Aircraft 1,072 909
years figure of 2,024million. Please refer to notes 10, 21 and
Transport equipment 472 495
22 to the consolidated financial statements for a breakdown of capital
Technical equipment and machinery 70 79
Other equipment, operating and office expenditure (capex) into regions and asset classes.
equipment, miscellaneous 39 48
7,582 8,188
Capex and depreciation, amortisation and impairment losses, full year

01/3 7
Global Forwarding, Corporate Center/
PeP Express Freight Supply Chain Other Consolidation1 Group
2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
Capex (m) 533 590 856 902 123 55 318 328 192 199 2 0 2,024 2,074
Depreciation, amortisation
andimpairment losses (m) 319 334 404 469 396 79 313 294 233 201 0 0 1,665 1,377
Ratio of capex to depreciation,
amortisation and impairment
losses 1.67 1.77 2.12 1.92 0.31 0.70 1.02 1.12 0.82 0.99 1.22 1.51
1
Including rounding.
Capex and depreciation, amortisation and impairment losses, Q4

01/3 8
Global Forwarding, Corporate Center/
2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
Capex (m) 209 264 360 280 22 18 98 73 91 75 2 1 782 709
Depreciation, amortisation
andimpairment losses (m) 86 95 121 149 24 19 89 75 59 50 1 0 380 388
Ratio of capex to depreciation,
amortisation and impairment
losses 2.43 2.78 2.98 1.88 0.92 0.95 1.10 0.97 1.54 1.50 2.06 1.83
1
Including rounding.
In the Post- eCommerce- Parcel division, the largest capex newal of our aircraft fleet represented an additional focus
portion was attributable to the expansion of our domestic of investment spending.
and international parcel network and production of our In the Global Forwarding, Freight division, we con
StreetScooter electric vehicle. tinued to invest in turnaround measures. We also modern-
In the Express division, investments were made in ised and refurbished warehouses and office buildings across
expanding our hubs, especially in Leipzig, East Midlands, all regions.
Brussels and Cincinnati. Continuous maintenance and re-
Group Management Report Report on Economic Position Financial position
57
In the Supply Chain division, the majority of funds was as opposed to a net cash inflow of 788million in the pre-
used to support new business, mostly in the Americas and vious year. The increase in receivables and other assets was
EMEA regions where we made notable investments in the the main driver behind this development.
Consumer and Retail sectors. Net cash used in investing activities increased to
Cross-divisional capital expenditure increased due to 1,643million (previous year: 1,462million). The prior-year
higher vehicle replacement and expansion in our fleet. figure was lower due to the sale of the equity interests men-
tioned above. The figure for the reporting year was reduced
Funding of pension obligations impacts operating cash flow by the repayment from the state aid proceedings, which led
At 2,439million in financial year 2016, net cash from op- to 378million in proceeds from the disposal of non-current
erating activities was down 1,005million on the figure for assets. The acquisition of UK Mail is reflected mainly in cash
the previous year, although EBIT was 1,080million higher. paid to acquire subsidiaries and other business units. Cash
The decrease was due to the funding of pension obligations paid to acquire property, plant and equipment and intangible
in the amount of 1billion. Excluding this, net cash from assets decreased by 138million year-on-year, to 1,966mil-
operating activities was 3,439million, in line with the lion. Outflows of cash and cash equivalents of 200million
prior-year figure. The depreciation, amortisation and im- were incurred for current financial assets in connection with
pairment losses contained in EBIT are non-cash effects and the acquisition of money market funds.
are therefore eliminated. In the previous year, they were At 1,233million, net cash used in financing activities
characterised primarily by impairment losses on NFE. The was lower than in the previous year (1,367million).
income from the sale of equity interests contained in EBIT Through our bond placement in April, we issued non-cur-
has also been eliminated in net cash from operating activ rent financial liabilities and raised capital in the amount of
ities and is instead reported in cash flow from investing 1.239billion. Net cash used to purchase treasury shares
activities. In the previous year, this item comprised 261mil- rose from 70million to 836million on account of our
lion, mainly from the sale of equity interests in Sinotrans share buyback programme. At 1,027million, the dividend
and Kings Cross; in the reporting year it includes, amongst paid to our shareholders was the largest payment item. In
other things, 63million from the sale of the remaining addition, in the previous year our unwinding of interest rate
shares in Kings Cross. The change in provisions widened swaps on outstanding bonds reduced interest payments.
from 495million to 1,799million mainly as a result of Cash and cash equivalents declined from 3,608mil-
the funding of pension obligations. The change in current lion as at 31December2015 to 3,107million as at 31De-
assets and liabilities led to a net cash outflow of 75million cember2016.
Calculation of free cash flow

01/3 9
m
2015 2016 Q4 2015 Q4 2016
Net cash from operating activities 3,444 2,439 2,307 1,925
Sale of property, plant and equipment and intangible assets 175 265 97 141
Acquisition of property, plant and equipment and intangible assets 2,104 1,966 660 545
Cash outflow arising from change in property, plant and equipment and intangible assets 1,929 1,701 563 404
Disposals of subsidiaries and other business units 15 35 16 10

Disposals of investments accounted for using the equity method and other investments 223 82 0 0
Acquisition of subsidiaries and other business units 0 304 0 270
Acquisition of investments accounted for using the equity method and other investments 0 19 0 0
Cash inflow/outflow arising from divestitures/acquisitions 238 206 16 260
Interest received 47 50 14 7
Interest paid 76 138 69 67
Net interest paid 29 88 55 60
Free cash flow 1,724 444 1,705 1,201

Free cash flow as a management-related performance indi- On the equity and liabilities side of the balance sheet,
cator decreased significantly from 1,724million to 444mil- equity attributable to Deutsche Post AG shareholders rose
lion, due primarily to the decline in net cash from operating by 53million to 11,087million: while consolidated net
activities to 2,439million (previous year: 3,444million). profit for the period and the capital increase related to the
Excluding the funding of pension obligations, free cash flow convertible bond increased equity, actuarial losses on pen-
was 1,444million, a clear improvement. sion obligations, the dividend payment and effects associ-
ated with the purchase of treasury shares were key items
decreasing it. Provisions for pensions and similar obligations
Net assets declined significantly from 6,221million to 5,580million,
with actuarial losses increasing this item and the partial
Selected indicators for net assets
01/4 0
funding of pension obligations in particular serving to re-
duce it. Financial liabilities rose from 5,178million to
31Dec.2015 31Dec.2016 6,035million, primarily as a result of the bond placement
Equity ratio % 29.8 29.6
in April.
Net debt m 1,093 2,261
Net interest cover 83.1 39.7
Net gearing % 8.8 16.6
Net debt increases to 2,261million
FFO to debt1 % 28.7 30.6 Our net debt rose considerably from 1,093million as at
31December2015 to 2,261million as at 31December2016,
For the calculation Financial position, page 53.
mainly because we issued bonds in a total principal amount
1
of 1.25billion. At 29.6%, the equity ratio the ratio of

Increase in consolidated total assets equity to total assets was at the level of that at 31Decem-
The Groups total assets amounted to 38,295million as at ber2015 (29.8%). The net interest cover ratio the extent
31December2016, 425million higher than at 31Decem- to which net interest obligations are covered by EBIT was
ber2015 (37,870million). 39.7 as at 31December. The net gearing ratio is the ratio of
Intangible assets rose from 12,490million to net debt to total equity and net debt and amounted to 16.6%
12,554million in the reporting year, mainly because the as at 31December.
acquisition of UK Mail led to an increase in goodwill. Prop-
erty, plant and equipment also increased by 594million to Net debt
01/4 1
8,389million as a result of investments. We initially reclas- m
sified 378million paid to a trustee in connection with the 31Dec.2015 31Dec.2016
Non-current financial liabilities 4,578 4,516
state aid proceedings, note 48 to the consolidated financial state-
Current financial liabilities 440 1,381
ments, from non-current to current financial assets and then
Financial liabilities1 5,018 5,897
derecognised this amount following receipt. The short-term Cash and cash equivalents 3,608 3,107
investment of excess cash in a money market fund increased Current financial assets 179 374
the current financial assets item by 200million. At P ositive fair value of non-current financial
derivatives2 138 155
222million, other non-current assets were on a level with
Financial assets 3,925 3,636
the previous year. Trade receivables rose from 7,694mil-
Net debt 1,093 2,261
lion to 7,965million. The 501million decrease in cash
and cash equivalents to 3,107million is described in the 1
Less financial liabilities with an operational nature note 33.4.
2
Reported in non-current financial assets in the balance sheet.
section entitled Financial position, page 57f.
Group Management Report Report on Economic Position Financial position Net assets Business performance in the divisions
59
Business performance in the divisions

POST- ECOMMERCE- PARCEL DIVISION
Key figures Post - eCommerce - Parcel division

01/4 2
m
2015 2016 +/% Q4 2015 Q4 2016 +/%
Revenue 16,131 16,797 4.1 4,513 4,640 2.8
of which Post 9,784 9,742 0.4 2,650 2,582 2.6
eCommerce- Parcel 6,347 7,055 11.2 1,863 2,058 10.5
Profit from operating activities (EBIT) 1,103 1,443 30.8 487 489 0.4
of which Germany 1,089 1,448 33.0 488 496 1.6
International Parcel and eCommerce 14 5 <100 1 7 <100
Return on sales (%)1 6.8 8.6 10.8 10.5
Operating cash flow 1,337 361 73.0 797 603 24.3
1
EBIT/revenue.
Revenue increases by 4.1% The price increases for Standardbrief and Maxibrief let-
In the reporting year, with one additional working day in ter items and for additional services on 1January2016 more
Germany, revenue in the division was 16,797million, 4.1% than offset the decrease in revenue resulting from the over-
above the prior-year figure of 16,131million. Most of the all decline in Mail Communication volumes. Furthermore,
growth originated in the eCommerce- Parcel business unit. compared with the previous year, 2016 included additional
Excluding negative currency effects of 38million, the rev- mail volumes as a result of regional parliamentary elections.
enue increase was 4.4% in the reporting year. In the fourth The cross-border mail business saw a slight decline in
quarter of 2016, despite 0.8 fewer working days, revenue in 2016. The increase in small-goods shipments and the price
the division increased year-on-year by 2.8%. increases for the Standardbrief and Grobrief International
products at the beginning of the year were unable to offset
Price increases compensate decline in volume inthePost the effects of the decline in volumes experienced, in particu-
business unit lar, in the sending of documents and dialogue marketing
In the Post business unit, revenue was 9,742million in products.
the reporting year, 0.4% below the prior-year figure of Revenue in the Dialogue Marketing business was below
9,784million. Volumes witnessed a more significant de- the prior-year level. Volumes fell by 3.7%, especially in un-
cline, falling by 3.6%. In the fourth quarter of 2016, revenue addressed advertising mail.
was 2,582million (previous year: 2,650million).
Post: revenue
01/4 3
m 2015 2016 +/% Q4 2015 Q4 2016 +/%
adjusted adjusted
Mail Communication 6,537 6,597 0.9 1,768 1,757 0.6
Dialogue Marketing 2,200 2,154 2.1 613 586 4.4
Other 1,047 991 5.3 269 239 11.2
Total 9,784 9,742 0.4 2,650 2,582 2.6
Post: volumes
01/4 4
Mail items (millions) 2015 2016 +/% Q4 2015 Q4 2016 +/%
adjusted adjusted
Total 19,320 18,628 3.6 5,216 4,987 4.4
of which Mail Communication 8,552 8,242 3.6 2,231 2,189 1.9
of which Dialogue Marketing 8,846 8,521 3.7 2,473 2,320 6.2
eCommerce- Parcel business unit continues to grow Our domestic and cross-border parcel business in
Revenue in the eCommerce - Parcel business unit was Europe is continuing to perform well. In the Parcel Europe
7,055million in the reporting year, exceeding the prior- business, revenue grew by 15.1% to 856million in the
year figure of 6,347million by a robust 11.2%. The fourth reporting year (previous year: 744million).
quarter also saw double-digit revenue growth. Revenue in the DHL eCommerce business was up by
The Parcel business in Germany continued to grow 12.5% to 1,385million in 2016 (previous year: 1,231mil-
steadily due to the strong e-commerce trend. Revenue inthe lion), due to strong performance in the US domestic busi-
Parcel Germany business increased by 10.1% to 4,814mil- ness as well as cross-border business in Asia. Excluding
lion in the reporting year (previous year: 4,372million). currency effects, growth was 14.1%.
Volumes rose by 9.3% to 1,227million parcels.
eCommerce- Parcel: revenue

01/4 5
m 2015 2016 +/% Q4 2015 Q4 2016 +/%
adjusted adjusted
Parcel Germany 4,372 4,814 10.1 1,315 1,421 8.1
Parcel Europe 1
744 856 15.1 206 240 16.5
DHL eCommerce2 1,231 1,385 12.5 342 397 16.1
Total 6,347 7,055 11.2 1,863 2,058 10.5
1
Excluding Germany.
2
Outside Europe.
Parcel Germany: volumes

01/4 6
Parcels (millions)
2015 2016 +/% Q4 2015 Q4 2016 +/%
Total 1,123 1,227 9.3 338 368 8.9
EBIT substantially exceeds prior-year figure business reflect the investments in the expansion of the
EBIT in the division improved by a substantial 30.8% European and worldwide parcel business. Return on sales
to 1,443million in the reporting year (previous year: for the reporting year rose from 6.8% to 8.6%. Fourth-quar-
1,103million). Higher revenue and strict cost management ter EBIT was 489million (previous year: 487million).
contributed to this EBIT performance. In addition, the Operating cash flow decreased from 1,337million to
strike and one-time effects in Germany had a negative im- 361million, mainly as a result of a payment of 955million
pact on the prior-year figure. The majority of our EBIT is made to further fund pension obligations.
still generated in Germany; earnings in our international
Group Management Report Report on Economic Position Business performance in the divisions
61
EXPRESS DIVISION
Key figures EXPRESS division

01/4 7
m
2015 2016 +/% Q4 2015 Q4 2016 +/%
Revenue 13,661 14,030 2.7 3,638 3,830 5.3
of which Europe 6,045 6,317 4.5 1,637 1,716 4.8
Americas 2,559 2,741 7.1 698 757 8.5
Asia Pacific 4,995 5,194 4.0 1,317 1,407 6.8
MEA (Middle East and Africa) 1,039 1,054 1.4 268 274 2.2
Consolidation/Other 977 1,276 30.6 282 324 14.9
Profit from operating activities (EBIT) 1,391 1,548 11.3 319 435 36.4
Return on sales (%)1 10.2 11.0 8.8 11.4
Operating cash flow 1,761 1,927 9.4 671 727 8.3
1
EBIT/revenue.
Momentum in international business continues In the Time Definite International (TDI) product line,
Revenue in the division improved by 2.7% to 14,030mil- revenues per day increased by 6.1% and per-day shipment
lion in the reporting year (previous year: 13,661million). volumes by 7.6% in the reporting year. Revenues per day for
As a significant portion of our business activities take place the fourth quarter were up by 9.2% and per-day shipment
outside the euro zone, we recorded negative currency effects volumes by 7.4%.
of 440million. Excluding these effects, revenue growth In the Time Definite Domestic (TDD) product line, rev-
was 5.9%. This also reflects the fact that fuel surcharges were enues per day increased by 10.3% and per-day shipment
lower in all regions as the price of crude oil fell compared volumes by 9.9% in the reporting year. Growth in the fourth
with the previous year. Revenue increased by 6.3% exclud- quarter amounted to 9.3% for revenues per day and 10.6%
ing the negative effects resulting from both foreign currency for per-day volumes.
losses and lower fuel surcharges.
EXPRESS: revenue by product

01/4 8
m per day1 2015 2016 +/% Q4 2015 Q4 2016 +/%
adjusted adjusted
Time Definite International(TDI) 40.8 43.3 6.1 43.3 47.3 9.2
Time Definite Domestic(TDD) 3.9 4.3 10.3 4.3 4.7 9.3
1
To improve comparability, product revenues were translated at uniform exchange rates.
Those revenues are also the basis for the weighted calculation of working days.
EXPRESS: volumes by product

01/4 9
Thousands of items per day1 2015 2016 +/% Q4 2015 Q4 2016 +/%
adjusted adjusted
Time Definite International(TDI) 752 809 7.6 819 880 7.4
Time Definite Domestic(TDD) 395 434 9.9 435 481 10.6
1
To improve comparability, product revenues were translated at uniform exchange rates.
Those revenues are also the basis for the weighted calculation of working days.
Double-digit volume growth in Europe region Increased revenues per day in the MEA region
Revenue in the Europe region increased by 4.5% in the re- Revenue in the MEA region (Middle East and Africa) was
porting year to 6,317million (previous year: 6,045mil- up by 1.4% to 1,054million in the reporting year (previous
lion). This included negative currency effects of 184mil- year: 1,039million). This included negative currency
lion, which related mainly to the UK and Russia. Excluding effects of 47million, which resulted mainly from South
these effects, revenue growth was 7.5%. TDI revenues per Africa and Egypt. Excluding these effects, revenue increased
day rose by 7.2% and per-day TDI shipment volumes by by 6.0%. In the TDI area, revenues per day were up by 6.1%
10.3% in the reporting year. International per-day shipment and per-day volumes by 4.7%. Growth in the fourth quarter
revenues were up by 11.6% and per-day shipment volumes of 2016 amounted to 7.5% for revenues per day and 4.0%
by 12.9% in the fourth quarter of 2016. for per-day volumes.
Strong growth in the Americas region EBIT and return on sales see sizable improvement
Revenue in the Americas region increased by 7.1% to EBIT in the division rose by 11.3% to 1,548million in finan-
2,741million in the reporting year (previous year: cial year 2016 (previous year: 1,391million). Return on
2,559million). This figure included negative currency ef- sales rose from 10.2% to 11.0%. Network improvement,
fects of 141million, which resulted primarily from Mexico strong international business growth and pricing initiatives
and South America. Excluding these effects, revenue growth all contributed to this positive development. In the fourth
was 12.6% compared with the previous year. In the TDI area, quarter of 2016, EBIT improved by 36.4% to 435million
revenues per day increased by 8.8% in the reporting year and return on sales increased from 8.8% to 11.4%. Operating
and per-day volumes by 8.7%. Revenues per day for the cash flow rose by 9.4% to 1,927million in the reporting
fourth quarter were up by 10.0% and per-day shipment vol- year (previous year: 1,761million).
umes by 7.0%.
Moderate volume increases in Asia Pacific region

Revenue in the Asia Pacific region rose by 4.0% to
5,194million in the reporting year (previous year:
4,995million). This included negative currency effects of
67million that related primarily to China as well as other
countries in the region. Excluding these effects, the revenue
increase was 5.3% in the reporting period. Revenues per day
in the TDI area improved by 3.9%, due primarily to the 4.7%
increase in per-day shipment volumes. Growth in the fourth
quarter amounted to 7.0% for revenues per day and 2.4%
for per-day volumes.
63
GLOBAL FORWARDING, FREIGHT DIVISION
Key figures GLOBAL FORWARDING, FREIGHT division

01/5 0
m
2015 2016 +/% Q4 2015 Q4 2016 +/%
Revenue 14,890 13,737 7.7 3,736 3,623 3.0
of which Global Forwarding 10,827 9,626 11.1 2,673 2,566 4.0
Freight 4,238 4,274 0.8 1,113 1,098 1.3
Consolidation/Other 175 163 6.9 50 41 18.0
Profit from operating activities (EBIT) 181 287 >100 99 104 5.1
Return on sales (%)1 1.2 2.1 2.6 2.9
Operating cash flow 487 248 49.1 384 206 46.4
1
EBIT/revenue.
Freight forwarding revenues remain under pressure Ocean freight volumes exceeded the prior-year level by
onthewhole 4.4% to reach over three million TEUs in 2016, due primarily
Impacted by negative currency effects, lower fuel surcharges to growth on both the trade lanes between Asia and Europe
and the generally low level of air and ocean freight rates, as well as in intra-Asia volumes. Our ocean freight revenues
division revenue decreased by 7.7% to 13,737million in the fell by 10.2% in the reporting year. However, gross profit
reporting year (previous year: 14,890million). Excluding increased by 9.7%. Turnaround measures and transport cost
negative currency effects of 330million, revenue fell year- controls are yielding positive results but are being partially
on-year by 5.5%. In the fourth quarter of 2016, revenue was offset by the continued weak market environment. In the
down year-on-year by 3.0% to 3,623million a decline of fourth quarter, volumes were 8.4% above and revenue 3.5%
1.2% excluding negative currency effects of 67million. below the prior-year figures.
In the Global Forwarding business unit, revenue in the The performance of our industrial project business
reporting year fell significantly by 11.1% to 9,626million (shown in the following table, reported as part of Other in
(previous year: 10,827million). Excluding negative cur- the Global Forwarding business unit) was significantly
rency effects of 295million, the decline was 8.4%. Gross weaker than in the previous year, due in part to the conclu-
profit is defined as revenue from transport or other services sion of projects started in previous years and in part to low
less directly attributable costs. These include transport costs oil prices curbing customer demand for new projects, par-
for air and ocean freight, road and rail transport, expenses ticularly in the Oil&Energy sector. Gross profit thus de-
for commissions, insurances, customs clearance and other clined by 24.0% compared with the previous year.
revenue-related expenses. Gross profit declined by 0.6% to
2,419million (previous year: 2,434million).
Revenue decline in air freight business continues,

oceanfreight records increasing volumes
Although air freight volumes for 2016 as a whole again de-
clined by 1.7% compared with the previous year, they ex
perienced an increase of 7.0% in the fourth quarter, new
business acquired in the first half of the year having had a
positive effect on volumes. Air freight prices are under sub-
stantial pressure due to surplus capacities and low fuel costs,
which reduced our air freight revenue by 12.0% and gross
profit by 5.9% in the reporting year. In the fourth quarter,
revenue declined by 4.2%.
Global Forwarding: revenue

01/5 1
m
2015 2016 +/% Q4 2015 Q4 2016 +/%
Air freight 4,990 4,391 12.0 1,247 1,195 4.2
Ocean freight 3,685 3,309 10.2 882 851 3.5
Other 2,152 1,926 10.5 544 520 4.4
Total 10,827 9,626 11.1 2,673 2,566 4.0
Global Forwarding: volumes

01/5 2
Thousands
2015 2016 +/% Q4 2015 Q4 2016 +/%
Air freight tonnes 3,712 3,648 1.7 948 1,014 7.0
of which exports tonnes 2,109 2,081 1.3 547 578 5.7
Ocean freight TEUs1 2,930 3,059 4.4 722 783 8.4
1
Twenty-foot equivalent units.
Slight revenue growth in European overland transport

business
In the Freight business unit, revenue rose by 0.8% to
4,274million in 2016 (previous year: 4,238million),
slowed by negative currency effects of 38million. Trans-
port volumes increased by 7.5%, driven by e-commerce
business in Sweden and less-than-truckload business in
Germany. Business restrictions with some members of the
CIS region as well as uncertainties in the Middle East con-
tinue to impact our performance. Gross profit remained at
the prior-year level at 1,101million.
EBIT improves despite stagnating business performance

EBIT in the division improved significantly in the reporting
year, rising from 181million to 287million. In the pre-
vious year, EBIT was largely impacted by one-time effects
related to NFE totalling 371million. Gross profit margins
in air and ocean freight continued to improve. Positive effects
from our strategic initiatives contributed to the increase in
earnings. Return on sales rose to 2.1% (previous year:
1.2%). In the fourth quarter of 2016, EBIT increased by 5.1%
to 104million and return on sales to 2.9%.
Net working capital declined in the reporting year
thanks to a sustainable improvement in receivables man-
agement. Operating cash flow amounted to 248million
(previous year: 487million).
65
SUPPLY CHAIN DIVISION
Key figures SUPPLY CHAIN division

01/5 3
m
2015 2016 +/% Q4 2015 Q4 2016 +/%
Revenue 15,791 13,957 11.6 3,799 3,607 5.1
of which EMEA (Europe, Middle East and Africa) 9,474 7,336 22.6 2,152 1,853 13.9
Americas 4,323 4,454 3.0 1,128 1,170 3.7
Asia Pacific 2,035 2,200 8.1 528 592 12.1
Consolidation/Other 41 33 19.5 9 8 11.1
Profit from operating activities (EBIT) 449 572 27.4 176 206 17.0
Return on sales (%)1 2.8 4.1 4.6 5.7
Operating cash flow 611 658 7.7 588 520 11.6
1
EBIT/revenue.
Revenue impacted by change in NHS recognition SUPPLY CHAIN: revenue by sector and region, 2016
01/5 4
andcurrencyeffects Total revenue: 13,957million
Revenue in the division decreased by 11.6% to 13,957mil-
of which Retail 25%
lion in the reporting year (previous year: 15,791million).
Consumer 24%
This decline was due mainly to the change in revenue rec-
Automotive 13%
ognition in connection with the UK National Health Service Technology 12%
(NHS) in the fourth quarter of 2015 as a result of the revised Life Sciences&Healthcare 10%
terms of the contract. This reporting change reduced rev Others 7%
enue by 1,435million in the year under review. Further- Engineering&Manufacturing 5%
more, negative currency effects decreased revenue in the Financial Services 4%

of which Europe/Middle East/Africa/Consolidation 52%
reporting period by 707million. Excluding these effects,
Americas 32%
revenue growth was 2.0%. Compared with the previous year,
Asia Pacific 16%
the Consumer and Technology sectors achieved the highest
revenue growth. Revenue for the fourth quarter declined by
5.1%, from 3,799million to 3,607million, impacted by New business worth around 1,503million secured
the negative currency effects. In 2016, the division concluded additional contracts worth
In the EMEA region, revenue increased in the Automo- around 1,503million in annualised revenue with both
tive sector in the reporting year, driven by both higher vol- newand existing customers. The Consumer, Retail, Life
umes and new business. By contrast, revenue in the Life Sciences&Healthcare and Automotive sectors accounted
Sciences&Healthcare sector declined, reflecting the change for the majority of the gains. The annualised contract re-
in NHS revenue reporting in the UK. newal rate remained at a consistently high level.
In the Americas region, we gained revenue from new
business in the United States, driven predominantly by the Strategic initiatives stimulate EBIT growth
Consumer sector. EBIT in the division was 572million in the reporting year
The highest regional revenue growth was posted in the (previous year: 449million). The strong EBIT growth was
Asia Pacific region, from both new and additional business. due mainly to positive effects from our strategic initiatives.
In Australia, Life Sciences&Healthcare sector revenue im- Return on sales rose to 4.1% (previous year: 2.8%). EBIT was
proved substantially. Revenue also increased in Japan, Hong 206million in the fourth quarter of 2016 (previous year:
Kong and Thailand, notably in the Retail and Technology 176million).
sectors. Growth in Indonesia and Vietnam came primarily Operating cash flow increased to 658million in the
from the Consumer and Technology sectors. reporting year (previous year: 611million), due principally
to a net improvement in EBIT adjusted for non-cash items
and working capital levels.
DEUTSCHE POST SHARES

Deutsche Post shares: seven-year overview
01/5 5
2010 2011 2012 2013 2014 2015 2016

Year-end closing price 12.70 11.88 16.60 26.50 27.05 25.96 31.24
High 14.46 13.83 16.66 26.71 28.43 31.08 31.35
Low 11.18 9.13 11.88 16.51 22.30 23.15 19.73
Number of shares as at 31December millions 1,209.0 1,209.0 1,209.0 1,209.0 1,211.2 1,212.8 1,240.9
Market capitalisation as at 31December m 15,354 14,363 20,069 32,039 32,758 31,483 38,760
Average trading volume per day1 shares 5,329,779 4,898,924 4,052,323 4,114,460 4,019,689 4,351,223 3,497,213
Annual performance including dividends % 1.4 1.3 45.6 63.9 5.1 0.9 23.6
Annual performance excluding dividends % 5.9 6.5 39.7 59.6 2.1 4.0 20.3
Beta factor2 0.95 1.19 0.88 0.86 0.94 0.95 0.97
Earnings per share3 2.10 0.96 1.367 1.73 1.71 1.27 2.19
Cash flow per share4 1.59 1.96 0.17 2.47 2.51 2.84 2.03
Price-to-earnings ratio 5
6.0 12.4 12.2 7
15.3 15.8 20.4 14.3
Price-to-cash flow ratio4,6 8.0 6.1 97.6 10.7 10.8 9.1 15.4
Dividend m 786 846 846 968 1,030 1,0278 1,27110
Payout ratio % 30.9 72.7 51.6 46.3 49.7 66.79 48.2
Dividend per share 0.65 0.70 0.70 0.80 0.85 0.85 1.0510
Dividend yield % 5.1 5.9 4.2 3.0 3.1 3.3 3.4
1
Volumes traded via the Xetra trading venue. 2 Three-year beta; Source: Bloomberg. 3 Based upon consolidated net profit after deduction of non-controlling interests note 19.
4
Cash flow from operating activities. 5 Year-end closing price/earnings per share. 6 Year-end closing price/cash flow per share. 7 Adjusted to reflect the application of IAS19R .
8
Reduction due to the share buyback. 9 Excluding one-off effects (NFE and strike-related effects, disposals and other one-off effects, some of which are based upon assumptions
bymanagement): 45.8%. 10Proposal.
Free float increased shares (13.9%) is held by US investors (previous year: 13.5%),
The investment share of our largest investor KfW Banken followed by the United Kingdom with a share of 12.6%
gruppe is 20.5% (previous year: 20.9%) and the free float (previous year: 13.3%). The share of institutional investors
is 79.5%. Based upon our share registers figures, the share in Germany increased to 12.4% (previous year: 11.7%). Our
of outstanding stock held by private investors is 10.8% (pre- 25 largest institutional investors held a total of 41.3% of
vious year: 11.3%). In terms of the regional distribution of allissued shares (previous year: 38.2%).
identified institutional investors, the highest percentage of
Shareholder structure1 Shareholder structure by region1

01/5 6 01/5 7
d
a
b2
c
a
b b1
b
a KfW Bankengruppe 20.5% a Germany 43.7%

b Free float 79.5% b Other 29.8%
b1 Institutional investors 68.7% c USA 13.9%
b2 Private investors 10.8% d UK 12.6%
1
As at 31December2016. 1
As at 31December2016.
Group Management Report DEUTSCHE POST SHARES Non-Financial Figures Employees
67
NON-FINANCIAL FIGURES Staff levels were up in nearly all regions. We saw the
largest percentage increase in our workforce in the Amer
Employees icas. However, we continue to employ most of our personnel
in Germany.
Human Resources contributes to company success The opportunity for part-time employment was taken
The primary goal of Human Resources at Deutsche Post DHL by 18% of all employees (previous year: 18%). Over the
Group is to harness the potential of our employees and hire course of the year, 7.6% of employees left the Group un-
suitable candidates in all countries. In a nurturing work en- planned (previous year: 7.0%).
vironment we offer our employees a competitive system of Our current planning foresees another slight increase
reward and recognition. It is in this way that we are able to in the number of employees in financial year 2017.
boost their motivation and thus contribute to the companys
long-term success. Number of employees
01/5 9
Employee Opinion Survey 2015 2016 +/%
Our annual Group-wide Employee Opinion Survey com- Full-time equivalents

prises 41 questions categorised in ten key performance in- At year-end1 450,508 459,262 1.9
of which Post- eCommerce-
dicators and one index. The results in all areas showed a Parcel 170,549 175,700 3.0
positive trend for the year 2016, with scores at or above Express 82,127 84,398 2.8
external benchmarks in nearly all instances. The response Global Forwarding,
Freight 42,200 41,886 0.7
rate to this anonymous survey was 74% in the reporting year,
Supply Chain 145,032 146,739 1.2
one percentage point higher than the prior year.
Corporate Center/Other 10,600 10,539 0.6
of which Germany 173,042 174,537 0.9
Selected results from the Employee Opinion Survey Europe
01/5 8
% (excludingGermany) 109,646 113,104 3.2
2015 2016 Americas 76,666 79,347 3.5
Response rate 73 74 Asia Pacific 72,723 73,979 1.7
KPI Active Leadership 73 74 Other regions 18,431 18,295 0.7
KPI Employee Engagement 73 75 Average for the year2 449,910 453,990 0.9
Headcount
At year-end2 497,745 508,036 2.1
Average for the year 492,865 498,459 1.1
Number of employees continues to rise slightly of which hourly workers and
salaried employees 451,882 459,990 1.8
As at 31December2016, we employed 459,262 full-time
Civil servants 35,669 32,976 7.5
equivalents, 1.9% more than in the previous year. The head- Trainees 5,314 5,493 3.4
count at the end of the year was 508,036.
In the Post- eCommerce- Parcel division, we hired new 1
Excluding trainees.
2
Including trainees.
employees to support the continued strong growth in the
parcel business primarily in Germany, Europe, Asia and the
USA. In addition to organic growth, the acquisition of UK Staff costs at prior-year level
Mail in particular led to an increase in our workforce in At 19,592million, staff costs were at the prior-year level
Europe. The number of employees in the Express division (19,640million). Details can be found in note 14 to the con-
increased compared with the previous year. This was neces- solidated financial statements.
sary mainly in operations, due to the increase in shipment
volumes. In the Global Forwarding, Freight division, our
workforce declined slightly in the Global Forwarding busi-
ness unit, primarily in Europe and Asia. The number of
employees in the Supply Chain division increased due to
new and additional business.
Adequately compensating performance Our cross-divisional Certified Logistics Leader Pro-

One key factor for us as an attractive employer is our per- gramme is specially designed for managers. It promotes the
formance-related and market-based compensation which exchange of dialogue about the future challenges of the
supports the companys long-term requirements. For company as well as the role the managers play in shaping
example, in many countries we provide supplements for the future.
defined benefit and defined contribution retirement plans Deutsche Post DHL Group offers young people in Ger-
and enable access to health insurance. many training opportunities in over 15 state-accredited
Using a job grading system, we ensure that our remu- apprenticeship schemes as well as twelve dual-study pro-
neration structures are fair and balanced. Position grades grammes. In 2016, we offered 2,458 apprenticeships and
are based exclusively upon job category and responsibilities. study opportunities; in 2017, we shall increase this offer
to2,472.
Age-based and secure working conditions
In response to the rising average age in Germany, the Gen- Living diversity
erations Pact was concluded between Deutsche Post AG and People from various cultures, with different points of view
the trade unions in 2011. The pact was again a success in the and skills, work together at all levels of our Group. This
reporting year: 22,801 employees now have the required diversity makes us attractive for customers and employees
working-time accounts and 3,718 have entered partial re- and bolsters our innovative strength. As set out in our
tirement. Since 2016, we have been offering comparable Codeof Conduct, we place value on inclusion and equal
arrangements for civil servants, 2,923 of whom have estab- opportunity.
lished a lifetime working account and 589 have entered par- In the reporting year, we enhanced our diversity KPI
tial retirement. monitoring system and illustrated the contribution diversity
In addition, a collective agreement for modifying the makes to our companys success by means of individual ex-
retirement plan was reached at Deutsche Post AG during the amples. The Diversity Council met regularly and, amongst
reporting year: we are introducing pension fund compo- other things, discussed measures that are suitable for in-
nents for around 130,000 employees subject to collective creasing the number of women in executive positions.
agreements, which in future will offer the option of receiv- As at 31December2016, the proportion of women in
ing an annuity or a lump-sum payment. management worldwide was 21.1% (previous year: 20.7%),
a figure we intend to raise continuously. Divisional pro-
Targeted employee development grammes, the annual process to identify high-potential
We are developing our employees into certified specialists individuals, womens networks as well as options for im-
through our Group initiative Certified. The modular pro- proving work-family balance, will contribute to this.
gramme ranges from basic Group and industry knowledge
to specific skills associated with a division and function. By
2020, we aim to have certified around 80% of our workforce.
Group Management Report Non-Financial Figures Employees Health and safety Corporate responsibility
69
Health and safety focus areas of our sustainability management are d escribed
in our Corporate Responsibility Report, dpdhl.com/cr-report2016.
Bolstering health Responsible business practices ensure our business
Our business success depends largely on the potential of our operates in compliance with applicable laws, ethical stand-
employees to perform to the best of their abilities. Therefore, ards and international guidelines. We co-ordinate the main
we want to strengthen their physical, mental and social aspects and issues via our Group-wide Responsible Busi-
well-being, above all through prevention. ness Practice network. Through on-going dialogue with our
The Group-wide employee benefits programme offers stakeholders, we ensure that their expectations as regards
supplements to state health insurance in many countries. social and environmental issues are accounted for appropri-
In some cases it even enables initial access to affordable ately and that our business is aligned systematically with
h
ealthcare. their interests. In the reporting year, we established a guide-
The worldwide illness rate was 5.1% in the reporting year line and process for dealing with critical issues and handling
(previous year: 5.1%). relevant inquiries.
We use our expertise as a mail and logistics services
Ensuring occupational safety group for the benefit of society and the environment, and
In order to create a culture in the workplace where safety we motivate our employees to engage in volunteer work. We
always comes first, we implemented a series of preventive provide logistical support in the wake of natural disasters,
measures in the reporting year. Executives received training, are committed to the educational and professional develop-
employees were instructed in occupational safety, and over- ment of socially disadvantaged young people and support
all awareness was raised regarding safety risks and hazard local environmental protection and aid projects. In 2016, we
potential. continued our initiative to integrate refugees in Germany
The OHSAS 18001 standard is our Group-wide guideline by providing assistance with language and job skills.
for the implementation of occupational health and safety Measures to increase carbon efficiency and environ-
conditions in the workplace, and we are continuously in- mentally friendly GoGreen services help us to fulfil our re-
creasing the number of certified locations. sponsibility towards the environment and society, and to
create added value for our customers whilst strengthening
Workplace accidents
01/6 0
our market position. During the reporting year, our efforts
focused on efficiency measures for our vehicle fleet, small-
2015 2016 series production of our StreetScooter electric vehicle and
Accident rate (number of accidents per 200,000
hours worked)1 4.0 4.0
the introduction of a new model with twice the loading
Working days lost per accident1 15.6 14.8 capacity and a wider range than existing vehicles.
Number of fatalities due to workplace accidents 6 4
of which as a result of traffic accidents 1 2 Climate protection target achieved
We have anchored climate protection throughout the entire
1
Coverage: around 96%.
Group with the help of our GoGreen environmental protec-
tion programme. Our GoGreen products and services also
help customers achieve their own environmental targets,
Corporate responsibility whilst concurrently opening up new business opportunities
for the company.
Responsibility as a guiding principle In order to measure and manage our carbon efficiency,
As part of our corporate strategy, we have made it our goal we make use of a carbon efficiency index (CEX), page 34.
to be a benchmark company for responsible business. We In 2016, our direct (Scope 1) and indirect (Scope 2) green-
have codified responsibility in our Code of Conduct, which house gas emissions amounted to 6.05million tonnes of
is guided by both the principles of the Universal Declaration CO2e (previous year: 6.05million tonnes of CO2e). The in-
of Human Rights and the United Nations Global Compact direct greenhouse gas emissions (Scope 3) of our transport
and adheres to recognised legal standards. We also support subcontractors amounted to 20.87million tonnes of CO2e
the United Nations sustainable development goals. The main (previous year, adjusted: 20.97million tonnes of CO2e).
In the reporting year, we adjusted the weighting of the we achieved our goal of increasing the CEX by one index
carbon efficiencies of the divisions, which are included in point.
the CEX calculation. As previously, the weighting is calcu- Thus we achieved our Group-wide target of improving
lated using absolute CO 2 emissions; but now they are ad- our carbon efficiency by 30% compared with 2007 by the
justed for efficiency gains. The figures from the base year year 2020. On this basis we have set ourselves new targets,
2007 until 2015 have been uniformly adjusted accordingly. which we present in detail, along with other information,
For this period, the cumulative effect was four index points in our Corporate Responsibility Report, dpdhl.com/cr-report2016.
and the CEX for 2015 is therefore 29 index points. In 2016,
CO2e emissions, 2016

01/6 1
Total: 26.92 million tonnes1
21 %
Ground transport
65%
11% Air transport
Ocean transport
3%
Buildings
1
Scopes 1 to 3.
Fuel and energy consumption in own fleet and buildings

01/6 2
2015 2016
Consumption by fleet
Air transport (jet fuel) million
kilograms 1,312.8 1,332.5
Road transport (petrol,bio-
diesel, diesel, bio-ethanol, LPG) million litres 449.1 447.2
Road transport (biogas, CNG) million
kilograms 4.9 4.5
Energy for buildings and facilities million
(including electric vehicles) kilowatt
hours 3,113 3,489
Group Management Report Non-Financial Figures C orporate responsibility Customers and quality
71
Customers and quality

Facts and figures, customers and quality
01/6 3
94 % D + 1 APPROXIMATELY 290
Letters delivered within Germany the day afterposting. locations certified by the Transported Asset Protection Association
(TAPA).
Open 53 hours Net Promoter Approach
Average weekly opening time
ofaround27,000 salespoints
MAIL AND DHL B USINESS Continuously turning criticism
intoimprovements.
inGermany. PARCEL BUSINESS UNITS
93.8% SATISFIED CUSTOMERS MYDHL PORTAL
According to independent market study Kundenmonitor Deutschland. Allowing business customers to easily send express items.
TV-certified
Certified external system for
OVER 2,000 ELECTRIC Insanely Customer
CentricCulture
CUSTOMER IMPROVE
measuring mail transit times VEHICLES Keeping a constant eye MENT PROJECTS
(end-to-end) and internal put into operation in 2016. oncustomer requirements. Around 100 improvement initiatives
system for measuring parcel successfully implemented in 2016.
transit times.
Sending mail and parcels quickly and reliably creasing productivity in our existing facilities and expand-
Our customers rate the quality of our services based upon ing our infrastructure nationwide. With 34 parcel centres
whether posted items reach their destinations quickly, reli- now in operation, our sorting capacity is over one million
ably and undamaged. According to surveys conducted by parcels per hour. More than 70 mechanised delivery bases
Quotas, a quality research institute, 94% of the domestic support our operations.
letters posted in Germany during our daily opening hours The average weekly opening time of our around 27,000
or before final collection are delivered to their recipients the sales points was, as in the previous year, 53 hours. The
next day. Around 99% reach their recipients within two days. annual survey conducted by Kundenmonitor Deutschland,
This puts us well above the legal requirements of 80% (D+1) the largest consumer study in Germany, showed a high ac-
and 95% (D+2). The Quotas measuring system is audited ceptance of our exclusively partner-operated retail outlets:
and certified each year by TV Rheinland for compliance 93.8% of customers were satisfied with our quality and ser-
with EN 13850 requirements. Transit times for international vice (previous year: 91.5%). In addition, impartial mystery
letters are determined by the International Post Corpor shoppers from TNS Infratest tested the postal outlets in re-
ation. Here, we rank amongst the top postal companies. tail stores around 31,000 times over the year. The result
In the parcel business, 86% of items reach their recipi- showed that 93.7% of customers were served within three
ents the next working day. This is based upon parcels that minutes (previous year: 93.4%).
were collected from business customers and that were de- Another central characteristic of the quality of our
livered the next day. Our internal system for measuring products is environmental protection, which we describe
parcel transit times has been certified by TV Rheinland inour Corporate Responsibility Report, dpdhl.com/cr-report2016. In the
since 2008. area of electric mobility, which is strategically important to
In our mail business, we have, to date, achieved a high us, we put over 2,000 vehicles into operation in the report-
level of automation that exceeds 90%. In our parcel network, ing year and began to transfer our delivery operations in
we have increased our sorting capacity by 50% since the Bochum, Cologne, Stuttgart and Hamburg completely to
launch of our Parcel Production Concept in 2012 by in- these vehicles.
Service quality and the insanely customer centric culture Customer feedback systematically improves forwarding
inexpress business business
As a global network operator that applies standardised pro- In the Global Forwarding business unit, we use customer
cesses, we are consistently optimising our service to keep feedback to systematically improve our offering. The on-
customer commitments, respond specifically to their wishes going customer response that we collect via the Net Pro-
and always deliver the best possible quality. Therefore, we moter Approach has again generated specific feedback. In
keep a constant eye on the changing requirements of our 2016, we expanded the contents of the survey and imple-
customers, for example, through our Insanely Customer mented it in over 50 countries.
Centric Culture (ICCC) programme and as part of the Net We have more than 200 initiatives to improve the ser-
Promoter Approach. Our managers talk to dissatisfied cus- vice we provide. In the reporting year, around 100 of these
tomers personally in order to find out the root causes of Customer Improvement Projects visibly improved our
their dissatisfaction. Customer criticism thereby translates punctuality, reporting and invoicing. Various measures
continuously into improvements. were implemented to ensure that our operating perform
Via the MyDHL portal and the Small Business Solution ance in the Global Forwarding business unit is reviewed and
section on our website, small and medium-sized business improved continuously. For example, we have already intro-
customers in particular can ship their goods with ease and duced routine performance dialogues for more than 80% of
obtain comprehensive information about shipping. our core team. These dialogues help us detect problems
In Europe, we can provide our global customers with a early and resolve them using structured problem-solving
central point of contact with our European Key Account techniques.
Support. Upon request, shipment information can even be In light of our goal of delivering the best customer ex-
updated directly in the customers systems. perience in the industry, the Freight business unit has tested
We use quality control centres to track shipments a new website, with a special focus on accessibility for cus-
worldwide and adjust our processes dynamically as required. tomers and partners via mobile devices. We further en-
All our premium products are tracked by default for ex- hanced our product portfolio, especially in the area of
ample, Medical Express shipments until they are delivered. multimodal solutions.
As of the reporting year, more customers can track their
shipments as well as choose the delivery time and location Quality leader in contract logistics
on mobile devices. The On Demand Delivery Service in- We aim to be the quality leader in contract logistics. By ap-
creases the first delivery success rate. The new Service Point plying standardised operations and solutions supported by
Locator virtually directs shippers to the closest service point champions in all our sites, we ensure that we meet and ex-
and provides information regarding its services; when used ceed customers quality expectations.
within the app, track and trace functionality is also available. In the reporting year we replaced our annual telephone
Our operational safety, compliance with standards and surveys regarding customer satisfaction with shorter, more
the quality of service at our facilities are reviewed regularly frequent online surveys.
in co-operation with government authorities. Approxi- As part of our operations excellence programme, we
mately 290 locations over 100 of which are in Europe have defined uniform operating standards and introduced
have been certified by the Transported Asset Protection a Service Quality KPI that routinely measures whether our
Association (TAPA), one of the worlds most renowned locations are meeting service level commitments.
safety associations, making us the leader in this field. Our
sites have had global ISO 9001:2008 certification since 2013,
which was renewed in 2016, thus validating our policy of
harmonising quality standards. In addition, in specific re-
gions and countries we were certified or re-certified in the
areas of environmental protection and energy management,
which we describe in our Corporate Responsibility Report, dpdhl.com/
cr-report2016.
Group Management Report Non-Financial Figures Customers and quality Brands
73
Brands
Brand architecture
01/6 4
Group
Divisions Post- eCommerce- Parcel Express Global F orwarding, Freight Supply Chain
Brands
Strong brands as a factor for success value of US$13.2billion (previous year: US$16.3billion).
In 2016, independent research institutions again testified to Millward Browns current ranking is based on the 2015 fig-
the high reputation enjoyed by the Deutsche Post DHL ures and a weaker dollar rate than in the previous year, and
Group brands. is comparable with the ranking from 2014 (US$13.7billion,
The DHL brand was valued at US$5.7billion by the con- 73rd place). A representative survey commissioned by the
sulting company Interbrand (previous year: US$5.4billion). Group and covering twelve countries on four continents
This moves DHL up three places to 77th on the Interbrand indicates an increase in DHL brand recognition amongst
list of Best Global Brands. The study looks at financial fig- decision makers to 95% (previous year: 94%).
ures as well as market and consumer research data. Market Consulting company Brand Finance valued our domes-
research institute Millward Brown uses a similar system to tic Deutsche Post brand at 2.9billion in the reporting year
rank the worlds most valuable brands each year. The DHL (previous year: 2.7billion). This puts the Deutsche Post
brand was ranked 73rd (previous year: 66th place) in its list brand in 29th place in the German Top 50 (previous year:
of the Top 100 Most Valuable Global Brands with a brand 28th place). Interbrand did not rank any German brands in
Value of Group brands in 2016

