DPDHL 2015 Annual Report

2015 annual Report
SMART LOGISTICS
119
TO OUR SHAREHOLDERS
25
SELECTED KEY FIGURES
20
A
GROUP MANAGEMENT REPORT
2198
23 General Information
44 Report on Economic Position
70 Deutsche Post Shares
72 Non-Financial Figures
83 Post-Balance-Sheet Date Events
83 Opportunities and Risks
94 Expected Developments
B
CORPORATE GOVERNANCE
99126
101 Report of the Supervisory Board
105 Supervisory Board
106 Board of Management
108 Mandates
109 Corporate Governance Report
C
CONSOLIDATED FINANCIAL
STATEMENTS
127204
129 Income Statement
130 Statement of Comprehensive Income
131 Balance Sheet
132 Cash Flow Statement
133 Statement of Changes in Equity
134 Notes to the Consolidated FinancialStatements
of Deutsche Post AG
203 Responsibility Statement
204 Independent Auditors Report
D
FURTHER I NFORMATION
205212
207 Index
208 Glossary
209 Graphs and Tables
210 Multi-Year Review
212 Publication Service
212 Contacts
Financial Calendar
Cross-references Websites
SMART
LOGISTICS
The life sciences and healthcare industry
increasingly requires transport solutions
which guarantee product integrity. We
support our customers through efficient,
flexible and highly reliable transport
solutions along the entire supply chain.
Byshaping innovative solutions DHL will
become the preferred logistics partner
forthe life sciences industry.
2
DR FRanK aPPEl
Chief Executive Officer
Deutsche Post DHL Group 2015 Annual Report

To our Shareholders
3
Future growth potential
SMART
LOGISTICS
In the global logistics business, you need size, reach, scalable products and
innovative services to compete over the long term and achieve profitable
growth. Likewise, you have to identify and open up potential in future growth
markets and industries.
The Life Sciences and Healthcare sector is without doubt one such growth
market. The world market for pharmaceuticals, for example, has doubled within
a decade. As demand has risen, so have the qualitative and regulatory
requirements of manufacturers, including in particular their modes of transport.
Standardised processes, compliant networks and temperature-controlled supply

chains are order of the day. On the following pages, we illustrate how we
servethis sensitive sectors customers with efficient, transparent, reliable and
high-quality transport solutions in other words: with smart logistics.
2015 WAS A YEAR OF TRANSITION

FORDEUTSCHE POST DHL GROUP
I have often emphasised that 2015 was a year of transition for Deutsche Post DHL
Group. A series of events and changes demanded our attention: we achieved
agood wage agreement for Deutsche Post AG in Germany after a long strike,
expanded the parcel business into additional countries in Europe, made further
investments in our express network, began the IT renewal of Global Forwarding
and continued the restructuring of Supply Chain. In my view, this means we
have addressed the most important items on our Strategy 2020 agenda which
are essential to the companys future success.

4
As I said back in 2014, we accepted some short-term effects on our consolidated

EBIT as a result of these strategic measures across the divisions. As a result
ofre-orientating the transformation process at Global Forwarding, we recorded
negative one-off effects in the amount of 336 million in financial year 2015.
Moreover, the earnings exposure of 200 million for full-year 2015 announced in
the third quarter was almost fully recognised. Nonetheless, we met the forecast
which had been adjusted over the course of the year.
In 2015, we increased consolidated revenue to 59.2 billion, due to positive

currency effects. The German parcel business in the Post - eCommerce - Parcel
division and the international business in the Express division continued to
generate dynamic growth. Lower fuel surcharges and changes to the way in
which revenue is reported as a result of revised contract termswith a customer
inthe Supply Chain division had a negative impact on revenue.
At the same time, we have seen that our business model is fundamentally intact
and our profitability remains high, not least given the sound operating perform-
ance in the fourth quarter. Furthermore, every year we get better at generating
cash from our operating business; for instance, we significantly exceeded our
goal of using cash flow to cover the prior-year dividend.
I AM VERY CONFIDENT THAT 2016

WILL BE A GOOD YEAR FOR US
With regard to 2016, I am very confident that it will be a good year for us. This
isfor three reasons in particular: First, the one-off effects that set back earnings
in2015 will be behind us. Second and even more important for the future
we shall increasingly see the positive effects of the structural improvementsthat
we have initiated or already implemented in the individual divisions. Third,
ourinvestments in growth will increasingly pay off.

To our Shareholders
5
We therefore continue to expect consolidated EBIT to reach between 3.4 billion

and 3.7 billion in financial year 2016. The Post - eCommerce - Parcel division
islikely to contribute more than 1.3 billion to this figure. Compared with the
previous year, we expect a significant improvement in overall earnings to
between 2.45 billion and 2.75 billion in the DHL divisions. All of the DHL divisions
are expected to contribute to the increase. Whereas earnings in the Express
division are likely to continue rising steadily, a significant improvement is expect-
ed for Global Forwarding, Freight and Supply Chain, now that the expenses
incurred in connection with the transformation process will no longer arise. The
Corporate Center / Other result is projected to remain at around 0.35 billion.
At the Annual General Meeting in May, we shall propose a dividend of 0.85 per
share. This remains within our target payout ratio of 40 % to 60 % of net profits
adjusted for one-off effects.
As a scientist, I am aware that change is essential in order to enable better

solutions to evolve. In this regard, we are doing an outstanding job of this for
our customers and as a Group, we have proven again that we are always
willing to challenge and improve ourselves as we follow our clear strategy for
the future.

6
SERIALISATION
CREATESSECURITY
7 10
VISIBILITY CREATES
TRANSPARENCY
11 12
STANDARDS THAT
ENSUREQUALITY
13 15
PRESENCE
SUPPORTS POTENTIAL
16 17
EXPERTISE IN DEVELOPING
NEW MARKETS
18 19

7
SERIALISATION
CREATES
SECURITY
Counterfeit, stolen and adulterated medicines pose a risk to the health
of patients and also to the reputation and success of pharmaceutical
companies. In response, regulators are increasingly turning to serialisation
to help minimise these dangers and improve patient safety.
Open here

8
This means giving each pack, case or pallet

aunique, traceable identifier so that a product
can be verified along the entire supply chain.
Todatethere is no single, internationally
standardserialisation system in place a fact
that makes meeting regulatory challenges
evengreater.
Facilitates the monitoring

ofmedicines that are
newtothe market.
C K AGIN
A
G
P
Regulations and standards

differ from country to
country, making packaging

standardisation a challenge.
S
OL
U TI O N

9
an e-pedigree is the
electronic documentary
data for a particular
batch of a drug.
Serialisation leads to enhanced brand protection

as well as improved customer safety.
Serialisation offers protection against stolen,
tampered with, recalled or expired drugs.
Developing solutions
requires investment
andcollaboration with
printing-technology
vendors, designers of
security inspection
systems,IT vendors and
more partners.
a unique identifying serial

number allows the move-
ment of units to be tracked
along the entire supply
chain.

10

11
VISIBILITY
CREATES
TRANSPARENCY
DHL offers a raft of temperature-controlled, high visibility, monitored
services. In 2015, DHL introduced the lifetrack app, the first cold-chain
tracking mobile app designed for the pharmaceutical industry.
12
Supply chains in the life sciences and healthcare industry are becoming
more and more complex due to challenges such as channel-specific
distribution, regulations and globalisation. There is an increased need
for end-to-end visibility ideally based upon real-time tracking and
sensordata. Product protection preventing damage or even spoilage
isvery high on pharmaceutical company agendas, which means itsalso
apriority for DHL. We offer global networks and IT systems specialised
for the life sciences sector. Thanks to products such as Thermonet,
OceanSecure, LifeConEx and Medical Express, DHL offers customers the
high quality and regulatory requirements that they need.
With the new LifeTrack app, introduced in 2015, our customers can follow
and manage their cold chains via their mobile devices.
Android, Google Play and the Google Play logo are trademarks of Google Inc.
Apple and the Apple logo are trademarks of Apple Inc., registered in the U. S. and other countries.
App Store is a service mark of Apple Inc.

13
STANDARDS
THAT ENSURE
QUALITY
the global demand for expensive, structurally complex and temperature-
sensitive biologics and specialty drugs is growing. at the same time,
thereare more and more regulatory requirements. to meet the industrys
changing demands a new generation of supply chains needs to be
developed. DHL enhances its workflows and products continuously to
support this development.
u l atE tEmPER atuR

R EG E

14
Highly specialised,
compliant network
Standard warehousing, storage and dispatch

provide value-added services and process control
from order to payment.
Certified life Sciences Stations close to major airports

operate to Good Distribution Practice standards,
ensuringcustomers temperature-sensitive products are
held, handled and forwarded under pre-defined
controlled conditions.
Intelligent IT networks harness the power of big data

andanalytics to reduce risk and make
better decisionsabout managing thetemperature-
controlled supply chain.
Globally
uniform
procedures
Product characteristics as well as seasonal and

route-dependent packagingrequirements are
specifically documented and theagreed conditions
are monitored during transport.
Effective temperature-controlled supply chains rely

onwell-defined standard operating procedures based
upon comprehensive supplychain risk assessment.
Specially trained employees have the know-how

toensurecompliance with industry standards
andensurethatthe quality of processes is
continuouslyoptimised.

15
Risk-averse
packaging
the choice of packaging is always a balance

betweenrisk and cost.
active systems use an energy source combined

withthermostatic control to maintain temperature.
Integratedreport-back technologies such as GPS
andtelemetryensure even greater security during
transport.
Passive packaging solutions use cooling materials

suchasdry ice to keep products at the desired
temperature.
25 C
15 C
Total cost 8 C
strategy 2 C
18 C
a
leading manufacturers and their logistics partners

areevolving away from simply managing costs
onapurchase-price basis, to encompassing all direct
andindirect costs.
Indirect costs such as product losses or reputational b

risksaretypically difficult to identify and merge.
they can however haveasignificant financial impact.

16
PRESENCE
SUPPORTS
POTENTIAL
We ensure our leading position in a strong growing
market through our global presence and network
expertise.
Russia
NORTH AMERICA EUROPE
SOUTHEAST
ASIA
China
India
Brazil
LATIN
AMERICA
FORECAST OTC 1 GROWTH PHARMACEUTICAL SPENDING PROJECTED SPECIALTY DRUG

2011 2016 IN BRIC 2011 AND 2016 SPENDING 2012 2020
% uS$ Bn uS$ Bn
2011
2016
17.1 161
15.4 401.7
8.3
67
192.2 +109%
since 2016
4.2
47 87.1 +121%
30 29 27 since 2012
2.1 16
14
Global Europe North Latin Southeast China Brazil India Russia 2012 2016 2020
America America Asia
1
OTC stands for over the counter. These are medicines Source: IMS 2012 b. Source: PwC Health Research Institute; Medical Cost Trend:
thatcan be sold without a prescription. Behind the numbers 2015, June 2014.
Source: IMS 2013.

17
GLOBAL,
SPECIFIC DHL understands the challenges facing life sciences
INFRASTRUCTURE companies. together, weve created solutions.
Worldwide expertise of over including more than
4,900
DHL life sciences specialists
150 pharmacists
Clinical trial
depots in
23 Network of life sciences-certified

stations in more than
countries
40
countries
Global warehousing
footprint in more than Pharma GMP facilities
56
inmore than
countries: more than

160 sites and over
15countries on all continents
1.8million square (GMP stands for good
metres of floor space manufacturing practice.)
Over
15years of a partnership approach

tosolving our customers needs
inthe sector

18

19
EXPERTISE IN
DEVELOPING
NEWMARKETS
In June 2015, the German logistics
activities of drug manufacturer
STADA were transferred to DHL, more
than an outsourcing project. the
focus on core competencies will
save costs and ensure customer
flexibility and has opened up new
markets for DHL.

18
THIS IS A VERY SPECIAL PROJECT,
WITH TWO RENOWNED
COMPANIES MERGING THEIR
CORE COMPETENCIES.
DR manFRED anDulEIt, StaDa
DR manFRED anDulEIt
Vice President Corporate
Governance & Corporate
Compliance, STADA
WOlFRam HEInISCH
Vice President of Strategy
Planning & Business
Intelligence, STADA

19
This is what you call a win-win-win As simple as it sounds, the deal called
situation, says Wolfram Heinisch, Vice for much discussion and a willingness
President of Strategy Planning & Busi- to look beyond individual points of
ness Intelligence at STADA, with regard view. A common overall objective and
to the transfer of STADAs logistics activ- a genuine willingness to compromise
ities to DHL. STADA, the employees and on the partof all parties that was es-
DHL are all winners. sential to achieving positive results,
explains Dr Manfred Anduleit, Vice
DHL integrated the German logistics President ofCorporate Governance &
activities of drug manufacturer STADA Corporate Compliance, who played a
as of 1 June 2015, assuming responsibil- major role alongside STADAs Heinisch.
ity for employees at the companys two The core project team consisted of
locations in Florstadt and Bad Vilbel. around 20 individuals. Working groups
The idea for the one-of-a-kind out- were formed so that a variety of topics,
sourcing project came from STADA. including IT, pharmaceuticals legisla-
Wolfram Heinisch explains: There is a tion, security, customs clearance and
great deal of pressure on prices in our finances, could be addressed at the same
sector and logistics expenses are driving time. HR was also brought into the fold
costs ever higher. This, of course, poses as the changes would directly affect
the question of how we can lower costs employees.
over the long term whilst ensuring a
high degree of flexibility by always Heinisch continues: The majority of
having available logistics capacity. The STADA employees identify closely with
answer: by finding a strong partner. the company. So its natural to have con-
cerns when some are asked to switch to
DHL was able to convince STADA that it another company. STADA did, however,
was the right partner for the project. manage to involve the employees at an
Wim Eringfeld, Vice President of Busi- early stage and was thus able to provide
ness Development & Account Manage- them with information and outline
ment at DHL Supply Chain Germany, their long-term perspectives.
Alps & Nordics says: We were very
pleased when STADA approached us Winning trust was not only important
as this project perfectly encapsulates with respect to the 144 men and women
theFocus element of our Strategy 2020. who moved from STADA to DHL, but
It enables us to concentrate on our core also with regard to STADAs manage-
compentecy of logistics whilst strength- ment board. The decision to outsource
ening our customers businesses. They our German logistics activities is one
need no longer deal with logistics con- that will greatly impact our future busi-
siderations and can concentrate all of ness, Heinisch says. He noted that
their efforts on their core business. We whilst concerns existed on both sides, as
are enabling STADA to improve its posi- the project progressed it became clear
tion in the market. Each specialist offers just how much the two specialists in
their own specific expertise to create their respective fields could learn from
synergies and reduce costs. each other.

18
the 350 square metres

cold-storage facility has
400pallet-storing posi-
tions.this is where the
highly sensitive pharma-
ceutical products are
stored at a constant
temperature of between
+ 2and + 8degrees Celsius.

19
the pharmaceuticalprod-
ucts are sorted into some
28,000 containers inthe
small-parts warehouse,
where they are prepared
for shipping. atotal of
80employees work two
shifts a day in theware-
house in Florstadt.

18
We had numerous constructive discus-
sions, Heinisch continues. For example,
DHL asked questions about our logis-
tics processes that never would have
occurred to us. STADA, on the other
hand, had a great deal of expertise re-
garding the regulatory situation in
pharmaceuticals. It took approximately
one year from the first meeting until
thetransfer of STADAs logistics oper-
ations took effect on 1 June 2015.
The transfer went smoothly, not with a

bang, says Dr Anduleit. Just as wed
hoped. The subsequent months also
went according to plan, testifying to
thetrust already gained whilst creating
potential for the future. Indeed, STADA
subsidiaries in various countries are
currently conducting talks with DHL on
future collaborations. There are also a
number of plans for the Florstadt site.
Activities include examining whether to
replace STADAs current IT system with
DHLs standard system so that processes
can continue to be simplified and syn-
ergies generated.
There are also bigger plans in the pipe-

line: We are currently working on a
campus project in Florstadt in order to
support STADAs future growth whilst
providing our Life Sciences & Health-
care expertise to other customers,
explains Wim Eringfeld.
YOU GET TO A POINT WHERE YOU

SIMPLY HAVE TO SAY ITS TIME
TOLET GO. WE PUT OUR TRUST IN
DHL AND IT HAS PAID OFF.
WOlFRam HEInISCH, StaDa

19
State-of-the-art facilities
extend across an area
equivalent to almost
fivefootball pitches. the
conveyer belt alone is
almost two kilometres
inlength. Some 27,000
deliveries leave the
Florstadtwarehouse on
average each month.

18
the facility has an automatic

small-parts warehouse, covering
1,600 square metres, which can
holdup to 43,000 containers.

19

20
SELECTED KEY FIGURES

01
EBIT 2015
2,411 million
Profit from operating activities.
EMPLOYEES
497,745
(previous year: 2,965 million)
CONSOLIDATED NET PROFIT

FOR THE PERIOD
Headcount at the end of 2015, including trainees.
m (previous year: 488,824)
2015
1,540
RETURN ON SALES 2015
4.1 %
2014
2,01
After deduction of non-controlling interests.
(previous year: 5.2 %)
REVENUE 2015 EARNINGS DIVIDEND
59,230 million
(previous year: 56,630 million)
PERSHARE

2015
1.2
PERSHARE

2015
0.5 1
2014 2014
1.1 0.5
Basic earnings per share. 1

Proposal.
2014 2015 +/ % Q 4 2014 Q 4 2015 +/ %
Revenue m 56,630 59,230 4.6 15,365 15,339 0.2

Profit from operating activities (EBIT) m 2,965 2,411 18.7 905 957 5.7
Return on sales 1
% 5.2 4.1 5.9 6.2
EBIT after asset charge (EAC) m 1,551 877 43.5
Consolidated net profit for the period 2
m 2,071 1,540 25.6 640 670 4.7
Free cash flow m 1,345 1,724 28.2 1,114 1,705 53.1
Net debt 3 m 1,499 1,093 27.1
Return on equity before taxes % 26.3 19.7
Earnings per share 4 1.71 1.27 25.7 0.53 0.55 3.8
Dividend per share 0.85 0.855 0.0
Number of employees 6 488,824 497,745 1.8
1
EBIT / revenue.
2
3
Calculation Group management Report, page 61.
4
Basic earnings per share.
5
Proposal.
6
Headcount at the end of the year, including trainees.

A
GROUP
MANAGEMENT
REPORT
21 98
A GROUP MANAGEMENT REPORT

A
GROUP MANAGEMENT REPORT
23 GENERAL INFORMATION
23 Business model and organisation
25 Business units and market positions
33 Objectives and strategies
37 Group management
39 Disclosures required by takeover law
43 Remuneration of the Board of Management andtheSupervisory Board
43 Research and development
44 REPORT ON ECONOMIC POSITION

44 Overall Board of Management assessment oftheeconomicposition
44 Forecast/actual comparison
45 Economic parameters
49 Significant events
49 Results of operations
53 Financial position
60 Net assets
62 Business performance in the divisions
70 DEUTSCHE POST SHARES

72 NON-FINANCIAL FIGURES
72 Employees
75 Health and safety
75 Corporate responsibility
78 Procurement
79 Customers and quality
82 Brands
83 POST-BALANCE-SHEET DATE EVENTS

83 OPPORTUNITIES AND RISKS
83 Overall Board of Management assessment of opportunity and risk situation
84 Opportunity and risk management
87 Categories of opportunities and risks
94 EXPECTED DEVELOPMENTS
94 Overall Board of Management assessment of the future economic position
94 Forecast period
94 Future organisation
94 Future economic parameters
97 Revenue and earnings forecast
97 Expected financial position
98 Development of further indicators relevant for internal management
Group Management Report General Information Business model and organisation
23
GENERAL INFORMATION
Business model and organisation
Four operating divisions
Deutsche Post DHL Group is the worlds leading mail and logistics company operating
under two strong brands: Deutsche Post is Europes leading postal service provider. DHL
is uniquely positioned in the worlds growth markets, with a comprehensive range of
international express, freight transportation, e-commerce and supply chain manage-
ment services.
Deutsche Post AG is a listed corporation domiciled in Bonn, Germany. The Group
is organised into the four operating divisions Post - eCommerce - Parcel, Express, Global
Forwarding, Freight and Supply Chain, whose products and services we describe in the
Business units and market positions chapter. Each of them is under the control of its own div Page 25ff.
isional headquarters and subdivided into functions, business units or regions for report-
ing purposes.
We consolidate the internal services that support the entire Group, including
F
inance, IT, Procurement and Legal, in our Global Business Services (GBS). This allows
us to make even more efficient use of our resources whilst reacting flexibly to the rapidly
changing demands of our business and our customers.
Group management functions are centralised in the Corporate Center.
Organisational structure of Deutsche Post DHL Group

A.01
Corporate Center Divisions
Finance, Post- Global

GlobalBusiness eCommerce - Forwarding,
CEO Services Human Resources Parcel Express Freight Supply Chain
Board member Board member Board member Board member Board member Board member Board member
DrFrank Appel Lawrence Rosen Melanie Kreis Jrgen Gerdes Ken Allen DrFrank Appel John Gilbert
Functions Functions Functions Business units Regions Business units Regions

Board Services Corporate Corporate HR Post Europe Global EMEA (Europe,
Corporate First Accounting & Germany eCommerce- Americas Forwarding Middle East
Choice Controlling CorporateHRStan Parcel Asia Pacific Freight and Africa)
Corporate Legal Corporate Finance dards&Programs MEA (Middle Americas
Customer Solutions& Global Business CorporateHRInter East and Asia Pacific
Innovation Services: Procure- national Africa)
Corporate Office ment, Real Estate, HR Post - eCom-
Corporate Finance Operations, merce- Parcel
Development Legal Services etc. HR Express
Corporate Executives Investor Relations HR GlobalForwarding,
Corporate Heritage& Corporate Audit& Freight
Industry Associ Security HR Supply Chain
ations Taxes HR Finance, GBS, CSI,
Corporate CC
Communications &
Responsibility
Corporate Public
Policy&Regulation
Management

24
Organisational changes
On 27April2015, Roger Crook stepped down from the Board of Management. Until
the appointment of a new board member for the Global Forwarding, Freight division,
Deutsche Post DHL Groups CEO, DrFrank Appel, has taken over the corresponding
tasks in a dual role.
In the Supply Chain divisions organisational structure the former Supply Chain
and Williams Lea business fields were merged because the highest management body
no longer manages them separately.
A presence that spans the globe

Deutsche Post DHL Group operates in over 220 countries and territories. The most
dpdhl.com/en/investors important locations can be found in the list of shareholdings. Table A.02 provides an over-
view of market volumes in key regions. Our market shares are detailed in the business
units and market positions chapter.
Market volumes1
A.02
Global Germany
(2014) (2015)
22M TONNES
Air freight2
9.5BN
Parcel6
20BN
International
49M TEUS express market 5 4.4BN
(2013) Mail communication6
Ocean freight3
16.5BN
Dialogue marketing6
176BN
Contract logistics4
(2014) Middle East/Africa Americas Europe Asia Pacific

Air freight (m tonnes)2 1.3 5.0 5.6 9.7
Ocean freight (mTEUs) 3
4.3 8.1 6.3 30.5
Contract logistics (bn)4 5.2 52.3 63.3 55.5
International express
market (bn)5 7.2 (2013) 6.0 (2013) 6.5 (2013)
Road transport (bn)7 192
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: Seabury Cargo Advisory. Previous years figures not comparable because the data source has changed.
4
Source: company estimates based upon Transport Intelligence.
5
Includes express product Time Definite International. Country base: America, 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
Only Germany. Source: company estimates.
7
Total for 25 European countries, excluding liquids and bulky goods. Source: MI Study DHL 2015, based upon Eurostat, financial
publications, copyright IHS Global Insight, 2015. All rights reserved. Prior-year figures are not comparable because the country base
hasbeen expanded and the calculation model changed.

Group Management Report General Information Business model and organisation
Business units and market positions 25
Business units and market positions

POST - ECOMMERCE - PARCEL DIVISION
Nationwide transport and delivery network in Germany, 2015

A.03
11,000
Paketshops
2,750
Packstations
Around
3.9
million parcels
110,000
post boxes
3,400
sales points
perworking day
Around
13,000 About
108,000 82
61
retail outlets letter and parcel mail centres
deliverers Around
million letters 1,000
perworking day Paketboxes
33
parcel centres
The postal service for Germany Domestic mail communication market,

business customers, 2015
We deliver about 61million letters every working day in Germany, making us Europes A.04
Market volume: 4.4billion
largest postal company. Our products and services are aimed at both private and busi-
ness customers and range from physical, hybrid and electronic letters and merchandise
to special services such as cash on delivery, registered mail and insured items. Our
electronic communications platform E-POST allows companies, administrations and b
private customers to communicate securely and advantageously.
In the reporting year, the domestic market for business communications was around
4.4billion (previous year: 4.6billion). We look at the business customer market we a
compete in and include those companies that provide services to business customers.
These include both companies targeting end customers and consolidators offering par-
tial services. Our market share declined slightly to 62.1% compared with the prior year a Deutsche Post 62.1%
(64.5%). On 1January2015, we raised the price of a standard letter from 0.60 to 0.62 b Competition 37.9%
and reduced that of a compact letter from 0.90 to 0.85. Source: company estimate.

26
Domestic dialogue Targeted and cross-channel advertising

marketingmarket,2015
A.05 Our portfolio of dialogue marketing services allows advertisers to efficiently reach spe-
cific customer target groups. We offer end-to-end services from a single source from
b address services to design and creative tools to print, shipment and advertising effect
iveness measurement. Customer dialogue is cross-channel, personalised and automated.
The management of dialogue campaigns can be fully a utomated so that digital and
physical items with interrelated content reach recipients according to a co-ordinated
timetable. Our digital services allow companies to determine their target groups by
analysing the visits to their websites or online shops.
The German dialogue marketing market comprises advertising mail along with
a
telephone and e-mail marketing. It shrank by 3% in 2015 to a volume of 16.5billion,
a Competition 86.9% primarily because companies reduced advertising expenditure or shifted to online
b Deutsche Post 13.1% media. Our share of this highly fragmented declining market increased slightly to 13.1%
Source: company estimate.
(previous year: 13.0%).
International mail market Sending mail and merchandise internationally

(outbound), 2015
A.06 We carry mail and light-weight merchandise shipments across borders and provide
international dialogue marketing services. For business customers in key European mail
b markets, we offer international shipping services. Our innovative products set us apart
from the competition. For example, we are developing international shipping solutions
for consumers (B2C) in the growing e-commerce sector. Our portfolio also comprises
consulting and services for all physical and digital dialogue marketing needs. Further-
more, we offer physical, hybrid and electronic written communications for international
business customers. Customers outside Germany benefit from our expertise and ex
a
perience in order to do business successfully in the German market.
The global market volume for outbound international mail was around 6.6billion
a Competition 85.0% in 2015 (previous year: 6.4billion). We were able to compensate for the d ecline in
b DHL 15.0% light-weight letters and press products through an increase in the proportion of heavier
items. Our market share declined slightly year-on-year to 15.0%.
Domestic parcel market, 2015 Worldwide portfolio of parcel and e-commerce services
A.07
Market volume: 9.5billion We offer our customers a dense network of parcel acceptance points in Germany. Test
projects such as the Parcelcopter and car drop delivery services underscore our innov
ative edge. Customers can choose whether they wish to receive their parcels during a
specific delivery window, on the same day or as quickly as possible. Thanks to automated
b recipient services and intelligent infrastructure, they can also use our new parcel box
units for apartment buildings to send and receive parcels safely from home around the
a
clock. We help our business customers to grow their online retail businesses: our market
place, Allyouneed.de, for example, provides an additional sales channel for small
and medium-sized retailers. On request, we can cover the entire logistics chain
throughtoreturns management whilst our 2-Mann-Handling service offers a solution
a Competition 56.3%
b DHL 43.7% for sending larger and heavier items ordered online. With the online supermarket
AllyouneedFresh.com and the DHL Multibox, we also service the growing online grocery
shopping s egment.

Group Management Report General Information Business units and market positions
27
The German parcel market volume totalled around 9.5billion in 2015 (previous
year: 8.8billion). We expanded our market share to 43.7% (previous year: 43.0%).
We are offering e-commerce services in an increasing number of the most important
markets around the world. In Europe, we began setting up our own delivery networks
in Slovakia and Austria and in Sweden we acquired a nationwide parcel shop network
from DHL Freight. We now have such networks in nine countries. Furthermore, we have
connected around 10,000 Parcelshops and set up the first Packstations. Outside Europe,
we expanded the portfolio of Blue Dart Express in India to cover delivery options to end
customers, which included installing the countrys first parcel collection station and
introducing a mobile Parcelshop service. In the United States, we offer additional
services, such as day-definite delivery. We have added e-commerce services to existing
shipping routes in and out of the most important international markets, such as the
development and operation of domestic online marketplaces as well as end-to-end order
processing that includes warehousing, dispatching, customer service and marketing.
EXPRESS DIVISION
Express services in more than 220 countries and territories

In the Express division, we transport urgent documents and goods reliably and on time
from door to door. Our network spans more than 220 countries and territories, in which
some 90,000 employees provide services to more than 2.5million customers. As a
global network operator that applies standardised processes, we are consistently opti-
mising our service to keep customer commitments, respond specifically to their wishes
and always deliver the best possible quality.
Time-definite international shipments as our core business

Our main product is Time Definite International (TDI), which is a pre-defined delivery
service. We also provide industry-specific services to complement this product. Our
Medical Express transport solution, which is tailored specifically to customers in the
Life Sciences&Healthcare sector, for example, offers various types of thermal packaging
for temperature-controlled, chilled and frozen content. Collect and Return is used pre-
dominantly by customers in high-tech industries: technical products are collected from
the user, taken in for repairs and then returned.
Our virtual airline

As an express service provider, we operate a global network consisting of several airlines,
some of which we own 100%. With an annual average of 3.8million transported tonnes,
our virtual airline is one of the leading international air freight carriers.

28
The combination of our own and purchased capacities, which include varied terms
of contract, allows us to respond flexibly to fluctuating demand. Figure A.08 illustrates
how our available capacity is organised and offered on the market. The largest buyer of
this freight capacity is the DHL Global Forwarding business unit.
We modernised the first part of our European fleet during the reporting year. The
Boeing 757 aircraft we have put into operation are more efficient, have more capacity
and are equipped with improved technology. This will reduce repairs whilst improving
working conditions for flight personnel.
Available capacity
A.08
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
European international International express business grew again

expressmarket,2013: 1,2,3 top 4
A.09 In the reporting year, the international express business again benefitted from e-com-
merce and the growing importance of small and medium-sized enterprises in inter
FedEx 10% national trade. The strong growth of our TDI product compared with the competition
TNT 12% indicates that we have maintained our position as global market leader.
UPS 25% Expanding our network in the Europe region

Our express business in the Europe region performed well again during the reporting
year. In 2013, we were the clear market leader. We are expanding our hub in Brussels,
DHL 41%
where we are creating new jobs and thus consolidating our position as an employer of
repute in Belgium. We are also investing in the set up and expansion of facilities in
Includes the TDI express product. countries such as Sweden, Germany and Turkey.
1
2
Country base: AT, DE, DK, ES, FR, IT, NL, RU, TR, UK.
3
Most recent market study.
Source: Market Intelligence 2014, annual reports
and desk research.

29
Improving service in the Americas region American international

expressmarket,2013: 1,2,3 top 4
We are also improving our services in the Americas region. On-going measures include A.10
the expansion of our hub in Cincinnati, whilst in Mexico we have significantly increased
the number of service points. Internationally we have expanded our service to include TNT 1%
a new direct weekly flight at the weekend, with Monday delivery, between the United DHL 18%
States and Singapore as well as a further direct flight between China and the United
States. UPS 32%
Supporting development in Asia

Despite the slower pace of economic growth, the Asia Pacific region remains an import FedEx 46%
ant market for us. In the reporting year, a new gateway was opened in Melbourne to
support the intra-regional business to and from Australia. At Singapores Changi Airport Includes the TDI express product.
1
2
Country base: BR, CA, CL, CO, CR, GT, MX, PA, PE, US.
we are building a new hub with a fully automated sorting and processing system that 3
will triple our throughput and greatly increase shipment sorting at this strategic location. Source: Market Intelligence 2014, annual reports
and desk research.
Reliable partner in the MEA region Asia Pacific international

expressmarket, 2013: 1,2,3 top 4
The business in the MEA (Middle East and Africa) region witnessed positive develop- A.11
ment in 2015 as well, although the Middle East again suffered from enormous geo
political influences. Despite the situation, we were able to achieve further growth and TNT 4%
maintain our operations whilst adhering to legal requirements and ensuring the safety UPS 11%
of our employees for the benefit of our customers. In the reporting year we began ser-
vicing Jordan, Egypt, Lebanon, Iraq and parts of Morocco with our own flights for the FedEx 20%
first time and we opened new facilities in Cairo. In sub-Saharan Africa we improved
links between the individual countries and the global market whilst developing the
necessary infrastructure. Furthermore, we increased the number of service points from DHL 44%
3,500 to 5,400 and expanded logistics facilities and transport systems.
1
Includes the TDI express product.
2
Country base: CN, HK, IN, JP, KR, SG.
3
Source: Market Intelligence 2014, annual reports
and desk research.