01/6 5
DHL IS AMONGST THE TOP 100 BRAND VALUE I NCREASED AGAIN 2
MOSTVALUABLE GLOBAL BRANDS1

US$5.7
BILLION
(2016)
73 US$5.4
BILLION
7 (2015)
VALUE OF DEUTSCHE POST BRAND 2016 GERMAN TOP 503

ISINCREASING3
2.9
BILLION
2.7 (2016) 29
BILLION
(2015)
1
1
Source: Millward Brown, 2016.
2
Source: Interbrand, 2016.
3
Source: Brand Finance, 2016.
the year under review. In 2015, Deutsche Post was ranked OPPORTUNITIES
30th amongst the most valuable German brands with a
brand value of 979million. ANDRISKS
Advertising and partnerships boost the DHL brand Overall Board of Management
Trade and logistics can improve peoples lives. This is the assessment of the opportunity
guiding theme under which DHL has continued the brand
andrisksituation
campaign begun in the previous year. Print and online ad-
vertising, TV commercials and social media activities serve Identifying and swiftly capitalising upon opportunities and
to emotionalise the brand experience both worldwide and counteracting risks are important objectives for our Group.
in key domestic markets. We already account for the anticipated impact of potential
DHL also acts as a partner in high-profile events with events and developments in our business plan. Opportun
the objective of improving the reputation and awareness of ities and risks are defined as potential deviations from pro-
its brand. During the reporting year, logistics partnerships, jected earnings. In consideration of our current business
some of them long-standing, were continued such as For- plan, the Groups overall opportunity and risk situation has
mula 1, Formula E and the MotoGP world motorcycle not changed significantly compared with last years risk re-
racing series. We also continued our proven global DHL port. No new risks have been identified that could have a
logistics partnerships with FC Bayern Munich, Fashion potentially critical impact upon the Groups result. Based
Week events, Cirque du Soleil and Gewandhausorchester upon the Groups early warning system and in the estima-
Leipzig. tion of its Board of Management, there were no identifiable
risks for the Group in the current forecast period which,
Marketing expenditures, 2016
01/6 6
individually or collectively, cast doubt upon the Groups
Volume: around 385million ability to continue as a going concern. Nor are any such
risks apparent in the foreseeable future. The assessment of
Product development and communication 57.1%
a stable to positive outlook is moreover reflected in the
Other 23.0%
Groups credit ratings, as found on page 55.
Public&customer relations 14.1%
Corporate wear 5.8%
Opportunity and risk management

Sports sponsorships put the Deutsche Post brand Uniform reporting standards for opportunity
inthepublic eye andriskmanagement
Deutsche Post sponsors popular national sporting events to As an internationally operating logistics company, we are
increase the emotional charge of its brand. The strategic facing numerous changes. Our aim is to identify the result-
partnership with the Deutscher Fuball-Bund (DFB Ger- ing opportunities and risks at an early stage and take the
man football federation) remained the focus of its sport necessary measures in the specific areas affected in due time
sponsoring activities in the reporting year. Deutsche Post to ensure that we achieve a sustained increase in enterprise
was involved with the German national football team and value. Our Group-wide opportunity and risk management
the DFB tournament as well as amateur football leagues and system facilitates this aim. Each quarter, managers estimate
the FUSSBALL.DE platform. We have also continued our the impact of future scenarios, evaluate opportunities and
partnership with the Deutsche Tourenwagen-Masters (DTM risks in their departments and present planned measures as
German Touring Car Masters) racing series. well as those already taken. Queries are made and approvals
given on a hierarchical basis to ensure that different man
agerial levels are involved in the process. Opportunities and
risks can also be reported at any time on an ad hoc basis.
Group Management Report NON-FINANCIAL FIGURES Brands Opportunities andRisks Overall Board of Management a ssessment
of the opportunity andrisksituation Opportunity and risk management 75
Our early identification process links the Groups op- The most important steps in our opportunity and risk man-
portunity and risk management with uniform reporting agement process are:
standards. We continuously improve the IT application used 1 Identify and assess: Managers in all divisions and regions
for this purpose. Furthermore, we use a Monte Carlo simu evaluate the opportunity and risk situation on a quar-
lation for the purpose of aggregating opportunities and terly basis and document the action taken. They use
risks in standard evaluations. scenarios to assess best, expected and worst cases. Each
The simulation is a stochastic model that takes the prob- identified risk is assigned to one or more managers who
ability of occurrence of the underlying risks and opportun assess and monitor the risk, specify possible procedures
ities into consideration and is based upon the law of large for going forwards and then file a report. The same ap-
numbers. One million randomly selected scenarios one plies to opportunities. The results are compiled in a
for each opportunity and risk are combined on the basis database.
of the distribution function of each individual opportunity 2 Aggregate and report: The controlling units collect the
and risk. The resulting totals are shown in a graph of fre- results, evaluate them and review them for plausibility.
quency of occurrence. The following graph shows an ex If individual financial effects overlap, they are noted in
ample of such a simulation: our database and taken into account when compiling
them. After being approved by the department head, all
Monte Carlo simulation
01/6 7
results are passed on to the next level in the hierarchy.
Frequency of occurrence The last step is complete when Corporate Controlling
in one million simulation steps (incidence density) reports to the Group Board of Management on signifi-
Bandwidth with 95% probability cant opportunities and risks as well as on the potential
overall impact each division might experience. For this
purpose, opportunities and risks are aggregated for 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 in-
aa m + bb m + zz m dicate the total spectrum of results for the respective
Deviation from planned EBIT division. Within these extremes, the total expected
Planned EBIT Most common value in one million simulation steps (mode) cases shows current expectations. The second method
Worse than expected Better than expected
makes use of a Monte Carlo simulation, the divisional
results of which are regularly included in the opportu-
Opportunity and risk management process
01/6 8
nity and risk reports to the Board of Management.
3 Overall strategy: The Group Board of Management de-
1 Identify and assess 2 Aggregate and report
Assess Review
cides on the methodology that will be used to analyse
Define measures Supplement and change and report on opportunities and risks. The reports cre-
Analyse Aggregate ated by Corporate Controlling provide an additional,
Identify
Internal
Report regular source of information to the Board of Manage-
3 Overall strategy/
auditors
risk management/
ment for the overall steering of the Group.
review
processes compliance
5 Control
Determine
Review results
Manage
Review
measures 4 Operating measures
Monitor early Plan
warning indicators Implement
Divisions Opportunity and risk-controlling processes Board of Management

Internal auditors
4 Operating measures: The measures to be used to take implementation in a timely manner, in monthly newsletters,
advantage of opportunities and manage risks are deter- for example. Often, accounting processes are pooled in a
mined within the individual organisational units. They shared service centre in order to centralise and standardise
use cost-benefit analyses to assess whether risks can be them. The IFRS financial statements of the separate Group
avoided, mitigated or transferred to third parties. companies are recorded in a standard, SAP-based system
5 Control: For key opportunities and risks, early warning and then processed at a central location where one-step
indicators have been defined that are monitored con- consolidation is performed. Other ICS components include
stantly by those responsible. Corporate Internal Audit automatic plausibility reviews and system validations of the
has the task of ensuring that the Board of Managements accounting data. In addition, regular, manual checks are
specifications are adhered to. It also reviews the quality carried out decentrally by those responsible at the local level
of the entire opportunity and risk management oper (a chief financial officer, for example), and centrally by
ation. The control units regularly analyse all parts of the Corporate Accounting&Controlling, Taxes and Corporate
process as well as the reports from Internal Audit and Finance at the Corporate Center.
the independent auditors, with the goal of identifying Over and above ICS and risk management, Corporate
potential for improvement and making adjustments Internal Audit is an essential component of the Groups con-
where necessary. trol and monitoring system. Using risk-based auditing pro-
cedures, Corporate Internal Audit regularly examines the
Internal accounting control and risk management system processes related to financial reporting and reports its re-
(Disclosures required under section 315(2), no.5 of the sults to the Board of Management. The data reported are
Handelsgesetzbuch (HGB German Commercial Code) and checked and analysed chronologically, both upstream and
explanatory report) downstream. If necessary, we call in outside experts. Finally,
Deutsche Post DHL Group uses an internal control system the Groups standardised process for preparing financial
(ICS) to ensure that Group accounting adheres to generally statements using a centrally administered financial state-
accepted accounting principles. The system is intended to ments calendar guarantees a structured and efficient ac-
make sure that statutory provisions are complied with and counting process.
that both internal and external accounting provide a valid
depiction of business processes in figures. All figures must Reporting and assessing opportunities and risks
be entered and processed accurately and completely. Ac- In the following, we have reported mainly on those risks and
counting mistakes are to be avoided in principle and signif- opportunities which, from the current standpoint, could
icant assessment errors uncovered promptly. have a significant impact upon the Group during the fore-
The ICS design comprises organisational and technical cast period beyond the impact already accounted for in the
measures that extend to all companies in the Group. Cen- business plan. The risks and opportunities have been as-
trally standardised accounting guidelines govern the recon- sessed in terms of their probability of occurrence and their
ciliation of the single-entity financial statements and ensure impact. The assessment is used to classify the opportunities
that international financial reporting standards (EU IFRSs) and risks into those of low, medium or high relevance. We
are applied in a uniform manner throughout the Group. All characterise opportunities and risks of high or medium
Group companies are required to use a standard chart of relevance as significant, shown as black or grey in table
accounts. We immediately assess new developments in 01/69. The following assessment scale is used:
international accounting for relevance and announce their
Group Management Report Opportunities andRisks Opportunity and risk management Categories of opportunities and risks
77
Classification of risks and opportunities

01/6 9
Probability of occurrence (%) Planned Group EBIT
Risks Opportunities
>50
>15
to
50
15
<500 5 00 to 1 51 1 50 to 0 0 to 150 151 to 500 >500

Effects (m )
Significance for the Group: Low Medium High
The opportunities and risks described here are not necessar- Categories of opportunities and risks
ily the only ones the Group faces or is exposed to. Our busi-
ness activities could also be influenced by additional factors Opportunities and risks arising from political, regulatory
of which we are currently unaware or which we do not yet orlegal conditions
consider to be material. A number of risks arise primarily from the fact that the
Opportunities and risks are identified and assessed de- Group provides some of its services in a regulated market.
centrally at Deutsche Post DHL Group. Reporting on pos Many of the postal services rendered by Deutsche Post AG
sible deviations from projections, including latent oppor and its subsidiaries (particularly the Post- eCommerce-
tunities and risks, occurs primarily at the country or Parcel division) are subject to sector-specific regulation by
regional level. In view of the degree of detail provided in the the Bundesnetzagentur (German federal network agency),
internal reports, we have combined the decentrally reported Glossary, page 181, pursuant to the Postgesetz (PostG Ger-
opportunities and risks into the categories shown below for man Postal Act), Glossary, page 181. The Bundesnetzagentur
the purposes of this report. It should be noted that the un- approves or reviews prices, formulates the terms of down-
derlying individual reports with the exception of oppor- stream access and has special supervisory powers to combat
tunities and risks associated with the world economy and market abuse.
global economic output usually exhibit a zero to minimal In a judgement dated 14July2016, the General Court
correlation. Beyond these it is unlikely that several major of the European Union (EGC) set aside the European Com-
opportunities or risks would occur systematically at the missions state aid decision dated 25January2012 in an ac-
same time in a single category or across categories. tion brought by the Federal Republic of Germany. In its
Unless otherwise specified, a low relevance is attached state aid decision, the European Commission had argued
to individual opportunities and risks within the respective that the financing of civil servant pensions in part consti-
categories and in the forecast period under observation tuted unlawful state aid that had to be repaid to the federal
(2017). The opportunities and risks generally apply for all government. We have described this in detail in the 2015
divisions, unless indicated otherwise. Annual Report in notes 49 and 51 to the consolidated financial statements,
In their actions, Deutsche Post AG and
dpdhl.com/en/investors.
the federal government asserted that the state aid decision
was unlawful. The EGC has now followed this argument in The trend towards outsourcing business processes con-
the action brought bythe federal government. The action tinues. Supply chains are becoming more complex and more
brought by Deutsche Post AG is still pending. Since the international, but are also more prone to disruption. Cus-
European Commission did not file an appeal against the tomers are therefore calling for stable, integrated logistics
EGCs judgement dated 14July2016, that decision is now solutions, which is what we provide with our broad-based
legally binding. The state aid decision of the European service portfolio. We continue to see growth opportunities
Commission is therefore null and void with final effect and in this area, in particular in the Supply Chain division and
there are no longer any grounds for the obligation to repay as a result of closer co-operation between all our divisions.
the alleged state aid under the state aid decision. The amount The booming online marketplace represents another
of 378million deposited in a trustee account has been opportunity for us in that it is creating demand for trans-
r eleased. porting documents and goods. The B2C market, Glossary,
We describe other significant legal proceedings in page 181, is experiencing double-digit growth, particularly
note 48. However, we do not see these proceedings posing due to the rapid rise in digital retail trade. This has created
a risk of significant deviation from plan for the forecast high growth potential for the domestic and international
p
eriod 2017. parcel business, which we intend to tap into by expanding
our parcel network.
Macroeconomic and industry-specific opportunities and risks We are nonetheless unable to rule out the possibility of
Macroeconomic and sector-specific conditions are a key an economic downturn in specific regions or a stagnation
factor in determining the success of our business. For this or decrease in transport quantities. However, this would not
reason, we pay close attention to economic trends in the reduce demand in all business units. Indeed, the opposite
regions. For example, possible changes in US economic pol- effect could arise in the parcel business, for example, as a
icy and the UKs anticipated petition to leave the EU could result of more frequent online purchasing amongst con
have an influence that is currently not foreseeable. Despite sumers. Companies might also be forced to outsource trans-
the volatile economic climate, demand for logistics services port services in order to lower costs. Cyclical risks can affect
rose in 2016, as did the related revenues. our divisions differently with respect to magnitude as well
A variety of external factors offer us numerous oppor- as point in time, which may mitigate the total effect. There-
tunities; indeed we believe that the global market will con- fore, we consider these to be medium-level risks. Moreover,
tinue to grow. Advancing globalisation and further world we have taken measures in recent years to make costs more
economic growth mean that the logistics industry will con- flexible and to allow us to respond quickly to a change in
tinue to expand. This is especially true of Asia, where trade market demand.
flows to other regions and in particular within the continent Deutsche Post and DHL are in competition with other
will continue to increase. As the market leader, the expan- providers. Such competition can significantly impact our
sion will benefit us with our DHL divisions to an above- customer base as well as the levels of prices and margins in
average extent. This also applies to other countries in re- our markets. In the mail and logistics business, the key fac-
gions with strong economic growth such as South America tors for success are quality, customer confidence and com-
and the Middle East, where we are similarly well positioned petitive prices. Thanks to the high quality we offer, along
to take advantage of the market opportunities arising. with the cost savings we have generated in recent years, we
Whether and to what extent the logistics market will believe that we shall be able to remain competitive and keep
grow depends on a number of factors. any negative effects at a low level.
Group Management Report Opportunities andRisks Categories of opportunities and risks
79
Financial opportunities and risks As a logistics group, our biggest commodity price risks
As a global operator, we are inevitably exposed to financial result from changes in fuel prices (kerosene, diesel and mar
opportunities and risks. These are mainly opportunities or ine diesel). In the DHL divisions, most of these risks are
risks arising from fluctuating exchange rates, interest rates passed on to customers via operating measures (fuel sur-
and commodity prices and the Groups capital requirements. charges). We have entered into noteworthy hedging trans-
We attempt to reduce the volatility of our financial perform actions for the purchase of diesel in the Post- eCommerce-
ance due to financial risk by implementing both operational Parcel division.
and financial measures. The key control parameters for liquidity manage-
Opportunities and risks with respect to currencies may ment are the centrally available liquidity reserves.
result from scheduled foreign currency transactions or Deutsche Post DHL Group had central liquidity reserves of
those budgeted for the future. Significant currency risks 3.9billion as at the reporting date, consisting of central
from budgeted transactions are quantified as a net position financial investments amounting to 1.9billion plus a syn-
over a rolling 24-month period. Highly correlated curren- dicated credit line of 2billion. The Groups liquidity is
cies are consolidated in blocks. Some of the identified risks therefore sound in the short and medium term. Moreover,
are hedged using derivatives. The most important net sur- the Group enjoys open access to the capital markets on ac-
pluses are budgeted at the Group level in the US dollar count of its good ratings within the industry, and is well
block, pound sterling, Japanese yen and Indian rupee. The positioned to secure long-term capital requirements.
Czech crown is the only currency with a considerable net The Groups net debt amounted to 2.3billion at the end
deficit. By offsetting the net deficit in US dollars with sur- of 2016. The share of financial liabilities with short-term
pluses in other highly correlated currencies, the net risk in interest rate lock-ins in the total financial liabilities in the
the US dollar block at the Group level is reduced and thus amount of 6.0billion was approximately 24%.
only managed selectively. The average hedging level of all Further information on the Groups financial position
main currencies for the year 2017 was approximately 52% and finance strategy as well as on the management of finan-
as at the reporting date. cial risks can be found in the report on the economic posi-
A potential general devaluation of the euro presents an tion and in note 45.
opportunity for the Groups earnings position. Based upon
current macroeconomic estimates, we consider this oppor- Opportunities and risks arising from corporate strategy
tunity to be of low relevance. The main risk to the Groups Over the past few years, the Group has ensured that its busi-
earnings position would be a general appreciation of the ness activities are well positioned in the worlds fastest-grow-
euro. The significance of this is deemed low when consid- ing regions and markets. We are also constantly working to
ering the individual risks arising from the performance of create efficient structures in all areas to enable us to flexibly
the respective currencies. adapt capacities and costs to demand a prerequisite for
The overall risk of all these currency effects is currently lasting, profitable business success. With respect to strategic
deemed to be of low relevance for the Group. This means a orientation, we are focusing upon our core competencies in
downgrade compared with the previous year. In the 2015 the mail and logistics businesses with an eye towards grow-
Annual Report, the risk for 2016 was considered to be of ing organically and simplifying our processes for the bene-
medium relevance. fit of our customers. Digitalisation plays a key role in this.
Our digital transformation involves the integration of new
technologies into a corporate culture that uses the changing
environment to its advantage. Opportunities arise, for ex-
ample, from new infrastructure networking possibilities as In the Global Forwarding, Freight division, we purchase
well as digital business models. Our earnings projections transport services from airlines, shipping companies and
regularly take account of development opportunities arising freight carriers rather than providing them ourselves. In the
from our strategic orientation. best-case scenario, we succeed in sourcing transport ser-
Risks arising from the current corporate strategy, which vices on a cost-effective basis. We thus have the opportunity
extends over a long-term period, are considered to be of low of generating higher margins. In the worst-case scenario, we
relevance for the Group in the period under review. The bear the risk of not being able to pass on all price increases
divisions face the following special situations: to our customers. The extent of the opportunities and risks
In the Post- eCommerce- Parcel division, we are re- essentially depends on trends in the supply, demand and
sponding to the challenges presented by the structural price of transport services as well as the duration of our
change from a physical to a digital business. We are coun- contracts. Comprehensive knowledge in the area of broker-
teracting the risk arising from changing demand by expanding transport services helps us to capitalise on opportunities
ing our range of services. Due to the e-commerce boom, we and minimise risk.
expect our parcel business to continue growing robustly in In the Supply Chain division, we provide customers in
the coming years and are therefore extending our parcel a variety of industries with solutions along the entire logis-
network. We are also expanding our range of electronic tics chain. Our success is highly dependent on our custom-
communications services, securing our standing as the ers business success. Since we offer customers a widely di-
quality leader and, where possible, making our transport versified range of products in different sectors all over the
and delivery costs more flexible. We follow developments world, we can diversify our risk portfolio and thus counter-
in the market very closely and take these into account in our act the incumbent risks. Moreover, our future success also
earnings projections. For the specified forecast period, we depends on our ability to continuously improve our existing
do not see these developments as having significant poten- business and to grow in our most important markets and
tial to impact our business negatively. customer segments. We do not see any significant strategic
In the Express division, our future success depends opportunities or risks for the Supply Chain division beyond
above all upon general factors such as trends in the com those reported in the section entitled Opportunities and
petitive environment, costs and quantities transported. risks arising from macroeconomic and industry-specific
After having spent recent years successfully restructuring conditions.
and further developing our business, we are focusing upon
fostering growth in our international business. We expect a Opportunities and risks arising from internal processes
further increase in shipment volumes. Based upon this as- For us to render our services, a number of internal processes
sumption, we are investing in our network, our services, our must be aligned. These include in addition to the funda-
employees and the DHL brand. Against the backdrop of the mental operating processes supporting functions such as
past trend and the overall outlook, we do not see any signifi sales and purchasing as well as the corresponding manage-
cant strategic opportunities or risks for the Express division ment processes. The extent to which we succeed in aligning
beyond those reported in the section on Opportunities and our internal processes to meet customer needs whilst simul-
risks arising from macroeconomic and industry-specific taneously lowering costs correlates with potential positive
conditions. deviations from the current projections. We are steadily
improving internal processes with the help of our First
Choice initiatives. This improves customer satisfaction
whilst reducing our costs. Our earnings projection already
incorporates expected cost savings.
Group Management Report Opportunities andRisks Categories of opportunities and risks
81
Logistics services are generally provided in bulk and All of our software is updated regularly to address bugs,
require a complex operational infrastructure with high close potential gaps in security and increase functionality.
quality standards. To consistently guarantee reliability and We employ a patch management process a defined proced
punctual delivery, processes must be organised so as to pro- ure for managing software upgrades to control risks
ceed smoothly with no technical or personnel-related thatcould arise from outdated software or from software
glitches. Any weaknesses with regard to the tendering, sort- u
pgrades.
ing, transport, warehousing or delivery of shipments could Based upon the measures described above, we estimate
seriously compromise our competitive position. To enable the probability of experiencing a significant IT incident with
us to identify possible disruptions in our workflows and serious consequences as highly unlikely.
take the necessary measures at an early stage, we have de- In terms of our E-POST products in particular E-Post-
veloped a global IT platform that depicts and integrates our brief the E-Post platform was re-certified by the German
global supply chains and locations. Near real-time informa- Federal Office for Information Security in accordance
tion on incidents relevant to security flows into the system, withits standards for IT-Grundschutz following completion
which in cases of disruption also serves as a central commu- ofthe 2016 annual audit. The E-Post platform was also re-
nications platform. This poses a competitive advantage that certified by TV Informationstechnik GmbH pursuant to
has already met with a high degree of interest from both trusted site privacy criteria and thus complies with both
security agencies and customers. legal and data protection requirements.
Opportunities and risks arising from information technology Opportunities and risks arising from human resources
The security of our information systems is particularly im- It is essential for us to have qualified and motivated employ-
portant to us. The goal is to ensure continuous IT system ees in order to achieve long-term success. However, demo-
operation and prevent unauthorised access to our systems graphic change could lead to a decrease in the pool of avail-
and databases. To fulfil this responsibility, the Information able talent in various markets. We respond to this risk with
Security Committee, a sub-committee of the IT Board, has measures designed to motivate our employees as well as
defined guidelines, standards and procedures based upon promote their development.
ISO 27002, the international standard for information secu- We use Strategic Resource Management to address the
rity management. In addition, Group Risk Management, IT risks arising from an ageing population and the capacity
Audit, Data Protection and Corporate Security monitor and shortages that may result from changing demographic and
assess IT risk on an on-going basis. For our processes to run social structures. The experience gained is used to continu-
smoothly at all times, the essential IT systems must be con- ously improve strategic resource management as an analysis
stantly available. We ensure this by designing our systems and planning instrument. The Generations Pact, page 68,
to protect against complete system failures. In addition to agreed upon with trade unions in Germany also contributes
third-party data centres, we operate central data centres in to taking advantage of the career experience of employees
the Czech Republic, Malaysia and the United States. Our for as long as possible, whilst, at the same time, offering
systems are thus geographically separate and can be repli- young people long-term career perspectives.
cated locally. Possible increases in both chronic and acute diseases
We limit access to our systems and data such that em- pose another risk to sustaining our business operations. We
ployees can only access the data they need to perform their address this risk with a systematic health management pro-
duties. All systems and data are backed up on a regular b asis, gramme, page 69, and cross-divisional co-operation.
and critical data are replicated across data centres.
EXPECTED DEVELOPMENTS Global economy: growth forecast

01/7 0
%
Overall Board of Management assess- 2016 2017
World trade volumes 1.9 3.8
ment of the future economic position
Real gross domestic product
World 3.1 3.4
The Board of Management expects consolidated EBIT to
Industrial countries 1.6 1.9
reach around 3.75billion in financial year 2017. The Post- Emerging markets 4.1 4.5
eCommerce- Parcel division is likely to contribute around Central and Eastern Europe 2.9 3.1
1.5billion to this figure. Compared with the previous year, CIS countries 0.1 1.5
we expect an additional improvement in overall earnings Emerging markets in Asia 6.3 6.4
toaround 2.6billion in the DHL divisions. All of the DHL Middle East and North Africa 3.8 3.1
Latin America and the Caribbean 0.7 1.2
divisions are expected to contribute to the increase. The
Sub-Saharan Africa 1.6 2.8
Corporate Center/Other result is projected to be at the prior-
year level of around 0.35billion. In line with the pro- Source: International Monetary Fund (IMF), World Economic Outlook, January2017 update.
Growthrates calculated on the basis of purchasing power parity.
jected growth in EBIT, we expect that EAC will also increase
in 2017. Free cash flow is expected to exceed 1.4billion.
The Chinese economy is likely to remain muted, with GDP
growth expected to soften notably (IMF: 6.5%; OECD: 6.4%).
Forecast period The Japanese economy is forecast to continue expanding at
a cautious pace, experiencing moderate growth similar to
The information contained in the report on expected devel- that of 2016 (IMF: 0.8%; OECD: 1.0%; IHS [2016]: 1.1%).
opments generally refers to financial year 2017. Overall, GDP in the United States is anticipated to
increase more noticeably in 2017 than in the previous year
(IMF: 2.3%; OECD: 2.3%; IHS [2016]: 2.3%).
Future economic parameters In the euro zone, the economic recovery shows every
sign of continuing. However, GDP growth is projected to
Outlook for the global economy improves weaken somewhat (IMF: 1.6%; ECB: 1.7%; IHS [2016]: 1.5%).
The global economy is expected to pick up moderately in Early indicators suggest that the upswing in Germany
2017. Supported by low interest rates, the economic upturn will continue. Growth for 2017 as a whole is, however,
in the industrial countries is likely to increase slightly. In expected to drop below that of the prior year (IMF: 1.5%;
addition, a number of major countries are set to implement Sachverstndigenrat 1.3%; IHS [2016]: 1.9%).
more expansionary financial policies. However, uncertainty Rather than fall, crude oil listings are more likely to rise
could arise from political circumstances such as possible slightly from the current moderate level.
changes in US economic policy, the UKs anticipated peti- The likelihood is very high that the ECB will maintain
tion to leave the EU and the upcoming elections in many its key interest rate at the current level in 2017, or even lower
euro zone countries. Higher growth rates are expected in the rate further if the euro zone economy should weaken
the emerging markets, due in the main to the severe reces- substantially. By contrast, the US Federal Reserve is expected
sions experienced by some of the major threshold econo- to raise its key interest rate over the course of the year, which
mies coming to an end, whilst growth trends in many re- could moderately increase capital market interest rates.
gions are set to continue largely unaltered. Countries that
rely on commodities exports are seeing particular signs of World trade grows moderately
improvement. However, there are a number of political and After favourable indications in the second half of 2016, in
structural risks whose occurrence could impact economic 2017 we expect to see an improvement in the global trade
growth in the emerging markets. flows relevant to us (air and ocean freight shipped in con-
tainers, excluding liquids and bulky goods). All in all, we
anticipate growth of 2.5%.
Group Management Report Expected Developments Overall Board of Management assessment of the future economic position
Forecast period Future economic parameters Revenue and earnings forecast 83
Parcel market expected to see sustained growth In the European road transport market, the trend is
The market for paper-based mail communication continues likely to witness a marginal rise again in 2017, as long as the
to decline in Germany, although more moderately than in oil price level stabilises and economic activity in Europe
other European countries. Physical mail volumes are de- gains momentum.
creasing, primarily because people are communicating digi
tally to an increasing extent. Following the stamp price Contract logistics market continues to grow
increase for a standard letter at the beginning of 2016, we The trend towards outsourcing warehousing and distribu-
will not make any further price adjustments to regulated tion as well as the demand for value-added logistics services
mail products until the end of 2018 due to the price-cap continue, although short to mid-term growth prospects in
mechanism. some emerging markets have slowed down. Projections in-
The German advertising market is likely to maintain its dicate that the market for contract logistics will continue to
approximate volumes in 2017. Advertising budgets will con- experience stable growth of around 5%. Demand for supply
tinue to shift towards online media. The trend towards chain services is expected to see a particularly strong rise
automated dialogue marketing campaigns is set to remain inrapidly growing economies such as south-east Asia and
unchanged. India.
The parcel market will continue to grow in Germany, the
rest of Europe and the world, as will cross-border services.
The international mail business is likely to see slight Revenue and earnings forecast
growth overall, particularly due to increasing merchandise
shipping. We expect the global economy to continue to experience
regional variations in 2017 and to grow only moderately on
E-commerce encourages growth in international express the whole. The global trading volumes relevant to our busi-
market ness are likely to perform similarly. Our business trend is
Experience shows that growth in the international express impacted to an ever-increasing extent by structural changes
market is highly dependent upon the economy. We believe as evidenced in the growing significance of e-commerce-
cross-border e-commerce, which is demonstrating consid- based business models. E-commerce is even gaining rele-
erable growth, will also drive growth in the international vance in the emerging economies, which we anticipate to
express market in 2017. be reflected in our revenue trend.
Against this backdrop, we expect consolidated EBIT to
Market trends in freight forwarding business likely reach around 3.75billion in financial year 2017. The Post-
tocontinue eCommerce- Parcel division is likely to contribute around
In 2017, we anticipate developments in the air freight market 1.5billion to this figure. Compared with the previous year,
to follow a similar trend to that of the reporting year. Freight we expect an additional improvement in overall earnings to
carriers will further expand capacities with new wide-body around 2.6billion in the DHL divisions. All of the DHL div
passenger planes and additional cargo aircraft, especially to isions are expected to contribute to the increase. The Cor-
smaller destinations. The highest rise in demand will be porate Center/Other result is projected to be at the prior-
seen in emerging markets. A growing middle class, espe- year level of around 0.35billion.
cially in Asia, will be a strong driver of e-commerce and In line with our Group strategy, we plan to focus upon
non-durable consumer goods. Due to higher fuel prices, organic growth and anticipate only a few very selective
increased freight rates are expected. acquisitions in 2017, as in the previous year.
In ocean freight, we expect the market to further stabil Our finance strategy continues to call for a payout of
ise with marginal growth. New alliances and mergers will 40% to 60% of net profits as dividends as a general rule. At
allow shipping companies to better manage capacities. the Annual General Meeting on 28April2017, we intend to
propose to the shareholders that a dividend per share of
1.05 be paid for financial year 2016 (previous year: 0.85).
Expected financial position Performance of further indicators

relevant for internal management
No change in the Groups credit rating
In light of the earnings forecast for 2017, we expect the FFO EAC and free cash flow increase
to debt indicator to remain stable on the whole and do not In line with the projected growth in EBIT, we expect that
expect the rating agencies to change our credit rating from EAC will also grow in 2017. Divisional EAC will be affected
the present level. by the same influences as detailed in the EBIT outlook.
However, as our investing activities continue and the net
Liquidity to remain solid asset base increases as a result, the rise in EBIT after asset
We anticipate a reduction in our liquidity in the first half of charge may fall slightly short of the EBIT growth. Free cash
2017 as a result of the annual pension prepayment due to flow is expected to exceed 1.4billion.
the Bundesanstalt fr Post und Telekommunikation as well
as the dividend payment for financial year 2016 in May2017. Employee Opinion Survey results again positive
However, our operating liquidity situation will improve We intend to keep up the positive results that our Employee
again significantly towards the end of the year due to the Opinion Survey achieved in the reporting year. For 2017, we
upturn in business that is normal in the second half. expect to see an increase to 75% in the approval rating for
In light of the fact that the bond issued by Deutsche the key performance indicator Active Leadership.
Post Finance B.V. in the amount of 0.75billion will fall due
in June2017, we shall review the refinancing options avail- Further improve greenhouse gas efficiency
able under the Debt Issuance Programme and, if necessary, We expect the Group to further improve its carbon effi-
borrow funds on the capital market. ciency. Our CEX score should increase by one index point
during financial year 2017.
Capital expenditure of around 2.3billion expected
In 2017, we plan to increase capital expenditure to around
This Annual Report contains forward-looking statements that relate to the business, fi-
2.3billion in support of our strategic objectives and further nancial performance and results of operations of Deutsche Post AG. Forward-looking
growth. The focus of capital expenditure will be similar to statements are not historical facts and may be identified by words such as believes,
expects, predicts, intends, projects, plans, estimates, aims, foresees, an-
that of previous years. ticipates, targets and similar expressions. As these statements are based upon current
plans, estimates and projections, they are subject to risks and uncertainties that could
cause actual results to be materially different from the future development, performance
or results expressly or implicitly assumed in the forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which apply
only as at the date of this presentation. Deutsche Post AG does not intend or assume any
obligation to update these forward-looking statements to reflect events or circumstances
after the date of this Annual Report.
Any internet sites referred to in the Group Management Report do not form part of
the report.
/02 CORPORATEGOVERNANCE
86 REPORT OF THE SUPERVISORY BOARD

SUPERVISORY BOARD
CorporateGovernance
89
89 Members of the Supervisory Board
89 Committees of the Supervisory Board
90 BOARD OF MANAGEMENT
92 MANDATES
92 Mandates held by the Board of Management
92 Mandates held by the Supervisory Board
/02
93 CORPORATE GOVERNANCE REPORT
/03
REPORT OF THE SUPERVISORY BOARD
WULF VON SCHIMMELMANN

Chairman
DEAR SHAREHOLDERS, 18May2016, was unable to take part in an extraordinary

Supervisory Board meeting that was convened at short
Deutsche Post DHL Group was very successful in financial notice, and hence did not attend one of two meetings. The
year 2016 and made considerable progress in implement- overall attendance rate was again around 94%; individual
ing Strategy 2020: Focus. Connect. Grow. The Supervisory attendance figures can be found on page 95.
Board advised the Board of Management in its management
of the company and monitored its activities. Plenary meetings
We were involved in all decisions of material import The Supervisory Board held five meetings in financial year
ance. The Board of Management informed us in good time 2016; four regular and one extraordinary meeting. The
of the facts required for us to discharge our duties properly members of the Board of Management took part in these
and also continuously updated the Chairman of the Super- unless the Chairman of the Supervisory Board decided
visory Board and the Chairman of the Finance and Audit otherwise.
Committee between meetings of these bodies. In the meeting on 8March2016, we reviewed in depth
The Board of Management reported regularly, com- and then approved the annual and consolidated financial
prehensively and promptly both on its business policy and statements and the management reports for financial year
other fundamental corporate management issues and on 2015 on the recommendation of the Finance and Audit
business performance, the profitability of the company and Committee and in the presence of the auditors of the finan-
the Group, and transactions and events of particular sig- cial statements, and concurred with the Board of Manage-
nificance to the enterprise. We discussed transactions and ments proposal for the appropriation of the net retained
measures requiring the consent of the Supervisory Board in profit for financial year 2015. Furthermore, the Supervisory
detail with the Board of Management. Board determined the remuneration to be paid to the mem-
All current Supervisory Board members attended more bers of the Board of Management for financial year 2015,
than half of the meetings of the plenary and of the commit- based on the target achievement figures that had been estab-
tees to which they belong. Thomas Kunz, who left the Super lished, and also adopted the report of the Supervisory Board,
visory Board at the end of the Annual General Meeting on the Corporate Governance Report and the remuneration
Corporate Governance Report of the Supervisory Board
87
report. Additionally, we addressed the proposed resolutions The Executive Committee met on five occasions. It
for the 2016 Annual General Meeting and the results of the focused primarily on Board of Management issues and on
efficiency review of our activities. preparing the Supervisory Board meetings.
At the extraordinary meeting on 17May2016, we ap- The Personnel Committee held four meetings. Items
pointed Tim Scharwath as the member of the Board of Man- discussed included the strategic human resources prior-
agement responsible for Global Forwarding, Freight who will ities, personnel development, increasing the number of
have assumed office by June of this year. We also discussed women in executive positions, the further development of
the takeover of UK Mail Group plc, in the United Kingdom. the Group-wide Certified initiative, which promotes em-
In the meeting on 24June2016, we extended John ployee commitment and changes in corporate culture, and
Gilberts appointment as a member of the Board of Manage the annual Employee Opinion Survey.
ment for a further five years and, following Lawrence The Finance and Audit Committee met seven times. Its
Rosens resignation, appointed Melanie Kreis as the Board shareholder representatives have the accounting and audit-
of Management member responsible for Finance, Global ing expertise required by the Aktiengesetz (AktG G erman
Business Services in addition to her role as Board Member Stock Corporation Act). The committee examined the an-
for Human Resources and Labour Director. We also exam- nual financial statements and the management reports for
ined the changes to the legal requirements resulting from Deutsche Post AG and the Group in the presence of the
the EUs Audit Regulation and the Abschlussprfungsreform auditors, the CEO and the CFO. It discussed the quarterly
gesetz (AReG German Audit Reform Act) and resolved reports and the interim report for the first half of the year,
an amendment to the rules of procedure in line with this. which were reviewed by the auditors, before their publica-
In our meeting on 26September2016, we approved tion with the Board of Management and the auditors. The
the takeover of UK Mail Group plc. The subsequent closed Audit Committee recommended to the Supervisory Board
meeting looked at the Groups profile from a customer per- that it propose PricewaterhouseCoopers Aktiengesellschaft
spective, supplemented by presentations by guest speakers. Wirtschaftsprfungsgesellschaft (PwC), Dsseldorf, to the
We intensively discussed the progress made in implement- Annual General Meeting for election as the auditors of the
ing our Strategy 2020 as well as future challenges together financial statements of Deutsche Post AG and the Group,
with the Board of Management. and as the auditors providing reviews of any interim re-
In the last Supervisory Board meeting for 2016, which ports; in addition, it issued the audit engagement for the
was held on 9December, we extended Frank Appels term of auditors for financial year 2016 and specified the key audit
office as CEO and contract of service for five years and also priorities. The committee also addressed the enterprises
entrusted him with acting responsibility for a large number accounting process and risk management system and dis-
of Global Business Services functions. We also discussed cussed the findings of internal audits. It obtained detailed
strategic issues, approved the Groups 2017 business plan reports from the Chief Compliance Officer on compliance
and formally adopted the 2017 targets agreed with the Board and on updates to the compliance organisation and com-
of Management. We confirmed that we have complied with pliance management.
the recommendations of the Government Commission on The Strategy Committee met five times in 2016 and,
the German Corporate Governance Code as amended on above all, discussed the strategic positioning of the div
5May2015 in the period since the Declaration of Conform- isions in their respective market segments and the imple-
ity was issued in December2015, and that we also intend to mentation of our Strategy 2020. The primary focus was on
comply with all recommendations of the code as amended developments at the Global Forwarding and eCommerce-
on 5May2015 in the future. Parcel business units, as well as on strategies and measures
for digitally transforming the enterprise.
Committee work The Nomination Committee met once, addressing suc-
The Supervisory Boards six committees prepare decisions cession planning for the Supervisory Board and the election
by the full Supervisory Board and resolve issues that they proposals for the 2016 Annual General Meeting.
have been delegated to decide. The chairs of the commit- The Mediation Committee did not meet during the
tees report to the next plenary meeting on the work of the course of the past financial year.
committees.
Changes to the Supervisory Board and Board of Management Dsseldorf, audited the annual and consolidated financial
The Annual General Meeting on 18May2016 elected Ingrid statements for financial year 2016, including the respective
Deltenre and Nikolaus von Bomhard as new Supervisory management reports, and issued unqualified audit opinions.
Board members, and Katja Windt and Werner Gatzer were PwC also reviewed the quarterly financial reports and the
re-elected. Thomas Kunz and Elmar Toime left the Super interim report for the first half of the year.
visory Board at the end of the Annual General Meeting. Following a detailed preliminary assessment by the
There were no changes to the employee representatives dur- Finance and Audit Committee, the Supervisory Board ex-
ing the period under review. The Supervisory Board would amined the annual and consolidated financial statements
like to thank its former members for their hard work and and the management reports for financial year 2016, in-
support, and for their constructive contribution. cluding the proposal by the Board of Management on the
Lawrence Rosen resigned as CFO effective 30Septem- appropriation of the net retained profit, at its meeting on
ber2016. The Supervisory Board appointed Melanie Kreis, 7March2017. All Supervisory Board members received
Deutsche Post AGs Board Member for Human Resources copies of the annual and consolidated financial statements,
and Labour Director since 2014, as his successor in this the auditors reports and the Board of Managements pro-
position. She will continue to be responsible for Human posal for the appropriation of the net retained profit in good
Resources and act as Labour Director until further notice. time before the meeting. The documents were discussed in
detail with the Board of Management and the auditors, who
Managing conflicts of interest were present. The auditors reported on the audit findings
None of the Supervisory Board members hold positions on and were also available to answer questions and provide
the governing bodies of, or provide consultancy services additional information. The Supervisory Board concurred
to, the Groups main competitors. The Supervisory Board with the results of the audit and approved the annual and
has not been informed of any conflicts of interest affecting consolidated financial statements for financial year 2016, as
individual members during the year under review. recommended by the Finance and Audit Committee. No ob-
jections were raised on the basis of the final outcome of the
Compliance with all recommendations of the German examination by the Supervisory Board and the F inance and
Corporate Governance Code Audit Committee of the annual and consolidated financial
In December2016, the Board of Management and the statements, the management reports and the proposal for
Supervisory Board issued an unqualified Declaration of the appropriation of the net retained profit. The Supervisory
Conformity pursuant to section 161 of the AktG, which was Board endorsed the Board of Managements proposal for
also published on the companys website. The declarations the appropriation of the net retained profit and the payment
from previous years are also available there. In financial of a dividend of 1.05 per share.
year 2016, Deutsche Post AG complied with all recommen- We would like to thank the members of the Board of
dations of the Government Commission for the German Management and the employees of Deutsche Post AG as well
Corporate Governance Code as amended on 5May2015. as all Group companies for their dedication and constructive
We also intend to continue to comply with all recommen- work in the past financial year. They made a major contribu-
dations of the Code as amended on 5May2015, together tion to our ability to look back on a successful financialyear.
with all the suggestions except that of broadcasting the full
AGM on the internet. Further information regarding corpor Bonn, 7March2017
ate governance within the enterprise can be found in the The Supervisory Board
Corporate Governance Report (page 93ff.). Information
on the remuneration of the Board of Management and the
Supervisory Board is available in the Group Management
Report on page 38ff.
Wulf von Schimmelmann

2016 annual and consolidated financial statements examined Chairman
The auditors elected by the AGM, PricewaterhouseCoopers
Aktiengesellschaft Wirtschaftsprfungsgesellschaft (PwC),
Corporate Governance REPORT OF THE SUPERVISORY BOARD Supervisory Board Members of the Supervisory Board
Committees of the Supervisory Board 89
SUPERVISORY BOARD
Members of the Supervisory Board Committees of the Supervisory Board
02/0 1 02/0 2
Shareholder representatives Employee representatives Executive Committee

Prof.DrWulf von Schimmelmann (Chair) Andrea Kocsis (Deputy Chair) Prof.DrWulf von Schimmelmann (Chair)
Former CEO of Deutsche Postbank AG Deputy Chair of ver.di National Executive Andrea Kocsis (Deputy Chair)
Board and Head of Postal Services,
DrNikolaus von Bomhard Forwarding Companies and Logistics on Rolf Bauermeister
(since18May2016) the ver.di National Executive Board Werner Gatzer
Chair of the Board of Management,
Mnchener Rckversicherungs- Rolf Bauermeister Roland Oetker
Gesellschaft AG (Munich Re) Head of Postal Services, Co-determination Stefanie Weckesser
and Youth and Head of National Postal
Ingrid Deltenre (since 18May2016) Services Group at ver.di National Personnel Committee
Director General of the European Administration
Broadcasting Union Andrea Kocsis (Chair)
Jrg von Dosky
Werner Gatzer Prof.DrWulf von Schimmelmann
Chair of the Group and Company
State Secretary, Federal Ministry (DeputyChair)
Executive Representation Committee,
ofFinance Deutsche Post AG Thomas Koczelnik
Prof.DrHenning Kagermann Roland Oetker
Thomas Koczelnik
Former CEO of SAP AG Chair of the Group Works Council,
Deutsche Post AG Finance and Audit Committee
Thomas Kunz (until 18May2016)
Independent entrepreneur, former member Anke Kufalt DrStefan Schulte (Chair)
of the Executive Board, Danone S.A., Chair of the Works Council, DHL Global Stephan Teuscher (Deputy Chair)
France Forwarding GmbH, Hamburg Werner Gatzer
Simone Menne Andreas Schdler Thomas Koczelnik
Member of the Executive Board, Deutsche Business Division Sales Post, Deutsche
Lufthansa AG (until 31August2016) Simone Menne
Post AG (since 1January2016)
Member of the Board of Managing Helga Thiel
Directors, Boehringer Ingelheim GmbH Sabine Schielmann
(since 1September2016) Member of the Executive Board of the Strategy Committee
Central Works Council, Deutsche Post AG
Roland Oetker Prof.DrWulf von Schimmelmann (Chair)
Managing Partner, ROI Verwaltungs- Stephan Teuscher
Head of Wage, Civil Servant and Social Andrea Kocsis (Deputy Chair)
gesellschaft mbH
Policies in the Postal Services, Forwarding Rolf Bauermeister
DrUlrich Schrder Companies and Logistics Department, Prof.DrHenning Kagermann
CEO of KfW Bankengruppe ver.di National Administration
Thomas Koczelnik
DrStefan Schulte Helga Thiel DrUlrich Schrder
Chair of the Executive Board of Fraport AG Deputy Chair of the Central Works Council,
Deutsche Post AG
Elmar Toime (until 18May2016) Nomination Committee
Managing Director, E Toime Consulting Ltd. Stefanie Weckesser
Prof.DrWulf von Schimmelmann (Chair)
Deputy Chair of the Works Council,
Prof.Dr-Ing.Katja Windt Werner Gatzer
Deutsche Post AG, Mail Branch, Augsburg
Bernd Rogge Professorship of Global
Production Logistics Roland Oetker
President/member of the Executive Board