30
GLOBAL FORWARDING, FREIGHT DIVISION
Air freight market, 2014: top 4 The air, ocean and overland freight forwarder
A.12
Thousand tonnes1 The Global Forwarding and Freight business units are responsible within the Group for
air, ocean and overland freight transport. Our freight forwarding services not only in-
Panalpina 858
clude standardised transports but also multimodal and sector-specific solutions as well
DB Schenker 1,112 as individualised industrial projects.
Our business model is asset-light, as it is based upon the brokerage of transport
Kuehne+Nagel 1,194
services between our customers and freight carriers. Our global presence ensures net-
work optimisation and the ability to meet the increasing demand for efficient routing
and multimodal transports.
DHL 2,276
1
Data based solely upon export freight tonnes. The leader in a sluggish air freight market
Source: annual reports, publications Growth in the global air freight market was sluggish during 2015 as air cargo volumes
andcompany estimates.
remained weak. IATA, the global airline industry association, attributes this develop-
Ocean freight market, 2014: top 4
A.13
ment to the decline in trade activities, mostly in emerging markets. Overall, the world-
Thousand TEUs1 wide freight tonne kilometres flown during the reporting year grew by only 2.2% accord
ing to IATA. In light of the weak volume development, the on-going expansion of
Panalpina 1,607
capacity on the market increased pressure on the industry as commercial airlines again
DB Schenker 1,983 brought more wide-body passenger planes into service. Moreover, the strong peak sea-
son volumes seen in the fourth quarter failed to materialise in 2015. Overall, this led to
DHL 2,932 a persistently weak market environment with stiffer competition and increased pressure
on margins. After transporting around 2.3 million export freight tonnes in the previous
year, we remained the air freight market leader in 2015.
Kuehne+Nagel 3,820
1
Twenty-foot equivalent units. Ocean freight market experiences surplus capacities and low freight rates
Source: annual reports, publications In the reporting year, the global ocean freight market saw slight growth again. Overall
andcompany estimates.
freight rates remained at a low level on the largest trade lanes. On the particularly im-
European road transport market, portant lane between Asia Pacific and Europe, rates remained at an extremely low level.
2014:top 5
A.14 The global market continues to face surplus capacities caused by the introduction of new
Market volume: 192 billion1,2
and larger vessels. Although freight carriers have successfully limited the availability of
Kuehne+Nagel 1.3% this additional capacity either by adjusting travel speeds, through blank sailings or
Dachser 1.7% capacity reallocations low rates still prevailed throughout the market and affected prof-
itability. After transporting 2.9million twenty-foot equivalent units in the previous year,
DSV 1.7%
we remained the second-largest provider of ocean freight services in the reporting year.
DHL 2.2%
Stagnation in European overland freight market
DB Schenker 3.3%
The European road freight market was virtually stagnant in 2015, after seeing slight
growth in the prior year. Two opposing factors contributed to this development: a vol-
Market size and shares include 25 European ume increase caused by the slight economic upturn in Europe and the current low oil
1
countries, excluding bulk and specialties

transport. price no longer supporting market growth as it had previously for years. In what remains
2
Figures not comparable to last years based
uponextended country scope and changed a highly competitive environment, DHL was able to perform in line with the market by
projection model. focussing exclusively upon organic growth.
Source: MI Study DHL 2015 (based upon Eurostat,
financial publications, IHS Global Insight).

31
SUPPLY CHAIN DIVISION
Customer-centric outsourcing solutions

As the worlds leading contract logistics provider, we create a competitive advantage for
our customers in the supply chain business by delivering customised logistics solutions
based upon globally standardised modular components including warehousing, trans-
port and value-added services.
Contract logistics for a complex global marketplace

A highly complex and rapidly changing global marketplace is the source of unprece-
dented change for the supply chain industry and its customers. Stand-alone warehous-
ing and transport operations cannot adequately respond to the fast pace of business and
growing interconnectedness created by global commerce. Our core business in Supply
Chain requires increasingly integrated and sophisticated logistics solutions that combine
value-added and management services with traditional fulfilment and distribution
offerings. Planning, sourcing, vendor management, production, kitting, packaging, re- Glossary, page 208
pairs, returns and recycling are the new norm in contract logistics solutions. Through
global standardisation and innovative offerings, such as service logistics and real estate
solutions, Supply Chains business will further consolidate its established leadership
position in global contract logistics.
Logistics and value-added services along the entire supply chain

A.15
Return Plan
Bringing it back Laying the foundation
for repair or when for an efficient supply
its not needed 6 1 chain
Returns Raw materials
Distribution Inbound
transport
Deliver 5 2 Source
Getting it where Getting the
it needs to be materials at the
time required
Warehousing Production
flows
Outbound transport
Store&Customise 4 3 Make
Getting it ready Supporting product
to sell manufacturing
End-to-end supply chain Supply Chain services

32
Contract logistics market, 2014: Increasing market share in growth markets

top 10
A.16 DHL remains the global market leader in contract logistics, with a market share of 7.4%
Market volume: 176 billion
(2014) and operations in more than 50 countries. The top ten players only account for
SNCF Geodis 1.1% around 20.3% of an estimated 176billion market. We lead the market in mature regions
Neovia 1.1%
such as North America and Europe and are well positioned in rapidly growing markets
DB Schenker Logistics 1.1%
UPS 1.1% such as India and emerging markets throughout the Asia Pacific region. Our global scale,
Rhenus AG 1.2% standardised solutions and local knowledge are supported by on-going investments in
Hitachi 1.6% infrastructure and our employees in these key markets, strengthening our local capacity
for growth.
Norbert Dentressangle1 1.8%
CEVA 1.8% Industry expertise in key sectors and products

Kuehne+Nagel 2.1%
Customers value the innovation derived from our breadth of knowledge and depth of
expertise in the Automotive, Life Sciences&Healthcare, Technology, Engineering&
Manufacturing and Energy sectors. Specialised sector solutions with a global focus on
Life Sciences&Healthcare, Automotive and Technology will allow us to capitalise on
market opportunities and accelerate growth.
The Life Sciences&Healthcare sector is increasingly outsourcing parts of its supply
DHL 7.4%
chains to providers who can ensure compliance with stringent regulatory requirements.
1
Now part of XPO Logistics Inc.; aquired Rising demand for packaging services, temperature-assured transport, warehousing and
inJune2015.
direct-to-market solutions is driving growth in this sector.
Source: Transport Intelligence; Revenue figures
are estimates based upon gross revenue with Automotive sector growth remains strong in North America and Europe, with con-
external customers; exchange rates as at 2014.
tinued leverage of Supply Chains in-plant and aftermarket logistics. Production is shift-
Glossary, page 208 ing increasingly to emerging markets such as China, India and Brazil, where we are
making targeted investments to strengthen our market position. Integrated solutions
Glossary, page 208 such as Lead Logistics Provider (LLP) offer sustainable growth opportunities in this highly com-
petitive outsourcing sector.
Service logistics, technical services and LLP continue to be focus areas of growth
forthe Technology sector. Responsive solutions that allow our customers to adapt to
dynamic market conditions are creating business opportunities in both mature and
emerging markets.

Objectives and strategies 33
Objectives and strategies

CORPORATE STRATEGY
Strategy 2020 sets priorities for our investments and actions

Our Strategy 2020: Focus. Connect. Grow. underscores Deutsche Post DHL Groups
goal of becoming the company that defines the logistics industry. In view of the tense
political situation in parts of the world as well as changed expectations on economic
growth, especially in China, we reviewed our initial situation again in 2015. We reaffirm
that increasing digitalisation, accelerated growth in the e-commerce segment and
momentum in developing and emerging countries offer us significant opportunities. In
line with our strategy, the following priorities for investments and actions have been set
to date:
Focus: We are concentrating on our core mail and logistics business and pursuing
our goal of being the provider, employer and investment of choice. In order to manage
important elements better, we have adjusted our annual employee opinion survey. Further- Employees, page 72
more, we are committed to social responsibility and have set goals and benchmarks accord- Corporate responsibility,
page75ff.
ingly. We see ourselves as a family of different divisions, each focused upon defined
markets and goals. During the reporting year, we successfully initiated a number of
strategic changes, including a wage agreement for Deutsche Post AG in Germany, restruc- Employees, page 74
turing in the Supply Chain division and the IT renewal in the Global Forwarding busi-
ness unit.
Connect: We are further increasing connectivity within our organisation in order to
deliver consistent, first-class service to our customers. The central component of this is
Certified, our Group-wide initiative that enables all employees to gain specific skills and
knowledge relevant to their roles. Every employee in the Group is to be certified. The
employee motivation and customer-centric culture this fosters not to mention the
improved, holistic understanding of operational processes help to differentiate our
services in the market internationally. We developed many new modules and began the
global launch during the reporting year. Inaddition, we are developing collaborative
Group-wide platforms and processes, for e xample, in the areas of operations, increased
digitalisation and leadership development.
Grow: We are strengthening our Group-wide growth initiatives, especially in the
e-commerce segment and in developing and emerging markets with higher structural
growth. For instance, we have invested in the domestic and cross-border parcel business
in Europe as well as in our already comprehensive Express network. Our general object
ive is to increase our presence where the long-term growth potential is greatest. Indeed,
we aim to generate a minimum of 30% of Group revenue in emerging markets by the
year 2020. During the coming years we shall develop and assess further initiatives in-
tended to accelerate our companys growth.
Our strategy is designed to establish a unique market presence by the year 2020
both geographically and in terms of our portfolios performance. Our aim is to be inter-
nationally renowned not only as a highly customer-centric company but also as quality
leaders. When people think logistics, we want them to think Deutsche Post DHL Group.

34
STRATEGY AND GOALS OF THE DIVISIONS
Post - eCommerce - Parcel division

The following strategic approaches outline how we aim to meet the challenges facing
our business and help drive the implementation of our corporate strategy.
Designing a market-based cost structure: To achieve this goal, we are adapting our
networks to changing market conditions and shipment structures. We are also cutting
costs wherever possible and sensible, whilst investing in innovation and growth areas.
Our Parcel Production Concept has made our sorting and transport more efficient.
Founding regional companies under the umbrella of DHL Delivery GmbH with com-
petitive market cost structures ensures our competitiveness.
Providing the highest quality to our customers: We offer our customers the best service
at all times, at the highest level of quality and at reasonable prices, whilst at the same
time protecting the environment. To this end, we are modernising the sorting equip-
ment and IT architecture in our mail network on an on-going basis. We are also invest-
ing in our parcel network and continually adapting it to increasing volumes. Our goal
is to ensure that customers also receive 95% of all parcels sent in Germany the next day.
We operate by far the largest network of fixed-location retail outlets in Germany and
offer recipient services that make it considerably easier for our customers to send and
receive parcels. Furthermore, we are expanding our successful co-operation with retail-
ers, particularly by way of our Paketshops.
Fostering and motivating employees: The key to high quality and high performance
is happy and dedicated employees. Thats why we not only equip our workforce with
state-of-the-art tools; we also offer wages well above those paid by our competitors. In
addition to numerous function-specific training measures, until 2020 we shall be carry
ing out standardised and interactive basic training for all of the divisions employees
around the world, to prepare them for the challenges ahead.
Tapping into new online and offline markets: We are taking advantage of our expertise
in physical communications to offer effective digital communications. Our customers
are able to calculate and purchase postage and also locate retail outlets and Packstations
online and by mobile device. We are also investing in growth areas in all our businesses:
over and above our E-POST product, we are a leading provider of target-group market-
ing in digital media, provide advertisers with consistent, cross-channel targeting, are
the first parcel delivery service in Germany to operate its own shopping portals and have
taken our expertise in transport and network management into the deregulated coach
market with the Postbus. Our eCommerce - Parcel business unit is continuously being
internationalised. In a number of new markets, we intend to go beyond delivery services
to offer domestic value-added e-commerce services. In the reporting year, we opened
up three new markets: Slovakia, Austria and Sweden.
EXPRESS division
In line with our strategic programme Focus, we have stabilised and expanded our busi-
ness, increased our market share, strengthened our margin and merged individual elem
ents of our business in recent years. In the reporting year, our focus was upon realigning
the division as a self-renewing organisation in line with Group strategy.

Group Management Report General Information Objectives and strategies
35
Managing revenue and costs: Our return on sales rises when growing volumes lead
to economies of scale in the network, innovation and automation improve productivity
and costs are strictly managed. We minimise indirect costs through simplified and
standardised processes. For example, we are streamlining our IT system architecture
step by step, whilst ensuring adherence to global standards and quality requirements,
especially as regards facilities and operating materials.
Structuring sales and prices: Using global campaigns, we specifically target small and
medium-sized businesses which could benefit the most from increasing exports. We
concentrate upon items whose size and weight optimally match our network and thereby
create economies of scale. In terms of our pricing policy, we encourage global co-
ordination and discipline. At the same time we work to continuously improve our cus-
tomer approach. Our Insanely Customer Centric Culture programme is intended to resolve prob- Customers and quality, page 80
lems more quickly and meet customer expectations more effectively.
Managing the network: Most of our costs are attributable to the air and ground net-
work. We replace old aeroplanes with newer, more efficient, and thus more cost-effective
aircraft. We sell available cargo space to freight and forwarding companies, especially
to DHL Global Forwarding, improving our network utilisation and reducing costs in the
process. On the ground, we are automating and standardising processes. For example,
vehicles are equipped with shelves as standard and can be loaded directly from
theconveyor belt. We also plan our pick-up and delivery routes to maximise time and
costsavings.
Motivating our workforce: Our Certified International Specialist (CIS) training pro-
gramme ensures that our employees have the requisite knowledge of the international
express business at their disposal. Training is both functional and cross-functional, and
it is carried out by our own employees, some of whom are executives. This adds to
mutual understanding whilst reinforcing a team atmosphere and loyalty within the
division. The modules under the Certified International Manager (CIM) umbrella are
for executives and strengthen the unified leadership culture within the division. Our
CIM Supervisory Excellence programme offers training tailored to lower-level manage-
ment. We want to sustainably motivate our employees around the world. Systematic
recognition of outstanding performance is one way of contributing to this. Our certifi-
cation as a Top Employer Global 2015 from the Top Employers Institute shows that we
are on the right path.
GLOBAL FORWARDING, FREIGHT division

In the Global Forwarding business unit, we intend to tackle business challenges and
revive performance with a comprehensive turnaround plan, which comprises twelve
initiatives with three focal points: re-empowering the countries, turning around results
and driving a business-centric IT renewal. We are also working to continuously improve
the divisions quality of service.
Re-empowering the countries: In the Global Forwarding business unit, we have intro-
duced various measures aimed at re-empowering the organisation. Structures are being
adjusted to grant countries more flexibility in their daily operations and to create better
accountability.

36
Turning around results: A number of initiatives are being implemented to improve

operating performance. The top priority is increasing our gross earnings. To do this, we
shall increase the profitability of contracts through optimised end-to-end shipment
management coupled with improved revenue management. In addition, we intend to
bring direct and indirect costs in line with our business performance whilst, at the same
time, implementing measures geared at bringing productivity back to or beyond the
level achieved in previous years.
Driving a business-centric IT renewal: IT in the Global Forwarding business unit will
be renewed in accordance with the IT Renewal Roadmap adopted in October2015,
which calls for a step-by-step process to replace systems and upgrade the IT set-up. This
will rely on a flexible IT architecture that leverages and enhances existing systems whilst
incorporating advanced off-the-shelf solutions that have been proven within the
freight forwarding sector. The goal is to develop business-centric IT that best supports
progress in our operating performance. Better capture, display and management of
processes are expected to increase transparency, whilst an electronic document man-
agement system will reduce paper-based workflows.
Improving quality of service: In the Global Forwarding business unit, we are working
continuously to improve our overall service quality and ensure a uniform service level
Glossary, page 208 within the network. In the Freight business unit, we extended our Premium LTL Service
Eurapid accordingly. It is now available at 100 terminals and over 90% of our network
shipments across Europe run through it. We intend to upgrade our entire European
road freight network to this standard.
SUPPLY CHAIN division

We want to remain the Supply Chain solutions company for the world. To achieve this
vision, we introduced Strategy 2020: Focus. Connect. Grow., a plan to accelerate future
growth and define the contract logistics industry. In the reporting year, we invested in
multiple projects under the umbrella of Strategy 2020, which were executed as planned
and are thus making important progress towards our goals.
Our Focus agenda is aimed at increasing our efficiency and quality through stand-
ardisation and reducing complexity. We intend to adopt best-in-class operating stand-
ards and roll them out worldwide. We also aim to establish a globally harmonised pro-
cess to facilitate innovative and customer-centric solutions. By applying First Choice
methodology and our best-practice solutions, we aim to improve our operational per-
formance.
The Connect pillar is about connecting our people and processes to achieve effi-
ciency gains on a global scale. A lean management structure and the use of shared
service centres will improve our cost structure and establish industry-wide best-in-class
functions. The Certified Supply Chain Specialist programme empowers and motivates
our employees worldwide to perform at their best.
Finally, the Grow pillar focuses upon shifting our portfolio to address those market
segments that offer the most potential for higher profitability and stronger growth. The
inclusion of more value-added services in our portfolio will help drive this shift. Like-
wise, a pivot towards global business models for key sectors, such as Life Sciences&Health-
care, will help accelerate future growth.

Group Management Report General Information Objectives and strategies Group management
37
Group management
FINANCIAL PERFORMANCE INDICATORS
Impact on management compensation

Deutsche Post DHL Group uses both financial and non-financial performance indicators
in its management of the Group. The monthly, quarterly and annual changes in these
indicators are compared with the prior-year data and the forecast data to assist in mak-
ing management decisions. The year-to-year changes in financial and non-financial
performance metrics portrayed here are also particularly relevant for calculating manage
ment remuneration. The Groups financial performance indicators are intended to pre-
serve a balance between profitability, an efficient use of resources and sufficient liquid-
ity. The performance of these indicators in the reporting year is described in the Report Page 44ff.
on economic position.
Profit from operating activities measures earnings power EBIT calculation

A.17
The profitability of the Groups operating divisions is measured as profit from operating Revenue
activities (EBIT). EBIT is calculated by deducting materials expense and staff costs, Other operating income
depreciation, amortisation and impairment losses, as well as other operating expenses Materials expense
from revenue and other operating income, and adding net income from investments Staff costs
D
epreciation, amortisation
accounted for using the equity method. Interest and other finance costs/other financial
andimpairment losses
income are deducted from or added to net financial income/net finance costs. To enable Other operating expenses
a comparison of divisions, the return on sales is calculated as the ratio of EBIT to revenue. Net income from investments
accountedfor using the equity method
Profit from operating activities (EBIT)
EBIT after asset charge promotes efficient use of resources
Since 2008, the Group has used EBIT after asset charge (EAC) as an additional key per-
formance indicator. EAC is calculated by subtracting the cost of capital component, or EAC calculation
A.18
asset charge, from EBIT. Making the asset charge a part of business decisions encourages EBIT
the efficient use of resources and ensures that the operating business is geared towards Asset charge
increasing value sustainably whilst generating increasing cash flow. = Net asset base
Weighted average cost of capital
The asset charge is calculated on the basis of the weighted average cost of capital, or (WACC)
WACC, which is defined as the weighted average net cost of interest-bearing liabilities EBIT after asset charge (EAC)
and equity, taking into account company-specific risk factors in accordance with the
Capital Asset Pricing Model.
A standard WACC of 8.5% is applied across the divisions. That figure also represents Net asset base calculation
A.19
the minimum target for projects and investments within the Group. The WACC is gen- Operating assets
erally reviewed once annually on the basis of the current situation on the financial Intangible assets
Property, plant and equipment
markets. However, the goal is not to match every short-term change, but to reflect long-
Goodwill
term trends. To ensure better comparability with previous figures, in 2015 the WACC was Trade receivables
(includedinnetworking capital)
maintained at a constant level compared with the previous years. Other non-current operating assets
The asset charge calculation is performed each month so that fluctuations in the net Operating liabilities
asset base can also be taken into account during the year. Table A.19 shows the compo- Operating provisions
(notincludingprovisions for
sition of the net asset base. pensionsand similar obligations)
Trade payables
(includedinnetworking capital)
Other non-current operating liabilities
Net asset base

38
Calculation of free cash flow Ensuring sufficient liquidity

A.20
EBIT Along with EBIT and EAC, cash flow is another key performance metric used by Group
epreciation, amortisation
D management. The cash flow performance metric is targeted at maintaining sufficient
andimpairment losses liquidity to cover all of the Groups financial obligations from debt repayment and divi
Net income/loss from disposal
ofnon-current assets
dends, in addition to operating payment commitments and investments. Cash flow is
Non-cash income and expense calculated using the cash flow statement. Operating cash flow (OCF) includes items that
Change in provisions are related directly to operating value creation. OCF is calculated by adjusting EBIT for
Change in other non-current assets changes in non-current assets (depreciation, amortisation and (reversals of) impairment
andliabilities
losses, net income/loss from disposals), other non-cash income and expense, dividends
Dividends received
Income taxes paid
received, taxes paid, changes in provisions and other non-current assets and liabilities.
Operating cash flow before Net working capital remains a driver for OCF. Effective management of net working
changesin working capital capital is an important way for the Group to improve cash flow in the short to medium
(networking capital)
Changes in net working capital
term. Free cash flow (FCF) is calculated on the basis of OCF by adding/subtracting the
Net cash from/used in operating cash flows from capital expenditure, acquisitions and divestitures as well as net interest
activities (operating cash flowOCF) paid. Free cash flow is regarded as an indicator of how much cash is available to the
Cash inflow/outflow arising from
change in property, plant and
company at the end of a reporting period for paying dividends or repaying debt. Given
equipment and intangible assets its greater relevance for the Groups management and stakeholders, we began using FCF
Cash inflow/outflow arising from instead of OCF as a financial performance indicator in 2015.
acquisitions /divestitures
Net interest paid
Free cash flow (FCF)
NON-FINANCIAL PERFORMANCE INDICATORS
Results of Employee Opinion Survey used as a management indicator

Our annual worldwide Employee Opinion Survey shows us how we are perceived as a
group from the perspective of our employees. We place particular significance on the
surveys indication of Employee Engagement and of how employees rate the leadership
behaviour of their superiors. The Active Leadership indicator is thus used in the calcu-
lation of bonuses for our executives. The results of the Employee Opinion Survey carried
Page 72 out in the reporting year can be found in the Employees section.
Greenhouse gas efficiency is an additional performance metric

Given that our GoGreen environmental protection programme is targeted at improving
greenhouse gas efficiency, we have, as previously announced, increased transparency in
this area. We measure greenhouse gas efficiency using a carbon efficiency index (CEX).
CEX is based upon the business unit-specific emission intensity figures, which are
indexed to the base year and indicate the ratio of the respective emissions to a matching
performance indicator. CEX was adopted as a management indicator of non-financial
performance this reporting year. The bases for calculation and the figures obtained for
Page 76f. the reporting year are provided in the section on Corporate responsibility.

Group Management Report General Information Group management Disclosures required by takeover law
39
Disclosures required by takeover law

Disclosures required under sections 289 (4) and 315 (4) of the Handelsgesetzbuch (HGB
German Commercial Code) and explanatory report
Composition of issued capital, voting rights and transfer of shares

As at 31December2015, the companys share capital totalled 1,212,753,687 and was
composed of the same number of no-par value registered shares. Each share carries the
same statutory rights and obligations and entitles the holder to one vote at the Annual
General Meeting (AGM). No individual shareholder or group of shareholders is entitled
to special rights, particularly rights granting powers of control.
The exercise of voting rights and the transfer of shares are based upon the general
legal requirements and the companys Articles of Association, which do not restrict
either of these activities. Article 19 of the Articles of Association sets out the require-
ments that must be met in order to attend the AGM as a shareholder and exercise a
voting right. Only persons entered in the share register shall be recognised as sharehold-
ers by the company. The Board of Management is not aware of any agreements between
shareholders that would limit voting rights or the transfer of shares.
Members of the Board of Management receive stock appreciation rights (SARs) each
year as a long-term remuneration component under the Long-Term Incentive Plan
provided that they invest in each tranche of the plan, preferably in Deutsche Post AG
shares but alternatively in cash. If a Board of Management member sells the shares in-
cluded in their personal investment for the tranche or disposes of their personal cash
investment before the scheduled waiting period of four years has expired, all SARs from
that tranche will be forfeited.
As part of the Share Matching Scheme, participating Group executives are obligated
to use a portion of their annual bonus to purchase shares in the company. According to
the underlying terms, shares acquired under the scheme are subject to a four-year
lock-up period.
Shareholdings exceeding 10% of voting rights

The Federal Republic of Germany holds an indirect stake in Deutsche Post AG via KfW
Bankengruppe (KfW), Frankfurt am Main, and is our largest shareholder, holding
around 21% of the share capital. According to the notifications we have received pursuant
to sections 21 et seq. of the Wertpapierhandelsgesetz (WpHG German Securities
Trading Act), KfW and the Federal Republic of Germany are the only shareholders that
own more than 10% of the share capital, either directly or indirectly.
Appointment and replacement of members of the Board of Management

The members of the Board of Management are appointed and replaced in accordance
with the relevant legal provisions (sections 84 and 85 of the Aktiengesetz (AktG Ger-
man Stock Corporation Act) and section 31 of the Mitbestimmungsgesetz (MitbestG
German Co-determination Act)). In accordance with section 84 of the AktG and section
31 of the MitbestG, appointments by the Supervisory Board shall be for a maximum
term of five years. Re-appointment or extension of the term of office is permitted for a
maximum of five years in each case. Article 6 of the Articles of Association stipulates
that the Board of Management must have at least two members. Beyond that, the num-
ber of board members is determined by the Supervisory Board, which may also appoint
a chairman and deputy chairman of the Board of Management.

40
Amendments to the Articles of Association

In accordance with section 119 (1), number 5 and section 179 (1), sentence 1 of the AktG,
amendments to the Articles of Association are adopted by resolution of the AGM. In
accordance with article 21 (2) of the Articles of Association in conjunction with sections
179 (2) and 133 (1) of the AktG, such amendments generally require a simple majority
of the votes cast and a simple majority of the share capital represented on the date of the
resolution. In such instances where the law requires a greater majority for amendments
to the Articles of Association, that majority is decisive. Under article 14 (7) of the
Articles of Association, the Supervisory Board has the authority to approve amendments
to the Articles of Association in cases where the amendments affect only the wording.
Board of Management authorisation, particularly regarding issue and buy-back of shares

The Board of Management is authorised, subject to the consent of the Supervisory Board,
to issue up to 236,267,019 new, no-par value registered shares on or before 28May2018
in exchange for cash and/or non-cash contributions and thereby increase the companys
share capital by up to 236,267,019.00 (Authorised Capital 2013, article 5(2) of the
Articles of Association). When new shares are issued on the basis of Authorised Capital
2013, the shareholders are entitled in principle to subscription rights. Such rights may
only be disapplied subject to the requirements specified in article 5(2) of the Articles
of Association and subject to the consent of the Supervisory Board. Details may be
found in article 5(2) of the Articles of Association of the company.
Authorised Capital 2013 is a financing and acquisition instrument in accordance
with international standards that allows the company to increase equity quickly, flexibly
and cost-effectively. The authorised capital is equivalent to less than 20% of the share
capital. Authorised Capital 2013, which originally amounted to 240million, was used
in the amount of 2,164,388.00 in financial year 2014 and in the amount of 1,568,593.00
in financial year 2015.
An AGM resolution was passed on 25May2011 authorising the Board of Manage-
ment, subject to the consent of the Supervisory Board, to issue bonds with warrants,
convertible bonds and/or income bonds as well as profit participation certificates, or a
combination thereof, in an aggregate principal amount of up to 1billion, on one or
more occasions on or before 24May2016, thereby granting options or conversion rights
for up to 75million shares having a total share in the share capital not to exceed 75mil-
lion. The aforementioned authorisation was utilised in the full amount in Decem-
ber2012 by issuing a convertible bond in the aggregate principal amount of 1billion.
In financial year 2015, 4,832 shares were issued for the first time to holders of bonds
after exercise of their conversion options. As at 31December2015, the share capital had
been increased on a contingent basis by up to 74,995,168.00 for the purpose of grant-
ing shares to the holders or creditors of the options, conversion rights or conversion
obligations arising from the resolution of 25May2011 after exercise of their rights in
order to settle the entitlements related to the options or rights or to fulfil the conversion
obligations (Contingent Capital 2011, article 5(3) of the Articles of Association).
ment, subject to the consent of the Supervisory Board, to issue bonds with warrants,
convertible bonds and/or income bonds as well as profit participation certificates, or a
combination thereof (hereinafter referred to collectively as bonds), in an aggregate
principal amount of up to 1.5billion, on one or more occasions on or before 28May2018,
thereby granting options or conversion rights for up to 75million shares with a total
share in the share capital not to exceed 75million. The bond conditions may also stipu

Group Management Report General Information Disclosures required by takeover law
41
late an obligation to exercise options or conversion rights or may entitle the company
to grant the bond holders or creditors shares in the company in lieu of payment of all
or part of the sum of money owed, either at the time of maturity of the bonds or at
another time. The share capital is increased on a contingent basis by up to 75million
in order to grant shares to the holders or creditors of the bonds after exercise of their
options or conversion rights or to fulfil their option or conversion obligations, or to
grant them shares in lieu of monetary payment in accordance with the bond conditions
(Contingent Capital 2013, article 5(4) of the Articles of Association). When issuing
bonds, subscription rights may only be disapplied subject to the terms of the aforemen-
tioned resolution and subject to the consent of the Supervisory Board. Further details
may be found in the motion adopted by the AGM under agenda item 7 of the AGM of
29May2013.
Authorisation to issue bonds is standard practice amongst publicly listed companies.
This allows the company to finance its activities flexibly and promptly and gives it the
financial leeway necessary to take advantage of favourable market conditions at short
notice, for example by offering bonds with options or conversion rights, or conversion
obligations on shares in the company as a consideration within the context of company
mergers, and when acquiring companies or shareholdings in companies. To date, the
Board of Management has not exercised this authority.
ment to issue up to 40million performance share units with pre-emptive subscription
rights to a total of up to 40million shares with a total share in the share capital not to
exceed 40million, subject to the provisions of the authorisation resolution, on or be-
fore 26May2019 to members of the management of entities in which the company is
the majority shareholder and to executives of the company and the entities in which it
is a majority shareholder. The performance share units may also be issued by entities in
which the company is the majority shareholder with the consent of the Board of Man-
agement. The issue of shares arising from the subscription rights associated with the
performance share units depends upon certain performance targets being met after
expiry of a four-year waiting period, with it being possible to issue up to four shares for
every six subscription rights granted, if and insofar as performance targets for the share
price, which have been specified in detail, are met, and up to two shares if and insofar
as certain outperformance targets based upon the percentage change of the STOXX
Europe 600 Index are met. The share capital is increased on a contingent basis by up to
40million in order to grant shares in the company to the executives entitled to sub-
scription rights, in accordance with the provisions of the authorisation resolution (Con-
tingent Capital 2014, article 5(5) of the Articles of Association). Further details may be
found in the motion adopted by the AGM under agenda item 8 of the AGM of 27May2014.
As at 31December2015, 8,483,124 performance share units, which were issued in
financial years 2014 and 2015, were outstanding.
Finally, the AGM of 27May2014 authorised the company to buy back shares on or
before 26May2019 up to an amount not to exceed 10% of the share capital existing as
at the date of the resolution. Such authorisation is subject to the proviso that at no time
should the shares thus acquired, together with the shares already held by the company,
account for more than 10% of the share capital. The shares may be purchased through
the stock market, a public offer, a public call for offers of sale from the companys share-
holders or by some other means in accordance with section 53a of the AktG. The shares
purchased may be used for any legally permissible purpose. In addition to a sale via the
stock exchange or by public offer to all shareholders, it is permitted in particular to use

42
the shares with pre-emptive shareholder subscription rights disapplied in accordance

with the provisions of the authorisation resolution or to call in the shares without an
additional resolution of the Annual General Meeting. Further details may be found in
the motion adopted by the AGM under agenda item 6 of the AGM of 27May2014.
In addition to this, the AGM of 27May2014 also authorised the Board of Manage-
ment, within the scope specified in agenda item 6, to acquire treasury shares, including
through the use of derivatives. This is to occur by servicing options that, upon their
exercise, require the company to acquire treasury shares (put options), by exercising
options that, upon their exercise, grant the company the right to acquire treasury shares
(call options), as a result of purchase agreements where there are more than two trading
days between conclusion of the purchase agreement for Deutsche Post shares and ser-
vicing by way of the delivery of Deutsche Post shares (forward purchases) or by servic-
ing or exercising a combination of put options, call options and/or forward purchases.
All share acquisitions using the aforementioned derivatives are limited to a maximum
of 5% of the share capital existing on the date of the resolution. The term of the individ-
ual derivatives may not exceed 18 months, must expire by no later than 26May2019
and be selected such that treasury shares may not be acquired by exercising the deriva-
tives after 26May2019. Further details may be found in the motion adopted by the AGM
under agenda item 7 of the AGM of 27May2014.
It is standard business practice amongst publicly listed companies in Germany for
the AGM to authorise the company to buy back shares. The authorisation to repurchase
shares using derivatives is merely intended to supplement share buy-back as a tool and
give the company the opportunity to structure share repurchase in an advantageous
manner.
Any public offer to acquire shares in the company is governed solely by law and the
Articles of Association, including the provisions of the Wertpapiererwerbs- und ber-
nahmegesetz (WpG German Securities Acquisition and Takeover Act). The AGM has
not authorised the Board of Management to undertake actions within its sphere of
competence to block possible takeover bids.
Significant agreements that are conditional upon a change in control following

atakeoverbid and agreements with members of the Board of Management or employees
providing for compensation in the event of a change in control
Deutsche Post AG has taken out a syndicated credit facility with a volume of 2billion
from 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 credit line as well as its share of outstanding loans and to request
repayment. The terms and conditions of the bonds issued under the Debt Issuance
Programme established in March2012 and of the convertible bond issued in Decem-
ber2012 also contain change in control clauses. In the event of a change in control
within the meaning of the terms and conditions, creditors are, under certain conditions,
granted the right to demand early redemption of the respective bonds. Furthermore, a
framework agreement exists concerning the supply of fuel, based upon which fuel in
the value of a high double-digit million amount was obtained in the reporting year and
which, in the event of a change in control, grants the supplier the right to bring the
business relationship to a close without notice.