Mediation Committee (pursuant
of Jacobs University Bremen gGmbH
tosection 27 (3) of the German
Co-determination Act)
Andrea Kocsis (Deputy Chair)
Rolf Bauermeister
Roland Oetker
BOARD OF MANAGEMENT
DRFRANK APPEL
Chief Executive Officer
Global Business Services
(since1January2017)
(Dr Frank Appel is also responsible
forGlobal Forwarding, Freight
untilfurther notice.)
Born in 1961
Member since November2002
CEO since February2008
Appointed until October2022
MELANIE KREIS
Finance
Human Resources
(Melanie Kreis has been responsible
for Finance since October 2016 and
will continue to be responsible
for Human Resources until further
notice.)
Born in 1971
Member since October2014
Appointed until June2022
Left the company during the reporting year:

Lawrence Rosen
Born in 1957
Member from September2009 until 30September2016
Corporate Governance Board of Management
91
KEN ALLEN
Express
Born in 1955
Member since February2009
Appointed until July2020
JOHN GILBERT
Supply Chain
Born in 1963
Member since March 2014
Appointed until March 2022
JRGEN GERDES
Post - eCommerce - Parcel
Born in 1964
Member since July2007
Appointed until June2020
MANDATES
Mandates held by the Board of Management
02/0 3
Membership of supervisory boards Membership

required by law of comparable bodies
Lawrence Rosen (until 30September2016) Ken Allen Lawrence Rosen (until 30September2016)
Lanxess AG DHL-Sinotrans International Air Courier Ltd, China Qiagen N.V. (Supervisory Board)
Lanxess Deutschland GmbH (Board of Directors)1
1
Group mandate.
Mandates held by the Supervisory Board

02/0 4
Shareholder representatives
Membership of supervisory boards Lufthansa Cargo AG, Germany2 Roland Oetker

required by law (until31December 2016) Rheinisch-Bergische Verlagsgesellschaft mbH
Lufthansa Technik AG, Germany2 (Supervisory Board)
Allianz Deutschland AG (until31December 2016) DrUlrich Schrder
Maxingvest AG BMW AG DEG Deutsche Investitions- und Entwicklungs-
gesellschaft mbH (Supervisory Board)
DrNikolaus von Bomhard (since 18May2016) DrUlrich Schrder
Deutsche Telekom AG Marguerite 2020: European Fund for Energy,
ERGO Group AG1 (Chair) Climate Change and Infrastructure, Luxembourg
Munich Health Holding AG (Chair)
1
Prof.Dr-Ing.Katja Windt (Supervisory Board)
Fraport AG
Werner Gatzer DrStefan Schulte
Bundesdruckerei GmbH (until 28April2016) Fraport Regional Airports of Greece A S.A.
Membership
Flughafen Berlin Brandenburg GmbH (Boardof Directors, Chair)3 (since 15March2016)
of comparable bodies
PP Deutschland AG (Chair) (renamed PD-Berater Fraport Regional Airports of Greece B S.A.
der ffentlichen Hand GmbH on 7December2016) Prof.DrWulf von Schimmelmann (Chair) (Boardof Directors, Chair)3 (since 15March2016)
Accenture Corp., Ireland (Board of Directors)
Fraport Regional Airports of Greece Management
Prof.DrHenning Kagermann Thomson Reuters Corp., Canada (Board Company S.A. (Board of Directors, Chair)3
BMW AG ofDirectors) (since15March2016)
Deutsche Bank AG
Ingrid Deltenre (since 18May2016) Elmar Toime (until 18May2016)
Mnchener Rckversicherungs-Gesellschaft AG Givaudan SA, Switzerland (Board of Directors) Postea Inc., USA (Non-Executive Chairman)
(Munich Re)
Banque Cantonale Vaudoise SA, Switzerland Blackbay Ltd., United Kingdom (Non-Executive
Simone Menne (Board of Directors) Director)
Delvag Luftfahrtversicherungs-AG, Germany
Simone Menne Qatar Postal Services Company, Qatar
(Chair)2 (until 31August2016)
Frankfurt Stock Exchange (Exchange Council) (Non-Executive Director)
LSG Lufthansa Service Holding AG, Germany (until 31August2016) Solution Dynamics Limited, New Zealand
(Chair)2 (until 31December2016)
Miles&More GmbH (Advisory Council, Chair)2 (Non-Executive Director) (since 15February2016)
(until31August2016)
Employee representatives
Membership of supervisory boards Jrg von Dosky Stephan Teuscher

required by law PSD Bank Mnchen eG DHL Hub Leipzig GmbH (Deputy Chair)
Rolf Bauermeister Andreas Schdler Helga Thiel
Deutsche Postbank AG (until 31March2016) PSD Bank Kln eG (Chair) PSD Bank Kln eG (Deputy Chair)
1
Group mandates, Mnchener Rckversicherungs-Gesellschaft AG (Munich Re). 2
Group mandates, Deutsche Lufthansa AG. 3
Group mandates, Fraport AG.
Corporate Governance MANDATES Mandates held by the Board of Management Mandates held by the Supervisory Board
Corporate Governance Report 93
CORPORATE GOVERNANCE Specific corporate governance practices

Our business relationships and activities are based on re-
REPORT sponsible business practice that complies with applicable
laws, ethical standards, and international guidelines, and
and Annual Corporate Governance Statement pursuant this also forms part of our Group strategy. Equally, we re-
tosections 289a and 315(5) of the Handelsgesetzbuch quire our suppliers to act in this way. We encourage and
(HGBGerman Commercial Code) for Deutsche Post AG facilitate long-term relationships with our stakeholders,
andthe Deutsche Post DHL Group and also part of the whose decisions to select Deutsche Post DHL Group as a
GroupManagement Report supplier, employer or investment of choice are increasingly
based on the requirement that we comply with good corpor
This Annual Corporate Governance Statement contains ate governance criteria.
information about the main components of the corpor Our responsible business practice contributes to society
ate governance structures at Deutsche Post AG and and allows our employees to share greatly in this by becom-
Deutsche Post DHL Group. These include the Declar ing involved. Response levels for our annual Group-wide
ation of Conformity by the Board of Management and the Employee Opinion Survey, page67 were up one percentage point
Supervisory Board of Deutsche Post AG, relevant corpor year-on-year in 2016, at 74%. Since the same questionnaire
ate governance practices that exceed legal requirements, was used throughout the Group, the results for all categories
the working methods of the Board of Management and the and questions are comparable across the divisions. The re-
Supervisory Board, the composition and working methods sults reveal a positive trend for all issues and in most cases
of the committees, the percentage of women on the Super- are on a level with or better than external benchmarks.
visory Board, Board of Management and in the top two
executive tiers, and the targets for the composition of the Code of Conduct, diversity and compliance management
Supervisory Board. Our Code of Conduct, dpdhl.com/en, which was first issued in
2006, is firmly established in our company and is appli-
Company in compliance with all recommendations cable to all regions and divisions. The Code of Conduct
oftheGerman Corporate Governance Code is based on the principles set out in the Universal Declar
In December2016, the Board of Management and the ation of H
uman Rights and the United Nations (UN) Global
Supervisory Board once again issued an unqualified Declar Compact. It is consistent with recognised legal standards,
ation of Conformity pursuant to section 161 of the Aktien including the applicable anti-corruption legislation and
gesetz (AktG German Stock Corporation Act), which agreements. The Code of Conduct and all other Group
reads as follows: guidelines, together with regional guidelines and proc
The Board of Management and the Supervisory Board edures, provide the framework for ethical and environ-
of Deutsche Post AG declare that the recommendations of mentally sound corporate conduct. The guidelines serve
the Government Commission German Corporate Gov- as a clear point of reference for all employees, informing
ernance Code in the version dated 5May2015 have been them of our values and principles. The Code is available in
complied with since issuance of the Declaration of Con- 21languages and employees can familiarise themselves with
formity in December2015 and that all recommendations its contents via webinars.
of the Code in the version dated 5May2015 shall also be The Code of Conduct also sets out our commitment to
complied with in the future. the health of our employees, respect for human rights, our
We also intend to implement the suggestions made in rejection of child and forced labour, and our position on
the Code, with one exception: the Annual General Meeting diversity and inclusion. The Corporate Diversity&Inclu-
will only be broadcast on the internet up to the end of the sion Statement issued in 2013 reflects our belief that diver-
CEOs address. sity represents both a key factor for success and a distinct
c ompetitive advantage. In the statement, we also undertake measures include developing insurance programmes for
to promote an inclusive working environment and express employees in regions in which there are no or only inad
our opposition to all forms of discrimination. equate healthcare systems.
Our Diversity Council is an internal forum comprising The Chief Compliance Officer, who reports directly
executives from the central functions and divisions, and is to the Chief Financial Officer, is responsible for devel-
chaired by the Board Member for Human Resources. The oping Group-wide standards and recommendations for
Diversity Council met three times during the year under Deutsche Post DHL Groups compliance management sys-
review. Discussions focused on the issues of international tem. He is supported in this task by the Global Compliance
orientation, the divisions differing diversity management Office. Each of the four operating divisions has a compli-
requirements and women in management. The members ance officer and a network of compliance managers, who are
are also advocates for diversity within their divisions. responsible for implementing and executing all compliance
The Supervisory Board supports the Groups diversity management activities. The divisional compliance officers
strategy, placing particular emphasis on the target of in- report regularly to the Board of Management member for
creasing the number of women on the Board of Manage- their division and maintain close contact with the Global
ment. The Supervisory Board considers anchoring diversity Compliance Office. The actions taken and reports prepared
management in the companys HR processes to be part of by the divisional compliance officers and the Global Com-
long-term succession planning, for which the Supervisory pliance Office are included in the quarterly reports to the
Board and Board of Management are jointly responsible. In full Board of Management and the annual report to the
the opinion of the Supervisory Board, the targeted increase Supervisory Boards Finance and Audit Committee.
in the number of women in executive positions is necessary The main compliance management activities at
to ensure that, overall, more suitable female candidates are Deutsche Post DHL Group include systematically iden
available for vacant positions on the Board of Management. tifying potential compliance risks, devising suitable train-
At 21.1%, the number of women in upper and middle man- ing and communications measures, evaluating business
agement around the world at Deutsche Post DHL Group has partner compliance, investigating cases of misconduct and
increased year-on-year as at 31December2016 (previous imposing sanctions. The main purpose of the compliance
year: 20.7%). The figure for Group companies in Germany programme is to prevent cases of non-compliance in the
was 20.7%. Pursuant to the Gesetz fr die gleichberechtigte first place. Group-wide communications ensure that all em-
Teilhabe von Frauen und Mnnern an Fhrungspositionen in ployees are aware of the relevance of compliance and are in-
der Privatwirtschaft und im ffentlichen Dienst (German Act formed of the designated rules of conduct. Our compliance
regarding Equal Gender Representation in Executive Pos hotline is a key factor in reporting breaches of the law or
itions in the Public and Private Sectors), we also report on guidelines. The hotline is available in around 150 countries
the targets set by the Board of Management and the Super and assists employees in reporting potential breaches of
visory Board for Deutsche Post AG in the section on the the law or the Code of Conduct within the company. Com-
Number of women on the Supervisory Board, Board of Management and pliance issues are addressed and resolved in a structured
in executive positions at Deutsche Post AG, page97. The presentation manner. The insights gained from reported cases are used to
adopted differs from the one used to determine the propor- continuously improve the compliance management system.
tion of women in executive positions at Deutsche Post DHL
Group. How the Board of Management and the Supervisory Board
The international composition of the Board of Manage- operate
ment already reflects the companys international activities. As a listed German public limited company, Deutsche Post AG
Our business success depends to a large extent on our has a dual management system. The Board of Management
employees ability to do the best possible job. This is why we manages the company. The Supervisory Board appoints,
seek to enhance their physical, mental and social well-being, oversees and advises the Board of Management.
primarily through preventative action. Our Group-wide
Corporate Governance Corporate Governance Report
95
The Board of Management comprises the Chief Ex Attendance at plenary and committee meetings
02/0 5
ecutive Officer (CEO), the Finance and Human Resources %
functions and four operating divisions: Post - eCommerce- Supervisory Board member Attendance
Prof.DrWulf von Schimmelmann (Chair) 100
Parcel; Express; Global Forwarding, Freight; and Supply
Andrea Kocsis (Deputy Chair) 100
Chain. Group management functions are centralised in
Rolf Bauermeister 100
the Corporate Center. The Group Strategy, page30, provides a DrNikolaus von Bomhard (since 18May2016) 100
framework for the whole Group. The Boards rules of pro- Ingrid Deltenre (since 18May2016) 67
cedure lay down objectives for the basic internal structure Jrg von Dosky 100
and management of, and co-operation within, the Board Werner Gatzer 89
of Management. Within this framework, Board members Prof.DrHenning Kagermann 70

Thomas Koczelnik 100
manage their departments independently and inform
Anke Kufalt 100
the rest of the Board about key developments at regular
Thomas Kunz (until 18May2016) 50
intervals. The Board of Management as a whole decides on Simone Menne 92
matters of particular significance for the company or the Roland Oetker 100
Group, including all decisions that have to be presented to Andreas Schdler 100
the Supervisory Board for approval, and all tasks that can- Sabine Schielmann 80
not be delegated. The Board of Management as a whole also DrUlrich Schrder 60

DrStefan Schulte 100
decides on matters presented to it by individual members of
Stephan Teuscher 100
the Board of Management for decision. When making de- Helga Thiel 92
cisions, members of the Board of Management may not act Elmar Toime (until 18May2016) 100
in their own personal interest or exploit corporate business Stefanie Weckesser 100
opportunities for their own benefit. The Supervisory Board Prof.Dr-Ing.Katja Windt 100
must be informed of any conflicts of interest without delay.
The Supervisory Board appoints, advises and oversees
the Board of Management. It has established rules of pro The Board of Management and the Supervisory Board
cedure that include the basic internal structure, a catalogue regularly discuss the Groups strategy, the divisions objec-
of Board of Management transactions requiring Super tives and strategy, the financial position and performance of
visory Board approval and rules for the Supervisory Board the company and the Group, key business transactions, the
committees. The Supervisory Board meets at least twice progress of acquisitions and investments, compliance and
every six months of the calendar year. Extraordinary Super compliance management, risk exposure and risk manage-
visory Board meetings are held whenever particular devel- ment, and all material planning and related implementation
opments or measures need to be discussed or approved at issues. The Board of Management informs the Supervisory
short notice. In financial year 2016, the Supervisory Board Board promptly and in full about all issues of significance.
held five plenary meetings, 22 committee meetings and one The Chairman of the Supervisory Board and the CEO main-
closed meeting, as described in the Report of the Supervisory tain close contact about current issues and discuss these
Board, page 86ff. All current members attended more than half regularly with other Board of Management members, in-
of the meetings of the Supervisory Board and the commit- cluding between Supervisory Board meetings.
tees on which they serve. Thomas Kunz, who left the Super The Supervisory Board carries out an annual efficiency
visory Board at the end of the Annual General Meeting on review of its work, which includes assessing co-operation
18May2016, was unable to take part in an extraordinary with the Board of Management. The review is based on a
Supervisory Board meeting that was convened at short no- questionnaire and personal discussions between the Chair-
tice, and hence did not attend one of two meetings. Once man of the Supervisory Board and the Supervisory Board
again, the overall attendance rate remained high in the year members. For financial year 2016, the Supervisory Board
under review, at around 94%. concluded that it had performed its monitoring and ad
visory duties efficiently and effectively.
All Supervisory Board decisions, particularly ones re- The members of the Board of Management and the mandates held
lating to transactions requiring Supervisory Board approval, by them are outlined on pages90f. and 92.
are discussed in detail in advance by the relevant commit- The Supervisory Board has formed six committees to
tees. Each plenary Supervisory Board meeting includes a ensure its duties are discharged effectively. In particular,
detailed report on the committees work and decisions taken. these committees prepare the resolutions to be taken in
None of the Supervisory Board members hold positions the plenary Supervisory Board meetings. The Supervisory
on the governing bodies of, or provide consultancy services Board has delegated the final decisions on certain topics
to, the Groups main competitors. The Supervisory Board such as approvals of property purchases or sales above a
has not been informed of any conflicts of interest affecting fixed threshold to committees.
individual members during the year under review. The Executive Committees duties include preparing
the appointment of members of the Board of Management,
Executive committees and Supervisory Board committees drawing up their contracts of service and determining the
Executive committees prepare the decisions to be made Board of Management remuneration for approval by the
by the entire Board of Management and take decisions on plenary meeting of the Supervisory Board.
matters delegated to them. The duties of the executive com- The Finance and Audit Committee oversees the ac-
mittees include preparing for and/or approving investments counting process, the effectiveness of the internal control
and transactions. The Deutsche Post Executive Committee system, the risk management and internal auditing systems,
is responsible for the Post - eCommerce - Parcel division; and the audit of the financial statements, and particularly
the cross-divisional DHL Executive Committee is in charge the selection of the auditors and their independence. It ap-
of the Express, Global Forwarding, Freight, and Supply proves the engagement of the auditors of the financial state-
Chain divisions; the CC&GBS Executive Committee covers ments to perform non-audit-related services. It examines
the Corporate Center (CC) and Global Business Services corporate compliance issues and discusses the half-yearly
(GBS). The CEO, the CFO and the Board Member for Human and quarterly financial reports with the Board of Manage-
Resources have permanent representation on the commitment before publication. Based on its own assessment, the
tees, whilst the Board members responsible for the divisions committee submits proposals for the approval of the annual
are represented on the committees in relation to matters af- and consolidated financial statements by the Supervisory
fecting their divisions. Executives from the first and second Board. The Chairman of the Finance and Audit Committee,
levels immediately below the Board of Management also Stefan Schulte, is a financial expert as defined in sections
attend executive committee meetings that cover topics rele- 100(5) and 107(4) of the AktG.
vant to their fields. For example, Accounting&Controlling, The Personnel Committee discusses human resources
Corporate Finance, Corporate Development and Legal principles for the Group.
Services are invited to take part in discussions on acquisi- The Mediation Committee carries out the duties as-
tions. The Deutsche Post Executive Committee meets once signed to it pursuant to the Mitbestimmungsgesetz (Mit-
a month, the DHL Executive Committee twice a month and bestG German Co-determination Act): it makes proposals
the CC&GBS Executive Committee usually every quarter. to the Supervisory Board on the appointment of members
Business review meetings also take place once a quar- of the Board of Management in those cases in which the re-
ter. These meetings are part of the strategic performance quired majority of two-thirds of the votes of the Supervisory
dialogue between the divisions, the CEO and the CFO. The Board members is not reached. The committee did not meet
business review meetings discuss strategic initiatives, oper- in the past financial year.
ational matters and the budgetary situation in the divisions. 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.
Corporate Governance Corporate Governance Report
97
The Strategy Committee prepares for the Supervisory number of women in management positions of 20% for
Boards strategy discussions and for resolutions on corpor tier1 executives and 30% for tier 2 executives in the period
ate acquisitions and disposals requiring approval by the from 1January2017 to 31December2019. The two exec-
plenary meeting of the Supervisory Board. It also regularly utive tiers are defined on the basis of their reporting lines:
discusses the competitive position of the enterprise as a tier1 comprises executives belonging to the N-1 reporting
whole and of the individual divisions. line, while tier 2 consists of executives from the N-2 report-
Further information about the work of the Supervisory ing line.
Board and its committees in financial year 2016 is contained
in the Report of the Supervisory Board, page86ff. Details of the Targets for the composition of the Supervisory Board
members of the Supervisory Board and the composition andqualifications required
of the Supervisory Board committees can be found in the The Supervisory Board has set itself the following targets for
sections on the members of the Supervisory Board, page89, Com- its own composition:
mittees of the Supervisory Board, page89 and Mandates, page92. 1 Proposals by the Supervisory Board to the Annual Gen-
eral Meeting for candidates to be elected as Supervisory

Number of women on the Supervisory Board, Board of Board members must be made purely in the interests
Management and in executive positions at Deutsche Post AG of the company. Subject to this requirement, the Super
Under the Gesetz fr die gleichberechtigte Teilhabe von visory Board aims to ensure that independent Super-
Frauen und Mnnern an Fhrungspositionen in der Privat visory Board members as defined in number 5.4.2 of
wirtschaft und im ffentlichen Dienst (German Act on the German Corporate Governance Code account for
Equal Gender Representation in Executive Positions in at least 75% of the Supervisory Board and that at least
the Public and Private Sectors), the Supervisory Board of 30% of the Supervisory Board members are women.
Deutsche Post AG is required to meet the statutory gender 2 The companys international activities are already ad
quota of 30%. It is also obliged to set a target quota for the equately reflected in the composition of the Supervisory
number of women on the Board of Management, whilst the Board. The Supervisory Board aims to maintain this
Board of Management is required to set a target quota for and its future proposals to the Annual General M eeting
women in the top two executive levels below the Board of will therefore consider candidates whose origins, edu-
Management. Deutsche Post AG exceeds the target for the cation or professional experience equip them with par-
statutory quota for the Supervisory Board, as eight women ticular international knowledge and experience.
(40%) are members of the Supervisory Board. The Super- 3 Conflicts of interest affecting Supervisory Board mem-
visory Board has set a target quota of 1:7 for the number of bers are an obstacle to providing independent and
women on the Board of Management until the end of the efficient advice to, and supervision of, the Board of
Annual General Meeting in 2018, and of 2:8 until the end of Management. The Supervisory Board will decide how
the AGM in 2021. The deadline for achieving the first target to deal with potential or actual conflicts of interest on
(1:7) is 30June2017. a case-by-case basis, in accordance with the law and
The Board of Management had set target quotas for giving due consideration to the German Corporate
increasing the proportion of women at the two levels im- Governance Code.
mediately below the Board of Management together with 4 In accordance with the age limit adopted by the Super-
a deadline, 31December2016. The target of 19% for tier1 visory Board and laid down in the rules of procedure
executives was almost met, at 18.4%, while the target for for the Supervisory Board, proposals for the election
tier2 executives of 23% was clearly exceeded, at 28.4%. The of Supervisory Board members must ensure that their
fact that the target for tier 1 executives was narrowly missed term of office ends no later than the close of the next
is due to organisational and structural measures impacting Annual General Meeting to be held after the Super
the executives involved, which resulted in the figure being visory Board member reaches the age of 72. As a gen-
undershot by a notional 0.6 percentage points. The Board eral rule, Supervisory Board members should not serve
of Management has set new target quotas for increasing the more than three full terms of office.
The current Supervisory Board meets these targets. The The members of the Supervisory Board and of its
professional careers of Ingrid Deltenre and Nikolaus von Finance and Audit Committee are also familiar in the ag-
Bomhard both of whom were elected to the Supervisory gregate with the sector in which the company operates. In
Board for the first time by the 2016 Annual General Meet- particular the Chairman of the Supervisory Board, Wulf
ing have given them extensive international experience von Schimmelmann, and the Chairman of the Finance and
of managing medium-sized and large organisations. With Audit Committee, Stefan Schulte, as well as a number of
the election of Ingrid Deltenre, the proportion of women shareholder representatives have specific knowledge of the
on the Supervisory Board increased to 40%. This means sector due to their current or past membership of the boards
that we currently exceed the 30% target quota for women of management and/or supervisory boards of companies in
on the Supervisory Board, which is in line with the statu- the sector, or relevant research activities. The employee rep
tory requirements. The number of independent members resentatives on the Supervisory Board also have extensive
of the Supervisory Board also currently exceeds the target. sector-specific experience.
All Supervisory Board members are independent members
as defined by the German Corporate Governance Code. In Remuneration of the Board of Management and
light of the European Commissions recommendation on theSupervisory Board
the independence of non-executive or supervisory direct The remuneration of the Board of Management and the
ors and the wide-ranging protection against summary dis- Supervisory Board can be found in the Group Management
missal and ban on discrimination contained in the Betriebs Report, page38ff.
verfassungsgesetz (German Works Constitution Act) and
Mitbestimmungsgesetz (German Co-Determination Act),
being an employee of the company is not inconsistent with
the requirement for independence as defined by the Code.
The largest shareholder in the company, KfW Banken-
gruppe, currently holds approximately 21% of the shares in
Deutsche Post AG. There are therefore no controlling share-
holders as defined in the Code with whom relationships
might exist that could call into question the Supervisory
Boards independence. In line with the international nature
of the companys business, a large number of Supervisory
Board members have extensive international experience.
All current appointment periods for the members of the
Supervisory Board elected by the Annual General Meeting
reflect the age limit that has been set and the limit on the
number of terms that can be served.
/03 CONSOLIDATEDFINANCIALSTATEMENTS
100 INCOME STATEMENT 129 BALANCE SHEET DISCLOSURES

129 21 Intangible assets
101 STATEMENT OF COMPREHENSIVE 131 22 Property, plant and equipment
132 23 Investment property
INCOME 132 24 Investments accounted for using the equity method
133 25 Financial assets
102 BALANCE SHEET 133 26 Other assets
134 27 Deferred taxes
134 28 Inventories
103 CASH FLOW STATEMENT 134 29 Trade receivables
ConsolidatedFinancialStatements
134 30 Income tax assets and liabilities
104 STATEMENT OF CHANGES IN EQUITY 135 31 Cash and cash equivalents
135 32 Assets held for sale and liabilities associated with assets
105 NOTES TO THE CONSOLIDATED heldforsale
135 33 Issued capital and purchase of treasury shares
FINANCIAL STATEMENTS OF 137 34 Capital reserves
DEUTSCHE POST AG 138 35 Other reserves
138 36 Retained earnings
105 BASIS OF PREPARATION 139 37 Equity attributable to Deutsche Post AG shareholders
105 1 Basis of accounting 139 38 Non-controlling interests
105 2 Consolidated group 141 39 Provisions for pensions and similar obligations
108 3 Significant transactions 146 40 Other provisions
108 4 Adjustment of prior-period amounts 147 41 Financial liabilities
108 5 New developments in international accounting under IFRSs 149 42 Other liabilities
150 43 Trade payables
/03
111 6 Currency translation
112 7 Accounting policies
150 CASH FLOW DISCLOSURES
119 8 Exercise of judgement in applying the accounting policies
120 9 Consolidation methods 150 44 Cash flow disclosures
121 SEGMENT REPORTING 152 OTHER DISCLOSURES

121 10 Segment reporting 152 45 Risks and financial instruments of the Group
162 46 Contingent liabilities
124 INCOME STATEMENT DISCLOSURES 162 47 Other financial obligations
124 11 Revenue 162 48 Litigation
124 12 Other operating income 163 49 Share-based payment
124 13 Materials expense 166 50 Related party disclosures
169 51 Auditors fees
/04
125 14 Staff costs/employees

125 15 Depreciation, amortisation and impairment losses 169 52 Exemptions under the HGB and local foreign legislation
126 16 Other operating expenses 171 53 Declaration of Conformity with the German Corporate
127 17 Net finance costs Governance Code
127 18 Income taxes 171 54 Significant events after the reporting date and other
128 19 Earnings per share disclosures
128 20 Dividend per share
171 RESPONSIBILITY STATEMENT
172 INDEPENDENT AUDITORS REPORT
INCOME STATEMENT
1 January to 31 December
03/0 1
m
Note 2015 2016
Revenue 11 59,230 57,334
Other operating income 12 2,394 2,156
Total operating income 61,624 59,490
Materials expense 13 33,170 30,620

Staff costs 14 19,640 19,592
Depreciation, amortisation and impairment losses 15 1,665 1,377
Other operating expenses 16 4,740 4,414
Total operating expenses 59,215 56,003
Net income from investments accounted for using the equity method 2 4
Profit from operating activities (EBIT) 2,411 3,491
Financial income 94 90
Finance costs 410 384
Foreign currency result 38 65
Net finance costs 17 354 359
Profit before income taxes 2,057 3,132

Income taxes 18 338 351
Consolidated net profit for the period 1,719 2,781

attributable to Deutsche Post AG shareholders 1,540 2,639
attributable to non-controlling interests 179 142
Basic earnings per share () 19 1.27 2.19
Diluted earnings per share () 19 1.22 2.10

Consolidated Financial Statements INCOME STATEMENT STATEMENT OF COMPREHENSIVE INCOME
101
STATEMENT OF COMPREHENSIVE INCOME

03/0 2
m
Note 2015 2016
Items that will not be reclassified to profit or loss

Change due to remeasurements of net pension provisions 39 833 876
Other changes in retained earnings 0 0
Income taxes relating to components of other comprehensive income 18 65 8
Share of other comprehensive income of investments accounted for using the equity method (after tax) 0 0
Total (after tax) 768 868
Items that may be subsequently reclassified to profit or loss

IAS39 revaluation reserve
Changes from unrealised gains and losses 62 6
Changes from realised gains and losses 172 63
IAS39 hedging reserve

Currency translation reserve

Income taxes relating to components of other comprehensive income 18 12 6

Share of other comprehensive income of investments accounted for using the equity method (after tax) 5 3
Total (after tax) 361 300
Other comprehensive income (after tax) 1,129 1,168
Total comprehensive income 2,848 1,613

attributable to Deutsche Post AG shareholders 2,665 1,478
attributable to non-controlling interests 183 135
BALANCE SHEET

03/0 3
m
Note 31 Dec.2015 31 Dec.2016
ASSETS
Intangible assets 21 12,490 12,554
Property, plant and equipment 22 7,795 8,389
Investment property 23 25 23
Investments accounted for using the equity method 24 76 97
Non-current financial assets 25 1,113 689
Other non-current assets 26 221 222
Deferred tax assets 27 2,007 2,192
Non-current assets 23,727 24,166
Inventories 28 281 275

Current financial assets 25 179 374
Trade receivables 29 7,694 7,965
Other current assets 26 2,172 2,176
Income tax assets 30 197 232
Cash and cash equivalents 31 3,608 3,107
Assets held for sale 32 12 0
Current assets 14,143 14,129
Total ASSETS 37,870 38,295
EQUITY AND LIABILITIES

Issued capital 33 1,211 1,211
Capital reserves 34 2,385 2,932
Other reserves 35 11 284
Retained earnings 36 7,427 7,228
Equity attributable to Deutsche Post AG shareholders 37 11,034 11,087
Non-controlling interests 38 261 263
Equity 11,295 11,350
Provisions for pensions and similar obligations 39 6,221 5,580

Deferred tax liabilities 27 142 106
Other non-current provisions 40 1,512 1,498
Non-current provisions 7,875 7,184
Non-current financial liabilities 41 4,625 4,571

Other non-current liabilities 42 234 372
Non-current liabilities 4,859 4,943
Non-current provisions and liabilities 12,734 12,127
Current provisions 40 1,486 1,323
Current financial liabilities 41 553 1,464

Trade payables 43 7,069 7,178
Other current liabilities 42 4,255 4,292
Income tax liabilities 30 476 561
Liabilities associated with assets held for sale 32 2 0
Current liabilities 12,355 13,495
Current provisions and liabilities 13,841 14,818
Total EQUITY AND LIABILITIES 37,870 38,295

Consolidated Financial Statements BALANCE SHEET C
ASH FLOW STATEMENT
103
CASH FLOW STATEMENT

03/0 4
m
Note 2015 2016
Consolidated net profit for the period attributable to Deutsche Post AG shareholders 1,540 2,639
Consolidated net profit for the period attributable to non-controlling interests 179 142
Income taxes 338 351
Net finance costs 354 359
Profit from operating activities (EBIT) 2,411 3,491
Depreciation, amortisation and impairment losses 1,665 1,377
Net income from disposal of non-current assets 261 113
Non-cash income and expense 68 40
Change in provisions 495 1,799
Change in other non-current assets and liabilities 12 120
Dividend received 1 6
Income taxes paid 585 528
Net cash from operating activities before changes in working capital 2,656 2,514
Changes in working capital

Inventories 80 3
Receivables and other current assets 460 377
Liabilities and other items 248 299
Net cash from operating activities 44.1 3,444 2,439
Subsidiaries and other business units 15 35

Property, plant and equipment and intangible assets 175 265
Investments accounted for using the equity method and other investments 223 82
Other non-current financial assets 24 456
Proceeds from disposal of non-current assets 437 838
Subsidiaries and other business units 0 304

Property, plant and equipment and intangible assets 2,104 1,966
Investments accounted for using the equity method and other investments 0 19
Other non-current financial assets 47 33
Cash paid to acquire non-current assets 2,151 2,322
Interest received 47 50
Current financial assets 205 209
Net cash used in investing activities 44.2 1,462 1,643
Proceeds from issuance of non-current financial liabilities 14 1,263

Repayments of non-current financial liabilities 33 95
Change in current financial liabilities 50 58
Other financing activities 22 205
Proceeds from transactions with non-controlling interests 0 0
Cash paid for transactions with non-controlling interests 15 9
Dividend paid to Deutsche Post AG shareholders 1,030 1,027
Dividend paid to non-controlling interest holders 124 128
Purchase of treasury shares 70 836
Proceeds from issuing shares or other equity instruments 39 0
Interest paid 76 138
Net cash used in financing activities 44.3 1,367 1,233
Net change in cash and cash equivalents 615 437

Effect of changes in exchange rates on cash and cash equivalents 16 66
Changes in cash and cash equivalents associated with assets held for sale 1 1
Changes in cash and cash equivalents due to changes in consolidated group 0 1
Cash and cash equivalents at beginning of reporting period 2,978 3,608
Cash and cash equivalents at end of reporting period 44.4 3,608 3,107
STATEMENT OF CHANGES IN EQUITY

03/0 5
m Other reserves
Equity
attributable
IAS39 IAS39 Currency to Deutsche Non-
Issued Capital revaluation hedging translation Retained Post AG controlling
capital reserves reserve reserve reserve earnings shareholders interests Total equity
Note 33 34 35.1 35.2 35.3 36 37 38
Balance at 1January2015 1,210 2,339 170 28 483 6,168 9,376 204 9,580
Capital transactions with owner

Dividend 1,030 1,030 123 1,153
Transactions with non-controlling interests 0 0 0 3 3 3 6
Changes in non-controlling interests due to
changesin consolidated group 0 0 0
Issue of shares or other equity instruments 2 37 0 39 0 39
Purchase of treasury shares 3 0 67 70 0 70
Share-based payment schemes (issuance) 0 57 0 57 0 57
Share-based payment schemes (exercise) 2 48 46 0 0 0
1,007 126 1,133
Total comprehensive income

Consolidated net profit for the period 1,540 1,540 179 1,719
Currency translation differences 468 0 468 9 477
Change due to remeasurements of net pension
provisions 773 773 5 768
Other changes 0 0 103 13 0 116 0 116
2,665 183 2,848
Balance at 31December2015 1,211 2,385 67 41 15 7,427 11,034 261 11,295
Balance at 1January2016 1,211 2,385 67 41 15 7,427 11,034 261 11,295
Capital transactions with owner

Dividend 1,027 1,027 129 1,156
Transactions with non-controlling interests 0 0 0 4 4 4 0
Changes in non-controlling interests due to
changesin consolidated group 0 0 0
Issue of shares or other equity instruments 0 0 0 0 0 0
Purchase of treasury shares 31 0 1,000 1,031 0 1,031
Convertible bond 28 531 0 559 0 559
Share-based payment schemes (issuance) 0 70 0 70 0 70
Share-based payment schemes (exercise) 3 54 51 0 0 0
1,425 133 1,558

Consolidated net profit for the period 2,639 2,639 142 2,781
Currency translation differences 283 0 283 5 288
Change due to remeasurements of net pension
provisions 866 866 2 868
Other changes 0 0 56 44 0 12 0 12
1,478 135 1,613
Balance at 31December2016 1,211 2,932 11 3 298 7,228 11,087 263 11,350
Consolidated Financial Statements STATEMENT OF CHANGES IN EQUITY NOTES Basis of preparation
105
NOTES TO THE CONSOLIDATED 2 Consolidated group

The consolidated group includes all companies controlled by
FINANCIAL STATEMENTS OF Deutsche Post AG. Control exists if Deutsche Post AG has decision-
making powers, is exposed, and has rights, to variable returns, and
DEUTSCHE POST AG 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.
BASIS OF PREPARATION When Deutsche Post DHL Group holds less than the majority
of voting rights, other contractual arrangements may result in the
Deutsche Post DHL Group is a global mail and logistics group. The Group controlling the investee.
Deutsche Post and DHL corporate brands represent a portfolio of DHL Sinotrans International Air Courier Ltd. (Sinotrans),
logistics (DHL) and communication (Deutsche Post) services. The China, is a significant company that has been consolidated despite
financial year of Deutsche Post AG and its consolidated subsidiaries Deutsche Post DHL Group not having a majority of voting rights.
is the calendar year. Deutsche Post AG, whose registered office is in Sinotrans provides domestic and international express delivery and
Bonn, Germany, is entered in the commercial register of the Bonn transport services and has been assigned to the Express segment.
Local Court. The company is fully integrated into the global DHL network and
operates exclusively for Deutsche Post DHL Group. Due to the arrange
1 Basis of accounting ments in the Network Agreement, DHL is able to prevail in decisions
As a listed company, Deutsche Post AG prepared its consolidated concerning Sinotrans relevant activities. Sinotrans has therefore
financial statements in accordance with the International Financial been consolidated although Deutsche Post DHL Group holds no
Reporting Standards (IFRSs), as adopted by the European Union more than 50% of the companys share capital.
(EU), and the provisions of commercial law to be additionally ap- The complete list of the Groups shareholdings in accordance
plied in accordance with section 315a(1) of the Handelsgesetzbuch with section 313(2) nos.1 to 5 and section 313(3) of the HGB can be
(HGB German Commercial Code). accessed online at dpdhl.com/en/investors.
The requirements of the Standards applied have been satisfied The companies listed in the following table are consolidated in
in full, and the consolidated financial statements therefore provide addition to the parent company Deutsche Post AG:
a true and fair view of the Groups net assets, financial position and
results of operations. Consolidated group
The consolidated financial statements consist of the income
statement and the statement of comprehensive income, the balance 2015 2016
sheet, the cash flow statement, the statement of changes in equity
Number of fully consolidated companies
and the notes. In order to improve the clarity of presentation, vari (subsidiaries)
ous items in the balance sheet and in the income statement have German 139 132
been combined. These items are disclosed and explained separately Foreign 658 655
in the notes. The income statement has been classified in accord- Number of joint operations
ance with the nature of expense method. German 1 1
The accounting policies, as well as the explanations and disclos Foreign 1 1
ures in the notes to the IFRS consolidated financial statements for Number of investments accounted for
financial year 2016, are generally based on the same accounting usingtheequity method
German 1 0
policies used in the 2015 consolidated financial statements. Excep-
Foreign 15 12
tions to this are the changes in international financial reporting
under IFRSs described in note5 that have been required to be
applied by the Group since 1January2016. The accounting policies
are explained in note7.
These consolidated financial statements were authorised for
issue by a resolution of the Board of Management of Deutsche Post AG
dated 16February2017.
The consolidated financial statements are prepared in euros ().
Unless otherwise stated, all amounts are given in millions of euros
( million, m).
In January2016, Deutsche Post DHL Group acquired a minority The final purchase price allocation is as follows:
interest of 27.5% in French e-commerce logistics specialist Relais
Colis SAS. Relais Colis is accounted for in the consolidated financial Net assets of Mitsafetrans
statements using the equity method. The companies Gll GmbH, m Carrying
Germany, and Presse-Service Gll GmbH, Switzerland, which had 30September2016 amount Adjustment Fair value
been accounted for using the equity method, were sold in the third Non-current assets 3 10 13
quarter of 2016. Customer relationship 8 8
Brand name 1 1
Deferred tax assets 1 1
2.1 Acquisitions in 2016
Current assets 15 15
The following companies were acquired in financial year 2016:
Cash and cash equivalents 8 8
ASSETS 26 10 36
Acquisitions, 2016
Non-current provisions
Share andliabilities 3 6 9
ofcapital/ Non-current provisions 2 3 5
voting rights Deferred tax liabilities 1 3 4
Name Country Segment %
Current liabilities and provisions 9 9
DHL eCommerce (Malaysia) Malaysia Global 100
Sdn.Bhd. Forwarding, (step EQUITY AND LIABILITIES 12 6 18
Freight acquisition) Net assets 18
Mitsafetrans S.r.l.
(including Mitradiopharma S.r.l.) Italy Supply Chain 100
UK Mail Group plc
(includingUKMail Limited) UK PeP 100 Customer relationships are amortised over five years using the
straight-line method, the brand name is amortised over three years.
Calculation of goodwill
The remaining 51% interest in DHL eCommerce (Malaysia) Sdn.Bhd., m
which was previously accounted for using the equity method, was 30September2016 Mitsafetrans
acquired in the third quarter of 2016. This company is now consoli Cost 53
dated. No tabular presentation is provided as all amounts were less Less net assets 18
than 1million. Goodwill 35
On 30September2016, DHL Supply Chain (Italy) S.p.A. ac-

quired the Italian company Mitsafetrans S.r.l., including its sub
sidiary Mitradiopharma S.r.l., referred to collectively below as A variable purchase price was agreed for the acquisition, in addition
Mitsafetrans. These companies provide logistics services for the to the cash purchase price paid in the amount of 38million, of
technology, pharma and high-tech sectors in Italy. The acquisition which 4million was reported as a liability:
will provide access to highly specialised logistics services in niche
markets.
Contingent consideration
Remaining
Period for financial Results range Fair value paymentobligation
Basis years from/to from/to of total obligation at31Dec.2016
EBITDA 2016 to 2018 0 to 19million 15million 15million
On 22December2016, the Group acquired the companies UK Mail to and from the UK, allowing it to expand its presence in the UK,
Group plc and UK Mail Limited, UK, referred to below as UK Mail Europes biggest e-commerce market.
Group for short. The companies operate one of the largest integrated The final purchase price allocation will be presented in a sub-
networks for processing parcels and mail items in the UK. A takeover sequent financial report, as not all the necessary information is
offer had been submitted to UK Mail Group in September2016. As currently available. All the assets and liabilities and the goodwill
a result of this acquisition, Deutsche Post DHL Group can offer its calculated are therefore preliminary.
customers an integrated delivery service for cross-border shipments
Consolidated Financial Statements NOTES Basis of preparation
107
Preliminary net assets of UK Mail Group Following their consolidation, the companies acquired in financial
m Carrying
year 2016 contributed 11million to consolidated revenue and
31December2016 amount Adjustment Fair value 0million to consolidated EBIT. If the companies had already been
Non-current assets 98 12 110 acquired as at 1January2016, they would have contributed an add
Customer relationship 9 9 itional 611million to consolidated revenue and 15million to
Brand name 3 3 consolidated EBIT in 2016.
Current assets 82 82
Transaction costs amounted to 4million and are reported
Cash and cash equivalents 7 7
inother operating expenses.
ASSETS 187 12 199
In 2016, 319million was paid for companies acquired in the
Non-current provisions
andliabilities 3 3 6 financial year. The purchase price for the companies acquired was
Deferred tax liabilities 3 3 6 paid by transferring cash funds.
Current liabilities and provisions 109 109
EQUITY AND LIABILITIES 112 3 115 2.2 Disposal and deconsolidation effects in 2016
Net assets 84 Gains are shown in other operating income; losses are reported in
other operating expenses.
The e-commerce company nugg.ad GmbH, Germany, was sold
Customer relationships are amortised over five years at Mail and in January2016. In addition, the sales of IntelliAd Media GmbH,
over two years at Parcel, using the straight-line method. The brand Germany, a company active in the area of search engine advertising,
name has a useful life of one year. and the joint ventures Gll GmbH, Germany, and Presse-Service
Consolidation resulted in preliminary goodwill of 201million Gll GmbH, Switzerland, which were accounted for using the equity
which is attributable mainly to the synergy and network effects ex- method, were completed in July2016. All shares of optivo GmbH,
pected to be generated with the companys own European parcel Germany, a provider of technical e-mail marketing services, were
business. sold at the end of September2016.
The disposal and deconsolidation effects were attributable
Preliminary calculation of goodwill solely to the Post- eCommerce- Parcel segment.
m
31December2016 UK Mail Group
Cost 285
Less net assets 84
Goodwill 201
Disposal and deconsolidation effects

m Gll Group
(equity nugg.ad IntelliAd optivo
1January to 31December2016 accounted) GmbH Media GmbH GmbH Total
Non-current assets 2 0 0 3 5
Current assets 0 2 2 2 6
Cash and cash equivalents 0 3 1 1 5
ASSETS 2 5 3 6 16
Non-current provisions and liabilities 0 0 0 0 0
Current provisions and liabilities 0 2 1 2 5
EQUITY AND LIABILITIES 0 2 1 2 5
Net assets 2 3 2 4 11
Total consideration received 2 3 2 25 32
Gains/losses from the currency translation reserve 0 0 0 0 0
Non-controlling interests 0 0 0 0 0
Deconsolidation gain (+)/loss () 0 0 0 21 21
2.3 Joint operations As a result, pension provisions declined in the financial year
Joint operations are consolidated in accordance with IFRS11, based despite the significant decrease in discount rates. A measurement-
on the interest held. related reversal had already been recognised in the first quarter of
A significant joint operation is Aerologic GmbH (Aerologic), 2016, due to changes in the occupational retirement arrangement
Germany, a cargo airline domiciled in Leipzig. It was jointly estab- in Germany. This was offset by a number of other human resources
lished by Lufthansa Cargo AG and Deutsche Post Beteiligungen measures (early retirement scheme for civil servants, etc.) with the
Holding GmbH, which each hold 50% of its capital and voting result that, overall, there was no effect on earnings. Further details
rights. Aerologic has been assigned to the Express segment. Aero- on pension provisions can be found in note39.
logics shareholders are simultaneously its customers, giving them On 1 March 2016, the Board of Management of Deutsche Post AG
access to its freight aircraft capacity. Aerologic exclusively serves the resolved a share buyback programme with a total volume of up to
DHL Express network from Monday to Friday, whilst it flies for the 1billion to be initiated on 1April2016, notes 33 and 36.
Lufthansa Cargo network at weekends. In contrast to its capital and The state aid decision of the European Commission is null and
voting rights, the companys assets and liabilities, as well as its in- void with final effect and any grounds for the obligation to repay the
come and expenses, are allocated based on this user relationship. alleged state aid have been removed. The amount of 378million
deposited in a trustee account was released and the obligation rec-
3 Significant transactions ognised as a contingent liability was reversed, notes 46 and 48.
In addition to the acquisition of UK Mail Group mentioned in Various holders of the convertible bond issued on 6Decem-
note2, the following significant transactions were entered into in ber2012 exercised their conversion right in financial year 2016,
financial year 2016: notes 34 and 41.
In the first quarter of 2016, the remaining shares in the prop-
erty development companies Kings Cross Central Property Trust 4 Adjustment of prior-period amounts
and Kings Cross Central General Partner Ltd. (Kings Cross com- No prior-period amounts were adjusted in financial year 2016.
panies), UK, were sold. The gains on the disposal of the shares are
reported in other operating income, note12. 5 New developments in international accounting under IFRSs
On 1April2016, the Group placed two senior bonds with a
total volume of 1.25billion on the capital market, note41. Of the New Standards required to be applied in financial year 2016
capital raised, 1billion was used for the further funding of pension The following Standards, changes to Standards and Interpretations
obligations. are required to be applied from 1January2016:
Standard Subject matter and significance