Group Management Report General Information Disclosures required by takeover law Remuneration
of the Board of Management andtheSupervisory Board Research and development 43
In the event of a change in control, any member of the Board of Management is

entitled to resign their office for good cause within a period of six months following the
change in control after giving three months notice at the end of a given month, and to
terminate their Board of Management contract (right to early termination). If the right
to early termination is exercised or a Board of Management contract is terminated by
mutual consent within nine months of the change in control, the Board of Management
member is entitled to payment to compensate the remaining term of their Board of
Management contract. Such payment is limited to the cap pursuant to the recommen-
dation of No.4.2.3 of the German Corporate Governance Code, subject to the specifi-
cations outlined in the remuneration report. With respect to options from the Long-
Term Incentive Plan, the Board of Management member will be treated as if the waiting
period for all options had already expired upon cessation of the Board of Management
contract. The options eligible for exercise may then be exercised within six months of
cessation of the contract. With regard to the Share Matching Scheme for executives, the
holding period for the shares will become invalid with immediate effect in the event of
a change in control of the company. The participating executives will receive the total
number of matching shares corresponding to their investment in due course. In such
case, the employer will be responsible for any tax disadvantages resulting from reduction
of the holding period. Exempt from this are taxes normally incurred after the holding
period.
Remuneration of the Board of Management

andtheSupervisory Board
The basic features of the remuneration system for the Board of Management and the
Supervisory Board are described in the Corporate Governance Report under Remuneration Corporate Governance, page 115ff.
report. The latter also forms part of the Group Management Report.
Research and development

As a service provider, the Group does not engage in research and development activities
in the narrower sense and therefore has no significant expenses to report in this con-
nection.

44
REPORT ON ECONOMIC POSITION

Overall Board of Management assessment
oftheeconomicposition
Earnings within expectations in a year of transition
Deutsche Post DHL Group increased revenue in financial year 2015 by 2.6billion, due
to positive currency effects. The German parcel business in the Post - eCommerce-
Parcel (PeP) division and the international business in the Express division continued
to generate dynamic growth. Earnings were impacted adversely by losses in the Global
Forwarding, Freight division resulting from the re-orientation of its transformation
process and by restructuring costs in the Supply Chain division. Earnings in the PeP
division also suffered from the effects of the strike in Germany. By contrast, free cash
flow performed well, posting a significant increase. From the perspective of the Board
of Management, this testifies to the sound financial position of the Group.
Forecast/actual comparison
Forecast/actual comparison
A.21
Targets 2015 Results 2015 Targets 2016

EBIT EBIT EBIT
Group: at least 2.4billion .1
Group: 2.41billion. Group: 3.4billion to 3.7billion.
PeP division: at least 1.1billion1. PeP division: 1.10billion. PeP division: more than 1.3billion.
DHL divisions: at least 1.65billion1. DHL divisions: 1.66billion. DHL divisions: 2.45billion to 2.75billion.
Corporate Center/Other: Corporate Center/Other: Corporate Center/Other:
around0.35billion. 0.35billion. 0.35billion.
EAC EAC EAC
Will develop in line with EBIT1. Developed in line with EBIT and decreased. Will develop in line with EBIT and increase
substantially.
Cash flow Cash flow Cash flow
Free cash flow to cover at least dividend At 1,724million free cash flow significantly Free cash flow to more than cover
payment of 1,030million in May2015. exceeded dividend payment. dividend payment in May2016.
Capital expenditure (capex) Capital expenditure (capex) Capital expenditure (capex)
Increase investments to around Invested: 2.02billion. Increase investments to around
2.0billion. 2.2billion.
Dividend distribution Dividend distribution Dividend distribution
Pay out 40% to 60% of the net profit Proposal: pay out 46.0% of the adjusted2 Pay out 40% to 60% of the net profit
asdividend. net profit asdividend. asdividend.
Employee Opinion Survey Employee Opinion Survey Employee Opinion Survey3
Increase approval rating of keyperform Key performance indicator ActiveLeader- Increase approval rating of keyperform
ance indicator Active Leadership to 72%. ship achieves an approval rating of 72%. ance indicator Active Leadership by a
percentage point.
Greenhouse gas efficiency Greenhouse gas efficiency Greenhouse gas efficiency
Introduce carbon efficiency index (CEX) in CEX improved to 25 index points (previous CEX will increase by one index point.
thecompany as a non-financial indicator year: 24).
relevant for internal management.
1
Forecast decreased over the course of the year. 2 NFE and strike-related effects, disposals of equity investments and other one-off effects, some of which are based upon assumptions
bymanagement. 3 Questionnaire changed compared with the previous year, different initial value page 72.

Group Management Report Report on Economic Position Overall Board of Management assessment
oftheeconomicposition Forecast/actual comparison Economic parameters 45
Economic parameters
Global economy records weak growth
Growth in the global economy saw a slowdown in 2015. Whereas the economic recovery
picked up slightly in the industrial countries with average gross domestic product (GDP)
growth of 1.9%, growth in the emerging markets declined to 4.0%, well below the pre-
vious years level. One of the main contributors to the downturn was the severe reces-
sions in a number of major threshold economies resulting from falling commodities
prices and international conflicts. After adjustment for purchasing power, global econ
omic output grew by 3.1% (previous year: 3.4%). Growth in global trade was also rel
atively moderate, whereby the estimates vary (IMF: 2.6%; OECD: 2.0%).
Global economy: growth indicators in 2015

A.22
% Gross domestic Domestic
product (GDP) Exports demand
China 6.9 2.8 n.a.
Japan 0.5 2.7 0.0
USA 2.4 1.1 3.0
Euro zone 1.5 5.0 1.5
Germany 1.7 5.4 1.6
Data estimated in some cases, as at 16February2016.

Source: Postbank, national statistics.
Asia again provided the strongest economic momentum. However, GDP growth dropped
to 6.6%, down from the prior-year figure of 6.8%. The Chinese economy in particular
continued to weaken, with exports falling below the prior-year level and industrial pro-
duction slowing notably. GDP growth declined to 6.9% (previous year: 7.3%), the lowest
figure since the early 1990s. The Japanese economy has been slow to recover from the
economic setback experienced in the previous year. Private consumption was especially
weak, having registered a significant decline for the second year in a row. Exports also
suffered from the strong upwards valuation of the yen. GDP increased by just 0.5%
(previous year: 0.0%).
The economic upturn continued in the United States. Private consumption regis-
tered the strongest growth in ten years, thanks in large part to the significant drop in
energy prices. Investments in machinery and equipment as well as construction spend-
ing saw another increase. However, growth was significantly impeded by foreign trade.
GDP rose by 2.4% overall (previous year: 2.4%), and the unemployment rate dropped
substantially.
The euro zone economy strengthened during the reporting year. Increases were seen
in private consumption, government spending and gross fixed capital formation. Foreign
trade also picked up, with the growth distributed almost equally between imports and
exports. All in all, this led to GDP growth of 1.5% (previous year: 0.9%). Although the
individual countries reported great variations in performance, all except Greece reported
positive growth rates. Unemployment decreased as a result. At an average of 10.9%, how-
ever, the unemployment rate remained at a very high level.
The German economy grew steadily in 2015. Exports benefitted from the weak euro,
and imports from the sharp rise in domestic demand. Private consumption thus proved
to be the main growth driver. Government spending also rose. By contrast, growth of
gross fixed capital formation declined. GDP grew by 1.7% overall (previous year: 1.6%).

46
The German labour market performed positively against the backdrop of the solid up-
swing, with the average annual number of employed workers increasing to 43.0million
(previous year: 42.7million).
Massive drop in oil prices

At the end of 2015, the price for one barrel of Brent Crude was at US$36.43 (previous
year: US$54.76). The average price of oil for the year declined by around 47% on the
previous year to just over US$52 per barrel. Over the course of 2015, oil prices fluctuated
between US$35 and US$67. The price began to drop significantly at the middle of the
year due to the sharp increase in global supply, whilst demand was not able to keep up
with the rise in quantities as a result of the weak global economy. The reporting year saw
another substantial increase in oil production, especially in the United States. Moreover,
OPEC was unable to agree upon reduced production quotas.
Brent Crude spot price and euro/US dollar exchange rate in 2015
A.23
70 1.40
65 1.35
60 1.30
55 1.25
50 1.20
45 1.15
40 1.10
35 1.05
30 1.00
25 0.95
20 0.90
January March June SeptemberDecember
Brent Crude spot price per barrel in US dollars Euro/US dollar exchange rate
Central banks expansive monetary policies weaken the euro

The European Central Bank (ECB) massively expanded its bond buying programme for
covered bonds and asset-backed bonds in 2015. The reason was the low rate of inflation,
which even dipped into the negative at the start of the year. In March2015, the ECB
began buying up government bonds in a total monthly volume of around 60billion.
In December, it extended the minimum term of the bond-buying programme to
March2017 and also lowered its deposit rate by 0.10 percentage points to 0.30%. This
means that banks are obliged to pay penalty interest in that amount on their deposits
with the ECB. By contrast, the US Federal Reserve increased its key interest rate by 0.25
percentage points to 0.25% to 0.50%.
The differing monetary policy strategies of the two central banks had a substantial
impact on the US$ exchange rate. The euro came under significant downwards pres-
sure, particularly in the early months of 2015 and in the autumn. At the end of 2015, the
euro listed at just under US$1.09. This represents a drop of 10.2% during the course of
the year. Measured against the pound sterling, the euro posted a loss of 5.0%.

Group Management Report Report on Economic Position Economic parameters
47
Moderate risk premiums for corporate bonds

Monetary policy also had a significant impact on the euro zone bond markets in 2015.
The ECBs expansion of its bond-buying programme resulted in a sharp drop in capital
market interest rates. Yields on ten-year German government bonds reached a historic
low in April and were at 0.63% at the end of the year (previous year: 0.54%). By the end
of the 2015, yields on ten-year US government bonds had risen by 0.10 percentage points
year-on-year to 2.27%. Although the risk premiums for corporate bonds with good
ratings increased notably, they remained at a moderate level on a long-term comparison.
The bond markets suffered the most from increasing concerns about the slowdown of
growth in China.
Prices on the German stock market rose markedly until April, driven by the ECBs
monetary policies and falling capital market interest rates. Much of the gains were sub-
sequently given up and August brought a severe price drop due to massive turbulence
on the Chinese equities markets. As a result of the solid economic performance in
Germany, however, the market was able to recover from the losses. Information regard-
ing the performance of the key indices and our shares in the reporting year is available
in the section on Deutsche Post shares. Page 70f.
Regional variations in growth of international trade

The global trade movements of relevance to us air and ocean freight sent in containers,
excluding liquids and bulk goods grew by a total of 1.1% in the reporting year. Growth
varied in the different regions. The strongest growth was in imports to North America
as well as in exports from Europe and the MEA region. Growth in Asian trade slowed.
Exports from North America declined by 5.3% due to the strong US dollar.
Trade volumes: compound annual growth rate, 2014 to 2015

A.24
% MEA
Imports (Middle East
Export Asia Pacific Europe Latin America and Africa) North America
Asia Pacific 1.2 3.5 4.7 1.1 6.9
Europe 2.0 10.4 3.6 4.4 8.9
Latin America 2.6 0.5 1.0 4.5 4.9
MEA (Middle East and Africa) 3.0 3.1 5.7 4.5 10.7
North America 6.3 4.5 2.0 3.8 1.4
Source: Seabury Cargo Advisory, as at 21January2016; based upon all relevant ocean and air freight trading volumes in tonnes,
excludingliquids and bulk goods. Excluding shipments within the European Union free trade zone.

48
Major trade flows: 2015 volumes1

A.25
Million tonnes
1 31 0 74 476
North America Latin America Europe MEA Asia Pacific
Intra-regional Less than 25 25 to 75 More than 75
North America
Exports 131
9 88 16 18
Imports 169
7 106 31 25
Latin America
Exports 78
11 24 18 25
Imports 68
2 30 18 18
Europe
Exports 189
54 86 31 18
Imports 149
20 95 16 18
MEA (Middle East/Africa)

Exports 78
49 20 7 2
Imports 175
101 54 9 11
Asia Pacific
Exports 332
101 95 106 30
Imports 247
49 86 88 24
MEA Asia Pacific Europe North America Latin America

1
Excluding trade between European Union countries.
Source: Seabury Cargo Advisory, as at 22January2016.

Group Management Report Report on Economic Position Economic parameters Significant events
Results of operations 49
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
information regarding this issue and legal risks is contained in the Notes to the consoli- Note 51
dated financial statements.
Significant events
Negative one-off effects from re-orientation of Global Forwarding transformation
In the third quarter, the management of Global Forwarding, Freight focused intensively
upon re-orientating the transformation process and decided to discontinue the New
Forwarding Environment (NFE) system. Since most of the IT investments cannot
beused for other purposes, the Group recognised negative one-off effects totalling
336million in the result for financial year 2015. This comprises 310million in impair-
ment losses recognised on assets capitalised in relation to NFE, as well as subsequent
costs of 26million related to the further course of transformation.
Almost all of the potential earnings exposure of 200million for full-year 2015
projected in the interim financial statements for the third quarter of 2015, 81million
of which had already been booked in the third quarter, was recognised at the end of the
financial year.
Results of operations
Selected indicators for results of operations
A.26
2014 2015
Revenue m 56,630 59,230
Profit from operating activities (EBIT) m 2,965 2,411
Return on sales1 % 5.2 4.1
EBIT after asset charge (EAC) m 1,551 877
Consolidated net profit for the period2 m 2,071 1,540
Earnings per share3 1.71 1.27
Dividend per share 0.85 0.854
1
EBIT/revenue.
2
3
Basic earnings per share.
4
Proposal.
Changes in portfolio
In the second quarter of 2015, we sold shares in two property development companies
in the United Kingdom, Kings Cross Central Property Trust and Kings Cross Central
General Partner Ltd., which were held by the Supply Chain division.
In May, we sold 4.16% of our shares in Sinotrans Ltd., China, which were held by
the Global Forwarding, Freight division.
In December2015, we sold the food procurement business of DHL Supply Chain Ltd.
in the UK.