Amendments to IAS19, The amendments apply to the recognition of employee contributions to defined benefit retirement plans. Their objective is to simplify accounting for
Defined Benefit Plans: employee contributions that are independent of the number of years of service. In such cases, the service cost in the period in which the corresponding
Employee Contributions service is rendered may be reduced. The new requirements must be applied retrospectively. Application has not led to any material effects.
Annual Improvements The annual improvement process refers to the following Standards: IFRS2, IFRS3, IFRS8, IFRS13, IAS16, IAS24, IAS37, IAS38 and IAS39. Theamend-
toIFRSs (20102012 Cycle) ments will not have a material influence on the consolidated financial statements.
Amendments to IAS16, The amendments expand the existing requirements relating to the permitted depreciation and amortisation methods. The amendments specify that
Property, Plant and revenue-based depreciation methods are not permitted for property, plant and equipment, and revenue-based amortisation methods may only be
Equipment, and IAS38, used for intangible assets in certain exceptional circumstances. In addition, the amendments clarify that a reduction in the selling price of goods and
Intangible Assets: services could signal obsolescence, which could in turn reflect a reduction in the economic benefits available from the asset. The requirements are
Clarification of Acceptable applicable prospectively. Application will not have a material effect on the consolidated financial statements.
Methods of Depreciation
andAmortisation
Amendments to IFRS11, The amendment clarifies that the acquisition and additional acquisition of interests in joint operations in which the activity constitutes a business,
JointArrangements asdefined in IFRS3, Business Combinations, must be recognised in accordance with the principles governing business combinations accounting
Acquisition of Interests inIFRS3 and other relevant IFRSs, providing that those principles do not conflict with the requirements of IFRS11. The amendments do not apply if
inJoint Operations thereporting entity and the other parties involved are under the common control of the same ultimate controlling party. The new requirements are
applicable prospectively. The amendment will not have a material effect on the Group.
109
Standard Subject matter and significance

Annual Improvements The annual improvement process relates to the following Standards: IFRS5, IFRS7, IAS19 and IAS34. The amendments will not have a material
toIFRSs (20122014 Cycle) influence on the consolidated financial statements.
Amendments to IAS1, The changes comprise clarifications relating to the materiality of the items presented in all components of the IFRS financial statements. Information
Presentation of Financial that is not material need not be presented. This applies even if disclosure is explicitly required in other Standards. In addition, the revised version
Statements: Disclosure ofIAS1 includes new rules or clarifications of existing requirements concerning the presentation of subtotals, the structure of the notes and the
Initiative disclosures on accounting policies. The presentation of the interest in equity-accounted investments in other comprehensive income is also clarified.
The amendments do not have a material effect on the financial statements.
The following are not relevant for the consolidated financial statements:
amendments to IAS27, Equity Method in Separate Financial Statements; amendments to IFRS10, IFRS12 and IAS28,
Investment Entities: Applying the Consolidation Exception.
New accounting pronouncements adopted by the EU but only required

to be applied in future periods
The following Standards, changes to Standards and Interpretations
have already been endorsed by the EU. However, they will only be
required to be applied in future periods.
Effective for
financial years
Standard beginning
(issue date) onorafter Subject matter and significance
IFRS15, Revenue from 1January2018 This Standard will in future replace the existing requirements governing revenue recognition under IAS18, Revenue, and IAS11,
Contracts with Customers Construction Contracts, and related interpretations. The new Standard establishes uniform requirements regarding the
(28May2014) including amount,timing and time period of revenue recognition. It provides a principle-based five-step model that must be applied to
theamendment to IFRS15 allcategories of contracts with customers. The Group will apply IFRS15 for the first time for the financial year beginning on
(11September2015) 1January2018. A Group-wide project to introduce IFRS15 is underway. In various divisions, customer contracts are being
reviewed and analysed using the five-step model in IFRS15. The timing of revenue from certain types of contracts will change
because, in future, revenue will be recognised over time rather than at a point in time, and because variable remuneration
components will be recognised sooner. There will be changes in the balance sheet due to the separate disclosure of contract
assets and liabilities, as well as in the notes due to expanded quantitative and qualitative disclosures. On the whole, the Group
does not expect any material effect on the consolidated financial statements.
IFRS9, Financial Instruments 1January2018 IFRS9 contains requirements governing the recognition and measurement of financial instruments, derecognition and hedge
(24July2014) accounting. It thus replaces the previously applicable IAS39. Initial application is in principle retrospective, although transition
relief is provided. In future, financial assets must be classified on the basis of the business model in which they are held and
their cash flow characteristics. The reclassification of financial instruments will not have a material effect on the consolidated
financial statements because the Group mainly reports trade receivables. Only 2% of financial assets will have to be reclassified;
the rest have already been assigned to the new category and are measured at fair value through profit or loss. The change in
recognition of impairment losses on financial assets from the incurred loss model (in which anticipated losses are not recognised
until a credit loss event actually occurs) to the expected loss model will have a one-time effect to be recognised in other
comprehensive income. This effect is expected to be immaterial, because sufficient loss allowances are already recognised for
the risk of default on trade receivables. Following the introduction of the Standard, the loss allowances to be recognised on
trade receivables will be determined using the full lifetime expected loss model (simplified approach). The default rates will be
based on historical and forward-looking data. IFRS9 will also more closely align hedge accounting with risk management
objectives. In particular, the new requirements on hedging individual risk components, which are applicable for bothnon-
financial and financial items, will considerably simplify the designation and presentation of hedging relationships. The range of
hedged items permitted will, in future, be extended to cover combinations of derivative and non-derivative financial instruments,
and parts or tranches of individual financial and non-financial items. The requirements for assessing hedge effectiveness,
rebalancing hedging relationships and the de-designation of hedging relationships will also be simplified. Overall, the new
hedge accounting requirements will result in greater flexibility with regard to hedging individual risks. They are not expected
tohave a material effect on the Groups results. The new requirements will more transparently reflect the risk management
approach of Deutsche Post DHL Group.
New accounting requirements not yet adopted by the EU

(endorsement procedure)
The IASB and the IFRIC issued further Standards, amendments to
Standards and Interpretations in financial year 2016 and in previous
years whose application is not yet mandatory for financial year 2016.
The application of these IFRSs is dependent on their adoption by
theEU.
Effective for
financial years
Standard beginning
Clarifications to IFRS15 1January2018 The clarifications principally address the following issues: identification of performance obligations, principal versus agent
(12April2016) considerations, licensing and transition relief.
IFRS16, Leases 1January2019 IFRS16, Leases, replaces the existing standard on accounting for leases, IAS17, and the related interpretations. IFRS16 requires
(13January2016) lessees to adopt a uniform approach to the presentation of leases. In future, assets must be recognised for the right of use
received and liabilities must be recognised for the payment obligations entered into for all leases. Exemptions are provided for
low-value lease assets and short-term leases (shorter than twelve months). In contrast, the accounting requirements for lessors
remain largely unchanged, particularly with regard to the continued requirement to classify leases according to IAS17. The
Standard must be applied for the first time for reporting periods beginning on or after 1January2019. Voluntary early application
is permitted, provided that IFRS15 is also applied. The Group expects the introduction of IFRS16 to have a material effect on
components of the consolidated financial statements and the presentation of its net assets, financial position and results of
operations:
Balance sheet: With regard to the financial obligations reported as operating lease liabilities under note47, initial application
ofthe Standard will result in significant increases in non-current assets (accounting for rights of use) and financial liabilities
(disclosure of the corresponding lease liabilities). As a result of this increase in total assets and liabilities, the Groups equity
ratio will decline and net debt will rise accordingly (see also note33.4 Disclosures on corporate capital).
Income statement: In contrast to the presentation to date of operating lease expenses, in future depreciation charges
onright-of-use assets and the interest expense from unwinding of the discount on the lease liabilities will be recognised.
Thisimproves the profit from operating activities (EBIT).
Cash flow statement: The change in presentation of operating lease expenses results in an improvement in net cash from/
used in operating activities and a decline in net cash from/used in financing activities.
A Group-wide project to implement IFRS16 is underway. The existing leases held by all divisions are being inventoried, reviewed
and recognised according to IFRS16.
Amendments to IAS12, 1January2017 The amendment of IAS12 clarifies that unrealised losses on debt instruments measured at fair value result in deductible
Income Taxes Recognition temporary differences. It also clarifies that an assessment must be made for the aggregate of all deductible temporary
of Deferred Tax Assets differences as to whether it is probable that sufficient taxable income will be available in future, to allow the temporary
forUnrealised Losses differences to be used and recognised. Rules and examples supplementing IAS12 clarify how future taxable income is to be
(16January2016) determined for recognition of deferred tax assets. The effects on the Group will be immaterial.
Amendments to IAS7, 1January2017 The amendments provide clarifications regarding an entitys financing activities. Their objective is to make it easier for users of
Statement of Cash Flows financial statements to assess an entitys financial liabilities. The disclosures are generally relevant and, in future, will be
Disclosure Initiative incorporated into the consolidated financial statements.
(29January2016)
Amendments to IFRS2, 1January2018 The amendments clarify the accounting for cash-settled share-based payment transactions that include a performance condition.
Share-based Payment The measurement rules follow the same approach as when accounting for equity-settled awards. An exception was also included
Clarifications of Classification for the classification of share-based payment transactions with net settlement features for withholding tax obligations. Such
and MeasurementofShare- commitments are required to be classified in their entirety as equity-settled share-based payment transactions if they would have
based Payment Transactions been classified in this way in the absence of the net settlement feature. The amendments further include clarifications regarding
(20June2016) modifications of the terms and conditions of share-based payment arrangements that change their classification fromcash-settled
to equity-settled. Early application is permitted. The amendments will not have any effect on the Group.
Amendments to IFRS4, 1January2018 The objective of the amendments to IFRS4 is to minimise the accounting impact of different effective dates for IFRS9 and the
Insurance Contracts future new Standard on accounting for insurance contracts (IFRS17). Entities can choose from two options. The deferral approach
Applying IFRS9, Financial allows entities whose primary activity is issuing insurance contracts to delay the initial application of IFRS9. Alternatively, the
Instruments, with IFRS4, overlay approach is available to entities that apply IFRS4 to existing insurance contracts and enables them to reclassify, from
Insurance Contracts profit or loss to other comprehensive income, an amount equal to the difference between the amount reported in profit or loss
(12September2016) for designated financial assets applying IFRS9 and the amount that would have been reported in profit or loss under IAS39.
Both approaches are optional. The effect on the consolidated financial statements is currently being reviewed.
111
Effective for
financial years
Standard beginning
Annual Improvements 1January2017/ The improvements relate to IAS28, Investments in Associates and Joint Ventures, and IFRS12, Disclosure of Interests in Other
toIFRSs (20142016 Cycle) 1January2018 Entities. IAS28 clarifies that entities can decide on an investment-by-investment basis on measuring certain associates or
(8December2016) jointventures at fair value through profit or loss. The amendments to IFRS12 make it clear that the disclosure requirements in
IFRS12 also apply to interests in other entities that are classified as held for sale in accordance with IFRS5. Changes were
alsomade to IFRS1, First-time Adoption of International Financial Reporting Standards. The effective date for the amendments
to IFRS1 and IAS28 is 1January2018 (with voluntary early application of IAS28 permitted) and for the amendments to IFRS12
is1January2017. The amendments will not have a material influence on the consolidated financial statements.
IFRIC22, Foreign Currency 1January2018 IFRIC22 clarifies the date to be used to determine the exchange rate for transactions that include the receipt or payment
Transactions and ofadvance consideration in a foreign currency. The effective date of the interpretation is 1January2018. Early application
AdvanceConsideration ispermitted. The effect is currently being reviewed.
(8December2016)
Amendments to IAS40, 1January2018 The amendment provides clarity on the classification of property under construction or development. The consolidated financial
Investment Property statements will not be affected.
(8December2016)
The following are not relevant for the consolidated financial statements:
IFRS14, Regulatory Deferral Accounts; amendments to IFRS10 and IAS28,
Sales or Contributions ofAssets between an Investor and its Associate/Joint Venture.
6 Currency translation The exchange rates for the currencies that are significant for the
The financial statements of consolidated companies prepared in Group were as follows:
foreign currencies are translated into euros () in accordance with
IAS21 using the functional currency method. The functional cur- Closing rates Average rates
rency of foreign companies is determined by the primary economic
2015 2016 2015 2016
environment in which they mainly generate and use cash. Within Currency Country EUR 1 = EUR 1 = EUR 1 = EUR 1 =
the Group, the functional currency is predominantly the local cur- AUD Australia 1.4905 1.4602 1.4771 1.4886
rency. In the consolidated financial statements, assets and liabilities CNY China 7.0687 7.3534 6.9773 7.3525
are therefore translated at the closing rates, whilst periodic income GBP United Kingdom 0.7345 0.8560 0.7264 0.8187
and expenses are generally translated at the monthly closing rates. JPY Japan 131.0778 123.4555 134.3334 120.3110
The resulting currency translation differences are recognised in SEK Sweden 9.1879 9.5601 9.3523 9.4672
other comprehensive income. In financial year 2016, currency CHF Switzerland 1.0823 1.0744 1.0680 1.0899
USD USA 1.0886 1.0550 1.1105 1.1068
translation differences amounting to 288million (previous year:
477million) were recognised in other comprehensive income (see
the statement of comprehensive income).
Goodwill arising from business combinations after 1January The carrying amounts of non-monetary assets recognised at signifi
2005 is treated as an asset of the acquired company and therefore cant consolidated companies operating in hyperinflationary econ-
carried in the functional currency of the acquired company. omies are generally indexed in accordance with IAS29 and thus
reflect the current purchasing power at the balance sheet date.
In accordance with IAS21, receivables and liabilities in the fi- Intangible assets are amortised using the straight-line method
nancial statements of consolidated companies that have been pre- over their useful lives. Impairment losses are recognised in accord-
pared in local currencies are translated at the closing rate as at the ance with the principles described in the section headed Impair-
balance sheet date. Currency translation differences are recognised ment. The useful lives of significant intangible assets are presented
in other operating income and expenses in the income statement. in the table below:
In financial year 2016, income of 222million (previous year:
280million) and expenses of 222million (previous year: 267mil Useful lives
lion) resulted from currency translation differences. In contrast,
currency translation differences relating to net investments in a Years1
foreign operation are recognised in other comprehensive income. Internally developed software up to 10
Purchased software up to 5
7 Accounting policies Licences term of agreement
Customer relationships up to 20
Uniform accounting policies are applied to the annual financial
statements of the entities that have been included in the consoli- 1
The useful lives indicated represent maximum amounts specified by the Group.
dated financial statements. The consolidated financial statements Theactualuseful lives may be shorter due to contractual arrangements or other
specificfactors such as time and location.
are prepared under the historical cost convention, except where
items are required to be recognised at their fair value.
Intangible assets that are not affected by legal, economic, contrac-
Revenue and expense recognition tual or other factors that might restrict their useful lives are consid-
Deutsche Post DHL Groups normal business operations consist of ered to have indefinite useful lives. They are not amortised but are
the provision of logistics services. All income relating to normal tested for impairment annually or whenever there are indications
business operations is recognised as revenue in the income state- of impairment. They generally include brand names from business
ment. All other income is reported as other operating income. Rev- combinations and goodwill, for example. Impairment testing is car-
enue and other operating income are generally recognised when ried out in accordance with the principles described in the section
services are rendered, the amount of revenue and income can be headed Impairment.
reliably measured and, in all probability, the economic benefits from
the transactions will flow to the Group. Operating expenses are rec- Property, plant and equipment
ognised in income when the service is utilised or when the expenses Property, plant and equipment is carried at cost, reduced by accu-
are incurred. mulated depreciation and valuation allowances. In addition to dir
ect costs, production cost includes an appropriate share of allocable
Intangible assets production overhead costs. Borrowing costs that can be allocated
Intangible assets, which comprise internally generated and pur- directly to the purchase, construction or manufacture of property,
chased intangible assets and purchased goodwill, are measured at plant and equipment are capitalised. Value added tax arising in con-
amortised cost. junction with the acquisition or production of items of property,
Internally generated intangible assets are capitalised at cost if plant or equipment is included in the cost if it cannot be deducted
it is probable that their production will generate an inflow of future as input tax. Depreciation is charged using the straight-line method.
economic benefits and the costs can be reliably measured. In the The estimated useful lives applied to the major asset classes are pre-
Group, this concerns internally developed software. If the criteria sented in the table below:
for capitalisation are not met, the expenses are recognised immedi-
ately 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 incurred for qualifying assets are in-
cluded in the production cost. Value added tax arising in conjunc-
tion with the acquisition or production of intangible assets is in-
cluded in the cost if it cannot be deducted as input tax. Capitalised
software is amortised over its useful life.
113
Useful lives Since January2005, goodwill has been accounted for using the
impairment-only approach in accordance with IFRS3. This stipu-
Years1 lates that goodwill must be subsequently measured at cost, less any
Buildings 20 to 50 cumulative adjustments from impairment losses. Purchased good-
Technical equipment and machinery 10 to 20 will is therefore no longer amortised and instead is tested for im-
Aircraft 15 to 20 pairment annually in accordance with IAS36, regardless of whether
IT systems 4 to 5
any indication of possible impairment exists, as in the case of intan-
Transport equipment and vehicle fleet 4 to 18
gible assets with an indefinite useful life. In addition, the obligation
Other operating and office equipment 8 to 10
remains to conduct an impairment test if there is any indication of
1
The useful lives indicated represent maximum amounts specified by the Group. impairment. Goodwill resulting from company acquisitions is allo-
Theactualuseful lives may be shorter due to contractual arrangements or other cated to the identifiable groups of assets (CGUs or groups of CGUs)
specificfactors such as time and location.
that are expected to benefit from the synergies of the acquisition.
These groups represent the lowest reporting level at which the good-
If there are indications of impairment, an impairment test must be will is monitored for internal management purposes. The carrying
carried out; see section headed Impairment. amount of a CGU to which goodwill has been allocated is tested for
impairment annually and whenever there is an indication that the
Impairment unit may be impaired. Where impairment losses are recognised in
At each balance sheet date, the carrying amounts of intangible assets, connection with a CGU to which goodwill has been allocated, the
property, plant and equipment and investment property are re- existing carrying amount of the goodwill is reduced first. If the
viewed for indications of impairment. If there are any such indica- amount of the impairment loss exceeds the carrying amount of the
tions, an impairment test is carried out. This is done by determining goodwill, the difference is allocated to the remaining non-current
the recoverable amount of the relevant asset and comparing it with assets in the CGU.
the carrying amount.
In accordance with IAS36, the recoverable amount is the assets Finance leases
fair value less costs to sell or its value in use (present value of the A lease is an agreement in which the lessor conveys to the lessee the
pre-tax free cash flows expected to be derived from the asset in right to use an asset for a specified period in return for a payment
future), whichever is higher. The discount rate used for the value in or a number of payments. In accordance with IAS17, beneficial
use is a pre-tax rate of interest reflecting current market conditions. ownership of leased assets is attributed to the lessee if the lessee
If the recoverable amount cannot be determined for an individual substantially bears all risks and rewards incidental to ownership of
asset, the recoverable amount is determined for the smallest iden- the leased asset. To the extent that beneficial ownership is attribut-
tifiable group of assets to which the asset in question can be allo- able to the Group as the lessee, the asset is capitalised at the date on
cated and which generates independent cash flows (cash generating which use starts, either at fair value or at the present value of the
unit CGU). If the recoverable amount of an asset is lower than its minimum lease payments if this is less than the fair value. A lease
carrying amount, an impairment loss is recognised immediately in liability in the same amount is recognised under non-current liabil-
respect of the asset. If, after an impairment loss has been recognised, ities. The lease is subsequently measured at amortised cost using the
a higher recoverable amount is determined for the asset or the CGU effective interest method. The depreciation methods and estimated
at a later date, the impairment loss is reversed up to a carrying useful lives correspond to those of comparable purchased assets.
amount that does not exceed the recoverable amount. The increased
carrying amount attributable to the reversal of the impairment loss Operating leases
is limited to the carrying amount that would have been determined For operating leases, the Group reports the leased asset at amortised
(net of amortisation or depreciation) if no impairment loss had been cost as an asset under property, plant and equipment where it is the
recognised in the past. The reversal of the impairment loss is recog- lessor. The lease payments received in the period are shown under
nised in the income statement. Impairment losses recognised in other operating income. Where the Group is the lessee, the lease
respect of goodwill may not be reversed. payments made are recognised as lease expenses under materials
expense. Lease expenses and income are recognised using the
straight-line method.
Investments accounted for using the equity method Available-for-sale financial assets
Investments accounted for using the equity method cover associates These financial instruments are non-derivative financial assets and
and joint ventures. These are recognised using the equity method are carried at their fair value, where this can be measured reliably.
in accordance with IAS28, Investments in Associates and Joint Ven- If a fair value cannot be determined, they are carried at cost.
tures. Based on the cost of acquisition at the time of purchase of the Changes in fair value between reporting dates are generally recog-
investments, the carrying amount of the investment is increased or nised in other comprehensive income (revaluation reserve). The
reduced annually to reflect the share of earnings, dividends distrib- reserve is reversed to income either upon disposal or if the fair value
uted and other changes in the equity of the associates and joint falls below cost more than temporarily, i.e., the drop is significant or
ventures attributable to the investments of Deutsche Post AG or its prolonged. If, at a subsequent balance sheet date, the fair value of
consolidated subsidiaries. An impairment loss is recognised on in- adebt instrument has increased objectively as a result of events
vestments accounted for using the equity method, including the occurring after the impairment loss was recognised, the impairment
goodwill in the carrying amount of the investment, if the recover loss is reversed in the appropriate amount. Impairment losses rec-
able amount falls below the carrying amount. Gains and losses from ognised on equity instruments may not be reversed to income. If
the disposal of investments accounted for using the equity method, equity instruments are recognised at fair value, any reversals must
as well as impairment losses and their reversals, are recognised in be recognised in other comprehensive income. No reversals may be
other operating income or other operating expenses. made in the case of equity instruments that were recognised at cost.
Available-for-sale financial instruments are allocated to non-current
Financial instruments assets unless the intention is to dispose of them within twelve
A financial instrument is any contract that gives rise to a financial months of the balance sheet date. In particular, investments in un-
asset of one entity and a financial liability or equity instrument of consolidated subsidiaries, marketable securities and other equity
another entity. Financial assets include in particular cash and cash investments are reported in this category.
equivalents, trade receivables, originated loans and receivables, and
derivative financial assets held for trading. Financial liabilities in- Held-to-maturity financial assets
clude contractual obligations to deliver cash or another financial Financial instruments are assigned to this category if there is an
asset to another entity. These mainly comprise trade payables, li intention to hold the instrument to maturity and the economic con-
abilities to banks, liabilities arising from bonds and finance leases, ditions for doing so are met. These financial instruments are
and derivative financial liabilities. non-derivative financial assets that are measured at amortised cost
using the effective interest method.
Fair value option
Under the fair value option, financial assets or financial liabilities Loans and receivables
may be measured at fair value through profit or loss on initial rec- These are non-derivative financial assets with fixed or determinable
ognition if this eliminates or significantly reduces a measurement payments that are not quoted on an active market. Unless held for
or recognition inconsistency (accounting mismatch). The Group trading, they are recognised at cost or amortised cost at the balance
makes use of the option in order to avoid accounting mismatches. sheet date. The carrying amounts of money market receivables cor-
respond approximately to their fair values due to their short matur
Financial assets ity. Loans and receivables are considered current assets if they
Financial assets are accounted for in accordance with the provisions mature not more than twelve months after the balance sheet date;
of IAS39, which distinguishes between four categories of financial otherwise, they are recognised as non-current assets. If the recov-
instruments. erability of receivables is in doubt, they are recognised at amortised
cost, less appropriate specific or collective valuation allowances. A
write-down on trade receivables is recognised if there are objective
indications that the amount of the outstanding receivable cannot be
collected in full. The write-down is recognised in the income state-
ment via a valuation account.
115
Financial assets at fair value through profit or loss A fair value hedge hedges the fair value of recognised assets and
All financial instruments held for trading and derivatives that do liabilities. Changes in the fair value of both the derivatives and the
not satisfy the criteria for hedge accounting are assigned to this hedged item are recognised in income simultaneously.
category. They are generally measured at fair value. All changes in A cash flow hedge hedges the fluctuations in future cash flows
fair value are recognised in income. All financial instruments in this from recognised assets and liabilities (in the case of interest rate
category are accounted for at the trade date. Assets in this category risks), highly probable forecast transactions as well as unrecognised
are recognised as current assets if they are either held for trading or firm commitments that entail a currency risk. The effective portion
will likely be realised within twelve months of the balance sheet date. of a cash flow hedge is recognised in the hedging reserve in equity.
To avoid variations in earnings resulting from changes in the Ineffective portions resulting from changes in the fair value of the
fair value of derivative financial instruments, hedge accounting is hedging instrument are recognised directly in income. The gains
applied where possible and economically useful. Gains and losses and losses generated by the hedging transactions are initially recog-
from the derivative and the related hedged item are recognised in nised in equity and are then reclassified to profit or loss in the
income simultaneously. Depending on the hedged item and the risk period in which the asset acquired or liability assumed affects profit
to be hedged, the Group uses fair value hedges and cash flow hedges. or loss. If a hedge of a firm commitment subsequently results in the
The carrying amounts of financial assets not carried at fair recognition of a non-financial asset, the gains and losses recognised
value through profit or loss are tested for impairment at each bal- directly in equity are included in the initial carrying amount of the
ance sheet date and whenever there are indications of impairment. asset (basis adjustment).
The amount of any impairment loss is determined by comparing the Net investment hedges in foreign entities are treated in the
carrying amount and the fair value. If there are objective indications same way as cash flow hedges. The gain or loss from the effective
of impairment, an impairment loss is recognised in the income portion of the hedge is recognised in other comprehensive income,
statement under other operating expenses or net financial income/ whilst the gain or loss attributable to the ineffective portion is rec-
net finance costs. Impairment losses are reversed if there are object ognised directly in income. The gains or losses recognised in other
ive reasons arising after the balance sheet date indicating that the comprehensive income remain there until the disposal or partial
reasons for impairment no longer exist. The increased carrying disposal of the net investment. Detailed information on hedging
amount resulting from the reversal of the impairment loss may not transactions can be found in note45.3.
exceed the carrying amount that would have been determined (net Regular way purchases and sales of financial assets are recog-
of amortisation or depreciation) if the impairment loss had not been nised at the settlement date, with the exception of held-for-trading
recognised. Impairment losses are recognised within the Group if instruments, particularly derivatives. A financial asset is derecog-
the debtor is experiencing significant financial difficulties, it is nised if the rights to receive the cash flows from the asset have ex-
highly probable that the debtor will be the subject of bankruptcy pired. Upon transfer of a financial asset, a review is made under the
proceedings, there are material changes in the issuers technological, requirements of IAS39 governing disposal as to whether the asset
economic, legal or market environment, or the fair value of a finan- should be derecognised. A disposal gain/loss arises upon disposal.
cial instrument falls below its amortised cost for a prolonged period. The remeasurement gains/losses recognised in other comprehensive
income in prior periods must be reversed as at the disposal date.
Financial liabilities are derecognised if the payment obligations aris-
ing from them have expired.
Investment property held for sale are reported in profit or loss from discontinued oper-
In accordance with IAS40, investment property is property held to ations. This also applies to the profit or loss from operations and the
earn rentals or for capital appreciation or both, rather than for use gain or loss on disposal of these components of an entity.
in the supply of services, for administrative purposes or for sale in
the normal course of the companys business. It is measured in ac- Cash and cash equivalents
cordance with the cost model. Depreciable investment property is Cash and cash equivalents comprise cash, demand deposits and
depreciated over a period of between 20 and 50 years using the other short-term liquid financial assets with an original maturity of
straight-line method. The fair value is determined on the basis of up to three months; they are carried at their principal amount.
expert opinions. Impairment losses are recognised in accordance Overdraft facilities used are recognised in the balance sheet as
with the principles described in the section headed Impairment. amounts due to banks.
Inventories Non-controlling interests

Inventories are assets that are held for sale in the ordinary course of Non-controlling interests are the proportionate minority interests
business, are in the process of production, or are consumed in the in the equity of subsidiaries and are recognised at their carrying
production process or in the rendering of services. They are meas- amount. If an interest is acquired from, or sold to, other share
ured at the lower of cost or net realisable value. Valuation allow- holders without this impacting the existing control relationship, this
ances are charged for obsolete inventories and slow-moving goods. is presented as an equity transaction. The difference between the
proportionate net assets acquired from, or sold to, another share-
Government grants holder/other shareholders and the purchase price is recognised in
In accordance with IAS20, government grants are recognised at other comprehensive income. If non-controlling interests are in-
their fair value only when there is reasonable assurance that the creased by the proportionate net assets, no goodwill is allocated to
conditions attaching to them will be complied with and that the the proportionate net assets.
grants will be received. The grants are reported in the income state-
ment and are generally recognised as income over the periods in Share-based payments to executives
which the costs they are intended to compensate are incurred. Equity-settled share-based payment transactions are measured at
Where the grants relate to the purchase or production of assets, they fair value at the grant date. The fair value of the obligation is recog-
are reported as deferred income and recognised in the income state- nised in staff costs over the vesting period. The fair value of equity-
ment over the useful lives of the assets. settled share-based payment transactions is determined using inter
nationally recognised valuation techniques.
Assets held for sale and liabilities associated with assets held for sale Stock appreciation rights are measured on the basis of an op-
Assets held for sale are assets available for sale in their present con- tion pricing model in accordance with IFRS2. The stock appreci
dition and whose sale is highly probable. The sale must be expected ation rights are measured on each reporting date and on the settle-
to qualify for recognition as a completed sale within one year of the ment date. The amount determined for stock appreciation rights
date of classification. Assets held for sale may consist of individual that will probably be exercised is recognised pro rata in income
non-current assets, groups of assets (disposal groups), components under staff costs to reflect the services rendered as consideration
of an entity or a subsidiary acquired exclusively for resale (discon- during the vesting period (lock-up period). A provision is recog-
tinued operations). Liabilities intended to be disposed of together nised for the same amount.
with the assets in a single transaction form part of the disposal
group or discontinued operation and are also reported separately Retirement plans
as liabilities associated with assets held for sale. Assets held for sale There are arrangements (plans) in many countries under which the
are no longer depreciated or amortised, but are recognised at the Group grants post-employment benefits to its hourly workers and
lower of their fair value less costs to sell and the carrying amount. salaried employees. These benefits include pensions, lump-sum
Gains and losses arising from the remeasurement of individual payments on retirement and other post-employment benefits and
non-current assets or disposal groups classified as held for sale are are referred to as retirement benefits, pensions and similar benefits,
reported in profit or loss from continuing operations until the final or simply pensions, in these disclosures. A distinction must be made
date of disposal. Gains and losses arising from the measurement at between defined benefit and defined contribution plans.
fair value less costs to sell of discontinued operations classified as
117
The Groups defined benefit retirement plans Defined contribution retirement plans for the groups
Defined benefit obligations are measured using the projected unit hourly workers and salaried employees
credit method prescribed by IAS19. This involves making certain Defined contribution retirement plans are in place for the Groups
actuarial assumptions. Most of the defined benefit retirement plans hourly workers and salaried employees, particularly in the UK, the
are at least partly funded via external plan assets. The remaining net USA and the Netherlands. The contributions to these plans are also
liabilities are funded by provisions for pensions and similar obliga- reported in staff costs.
tions; net assets are presented separately as pension assets. Where This also includes contributions to certain multi-employer
necessary, an asset ceiling must be applied when recognising pen- plans which are basically defined benefit plans, especially in the USA
sion assets. With regard to the cost components, the service cost is and the Netherlands. However, the relevant institutions do not pro-
recognised in staff costs, the net interest cost in net financial in- vide the participating companies with sufficient information to use
come/net finance costs and any remeasurement outside profit and defined benefit accounting. The plans are therefore accounted for
loss in other comprehensive income. Any rights to reimbursement as if they were defined contribution plans.
are reported separately in financial assets. Regarding these multi-employer plans in the USA, contribu-
tions are made based on collective agreements between the employer
Defined contribution retirement plans for civil servant and the local union. There is no employer liability to any of the plans
employees in Germany beyond the normal bargained contribution rates except in the event
In accordance with statutory provisions, Deutsche Post AG pays of a withdrawal meeting specified criteria. Such a withdrawal could
contributions to retirement plans in Germany which are defined involve liability for other entities obligations as governed by US
contribution retirement plans for the company. These contributions federal law. The expected employer contributions to the funds for
are recognised in staff costs. 2017 are 40million (actual employer contributions in the report-
Under the provisions of the Gesetz zum Personalrecht der ing year: 35million, in the previous year: 32million). Some of
Beschftigten der frheren Deutschen Bundespost (PostPersRG the plans in which Deutsche Post DHL Group participates are
Former Deutsche Bundespost Employees Act), Deutsche Post AG underfunded according to information provided by the funds.
provides benefit and assistance payments through the Postbeamten There is no information from the plans that would indicate any
versorgungskasse (PVK) (postal civil servant pension fund) at the change from the contribution rates set by current collective agree-
Bundesanstalt fr Post und Telekommunikation (BAnstPT German ments. Deutsche Post DHL Group does not represent a significant
federal post and telecommunications agency) to retired employees level to any fund in terms of contributions, with the exception of
or their surviving dependants who are entitled to benefits on the one fund where the Group represents the largest employer in terms
basis of a civil service appointment. The amount of Deutsche Post AGs of contributions.
payment obligations is governed by section 16 of the PostPersRG. Regarding one multi-employer plan in the Netherlands, cost
This Act obliges Deutsche Post AG to pay into the PVK an annual coverage-based contribution rates are set annually by the board of
contribution of 33% of the gross compensation of its active civil the pension fund with the involvement of the Central Bank of the
servants and the notional gross compensation of civil servants on Netherlands; the individual contribution rates are equal for all par-
leave of absence who are eligible for a pension. ticipating employers and employees. There is no liability for the
Under section 16 of the PostPersRG, the federal government employer towards the fund beyond the contributions set, even in
makes good the difference between the current payment obligations the case of withdrawal or obligations not met by other entities. Any
of the PVK on the one hand, and the funding companies current subsequent underfunding ultimately results in the rights of mem-
contributions or other return on assets on the other, and guarantees bers being cut and/or no indexation of their rights. The expected
that the PVK is able at all times to meet the obligations it has as- employer contributions to the fund for 2017 are 21million (actual
sumed in respect of its funding companies. Insofar as the federal employer contributions in the reporting year: 21million, in the
government makes payments to the PVK under the terms of this previous year: 21million). As at 31December2016, the coverage
guarantee, it cannot claim reimbursement from Deutsche Post AG. degree of plan funding was higher than 100%, but lower than 105%
(a required minimum), 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 Financial liabilities

Other provisions are recognised for all legal or constructive obliga- On initial recognition, financial liabilities are carried at fair value
tions to third parties existing at the balance sheet date that have less transaction costs. The price determined on a price-efficient and
arisen as a result of past events, that are expected to result in an liquid market or a fair value determined using the treasury risk
outflow of future economic benefits and whose amount can be management system deployed within the Group is taken as the fair
measured reliably. They represent uncertain obligations that are value. In subsequent periods the financial liabilities are measured
carried at the best estimate of the expenditure required to settle the at amortised cost. Any differences between the amount received and
obligation. Provisions with more than one year to maturity are dis- the amount repayable are recognised in income over the term of the
counted at market rates of interest that reflect the region and time loan using the effective interest method.
to settlement of the obligation. The discount rates used in the finan-
cial year were between 0.0% and 11.00% (previous year: 0.0% and Convertible bond on Deutsche Post AG shares
13.75%). The effects arising from changes in interest rates are recog- The convertible bond on Deutsche Post AG shares is split into an
nised in net financial income/net finance cost. equity and a debt component, in line with the contractual arrange-
Provisions for restructurings are only established in accord- ments. The debt component, less the transaction costs, is reported
ance with the aforementioned criteria for recognition if a detailed, under financial liabilities (bonds), with interest added up to the i ssue
formal restructuring plan has been drawn up and communicated amount over the term of the bond using the effective interest
to those affected. method (unwinding of discount). The value of the call option, which
The technical reserves (insurance) consist mainly of outstand- allows Deutsche Post AG to redeem the bond early if a specified
ing loss reserves and IBNR (incurred but not reported claims) re- share price is reached, is attributed to the debt component in accord-
serves. Outstanding loss reserves represent estimates of obligations ance with IAS32.31. The conversion right is classified as an equity
in respect of actual claims or known incidents expected to give rise derivative and is reported in capital reserves. The carrying amount
to claims, which have been reported to the company but which have is calculated by assigning to the conversion right the residual value
yet to be finalised and presented for payment. Outstanding loss re- that results from deducting the amount calculated separately for the
serves are based on individual claim valuations carried out by the debt component from the fair value of the instrument as a whole.
company or its ceding insurers. IBNR reserves represent estimates The transaction costs are deducted on a proportionate basis.
of obligations in respect of incidents taking place on or before the
balance sheet date that have not been reported to the company. Such Liabilities
reserves also include provisions for potential errors in settling out- Trade payables and other liabilities are carried at amortised cost.
standing loss reserves. The company carries out its own assessment The fair value of the liabilities corresponds more or less to their
of ultimate loss liabilities using actuarial methods and also commis- carrying amount.
sions an independent actuarial study of these each year in order to
verify the reasonableness of its estimates. Deferred taxes
In accordance with IAS12, deferred taxes are recognised for tempor
ary 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 recoverability of the tax reduc-
tion claims is assessed on the basis of each entitys earnings projec-
tions, which are derived from the Group projections and take any
tax adjustments into account. The planning horizon is five years.
119
In compliance with IAS12.24 (b) and IAS12.15 (b), deferred tax Estimates and assessments made by management
assets or liabilities were only recognised for temporary differences The preparation of the consolidated financial statements in accord-
between the carrying amounts in the IFRS financial statements and ance with IFRSs requires management to make certain assumptions
in the tax accounts of Deutsche Post AG where the differences arose and estimates that may affect the amounts of the assets and liabil
after 1January1995. No deferred tax assets or liabilities are recog- ities included in the balance sheet, the amounts of income and ex-
nised for temporary differences resulting from initial differences in penses, and the disclosures relating to contingent liabilities. Ex
the opening tax accounts of Deutsche Post AG as at 1January1995. amples of the main areas where assumptions, estimates and the
Further details on deferred taxes from tax loss carryforwards can exercise of management judgement occur are the recognition of
be found in note27. provisions for pensions and similar obligations, the calculation of
In accordance with IAS12, deferred tax assets and liabilities are discounted cash flows for impairment testing and purchase price
calculated using the tax rates applicable in the individual countries allocations, taxes and legal proceedings.
at the balance sheet date or announced for the time when the de- Disclosures regarding the assumptions made in connection
ferred tax assets and liabilities are realised. The tax rate applied to with the Groups defined benefit retirement plans can be found in
German Group companies is unchanged at 30.2%. It comprises the note39.
corporation tax rate plus the solidarity surcharge, as well as a mu- The Group has operating activities around the globe and is sub-
nicipal trade tax rate that is calculated as the average of the different ject to local tax laws. Management can exercise judgement when
municipal trade tax rates. Foreign Group companies use their indi- calculating the amounts of current and deferred taxes in the relevant
vidual income tax rates to calculate deferred tax items. The income countries. Although management believes that it has made a reason-
tax rates applied for foreign companies amount to up to 38% (pre- able estimate relating to tax matters that are inherently uncertain,
vious year: 38%). there can be no guarantee that the actual outcome of these uncertain
tax matters will correspond exactly to the original estimate made.
Income taxes Any difference between actual events and the estimate made could
Income tax assets and liabilities are measured at the amounts for have an effect on tax liabilities and deferred taxes in the period in
which repayments from, or payments to, the tax authorities are ex- which the matter is finally decided. The amount recognised for de-
pected to be received or made. Tax-related fines are recognised in ferred tax assets could be reduced if the estimates of planned taxable
income taxes if they are included in the calculation of income tax income or changes to current tax laws restrict the extent to which
liabilities, due to their inclusion in the tax base and/or tax rate. future tax benefits can be realised.
Goodwill is regularly reported in the Groups balance sheet as
Contingent liabilities a consequence of business combinations. When an acquisition is
Contingent liabilities represent possible obligations whose existence initially recognised in the consolidated financial statements, all
will be confirmed only by the occurrence, or non-occurrence, of identifiable assets, liabilities and contingent liabilities are measured
one or more uncertain future events not wholly within the control at their fair values at the date of acquisition. One of the most import
of the enterprise. Contingent liabilities also include certain obliga- ant estimates this requires is the determination of the fair values of
tions that will probably not lead to an outflow of resources embody these assets and liabilities at the date of acquisition. Land, buildings
ing economic benefits, or where the amount of the outflow of re- and office equipment are generally valued by independent experts,
sources embodying economic benefits cannot be measured with whilst securities for which there is an active market are recognised
sufficient reliability. In accordance with IAS37, contingent liabilities at the quoted exchange price. If intangible assets are identified in
are not recognised as liabilities, note46. the course of an acquisition, their measurement can be based on the
opinion of an independent external expert valuer, depending on the
8 Exercise of judgement in applying the accounting policies type of intangible asset and the complexity involved in determining
The preparation of IFRS-compliant consolidated financial state- its fair value. The independent expert determines the fair value us-
ments requires the exercise of judgement by management. All esti- ing appropriate valuation techniques, normally based on expected
mates are reassessed on an ongoing basis and are based on historical future cash flows. In addition to the assumptions about the devel-
experience and expectations with regard to future events that appear opment of future cash flows, these valuations are also significantly
reasonable under the given circumstances. For example, this applies affected by the discount rates used.
to assets held for sale. In this case, it must be determined whether
the assets are available for sale in their present condition and
whether their sale is highly probable. If this is the case, the assets
and the associated liabilities are reported and measured as assets
held for sale and liabilities associated with assets held for sale.
Impairment testing for goodwill is based on assumptions about 9 Consolidation methods

the future. The Group carries out these tests annually and also The consolidated financial statements are based on the IFRS finan-
whenever there are indications that goodwill has become impaired. cial statements of Deutsche Post AG and the subsidiaries, joint op-
The recoverable amount of the CGU must then be calculated. This erations and investments accounted for using the equity method
amount is the higher of fair value less costs to sell and value in use. included in the consolidated financial statements and prepared in
Determining value in use requires assumptions and estimates to be accordance with uniform accounting policies as at 31Decem-
made with respect to forecasted future cash flows and the discount ber2016.
rate applied. Although management believes that the assumptions Acquisition accounting for subsidiaries included in the consoli
made for the purpose of calculating the recoverable amount are dated financial statements uses the purchase method of accounting.
appropriate, possible unforeseeable changes in these assumptions The cost of the acquisition corresponds to the fair value of the assets
e.g., a reduction in the EBIT margin, an increase in the cost of capital given up, the equity instruments issued and the liabilities assumed
or a decline in the long-term growth rate could result in an im- at the transaction date. Acquisition-related costs are recognised as
pairment loss that could negatively affect the Groups net assets, expenses. Contingent consideration is recognised at fair value at the
financial position and results of operations. date of initial consolidation.
Pending legal proceedings in which the Group is involved are The assets and liabilities, as well as income and expenses, of
disclosed in note48. The outcome of these proceedings could have joint operations are included in the consolidated financial state-
a significant effect on the net assets, financial position and results ments in proportion to the interest held in these operations, in
of operations of the Group. Management regularly analyses the inaccordance with IFRS11. Accounting for the joint operators share
formation currently available about these proceedings and recog- of the assets and liabilities, as well as recognition and measurement
nises provisions for probable obligations including estimated legal of goodwill, use the same methods as applied to the consolidation
costs. Internal and external legal advisers participate in making this of subsidiaries.
assessment. In deciding on the necessity for a provision, manage- In accordance with IAS28, joint ventures and companies on
ment takes into account the probability of an unfavourable outcome which the parent can exercise significant influence (associates) are
and whether the amount of the obligation can be estimated with accounted for in accordance with the equity method using the pur-
sufficient reliability. The fact that an action has been launched or a chase method of accounting. Any goodwill is recognised under
claim asserted against the Group, or that a legal dispute has been investments accounted for using the equity method.
disclosed in the notes, does not necessarily mean that a provision is In the case of step acquisitions, the equity portion previously
recognised for the associated risk. held is remeasured at the fair value applicable on the date of acqui-
All assumptions and estimates are based on the circumstances sition and the resulting gain or loss recognised in profit or loss.
prevailing and assessments made at the balance sheet date. For the Intra-group revenue, other operating income, and expenses as
purpose of estimating the future development of the business, a well as receivables, liabilities and provisions between companies
realistic assessment was also made at that date of the economic en- that are consolidated fully or on a proportionate basis are elim
vironment likely to apply in the future to the different sectors and inated. Intercompany profits or losses from intra-group deliveries
regions in which the Group operates. In the event of developments and services not realised by sale to third parties are eliminated. Un-
in this general environment that diverge from the assumptions realised gains and losses from business transactions with invest-
made, the actual amounts may differ from the estimated amounts. ments accounted for using the equity method are eliminated on a
In such cases, the assumptions made and, where necessary, the proportionate basis.
carrying amounts of the relevant assets and liabilities are adjusted
accordingly.
At the date of preparation of the consolidated financial state-
ments, there is no indication that any significant change in the as-
sumptions 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 financial year 2017 to the carrying
amounts of the assets and liabilities recognised in the financial state-
ments.
Consolidated Financial Statements NOTES Basis of preparation Segment reporting
121
SEGMENT REPORTING
10 Segment reporting
Segments by division
m Global Forwarding, Corporate Center/
1Jan. to 31Dec. 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
External revenue 15,996 16,686 13,283 13,670 14,183 13,027 15,681 13,828 87 123 0 0 59,230 57,334
Internal revenue 135 111 378 360 707 710 110 129 1,182 1,156 2,512 2,466 0 0
Total revenue 16,131 16,797 13,661 14,030 14,890 13,737 15,791 13,957 1,269 1,279 2,512 2,466 59,230 57,334
Profit/loss from
operating activities
(EBIT) 1,103 1,443 1,391 1,548 181 287 449 572 351 359 0 0 2,411 3,491
of which net
income/loss from
investments
accounted for
using the equity
method 0 1 1 1 1 0 2 2 0 0 0 0 2 4
Segment assets2 5,532 6,309 9,337 9,895 7,998 7,798 6,418 6,253 1,571 1,557 83 79 30,773 31,733
of whichinvest-
ments accounted
for using the equity
method 1 20 46 48 25 25 3 3 0 0 1 1 76 97
Segment liabilities2 2,697 3,035 3,508 3,579 3,141 2,930 3,372 3,290 1,496 1,486 59 58 14,155 14,262
Net segment
assets/liabilities2 2,835 3,274 5,829 6,316 4,857 4,868 3,046 2,963 75 71 24 21 16,618 17,471
Capex 533 590 856 902 123 55 318 328 192 199 2 0 2,024 2,074
Depreciation
andamortisa-
tion 318 333 391 442 86 79 306 291 229 201 0 0 1,330 1,346
Impairment
losses 1 1 13 27 310 0 7 3 4 0 0 0 335 31
Total depreciation,
amortisation and
impairment losses 319 334 404 469 396 79 313 294 233 201 0 0 1,665 1,377
Other non-cash
income and
expenses2 506 428 240 308 261 93 256 240 69 102 1 1 1,333 1,170
Employees 169,430 171,099 79,318 83,232 44,588 43,060 145,827 145,788 10,747 10,811 0 0 449,910 453,990
1
Including rounding.
2
Prior-period amounts adjusted.
Adjustment of prior-period amounts

Segment reporting has been adapted in line with internal reporting.
The prior-period amounts have been adjusted accordingly.
The employee numbers are expressed as average numbers of
FTEs.
Information about geographical regions

m Europe
Germany (excludingGermany) Americas Asia Pacific Other regions Group
1Jan. to 31Dec. 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
External revenue 17,493 17,910 19,013 17,006 10,294 10,171 10,063 10,003 2,367 2,244 59,230 57,334
Non-current assets 5,298 5,498 7,264 7,328 3,876 4,279 3,553 3,562 390 377 20,381 21,044
Capex 911 940 574 512 267 422 223 165 49 35 2,024 2,074
10.1 Segment reporting disclosures EXPRESS

Deutsche Post DHL Group reports four operating segments; these The Express division offers time-definite courier and express ser-
are managed independently by the responsible segment manage- vices to business and private customers. The division comprises the
ment bodies in line with the products and services offered and the Europe, Americas, Asia Pacific and MEA (Middle East and Africa)
brands, distribution channels and customer profiles involved. Com- regions.
ponents of the entity are defined as a segment on the basis of the
existence of segment managers with bottom-line responsibility who GLOBAL FORWARDING, FREIGHT
report directly to Deutsche Post DHL Groups top management. The activities of the Global Forwarding, Freight division comprise
External revenue is the revenue generated by the divisions from the transport of goods by rail, road, air and sea. The divisions busi-
non-Group third parties. Internal revenue is revenue generated with ness units are Global Forwarding and Freight.
other divisions. If comparable external market prices exist for ser-
vices or products offered internally within the Group, these market SUPPLY CHAIN
prices or market-oriented prices are used as transfer prices (arms The Supply Chain division delivers customised supply chain solu-
length principle). The transfer prices for services for which no ex- tions to its customers based on globally standardised modular com-
ternal market exists are generally based on incremental costs. ponents including warehousing, transport and value-added services.
The expenses for IT services provided in the IT service centres
are allocated to the divisions by their origin. The additional costs In addition to the reportable segments given above, segment report-
resulting from Deutsche Post AGs universal postal service obliga- ing comprises the following categories:
tion (nationwide retail outlet network, delivery every working day),
and from its obligation to assume the compensation structure as the Corporate Center/Other
legal successor to Deutsche Bundespost, are allocated to the PeP Corporate Center/Other comprises Global Business Services (GBS),
division. the Corporate Center, non-operating activities and other business
As part of the central management of currency risk, Corporate activities. The profit/loss generated by GBS is allocated to the oper-
Treasury is responsible for deciding on the central absorption of ating segments, whilst its assets and liabilities remain with GBS
fluctuations between projected and actual exchange rates on the (asymmetrical allocation).
basis of division-specific agreements.
In keeping with internal reporting, capital expenditure (capex) Consolidation
is disclosed. Additions to intangible assets net of goodwill and to The data for the divisions are presented following consolidation of
property, plant and equipment are reported in the capex figure. De- interdivisional transactions. The transactions between the divisions
preciation, amortisation and impairment losses relate to the segment are eliminated in the Consolidation column.
assets allocated to the individual divisions. Other non-cash expenses
relate primarily to expenses from the recognition of provisions. 10.3 Information about geographical regions
The profitability of the Groups operating divisions is measured The main geographical regions in which the Group is active are
using profit/loss from operating activities (EBIT). Germany, Europe, the Americas, Asia Pacific and Other regions.
External revenue, non-current assets and capex are disclosed for
10.2 Segments by division these regions. Revenue, assets and capex are allocated to the indi-
Reflecting the Groups predominant organisational structure, the vidual regions on the basis of the domicile of the reporting entity.
primary reporting format is based on the divisions. The Group dis- Non-current assets primarily comprise intangible assets, property,
tinguishes between the following divisions: plant and equipment and other non-current assets.
POST - ECOMMERCE - PARCEL

The Post- eCommerce- Parcel (PeP) division handles both domes-
tic and international mail and is a specialist in dialogue marketing,
nationwide press distribution services and all the electronic services
associated with mail delivery. The division offers parcel and e-com-
merce services not only in Germany, but worldwide. It is divided
into two business units: Post, and eCommerce- Parcel.
Consolidated Financial Statements NOTES Segment reporting
123
10.4 Reconciliation of segment amounts
Reconciliation of segment amounts to consolidated amounts
Reconciliation to the income statement

m Total for reportable Corporate Center/ Reconciliation to Group/ Consolidated
segments Other Consolidation1 amount
2015 2016 2015 2016 2015 2016 2015 2016

External revenue 59,143 57,211 87 123 0 0 59,230 57,334
Internal revenue 1,330 1,310 1,182 1,156 2,512 2,466 0 0
Total revenue 60,473 58,521 1,269 1,279 2,512 2,466 59,230 57,334
Other operating income 2,333 2,097 1,340 1,454 1,279 1,395 2,394 2,156
Materials expense 34,583 32,046 1,287 1,330 2,700 2,756 33,170 30,620
Staff costs 18,749 18,689 902 917 11 14 19,640 19,592
Depreciation, amortisation and impairment
losses 1,432 1,176 233 201 0 0 1,665 1,377
Other operating expenses 5,282 4,861 538 644 1,080 1,091 4,740 4,414
Net income from investments accounted for
using the equity method 2 4 0 0 0 0 2 4
Profit/loss from operating activities (EBIT) 2,762 3,850 351 359 0 0 2,411 3,491
Profit before income taxes 2,057 3,132
of which attributable to
Deutsche Post AG shareholders 1,540 2,639
Non-controlling interests 179 142
1
Including rounding.
The following table shows the reconciliation of Deutsche Post DHL The following table shows the reconciliation of Deutsche Post DHL
Groups total assets to the segment assets. Financial assets, income Groups total liabilities to the segment liabilities. Components of the
tax assets, deferred taxes, cash and cash equivalents and other asset provisions and liabilities as well as income tax liabilities and de-
components are deducted. ferred taxes are deducted.
Reconciliation to segment assets Reconciliation to segment liabilities

m m
2015 2016 2015 2016
Total assets 37,870 38,295 Total equity and liabilities 37,870 38,295
Investment property 25 23 Equity 11,295 11,350
Non-current financial assets1 931 488 Consolidated liabilities 26,575 26,945
Other non-current assets 151 143 Non-current provisions1 6,625 5,990
Deferred tax assets 2,007 2,192 Non-current liabilities1 4,719 4,622
Income tax assets 197 232 Current provisions1 132 98
Receivables and other current assets1 10 16 Current liabilities1 944 1,973
Current financial assets1 168 361 Segment liabilities1 14,155 14,262
Cash and cash equivalents 3,608 3,107 of which Corporate Center/Other 1,496 1,486
Segment assets1 30,773 31,733 Total for reportable segments 12,718 12,834
of which Corporate Center/Other 1,571 1,557 Consolidation2 59 58
Total for reportable segments 29,285 30,255
Consolidation2 83 79
1
2
Including rounding.
1
2
Including rounding.
INCOME STATEMENT DISCLOSURES Of the gains on the disposal of non-current assets, 63million re-
lates to the sale of the remaining shares in the Kings Cross com
11 Revenue panies in the UK. The prior-year disposal gains included 99million
Revenue decreased by 1,896million (3.2%) from 59,230million from the sale of equity interests in Sinotrans Ltd., China, and
to 57,334million. The change in revenue was due to the following 74million from the sale of shares in the Kings Cross companies.
factors: The decline in other operating income is also attributable to the
change in the exchange rate of the euro and the prior-year reversal
Factors affecting revenue decrease, 2016 of impairment losses on assets in the US express business in the
m amount of 90million.
Subsidies relate to grants for the purchase or production of
Organic growth 414 assets. The grants are reported as deferred income and recognised
Portfolio changes1 12 in the income statement over the useful lives of the assets.
Currency translation effects 1,494 Miscellaneous other operating income includes a large number
Total 1,896
of smaller individual items.
1
Note 2.
13 Materials expense
Negative organic growth is attributable, in particular, to the contract m
with the UK National Health Service (NHS) which was modified in 2015 2016
the fourth quarter of 2015. The changed recognition of revenue and
Cost of raw materials, consumables and supplies,
expenses resulted in a decrease in revenue of 1,435million. and of goods purchased and held for resale
As in the prior period, there was no revenue in financial year Aircraft fuel 1,047 885
2016 that was generated on the basis of barter transactions. Fuel 755 708
Packaging material 421 419
The further classification of revenue by division and the allo-
Goods purchased and held for resale 1,761 350
cation of revenue to geographical regions are presented in the seg-
Spare parts and repair materials 110 110
ment reporting.
Office supplies 60 65
12 Other operating income Other expenses

136
4,290
186
2,723
Cost of purchased services

m Transport costs 19,754 18,752
2015 2016
Cost of temporary staff and services 2,521 2,490
Income from the reversal of provisions 215 231 Expenses from non-cancellable leases 2,096 2,143
Income from currency translation differences 280 222 Maintenance costs 1,117 1,158
Gains on disposal of non-current assets 338 205 Commissions paid 557 570
Insurance income 184 202 IT services 612 538
Income from fees and reimbursements 145 136 Expenses from cancellable leases 493 492
Income from work performed and capitalised 122 132 Other lease expenses (incidental expenses) 393 384
Commission income 112 122 Other purchased services 1,337 1,370
Income from the remeasurement of liabilities 76 122 28,880 27,897
Reversals of impairment losses on receivables Materials expense 33,170 30,620
andother assets 217 120
Rental and lease income 111 99
Income from derivatives 33 68
Income from loss compensation 25 44 The reduction in goods purchased and held for resale is largely at-
Income from prior-period billings 30 31 tributable to the October2015 revision of the terms of the procure-
Income from the derecognition of liabilities 81 26 ment and logistics contract with the UK National Health Service
Recoveries on receivables previously written off 10 13
(NHS), United Kingdom. Other factors contributing to the reduction
Subsidies 14 11
in materials expenses were currency effects and lower transport and
Miscellaneous 401 372
fuel costs.
Other operating income 2,394 2,156
Other expenses include a large number of individual items.
Consolidated Financial Statements NOTES Income statement disclosures
125
14 Staff costs/employees The average number of Group employees in the year under
review, broken down by employee group, was as follows:
m
2015 2016 Employees (annual average)
Wages, salaries and compensation 15,723 16,092 Headcount
of which expenses under Share Matching Scheme1 99 95 2015 2016
expenses under Performance Share Plan2 10 17 Hourly workers and salaried employees 451,882 459,990
expenses under SAR Plan 2006/LTIP3 33 94 Civil servants 35,669 32,976
Social security contributions 2,300 2,324 Trainees 5,314 5,493
Retirement benefit expenses 1,031 607 Employees 492,865 498,459
Expenses for other employee benefits 586 569
Staff costs 19,640 19,592
1
Equity-settled and cash-settled. The employees of companies acquired or disposed of during the year
Equity-settled. under review were included rateably. The average number of full-
2
3
Cash-settled.
time equivalents during the year was 453,990 (previous year:
449,910), and the number of full-time equivalents (excluding train-
Staff costs relate mainly to wages, salaries and compensation, as well ees) as at 31December2016 amounted to 459,262 (previous year:
as all other benefits paid to employees of the Group for their services 450,508). The number of employees at joint operations included in
in the year under review. the consolidated financial statements amounted to 217 on a propor-
Assuming that rights to shares are converted in full in the re- tionate basis (previous year: 208).
spective subsequent year, a maximum of 67million of the ex-
penses under the Share Matching Scheme in the reporting year 15 Depreciation, amortisation and impairment losses
(previous year: 72million) is attributable to cash-settled share-
based payments. The obligation at the balance sheet date was 60mil m
lion (previous year: 56million). In addition, expenses of 28mil- 2015 2016
lion (previous year: 27million) were incurred for equity-settled Amortisation of and impairment losses on intangible
share-based payments. assets, excluding impairment of goodwill 578 247
Social security contributions relate, in particular, to statutory Depreciation of and impairment losses on property,
social security contributions paid by employers. plant and equipment
Land and buildings
Retirement benefit expenses include the service cost related to (includingleaseholdimprovements) 179 176
the defined benefit retirement plans, note39. These expenses also Technical equipment and machinery 268 290
include contributions to defined contribution retirement plans for Other equipment, operating and office
civil servants in Germany in the amount of 493million (previous equipment 219 236
year: 516million), as well as for the Groups hourly workers and Vehicle fleet, transport equipment 233 200
Aircraft 187 228
salaried employees, totalling 305million (previous year: 317mil-
Total depreciation and impairment losses
lion), note7. For the changes in retirement benefit expenses, see onproperty, plant and equipment 1,086 1,130
note39 in particular. Depreciation of and impairment losses
oninvestment property 1 0
Impairment of goodwill 0 0
Depreciation, amortisation and impairment
losses 1,665 1,377
Depreciation, amortisation and impairment losses decreased by

288million year-on-year to 1,377million. This was attributable
to the impairment losses on the NFE transformation programme of
310million included in this item in the prior year.
The impairment losses are attributable to the segments as 16 Other operating expenses
follows:
m
Impairment losses 2015 2016
m Expenses for advertising and public relations 429 385
2015 2016 Cost of purchased cleaning and security services 357 360
Insurance costs 335 331
Post- eCommerce- Parcel
Travel and training costs 348 315
Property, plant and equipment 1 1
Warranty expenses, refunds and compensation
Express payments 266 301
Property, plant and equipment 13 27 Other business taxes 231 267
Telecommunication costs 237 230
Global Forwarding, Freight
Software 310 0 Write-downs of current assets 302 223
Currency translation expenses 267 222
Supply Chain
Office supplies 190 167
Software 3 0
Entertainment and corporate hospitality expenses 169 166
Property, plant and equipment 4 3
Consulting costs (including tax advice) 179 134
Corporate Center/Other Services provided by the Bundesanstalt fr Post
Property, plant and equipment 3 0 und Telekommunikation (German federal post
Investment property 1 0 andtelecommunications agency) 148 126
Impairment losses 335 31 Customs clearance-related charges 114 115
Contributions and fees 95 98
Voluntary social benefits 83 81
Losses on disposal of assets 46 76
Impairment losses in the financial year were recognised mainly for Legal costs 107 75
the Express division and, as in the previous year, related to aircraft Expenses from derivatives 120 65
and aircraft parts in particular. Commissions paid 64 63

Monetary transaction costs 47 48
Audit costs 38 32
Expenses from prior-period billings 14 27
Donations 24 24
Miscellaneous 530 483
Other operating expenses 4,740 4,414
Taxes other than income taxes are either recognised in the related
expense item or, if no specific allocation is possible, in other oper-
ating expenses.
Miscellaneous other operating expenses include a large num-
ber of smaller individual items.
Consolidated Financial Statements NOTES Income statement disclosures
127
17 Net finance costs Reconciliation

m
m 2015 2016
2015 2016 Profit before income taxes 2,057 3,132
Expected income taxes 621 946
Financial income
Deferred tax assets not recognised for initial
Interest income 46 54
differences 5 12
Income from other equity investments and financial
Deferred tax assets of German Group companies
assets 4 1
not recognised for tax loss carryforwards and
Other financial income 44 35 temporary differences 349 569
94 90 Deferred tax assets of foreign Group companies
notrecognised for tax loss carryforwards and
Finance costs
temporary differences 90 168
Interest expenses 335 302
Effect of current taxes from previous years 10 26
of which unwinding of discounts for net pension
provisions and other provisions 189 156 Tax-exempt income and non-deductible expenses 204 205
Other finance costs 75 82 Differences in tax rates at foreign companies 63 77
410 384 Income taxes 338 351
Foreign currency result 38 65
The difference from deferred tax assets not recognised for initial
Interest income and interest expenses result from financial assets and differences is due to differences between the carrying amounts in
liabilities that were not measured at fair value through profit or loss. the opening tax accounts of Deutsche Post AG and the carrying
Information on the unwinding of discounted net pension pro- amounts in the IFRS financial statements as at 1January1995 (initial
visions can be found in note39. differences). In accordance with IAS12.15 (b) and IAS12.24 (b), the
Group did not recognise any deferred tax assets in respect of these
18 Income taxes temporary differences, which related mainly to property, plant and
equipment as well as to provisions for pensions and similar obliga-
m tions. The remaining temporary differences between the original
2015 2016 IFRS carrying amounts, net of accumulated depreciation or amorti
Current income tax expense 625 607 sation, and the tax base amounted to 295million as at 31Decem-
Current recoverable income tax 63 40 ber2016 (previous year: 334million).
562 567 The effects from deferred tax assets of German Group com
Deferred tax income from temporary differences 75 84 panies not recognised for tax loss carryforwards and temporary
Deferred tax income from tax loss carryforwards 149 132
differences relate primarily to Deutsche Post AG and members of its
224 216
consolidated tax group. Effects from deferred tax assets of foreign
companies not recognised for tax loss carryforwards and temporary
differences relate primarily to the Americas region.
679million (previous year: 252million) of the effects from
The reconciliation to the effective income tax expense is shown deferred tax assets not recognised for tax loss carryforwards and
below, based on consolidated net profit before income taxes and the temporary differences relates to the reduction of the effective in-
expected income tax expense: come tax expense due to the utilisation of tax loss carryforwards
and temporary differences, for which deferred tax assets had previ-
ously not been recognised, and results mainly from Germany. In
addition, the recognition of deferred tax assets previously not rec
ognised for tax loss carryforwards and of deductible temporary
differences from a prior period reduced the deferred tax expense by
154million (previous year: 267million). Effects from unrecog-
nised deferred tax assets amounting to 1million (previous year:
29million) 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 1.4billion was recog- Basic earnings per share
nised in the balance sheet for companies that reported a loss in the
previous year or in the current period as, based on tax planning, 2015 2016
realisation of the tax asset is probable. Consolidated net profit for the
In financial year 2016, there were no changes in tax rates affect- period attributable to Deutsche
Post AG shareholders m 1,540 2,639
ing German Group companies. The change in the tax rate in some
Weighted average number
foreign tax jurisdictions did not lead to any significant effects. ofshares outstanding number 1,210,620,132 1,203,092,606
The effective income tax expense includes prior-period tax Basic earnings per share 1.27 2.19
expenses from German and foreign companies in the amount of
26million (tax expense) (previous year: expense of 10million).
The following table presents the tax effects on the components
of other comprehensive income: To compute diluted earnings per share, the average number of shares
outstanding is adjusted for the number of all potentially dilutive
Other comprehensive income shares. This item includes the executives rights to shares under the
m Performance Share Plan and Share Matching Scheme share-based
Before taxes Income taxes After taxes payment systems (as at 31December2016: 8,045,621 shares; previ-
ous year: 5,423,718 shares), the maximum number of ordinary
2016
Change due to remeasurements shares that can be issued on exercise of the conversion rights under
ofnet pension provisions 876 8 868 the convertible bond issued on 6December2012, as well as the
IAS39 revaluation reserve 69 13 56 shares from the share buyback programme that have not yet been
IAS39 hedging reserve 63 19 44
acquired. Consolidated net profit for the period attributable to
Currency translation reserve 291 0 291
Deutsche Post AG shareholders was increased by the amounts spent
Other changes in retained earnings 0 0 0
for the convertible bonds.
Share of other comprehensive
income of investments accounted Diluted earnings per share in the reporting period were 2.10
for using the equity method 3 0 3 (previous year: 1.22).
Other comprehensive income 1,170 2 1,168
2015 Diluted earnings per share

Change due to remeasurements
ofnet pension provisions 833 65 768
2015 2016
IAS39 revaluation reserve 110 7 103
Consolidated net profit for the
IAS39 hedging reserve 18 5 13 period attributable to Deutsche
Currency translation reserve 472 0 472 Post AG shareholders m 1,540 2,639
Other changes in retained earnings 0 0 0 Plus interest expense on the
Share of other comprehensive convertible bond m 6 6
income of investments accounted Less income taxes m 1 1
for using the equity method 5 0 5 Adjusted consolidated net profit
Other comprehensive income 1,182 53 1,129 forthe period attributable to
Deutsche Post AG shareholders m 1,545 2,644
Weighted average number
ofshares outstanding number 1,210,620,132 1,203,092,606
Potentially dilutive shares number 51,901,142 54,232,677
19 Earnings per share Weighted average number
ofshares for diluted earnings number 1,262,521,274 1,257,325,283
Basic earnings per share are computed in accordance with IAS33,
Diluted earnings per share 1.22 2.10
Earnings per Share, by dividing consolidated net profit by the aver-
age number of shares outstanding. Outstanding shares relate to
issued capital less any treasury shares held. Basic earnings per share
for financial year 2016 were 2.19 (previous year: 1.27).
20 Dividend per share
A dividend per share of 1.05 is being proposed for financial year
2016 (previous year: 0.85). Further details on the dividend distri-
bution can be found in note37.
Consolidated Financial Statements NOTES Income statement disclosures Balance sheet disclosures
129
BALANCE SHEET DISCLOSURES
21 Intangible assets
21.1 Overview
m Advance
Internally Other payments and
generated purchased intangible
intangible Purchased Purchased intangible assets under
assets brand names customer lists assets Goodwill development Total
Cost
Balance at 1January2015 1,151 544 975 1,534 12,247 392 16,843
Additions from business combinations 0 0 0 0 0 0 0
Additions 26 0 0 63 0 135 224
Reclassifications 73 0 0 84 0 126 31
Disposals 12 0 0 69 4 311 396
Currency translation differences 2 35 64 22 461 0 584
Balance at 31December2015/1January2016 1,240 579 1,039 1,634 12,704 90 17,286
Additions 27 0 0 57 0 101 185
Disposals 12 0 0 83 4 2 101
Balance at 31December2016 1,311 506 1,006 1,686 12,791 91 17,391
Amortisation and impairment losses

Balance at 1January2015 979 478 690 1,204 1,138 2 4,491
Amortisation 80 0 53 131 0 0 264
Impairment losses 3 0 0 3 0 308 314
Reversals of impairment losses 1 0 0 0 0 0 1
Disposals 11 0 0 66 1 308 386
Balance at 31December2015/1January2016 1,053 508 787 1,289 1,159 0 4,796
Amortisation 80 0 42 125 0 0 247
Disposals 9 0 0 70 0 0 79
Balance at 31December2016 1,125 436 794 1,349 1,133 0 4,837
Carrying amount at 31December2016 186 70 212 337 11,658 91 12,554

Carrying amount at 31December2015 187 71 252 345 11,545 90 12,490
The additions to goodwill relate to UK Mail Group (201million) Purchased software, concessions, industrial rights, licences and
and Mitsafetrans (35million), see also note2. In the previous similar rights and assets are reported under purchased intangible
year, impairment losses of 310million were recognised for the NFE assets. Internally generated intangible assets relate to development
transformation programme. This figure included capitalised bor- costs for internally developed software.
rowing costs of 10million. Other than goodwill, only brand names that are acquired in
their entirety are considered to have indefinite useful lives.
21.2 Allocation of goodwill to CGUs adopted by management, as well as changes in net working capital,
and take both internal historical data and external macroeconomic
m data into account. From a methodological perspective, the detailed
2015 2016 planning phase covers a three-year planning horizon from 2017 to
2019. It is supplemented by a perpetual annuity representing the
Total goodwill 11,545 11,658
value added from 2020 onwards. This is calculated using a long-
Post- eCommerce- Parcel 934 1,135 term growth rate, which is determined for each CGU separately and
Express 3,939 3,945 which is shown in the table below. The growth rates applied are
based on long-term real growth figures for the relevant economies,
DHL Global Forwarding 4,163 4,156 growth expectations for the relevant sectors and long-term inflation
DHL Freight 277 277 forecasts for the countries in which the CGUs operate. The cash flow
forecasts are based both on past experience and on the effects of the
Supply Chain 2,232 2,145
anticipated future general market trend. In addition, the forecasts
take into account growth in the respective geographical submarkets
and in global trade, and the ongoing trend towards outsourcing
For the purposes of annual impairment testing in accordance with logistics activities. Cost trend forecasts for the transport network
IAS36, the Group determines the recoverable amount of a CGU on and services also have an impact on value in use. Another key plan-
the basis of its value in use. This calculation is based on projections ning assumption for the impairment test is the EBIT margin for the
of free cash flows that are initially discounted at a rate correspond- perpetual annuity.
ing to the post-tax cost of capital. Pre-tax discount rates are then The pre-tax cost of capital is based on the weighted average cost
determined iteratively. of capital. The (pre-tax) discount rates for the individual CGUs and
The cash flow projections are based on the detailed planning the growth rates assumed in each case for the perpetual annuity are
for EBIT, depreciation/amortisation and investment planning shown in the following table:
% Discount rates Growth rates
2015 2016 2015 2016
Supply Chain 9.0 8.2 2.5 2.5

DHL Freight 9.1 8.4 2.0 2.0
DHL Global Forwarding 8.9 8.1 2.5 2.5
Post - eCommerce - Parcel 8.1 7.5 0.5 0.5
Express 8.3 7.6 2.0 2.0
On the basis of these assumptions and the impairment tests carried When performing the impairment test, Deutsche Post DHL
out for the individual CGUs to which goodwill was allocated, it was Group conducted sensitivity analyses as required by IAS36.134 for
established that the recoverable amounts for all CGUs exceed their the EBIT margin, the discount rate and the growth rate. These ana
carrying amounts. No impairment losses were recognised on good- lyses which included varying the essential valuation parameters
will in any of the CGUs as at 31December2016. within an appropriate range did not reveal any risk of impairment
to goodwill.
Consolidated Financial Statements NOTES Balance sheet disclosures
131
22 Property, plant and equipment

22.1 Overview
m Other
equipment, Advance
Technical operating Vehicle fleet payments and
Land and equipment and andoffice and transport assets under
buildings machinery equipment Aircraft equipment development Total
Cost
Balance at 1January2015 4,676 4,403 2,474 1,853 2,326 533 16,265
Additions 124 114 196 54 179 1,133 1,800
Disposals 404 143 233 132 153 16 1,081
Balance at 31December2015/1January2016 4,564 4,857 2,562 1,924 2,400 874 17,181
Additions 192 126 211 94 221 1,045 1,889
Reclassifications 276 533 90 292 27 1,241 23
Disposals 230 166 207 243 229 12 1,087
Balance at 31December2016 4,836 5,390 2,670 2,082 2,407 654 18,039
Depreciation and impairment losses

Balance at 1January2015 2,325 2,942 1,932 809 1,079 1 9,088
Depreciation 175 264 219 175 233 0 1,066
Disposals 233 126 221 124 130 0 834
Balance at 31December2015/1January2016 2,258 3,099 1,959 880 1,190 0 9,386
Depreciation 175 287 236 201 200 0 1,099
Disposals 128 141 197 233 187 0 886
Balance at 31December2016 2,319 3,249 2,012 879 1,191 0 9,650
Carrying amount at 31December2016 2,517 2,141 658 1,203 1,216 654 8,389
Carrying amount at 31December2015 2,306 1,758 603 1,044 1,210 874 7,795
Advance payments relate only to advance payments on items of m

property, plant and equipment for which the Group has paid ad- 2015 2016
vances in connection with uncompleted transactions. Assets under Land and buildings 137 180
development relate to items of property, plant and equipment in Technical equipment and machinery 2 1
progress at the balance sheet date for whose production internal or Other equipment, operating and office equipment 24 16
third-party costs have already been incurred. Aircraft 0 2
Vehicle fleet and transport equipment 1 4
22.2 Finance leases Finance leases 164 203
The following assets are carried as non-current assets resulting from

finance leases:
Information on the corresponding liabilities can be found under ance with section 313(2) nos.1 to 5 and section 313(3) of the HGB,
financial liabilities, note41.2. which can be accessed online at dpdhl.com/en/investors.
23 Investment property 24.1 Investments in associates

The investment property largely comprises leased property encum- The following table gives an aggregated overview of the carrying
bered by heritable building rights, and developed and undeveloped amount in the consolidated financial statements and selected finan-
land. cial data (based on the interest held) for those associates which, both
individually and in the aggregate, are not of material significance
m for the Group.
2015 2016
Aggregate financial data for associates
Cost
At 1January 42 39 m
Additions 0 2 2015 2016
Reclassifications 4 0 Carrying amount in the consolidated financial
Disposals 8 7 statements 75 95
Currency translation differences 1 0 Profit/loss before income taxes 3 4
At 31December 39 34 Profit/loss after income taxes 2 3
Other comprehensive income 5 3
Depreciation and impairment losses
Total comprehensive income 7 6
At 1January 10 14
Additions 0 0
Impairment losses 1 0
Disposals 0 2
24.2 Joint ventures
Reclassifications 3 1
The following table presents in aggregated form the carrying amount
Currency translation differences 0 0
and selected financial data of all interests in all joint ventures which,
At 31December 14 11
Carrying amount at 31December 25 23
both individually and in the aggregate, are immaterial. The figures
represent the Groups interests.
Aggregate financial data for joint ventures

Rental income for investment property amounted to 1million m
(previous year: 2million), whilst the related expenses were 0mil- 2015 2016
lion (previous year: 1million). The fair value amounted to 58mil- Carrying amount in the consolidated financial
lion (previous year: 58million). statements 1 2
Profit/loss before income taxes 1 1
24 Investments accounted for using the equity method Profit/loss after income taxes
Other comprehensive income
0
0
1
0
Investments accounted for using the equity method changed as
Total comprehensive income 0 1
shown in the table below.
The additions relate to the 27.5% non-controlling interest in
Relais Colis SAS, France, acquired in January2016.
The complete list of investments in associates and joint ven-
tures can be found in the list of the Groups shareholdings in accord-
m Associates Joint ventures Total
2015 2016 2015 2016 2015 2016

Balance at 1January 69 75 6 1 75 76
Additions 0 19 0 0 0 19
Disposals 0 3 3 0 3 3
Impairment losses 0 0 2 0 2 0
Changes in the Groups share of equity
Changes recognised in profit or loss 2 3 0 1 2 4
Profit distributions 1 2 0 0 1 2
Changes recognised in other comprehensive income 5 3 0 0 5 3
Balance at 31December 75 95 1 2 76 97
133
25 Financial assets
m Non-current Current Total
2015 2016 2015 2016 2015 2016

Available-for-sale financial assets 119 32 27 200 146 232
of which measured at fair value 108 21 27 200 135 221
Loans and receivables 806 458 105 73 911 531
Assets at fair value through profit or loss 138 155 42 94 180 249
Lease receivables 50 44 5 7 55 51
Financial assets 1,113 689 179 374 1,292 1,063
The change in financial assets is attributable primarily to the sale of 26 Other assets
the remaining shares held in the Kings Cross companies as well
asthe release of an amount of 378million deposited in a trustee 26.1 Overview
account for the EU state aid decision, see also notes 46 and 48.
Write-downs of non-current financial assets at fair value m
through profit or loss amounting to 12million (previous year: 2015 2016
17million) were recognised in the income statement, whilst a Other non-current assets 221 222
write-up in the same amount was recognised for liabilities at fair Other current assets 2,172 2,176
value through profit or loss. Other assets 2,393 2,398
Compared with the market rates of interest prevailing at 31De-

cember2016 for comparable non-current financial assets, most of
the housing promotion loans are low-interest or interest-free loans.
They are recognised in the balance sheet at a present value of 6mil- 26.2 Breakdown of other assets
lion (previous year: 8million). The principal amount of these
loans totals 6million (previous year: 8million). m
Details on restraints on disposal are contained in note45.2. 2015 2016
Prepaid expenses 630 705
Current tax receivables 477 463
Pension assets, non-current only 151 143
Receivables from private postal agencies 126 127
Income from cost absorption 99 86
Creditors with debit balances 40 39
Receivables from insurance business 38 35
Receivables from loss compensation
(recourseclaims) 30 32
Receivables from employees 27 32
Receivables from cash-on-delivery 5 4
Other assets,
of which non-current: 79 (previousyear: 70) 770 732
Other assets 2,393 2,398
Information on pension assets can be found in note39.

Of the tax receivables, 346million (previous year: 356mil-
lion) relates to VAT, 62million (previous year: 72million) to cus-
toms and duties, and 55million (previous year: 49million) to
other tax receivables. Miscellaneous other assets include a large
number of individual items.
27 Deferred taxes 27.3 Maturity structure
27.1 Overview m
Short-term Long-term Netting Total
m
2016
2015 2016 Deferred tax assets 860 1,564 232 2,192
Deferred tax assets 2,007 2,192 Deferred tax
Deferred tax liabilities 142 106 liabilities 119 219 232 106
2015
Deferred tax assets 665 1,605 263 2,007
Deferred tax
liabilities 98 307 263 142
27.2 Breakdown by balance sheet item
m 2015 2016
Intangible assets
Assets
52
Liabilities
156
Assets
25
Liabilities
131
28 Inventories
Property, plant and
equipment 119 71 140 98 m
Non-current financial 2015 2016
assets 1 22 5 11
Raw materials, consumables and supplies 137 150
Other non-current assets 76 8 77 7
Finished goods and goods purchased and held
Other current assets 37 31 24 56 forresale 65 61
Provisions 640 62 580 20 Work in progress 66 59
Financial liabilities 2 46 93 13 Advance payments 13 5
Other liabilities 137 9 143 2 Inventories 281 275
Tax loss carryforwards 1,206 1,337
Gross amount 2,270 405 2,424 338
Netting 263 263 232 232
Carrying amount 2,007 142 2,192 106 There was no requirement to charge significant valuation allowances
on these inventories.
29 Trade receivables
1,110million (previous year: 1,101million) of the deferred taxes
on tax loss carryforwards relates to tax loss carryforwards in Ger- m
many and 227million (previous year: 105million) to foreign tax 2015 2016
loss carryforwards. Trade receivables 7,049 7,290
No deferred tax assets were recognised for tax loss carryfor- Deferred revenue 636 659
wards of around 10.1billion (previous year: 10.0billion) and for Receivables from Group companies 9 16
temporary differences of around 3.0billion (previous year: 4.1bil- Trade receivables 7,694 7,965
lion), as it can be assumed that the Group will probably not be able
to use these tax loss carryforwards and temporary differences in its
tax planning.
Most of the tax loss carryforwards in Germany are attributable 30 Income tax assets and liabilities
to Deutsche Post AG. It will be possible to utilise them for an in All income tax assets and liabilities are current and have maturities
definite period of time. In the case of the foreign companies, the of less than one year.
significant tax loss carryforwards will not lapse before 2023.
Deferred taxes have not been recognised for temporary differ-
ences of 813million (previous year: 802million) relating to earn-
ings of German and foreign subsidiaries because these temporary
differences will probably not reverse in the foreseeable future.
135
31 Cash and cash equivalents Of the 3,107million in cash and cash equivalents, 955million was
not available for general use by the Group as at the balance sheet
m date (previous year: 838million). Of this amount, 886million
2015 2016 (previous year: 766million) was attributable to countries where
Cash equivalents 2,353 1,198 exchange controls or other legal restrictions apply (mostly China,
Bank balances/cash in transit 1,182 1,837 India and Thailand) and 69million primarily to companies with
Cash 20 19 non-controlling interest holders (previous year: 72million).
Other cash and cash equivalents 53 53
Cash and cash equivalents 3,608 3,107
32 Assets held for sale and liabilities associated with assets

heldforsale
The amounts reported in this item mainly relate to the following
items:
m Assets Liabilities
2015 2016 2015 2016

Exel Inc., USA real estate (Supply Chain segment) 6 0 0 0
nugg.ad GmbH, Germany equity interest (PeP segment) 3 0 2 0
Gll GmbH, Germany, and Presse-Service Gll GmbH, Switzerland equity interests (PeP segment) 3 0 0 0
Other 0 0 0 0
Assets held for sale and liabilities associated with assets held for sale 12 0 2 0
The sale plan for properties of Exel Inc., USA, reported in the pre- Changes in issued capital and treasury shares
vious year was withdrawn. The real estate was reclassified as invest-
ment property. The sale of nugg.ad GmbH, Germany, and Gll 2015 2016
GmbH, Germany, as well as Presse-Service Gll GmbH, Switzerland,
Issued capital
was completed during the year under review. Balance at 1January 1,211,180,262 1,212,753,687
The other item relates to legacy aircraft held for sale. Another Addition due to capital increase 1,568,593 0
five aircraft with a carrying amount of 1.00 each were reclassified Addition due to contingent capital increase
(convertible bond) 4,832 28,162,196
to this balance sheet item during the financial year. The most recent
Balance at 31December
measurement prior to reclassification led to an impairment loss of (accordingtocommercial register) 1,212,753,687 1,240,915,883
26million.
Treasury shares
33 Issued capital and purchase of treasury shares Balance at 1January

Purchase of treasury shares
1,507,473
2,628,575
1,568,593
30,896,650
As at 31December2016, KfW Bankengruppe (KfW) held a Sale of treasury shares 14,992 48,106
20.5% (previous year: 20.9%) interest in the share capital of Issue of treasury shares 2,552,463 2,829,908
Deutsche Post AG. The remaining 79.5% (previous year: 79.1%) Balance at 31December 1,568,593 29,587,229
ofthe shares were in free float. KfW holds the shares in trust for
Total at 31December 1,211,185,094 1,211,328,654
theFederal Republic of Germany.
33.1 Changes in issued capital

The issued capital amounts to 1,241million. It is composed of The contingent capital increase in December2016 resulted from
1,240,915,883 no-par value registered shares (ordinary shares) with various bond holders exercising conversion options.
a notional interest in the share capital of 1 per share and is fully
paid up.
33.2 Authorised and contingent capital Contingent Capital 2011

In its resolution dated 25May2011, the Annual General Meeting
Authorised/contingent capital at 31December2016 authorised the Board of Management, subject to the consent of the
Amount
Supervisory Board, to issue bonds with warrants, convertible bonds
m Purpose and/or income bonds as well as profit participation certificates, or
Authorised Capital 2013 236 Increase in share capital a combination thereof, in an aggregate principal amount of up to
against cash/
1billion, on one or more occasions until 24May2016, thereby
non-cash contributions
(until 28May2018) granting options or conversion rights for up to 75million shares
Contingent Capital 2011 47 Issue of options/ with a proportionate interest in the share capital not to exceed
conversion rights 75million.
(until 24May2016)
Full use was made of the authorisation in December2012 by
Contingent Capital 2013 75 Issue of options/
conversion rights issuing a 1billion convertible bond. The share capital was in-
(until 28May2018) creased on a contingent basis by up to 75million. Contingent cap-
Contingent Capital 2014 40 Issue of subscription ital was reduced through the issue of new shares, by 4,832.00 in
rights toexecutives
(until26May2019) 2015 and by 28,162,196.00 in 2016.
Contingent Capital 2013

In its resolution dated 29May2013, the Annual General Meeting
Authorised Capital 2013 authorised the Board of Management, subject to the consent of the
As resolved by the Annual General Meeting on 29May2013, the Supervisory Board, to issue bonds with warrants, convertible bonds
Board of Management is authorised, subject to the consent of the and/or income bonds as well as profit participation certificates, or
Supervisory Board, to issue up to 240million new, no-par value a combination thereof, in an aggregate principal amount of up to
registered shares until 28May2018 in exchange for cash and/or 1.5billion, on one or more occasions until 28May2018, thereby
non-cash contributions and thereby increase the companys share granting options or conversion rights for up to 75million shares
capital. The authorisation may be used in full or for partial amounts. with a proportionate interest in the share capital not to exceed
Shareholders generally have subscription rights. However, subject 75million. The share capital was increased on a contingent basis
to the approval of the Supervisory Board, the Board of Management by up to 75million. No use was made of the authorisation in the
may disapply the shareholders subscription rights to the shares reporting year.
covered by the authorisation.
Contingent Capital 2014
Capital increases In its resolution dated 27May2014, the Annual General Meeting
Number
authorised the Board of Management to contingently increase the
Registered on ofshares share capital by up to 40million through the issue of up to 40mil-
12March2014 656,915 lion new no-par value registered shares. The contingent capital in-
11December2014 1,507,473 crease serves to grant subscription rights to selected Group execu-
10December2015 1,568,593 tives. The subscription rights may only be issued based on the
Total 3,732,981
aforementioned Annual General Meeting resolution of 27May2014.
The contingent capital increase will only be implemented to the
extent that shares are issued based on the subscription rights granted
In financial years 2014 and 2015, Deutsche Post AGs Board of and the company does not settle the subscription rights by cash
Management made partial use of the authorisation granted to it payment or delivery of treasury shares. The new shares participate
inaccordance with article 5(2) of the Articles of Association of in profit from the beginning of the financial year in which they are
Deutsche Post AG, to increase Deutsche Post AGs share capital by a issued. The share capital was increased on a contingent basis by up
total of 3,732,981.00 by issuing 3,732,981 new no-par value regis- to 40million. No use was made of the authorisation in the report-
tered shares with a notional interest in the share capital of 1.00 ing year.
per share in exchange for cash contributions. In financial year
2016,the authorised capital was not utilised. Authorised c apital,
which originally amounted to 240million, now amounts to
236million.
137
33.3 Authorisation to acquire treasury shares Corporate capital

By way of a resolution adopted by the Annual General Meeting on m
27May2014, the company is authorised to acquire treasury shares 2015 2016
in the period to 26May2019 of up to 10% of the share capital ex- Financial liabilities 5,178 6,035
isting when the resolution was adopted. The authorisation permits Less operating financial liabilities1 160 138
the Board of Management to exercise it for every purpose permitted Less cash and cash equivalents 3,608 3,107
by law, and in particular to pursue the goals mentioned in the reso Less current financial assets 179 374
Less non-current derivative financial instruments 138 155
lution by the Annual General Meeting.
Net debt 1,093 2,261
Treasury shares acquired on the basis of the authorisation, with
Plus total equity 11,295 11,350
shareholders subscription rights disapplied, may continue to be
Total capital 12,388 13,611
used for the purposes of listing on a stock exchange outside Ger-
Net gearing ratio (%) 8.8 16.6
many. In addition, the Board of Management remains authorised
to acquire treasury shares using derivatives. 1
Relates to, e.g., liabilities from leases, overpayments.
Deutsche Post AG acquired treasury shares for the total amount
of 32million (average price of 24.62 per share) in order to settle
the 2015 tranche of the Share Matching Scheme. To settle the 2011 34 Capital reserves
tranche of the Share Matching Scheme, treasury shares had been An amount of 601million was transferred to the capital reserves
purchased for a total price of 39million (average price of 24.80 in financial year 2016 (previous year: 94million).
per share) in December2015. The treasury shares were issued to the
executives concerned in April2016. m
On 1March2016, the Board of Management resolved a share 2015 2016
buyback programme for up to 60million shares of Deutsche Post AG Capital reserves at 1January 2,339 2,385
at a total purchase price (not including transaction costs) of up to Addition/issue of rights under Share Matching
1billion. The repurchased shares will either be retired, used to Scheme
service long-term executive remuneration plans or used to meet 2010 tranche 1 0
2011 tranche 4 1
potential obligations if rights accruing under the 2012/2019 con-
2012 tranche 3 3
vertible bond are exercised. The buyback via the stock exchange
2013 tranche 4 4
began on 1April2016 and will last for a maximum of one year. The
2014 tranche 27 5
first tranche of the share buyback programme with a total volume
2015 tranche 8 32
of 100million was implemented in the period between 1April2016 2016 tranche 0 8
and 3May2016. The second tranche with a total volume of 250mil- Total additions 47 53
lion was implemented in the period between 30May2016 and
Exercise of rights under Share Matching Scheme
26August2016. The volume bought back in the third tranche be- 2010 tranche matching shares 20 0
tween 29August2016 and 31December2016 amounted to 455mil 2011 tranche matching shares 0 21
lion. The total maximum volume of this tranche is 650million and 2014 tranche investment and incentive shares 28 0
the buyback period ends on 6March2017. By 31December2016, a 2015 tranche investment and incentive shares 0 33
total of 29,587,229 shares had been repurchased for 805million at Total exercised 48 54
an average price of 27.22 per share. Total for Share Matching Scheme 1 1
As at 31December2016, Deutsche Post AG held 29,587,229 Addition/issue of rights under Performance Share
treasury shares (previous year: 1,568,593 treasury shares). Plan
2014 tranche 8 7
2015 tranche 2 7
33.4 Disclosures on corporate capital
2016 tranche 0 3
The equity ratio was 29.6% in financial year 2016 (previous year:
Total for Performance Share Plan 10 17
29.8%). The companys capital is monitored using the net gearing
Capital increase through exercise of conversion
ratio, which is defined as net debt divided by the total of equity and rights under convertible bond 0 531
net debt. Capital increases 37 0
Capital reserves at 31December 2,385 2,932
35 Other reserves
m
m 2015 2016
2015 2016 At 1January 33 51
IAS39 revaluation reserve 67 11 Currency translation differences 0 0
IAS39 hedging reserve 41 3
Currency translation reserve 15 298 Changes from unrealised gains and losses 120 46
Other reserves 11 284 Changes from realised gains and losses 102 17
IAS39 hedging reserve at 31December before tax 51 12
Deferred taxes 10 9
IAS39 hedging reserve at 31December after tax 41 3
35.1 IAS39 revaluation reserve
The revaluation reserve comprises gains and losses from changes in
the fair value of available-for-sale financial assets that have been
recognised in other comprehensive income. This reserve is reversed The change in the hedging reserve is mainly the result of the recog-
to profit or loss either when the assets are sold or otherwise disposed nition of previously unrealised gains and losses from hedging future
of, or if their value is significantly or permanently impaired. operating currency transactions. In the financial year, realised losses
of 86million and realised gains of 69million were recognised in
m other comprehensive income (previous year: realised losses of
2015 2016 137million and realised gains of 35million).
At 1January 190 80
Currency translation differences 8 2 35.3 Currency translation reserve
Changes from unrealised gains and losses 54 4 m
Changes from realised gains and losses 172 63 2015 2016
IAS39 revaluation reserve at 31December At 1January 483 15
beforetax 80 11
Transactions with non-controlling interests 0 0
Deferred taxes 13 0
IAS39 revaluation reserve at 31December Total comprehensive income
aftertax 67 11 Changes from unrealised gains and losses 468 283
Currency translation reserve at 31December 15 298
The change resulted from the sale of shares in the Kings Cross com-
panies in the UK.
36 Retained earnings
35.2 IAS39 hedging reserve As well as the undistributed consolidated net profits generated in
The hedging reserve is adjusted by the effective portion of a cash prior periods, retained earnings also contain the effects from trans-
flow hedge. The hedging reserve is reversed to profit or loss when actions with non-controlling interests.
the hedged item is settled.
139
37 Equity attributable to Deutsche Post AG shareholders

m The equity attributable to Deutsche Post AG shareholders in finan
2015 2016 cial year 2016 amounted to 11,087million (previous year:
At 1January 6,168 7,427 11,034million).
Dividend payment 1,030 1,027
Consolidated net profit for the period 1,540 2,639 Dividends
Change due to remeasurements of net pension Dividends paid to the shareholders of Deutsche Post AG are
provisions 773 866
based on the net retained profit of 5,487million reported in
Miscellaneous other changes, of which 21 949
Deutsche Post AGs annual financial statements in accordance with
Share buyback under tranches I to III 0 775 the HGB. The Board of Management is proposing a dividend of 1.05
Obligation to repurchase shares under tranche III 0 195 per no-par value share carrying dividend rights. This corresponds
Purchase/sale treasury shares under Share to a total dividend of 1,271million, based on an estimated number
Matching Scheme 67 30 of shares carrying dividend rights for financial year 2016. The
Exercise treasury shares underShare amount of 4,216million remaining after deduction of the planned
Matching Scheme 46 51
total dividend will be carried forward to new account.
Retained earnings at 31December 7,427 7,228
Dividend
Total dividend per share
The dividend payment to Deutsche Post AG shareholders of m
Dividend distributed in financial year 2016
1,027million was made in May2016. This corresponds to a divi
fortheyear 2015 1,027 0.85
dend of 0.85 per share. Dividend distributed in financial year 2015
The third tranche of the share buyback programme, with a total fortheyear 2014 1,030 0.85
volume of up to 650million, is being implemented by an independ
ent financial services provider between 29August2016 and
6March2017 on the basis of an irrevocable agreement dated 25Au As the dividend is paid in full from the tax-specific capital contri
gust2016. At the time the contract was concluded, the resulting bution account (steuerliches Einlagekonto as defined by section 27
obligation was charged in full to retained earnings and recognised of the Krperschaftssteuergesetz (KStG German Corporation Tax
as a financial liability. It was reduced by the buyback transactions Act)) (contributions not made to subscribed capital), payment will
carried out by 31December2016. The amounts from the third be made without the deduction of capital gains tax or the solidarity
tranche of the share buyback programme are included in miscel surcharge. The dividend is tax exempt for shareholders resident in
laneous other changes. Of these amounts, 195million is attributable Germany. It does not entitle recipients to a tax refund or a tax credit.
to the buyback transactions to be carried out after 31December In terms of taxation, the dividend distribution is considered as a
2016. In addition, 775million of the acquisition costs of 805mil repayment of contributions from the capital contribution account
lion incurred to date for the share repurchases of tranches I to III of and in the opinion of the tax authorities serves to reduce the
the share buyback programme was also recognised in miscellaneous cost of acquiring the shares.
other changes. The remaining 30million relates to the notional
value of the repurchased shares and was recognised in issued capital. 38 Non-controlling interests
The miscellaneous other changes also include the amounts related This balance sheet item includes adjustments for the interests of
to settlement of the tranches under the Share Matching Scheme. non-Group shareholders in the consolidated equity from acquisi
The changes in transactions with non-controlling interests tion accounting, as well as their interests in profit or loss.
without change of control are presented in the following table. The following table shows the companies to which the material
non-controlling interests relate:
Transactions with non-controlling interests
m m
2015 2016 2015 2016
Blue Dart Express Limited, India 1 1 DHL Sinotrans International Air Courier Ltd., China 176 162
DHL Korea Limited, Korea 5 0 Blue Dart Express Limited, India 12 14
Other 1 3 Exel Saudia LLC, Saudi Arabia 9 11
Total 3 4 Other companies 64 76
Non-controlling interests 261 263
Material non-controlling interests exist in the following two com- Dart Express Limited (Blue Dart), India, is a courier service pro-
panies: vider which has been assigned to the PeP segment. Deutsche Post AG
DHL Sinotrans International Air Courier Ltd., China, which holds a share of 75% in Blue Dart. The following table gives an over-
has been assigned to the Express segment, provides domestic view of the aggregated financial data of significant companies with
and international express delivery and transport services. non-controlling interests:
Deutsche Post DHL Group holds a 50% share in the company. Blue
Financial data for material non-controlling interests

m Sinotrans Blue Dart
2015 2016 2015 2016
Balance sheet
ASSETS
Non-current assets 170 115 79 80
Current assets 388 433 93 103
Total ASSETS 558 548 172 183