50
Consolidated revenue Increase in consolidated revenue to 59.2billion

A.27
m At 59,230million, consolidated revenue was up by 2,600million in financial year
2015 2015; this was exclusively due to positive currency effects, which increased this item by
59,230
17,493 41,737 2,820million. In contrast, lower fuel surcharges because of the fall in the oil price had
2014 a significant negative impact on revenue. In addition, changes to the way in which rev-
56,630
17,367 39,263 enue and expenses are reported as a result of revised terms to the UKs National Health
Service (NHS) contract led to a 465million decline in revenue in the fourth quarter.
Germany Abroad
The proportion of revenue generated abroad increased slightly year-on-year to 70.5%
(previous year:69.3%).
Revenue in the fourth quarter of 2015 decreased by 26million to 15,339million;
adjusted for positive currency effects of 481million, this item would have decreased
by 507million. Revenue in the period was impacted in particular by lower fuel sur-
charges.
Other operating income rose from 2,016million in the previous year to 2,394mil-
lion. This includes gains of 173million on the disposal of shares in Kings Cross and
Sinotrans. In addition, the weak euro led to higher income from currency translation.
The year under review also includes a positive one-off effect of 82million resulting
mainly from the reversal of impairment losses on assets relating to the Cincinnati hub.
In the previous year, other operating income had increased due to a change in the assess
ment of settlement payment obligations assumed in the context of restructuring the US
express business, and other factors.
Currency effects increase materials expense

Currency effects of 2,009million were the main factor driving the increase in materials
expense to 33,170million. Excluding this effect, this item declined by 881million, due
primarily to lower fuel costs. The revised terms of the NHS contract reduced materials
expense by 458million.
Staff costs rose by 1,451million to 19,640million, also mainly because of exchange
rate movements. In addition, there was a rise in the number of employees in the Group.
Depreciation, amortisation and impairment losses increased by 20.6% from
1,381million in the previous year to 1,665million, due mainly to impairment losses
of 310million in relation to NFE. The prior-year figure had included impairment losses
on aircraft and aircraft parts of 106million.
At 4,740million, other operating expenses were also significantly higher than in
the previous year (4,074million). The weak euro led to an increase in currency trans-
lation expenses; in addition, restructuring expenses were incurred in the Supply Chain
division.

Group Management Report Report on Economic Position Results of operations
51
Changes in revenue, other operating income and operating expenses

A.28
m +/%
Revenue 59,230 4.6 Growth trends in the German parcel and international
express businesses remain intact.
Revised terms of the NHS contract leads to 465million
reduction.
Increase of 2,820million due to currency effects.
Other operating income 2,394 18.8 Includes income from the sale of equity investments.
Significant rise in income from currency translation.
Materials expense 33,170 3.5 Rise due mainly to exchange rate movements.
Organic decline due to lower oil price.
Revised terms of the NHS contract leads to 458million
reduction.
Staff costs 19,640 8.0 Most of the rise due to exchange rate movements.
Increase in the number of employees.
Depreciation, amortisation 1,665 20.6 Includes impairment losses of 310million in relation
and impairment losses toNFE.
Prior-year figure included impairment losses on aircraft
and aircraft parts of 106million.
Other operating expenses 4,740 16.3 Sharp rise in currency translation expenses.
Consolidated EBIT at 2.4billion Consolidated EBIT

A.29
Profit from operating activities (EBIT) declined by 18.7% to 2,411million (previous m
year: 2,965million). In the fourth quarter, EBIT increased from 905million to 2015
2,411
957million. Net finance costs improved from 388million to 354million, mainly
2014
because changed interest rates led to a decline in finance costs. At 2,057million, profit 2,965
before income taxes for the year under review was down significantly compared with
the previous year (2,577million). With a slight increase in the tax rate, income taxes
decreased by 62million to 338million.
Net profit and earnings per share down

Consolidated net profit for the period declined from 2,177million to 1,719million.
Of this amount, 1,540million is attributable to shareholders of Deutsche Post AG and
179million to non-controlling interest holders. Earnings per share also decreased, with
basic earnings per share down from 1.71 to 1.27 and diluted earnings per share
declining from 1.64 to 1.22.
Dividend of 0.85 per share proposed Total dividend and dividend

perno-parvalue share
Our finance strategy calls for a payout of 40% to 60% of net profits as dividends as a A.30
m
general rule. At the Annual General Meeting on 18May2016, the Board of Management
1,030 1,031
and the Supervisory Board will therefore propose a dividend of 0.85 per share for 968
financial year 2015 (previous year: 0.85) to shareholders. The distribution ratio based 786
846 846
725
upon the consolidated net profit for the period attributable to Deutsche Post AG share 0.80
0.85 0.85
0.70 0.70
holders amounts to 66.9%. Adjusted for one-off effects, as decribed in table A.21, the 0.60
0.65
distribution ratio amounts to 46.0%. The net dividend yield based upon the year-end
closing price ofour shares is 3.3%. The dividend will be distributed on 19May2016 and
is tax-free forshareholders resident in Germany. It does not entitle recipients to a tax
09 10 11 12 13 14 151
refund or a taxcredit.
Dividend per no-par value share ()
1
Proposal.

52
EBIT after asset charge decreased

EBIT after asset charge (EAC) declined from 1,551million to 877million in 2015, pri-
marily as a result of the decrease in EBIT. Furthermore, the asset charge rose by 8.5%,
which was attributable predominantly to increased capital expenditure in the Express
division in particular, as well as to currency effects.
EBIT after asset charge (EAC)

A.31
m
2014 2015 +/%
EBIT 2,965 2,411 18.7
Asset charge 1,414 1,534 8.5
EAC 1,551 877 43.5
The net asset base increased by 294million to 16,809million in the reporting year.
Investments in IT systems, the purchase of freight aircraft and replacement and expan-
sion investments in warehouses, sorting systems and the vehicle fleet increased year-
on-year, as did intangible assets. This was offset by negative one-off effects due to the
re-orientation of the transformation process in the Global Forwarding, Freight division
and changes in net working capital.
Operating provisions were largely stable compared with the previous year. The rise
in other non-current assets and liabilities increased the net asset base slightly.
Net asset base (non-consolidated)

A.32
m
31 Dec.2014 31 Dec.2015 +/%
Intangible assets and property, plant and equipment 19,540 20,296 3.9
Net working capital 512 1,024 100.0
Operating provisions (excluding provisions for pensions
andsimilarobligations) 2,505 2,471 1.4
Other non-current assets and liabilities 8 8 >100
Net asset base 16,515 16,809 1.8

Group Management Report Report on Economic Position Results of operations Financial position
53
Financial position
Selected cash flow indicators
A.33
m
2014 2015
Cash and cash equivalents as at 31December 2,978 3,608
Change in cash and cash equivalents 395 615
Net cash from operating activities 3,040 3,444
Net cash used in investing activities 1,087 1,462
Net cash used in financing activities 2,348 1,367
Financial management is a centralised function in the Group

The Groups financial management activities include managing cash and liquidity; hedg-
ing interest rate, currency and commodity price risk; arranging Group financing; issuing
guarantees and letters of comfort and liaising with rating agencies. We steer processes
centrally, which allows us to work efficiently and successfully manage risk.
Responsibility for these activities rests with Corporate Finance at Group head
quarters in Bonn (Germany), which is supported by three Regional Treasury Centres
in Bonn, Weston (USA) and Singapore. These act as interfaces between headquarters
and the operating companies, advise the companies on all financial management issues
and ensure compliance with Group-wide requirements.
Corporate Finances main task is to minimise financial risk and the cost of capital,
whilst preserving the Groups continuous financial stability and flexibility. In order to
maintain its unrestricted access to the capital markets, the Group continues to aim for
a credit rating appropriate to the sector. We therefore monitor the ratio of our operating
cash flow to our adjusted debt particularly closely. Adjusted debt refers to the Groups
net debt, allowing for unfunded pension obligations and liabilities under operating
leases.
Maintaining financial flexibility and low cost of capital

The Groups finance strategy builds upon the principles and aims of financial manage-
ment. In addition to the interests of shareholders, the strategy also takes creditor re-
quirements 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.
A key component of this strategy is a target rating of BBB+, which is managed via
a dynamic performance metric known as funds from operations to debt (FFO to debt).
Our strategy additionally includes a sustained dividend policy and clear priorities re-
garding the use of excess liquidity, which is to be used to gradually increase plan assets
of our German pension plans as well as paying special dividends or buying back shares.

54
Finance strategy
A.34
Credit rating Investors

Maintain BBB+ and Baa1 ratings, respectively. Reliable and consistent
FFO to debt used as dynamic performance metric. information from the
company.
Dividend policy Predictability of expected
returns.
Pay out 40% to 60% of net profit.
Consider cash flows and continuity. Group
Excess liquidity Preserve financial
andstrategic flexibility.
Increase plan assets of German pension plans. Assure low cost
Pay out special dividends or execute share buy-back ofcapital (WACC)1.
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.
1
Weighted average cost of capital Group management, page 37.
Funds from operations (FFO) represents operating cash flow before changes in working
capital plus interest received less interest paid and adjusted for operating leases, pensions
and non-recurring income or expenses, as shown in the following calculation. In add
ition to financial liabilities and surplus cash and near-cash investments, the figure for
debt also includes operating lease liabilities as well as unfunded pension liabilities.
FFO to debt
A.35
m
2014 2015
Operating cash flow before changes in working capital 3,061 2,656
Interest received 45 47
Interest paid 188 76
Adjustment for operating leases 1,283 1,413
Adjustment for pensions 122 239
Non-recurring income/expenses 74 65
Funds from operations (FFO) 4,397 4,344
Reported financial liabilities 5,169 5,178

Financial liabilities at fair value through profit or loss 145 125
Adjustment for operating leases 5,953 6,394
Adjustment for pensions 7,174 6,103
Surplus cash and near-cash investments1 2,256 2,641
Debt 15,895 14,909
FFO to debt (%) 27.7 29.1
1
Reported cash and cash equivalents and investment funds callable at sight, less cash needed for operations.

Group Management Report Report on Economic Position Financial position
55
The FFO to debt dynamic performance metric increased in the reporting year com-
pared with the prior year, due to a decrease in debt.
Funds from operations declined slightly by 53million to a total of 4,344million.
There was a sharp decrease in the amount of interest paid, largely because we unwound
interest rate swaps for bonds and therefore generated interest income. Operating
restructuring payments in the amount of 65million were recognised as non-recurring
income/expenses in the reporting year.
Debt decreased by 986million year-on-year to 14,909million in financial year
2015. The main reason for the decline was lower pension obligations due to an increase
in discount rates. Further information on pensions is contained in the Notes. Note 42
Cash and liquidity managed centrally

The cash and liquidity of our globally operating subsidiaries is managed centrally by
Corporate Treasury. More than 80% of the Groups external revenue is consolidated in
cash pools and used to balance internal liquidity needs. In countries where this practice
is ruled out for legal reasons, internal and external borrowing and investment are man-
aged centrally by Corporate Treasury. In this context, we observe a balanced banking
policy in order to remain independent of individual banks. Our subsidiaries intra-group
revenue is also pooled and managed by our in-house bank in order to avoid external
bank charges and margins through inter-company clearing. Payment transactions are
executed in accordance with uniform guidelines using standardised processes and IT
systems. Many Group companies pool their external payment transactions in the
Groups Payment Factory, which executes payments in the name of the respective com-
panies via Deutsche Post AGs central bank accounts.
Limiting market risk

The Group uses both primary and derivative financial instruments to limit market risk.
Interest rate risk is managed exclusively via swaps. Currency risk is hedged additionally
using forward transactions, cross-currency swaps and options. We pass on most of the
risk arising from commodity fluctuations to our customers and, to some extent, use
commodity swaps to manage the remaining risk. The parameters, responsibilities and
controls governing the use of derivatives are laid down in internal guidelines.
Flexible and stable financing

The Group covers its long-term financing requirements by means of equity and debt.
This ensures our financial stability and also provides adequate flexibility. Our most im-
portant source of funds is net cash from operating activities.
We also have a syndicated credit facility in a total volume of 2billion that guaran-
tees us favourable market conditions and acts as a secure, long-term liquidity reserve.
The facility was extended by one year in 2015 and now runs until 2020. The syndicated
credit facility does not contain any covenants concerning the Groups financial indica-
tors. In view of our solid liquidity, it was not drawn down during the year under review.

56
As part of our banking policy, we spread our business volume widely and maintain
long-term relationships with the financial institutions we entrust with our business. In
addition to credit lines, we meet our borrowing requirements through other independ-
ent sources of financing, such as bonds and operating leases. Most debt is taken out
centrally in order to leverage economies of scale and specialisation benefits and hence
minimise borrowing costs.
No bonds were issued or redeemed in the reporting year. Further information on
Note 44 the existing bonds is contained in the Notes.
Group issues sureties, letters of comfort and guarantees

Deutsche Post AG provides security for the loan agreements, leases and supplier con-
tracts entered into by Group companies, associates or joint ventures by issuing letters
of comfort, sureties or guarantees as needed. This practice allows better conditions to
be negotiated locally. The sureties are provided and monitored centrally.
No change in the Groups credit rating

The ratings of A3 issued by Moodys Investors Service (Moodys) and BBB+ issued
by Fitch Ratings (Fitch) remain in effect with regard to our credit quality. The stable
outlook from both rating agencies is also still applicable. We remain well positioned in
the transport and logistics sector with these ratings. The following table shows the rat-
ings as at the reporting date and the underlying factors. The complete and current
dpdhl.com/en/investors analyses by the rating agencies and the rating categories can be found on our website.
Agency ratings
A.36
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
Stable contribution of core mail products. largest logistics company.
Growth in internet-led domestic parcel Large and robust mail business in Germany.
volumes. Success in restoring profitability levels atthe
Strong global footprint in the Express, logistics activities and its mail business.
Global Forwarding, Freight and Supply Chain Moderate financial metrics, conservative
businesses. financial policy and sound liquidity profile.
Fairly stable credit metrics for the current
rating and adequate financial flexibility.
Rating factors Rating factors
Structural mail volume decline in the Post - Exposure to global macroeconomic trends in
eCommerce - Parcel division due to secular the logistics businesses.
changes in the industry (i.e. competition Structural decline of traditional postal
from electronic communication and services.
digitalisation).
Exposure to global market volatility and
competitiveness through the DHL divisions.

57
Liquidity and sources of funds

As at the balance sheet date, the Group had cash and cash equivalents in the amount of
3.6billion (previous year: 3.0billion) at its disposal. A large portion of this is held
directly by Deutsche Post AG. Most of the cash is invested centrally on the money mar-
ket. These central short-term money market investments had a volume of 2.2billion
as at the balance sheet date.
Table A.37 gives a breakdown of the financial liabilities reported in our balance sheet.
Further information on recognised financial liabilities is contained in the Notes. Note 44
Financial liabilities
A.37
m
2014 2015
Bonds 4,290 4,304
Due to banks 184 166
Finance lease liabilities 210 167
Liabilities to Group companies 23 26
Financial liabilities at fair value through profit or loss 145 125
Other financial liabilities 317 390
5,169 5,178
Operating leases remain an important source of funding for the Group. We mainly use
operating leases to finance real estate, although we also finance aircraft, vehicle fleets
and IT equipment.
Operating lease liabilities by asset class

A.38
m
2014 2015
Land and buildings 5,375 5,929
Aircraft 1,083 1,072
Transport equipment 576 472
Technical equipment and machinery 67 70
Other equipment, operating and office equipment, miscellaneous 54 39
7,155 7,582
Operating lease obligations increased significantly year-on-year to 7.6billion, with new Capex by region
A.39
long-term agreements primarily for real estate overcompensating considerably for m
the reduction in the remaining terms of legacy agreements. Germany
911
1,092
Capital expenditure above prior-year level Europe (excluding Germany)
The Groups capital expenditure (capex) was 2,024million at the end of December2015, 574
300
7.9% above the prior years figure of 1,876million. Funds were used mainly to replace Americas
and expand assets as follows: 1,800million was invested in property, plant and equip- 267
223
ment and 224million in intangible assets excluding goodwill. Investments in property,
Asia Pacific
plant and equipment related to advance payments and assets under development 223
191
(1,133million), transport equipment (179million), land and buildings (124million),
Other regions
technical equipment and machinery (114million), IT equipment (109million), oper- 49
ating and office equipment (87million) as well as aircraft (54million). 70
2015 2014

58
Capex and depreciation, amortisation and impairment losses, full year

A.40
Global Forwarding, Corporate Center/
PeP Express Freight Supply Chain Other Consolidation1 Group
2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015
Capex (m) 415 533 571 856 207 123 304 318 380 192 1 2 1,876 2,024
Depreciation, amortisation
andimpairment losses (m) 340 319 462 404 88 396 268 313 224 233 1 0 1,381 1,665
Ratio of capex to depreciation,
amortisation and impairment
losses 1.22 1.67 1.24 2.12 2.35 0.31 1.13 1.02 1.70 0.82 1.36 1.22
1
Including rounding.
Capex and depreciation, amortisation and impairment losses, Q4

A.41
Global Forwarding, Corporate Center/
2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015
Capex (m) 208 209 296 360 79 22 108 98 181 91 1 2 871 782
Depreciation, amortisation
andimpairment losses (m) 86 86 96 121 23 24 71 89 58 59 1 1 333 380
Ratio of capex to depreciation,
amortisation and impairment
losses 2.42 2.43 3.08 2.98 3.43 0.92 1.52 1.10 3.12 1.54 2.62 2.06
1
Including rounding.
Capex by segment
A.42
Capital expenditure in the Post - eCommerce - Parcel division increased from 415mil-
m lion in the prior year to 533million. The largest capex portion continued to be attrib-
Post - eCommerce - Parcel utable to the expansion of our domestic and international parcel network. We also
533
415 focused upon investments in other operating and office equipment and IT.
Express In the Express division, capital expenditure amounted to 856million in the report-
856 ing year (previous year: 571million). Our investments went to maintaining and renew-
571
Global Forwarding, Freight
ing our aircraft fleet as well as to expanding our global and regional hubs in Leipzig,
123 Cincinnati, Singapore, Brussels and the East Midlands. Substantial investments were
207
also made in selected markets such as the UK, China and the United States.
Supply Chain
318 In the Global Forwarding, Freight division, a total of 123million was invested in
304
2015 (previous year: 207million). Of that figure, 96million was attributable to the
Corporate Center/Other
192 Global Forwarding business unit, where we invested in turnaround measures. We also
380 modernised and refurbished warehouses and office buildings across all regions. A total
2015 2014 of 27million was invested in the Freight business unit, mainly for real estate, equip-
ment and machinery, and software.
In the Supply Chain division, capital expenditure increased to 318million, from
304million in the previous year. Around 58% of the funds were used to support new
business. The Americas and Asia Pacific regions had the highest level of expenditure on
new customer projects, notably in the Consumer, Automotive as well as Life
Sciences&Healthcare sectors. In the Europe region, we invested mainly in renewals and
refurbishments, predominantly in the Retail and Automotive sectors. Additional invest-
ments were made in vehicle fleet replacements.
Cross-divisional capital expenditure decreased from 380million in the previous
year to 192million in the reporting year due to lower expenses for the vehicle fleet.