Non-current provisions and liabilities 9 8 50 28
Current provisions and liabilities 198 216 58 78
Total EQUITY AND LIABILITIES 207 224 108 106
Net assets 351 324 64 77
Non-controlling interests 176 162 12 14
Income statement
Revenue 1,364 1,335 349 354
Profit before income taxes 362 293 36 32
Income taxes 84 74 15 12
Profit after income taxes 278 219 21 20
Other comprehensive income 10 15 1 0
Total comprehensive income 288 204 22 20
attributable to non-controlling interests 144 102 6 5
Dividend distributed to non-controlling interests 112 116 2 2
Consolidated net profit attributable to non-controlling interests 139 109 5 5
Cash flow statement

Net cash from operating activities 301 262 35 22
Net cash used in/from investing activities 21 12 18 16
Net cash used in financing activities 225 231 15 23
Net change in cash and cash equivalents 55 19 2 15
Cash and cash equivalents at 1January 145 204 6 7
Effect of changes in exchange rates on cash and cash equivalents 4 9 1 0
Cash and cash equivalents at 31December 204 214 7 22
The portion of other comprehensive income attributable to non-con- m

trolling interests largely relates to the currency translation reserve. 2015 2016
The changes are shown in the following table: Balance at 1January 6 15

Currency translation reserve at 31December 15 10
141
39 Provisions for pensions and similar obligations In the UK, the Groups defined benefit pension arrangements
are largely closed to new entrants and for further service accrual.
39.1 Plan features One exceptional arrangement exists which is open to further service
The Groups most significant defined benefit retirement plans are in accrual and a limited number of existing employees who have not
Germany and the UK. yet chosen to join. It provides for monthly payments from retire-
In Germany, Deutsche Post AG has occupational retirement ment, depending on length of service and final salary. In addition,
arrangements based on a collective agreement, which are open to a pension commencement lump sum payment must be made. An-
new hourly workers and salaried employees. This system was re- nual increases in pension payments are linked to inflation.
placed in the year under review by entering into a new collective The majority of the Groups (defined benefit) arrangements in
agreement. As from 1January2016, depending on the weekly work- the UK have been consolidated into a group plan with different sec-
ing hours and wage/salary group, retirement benefit components tions for the participating divisions. These are largely funded via a
are calculated annually for each hourly worker and salaried em- group trust. The amount of the employer contributions must be
ployee and credited to an individual pension account. The allocated negotiated with the trustee in the course of funding valuations. Em-
retirement benefit components are subject to an annual rate of in- ployee beneficiaries make their own funding contributions in the
crease of 2.5%. When the statutory pension falls due, the hourly case of the remaining open defined benefit arrangement.
workers and salaried employees can choose whether to receive pay- A wide variety of other defined benefit retirement plans in the
ment as a lump sum or in instalments, or life-long monthly benefit Group are to be found in the Netherlands, Switzerland, the USA and
payments that increase by 1% each year. Employees on the payroll a large number of other countries.
at 31December2015/1January2016 receive an initial benefit com- In the Netherlands, collective agreements require that those
ponent for the entitlements already accrued. This component is employees who are not covered by a sector-specific plan participate
credited to the pension account on a one-time basis. The large main a dedicated defined benefit retirement plan, which provides for
jority of Deutsche Post AGs obligations relates to older vested entitle annual accruals. In addition, a pensionable salary cap is applied. The
ments of hourly workers and salaried employees, and to legacy plan provides for monthly benefit payments that increase in line
pension commitments towards former hourly workers and salaried with the agreed wage and salary increases, on the one hand, and the
employees who have left or retired from the company. In addition, funds available for such increases, on the other. In Switzerland, em-
retirement arrangements are available to executives below the man- ployees receive an occupational pension in line with statutory re-
agement board level and to specific employee groups through de- quirements, depending on the contributions paid, an interest rate
ferred compensation. that is fixed each year, certain annuity factors and any pension in-
The prime source of external funding for Deutsche Post AGs creases specified. A separate plan providing for lump sum payments
overall pension plan is a contractual trust arrangement, which also instead of annuities exists for specific higher wage components. In
includes a pension fund. A support fund that was previously also the USA, the companies defined benefit plans have been closed to
included was liquidated in 2016 and its assets were transferred to new entrants and accrued entitlements have been frozen.
the trust. The trust is funded on a case-by-case basis in line with the The Group companies primarily fund their dedicated defined
Groups finance strategy. In the case of the pension fund, the regu- benefit retirement plans in these three countries by using the re-
latory funding requirements can, in principle, be met without add spective joint funding institutions. In the Netherlands and in
itional employer contributions. Part of the plan assets consists of Switzerland, both employers and employees contribute to plan fund-
real estate that is leased out to the Group on a long-term basis. In ing. In the USA no contributions are currently made in this regard.
addition, some of the legacy pension commitments use the Versor Various risks arise in the context of defined benefit retirement
gungsanstalt der Deutschen Bundespost (VAP), a joint pension fund plans. Of these risks, the interest rate risk and investment risk in
operated by the Deutsche Bundespost successor companies. particular are still deemed to be significant.
Individual subsidiaries in Germany have retirement plans that The information below on pension obligations is broken down
were acquired in the context of acquisitions and transfers of oper into the following areas: Germany, UK and Other.
ations and that are closed to new entrants. New contractual trust
arrangements were agreed and implemented for three subsidiaries
in the previous year.
39.2 Financial plan performance and calculation 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 Present value of defined Fair value Net pension

benefitobligations of plan assets provisions
2015 2016 2015 2016 2015 2016

At 1January 18,099 17,272 10,961 11,202 7,138 6,070
Current service cost, excluding employee contributions 193 162 193 162
Past service cost 2 356 2 356
Settlement gains ()/losses (+) 7 7 7 7
Other administration costs in accordance with IAS19.130 10 10 10 10
Service cost1 188 201 10 10 198 191
Interest cost on defined benefit obligations 485 483 485 483
Interest income on plan assets 317 346 317 346
Net interest cost 485 483 317 346 168 137
Income and expenses recognised in the income statement 673 282 307 336 366 54
Actuarial gains ()/losses (+) changes in demographic assumptions 136 16 136 16
Actuarial gains ()/losses (+) changes in financial assumptions 1,026 1,754 1,026 1,754
Actuarial gains ()/losses (+) experience adjustments 14 65 14 65
Return on plan assets excluding interest income 315 797 315 797
Remeasurements recognised in the statement ofcomprehensive income 1,148 1,673 315 797 833 876
Employer contributions 497 1,162 497 1,162
Employee contributions 30 32 18 18 12 14
Benefit payments 788 747 638 481 150 266
Settlement payments 2 71 3 71 1 0
Transfers 0 0 0 12 0 12
Acquisitions/divestitures 0 2 0 1 0 1
Currency translation effects 408 716 375 664 33 52
At 31December 17,272 17,723 11,202 12,286 6,070 5,437
1
Including other administration costs on plan assets under IAS19.130.
As at 31December2016, the effects of asset ceilings amounted to payments from plan assets to benefit payments by the company. A
2million. An expedient was applied to their recognition by de- lump-sum programme was implemented in the UK for the recipients
ducting this amount from the fair value of plan assets (1Janu- of small retirement benefits, leading to settlement payments and the
ary2016/31December2015: 0million; 1January2015: 3million). discontinuation of pension obligations.
The negative past service cost in the reporting year was largely Total payments amounting to 439million are expected with
due to changes in the occupational retirement arrangement of regard to net pension provisions in 2017. Of this amount, 346mil-
Deutsche Post AG in Germany. The increase in employer contribu- lion is attributable to the Groups expected direct benefit payments
tions was also largely attributable to Deutsche Post AG which added and 93million to expected employer contributions to pension
1billion to pension assets in April2016. In addition, liquidation funds.
of the support fund in Germany resulted in a switch from benefit
143
The breakdown of the present value of defined benefit obliga-

tions, fair value of plan assets and net pension provisions as well as
the calculation of the balance sheet items are as follows:
m
Germany UK Other Total
2016
Present value of defined benefit obligations at 31December 9,866 5,270 2,587 17,723
Fair value of plan assets at 31December 5,518 4,590 2,178 12,286
Net pension provisions at 31December 4,348 680 409 5,437
Reported separately
Pension assets at 31December 0 1 142 143
Provisions for pensions and similar obligations at 31December 4,348 681 551 5,580
2015
Present value of defined benefit obligations at 31December 9,628 5,166 2,478 17,272
Fair value of plan assets at 31December 4,363 4,774 2,065 11,202
Net pension provisions at 31December 5,265 392 413 6,070
Reported separately
Pension assets at 31December 0 48 103 151
Provisions for pensions and similar obligations at 31December 5,265 440 516 6,221
In the Other area, the Netherlands, Switzerland and the USA ac-
count for a share in the corresponding present value of the defined
benefit obligations of 40%, 24% and 13%, respectively (previous
year: 40%, 24% and 14%).
Additionally, rights to reimbursement from former Group
companies existed in the Group in Germany in the amount of
around 20million (previous year: 18million) which are reported
separately. Corresponding benefit payments are being made directly
by the former Group companies.
39.3 Additional information on the present value of defined benefit

obligations
The significant financial assumptions are as follows:
%
31December2016
Discount rate (defined benefit obligations) 2.25 2.75 2.19 2.39
Expected annual rate of future salary increase 2.50 3.25 2.02 2.43
Expected annual rate of future pension increase 2.00 2.85 0.93 2.15
31December2015
Discount rate (defined benefit obligations) 2.75 3.75 2.53 3.02
Expected annual rate of future salary increase 2.50 3.00 2.00 2.42
Expected annual rate of future pension increase 2.00 2.65 1.06 2.10
The discount rates for defined benefit obligations in the euro zone The most significant demographic assumptions made relate to
and the UK were each derived from an individual yield curve com- life expectancy and mortality. For the German Group companies,
prising the yields of AA-rated corporate bonds. Membership-related they were calculated using the Richttafeln 2005G mortality tables
factors and/or duration were taken into account. For other coun- published by Klaus Heubeck. Life expectancy for the retirement
tries, the discount rate for defined benefit obligations was deter- plans in the UK was based on the S1PMA / S 1PFA tables of the
mined in a similar way, provided there was a deep market for AA- Continuous Mortality Investigation of the Institute and Faculty of
rated (or, to some extent, AA and AAA-rated) corporate bonds. By Actuaries adjusted to reflect plan-specific mortality according to
contrast, government bond yields were used for countries without thecurrent funding valuation. Other countries used their own, cur-
a deep market for such corporate bonds. rent standard mortality tables.
For the annual pension increase in Germany, agreed rates in If one of the significant financial assumptions were to change,
particular must be taken into account in addition to the assump- the present value of the defined benefit obligations would change as
tions shown. The effective weighted average therefore amounts to follows:
1.00% (previous year: 1.00%).
Change in
assumption Change in present value
Percentage of defined benefit obligations
points %
31December2016
Discount rate (defined benefit obligations) +1.00 12.58 15.02 14.48 13.58
1.00 15.91 19.62 18.67 17.41
Expected annual rate of future salary increase +0.50 0.18 0.08 1.08 0.28
0.50 0.17 0.08 1.01 0.26
Expected annual rate of future pension increase +0.50 0.42 5.94 6.23 2.90
0.50 0.38 5.41 4.29 2.44
31December2015
Discount rate (defined benefit obligations) +1.00 13.25 14.78 14.22 13.85
1.00 17.06 19.27 18.40 17.91
Expected annual rate of future salary increase +0.50 0.17 0.07 1.01 0.26
0.50 0.16 0.07 0.97 0.25
Expected annual rate of future pension increase +0.50 0.40 5.79 6.08 2.82
0.50 0.36 5.48 4.19 2.44
These are effective weighted changes in the respective present value The weighted average duration of the Groups defined benefit
of the defined benefit obligations, e.g., taking into account the obligations at 31December2016 was 14.4 years in Germany (previ-
largely fixed nature of the pension increase for Germany. ous year: 15.4 years) and 18.0 years in the UK (previous year: 16.7
A one-year increase in life expectancy for a 65-year-old bene- years). In the other countries it was 17.5 years (previous year: 17.2
ficiary would increase the present value of the defined benefit obli- years), and in total it was 15.9 years (previous year: 16.0 years).
gations by 4.56% in Germany (previous year: 4.56%) and by 4.06% A total of 29.2% (previous year: 29.6%) of the present value of
in the UK (previous year: 4.07%). The corresponding increase for the defined benefit obligations was attributable to active beneficiar-
other countries would be 2.56% (previous year: 2.62%), for a total ies, 16.8% (previous year: 16.8%) to terminated beneficiaries and
increase of 4.12% (previous year: 4.14%). 54.0% (previous year: 53.6%) to retirees.
When determining the sensitivity disclosures, the present values
were calculated using the same methodology used to calculate the
present values at the reporting date. The presentation does not take
into account interdependencies between the assumptions; rather, it
supposes that the assumptions change in isolation. This would be
unusual in practice, since assumptions are often correlated.
145
39.4 Additional information on the fair value of plan assets

The fair value of the plan assets can be broken down as follows:
m
31December2016
Equities 1,053 662 742 2,457
Fixed income securities 1,986 3,173 910 6,069
Real estate 1,377 183 262 1,822
Alternatives 434 457 33 924
Insurances 562 0 119 681
Cash 99 103 20 222
Other 7 12 92 111
Fair value of plan assets 5,518 4,590 2,178 12,286
31December2015
Equities 753 968 728 2,449
Fixed income securities 1,461 3,091 833 5,385
Real estate 1,322 199 240 1,761
Alternatives 236 462 44 742
Insurances 570 0 110 680
Cash 14 39 35 88
Other 7 15 75 97
Fair value of plan assets 4,363 4,774 2,065 11,202
Quoted market prices in an active market exist for around 80% Inflation risk
(previous year: 79%) of the total fair values of plan assets. Most of Pension obligations especially final salary schemes or schemes
the remaining assets for which no such quoted market prices exist involving increases during the pension payment phase can be
are attributable as follows: 13% (previous year: 14%) to real estate, linked directly or indirectly to inflation. The risk of increasing in-
6% (previous year: 6%) to insurances and 1% (previous year: 1%) to flation rates with regard to the present value of the defined benefit
alternatives. The majority of the investments on the active markets obligations has been mitigated in the case of Germany, for example,
are globally diversified, with certain country-specific focus areas. by switching to a component-based retirement benefit system and,
Real estate in Germany with a fair value of 1,358million (pre- in the case of the UK, by largely closing the defined benefit arrange-
vious year: 1,305million) is used by Deutsche Post AG itself. ments. In addition, fixed rates of increase have been set or increases
Asset-liability studies are performed at regular intervals in Ger- partially capped and/or lump sum payments provided for. There is
many, the UK and, amongst other places, the Netherlands, Switzer- also a positive correlation with interest rates.
land and the USA to examine the match between assets and liabilities;
the strategic allocation of plan assets is adjusted in line with this. Investment risk
The investment is in principle subject to a large number of risks; in
39.5 Risk particular, it is exposed to the risk that market prices may change.
A number of risks that are material to the company and the plans This is managed primarily by ensuring broad diversification and the
exist in relation to the defined benefit retirement plans. Opportun use of hedging instruments.
ities for risk mitigation are used in line with the specifics of the plans
concerned. Longevity risk
Longevity risk may arise in connection with the benefits payable
Interest rate risk inthe future due to a future increase in life expectancy. This is miti
A decrease (increase) in the respective discount rate would lead to gated in particular by using current standard mortality tables when
an increase (decrease) in the present value of the total obligation calculating the present value of the defined benefit obligations. The
and would in principle be accompanied by an increase (decrease) mortality tables used in Germany and the UK, for example, include
in the fair value of the fixed income securities contained in the plan an allowance for expected future increases in life expectancy.
assets. Other hedges are made, in some cases using derivatives.
40 Other provisions
Other provisions break down into the following main types of pro-
vision:
2015 2016 2015 2016 2015 2016

Other employee benefits 567 541 262 230 829 771
Restructuring provisions 98 72 246 181 344 253
Technical reserves (insurance) 454 435 215 235 669 670
Postage stamps 0 0 252 242 252 242
Tax provisions 0 0 73 113 73 113
Miscellaneous provisions 393 450 438 322 831 772
Other provisions 1,512 1,498 1,486 1,323 2,998 2,821
40.1 Changes in other provisions
m Other Technical
employee Restructuring reserves Postage Tax Miscellaneous
benefits provisions (insurance) stamps provisions provisions Total
Balance at 1January2016 829 344 669 252 73 831 2,998
Changes in consolidated group 0 0 0 0 1 4 3
Utilisation 727 122 62 252 32 359 1,554
Reversal 25 50 39 0 4 113 231
Unwinding of discount/changes in discount rate 7 0 4 0 0 8 19
Reclassification 1 0 0 0 0 0 1
Additions 680 79 112 242 78 397 1,588
Balance at 31December2016 771 253 670 242 113 772 2,821
The provision for other employee benefits primarily covers work- The provision for postage stamps covers outstanding obliga-
force reduction expenses (severance payments, transitional benefits, tions to customers for letter and parcel deliveries from postage
partial retirement etc.), stock appreciation rights (SARs) and jubilee stamps sold but still unused by customers. It is based on external
payments. expert reports and extrapolations made on the basis of internal data.
The restructuring provisions comprise all expenses resulting The provision is measured at the nominal value of the stamps issued.
from the restructuring measures within the US express business as Of the tax provisions, 47million (previous year: 28million)
well as in other areas of the Group. These measures relate primarily relates to VAT, 22million (previous year: 7million) to customs
to rentals for idle plant, litigation risks and expenses from the clos and duties and 44million (previous year: 38million) to other tax
ure of terminals, for example. provisions.
Technical reserves (insurance) mainly consist of outstanding
loss reserves and IBNR reserves; further details can be found in
note7.
147
40.2 Miscellaneous provisions

The miscellaneous provisions break down as follows:
m
2015 2016
Aircraft maintenance 118 149
Litigation costs 231 127
Risks from business activities 69 42
Miscellaneous other provisions 413 454
Miscellaneous provisions 831 772
Miscellaneous other provisions include a large number of individual

items.
40.3 Maturity structure

The maturity structure of the provisions recognised in financial year
2016 is as follows:
m More More More More

than 1 year than 2 years than 3 years than 4 years More
Up to 1 year to 2 years to 3 years to 4 years to 5 years than 5 years Total
2016
Other employee benefits 230 153 72 54 47 215 771
Restructuring provisions 181 7 14 12 8 31 253
Technical reserves (insurance) 235 219 90 54 5 67 670
Postage stamps 242 0 0 0 0 0 242
Tax provisions 113 0 0 0 0 0 113
Miscellaneous provisions 322 163 95 73 35 84 772
Total 1,323 542 271 193 95 397 2,821
41 Financial liabilities
2015 2016 2015 2016 2015 2016

Bonds 4,304 4,217 0 773 4,304 4,990
Amounts due to banks 11 20 155 138 166 158
Finance lease liabilities 141 181 26 28 167 209
Liabilities to Group companies 0 0 26 28 26 28
Financial liabilities at fair value through profit or loss 17 23 108 98 125 121
Other financial liabilities 152 130 238 399 390 529
Financial liabilities 4,625 4,571 553 1,464 5,178 6,035
The amounts due to banks mainly comprise current overdraft facil- The amounts reported under financial liabilities at fair value
ities due to various banks. through profit or loss relate to the negative fair values of derivative
financial instruments.
41.1 Bonds
The following table contains further details on the companys most
significant bonds. The bonds issued by Deutsche Post Finance B.V.
are fully guaranteed by Deutsche Post AG.
Significant bonds
2015 2016
Nominal Issue Carrying Carrying

coupon volume amount Fair value amount Fair value
% m Issuer m m m m
Bond 2012/2017 1.875 750 Deutsche Post Finance B.V. 748 769 749 758
Bond 2012/2022 2.950 500 Deutsche Post Finance B.V. 497 562 497 572
Bond 2012/2020 1.875 300 Deutsche Post AG 298 318 298 322
Bond 2016/2021 0.375 750 Deutsche Post AG 744 760
Bond 2016/2026 1.250 500 Deutsche Post AG 496 515
Convertible bond 2012/20191 0.600 1,000 Deutsche Post AG 954 1,004 405 428
1
This relates to the debt component of the convertible bond; the equity component is recognised in capital reserves.
The fair value of the listed convertible bond was 629million at the balance sheet date (previous year: 1,318million).
The 1billion convertible bond issued on 6December2012 has In addition, Deutsche Post AG was granted a call option allowing it
a conversion right which allows holders to convert the bond to repay the bond early at face value plus accrued interest if
into a predetermined number of Deutsche Post AG shares if Deutsche Post AGs share price more than temporarily exceeds 130%
Deutsche Post AGs share price more than temporarily exceeds 130% of the conversion price applicable at that time. The option can be
of the conversion price applicable at that time. The conversion right exercised between 6December2017 and 16November2019. For
may be exercised between 16January2013 and 22November2019. contractual reasons, the convertible bond was split into a debt com-
ponent and an equity component. The equity instrument in the
Conversion price amount of 74million is reported under capital reserves. The value
of the debt component on the issue date calculated in accordance
with IFRS32.31 amounted to 920million, including transaction
Conversion price on issue 20.74 costs and the call option granted. Transaction costs of 0.5million
Conversion price after adjustment in 20141 20.69 and 5.8million are included in the aforementioned amounts. In
Conversion price after adjustment in 20152 20.63 subsequent years, interest will be added to the carrying amount of
Conversion price after adjustment in 20163 20.60
the bond, up to the issue amount, using the effective interest method
and recognised in profit or loss.
1
Adjustment after payment of a dividend of 0.80 per share.
2
Adjustment after payment of a dividend of 0.85 per share. Various bond holders exercised their conversion right in De-
3
Adjustment after payment of a dividend of 0.85 per share.
cember2016. In total, bonds with a notional volume of 580mil-
lion were converted, resulting in 28million new shares that carry
dividend rights in financial year 2016.
149
41.2 Finance lease liabilities

Finance lease liabilities relate mainly to the following items:
Interest rate 2015 2016

Leasing partner % End of term Asset m m
Deutsche Post Immobilien GmbH, Germany Various leasing partners 5.09/5.23 2023/2028 Real estate 103 97
DHL Aviation NV/SA, Belgium Cercis Parc 4.25 2031 Real estate 0 38
DHL International (UK) Limited, United Kingdom Howard Lewisham Limited;
SEGROAirport Property Partnership 5.00 2030/2031 Real estate 6 23
Deutsche Post AG, Germany T-Systems International GmbH 4.25 2019 IT equipment 17 13
DHL Express (Austria) GmbH, Austria Raiffeisen Impuls Immobilien GmbH 3.62 2019 Real estate 9 9
Leased assets are recognised in property, plant and equipment at 42 Other liabilities
carrying amounts of 203million (previous year: 164million).
The notional amount of the minimum lease payments totals 42.1 Overview
259million (previous year: 210million).
m
Maturity structure 2015 2016
m Other non-current liabilities 234 372
Present value Minimum lease payments
(finance lease liabilities) (notional amount) Other current liabilities 4,255 4,292
Other liabilities 4,489 4,664
2015 2016 2015 2016
Up to 1 year 26 28 32 30
More than 1 year
to5 years 64 74 86 102
More than 5 years 77 107 92 127
42.2 Breakdown of other liabilities
Total 167 209 210 259
m
2015 2016
Tax liabilities 1,146 1,109
41.3 Other financial liabilities Incentive bonuses 653 679
Deferred income,
of which non-current: 116 (previousyear: 86) 376 398
m
Wages, salaries, severance payments 367 374
2015 2016
Compensated absences 322 335
Obligation from the third tranche of the share
Payables to employees and members of executive
buyback programme 0 195
bodies 180 203
Put option related to the acquisition of the
Social security liabilities 178 174
remaining interest in Giorgio Gori Group 27 41
Debtors with credit balances 146 159
Loan notes related to the acquisition of TAG Group 63 0
Liabilities from the sale of residential building
Loan notes related to the early termination
loans, of which non-current: 123 (previous year: 142) 144 125
ofafinance lease 18 14
Overtime claims 86 90
Miscellaneous financial liabilities 282 279
COD liabilities 56 61
Accrued rentals 42 45
Liabilities from cheques issued 37 28
Other compensated absences 30 28
Insurance liabilities 24 17
Liabilities from loss compensation 18 17
Accrued insurance premiums for damages
andsimilar liabilities 15 12
Miscellaneous other liabilities,
of which non-current: 133 (previous year: 6) 669 810
Of the tax liabilities, 603million (previous year: 603million) CASH FLOW DISCLOSURES
relates to VAT, 330million (previous year: 379million) to cus-
toms and duties, and 176million (previous year: 164million) to 44 Cash flow disclosures
other tax liabilities. The cash flow statement is prepared in accordance with IAS7, State-
The liabilities from the sale of residential building loans relate ment of Cash Flows, and discloses the cash flows in order to present
to obligations of Deutsche Post AG to pay interest subsidies to bor- the source and application of cash and cash equivalents. It distin-
rowers to offset the deterioration in borrowing terms in conjunction guishes between cash flows from operating, investing and financing
with the assignment of receivables in previous years, as well as pass- activities. Cash and cash equivalents are composed of cash, cheques
through obligations from repayments of principal and interest for and bank balances with a maturity of not more than three months,
residential building loans sold. and correspond to the cash and cash equivalents reported on the
Miscellaneous other liabilities include a large number of indi- balance sheet. The effects of currency translation and changes in the
vidual items. consolidated group are adjusted when calculating cash and cash
equivalents.
42.3 Maturity structure Non-cash transactions were entered into in the previous year
which were not included in the cash flow statement in accordance
m with IAS7.43 and 7.44. They related to 14 properties that were con-
2015 2016 tributed to Deutsche Post Pensions-Treuhand GmbH&Co. KG.
Up to 1 year 4,255 4,292 Although income was recognised as a result of the contribution, no
More than 1 year to 2 years 28 131 cash or cash equivalents were received.
More than 2 years to 3 years 33 44
More than 3 years to 4 years 6 30 44.1 Net cash from operating activities
More than 4 years to 5 years 6 20
Cash flows from operating activities are calculated by adjusting con-
More than 5 years 161 147
solidated net profit/loss for tax expenses, net financial income/net
finance costs and non-cash factors, as well as taxes paid, changes in
provisions and in other non-current assets and liabilities (net cash
from operating activities before changes in working capital). Ad-
There is no significant difference between the carrying amounts and justments for changes in working capital (excluding financial liabil-
the fair values of the other liabilities due to their short maturities or ities) result in net cash from or used in operating activities.
market interest rates. There is no significant interest rate risk be- Net cash from operating activities decreased from 3,444mil-
cause most of these instruments bear floating rates of interest at lion to 2,439million in financial year 2016, despite the 1,080mil-
market rates. lion rise in EBIT.
The depreciation, amortisation and impairment losses con-
43 Trade payables tained in EBIT are non-cash effects and are therefore eliminated.
Most of the trade payables have a maturity of less than one year. The They declined from 1,665million to 1,377million in the reporting
reported carrying amount of trade payables corresponds to their year: in the previous year, impairment losses of 310million had
fair value. been recognised in relation to NFE. The gains on the disposal of
non-current assets of 113million are not included in net cash from
operating activities in the cash flow statement. They have therefore
been adjusted in the net income from the disposal of non-current
assets and are presented instead in the cash flows from investing
activities. In the previous year, this item comprised income from
the sale of equity interests in Sinotrans and Kings Cross; in the re-
porting period, it comprised primarily income from the sale of the
remaining shares in Kings Cross.
Consolidated Financial Statements NOTES Balance sheet disclosures Cash flow disclosures
151
Non-cash income and expenses, which increased EBIT by The assets acquired and liabilities assumed in the course of
40million but did not lead to a cash inflow, were also adjusted. The company acquisitions undertaken in financial years 2016 and 2015
change in provisions increased significantly from 495million to are presented below, in accordance with IAS 7.40d, note2.
1,799million, above all because of further funding of pension ob-
ligations, which added 1billion. m
The change in current assets and liabilities led to a net cash 2015 2016
outflow of 75million. In the previous year, the change in this item Non-current assets 0 123
resulted in an inflow of 788million. The rise in receivables and Current assets
(excluding cash and cash equivalents) 0 97
other current assets in the reporting year in particular contributed
Non-current provisions and liabilities 0 15
to this development.
Current provisions and liabilities 0 118
Non-cash income and expenses

m
2015 2016 The following table shows the calculation of free cash flow:
Expense from remeasurement of assets 60 94
Income from remeasurement of liabilities 140 141 Calculation of free cash flow
Income from disposal of assets 31 26 m
Staff costs relating to equity-settled share-based 2015 2016
payments 37 45
Net cash from operating activities 3,444 2,439
Other 6 12
Sale of property, plant and equipment and
Non-cash income 68 40
intangible assets 175 265
Acquisition of property, plant and equipment
andintangible assets 2,104 1,966
Cash outflow arising from change in property,
44.2 Net cash used in investing activities plant and equipment and intangible assets 1,929 1,701
Cash flows from investing activities mainly result from cash re- Disposals of subsidiaries and other business units 15 35
ceived from disposals of non-current assets (divestitures) and cash Disposals of investments accounted for using
theequity method and other investments 223 82
paid for investments in non-current assets.
Acquisition of subsidiaries and other business units 0 304
Interest received from investing activities as well as cash inflows Acquisition of investments accounted for using
and outflows from changes in current financial assets are also in- theequity method and other investments 0 19
cluded. Cash inflow/outflow arising from divestitures/
At 1,643million, net cash used in investing activities exceeded acquisitions 238 206
Interest received 47 50
the previous years figure by 181million. The most significant item
Interest paid 76 138
was the cash paid to acquire property, plant and equipment, and
Net interest paid 29 88
intangible assets, which was down 138million on the previous year,
Free cash flow 1,724 444
at 1,966million. Investments were focused on expanding our hubs
in Leipzig, East Midlands, Brussels and Cincinnati in the Express
division. Proceeds from the disposal of non-current assets had an
offsetting effect, increasing from 437million to 838million. In Free cash flow is considered to be an indicator of how much cash is
addition to the sale of real estate, another key factor here was the available to the company for dividend payments or the repayment
repayment of state aid in the amount of 378million. of debt.
The cash inflow from the disposal of current financial assets Free cash flow dropped from 1,724million in the previous
totalling 205million in the previous year was offset by a cash out- year to 444million in 2016. This is attributable primarily to the
flow of 209million in the reporting period. In the previous year, significant decrease in net cash from operating activities due to pen-
money market funds of 200million had been sold, whilst in the sion obligation funding. The purchase of UK Mail mainly led to the
reporting year, surplus cash in the same amount was invested in cash outflow from acquisitions/divestitures rising to 206million.
money market funds. In the previous year, the proceeds from the sale of Sinotrans and
Kings Cross had resulted in a net cash inflow.
44.3 Net cash used in financing activities OTHER DISCLOSURES

At 1,233million, net cash used in financing activities was 134mil-
lion lower than in the previous year. 45 Risks and financial instruments of the Group
At 1,239million, the capital raised through the placement of
two bonds in April led to an increase in non-current financial li 45.1 Risk management
abilities. Net cash used to purchase treasury shares rose from As a result of its operating activities, the Group is exposed to finan-
70million to 836million on account of the share buyback pro- cial risks that may arise from changes in exchange rates, commodity
gramme. The largest payment item, at 1,027million, was the divi- prices and interest rates. Deutsche Post DHL Group manages these
dend payment to our shareholders. It fell by 3million year-on-year risks centrally through the use of non-derivative and derivative fi-
due to the increase in treasury shares at the time of the Annual nancial instruments. Derivatives are used exclusively to mitigate
General Meeting. non-derivative financial risks, and fluctuations in their fair value
By contrast, there was an increase in interest paid, to 138mil- should not be assessed separately from the underlying transaction.
lion; in the first quarter of 2015, interest rate swaps for bonds were The Groups internal risk guidelines govern the universe of
unwound, leading to a cash inflow. The accounting treatment of actions, responsibilities and necessary controls regarding the use of
these inflows is the same as for the hedged item. For this reason, derivatives. Financial transactions are recorded, assessed and pro-
only small interest payments of 76million were reported in the cessed using proven risk management software, which also regularly
previous year. documents the effectiveness of hedging relationships. Portfolios of
derivatives are regularly reconciled with the banks concerned.
44.4 Cash and cash equivalents To limit counterparty risk from financial transactions, the
After adjustment for currency effects and the changes in cash and Group may only enter into this type of contract with prime-rated
cash equivalents related to assets held for sale, the cash inflows and banks. The conditions for the counterparty limits individually as-
outflows described above produced cash and cash equivalents of signed to the banks are reviewed on a daily basis. The Groups Board
3,107million, note31. This represents a year-on-year decrease of of Management is informed internally at regular intervals about
501million. existing financial risks and the hedging instruments deployed to
mitigate them. Financial instruments are accounted for and meas-
ured in accordance with IAS39.
Information on risks and risk mitigation in relation to the
Groups defined benefit retirement plans can be found in note39.5.
Liquidity management
The ultimate objective of liquidity management is to secure the solv
ency of Deutsche Post DHL Group and all Group companies. Con-
sequently, 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 availability),
consisting of central short-term financial investments and commit-
ted credit lines, are the key control parameter. The target is to have
at least 2billion available in a central credit line.
The Group had central liquidity reserves of 3.9billion (previ-
ous year: 4.2billion) as at 31December2016, consisting of central
financial investments amounting to 1.9billion plus a syndicated
credit line of 2.0billion.
Consolidated Financial Statements NOTES Cash flow disclosures Other disclosures
153
The maturity structure of non-derivative financial liabilities

within the scope of IFRS7 based on cash flows is as follows:
Maturity structure of financial liabilities

Up to 1 year to 2 years to 3 years to 4 years to 5 years than 5 years
At 31December2016
Non-current financial liabilities 77 707 1,134 385 823 2,474
Other non-current liabilities 0 1 1 1 1 119
Non-current liabilities 77 708 1,135 386 824 2,593
Current financial liabilities 1,389
Trade payables 7,178
Other current liabilities 341
Current liabilities 8,908
At 31December2015
Non-current financial liabilities 82 943 635 1,096 368 1,984
Other non-current liabilities 0 2 2 1 1 138
Non-current liabilities 82 945 637 1,097 369 2,122
Current financial liabilities 445
Trade payables 7,069
Other current liabilities 355
Current liabilities 7,869
The maturity structure of the derivative financial instruments based

on cash flows is as follows:
Maturity structure of derivative financial instruments

Up to 1 year to 2 years to 3 years to 4 years to 5 years than 5 years
At 31December2016
Derivative receivables gross settlement
Cash outflows 2,124 231 0 0 0 0
Cash inflows 2,184 237 0 0 0 0
Net settlement
Cash inflows 6 0 0 0 0 0
Derivative liabilities gross settlement

Cash outflows 2,675 188 2 0 0 0
Cash inflows 2,602 175 1 0 0 0
Net settlement
Cash outflows 22 5 0 0 0 0
At 31December2015
Derivative receivables gross settlement
Cash outflows 1,527 233 0 0 0 0
Cash inflows 1,553 234 0 0 0 0
Net settlement
Cash inflows 11 3 0 0 0 0
Derivative liabilities gross settlement

Cash outflows 3,012 194 3 2 0 0
Cash inflows 2,939 187 3 1 0 0
Net settlement
Cash outflows 34 13 0 0 0 0
Derivative financial instruments entail both rights and obligations. In total, currency forwards and currency swaps with a notional
The contractual arrangement defines whether these rights and ob- amount of 5,737million (previous year: 5,514million) were out-
ligations can be offset against each other and therefore result in a standing at the balance sheet date. The corresponding fair value was
net settlement, or whether both parties to the contract will have to 1million (previous year: 44million). As at the reporting date,
perform their obligations in full (gross settlement). there were no currency options or cross-currency swaps.
Of the unrealised gains or losses from currency derivatives
Currency risk and currency management recognised in equity as at 31December2016 in accordance with
The international business activities of Deutsche Post DHL Group IAS39, 30million (previous year: 20million) is expected to be
expose it to currency risks from recognised or planned future trans- recognised in income in the course of 2017.
actions: IFRS7 requires the disclosure of quantitative risk data showing
Accounting-related currency risks arise from the measurement how profit or loss and equity are affected by changes in exchange
and settlement of items in foreign currencies that are recognised if rates at the reporting date. The impact of these changes in exchange
the exchange rate on the measurement or settlement date differs rates on the portfolio of foreign currency financial instruments is
from the rate on recognition. The resulting foreign exchange differ- assessed by means of a value-at-risk calculation (95% confidence/
ences directly impact on profit or loss. In order to mitigate this one-month holding period). It is assumed that the portfolio as at
impact as far as possible, all significant accounting-related currency the reporting date is representative for the full year. Effects of hypo-
risks within the Group are centralised at Deutsche Post AG through thetical changes in exchange rates on translation risk do not fall
the in-house bank function. The centralised risks are aggregated by within the scope of IFRS7. The following assumptions are used as a
Corporate Treasury to calculate a net position per currency, and basis for the sensitivity analysis:
hedged externally based on value-at-risk limits. The currency- Primary financial instruments in foreign currencies used by
related value at risk (95%/one-month holding period) for the port- Group companies are hedged by Deutsche Post AGs in-house bank,
folio totalled 5million (previous year: 5million) at the reporting with Deutsche Post AG setting and guaranteeing monthly exchange
date; the current limit was a maximum of 5million. rates. Exchange rate-related changes therefore have no effect on the
The notional amount of the currency forwards and currency profit or loss and equity of the Group companies. Where, in indi-
swaps used to manage accounting-related currency risks amounted vidual cases, Group companies are not permitted to participate in
to 2,425million at the reporting date (previous year: 3,532mil- in-house banking for legal reasons, their currency risks from pri-
lion); the fair value was 20million (previous year: 29million). mary financial instruments are fully hedged locally through the use
For simplification purposes, fair value hedge accounting was not of derivatives. They therefore have no impact on the Groups risk
applied to the derivatives used, which are reported as trading de position.
rivatives instead. Hypothetical changes in exchange rates have an effect on the
Currency risks arise from planned foreign currency trans fair values of Deutsche Post AGs external derivatives that is reported
actions if the future foreign currency transactions are settled at ex- in profit or loss; they also affect the foreign currency gains and
change rates that differ from the rates originally planned or calcu- losses from remeasurement at the closing date of the in-house bank
lated. These currency risks are also captured centrally in Corporate balances, balances from external bank accounts as well as internal
Treasury and managed on a rolling 24-month basis as part of a and external loans extended by Deutsche Post AG. The foreign cur-
hedging programme. The goal is to hedge an average of up to 50% rency value at risk of the foreign currency items concerned was
of all significant currency risks over a 24-month period. This makes 5million at the reporting date (previous year: 5million). In add
it possible to plan reliably and reduce fluctuations in earnings ition, hypothetical changes in exchange rates affect equity and the
caused by currency movements. At the reporting date, an average fair values of those derivatives used to hedge unrecognised firm
of around 36% of the foreign currency risk of the currencies con- commitments and highly probable forecast currency transactions,
cerned was hedged for the next 24 months. The relevant hedging which are designated as cash flow hedges. The foreign currency
transactions are recognised using cash flow hedge accounting, value at risk of this risk position was 76million as at 31Decem-
note45.3, Cash flow hedges. ber2016 (previous year: 77million). The total foreign currency
Currency risks also result from translating assets and liabilities value at risk was 80million at the reporting date (previous year:
of foreign operations into the Groups currency (translation risk). 76million). The total amount is lower than the sum of the individ-
The risks arising from the UKs referendum on leaving the European ual amounts given above, owing to interdependencies.
Union and the decline in the value of the Chinese renminbi were
hedged in part with currency forwards and currency swaps.
Consolidated Financial Statements NOTES Other disclosures
155
Interest rate risk and interest rate management In the interests of simplicity, some of the commodity price
No interest rate hedging instruments were recognised as at the bal- hedges are not recognised as cash flow hedges. For these derivatives,
ance sheet date. The proportion of financial liabilities with short- commodity price changes affect the fair values of the derivatives and,
term interest lock-ins, note41, amounts to 24% (previous year: consequently, the income statement. As in the previous year, if the
11%) of the total financial liabilities as at the reporting date. The underlying commodity prices had been 10% higher at the reporting
effect of potential interest rate changes on the Groups financial date, this would have increased the fair values in question and, con-
position remains insignificant. sequently, operating profit by 1million. A corresponding decline
The quantitative risk data relating to interest rate risk required in the commodity prices would have reduced the fair values of the
by IFRS7 is presented in the form of a sensitivity analysis. This derivatives and operating profit by 1million.
method determines the effects of hypothetical changes in market
interest rates on interest income, interest expense and equity as at Credit risk
the reporting date. The following assumptions are used as a basis The credit risk incurred by the Group is the risk that counterparties
for the sensitivity analysis: fail to meet their obligations arising from operating activities and
Primary variable-rate financial instruments are subject to from financial transactions. To minimise credit risk from financial
interest rate risk and must therefore be included in the sensitivity transactions, the Group only enters into transactions with prime-
analysis. Fixed-income financial instruments measured at amort rated counterparties. The Groups heterogeneous customer struc-
ised cost are not subject to interest rate risk. ture means that there is no risk concentration. Each counterparty
If the market interest rate level as at 31December2016 had is assigned an individual limit, the utilisation of which is regularly
been 100 basis points higher or lower, net finance costs would not monitored. A test is performed at the balance sheet dates to estab-
have been affected (previous year: decrease of 3million). All inter- lish whether an impairment loss needs to be charged on the positive
est rate derivatives had expired or been unwound at the reporting fair values due to the individual counterparties credit quality. This
date. No interest rate risk with an impact on equity was determined. was not the case for any of the counterparties as at 31Decem-
ber2016.
Market risk In 2016, a factoring agreement was in place on the basis of
As in the previous year, most of the risks arising from commodity which the bank is obliged to purchase existing and future trade
price fluctuations, in particular fluctuating prices for kerosene and receivables. The banks purchase obligation is limited to a maximum
marine diesel fuels, were passed on to customers via operating portfolio of receivables of 265million. Deutsche Post DHL Group
measures. However, the impact of the related fuel surcharges is de- can decide freely whether and to what extent the revolving notional
layed by one to two months, so that earnings may be affected tem- volume is utilised. The risks relevant to the derecognition of the
porarily if there are significant short-term fuel price variations. receivables include credit risk and the risk of delayed payment (late
In addition, a small number of commodity swaps for diesel and payment risk).
marine diesel fuel were used to control residual risks. The notional Credit risk represents primarily all the risks and rewards asso-
amount of these commodity swaps was 52million (previous year: ciated with ownership of the receivables. This risk is transferred in
89million) with a fair value of 4million (previous year: full to the bank against payment of a fixed fee for doubtful accounts.
29million). A significant late payment risk does not exist. Consequently, credit
IFRS7 requires the disclosure of a sensitivity analysis, present- risk is the main risk associated with the receivables, and this risk is
ing the effects of hypothetical commodity price changes on profit transferred in full to the bank against payment of a fixed fee. The
or loss and equity. receivables are therefore derecognised in their entirety. In financial
Changes in commodity prices affect the fair values of the de- year 2016, the Group recognised programme fees (interest, allow-
rivatives used to hedge highly probable forecast commodity pur- ances for doubtful accounts) of 1million as an expense in relation
chases (cash flow hedges) and the hedging reserve in equity. If, as to its continuing exposure. The notional volume of receivables fac-
at the reporting date, the commodity prices underlying the deriva- tored as at 31December2016 amounted to 159million.
tives had been 10% higher than the commodity prices determined Default risks are continuously monitored in the operating busi-
on the market, this would have increased the fair values and equity ness. The aggregate carrying amounts of financial assets represent
by 3million (previous year: 4million). A corresponding decline the maximum default risk. Trade receivables amounting to
in commodity prices would have had the opposite effect. 7,965million (previous year: 7,694million) are due within one
year. The following table gives an overview of receivables that are
past due:
Receivables that are past due Collateral of 35million is recognised in current financial as-
m sets (previous year: 84million). 8million (previous year: 8mil-
2015 2016 lion) of this amount relates to collateral deposited for US cross-
Carrying amount before impairment losses 7,910 8,133 border leases (QTE leases).
Neither impaired nor due at the reporting date 5,353 5,517
Past due and not impaired at the reporting date 45.3 Derivative financial instruments
Up to 30 days 874 1,027
31 to 60 days 459 426 Fair value hedges
61 to 90 days 197 187 There were no fair value hedges as at 31December2016. At the
91 to 120 days 74 70 reporting date, the unwinding of interest rate swaps resulted in car-
121 to 150 days 38 29
rying amount adjustments of 43million (previous year: 55mil-
151 to 180 days 16 11
lion). The adjustments in the carrying amount will be amortised
More than 180 days 13 0
using the effective interest method over the remaining term of the
liabilities and will reduce the interest expense in future.
Trade receivables changed as follows: Cash flow hedges

The Group uses currency forwards and currency swaps to hedge the
Receivables cash flow risk from future foreign currency operating revenue and
m expenses. The fair values of currency forwards and currency swaps
2015 2016 amounted to 28million at the reporting date (previous year:
15million). The hedged items will have an impact on cash flow
Gross receivables
At 1January 8,045 7,910 by 2018.
Changes 135 223 The risks from the purchase of diesel, which cannot be passed
At 31December 7,910 8,133 on to customers, were hedged using commodity swaps that will
Valuation allowances
affect cash flow by 2017. The fair value of these cash flow hedges
At 1January 220 216 amounted to 5million (previous year: 25million).
Changes 4 48
At 31December 216 168 NET INVESTMENT HEDGES
Carrying amount at 31December 7,694 7,965 Currency risks resulting from the translation of foreign operations
were hedged in 2016 with currency forwards and currency swaps
that will have an impact on cash flow in 2017 and 2018. The fair
All other financial instruments are neither past due nor impaired. value of these net investment hedges was 7million at the report-
Impairment losses of 23million (previous year: 25million) ing date (previous year: 0million).
were recognised for other assets.
45.4 Additional disclosures on the financial instruments used
45.2 Collateral intheGroup
188million (previous year: 554million) of collateral was recog- The Group classifies financial instruments in line with the respective
nised in non-current financial assets as at the balance sheet date. In balance sheet items. The following table reconciles the financial
the previous year, 358million related to the restricted cash trans- instruments to the categories given in IAS39 and their respective
ferred to a blocked account with Commerzbank AG for any pay- fair values as at the reporting date:
ments that might have been required due to the EU state aid pro-
ceedings. The blocked account was closed following a decision of
the General Court of the European Union dated 14July2016. An
amount of 101million relates primarily to liabilities in conjunction
with the settlement of Deutsche Post AGs residential building loans
(previous year: 111million), and 87million relates to sureties paid
(previous year: 85million).
157
Reconciliation of carrying amounts in the balance sheet at 31December2016

m Carrying amount Other financial
byIAS39 measurement instruments Fair value
Carrying amount category outsideIAS391 within IFRS7
ASSETS
Non-current financial assets at cost, of which 513 469 44 513
Available-for-sale financial assets 11
Loans and receivables 458
Non-current financial assets at fair value, of which 176 176 176
Fair value option 145
Derivatives designated as hedges 10
Trade receivables at cost, of which 7,965 7,965 n.a.
Loans and receivables 7,965
Other current assets at cost, of which 852 852 n.a.
Other current assets outside IFRS7 1,324 n.a.
Current financial assets at cost, of which 80 73 7 n.a.
Current financial assets at fair value, of which 294 294 294
Trading 75
Cash and cash equivalents, of which 3,107 3,107 n.a.
Total ASSETS 14,311

Non-current financial liabilities at cost, of which2 4,548 4,367 181 5,102
Other financial liabilities 4,367
Non-current financial liabilities at fair value, of which 23 23 23
Earn-out obligation 11
Other non-current liabilities at cost, of which 123 123 123
Other financial liabilities 123
Other non-current liabilities outside IFRS7 249 n.a.
Current financial liabilities at cost, of which 1,366 1,338 28 781
Current financial liabilities at fair value, of which 98 98 98
Trading 38
Earn-out obligation 4
Trade payables at cost, of which 7,178 7,178 n.a.
Other current liabilities at cost, of which 313 313 n.a.
Other current liabilities outside IFRS7 3,979 n.a.
Total EQUITY AND LIABILITIES 17,877
1
Relates to lease receivables or liabilities.
2
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 the unwound interest rate swaps were adjusted. One of the Deutsche Post Finance B.V. bonds was designated
as a fair value hedge as at the reporting date. A basis adjustment was recognised for the effective portion of the hedge in accordance with IAS39.
The bonds are therefore not recognised fully at either fair value or amortised cost. The convertible bond issued by Deutsche Post AG in December2012
had a fair value of 629million as at the balance sheet date. The fair value of the debt component at the balance sheet date was 428million.
Reconciliation of carrying amounts in the balance sheet at 31December2015

m Carrying amount Other financial
byIAS39 measurement instruments Fair value
Carrying amount category outsideIAS391 within IFRS7
ASSETS
Non-current financial assets at cost, of which 867 817 50 867
Non-current financial assets at fair value, of which 246 246 246
Fair value option 128
Trade receivables at cost, of which 7,694 7,694 n.a.
Other current assets at cost, of which 868 868 n.a.
Other current assets outside IFRS7 1,304 n.a.
Current financial assets at cost, of which 110 105 5 n.a.
Current financial assets at fair value, of which 69 69 69
Trading 7
Cash and cash equivalents, of which 3,608 3,608 n.a.
Total ASSETS 14,766

Non-current financial liabilities at cost, of which2 4,608 4,467 141 5,192
Non-current financial liabilities at fair value, of which 17 17 17
Other non-current liabilities at cost, of which 142 142 142
Other non-current liabilities outside IFRS7 92 n.a.
Current financial liabilities at cost, of which 445 419 26 n.a.
Current financial liabilities at fair value, of which 108 108 108
Trading 46
Trade payables at cost, of which 7,069 7,069 n.a.
Other current liabilities at cost, of which 355 355 n.a.
Other current liabilities outside IFRS7 3,900 n.a.
Total EQUITY AND LIABILITIES 16,736
1
Relates to lease receivables or liabilities.
2
The Deutsche Post AG and Deutsche Post Finance B.V. bonds are carried at amortised cost. Where required, the carrying amounts of the unwound
interest rate swaps were adjusted. One of the Deutsche Post Finance B.V. bonds was designated as a fair value hedge as at the reporting date.
A basis adjustment was recognised for the effective portion of the hedge in accordance with IAS39. The bonds are therefore not recognised fully at either
fair value or amortised cost. The convertible bond issued by Deutsche Post AG in December2012 had a fair value of 1,318million as at the balance
sheet date. The fair value of the debt component at the balance sheet date was 1,004million.
159
If there is an active market for a financial instrument (e.g., stock As no future cash flows can be reliably determined, the fair
exchange), the fair value is determined by reference to the market values cannot be determined using valuation techniques. There are
or quoted exchange price at the balance sheet date. If no fair value no plans to sell or derecognise significant shares of the available-for-
is available in an active market, the quoted prices in an active mar- sale financial assets reported as at 31December2016 in the near
ket for similar instruments or recognised valuation techniques are future.
used to determine fair value. The valuation techniques used incor- Available-for-sale financial assets measured at fair value relate
porate the key factors determining the fair value of the financial to equity and debt instruments.
instruments using valuation parameters that are derived from the Financial assets at fair value through profit or loss include se-
market conditions as at the balance sheet date. Counterparty risk is curities to which the fair value option was applied, in order to avoid
analysed on the basis of the current credit default swaps signed by accounting inconsistencies. An active market exists for the assets,
the counterparties. The fair values of other non-current receivables and they are recognised at fair value.
and held-to-maturity financial investments with remaining matur- The following table presents financial instruments recognised
ities of more than one year correspond to the present values of the at fair value and financial instruments whose fair value is required
payments related to the assets, taking into account current interest to be disclosed, both presented by the level in the fair value hier
rate parameters. archy to which they are assigned.
Cash and cash equivalents, trade receivables and other receiv- The simplification option under IFRS7.29a was exercised for
ables have predominantly short remaining maturities. As a result, cash and cash equivalents, trade receivables, other assets, trade pay-
their carrying amounts as at the reporting date are approximately ables and other liabilities with predominantly short maturities.
equivalent to their fair values. Trade payables and other liabilities Their carrying amounts as at the reporting date are approximately
generally have short remaining maturities; the recognised amounts equivalent to their fair values. Not included are financial invest-
approximately represent their fair values. ments in equity instruments for which there is no quoted price in
The financial assets classified as available for sale include shares an active market and which therefore have to be measured at cost.
in partnerships and corporations for which there is no active market
in the amount of 11million (previous year: 11million).
Financial assets and liabilities

m
Class Level 11 Level 22 Level 33 Total
31December2016
Non-current financial assets 166 512 0 678
Current financial assets 200 94 0 294
Financial assets 366 606 0 972
Non-current liabilities 4,730 384 11 5,125
Current liabilities 781 94 4 879
Financial liabilities 5,511 478 15 6,004
31December2015
Non-current financial assets 153 866 83 1,102
Current financial assets 27 42 0 69
Financial assets 180 908 83 1,171
Non-current liabilities4 4,871 338 0 5,209
Current liabilities4 0 108 0 108
Financial liabilities 4,871 446 0 5,317
1
Quoted prices for identical instruments in active markets.
2
Inputs other than quoted prices that are directly or indirectly observable for instruments.
3
Inputs not based on observable market data.
4
Level 1 mainly comprises equity instruments measured at fair value the Black-Scholes option pricing model. All significant inputs used
and debt instruments measured at amortised cost. to measure derivatives are observable on the market.
In addition to financial assets and financial liabilities measured Level 3 comprises mainly the fair values of equity investments
at amortised cost, commodity, interest rate and currency derivatives and subsequent payments associated with M&A transactions. They
are reported under Level 2. The fair values of the derivatives are are measured using recognised valuation models, taking plausible
measured on the basis of discounted expected future cash flows, assumptions into account. Financial ratios strongly influence the
taking into account forward rates for currencies, interest rates and fair values of assets and liabilities. Increasing financial ratios lead to
commodities (market approach). For this purpose, price quotations higher fair values, while decreasing financial ratios result in lower
observable on the market (exchange rates, interest rates and com- fair values.
modity prices) are imported from information platforms customary No financial instruments were transferred between levels in
in the market into the treasury management system. The price financial year 2016. The following table shows the effect on net gains
quotations reflect actual transactions involving similar instruments and losses of the financial instruments categorised within level 3 as
on an active market. Any currency options used are measured using at the reporting date:
Unobservable inputs (Level 3)

m 2015 2016
Assets Liabilities Assets Liabilities
Derivatives, Derivatives,
Equity instruments Debt instruments of which equity derivatives Equity instruments Debt instruments of which equity derivatives
At 1January 132 0 1 83 0 0
Gains and losses
(recognised in profit or loss)1 0 0 1 0 0 0
Gains and losses
(recognised in OCI)2 38 0 0 0 0 0
Additions 0 0 0 0 15 0
Disposals 95 0 0 80 0 0
Currency translation effects 8 0 0 3 0 0
At 31December 83 0 0 0 15 0
1
Fair value losses are presented in finance costs, fair value gains in financial income.
2
Unrealised gains and losses were recognised in the IAS39 revaluation reserve.
The net gains and losses on financial instruments classified in ac- The net gains and losses mainly include the effects of the fair value
cordance with the individual IAS39 measurement categories are as measurement, impairment and disposals (disposal gains/losses) of
follows: financial instruments. Dividends and interest are not taken into
account for the financial instruments measured at fair value through
Net gains and losses by measurement category profit or loss. Income and expenses from interest and commission
m agreements of the financial instruments not measured at fair value
2015 2016 through profit or loss are explained in the income statement disclos
Loans and receivables 136 127 ures.
Available-for-sale financial assets
The following tables show the impact of netting agreements
Net gains (+)/losses () recognised in OCI 54 4 based on master netting arrangements or similar agreements on
Net gains (+)/losses () reclassified to profit financial assets and financial liabilities as at the reporting date:
orloss 172 63
Net gains (+)/losses () recognised in profit
orloss 10 8
Financial assets and liabilities at fair value

throughprofit or loss
Trading 0 4
Fair value option 0 0
161
Offsetting assets
m Assets and liabilities not set off
in the balance sheet
Recognised Liabilities that

Gross amount Gross amount netamount donot meet Collateral
ofassets ofliabilities set off ofassets set off offsetting criteria received Total
At 31December2016
Derivative financial assets1 104 0 104 67 0 37
Trade receivables 8,015 50 7,965 0 0 7,965
Funds 384 331 53 0 0 53
At 31December2015
Derivative financial assets1 52 0 52 51 0 1
Trade receivables 7,850 156 7,694 0 0 7,694
Funds 528 185 343 0 0 343
1
Excluding derivatives from M&A transactions.
Offsetting liabilities
m Assets and liabilities not set off
in the balance sheet
Recognised Assets that

Gross amount Gross amount netamount donotmeet Collateral
ofliabilities ofassets set off ofliabilities set off offsetting criteria provided Total
At 31December2016
Derivative financial liabilities1 107 0 107 67 0 40
Trade payables 7,228 50 7,178 0 0 7,178
Funds 331 331 0 0 0 0
At 31December2015
Derivative financial liabilities1 124 0 124 51 0 73
Trade payables 7,225 156 7,069 0 0 7,069
Funds 185 185 0 0 0 0
1
Excluding derivatives from M&A transactions.
Financial assets and liabilities are set off on the basis of netting Settlement processes arising from services related to postal
agreements (master netting arrangements) only if an enforceable deliveries are subject to the Universal Postal Convention and the
right of set-off exists and settlement on a net basis is intended as at Interconnect Remuneration Agreement Europe (IRA-E). These
the reporting date. agreements, particularly the settlement conditions, are binding on
If the right of set-off is not enforceable in the normal course of all public postal operators for the specified contractual arrange-
business, the financial assets and liabilities are recognised in the ments. Imports and exports between the parties to the agreement
balance sheet at their gross amounts as at the reporting date. The during a calendar year are summarised in an annual statement of
master netting arrangement creates a conditional right of set-off account and presented on a net basis in the final annual statement.
that can only be enforced by taking legal action. Receivables and payables covered by the Universal Postal Conven-
To hedge cash flow and fair value risks, Deutsche Post AG enters tion and the IRA-E agreement are presented on a net basis at the
into financial derivative transactions with a large number of finan- reporting date. In addition, funds are presented on a net basis if a
cial services institutions. These contracts are subject to a standard- right of set-off exists in the normal course of business. The tables
ised master agreement for financial derivative transactions. This show the receivables and payables before and after offsetting.
agreement provides for a conditional right of set-off, resulting in
the recognition of the gross amount of the financial derivative trans-
actions at the reporting date. The conditional right of set-off is pre-
sented in the table.
46 Contingent liabilities Maturity structure of minimum lease payments

The Groups contingent liabilities break down as follows: m
2015 2016
Contingent liabilities Up to 1 year 1,725 1,853
m More than 1 year to 2 years 1,298 1,410
2015 2016 More than 2 years to 3 years 1,019 1,027
Guarantee obligations 87 91 More than 3 years to 4 years 764 826
Warranties 74 59 More than 4 years to 5 years 534 597
Liabilities from litigation risks 69 87 More than 5 years 2,242 2,475
Other contingent liabilities 1,068 746 Total 7,582 8,188
Total 1,298 983
The present value of discounted minimum lease payments is

The reduction in contingent liabilities is attributable primarily to 7,082million (previous year: 6,311million), based on a discount
the discontinuation of the obligation underlying the state aid deci- factor of 3.25% (previous year: 4.25%). Overall, rental and lease
sion amounting to 440million (value at 31December2015). In a payments amounted to 3,019million (previous year: 2,982mil-
judgement dated 14July2016, the General Court of the European lion), of which 2,143million (previous year: 2,096million) re-
Union (EGC) set aside the European Commissions decision dated lates to non-cancellable leases. Future lease obligations from non-
25January2012 in an action brought by the Federal Republic of cancellable leases are attributable primarily to Deutsche Post
Germany (the federal government), see also note48. Immobilien GmbH in the amount of 2,789million (previous year:
Other contingent liabilities also include a potential obligation 2,596million).
to make settlement payments in the USA, which had arisen mainly The purchase obligation for investments in non-current assets
in 2014 as a result of a change in the estimated settlement payment amounts to 234million (previous year: 140million).
obligations assumed in the context of the restructuring measures in
the USA, and other tax-related obligations, note48. 48 Litigation
Many of the postal services rendered by Deutsche Post AG and its
47 Other financial obligations subsidiaries are subject to sector-specific regulation by the Bundes
In addition to provisions, liabilities and contingent liabilities, there netzagentur (German federal network agency) pursuant to the Post
are other financial obligations amounting to 8,188million (previ- gesetz (PostG German Postal Act). As the regulatory authority, the
ous year: 7,582million) from non-cancellable operating leases as Bundesnetzagentur approves or reviews such prices, formulates the
defined by IAS17. terms of downstream access and has special supervisory powers to
The Groups future non-cancellable payment obligations under combat market abuse. This general regulatory risk could lead to a
leases are attributable to the following asset classes: decline in revenue and earnings in the event of negative decisions.
Legal risks arise, amongst other things, from pending admin-
Lease obligations istrative court appeals by an association against the price approvals
m granted by the Bundesnetzagentur under the price cap procedure for
2015 2016 2016 to 2018. On 5August2015, the Federal Administrative Court
Land and buildings 5,929 6,657 decided on the appeals by the association against the price approvals
Aircraft 1,072 909 granted by the Bundesnetzagentur under the price cap procedure
Transport equipment 472 495 for 2003, 2004 and 2005. The Federal Administrative Court re-
Technical equipment and machinery 70 79 voked the price approvals concerned in relation to the association
Other equipment, operating and office equipment 32 41
as a customer of Deutsche Post AG. However, the Bundesnetzagentur
IT equipment 7 7
price approvals concerned remain applicable to the general public
Total 7,582 8,188
and may no longer be contested. In 2016, the association withdrew
its actions against the price cap approvals for 2008 and 2013.
In its decision dated 14June2011, the Bundesnetzagentur
The increase in lease obligations by 606million to 8,188million concluded that FIRST MAIL Dsseldorf GmbH, a subsidiary of
is mainly due to the conclusion of new real estate leases. Deutsche Post AG, and Deutsche Post AG had contravened the dis-
counting and discrimination prohibitions under the Postgesetz. The
companies were instructed to remedy the breaches that had been
identified. Both companies appealed against the ruling. Further-
more, FIRST MAIL Dsseldorf GmbH filed an application to suspend
the execution of the ruling until a decision was reached in the prin-
163
cipal proceedings. The Cologne Administrative Court and the counts, etc.). Deutsche Post AG does not believe that the legislative
Mnster Higher Administrative Court both dismissed this applica- amendment fully complies with the applicable provisions of Euro-
tion. FIRST MAIL Dsseldorf GmbH discontinued its mail delivery pean Community law. Due to the legal uncertainty resulting from
operations at the end of 2011 and retracted its appeal on 19Decem- the new legislation in certain instances, Deutsche Post AG is endeav-
ber2011. Deutsche Post AG continues to pursue its appeal against ouring to clarify certain key issues with the tax authorities, note46.
the Bundesnetzagentur ruling. On 30June2014, DHL Express France received a statement
In its ruling of 30April2012, the Bundesnetzagentur deter- ofobjections from the French competition authority alleging anti
mined that Deutsche Post AG had contravened the discrimination competitive conduct in the domestic express business, a business
provisions under the Postgesetz by charging different fees for the which had been divested in June2010. On 15December2015,
transport of identical invoices and invoices containing different Deutsche Post DHL Group received the decision of the French au-
amounts. Deutsche Post AG was requested to discontinue the dis- thority regarding the fuel surcharges and price fixing. The decision
crimination determined immediately, but no later than 31Decem- has been appealed by the Group. Further details cannot be given at
ber2012. The ruling was implemented on 1January2013. Deutsche this point in time.
Post does not share the legal opinion of the Bundesnetzagentur and In view of the ongoing or announced legal proceedings men-
appealed the ruling. tioned above, no further details are given on their presentation in
In a ruling on 28June2016, the Bundesnetzagentur determined the financial statements.
that the prices for the Dialogpost Impulspost product did not
meet the pricing standards of the Postgesetz. The agency ordered the 49 Share-based payment
prices to be adjusted immediately (adjustment request). According Assumptions regarding the price of Deutsche Post AGs shares and
to the Bundesnetzagentur, the prices did not cover the cost of effi- assumptions regarding employee fluctuation are taken into account
ciently providing the service and had anti-competitive effects. On when measuring the value of share-based payments for executives.
26July2016, the Bundesnetzagentur barred Deutsche Post from All assumptions are reviewed on a quarterly basis. The staff costs are
charging these prices and declared the prices invalid (prohibitive recognised pro rata in profit or loss to reflect the services rendered
order), since at this time Deutsche Post had not yet complied with as consideration during the vesting period (lock-up period).
the adjustment request. Deutsche Post does not share the legal opin-
ion of the Bundesnetzagentur and filed an appeal with the Cologne 49.1 Share-based payment for executives (Share Matching Scheme)
Administrative Court against the orders issued by the agency. Under the share-based payment system for executives (Share
In a judgement dated 14July2016, the General Court of the Matching Scheme), certain executives receive part of their variable
European Union (EGC) set aside the European Commissions state remuneration for the financial year in the form of shares of
aid decision dated 25January2012 in an action brought by the Fed- Deutsche Post AG in the following year (deferred incentive shares).
eral Republic of Germany. In its state aid decision, the European All Group executives can specify an increased equity component
Commission had argued that the financing of civil servant pensions individually by converting a further portion of their variable remu-
in part constituted unlawful state aid that had to be repaid to the neration for the financial year (investment shares). After a four-year
federal government; further details can be found in notes 49 and 51 lock-up period during which the executive must be employed by
in the 2015 Annual Report. In their actions, Deutsche Post AG and the the Group, they again receive the same number of Deutsche Post AG
federal government asserted that the state aid decision was unlawful. shares (matching shares). Assumptions are made regarding the con-
The EGC has now followed this argument in the action brought by version behaviour of executives with respect to their relevant bonus
the federal government. The action brought by Deutsche Post AG portion. Share-based payment arrangements are entered into
is still pending. Since the European Commission did not file an eachyear, with 1December (from financial year 2015; until 2014:
appeal against the EGCs judgement dated 14July2016, that decision 1January) of the respective year and 1April of the following year
is now legally binding. The state aid decision of the European Com- being the grant dates for each years tranche. Whereas incentive
mission is therefore null and void with final effect and there are no shares and matching shares are classified as equity-settled share-
longer any grounds for the obligation to repay the alleged state aid based payments, investment shares are compound financial instru-
under the state aid decision. It was therefore possible to release the ments and the debt and equity components must be measured
amount of 378million deposited in a trustee account. separately. However, in accordance with IFRS2.37, only the debt
Since 1July2010, as a result of the revision of the relevant tax component is measured due to the provisions of the Share Matching
exemption provisions, the VAT exemption has only applied to those Scheme. The investment shares are therefore treated as cash-settled
specific universal services in Germany that are not subject to indi- share-based payments.
vidually negotiated agreements or provided on special terms (dis-
Share Matching Scheme
2011 2012 2013 2014 2015 2016

tranche tranche tranche tranche tranche tranche
Grant date of incentive shares and associated
matching shares 1Jan.2011 1Jan.2012 1Jan.2013 1Jan.2014 1Dec.2015 1Dec.2016
Grant date of matching shares awarded for investment shares 1 Apr. 2012 1 Apr. 2013 1 Apr. 2014 1 Apr. 2015 1 Apr. 2016 1 Apr. 2017
Term months 63 63 63 63 52 52
End of term March2016 March2017 March2018 March2019 March2020 March2021
Share price at grant date (fair value)

Incentive shares and associated matching shares 12.90 12.13 17.02 25.91 27.12 29.04
Matching shares awarded for investment shares 14.83 18.22 27.18 29.12 23.98 31.501
Number of deferred incentive shares thousands 660 479 337 332 366 2452
Number of matching shares expected

Deferred incentive shares thousands n.a. 431 303 299 329 220
Investment shares thousands n.a. 709 567 596 848 564
Matching shares issued thousands 1,522
1
Estimated provisional amount, will be determined on 1April2017.
2
Expected number.
The company increased its share capital in 2015 to settle claims to within a period of two years provided an absolute or relative per-
matching shares under the 2011 tranche. In addition, treasury formance target is achieved at the end of the waiting period. Any
shares were acquired at an average purchase price per share of SARs not exercised during this two-year period will expire. To de-
24.62 for a total of 32million to settle the 2015 tranche. The treas- termine how many if any of the granted SARs can be exercised,
ury shares were issued to the executives concerned in April and the average share price or the average index is compared for the
May2016. reference period and the performance period. The reference period
A total of 63million (previous year: 65million) was recog- comprises the last 20 consecutive trading days before the issue date.
nised in capital reserves for the granting of variable remuneration The performance period is the last 60 trading days before the end
components under this system, note34. of the waiting period. The average (closing) price is calculated as
the average closing price of Deutsche Post shares in Deutsche Brse
49.2 Long-Term Incentive Plan (2006 LTIP) for members of the Board AGs Xetra trading system.
ofManagement The absolute performance target is met if the closing price of
Since 1July2006, the members of the Board of Management have Deutsche Post shares is at least 10, 15, 20, or 25% above the issue
received stock appreciation rights (SARs) under the 2006 LTIP. Each price. The relative performance target is tied to the performance of
SAR under the 2006 LTIP entitles the holder to receive a cash settle- the shares in relation to the STOXX Europe 600 Index (SXXP; ISIN
ment equal to the difference between the average closing price of EU0009658202). It is met if the share price equals the index per-
Deutsche Post shares during the last five trading days before the formance or if it outperforms the index by at least 10%.
exercise date and the issue price of the SAR. A maximum of four out of every six SARs can be earned via
The members of the Board of Management each invest 10% of the absolute performance target, and a maximum of two via the
their fixed annual remuneration (annual base salary) as a personal relative performance target. If neither an absolute nor a relative per-
financial investment every year. The number of SARs issued to the formance target is met by the end of the waiting period, the SARs
members of the Board of Management is determined by the Super- attributable to the related tranche will expire without replacement
visory Board. Following a four-year waiting period that begins on or compensation.
the issue date, the SARs granted can be fully or partly exercised
165
2006 LTIP
2011 2012 2013 2014 2015 2016

tranche tranche tranche tranche tranche tranche
Issue date 1July2011 1July2012 1August 2013 1September 2014 1September 2015 1September 2016
Issue price () 12.67 13.26 20.49 24.14 25.89 28.18
Waiting period expires 30June2015 30June2016 31July2017 31August 2018 31August 2019 31August 2020
The members of the Board of Management were granted a total of A provision for the 2006 LTIP and the SAR Plan was recognised
1,202,376 SARs in financial year 2016 (previous year: 1,936,470 as at the balance sheet date in the amount of 134million (previous
SARs) with a total value of 6.25million at the time of issue (1Sep- year: 175million), of which 41million (previous year: 36mil-
tember2016) (previous year: 6.66million as at 1September2015). lion) was attributable to the Board of Management. Of the total
Further disclosures on share-based payment for members of the provision, 24million (previous year: 15million) related to rights
Board of Management can be found in note50.2. exercisable at the reporting date.
49.3 SAR Plan for executives 49.4 Performance Share Plan for executives
From July2006 to August2013, selected executives received annual The Annual General Meeting on 27May2014 resolved to introduce
tranches of SARs under the SAR Plan. This allowed them to receive the Performance Share Plan (PSP) for executives. This plan replaces
a cash payment within a defined period in the amount of the differ- the former share-based payment system (SAR Plan) for executives.
ence between the respective price of Deutsche Post shares and the Whereas the SAR Plan involved cash-settled share-based payments,
fixed issue price if demanding performance targets are met (see under the PSP shares are issued to participants at the end of the
disclosures on the 2006 LTIP for members of the Board of Manage- waiting period. Under the PSP, the granting of the shares at the end
ment). Due to the strong share price performance since SARs were of the waiting period is also linked to the achievement of demand-
issued in 2012, all of the related performance targets were met on ing performance targets. The performance targets under the PSP are
expiry of the waiting period on 30June2016. All SARs under this identical to the performance targets under the LTIP for members of
tranche were therefore able to be exercised. Most executives exer- the Board of Management.
cised them as early as 2016. Starting in 2014, SARs were no longer Performance Share Units (PSUs) were issued to selected execu
issued to executives under the SAR Plan. The Performance Share tives under the PSP for the first time on 1September2014. It is not
Plan (PSP) for executives replaces the SAR Plan. All earlier tranches planned that members of the Board of Management will participate
issued under the SAR Plan remain valid. in the PSP. The Long-Term Incentive Plan (2006 LTIP) for members
More details on the SAR Plan tranches are shown in the follow- of the Board of Management remains unchanged.
ing table: In the consolidated financial statements as at 31December
2016, a total of 17million (previous year: 10million) has been
SAR Plan added to capital reserves for the purposes of the plan, with an equal
2011 2012 2013
amount recognised in staff costs, notes 14 and 34.
tranche tranche tranche The value of the PSP is measured using actuarial methods based
Issue date 1July2011 1July2012 1August2013 on option pricing models (fair value measurement).
Issue price () 12.67 13.26 20.49
Waiting period expires 30June2015 30June2016 31July2017
The fair value of the SAR Plan and the 2006 LTIP was determined
using a stochastic simulation model. As a result, an expense of
94million was recognised for financial year 2016 (previous year:
33million).
Performance Share Plan
2014 2015 2016

tranche tranche tranche
Grant date 1Sept.2014 1Sept.2015 1Sept.2016
Exercise price 24.14 25.89 28.18
Waiting period expires 31Aug. 2018 31Aug. 2019 31Aug. 2020
Risk-free interest rate 0.11% 0.10% 0.62%
Initial dividend yield of Deutsche Post shares 3.52% 3.28% 3.73%
Yield volatility of Deutsche Post shares 23.46% 24.69% 23.94%
Yield volatility of Dow Jones EURO STOXX 600 Index 10.81% 16.40% 16.83%
Covariance of Deutsche Post shares to Dow Jones EURO STOXX 600 Index 1.74% 2.94% 2.93%
Quantity
Rights outstanding at 1January2016 4,269,288 4,213,836 0
Rights granted 0 0 3,808,278
Rights lapsed 276,408 181,326 25,500
Rights outstanding at 31December2016 3,992,880 4,032,510 3,782,778
Future dividends were taken into account, based on a moderate Relationships with KfW
increase in dividend distributions over the respective measurement KfW supports the Federal Republic in continuing to privatise com-
period. panies such as Deutsche Post AG or Deutsche Telekom AG. In 1997,
The average remaining maturity of the outstanding PSUs as at KfW, together with the Federal Republic, developed a placeholder
31December2016 was 32 months. model as a tool to privatise government-owned companies. Under
this model, the Federal Republic sells all or part of its investments
50 Related party disclosures to KfW with the aim of fully privatising these state-owned com
panies. On this basis, KfW has purchased shares of Deutsche Post AG
50.1 Related party disclosures (companies and Federal Republic from the Federal Republic in several stages since 1997 and exe-
ofGermany) cutedvarious capital market transactions using these shares. KfWs
All companies classified as related parties that are controlled by the current interest in Deutsche Post AGs share capital is 20.5%.
Group or over which the Group can exercise significant influence Deutsche Post AG is thus considered to be an associate of the Federal
are recorded in the list of shareholdings, which can be accessed on Republic.
the website, dpdhl.com/en/investors, together with information on
the equity interest held, their equity and their net profit or loss for Relationships with Bundesanstalt fr
the period, broken down by geographical areas. PostundTelekommunikation
Deutsche Post AG maintains a variety of relationships with the The Bundesanstalt fr Post und Telekommunikation (BAnstPT)
Federal Republic of Germany (Federal Republic) and other com is a government agency and falls under the technical and legal
panies controlled by the Federal Republic of Germany. supervision of the German Federal Ministry of Finance. Under the
The Federal Republic is a customer of Deutsche Post AG and as Bundesanstalt-Reorganisationsgesetz (German Federal Agency Re-
such uses the companys services. Deutsche Post AG has direct busi- organisation Act), which entered into force on 1December2005,
ness relationships with the individual public authorities and other the Federal Republic directly undertakes the tasks relating to hold-
government agencies as independent individual customers. The ings in Deutsche Bundespost successor companies through the
services provided for these customers are insignificant in respect of Federal Ministry of Finance. It is therefore no longer necessary for
Deutsche Post AGs overall revenue. the BAnstPT to perform the tasks associated with ownership. The
BAnstPT manages the social facilities such as the postal civil service
health insurance fund, the recreation programme, the Versorgungs
anstalt der Deutschen Bundespost (VAP) and the welfare service
forDeutsche Post AG, Deutsche Postbank AG and Deutsche Tele-
komAG, as well as setting the objectives for social housing. Since
1January2013, the BAnstPT has undertaken the tasks of the Post
beamtenversorgungskasse (postal civil servant pension fund). Fur-
ther disclosures on the postal civil servant pension fund and the VAP
167
can be found in notes 7 and 39. The tasks mentioned are performed Relationships with Deutsche Bahn AG and its subsidiaries
on the basis of agency agreements. In 2016, Deutsche Post AG was Deutsche Bahn AG is wholly owned by the Federal Republic. Owing
invoiced for 103million (previous year: 104million) in instal- to this control relationship, Deutsche Bahn AG is a related party to
ment payments relating to services provided by the BAnstPT. Deutsche Post AG. Deutsche Post DHL Group has various business
relationships with the Deutsche Bahn Group. These mainly consist
Relationships with the German Federal Ministry of Finance of transport service agreements.
In financial year 2001, the German Federal Ministry of Finance and
Deutsche Post AG entered into an agreement that governs the terms Relationships with pension funds
and conditions of the transfer of income received by Deutsche Post AG The real estate with a fair value of 1,358million (previous year:
from the levying of the settlement payment under the Gesetze ber 1,305million), of which Deutsche Post Pensions-Treuhand
den Abbau der Fehlsubventionierung im Wohnungswesen (German GmbH&Co. KG, Deutsche Post Altersvorsorge Sicherung e.V.&Co.
Acts on the Reduction of Misdirected Housing Subsidies) relating Objekt Gronau KG and Deutsche Post Grundstcks-Vermietungs-
to housing benefits granted by Deutsche Post AG. Deutsche Post AG gesellschaft beta mbH Objekt Leipzig KG are the legal or beneficial
transfers the amounts to the Federal Republic on a monthly basis. owners, is exclusively let to Deutsche Post Immobilien GmbH.
Deutsche Post AG entered into an agreement with the Federal Rental expense for Deutsche Post Immobilien GmbH amounted to
Ministry of Finance dated 30January2004 relating to the transfer 109million in 2016 (previous year: 95million). The rent was al-
of civil servants to German federal authorities. Under this agree- ways paid on time. Deutsche Post Pensions-Treuhand GmbH&Co.
ment, civil servants are seconded with the aim of transferring them KG holds all of the shares of Deutsche Post Pensionsfonds AG.
initially for six months, and are then transferred permanently if they Deutsche Post Betriebsrenten-Service e.V. (DPRS) was liquidated in
successfully complete their probation. Once a permanent transfer the reporting year and the corresponding benefits have been dir
is completed, Deutsche Post AG contributes to the cost incurred ectly provided by Deutsche Post AG since 1May2016. Further di
bythe Federal Republic by paying a flat fee. In 2016, this initiative sclosures on pension funds can be found in notes 7 and 39.
resulted in 84 permanent transfers (previous year: 122) and 29
secondments with the aim of a permanent transfer in 2017 (previ- Relationships with unconsolidated companies, investments
ous year: 39). accounted for using the equity method and joint operations
In addition to the consolidated subsidiaries, the Group has direct
Relationships with the German Federal Employment Agency and indirect relationships with unconsolidated companies, invest-
Deutsche Post AG and the German Federal Employment Agency ments accounted for using the equity method and joint operations
entered into an agreement dated 12October2009 relating to the deemed to be related parties of the Group in the course of its ordin
transfer of Deutsche Post AG civil servants to the Federal Employ- ary business activities. As part of these activities, all transactions for
ment Agency. In 2016, as in the previous year, this initiative resulted the provision of goods and services entered into with unconsoli-
in no transfers. dated companies were conducted on an arms length basis at stand-
ard market terms and conditions.
Relationships with Deutsche Telekom AG and its subsidiaries
The Federal Republic holds around 32% of the shares of Deutsche
Telekom AG directly and indirectly (via KfW). A control relation-
ship exists between Deutsche Telekom AG and the Federal Republic
because the Federal Republic, despite its non-controlling interest,
has a secure majority at the Annual General Meeting due to its
average presence there. Deutsche Telekom AG is therefore a related
party of Deutsche Post AG. In financial year 2016, Deutsche Post DHL
Group provided goods and services (mainly transport services for
letters and parcels) for Deutsche Telekom AG and purchased goods
and services (such as IT products) from Deutsche Telekom AG.
Transactions were conducted in financial year 2016 with major The remuneration of key management personnel of the Group
related parties, resulting in the following items in the consolidated requiring disclosure under IAS24 comprises the remuneration of
financial statements: the active members of the Board of Management and the Super
visory Board.
m The active members of the Board of Management and the
2015 2016 Supervisory Board were remunerated as follows:
Trade receivables 9 16
from investments accounted for using the equity m
method 5 4
2015 2016
from unconsolidated companies 4 12
Short-term employee benefits
Loans 28 52 (excludingshare-based payment) 13 15
to investments accounted for using the equity Post-employment benefits 3 2
method 0 21
Termination benefits 4 0
to unconsolidated companies 28 31
Share-based payment 7 24
Receivables from in-house banking 2 6
Total 27 41
from investments accounted for using the equity
method 2 0
from unconsolidated companies 0 6
Financial liabilities 26 28
As well as the aforementioned benefits for their work on the Super-
to investments accounted for using the equity
method 15 15 visory Board, the employee representatives on the Supervisory
to unconsolidated companies 11 13 Board and employed by the Group also receive their normal salaries
Trade payables 7 5 for their work in the company. These salaries are determined at
to investments accounted for using the equity levels that are commensurate with the salary appropriate for the
method 3 0
function or work performed in the company.
to unconsolidated companies 4 5
Post-employment benefits are recognised as the service cost
Revenue 4 3
resulting from the pension provisions for active members of the
from investments accounted for using the equity
method 3 2 Board of Management. The corresponding liability amounted to
from unconsolidated companies 1 1 35million as at the reporting date (previous year: 31million).
Expenses1 37 23 The share-based payment amount relates to the relevant expense
due to investments accounted for using the equity recognised for financial years 2015 and 2016; further details can be
method 14 3
found in notes49.2 and 49.3. The expense is itemised in the following
due to unconsolidated companies 23 20
table:
1
Relate to materials expense and staff costs.
Share-based payment
Thousands of 2015 2016
Deutsche Post AG issued letters of commitment in the amount of SARs SARs
53million (previous year: 68million) for these companies. Of DrFrank Appel, Chairman 1,760 9,603
this amount, 48million (previous year: 63million) was attribut- Ken Allen 1,061 4,175
able to investments accounted for using the equity method, 1mil- Jrgen Gerdes 1,109 4,430
lion (previous year: 1million) to joint operations and 4million John Gilbert 91 600
Melanie Kreis 35 241
(previous year: 4million) to unconsolidated companies.
Lawrence Rosen (until 30 Sept. 2016) 1,029 5,071
Roger Crook (until 27April2015) 1,822
50.2 Related party disclosures (individuals)
Share-based payment 6,907 24,120
In accordance with IAS24, the Group also reports on transactions
between the Group and related parties or members of their families.
Related parties are defined as the Board of Management, the Super-
visory Board and the members of their families.
There were no reportable transactions or legal transactions
involving related parties in financial year 2016.
169
50.3 Remuneration disclosures in accordance with the HGB 51 Auditors fees

The fee for the auditor of the consolidated financial statements,
Board of Management remuneration PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprfungs-
The total remuneration paid to the active members of the Board of gesellschaft, amounted to 11million in financial year 2016 and was
Management in financial year 2016 including the components with recognised as an expense.
a long-term incentive effect totalled 18.5million (previous year:
17.4million). Of this amount, 6.6million (previous year: 7.1mil- Auditors fee, 2016
lion) is attributable to non-performance-related components (an- m
nual base salary and fringe benefits), 5.6million (previous year:
3.7million) to performance-related components (variable compo- Audit services 10
nents) and 6.3million (previous year: 6.7million) to components Other assurance services 0
with a long-term incentive effect (SARs). The number of SARs was Tax advisory services 0
Other services 1
1,202,376 (previous year: 1,936,470).
Total 11
Former members of the Board of Management

Benefits paid to former members of the Board of Management or
their surviving dependants amounted to 5.4million (previous year: The audit services category includes the fees for auditing the con-
25.3million). The defined benefit obligation (DBO) for current pen- solidated financial statements and for auditing the annual financial
sions calculated under IFRSs was 97million (previous year: statements prepared by Deutsche Post AG and its German subsid
94million). iaries. The fees for reviewing the interim reports and those fees for
voluntary audits beyond the statutory audit engagement, such as
Remuneration of the Supervisory Board audits of the internal control system, are also reported in this cat
The total remuneration of the Supervisory Board in financial year egory. The other services item relates to fees which cannot be allo-
2016 amounted to around 2.6million (previous year: 2.7mil- cated to the aforementioned categories and includes mainly services
lion); as in the prior year, 2.4million of this amount was attribut- in the area of information technology.
able to a fixed component and 0.2million (previous year: 0.3mil-
lion) to attendance allowances. 52 Exemptions under the HGB and local foreign legislation
Further information on the itemised remuneration of the For financial year 2016, the following German subsidiaries have ex-
Board of Management and the Supervisory Board can be found in ercised the simplification options under section 264(3) of the HGB
the remuneration report, which forms part of the Group Manage- or section 264b of the HGB:
ment Report. Agheera GmbH
Albert Scheid GmbH
Shareholdings of the Board of Management and Supervisory All you need GmbH
Board Cillox GmbH
As at 31December2016, shares held by the Board of Management CSG GmbH
and the Supervisory Board of Deutsche Post AG amounted to less CSG.PB GmbH
than 1% of the companys share capital. CSG.TS GmbH
Danzas Deutschland Holding GmbH
Reportable transactions Deutsche Post Adress Beteiligungsgesellschaft mbH
The transactions of Board of Management and Supervisory Board Deutsche Post Assekuranz Vermittlungs GmbH
members involving securities of the company and notified to Deutsche Post Beteiligungen Holding GmbH
Deutsche Post AG in accordance with section 15a of the Wertpapier Deutsche Post Consult GmbH
handelsgesetz (WpHG German Securities Trading Act) can be Deutsche Post Customer Service Center GmbH
viewed on the companys website at dpdhl.com/en/investors. Deutsche Post DHL Beteiligungen GmbH
Deutsche Post DHL Corporate Real Estate Management GmbH DHL Delivery Leipzig GmbH
Deutsche Post DHL Corporate Real Estate Management DHL Delivery Lbeck GmbH
GmbH&Co. Logistikzentren KG DHL Delivery Magdeburg GmbH
Deutsche Post DHL Express Holding GmbH DHL Delivery Mainz GmbH
Deutsche Post DHL Research and Innovation GmbH DHL Delivery Mannheim GmbH
Deutsche Post Dialog Solutions GmbH DHL Delivery Mnchen GmbH
Deutsche Post Direkt GmbH DHL Delivery Mnster GmbH
Deutsche Post E-Post Development GmbH DHL Delivery Neubrandenburg GmbH
Deutsche Post E-POST Solutions GmbH DHL Delivery Nrnberg GmbH
Deutsche Post Fleet GmbH DHL Delivery Oldenburg GmbH
Deutsche Post Ident GmbH DHL Delivery Ravensburg GmbH
Deutsche Post Immobilien GmbH DHL Delivery Reutlingen GmbH
Deutsche Post InHaus Services GmbH DHL Delivery Rosenheim GmbH
Deutsche Post Investments GmbH DHL Delivery Saarbrcken GmbH
Deutsche Post IT BRIEF GmbH DHL Delivery Straubing GmbH
Deutsche Post IT Services GmbH DHL Delivery Stuttgart GmbH
Deutsche Post Mobility GmbH DHL Delivery Wiesbaden GmbH
Deutsche Post Shop Essen GmbH DHL Delivery Wrzburg GmbH
Deutsche Post Shop Hannover GmbH DHL Delivery Zwickau GmbH
Deutsche Post Shop Mnchen GmbH DHL Express Customer Service GmbH
DHL Airways GmbH DHL Express Germany GmbH
DHL Automotive GmbH DHL Express Network Management GmbH
DHL Automotive Offenau GmbH DHL Fashion Retail Operations GmbH
DHL Consulting GmbH DHL FoodLogistics GmbH (formerly: DHL Foodservices GmbH)
DHL Delivery GmbH DHL Freight Germany Holding GmbH
DHL Delivery Augsburg GmbH DHL Freight GmbH
DHL Delivery Bayreuth GmbH DHL Global Forwarding GmbH
DHL Delivery Berlin GmbH DHL Global Forwarding Management GmbH
DHL Delivery Bonn GmbH DHL Global Management GmbH
DHL Delivery Braunschweig GmbH DHL Home Delivery GmbH
DHL Delivery Bremen GmbH DHL Hub Leipzig GmbH
DHL Delivery Dortmund GmbH DHL International GmbH
DHL Delivery Dresden GmbH DHL Inventory Finance Services GmbH
DHL Delivery Duisburg GmbH DHL Paket GmbH
DHL Delivery Dsseldorf GmbH DHL Paketzentrum Obertshausen GmbH
DHL Delivery Erfurt GmbH DHL Solutions Fashion GmbH
DHL Delivery Essen GmbH DHL Solutions GmbH
DHL Delivery Frankfurt GmbH DHL Sorting Center GmbH
DHL Delivery Freiburg GmbH DHL Supply Chain (Leipzig) GmbH
DHL Delivery Freising GmbH DHL Supply Chain Management GmbH
DHL Delivery Gieen GmbH DHL Supply Chain VAS GmbH
DHL Delivery Gppingen GmbH DHL Trade Fairs&Events GmbH
DHL Delivery Hagen GmbH DHL Verwaltungs GmbH
DHL Delivery Halle GmbH Erste End of Runway Development Leipzig GmbH
DHL Delivery Hamburg GmbH Erste Logistik Entwicklungsgesellschaft MG GmbH
DHL Delivery Hannover GmbH European Air Transport Leipzig GmbH
DHL Delivery Herford GmbH Gerlach Zolldienste GmbH
DHL Delivery Karlsruhe GmbH interServ Gesellschaft fr Personal- und
DHL Delivery Kassel GmbH BeraterdienstleistungenmbH
DHL Delivery Kiel GmbH StreetScooter GmbH
DHL Delivery Koblenz GmbH Werbeagentur Janssen GmbH
DHL Delivery Kln West GmbH Williams Lea Tag GmbH
Consolidated Financial Statements NOTES Other disclosures RESPONSIBILITY STATEMENT
171
The following companies in the UK make use of the audit exemption RESPONSIBILITY STATEMENT
under section 479A of the UK Companies Act:
DHL Exel Supply Chain Limited To the best of our knowledge, and in accordance with the applicable
DHL Freight&Contract Logistics (UK) Limited reporting principles, the consolidated financial statements give a
Exel Freight Management (UK) Limited true and fair view of the assets, liabilities, financial position and
Exel Investments Limited profit or loss of the Group, and the management report of the Group
Exel Overseas Limited includes a fair review of the development and performance of the
Freight Indemnity and Guarantee Company Limited business and the position of the Group, together with a description
F.X. Coughlin (U.K.) Limited of the principal opportunities and risks associated with the expected
Joint Retail Logistics Limited development of the Group.
KXC (Exel) GP Investment Limited
National Carriers Limited (formerly Trucks and Child Safety Bonn, 16February2017
Limited)
Ocean Group Investments Limited Deutsche Post AG
Ocean Overseas Holdings Limited The Board of Management
Power Europe Development No 3 Limited
Power Europe Operating Limited
Tibbett&Britten Applied Limited
53 Declaration of Conformity with the German Corporate