59
Higher operating cash flow Operating cash flow by division, 2015

A.43
At 3,444million in financial year 2015, net cash from operating activities was up m
404million on the previous year, although EBIT was down 554million. The depreci- Post - eCommerce - Parcel
1,337
ation, amortisation and impairment losses contained in EBIT are non-cash effects and
Express
are therefore eliminated. This item increased from 1,381million to 1,665million, due 1,761
in particular to the impairment losses relating to NFE. Net income from the disposal of Global Forwarding, Freight
non-current assets, which is contained in EBIT, is also eliminated. It rose by 250million 487
to 261million in the reporting year, driven mainly by the gains on the sale of our equity Supply Chain
611
investments in Sinotrans and Kings Cross. The change in provisions declined from
698million to 495million year-on-year, due to the reversal of restructuring provi-
sions in the Express division in the previous year, amongst other factors. At 2,656mil-
lion, net cash from operating activities before changes in working capital was down
405million on the previous year. Thanks to better working capital management, the
change in working capital led to a cash inflow of 788million compared with a cash
outflow of 21million in the previous year. The receivables and other current assets item
was a particularly significant factor contributing to this development.
At 1,462million, net cash used in investing activities was considerably higher than
in the previous year (1,087million). In particular, cash paid to acquire property, plant
and equipment and intangible assets rose significantly in the year under review, from
1,750million to 2,104million. This was partially offset by a rise in proceeds from the
disposal of non-current assets from 322million to 437million. Amongst other things,
this figure includes gains on the sale of equity investments. Mainly the purchase and
sale of money market funds in the previous year led to a total cash inflow of 400mil-
lion, increasing current financial assets. This compares with a cash inflow of 200mil-
lion in 2015 from the sale of money market funds.
Calculation of free cash flow

A.44
m
2014 2015 Q4 2014 Q4 2015
Net cash from operating activities 3,040 3,444 1,659 2,307
Sale of property, plant and equipment and intangible

assets 200 175 84 97
Acquisition of property, plant and equipment and
intangible assets 1,750 2,104 560 660
Cash outflow arising from change in property,
plantand equipment and intangible assets 1,550 1,929 476 563
Disposals of subsidiaries and other business units 4 15 1 16

Disposals of investments accounted for using
theequitymethod and other investments 0 223 0 0
Acquisition of subsidiaries and other business units 5 0 6 0
Acquisition of investments accounted for using
theequity method and other investments 1 0 1 0
Cash outflow/inflow arising from acquisitions/
divestitures 2 238 6 16
Interest received 45 47 8 14
Interest paid 188 76 71 69
Net interest paid 143 29 63 55
Free cash flow 1,345 1,724 1,114 1,705

60
Free cash flow improved by 379million year-on-year to 1,724million, due primarily

to a sharp rise in net cash from operating activities. Cash inflows from the disposal of
the equity investments also helped to increase this item. A sharp fall in interest paid also
contributed to the improvement in free cash flow; in the first quarter of 2015, we un-
wound interest rate swaps for bonds, which led to a cash inflow. The accounting treat-
ment of these inflows is the same as for the hedged item. For this reason, we are only
reporting small interest payments of 76million in the reporting year (previous year:
188million). Free cash flow was reduced due primarily to the increased amount of cash
paid to acquire property, plant and equipment and intangible assets.
At 1,367million, net cash used in financing activities was significantly lower than
in the previous year (2,348million). In the previous year, the repayment of a bond of
926million made a significant contribution to the cash outflow. At 1,030million, the
dividend paid to our shareholders was again the largest payment item in 2015. It in-
creased by 62million year-on-year.
Changes in the individual activities saw cash and cash equivalents increase from
2,978million as at 31December2014 to 3,608million.
Net assets
Selected indicators for net assets
A.45
31 Dec.2014 31 Dec.2015
Equity ratio % 25.9 29.8
Net debt m 1,499 1,093
Net interest cover 20.7 83.1
Net gearing % 13.5 8.8
FFO to debt1 % 27.7 29.1
1
Calculation Financial position, page 54.
Increase in consolidated total assets

The Groups total assets amounted to 37,870million as at 31December2015, 891mil-
lion higher than at 31December2014 (36,979million).
At 23,727million, non-current assets were up on the previous years figure of
22,902million. Intangible assets increased by 138million to 12,490million, driven
primarily by a rise in goodwill that was due to exchange rate movements. However, the
impairment losses on intangible assets in relation to NFE reduced this item by 310mil-
lion. Property, plant and equipment increased by 618million to 7,795million as add
itions and positive currency effects exceeded depreciation, impairment losses and dis-
posals. The reversal of impairment losses in the Express Americas region also contributed
to the rise. In contrast, non-current financial assets decreased from 1,363million to
1,113million, due primarily to the sale of shares in equity investments. Deferred tax
assets changed from 1,752million to 2,007million.
At 14,143million, current assets were at the previous years level (14,077million).
Inventories decreased by 51million to 281million. The sale of money market funds
worth 200million was the main reason for the significant decline in current financial
assets from 351million to 179million. Trade receivables declined by 131million to
7,694million, although foreign currency effects of 165million had an offsetting effect.
Other current assets also decreased, declining by 243million to 2,172million. The

Group Management Report Report on Economic Position Financial position Net assets
61
decrease was attributable to a large number of minor factors. The reasons for the
630million increase in cash and cash equivalents to 3,608million are described in
the section entitled Financial position. Page 59f.
At 11,034million, equity attributable to Deutsche Post AG shareholders was
1,658million higher than at 31December2014 (9,376million). Consolidated net
profit for the period, the increased discount rates applicable to pension provisions and
positive currency effects made a positive contribution, whereas the dividend payment
to our shareholders reduced equity.
Current and non-current liabilities rose slightly from 16,988million to 17,214mil-
lion. The increase related to trade payables in particular; they rose by 147million to
7,069million, due mainly to exchange rate movements. Other current liabilities rose
by 59million to 4,255million, partly due to a rise in liabilities to employees. At
5,178million, financial liabilities barely changed from the 5,169million recorded as
at 31December2014:while non-current financial liabilities declined by 58million to
4,625million, current financial liabilities rose by 67million to 553million. At
9,361million, current and non-current provisions were significantly down on the figure
of 10,411million as at 31December2014: actuarial gains attributable to a rise in inter-
est rates led to a decline in provisions for pensions.
Net debt drops to 1,093million

Our net debt declined sharply from 1,499million as at 31December2014 to 1,093mil-
lion as at 31December2015. The equity ratio improved from 25.9% to 29.8%. The dy-
namic gearing ratio was 0.4 years in financial year 2015. Net interest cover shows the
extent to which net interest obligations are covered by EBIT. It rose from 20.7 to 83.1.
Net gearing was 8.8% as at 31December2015.
Net debt
A.46
m
31 Dec.2014 31 Dec.2015
Non-current financial liabilities 4,655 4,578
Current financial liabilities 425 440
Financial liabilities 5,080 5,018
Cash and cash equivalents 2,978 3,608
Current financial assets 351 179
Long-term deposits1 60 0
Positive fair value of non-current financial derivatives1 192 138
Financial assets 3,581 3,925
Net debt 1,499 1,093
1
Reported in non-current financial assets in the balance sheet.

62
Business performance in the divisions
OVERVIEW
Key figures by operating division

A.47
m 2014 2015 +/% Q4 2014 Q4 2015 +/%
adjusted adjusted
Post - eCommerce - Parcel

Revenue 15,686 16,131 2.8 4,353 4,513 3.7
of which Post 10,014 9,784 2.3 2,689 2,650 1.5
eCommerce - Parcel 5,672 6,347 11.9 1,664 1,863 12.0
Profit from operating activities (EBIT) 1,298 1,103 15.0 425 487 14.6
Return on sales (%)1 8.3 6.8 9.8 10.8
Operating cash flow 1,085 1,337 23.2 478 797 66.7
Express
Revenue 12,491 13,661 9.4 3,411 3,638 6.7
of which Europe 5,670 6,045 6.6 1,528 1,637 7.1
Americas 2,259 2,559 13.3 627 698 11.3
Asia Pacific 4,456 4,995 12.1 1,237 1,317 6.5
MEA (Middle East and Africa) 924 1,039 12.4 246 268 8.9
Consolidation/Other 818 977 19.4 227 282 24.2
Profit from operating activities (EBIT) 1,260 1,391 10.4 348 319 8.3
Return on sales (%)1 10.1 10.2 10.2 8.8
Operating cash flow 1,689 1,761 4.3 578 671 16.1

Revenue 14,924 14,890 0.2 3,960 3,736 5.7
of which Global Forwarding 10,881 10,827 0.5 2,914 2,673 8.3
Freight 4,196 4,238 1.0 1,086 1,113 2.5
Profit from operating activities (EBIT) 293 181 <100 71 99 39.4
Return on sales (%)1 2.0 1.2 1.8 2.6
Operating cash flow 181 487 >100 205 384 87.3
Supply Chain
Revenue 14,737 15,791 7.2 3,953 3,799 3.9
of which EMEA (Europe, Middle East and Africa) 9,136 9,474 3.7 2,471 2,152 12.9
America 3,855 4,323 12.1 1,005 1,128 12.2
Asia Pacific 1,781 2,035 14.3 486 529 8.8
Profit from operating activities (EBIT) 465 449 3.4 161 176 9.3
Return on sales (%)1 3.2 2.8 4.1 4.6
Operating cash flow 673 611 9.2 436 588 34.9
1
EBIT/revenue.

Group Management Report Report on Economic Position Business performance in the divisions
63
POST - ECOMMERCE - PARCEL DIVISION
Revenue increases by 2.8%

In the reporting year, with 2.3 additional working days in Germany, revenue in the di-
vision was 16,131million, 2.8% above the prior-year figure of 15,686million. Most of
the growth stemmed from the eCommerce - Parcel business unit. Excluding positive
currency effects of 182million, revenue growth was 1.7% in the reporting year. In the
fourth quarter of 2015, revenue in the division increased year-on-year by 3.7%.
Lower revenue and volumes in Post business unit, partly on account of strike
In the Post business unit, revenue was 9,784million in the reporting year, 2.3% below
the prior-year figure of 10,014million. Volumes declined more significantly by 5.8%. In
the fourth quarter of 2015, revenue was 2,650million (previous year: 2,689million).
Although the price of a standard letter increased as of 1January2015, the additional
sales revenue could not fully offset the decrease in revenue attributable to the overall
decline in Mail Communication volumes. The Germany-wide labour strikes called by
the trade union ver.di, our collective bargaining partner, at mail centres and in letter
and parcel delivery operations negatively impacted volume and revenue performance.
Furthermore, 2014 included additional mail volumes as a result of factors such as the
European elections and the transition to SEPA. The cross-border mail business per-
formed well during the reporting year. The Gro and Maxi formats in particular bene-
fitted from the fact that small-sized goods are increasingly being sent by letter.
In the Dialogue Marketing business, revenue and volumes decreased in addressed
advertising mail. By contrast, revenue generated from unaddressed advertising mail
increased, whereby our Einkauf aktuell product registered considerably higher growth
than Postwurfsendung items.
Post: revenue
A.48
m 2014 2015 +/% Q4 2014 Q4 2015 +/%
adjusted adjusted
Mail Communication 6,641 6,545 1.4 1,760 1,769 0.5
Dialogue Marketing 2,232 2,192 1.8 629 612 2.7
Other 1,141 1,047 8.2 300 269 10.3
Total 10,014 9,784 2.3 2,689 2,650 1.5
Post: volumes
A.49
Mail items (millions) 2014 2015 +/% Q4 2014 Q4 2015 +/%
adjusted adjusted
Total 20,500 19,302 5.8 5,435 5,197 4.4
of which Mail
Communication 8,882 8,555 3.7 2,307 2,231 3.3
of which Dialogue
Marketing 9,523 8,846 7.1 2,561 2,473 3.4
eCommerce - Parcel business unit expands

Revenue in the eCommerce - Parcel business unit was 6,347million in the reporting
year, exceeding the prior-year figure of 5,672million by a pleasing 11.9%. The fourth
quarter also saw double-digit revenue growth.

64
In Germany, the positive growth trend continued. Driven by e-commerce, volumes

rose by 8.7% to 1,123million parcels in the reporting year. Revenue increased by 9.5%
to 4,372million (previous year: 3,992million).
Our domestic and cross-border parcel business in Europe continued to perform
Business units and market well. In addition to the markets we have entered, we acquired the Parcelshop network of DHL
positions, page27
Freight in Sweden in the fourth quarter of 2015. Revenue in the European parcel busi-
ness grew by 8.7% to 735million in the reporting year (previous year: 676million).
Revenue in the DHL eCommerce business was up by 23.5% to 1,240million in 2015
(previous year: 1,004million). Very positive development in the B2C segment in India,
growth in the domestic business in the United States as well as positive currency effects
contributed to this increase. Excluding currency effects, growth was 6.1%.
eCommerce - Parcel: revenue

A.50
m 2014 2015 +/% Q4 2014 Q4 2015 +/%
adjusted adjusted
Parcel Germany 3,992 4,372 9.5 1,200 1,315 9.6
Parcel Europe1 676 735 8.7 181 204 12.7
DHL eCommerce2 1,004 1,240 23.5 283 344 21.6
Total 5,672 6,347 11.9 1,664 1,863 12.0
1
Excluding Germany.
2
Outside Europe.
Parcel Germany: volumes

A.51
Parcels (millions)
2014 2015 +/% Q4 2014 Q4 2015 +/%
Total 1,033 1,123 8.7 309 338 9.4
Increased costs slow earnings growth

Although revenues were up compared with the prior year, EBIT in the reporting year
declined significantly, due in particular to higher material and labour costs, the contin-
ued expansion of our parcel network as well as the effects of the strike. Division EBIT
was 1,103million, 15.0% below the prior-year level (1,298million). Return on sales
declined from 8.3% to 6.8%. EBIT was also impacted by an amount of 39million relat-
ing to a provision for an interest-based increase in expected payments to the Post-
beamtenversorgungskasse (postal civil servant pension fund). In the fourth quarter of
2015, EBIT was 487million, exceeding the fourth quarter of 2014 by 14.6% (previous
year: 425million).
Operating cash flow increased from 1,085million to 1,337million, which was
attributable mainly to active working capital management. Working capital decreased
from 278million to 517million.