Governance Code DrFrank Appel Ken Allen
The Board of Management and the Supervisory Board of
Deutsche Post AG jointly submitted the Declaration of Conformity
with the German Corporate Governance Code for financial year
2016 required by section 161 of the AktG. This Declaration of Con-
formity can be accessed online at corporate-governance-code and at
dpdhl.com/en/investors. Jrgen Gerdes John Gilbert
54 Significant events after the reporting date and other disclosures

There were no significant reportable events after the reporting date.
Melanie Kreis
INDEPENDENT AUDITORS Key Audit Matters

Key audit matters are those matters that, in our professional judg-
REPORT ment, were of most significance in our audit of the consolidated
financial statements for the financial year from January 1, to Decem-
To Deutsche Post AG, Bonn ber 31, 2016. These matters were addressed in the context of our
audit of the consolidated financial statements as a whole, and in
REPORT ON THE AUDIT OF THE CONSOLIDATED forming our audit opinion thereon, and we do not provide a separ
FINANCIAL STATEMENTS ate audit opinion on these matters.
Audit Opinion on the Consolidated Financial Statements In our view, the key audit matters were as follows:
We have audited the consolidated financial statements of 1 Recoverability of goodwill
Deutsche Post AG, Bonn, and its subsidiaries (the Group), which 2 Pension obligations and plan assets
comprise the balance sheet as at December 31, 2016, and the con- 3 Deferred taxes on deductible temporary measurement
solidated income statement, the consolidated statement of compre- differences and loss carryforwards
hensive income, consolidated statement of changes in equity 4 Other provisions
and consolidated statement of cash flows for the financial year

fromJanuary 1, to December 31, 2016, and notes to the consolidated Our presentation of these key audit matters has been structured as
financial statements, including a summary of significant accounting follows:
policies. 1 Matter and issue
According to (Article) 322 Abs. (paragraph) 3 Satz (sentence) 2 Audit approach and findings
1 zweiter Halbsatz (second half sentence) HGB (Handelsgesetz- 3 Reference to further information
buch: German Commercial Code), we state that, in our opinion,

based on the findings of our audit, the accompanying consolidated 1 Recoverability of goodwill
financial statements comply, in all material respects, with IFRS, as 1 In the consolidated financial statements of Deutsche Post AG,
adopted by the EU, and the additional requirements of German a total amount of 11.7billion in goodwill was reported under
commercial law pursuant to 315a Abs. 1 HGB and give a true and the line item intangible assets of the balance sheet, thus rep-
fair view of the net assets and financial position of the Group as at resenting approximately 30% of total assets and exceeding the
December 31, 2016, as well as the results of operations for the finan- Groups reported equity by 0.3billion. Goodwill is tested by
cial year from January 1, to December 31, 2016, in accordance with the Company for impairment (impairment test) as of the
these requirements. balance sheet date on an annual basis or if there are indications
According to 322 Abs. 3 Satz 1 erster Halbsatz HGB, we state that goodwill may be impaired. Impairment of goodwill is
that our audit has not led to any reservations with respect to the tested based on the value in use, which is determined by apply-
propriety of the consolidated financial statements. ing a valuation model using the discounted cash flow method.
This matter was of particular significance to our audit, because
Basis for Audit Opinion on the Consolidated Financial Statements the result of this measurement depends to a large extent on the
We conducted our audit in accordance with 317 HGB and German Companys managements assessment of future cash inflows
generally accepted standards for the audit of financial statements and the discount rate used, and is therefore subject to consid-
promulgated by the Institut der Wirtschaftsprfer (Institute of erable uncertainty.
Public Auditors in Germany) (IDW), and additionally considered 2 We satisfied ourselves as to the appropriateness of the future
the International Standards on Auditing (ISA). Our responsibilities cash inflows used in the measurement by, inter alia, comparing
under those provisions and standards, as well as supplementary this data with the current budgets in the three-year plan pre-
standards, are further described in the Auditors Responsibilities pared by the management and approved by the supervisory
for the Audit of the Consolidated Financial Statements section of board, and reconciling it against general and sector-specific
our report. We are independent of the Group entities in accordance market expectations. With the knowledge that even relatively
with the provisions under German commercial law and professional small changes in the discount rate can have material effects on
requirements, and we have fulfilled our other German ethical re- the value in use calculated in this way, we also focused our
sponsibilities in accordance with these requirements. We believe testing on the parameters used to determine the discount rate
that the audit evidence we have obtained is sufficient and appropri- applied, including the weighted average cost of capital, and
ate to provide a basis for our audit opinion. evaluated the measurement model. Due to the materiality of
goodwill and the fact that its measurement also depends on
economic conditions which are outside of the Companys
Consolidated Financial Statements INDEPENDENT AUDITORS REPORT
173
sphere of influence, we carried out own sensitivity analyses for 3

Deferred taxes on deductible temporary measurement
cash-generating units with low coverage (net book value com- differences and loss carryforwards
pared to value in use) and found that the respective goodwill 1 Within the consolidated financial statements of Deutsche Post AG
is sufficiently covered by discounted future cash flows. Overall, deferred tax assets of 2.2billion (of which 1.3billion for tax
we consider the measurement parameters and assumptions loss carryforwards) have been reported in the balance sheet.
used by management to be reproducible. From our point of view, the deferred tax assets were of particu-
3 The Companys disclosures regarding goodwill are contained lar importance as they depend to a large extent on the estimates
in note 21 of the notes to the consolidated financial statements. and assumptions made by management and therefore are sub-
ject to uncertainties.
2 Pension obligations and plan assets 2 Within our audit of these tax matters we included internal tax
1 A total of 5.6billion was reported in the consolidated finan- accounting specialists in our audit team. With their support,
cial statements of Deutsche Post AG under the line item Pro- we assessed inter alia the internal processes and controls im-
visions for pensions and similar obligations of the balance plemented for the recording of tax matters. Furthermore, we
sheet. The net pension provisions amounting to 5.4billion evaluated the recognition and measurement of the deferred
(after consideration of the reported pension assets of 0.2bil- taxes. We assessed the recoverability of the deferred tax assets
lion) were calculated on the basis of the present value of the relating to deductible temporary differences and loss carry
obligations amounting to 17.7billion, netted against the plan forwards on the basis of Company-internal forecasts of the
assets of 12.3billion, which were measured at fair value. The Companys future tax income situation and evaluated the
obligations from defined benefit pension plans were measured appropriateness of the assumptions used. Furthermore, we
using the projected unit credit method in accordance with examined the reconciliation to the tax expense. We were able
IAS19. This requires in particular that assumptions be made as to follow the assumptions made by management concerning
to the long-term salary and pension trend and average life ex- the recognition and measurement of deferred taxes, and agree
pectancy. Furthermore, the discount rate applied as of the bal- with the assessments arrived at by management.
ance sheet date must be determined by reference to market 3 The Companys disclosures relating to deferred taxes are con-
yields on high-quality corporate bonds with matching curren- tained in note 27 of the notes to the consolidated financial
cies and consistent terms. Changes to these actuarial assump- statements.
tions are recognized directly in equity as actuarial gains or
losses. The decrease in the discount rate resulted in actuarial 4 Other provisions
losses of 1.6billion. From our point of view, these matters 1 A total of 2.8billion was reported in the consolidated finan-
were of particular importance, as the measurement of pension cial statements of Deutsche Post AG under the line items Other
obligations and plan assets is to a large extent based on Com- non-current provisions and Current provisions of the bal-
panys managements estimates and assumptions. ance sheet. In addition, there are risks for which management
2 With the knowledge that estimated values bear an increased estimated the likelihood of occurrence to be not predominantly.
risk of accounting misstatements and that managements meas- 1.0billion in contingent liabilities was disclosed for these risks,
urement decisions have a direct and significant effect on the for which no provisions were recognized. From our point of
consolidated financial statements, we assessed the appropriate- view, these matters were of particular importance, as recogni-
ness of the calculated amounts, in particular the measurement tion and measurement of these material items are to a large
parameters used in the calculation of pension provisions, inter extent based on the Companys managements estimates and
alia on the basis of actuarial reports made available to us and assumptions.
taking into account the specialist expertise of our internal spe- 2 With the knowledge that estimated values bear an increased
cialists for pension valuation. In particular, our evaluation of risk of accounting misstatements and that the managements
the fair values of plan assets was based on bank confirmations measurement decisions have a direct effect on consolidated
submitted to us, as well as other statements of assets and real profit, we assessed the appropriateness of the carrying amounts
estate appraisals. On the basis of our audit procedures, we were inter alia by comparing these amounts with historical data and
able to satisfy ourselves that the estimates applied and the by referring to the underlying contracts and expert opinions
assumptions made by management were sufficiently docu- provided to us. In doing so, we were able to satisfy ourselves
mented and supported to justify the recognition and measure- that the estimates applied and the assumptions made by the
ment of the material pension provisions. management were sufficiently documented and supported to
3 The Companys disclosures relating to provisions for pensions justify the recognition and measurement of the material other
and similar obligations are contained in note 39 of the notes to provisions and other items where judgment was involved.
the consolidated financial statements.
3 The Companys disclosures relating to other provisions are con- In preparing the consolidated financial statements, manage-
tained in note 40 and its disclosures on other items where ment is responsible for assessing the Groups ability to continue as
judgment was involved are contained in notes 46 and 48 of the a going concern, disclosing, as applicable, matters related to going
notes to the consolidated financial statements. concern and using the going concern basis of accounting unless
management either intends to liquidate the Group or to cease op-
Other Information erations, or has no realistic alternative but to do so.
Management is responsible for the other information. The other The supervisory board is responsible for overseeing the Groups
information comprises financial reporting process for the preparation of the consolidated
the Corporate Governance Report according to section 3.10 of the financial statements.
German Corporate Governance Code,
the Corporate Governance Statement pursuant to 289a HGB and Auditors Responsibilities for the Audit of the Consolidated Financial
315 Abs. 5 HGB, as well as Statements
other parts of the annual report of Deutsche Post AG, Bonn, for Our objective is to obtain reasonable assurance about whether the
the financial year ended on December 31, 2016, which were not consolidated financial statements as a whole are free from material
subject of our audit. misstatement, whether due to fraud or error, and to issue an audi-
tors report that includes our audit opinion on the consolidated fi-
Our audit opinion on the consolidated financial statements does nancial statements. Reasonable assurance is a high level of assur-
not cover the other information and we do not express any form of ance, but is not a guarantee that an audit conducted in accordance
assurance conclusion thereon. with 317 HGB and German generally accepted standards for the
In connection with our audit of the consolidated financial audit of financial statements promulgated by the Institut der
statements, our responsibility is to read the other information, and, Wirtschaftsprfer (Institute of Public Auditors in Germany) (IDW),
in doing so, consider whether the other information is materially under additional consideration of the ISA, will always detect a ma-
inconsistent with the consolidated financial statements or our terial misstatement. Misstatements can arise from fraud or error
knowledge obtained in the audit or otherwise appears to be ma and are considered material if, individually or in the aggregate, they
terially misstated. If, based on the work we have performed, we could reasonably be expected to influence economic decisions of
conclude that there is a material misstatement of this other infor- users taken on the basis of these consolidated financial statements.
mation, we are required to report that fact. We have nothing to re- As part of an audit in accordance with 317 HGB and German
port in this regard. generally accepted standards for the audit of financial statements
promulgated by the Institut der Wirtschaftsprfer (Institute of
Responsibilities of Management and Those Charged with Governance Public Auditors in Germany) (IDW), under additional consider
for the Consolidated Financial Statements ation of the ISA, we exercise professional judgment and maintain
Management is responsible for the preparation of the consolidated professional skepticism throughout the audit. We also:
financial statements, which comply with IFRS, as adopted by the EU, Identify and assess the risks of material misstatement of the con-
and the additional German legal requirements applicable under solidated financial statements, whether due to fraud or error, de-
315a Abs. 1 HGB, and give a true and fair view of the net assets, sign and perform audit procedures responsive to those risks, and
financial position and results of operations of the Group in accord obtain audit evidence that is sufficient and appropriate to provide
ance with these requirements. Furthermore, management is re- a basis for our opinion. The risk of not detecting a material mis-
sponsible for such internal control as management determines is statement resulting from fraud is higher than for one resulting
necessary to enable the preparation of consolidated financial state- from error, as fraud may involve collusion, forgery, intentional
ments that are free from material misstatement, whether due to omissions, misrepresentations, or the override of internal control.
fraud or error.
Consolidated Financial Statements INDEPENDENT AUDITORS REPORT
175
Obtain an understanding of internal control relevant to the audit We communicate with those charged with governance, amongst
in order to design audit procedures that are appropriate in the other matters, the planned scope and timing of the audit and signif-
circumstances, but not for the purpose of expressing an opinion icant audit findings, including any significant deficiencies in inter-
on the effectiveness of the Groups internal control. nal control that we identify during our audit.
Evaluate the appropriateness of accounting policies used and the We also provide those charged with governance with a state-
reasonableness of accounting estimates and related disclosures ment that we have complied with relevant ethical requirements
made by management. regarding independence, and to communicate with them all rela-
Conclude on the appropriateness of managements use of the going tionships and other matters that may reasonably be thought to bear
concern basis of accounting and, based on the audit evidence ob- on our independence, and related safeguards.
tained, whether a material uncertainty exists related to events or From the matters communicated with those charged with gov-
conditions that may cast significant doubt on the Groups ability ernance, we determine those matters that were of most significance
to continue as a going concern. If we conclude that a material in the audit of the consolidated financial statements of the current
uncertainty exists, we are required to draw attention in our audi- period and are therefore the key audit matters. We describe these
tors report to the related disclosures in the consolidated financial matters in our report on the audit of the consolidated financial state-
statements or the Group management report or, if such disclos ments unless law or regulation precludes public disclosure about
ures are inadequate, to modify our audit opinion. Our conclu- the matter.
sions are based on the audit evidence obtained up to the date of
our auditors report. However, future events or conditions may
cause the Group to cease to continue as a going concern. OTHER LEGAL AND REGULATORY
Evaluate the overall presentation, structure and content of the R EQUIREMENTS
consolidated financial statements, including the disclosures, and
whether the consolidated financial statements represent the Report on the Audit of the Group
underlying transactions and events in a manner that the consol Management Report
idated financial statements give a true and fair view of the net
assets and financial position as well as the results of operations of Audit Opinion on the Group Management Report
the Group in accordance with IFRS, as adopted by the EU, and the We have audited the group management report of Deutsche Post AG,
additional German legal requirements applicable under 315a Bonn, for the financial year from January 1, to December 31, 2016.
Abs.1 HGB. In our opinion, based on the findings of our audit, the accom-
Obtain sufficient and appropriate audit evidence regarding the panying group management report as a whole provides a suitable
financial information of the entities or business activities within view of the Groups position. In all material respects, the group man-
the Group to express an audit opinion on the consolidated finan- agement report is consistent with the consolidated financial state-
cial statements. We are responsible for the direction, supervision ments, complies with legal requirements and suitably presents the
and performance of the group audit. We remain solely responsible opportunities and risks of future development.
for our audit opinion. Our audit has not led to any reservations with respect to the
propriety of the group management report.
Basis for Audit Opinion on the Group Management Report

We conducted our audit of the group management report in accord
ance with 317 Abs. 2 HGB and German generally accepted stand
ards for the audit of management reports promulgated by the
Institut der Wirtschaftsprfer (Institute of Public Auditors in Ger-
many) (IDW). We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management and Those Charged with Governance The audit of the group management report is integrated into the
for the Group Management Report audit of the consolidated financial statements.
Management is responsible for the preparation of the group man- We obtain an understanding of the policies and procedures (sys-
agement report, which as a whole provides a suitable view of the tems) relevant to the audit of the group management report in
Groups position, is consistent with the consolidated financial state- order to design audit procedures that are appropriate in the cir-
ments, complies with legal requirements, and suitably presents the cumstances, but not for the purpose of expressing an audit opin-
opportunities and risks of future development. Furthermore, man- ion on the effectiveness of these policies and procedures (systems).
agement is responsible for such policies and procedures (systems) We perform audit procedures on the prospective information pre-
as management determines are necessary to enable the preparation sented by management in the group management report. Based
of a group management report in accordance with the German legal on appropriate and sufficient audit evidence, we hereby, in par-
requirements applicable under 315 Abs. 1 HGB and to provide suf- ticular, evaluate the material assumptions used by management as
ficient and appropriate evidence for the assertions in the group a basis for the prospective information and assess the reasonable-
management report. ness of these assumptions as well as the appropriate derivation of
The supervisory board is responsible for overseeing the Groups the prospective information from these assumptions. We are not
financial reporting process for the preparation of the group man- issuing a separate audit opinion on the prospective information
agement report. or the underlying assumptions. There is a significant, unavoidable
risk that future events will deviate significantly from the prospect
Auditors Responsibilities for the Audit of the Group Management ive information.
Report We are also not issuing a separate audit opinion on individual
Our objective is to obtain reasonable assurance about whether the disclosures in the group management report; our audit opinion
group management report as a whole provides a suitable view of the covers the group management report as a whole.
Groups position as well as, in all material respects, is consistent with
the consolidated financial statements as well as the findings of our
audit, complies with legal requirements, and suitably presents the RESPONSIBLE AUDITOR
opportunities and risks of future development, and to issue an audi
tors report that includes our audit opinion on the group manage- The auditor responsible for the audit is Verena Heineke.
ment report.
As part of an audit, we examine the group management report Dsseldorf, February 16, 2017
in accordance with 317 Abs. 2 HGB and German generally accepted PricewaterhouseCoopers
standards for the audit of management reports promulgated by the Aktiengesellschaft
IDW. In this connection, we draw attention to the following: Wirtschaftsprfungsgesellschaft
Gerd Eggemann Verena Heineke

Wirtschaftsprfer Wirtschaftsprferin
(German Public Auditor) (German Public Auditor)
/04 FURTHERINFORMATION
178 MULTI-YEAR REVIEW

180 INDEX
181 GLOSSARY
182 GRAPHS AND TABLES
183 CONTACTS
183 ORDERING
184 FINANCIAL CALENDAR
FurtherInformation
/04
MULTI-YEAR REVIEW
Key figures 2009 to 2016
m 2009 2010 2011 2012 2013 2014 2015 2016
adjusted adjusted adjusted adjusted adjusted
Revenue
Post- eCommerce- Parcel (until 2013 Mail) 13,912 13,913 13,973 13,972 15,291 15,686 16,131 16,797
Express 9,917 11,111 11,691 12,778 11,821 12,491 13,661 14,030
Global Forwarding, Freight 11,243 14,341 15,118 15,666 14,787 14,924 14,890 13,737
Supply Chain 12,183 13,061 13,223 14,340 14,227 14,737 15,791 13,957
Divisions total 47,255 52,426 54,005 56,756 56,126 57,838 60,473 58,521
Corporate Center/Other1 1,527 1,302 1,260 1,203 1,251 1,345 1,269 1,279
Consolidation1 2,581 2,340 2,436 2,447 2,465 2,553 2,512 2,466
Total (continuing operations) 46,201 51,388 52,829 55,512 54,912 56,630 59,230 57,334
Discontinued operations 1,634
Profit/loss from operating activities (EBIT)

Post- eCommerce- Parcel (until 2013 Mail) 1,391 1,120 1,107 1,048 1,286 1,298 1,103 1,443
Express 790 497 916 1,110 1,083 1,260 1,391 1,548
Global Forwarding, Freight 174 383 440 514 478 293 181 287
Supply Chain 216 231 362 419 441 465 449 572
Divisions total 559 2,231 2,825 3,091 3,288 3,316 2,762 3,850
Corporate Center/Other 328 395 389 423 421 352 351 359
Consolidation 0 1 0 3 2 1 0 0
Total (continuing operations) 231 1,835 2,436 2,665 2,865 2,965 2,411 3,491
Discontinued operations 24
Consolidated net profit for the period 693 2,630 1,266 1,762 2,211 2,177 1,719 2,781
Cash flow/capex/depreciation, amortisation

Net cash used in/from operating activities 584 1,927 2,371 203 2,989 3,040 3,444 2,439
Net cash used in/from investing activities 2,710 8 1,129 1,697 1,765 1,087 1,462 1,643
Net cash from/used in financing activities 1,676 1,651 1,547 1,199 110 2,348 1,367 1,233
Free cash flow 484 749 1,885 1,669 1,345 1,724 444
Capex 1,171 1,262 1,716 1,697 1,747 1,876 2,024 2,074
Depreciation, amortisation and impairment losses 1,620 1,296 1,274 1,339 1,337 1,381 1,665 1,377
Assets and capital structure

Non-current assets 22,022 24,493 21,225 21,568 21,370 22,902 23,727 24,166
Current assets 12,716 13,270 17,183 12,289 14,091 14,077 14,143 14,129
Equity (excluding non-controlling interests) 8,176 10,511 11,009 9,019 9,844 9,376 11,034 11,087
Non-controlling interests 97 185 190 209 190 204 261 263
Current and non-current provisions 9,677 9,427 9,008 8,978 8,481 10,411 9,361 8,507
Current and non-current liabilities 16,788 17,640 18,201 15,651 16,946 16,988 17,214 18,438
Total assets 34,738 37,763 38,408 33,857 35,461 36,979 37,870 38,295
Further Information MULTI-YEAR REVIEW
179

04/0 1
2009 2010 2011 2012 2013 2014 2015 2016
adjusted adjusted
Employees/staff costs
(continuing operations)
Number of employees2 At Dec. 31 477,280 467,088 471,654 473,626 479,690 488,824 497,745 508,036
Full time equivalents3 At Dec. 31 424,686 418,946 423,502 428,129 434,974 443,784 450,508 459,262
Average number of employees2 488,518 464,471 467,188 472,321 478,903 484,025 492,865 498,459
Staff costs m 17,021 16,609 16,730 17,770 17,776 18,189 19,640 19,592
Staff cost ratio4 % 36.8 32.3 31.7 32.0 32.4 32.1 33.2 34.2
Key figures revenue/income/

assets and capital structure
Return on sales5 % 0.5 3.6 4.6 4.8 5.2 5.2 4.1 6.1
Return on equity (ROE)
beforetaxes6 % 3.0 29.8 15.2 23.6 26.7 26.3 19.7 27.7
Return on assets7 % 0.2 5.1 6.4 7.4 8.3 8.2 6.4 9.2
Tax rate8 % 5.4 6.9 23.7 20.2 14.0 15.5 16.4 11.2
Equity ratio9 % 23.8 28.3 29.2 27.3 28.3 25.9 29.8 29.6
Net debt (+)/net liquidity ()10 m 1,690 1,382 938 1,952 1,499 1,499 1,093 2,261
Net gearing11 % 25.7 14.8 9.1 17.5 13.0 13.5 8.8 16.6
Dynamic gearing12 years 1.4 0.7 0.4 9.6 0.5 0.5 0.4 0.9
Key stock data

Basic earnings per share13 0.53 2.10 0.96 1.36 1.73 1.71 1.27 2.19
Diluted earnings per share14 0.53 2.10 0.96 1.30 1.66 1.64 1.22 2.10
Cash flow per share13,15 0.48 1.59 1.96 0.17 2.47 2.51 2.84 2.03
Dividend distribution m 725 786 846 846 968 1,030 1,027 1,27116
Payout ratio % 112.6 30.9 72.7 51.6 46.3 49.7 66.7 48.2
Dividend per share 0.60 0.65 0.70 0.70 0.80 0.85 0.85 1.0516
Dividend yield % 4.4 5.1 5.9 4.2 3.0 3.1 3.3 3.4
Price-to-earnings ratio17 25.5 6.0 12.4 12.2 15.3 15.8 20.4 14.3
Number of shares carrying
dividend rights millions 1,209.0 1,209.0 1,209.0 1,209.0 1,209.0 1,211.2 1,208.7 1,210.018
Year-end closing price 13.49 12.70 11.88 16.60 26.50 27.05 25.96 31.24
1
2014: Adjustment due to reorganisation in accordance with Strategy 2020. 2 Headcount including trainees. 3 Excluding trainees. 4 Staff costs/revenue.
5
EBIT/revenue. 6 Profit before income taxes/average equity (including non-controlling interests). 7 EBIT/average total assets. 8 Income taxes/profit
before income taxes. 9 Equity (including non-controlling interests)/total assets. 10 Group Management Report, page 58. 11 Net debt/net debt and equity
(including non-controlling interests). 12 Net debt/cash flow from operating activities. 13 The average number of shares outstanding is used for the calculation.
14
The average number of shares outstanding is adjusted for the number of all potentially dilutive shares. 15 Cash flow from operating activities. 16Proposal.
17
Year-end closing price/basic earnings per share. 18Estimate.
INDEX
A F P
Air freight 23, 27, 49, 63f., 83 Finance strategy 51, 52f., 79, 84, 141 Parcel Germany 60
Annual General Meeting 34ff., 51, 84, 86ff., 93, 95ff., First Choice 80 Post- eCommerce- Parcel 22, 24f., 30, 38, 47, 50, 56,
136f., 152, 165, 167 Free cash flow 20, 32f., 38, 47, 57f., 82, 84, 113, 130, 59f., 67, 73, 77, 79f., 82f., 94, 96, 107, 122, 126, 130, 178
Articles of Association 34ff., 46, 136 151, 178 Press products 122
Auditors report 88, 172ff. Free float 66, 135 Price-to-earnings ratio 66, 179
Authorised capital 35, 136 Freight22, 28, 31, 63f., 72, 122, 130 Profit from operating activities 20, 32f., 47, 50ff.,
Freight forwarding business 63f., 83 57ff., 75, 77, 82ff., 100, 103, 107, 110, 121ff., 130, 150f.,
178f.
B G
Balance sheet 50, 52, 55, 58, 76, 86, 102, 105ff., 112ff.,
119f., 123ff., 127, 129ff., 140, 142ff., 150ff., 157ff., 167f., Global Business Services 22f., 87, 96, 122 Q
172ff., 178 Global economy 48, 77f., 82f. Quality 30f., 71f., 78, 80f.
Board of Management 2ff., 22f., 34ff., 38ff., 47, 51, Global Forwarding 22, 26, 27f., 31, 63f., 67, 72, 87,
74ff., 82, 86ff., 90f., 92ff., 108, 136f., 139, 141, 152, 122, 130
164f., 168f., 171
Board of Management remuneration 38f., 96,
164f.,168f.
Global Forwarding, Freight 22f., 27f., 31, 38, 47, 55f.,
63f., 67, 73, 80, 87, 94, 96, 121f., 126, 130, 178
Global trade 48f., 82f., 130
R
Rating 52f., 55, 74, 79, 84, 144
Bonds 37, 48f., 50, 53ff., 57f., 108, 114, 118, 144, 147f., GoGreen34, 69 Regulation 22, 49, 77f., 162f.
152, 157f. Guarantees52, 55, 162 Responsibility statement 171
Brands 73f., 105ff., 112, 122, 129 Retail outlets 24, 71
Return on sales 20, 31f., 50, 59f., 61f., 63f., 65, 179
C I Revenue 20, 30f., 32f., 47, 50f., 54, 59f., 61f., 63f.,
65,78, 83, 100, 107, 109, 112, 120ff., 124, 134, 140, 162,
Illness rate 69 168, 178f.
Capital expenditure 47, 56f., 60, 84, 121f., 151, 178 Income statement 100, 105, 110, 112, 115, 117f., 120, Road transport 23, 28, 70, 83
Capital increase 58, 135ff., 164 123, 124ff., 133, 140, 142, 154f., 160
Cash flow statement 32, 57f., 103, 105, 110, 140, Income taxes 51, 100f., 103, 110, 119, 123, 127f., 132,
150ff.,172
Change of control 37f., 39f.
Consolidated net profit 20, 50f., 58, 100ff., 123, 127f.,
140, 179
Investments 30, 32, 34, 36, 47f., 50f., 52, 55, 56f., 60,
84, 95f., 102f., 108f., 112, 114f., 120, 121, 130, 132, 145,
S
Segment reporting 121ff.
139, 150, 178 150f., 159, 160, 162, 166, 178 Share buyback 35, 37, 53f., 57, 66, 108, 128, 137, 139,
Consolidated revenue 30, 32f., 47, 50f., 100, 107, 109, 149, 152
112, 121, 123f., 140, 168, 178 Share capital 34ff., 50, 135ff., 166, 169
Contingent capital 35f., 136
Contract logistics 23, 28f., 31, 65, 72, 80, 83, 121f.
Corporate governance 37, 39, 46, 85ff., 93ff., 171, 174
L Shareholder structure 66
Share price 49, 66, 148, 163ff.
Letters of comfort 52, 55 Staff costs 32f., 51, 67, 100, 116f., 123, 125, 151, 163,
Cost of capital 32f., 130 Liquidity management 55, 79, 152ff. 165, 168, 179
Credit lines 54, 152f. Strategy 30f., 69, 79f., 83, 86f., 89, 93ff., 97, 179
Credit rating 52f., 55, 74, 79, 84, 144 Supervisory Board 34f., 38f., 46, 51, 86ff., 89, 92ff.,
M 136, 164, 168f., 171

Supervisory Board committees 46, 86ff., 89, 93, 95ff.
D Mail communication 23, 24, 59, 83

Mandates92
Supervisory Board remuneration 46, 169
Suppliers 37, 55, 93
Declaration of conformity 87f., 93, 171 Market shares 23, 24f., 27ff. Supply Chain 22, 28f., 31, 38, 50, 55f., 65, 67, 73, 78,
Dialogue marketing 24f., 59f., 122 80, 83, 94, 96, 106, 121f., 126, 130, 135, 178
Dividend 20, 32f., 47, 50f., 53, 57f., 66, 84, 88, 103f.,
114, 128, 132, 139f., 148, 151f., 160, 166, 179
N T
Net debt 20, 58, 79, 110, 137, 179
E Net gearing 58, 137, 179
Net interest cover 58
Tax rate 179
Training 30f., 67, 68, 97, 125, 179
Earnings per share 20, 50f., 66, 100, 128, 179 Net working capital 32f., 52, 64, 130
EBIT after asset charge 20, 32f., 38f., 40, 47, 50, 52,
82, 84
eCommerce- Parcel 22, 25, 30, 59f., 87, 122 W
Employee Opinion Survey 34, 38, 47, 67, 84, 87, 93
E-POST81
O WACC 32f., 130
Working capital 32f., 52, 64, 130
Equity ratio 58, 110, 137, 179 Ocean freight 23, 27f., 49, 63ff., 83
Express 22f., 26f., 31, 38, 47, 51, 55f., 61f., 67, 72f., Oil price 38, 48, 61, 63, 82f.
80,83, 94, 96, 105, 108, 121f., 126, 130, 139f., 146, 151, Operating cash flow 33, 52f., 59, 61, 63, 65f.,
163, 178 150f.,178
Opportunities and risk management 74ff.
Outlook 47, 55, 74, 82ff.
Further Information INDEX GLOSSARY
181
GLOSSARY
Cross-border mail (outbound) B2C Hub

All outbound international mail. The exchange of goods, services and information Collection point for transferring and connecting
between businesses and consumers. international shipments from and to multiple
Dialogue marketing countries.
Market-orientated activities that apply direct Block space agreement
communications to selectively reach target groups Freight forwarders or shippers enter into block Lead logistics provider
using a personal, individualised approach. space agreements with airline companies which A logistics service provider who assumes the
provide them with defined freight capacities on organisation of all or key logistics processes for
E-POST aregular flight against payment of a fee. thecustomer.
Secure, confidential and reliable electronic
communication platform. Contract logistics Medical Express
Complex logistics and logistics-related services The transport of time-critical or temperature-critical
German federal network agency along the value chain that are performed by medical shipments such as blood and tissue samples
(Bundesnetzagentur) acontract logistics service provider. Services are to medical facilities, hospitals, laboratories or
German national regulator for electricity, gas, tailored to a particular industry or customer research institutes, usually related to clinical trials
telecommunications, post and railway. andaregenerally based on long-term contracts. of new medications.
German Postal Act (Postgesetz) Day Definite Multimodal transport
The purpose of the German Postal Act, which Delivery of shipments on a specified day. Combines a minimum of two different means of
tookeffect on 1January1998, is to promote postal transport for a shipment, such as air, sea, rail and
competition through regulation and ensure the DHL Customer Solutions&Innovation (CSI) ground.
nationwide provision of appropriate and sufficient DHLs cross-divisional commercial and innovation
postal services. It includes regulations on licensing, unit. Supply chain
price control and the universal service. A series of connected resources and processes from
Direct-to-market solutions (D2M) sourcing materials to delivering goods to consumers.
Packstation End-to-end logistics solution that integrates DHLs
Parcel machine where parcels and small packages warehouse management services with order-to- Time Definite
can be deposited and collected around the clock. cashservices. This enables manufacturers to bypass Delivery of time-critical shipments by a pre-selected
traditional wholesalers and/or distributors and time.
Paketbox build a direct trading relationship with their end
Parcel box for franked parcels and small packages customer either the point of dispensing, e.g., Transported Asset Protection Association (TAPA)
(maximum dimensions: 504030cm). pharmacy or direct with the patient in ane-com A forum that unites manufacturers, logisticsproviders,
merce channel. freight carriers, law enforcement authorities and
Price-cap procedure other stakeholders with the common aim of reducing
Procedure whereby the German federal network Fulfilment Centre losses from international supply chains.
agency approves prices for certain mail products. Sites providing customer services such as order
The agency approves prices on the basisofpar processing, warehousing, order picking, packaging Twenty-foot equivalent unit (TEU)
ameters it stipulates in advance, which set the and return management. Standardised container unit, 20feet long and 8 feet
average changes in these prices within baskets of wide (62.4 metres).
services defined by the agency. Gateway
Collection point for goods intended for export
Standard letter andfor further distribution of goods upon import.
Letter measuring a maximum of 2351255mm
and weighing up to 20g.
GRAPHS AND TABLES

01 Selected Key Figures 20 01/25 Trade volumes: compound annual growth 01/60 Workplace accidents 69
rate, 2015 to 2016 49 01/61 CO2e emissions, 2016 70
01/26 Selected indicators for results 01/62 Fuel and energy consumption in own fleet
01 of operations
01/27 Changes in revenue, other operating
50 and buildings
01/63 Facts and figures, customers and quality
70
71
GROUP MANAGEMENT REPORT income and operating expenses, 2016 51
01/64 Brand architecture 73
01/28 Total dividend and dividend perno-par
General Information value share 51 01/65 Value of Group brands in 2016 73
01/01 Organisational structure 22 01/29 EBIT after asset charge (EAC)52 01/66 Marketing expenditures, 2016 74
01/02 Market volumes 23 01/30 Net asset base (non-consolidated) 52 Opportunities andRisks
01/03 Nationwide transport and delivery network 01/31 Selected cash flow indicators 52 01/67 Monte Carlo simulation 75
inGermany, 2016 24
01/32 Finance strategy 53 01/68 Opportunity and risk management process 75
01/04 Domestic mail communication market,
01/33 FFO to debt 53 01/69 Classification of risks and opportunities 77
business customers, 2016 24
01/34 Agency ratings 55
01/05 Domestic advertising market, 2016 25
01/35 Financial liabilities 55 Expected Developments
01/06 International mail market (outbound), 2016 25
01/36 Operating lease liabilities by asset class 56 01/70 Global economy: growth forecast 82
01/07 Domestic parcel market, 2016 25
01/37 Capex and depreciation, amortisation
01/08 Available capacity 26
andimpairment losses, full year 56
01/09 Air freight market, 2015: top 4
01/10 Ocean freight market, 2015: top 4
27
28
01/38 Capex and depreciation, amortisation
andimpairment losses, Q4 56
02
01/11 European road transport market, 2015: 01/39 Calculation of free cash flow 57 CORPORATE GOVERNANCE
top 5 28 02/01 Members of the Supervisory Board 89
01/40 Selected indicators for net assets 58
01/12 Logistics and value-added services 02/02 Committees of the Supervisory Board 89
01/41 Net debt 58
along the supply chain 29 02/03 Mandates held by the Board
01/42 Key figures Post- eCommerce- Parcel
01/13 Contract logistics market, 2015: top 10 29 of Management 92
division59
01/14 Calculations 33 02/04 Mandates held by the Supervisory Board 92
01/43 Post: revenue 59
01/15 Target remuneration for the Board 02/05 Attendance at plenary and committee
01/44 Post: volumes 60
ofManagement members active as meetings95
at31December2016 41 01/45 eCommerce- Parcel: revenue 60
01/16 Target remuneration for the Board 01/46 Parcel Germany: volumes 60
ofManagement members who left
thecompany in financial year 2016 42
01/47 Key figures EXPRESS division
01/48 EXPRESS: revenue by product
61
61 03
01/17 Payments made to the Board 01/49 EXPRESS: volumes by product 61 CONSOLIDATED FINANCIAL
of Management members active as
at 31December2016 43 01/50 Key figures GLOBAL FORWARDING, FREIGHT STATEMENTS
division63 03/01 Income Statement 100
01/18 Payments made to the Board
of Management members who left 01/51 Global Forwarding: revenue 64 03/02 Statement of Comprehensive Income 101
the company in financial year 2016 44 01/52 Global Forwarding: volumes 64 03/03 Balance Sheet 102
01/19 Share-based component with long-term 01/53 Key figures SUPPLY CHAIN division65 03/04 Cash Flow Statement 103
incentive effect 44 01/54 SUPPLY CHAIN: revenue by sector 03/05 Statement of Changes in Equity 104
01/20 Pension commitments under the previous and region, 2016 65
system45
01/21 Board of Management pension Deutsche Post Shares
commitments under the new system:
individual breakdown 45
01/55 Deutsche Post shares: seven-year overview 66 04
01/22 Remuneration paid to Supervisory Board
01/56 Shareholder structure 66
FURTHER INFORMATION
01/57 Shareholder structure by region 66
members46 04/01 Key figures 2009 to 2016 178
Non-Financial Figures
Report on Economic Position
01/58 Selected results from the Employee
01/23 Forecast/actual comparison 47 Opinion Survey 67
01/24 Global economy: growth indicators, 2016 48 01/59 Number of employees 67
Further Information GRAPHS AND TABLES CONTACTS O RDERING
183
CONTACTS ONLINE VERSION

Investor Relations
Tel.: +49(0)228 182-63636
Fax: +49(0)228 182-63199
E-mail: [email protected]
Press Office
Tel.: +49(0)228 182-9944
Fax: +49(0)228 182-9880
E-mail: [email protected]
ORDERING
An online extract and a complete PDF file
External are available on the internet:
E-mail: [email protected] annualreport2016.dpdhl.com
dpdhl.com/en/investors
Internal
GeT and DHL Webshop
Mat.no.675-602-376
Published on 8March2017.
The English version of the 2016 Annual Report of

Deutsche Post DHL Group c onstitutes a translation IR APP
of the o riginal German version. Only the German
version islegallybinding, insofar as this does not
conflict with legalprovisions in other countries.
Deutsche Post Corporate Language Services et al.
Printed on Envirotop, recycled paper produced from 100%

recovered fibre, which is manufactured climate neutrally and
is, amongst others things, FSC certified, has Nordic Ecolabel With the Deutsche Post DHL IR app you can receive
244053and complies with the EU Ecolabel AT/11/002 guidelines. investor r elations and financial media news directly
on your iPad.
/2017 FINANCIALCALENDAR
ENERAL MEETING
2017 ANNUAL G 28 APRIL 2017
DIVIDEND PAYMENT 4 MAY 2017
INTERIM REPORT AS AT 31 MARCH 2017 11 MAY 2017
INTERIM REPORT AS AT 30 JUNE 2017 8 AUGUST 2017
INTERIM REPORT AS AT 30 SEPTEMBER 2017 9 NOVEMBER 2017
/2018 FINANCIALCALENDAR
2017 ANNUAL REPORT 7 MARCH 2018

2018 ANNUAL GENERAL MEETING 24 APRIL 2018
DIVIDEND PAYMENT 27 APRIL 2018
INTERIM REPORT AS AT 31 MARCH 2018 8 MAY 2018
INTERIM REPORT AS AT 30 JUNE 2018 7 AUGUST 2018
INTERIM REPORT AS AT 30 SEPTEMBER 2018 6 NOVEMBER 2018
Further dates, updates as well as information on live webcasts: dpdhl.com/en/investors

Deutsche Post AG
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53250 Bonn
Germany

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What are the main sections covered in the annual report?

What are the main sections covered in the annual report?

What are some examples of innovation projects discussed in the report?

What are some examples of innovation projects discussed in the report?

2016 Annual Report

/ 01 172 Independent Auditors Report

GROUP MANAGEMENT REPORT

/ 02 184 Financial Calendar

To stand still is to go backwards. I couldnt

As a leading company in a service industry, I believe we

Whats more, were networking with partners from indus-

For us/innovation means/

I believe one key to our success is continuing to reduce

All our operating divisions contributed to this positive

Inthe DHL d ivisions, the growth trend in the international

In addition, we invested substantially in all divisions in

Against the backdrop of the positive results achieved

Mobile piece picking

Co-packing Exoskeletons Automated inventory management

Flexible and adaptive

Lightening the load

EffiBOT follows the warehouse worker up

With the assistance of smart glasses

The next phase in the project started in the summer of 2016.

More flexible delivery and optimised routing

Delivery vehicles of the future

The ever-evolving Parcelcopter

SELECTED KEY FIGURES

EBIT 2016 EMPLOYEES

3,491 million 508,036

CONSOLIDATED NET PROFIT RETURN ON SALES 2016

After deduction of non-controlling interests.

REVENUE 2016 EARNINGS DIVIDEND

Basic earnings per share. 1

2015 2016 +/% Q4 2015 Q4 2016 +/%

Revenue m 59,230 57,334 3.2 15,339 15,410 0.5

46 ANNUAL CORPORATE GOVERNANCE STATEMENT

66 DEUTSCHE POST SHARES

Corporate Center Divisions

CEO, Post- Global

Organisational changes Effective 1January2017, Frank Appel, as CEO, took over

50M TEUs 4.5 BN

(2015) Middle East/Africa Americas Europe Asia Pacific

Business units and market positions

Nationwide transport and delivery network in Germany, 2016

as cash on delivery, registered mail and insured items.

Source: company estimate.

EXPRESS DIVISION Our virtual airline

Block Space Agreement

BSA CORE ACS

Supporting development in Asia

first hub in the industry in South Asia to have a fully auto-

around 2.9million transported twenty-foot equivalent SUPPLY CHAIN DIVISION

Logistics and value-added services along the supply chain

End-to-end supply chain Supply Chain services

Objectives and strategies comprehensive Express network. Our general objective is to

EXPRESS division IT in the Global Forwarding business unit will be re-

Group management The asset charge is calculated on the basis of the

Revenue EBIT EBIT

Other operating income Asset charge Depreciation, amortisation

For us/innovation means/

SELECTED KEY FIGURES

Nationwide transport and delivery network in Germany, 2016

Logistics and value-added services along the supply chain

Other operating income Asset charge Depreciation, amortisation

Other operating expenses EAC Change in provisions

EBIT after asset charge Change in other non-current assets

Target remuneration for the Board of Management members active as at 31December2016

Payments made to the Board of Management members active as at 31December2016

Share-based component with long-term incentive effect

Pension commitments under the previous system

Remuneration paid to Supervisory Board members

Trade volumes: compound annual growth rate, 2015 to 2016

Changes in revenue, other operating income and operating expenses, 2016

Consolidated EBIT up 44.8% Total dividend and dividend perno-parvalue share

Liquidity and sources of funds Financial liabilities

Capex and depreciation, amortisation and impairment losses, full year

Capex and depreciation, amortisation and impairment losses, Q4

Calculation of free cash flow

Key figures Post - eCommerce - Parcel division

eCommerce- Parcel: revenue

Parcel Germany: volumes

Key figures EXPRESS division

EXPRESS: revenue by product

EXPRESS: volumes by product

Key figures GLOBAL FORWARDING, FREIGHT division

Global Forwarding: revenue

Global Forwarding: volumes

Key figures SUPPLY CHAIN division

Shareholder structure1 Shareholder structure by region1