65
EXPRESS DIVISION
International business continues to perform well

Revenue in the division increased by 9.4% to 13,661million in the reporting year (pre-
vious year: 12,491million). As the majority of our business activities take place outside
the euro zone, we recorded positive currency effects of 882million. Excluding these
effects, revenue growth was 2.3%. In the fourth quarter of 2015, revenue improved by
6.7%; excluding currency effects, the increase was just 2.2%. This was due mainly to the
fact that the fuel surcharges passed on to our customers were lower in all regions as the
price of crude oil declined compared with the previous year.
In the Time Definite International (TDI) product line, daily revenues improved by
3.3% and per-day shipment volumes by 8.7% in the reporting year. This trend continued
in the fourth quarter: daily revenues increased by 2.3% and shipment volumes by 9.8%.
Due to the decrease in fuel surcharges, growth in revenues was substantially lower than
volume growth.
In the Time Definite Domestic (TDD) product line, daily revenues increased by 2.6%
and per-day shipment volumes by 7.9% in the reporting year. In the fourth quarter, daily
revenues increased by 4.9%, whilst shipment volumes saw an even greater rise of 10.1%.
EXPRESS: revenue by product

A.52
m per day1 2014 2015 +/% Q4 2014 Q4 2015 +/%
adjusted adjusted
Time Definite
International(TDI) 36.0 37.2 3.3 38.7 39.6 2.3
Time Definite
Domestic(TDD) 3.8 3.9 2.6 4.1 4.3 4.9
1
To improve comparability, product revenues were translated at uniform exchange rates.
These revenues are also the basis for the weighted calculation of working days.
EXPRESS: volumes by product

A.53
Thousands of items 2014 2015 +/% Q4 2014 Q4 2015 +/%
perday1 adjusted adjusted
Time Definite
International(TDI) 693 753 8.7 748 821 9.8
Time Definite
Domestic(TDD) 366 395 7.9 395 435 10.1
1
To improve comparability, product revenues were translated at uniform exchange rates.
These revenues are also the basis for the weighted calculation of working days.
Double-digit volume growth in Europe region

Revenue in the Europe region increased by 6.6% to 6,045million in the reporting year
(previous year: 5,670million). The figure for the year under review included positive
currency effects of 75million that relate mainly to our business activities in Switzerland
and the UK. Excluding these effects, revenue growth was 5.3%. In the TDI product line,
daily revenues increased by 4.3%. Shipment volumes improved by 12.8% in the report-
ing year. Growth in the region was also maintained in the fourth quarter of 2015, with
daily international shipment revenues increasing by 4.0%, whilst daily shipment vol-
umes grew by 11.8%.

66
Volumes in the Americas region increased at the end of the year

Revenue in the Americas region increased by 13.3% to 2,559million in the reporting
year (previous year: 2,259million). The figure for the year under review included
positive currency effects of 244million, which relate mainly to our business in the
United States. Excluding these effects, revenue in the region was 2.5% above the prior-
year figure. In the TDI product line, we increased daily revenues by 6.8% in the report-
ing year; we were able to increase daily shipment volumes slightly by 1.0%. In the fourth
quarter of 2015, daily revenues improved by 8.4% and volumes by a good 6.7%.
TDI volumes in the Asia Pacific region continue to rise

Revenue in the Asia Pacific region increased by 12.1% to 4,995million in the reporting
year (previous year: 4,456million). The figure for the year under review included
significant currency gains of 521million that relate primarily to our business activities
in China and Hong Kong, as well as other countries in the region. Excluding these effects,
the revenue increase was 0.4%. In the TDI product line, daily revenues improved by 0.7%
and shipment volumes by 6.7% in the reporting year. In the fourth quarter of 2015, daily
revenues declined by 2.0%, whilst volumes increased by 8.1%.
Increased volumes in MEA region

Revenue in the MEA region (Middle East and Africa) improved by 12.4% to 1,039mil-
lion in the reporting year (previous year: 924million). The figure for the year under
review included positive currency effects of 100million that are associated mainly with
our business activities in the Middle East. Excluding these effects, revenue for the region
rose by 1.6%. In the TDI product line, daily revenues increased by 6.7% and per-day
volumes by a substantial 9.7%. Growth in the fourth quarter of 2015 amounted to 4.3%
for daily revenues and 8.1% for per-day volumes.
Full-year EBIT and return on sales improve

In the reporting year, EBIT in the division improved by 10.4% to 1,391million (previous
year: 1,260million). Increased volumes and revenues as well as the higher operating
profitability of our network were the main factors contributing to this growth. Return
on sales improved for the year as a whole, rising from 10.1% in the previous year to 10.2%
in 2015. This figure included a positive one-off effect of 82million, attributable largely
to the reversal of impairment losses on assets in the United States. Of the potential
earnings exposure of 200million for full-year 2015 projected in the interim financial
statements for the third quarter of 2015, a total of 66million was attributable to the
Express division. The reversal of restructuring provisions in the United States resulted
in income in the previous year that was offset mainly by impairment losses on aircraft.
In the fourth quarter of 2015, EBIT dropped by 8.3% to 319million and return on sales
from 10.2% to 8.8%.
As a result of the improved operating profit, operating cash flow in 2015 increased
by 4.3% to 1,761million (previous year: 1,689million).

67
GLOBAL FORWARDING, FREIGHT DIVISION
Freight forwarding business remains under pressure on the whole

In the reporting year, revenue in the division was at the same level as the prior year, at
14,890million (previous year: 14,924million). Excluding positive currency effects of
546million, however, revenue declined by 3.9%.The freight forwarding business re-
mained under pressure in the fourth quarter of 2015: revenue was down year-on-year
by 5.7% to 3,736million a decline of 7.9% excluding positive currency effects of
90million.
In the Global Forwarding business unit, revenue in the reporting year declined
slightly by 0.5% to 10,827million (previous year: 10,881million). Excluding positive
currency effects of 534million, the decline was 5.4%. Gross profit improved by 1.5% to
2,434million (previous year: 2,399million).
Air freight business declines significantly, ocean freight stabilises within weak market
In financial year 2015, air freight volumes fell significantly by 8.3% compared with the
previous year. Overall, the market saw a slight decline; the year-end business was mod-
erate. To counteract the decrease in margins, we withdrew from some major trans
actions. The measures we implemented to increase profitability contributed to a 1.2%
improvement in gross profit in the reporting year. However, our air freight revenue
declined by 2.4% in 2015. In the fourth quarter, volumes were 11.8% and revenue 11.6%
below the prior-year figures.
Ocean freight volumes in 2015, however, remained at the prior-year level. New
business gains offset declines stemming from prolonged market weakness and consid-
erably lower demand from several customers. Our ocean freight revenues rose by 3.0%
in the reporting year. However, gross profit fell by 2.0%. The measures we have imple-
mented to improve our margins are yielding initial success, but are being offset partially
by the continued weak market environment. In the fourth quarter, volumes were 1.2%
and revenue 4.9% below the prior-year figures.
The performance of our industrial project business (Table A.54, reported as part of
Other in the Global Forwarding business unit) was considerably weaker than in the
previous year, as the low oil price has reduced customer demand. In the reporting year,
the share of revenue related to industrial project business and reported under Other was
27.3% and therefore down year-on-year (previous year: 34.8%). Gross profit thus
declined by 11.8% compared with the prior-year period.
Global Forwarding: revenue

A.54
m 2014 2015 +/% Q4 2014 Q4 2015 +/%
adjusted adjusted
Air freight 5,111 4,990 2.4 1,411 1,247 11.6
Ocean freight 3,576 3,685 3.0 927 882 4.9
Other 2,194 2,152 1.9 576 544 5.6
Total 10,881 10,827 0.5 2,914 2,673 8.3

68
Global Forwarding: volumes

A.55
Thousands 2014 2015 +/% Q4 2014 Q4 2015 +/%
adjusted adjusted
Air freight tonnes 4,046 3,712 8.3 1,075 948 11.8
of which exports tonnes 2,276 2,109 7.3 605 547 9.6
Ocean freight TEUs1 2,932 2,930 0.1 731 722 1.2
1
Twenty-foot equivalent units.
Revenue in European overland transport business exceeds prior-year level

In the Freight business unit, revenue was up by 1.0% to 4,238million in 2015 (previous
year: 4,196million), bolstered by positive currency effects of 13million. Transport
volumes increased by 7.7%. Growth was driven heavily by B2C business in Sweden and
full-truckload business in Germany. Volume declines on account of currency fluctu
ations in business with Switzerland and business restrictions with members of the CIS
had an adverse impact. Gross profit improved by 1.6% to 1,100million (previous year:
1,083million).
Turnaround costs push down earnings trend

In the reporting year, EBIT in the division declined significantly from 293million to
181million. It was impacted by high expenses of 336million which were incurred
for turnaround measures. These expenses include one-off effects related to NFE com-
prising impairment losses on capitalised assets in the amount of 310million and
subsequent costs of 26million. EBIT was also impacted by an amount of 35million
relating to the potential earnings exposure of 200million for full-year 2015 projected
in the interim financial statements for the third quarter of2015. At the same time, gross
profit margins in air freight improved considerably; in ocean freight they stabilised at
the expected low level. Return on sales declined to 1.2% (previous year: 2.0%). In the
fourth quarter of 2015, however, the trend reversed: EBIT improved markedly by 39.4%
to 99million, up from the prior-year figure of 71million.
Net working capital was reduced sharply in the reporting year, thanks to improved
receivables management, which caused an equally sharp rise in operating cash flow to
487million (previous year: 181million).

69
SUPPLY CHAIN DIVISION
Continued revenue growth in all regions SUPPLY CHAIN:

revenue by sector, 2015
Revenue in the division increased by 7.2% to 15,791million in the reporting year (pre- A.56
Total revenue: 15,791 million
vious year: 14,737million). Positive currency effects of 1,244million contributed to
this growth; excluding these effects, revenue declined by 1.3%. The decrease is due g h
f a
mainly to the change in revenue reporting in connection with the UK National Health
Service (NHS) in the fourth quarter of 2015 as a result of the revised terms of the contract. e
Compared with the previous year, the Automotive, Consumer and Retail sectors demon-
strated the highest revenue growth. In the fourth quarter of 2015, revenue declined
d
year-on-year by 3.9% from 3,953million to 3,799million, due primarily to NHS rev-
b
enues in the amount of 465million which were no longer recognised.
c
In the EMEA (Europe, Middle East and Africa) region, volumes in the Automotive
and Retail sectors increased due to higher end-customer demand. Revenue in the Life a Retail 25%
Sciences&Healthcare sector declined, reflecting the change in the NHS revenue report- b Consumer 21%
c Life Sciences&Healthcare 18%
ing in the UK.
d Automotive 12%
In the Americas region, we gained revenue from new business in the United States, e Technology 10%
driven predominantly by the Consumer and Automotive sectors. Revenue growth in f Others 7%
Canada was impacted negatively as a whole by the loss of a contract in the Retail sector g Engineering&Manufacturing 4%
h Financial Services 3%
at the end of the second quarter of 2014.
In the Asia Pacific region there was a substantial revenue increase across all focus
sectors. China and Thailand in particular contributed to this increase, which stemmed
from new and additional business. In China, revenue increased significantly in the SUPPLY CHAIN:
revenue by region, 2015
Automotive and Technology sectors. Revenue growth in Thailand came primarily from A.57
Total revenue: 15,791 million
the Retail and Consumer sectors. Our business in India, Hong Kong, Vietnam and Japan
also contributed to the increased revenue in the region. c
New business worth around 1,349million secured

In 2015, the Supply Chain division concluded additional contracts worth around
1,349million in annualised revenue with both new and existing customers. The Con- b
sumer, Retail, Automotive, Life Sciences&Healthcare and Technology sectors accounted a
for the majority of the gains. In the fourth quarter of 2015, the procurement and logis-
tics contract with the UK NHS was extended to 2018 under the same scope but with new
cost savings targets. The annualised contract renewal rate remained at a consistently a Europe/Middle East/Africa/
Consolidation 60%
high level.
b Americas 27%
c Asia Pacific 13%
EBIT includes restructuring expenses and disposal income
EBIT in the division was 449million in the reporting year (previous year: 465million).
The main reason for the decline was the restructuring costs supporting our Focus.
Connect. Grow. strategic initiative, which were offset partially by income from the sale
of shares in Kings Cross in the UK. New business also had a positive effect on earnings.
The return on sales fell to 2.8% (previous year: 3.2%). In the fourth quarter of 2015, EBIT
increased from 161million in the previous year to 176million. Higher income from
real estate sales was dampened by restructuring costs.
Operating cash flow was 611million (previous year: 673million). The decrease
was attributable mainly to EBIT performance and excludes the cash proceeds benefit of
the Kings Cross sale.

70
DEUTSCHE POST SHARES

Share price performance
A.58

40
38
36
34 Closing price: 25.96
32
30
28
26
24
22
20
31 December 2014 31 March 2015 30 June 2015 30 September 2015 31 December 2015
Deutsche Post DHL Group EURO STOXX 501 DAX1

1
Rebased to the closing price of Deutsche Post shares on 31December2014.
Deutsche Post shares stable compared with the rest of the industry
Deutsche Post shares closed at 25.96, down by 4.0% year-on-year. Although the shares
thus underperformed the DAX (up 9.6%) and the EURO STOXX 50 (up 7.3%), when
compared with the rest of the industry, our share performance was more stable. The
MSCI World Transportation Index made up of the most important transport stocks
lost a total of 9.0% in value in 2015. Our shares generated a loss of 0.9% on a total
return basis, i.e., including the dividend per share. Average daily Xetra trading volumes
were above the prior-year level at 4.4million shares.
Deutsche Post shares: seven-year overview

A.59
2009 2010 2011 2012 2013 2014 2015

Year-end closing price 13.49 12.70 11.88 16.60 26.50 27.05 25.96
High 13.79 14.46 13.83 16.66 26.71 28.43 31.08
Low 6.65 11.18 9.13 11.88 16.51 22.30 23.15
Number of shares millions 1,209.0 1,209.0 1,209.0 1,209.0 1,209.0 1,211.21 1,212.81
Market capitalisation as at 31December m 16,309 15,354 14,363 20,069 32,039 32,758 31,483
Average trading volume per day shares 5,446,920 5,329,779 4,898,924 4,052,323 4,114,460 4,019,689 4,351,223
Annual performance including dividends % 18.3 1.4 1.3 45.6 63.9 5.1 0.9
Annual performance excluding dividends % 13.3 5.9 6.5 39.7 59.6 2.1 4.0
Beta factor2 0.91 0.95 1.19 0.88 0.86 0.94 0.95
Earnings per share3 0.53 2.10 0.96 1.367 1.73 1.71 1.27
Cash flow per share4 0.48 1.59 1.96 0.17 2.47 2.51 2.84
Price-to-earnings ratio 5
25.5 6.0 12.4 12.2 7
15.3 15.8 20.4
Price-to-cash flow ratio4,6 28.1 8.0 6.1 97.6 10.7 10.8 9.1
Dividend m 725 786 846 846 968 1,030 1,0318
Payout ratio % 112.6 30.9 72.7 51.6 46.3 49.7 66.99
Dividend per share 0.60 0.65 0.70 0.70 0.80 0.85 0.858
Dividend yield % 4.4 5.1 5.9 4.2 3.0 3.1 3.3
1
Increase due to the operation of a bonus programme for executives Note 36. 2 Three-year beta; Source: Bloomberg. 3 Based upon consolidated net profit after deduction
of non-controlling interests Note 22. 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. 8Proposal. 9 Excluding one-off effects (NFE and strike-related effects, disposals and other one-off effects, some of which are
baseduponassumptions by management): 46.0%.

Group Management Report Deutsche Post Shares
71
Peer group comparison: closing prices

A.60
30Sept. 31Dec. 31Dec. 31Dec.
2015 2015 +/% 2014 2015 +/%
Deutsche Post DHL Group EUR 24.78 25.96 4.8 27.05 25.96 4.0
bpost EUR 21.23 22.59 6.4 20.79 22.59 8.7
Royal Mail Group GBp 458.80 444.00 3.2 429.90 444.00 3.3
FedEx USD 143.98 148.99 3.5 173.66 148.99 14.2
UPS USD 98.69 96.23 2.5 111.17 96.23 13.4
Kuehne+Nagel CHF 125.20 137.80 10.1 135.30 137.80 1.8
Analyst recommendations for Deutsche Post shares, 2015

A.61
14 12
Hold
4
Sell
28.99
Average 26.921
Shareholder structure1
A.62
Buy
price target
5 1 21 0 1
a
b2
1
Year-on-year figures.
Free float remains constant b b1
The investment share of our largest investor KfW Bankengruppe is 20.9% (previous
year: 21.0%) and the free float is 79.1%. Based upon our share registers figures, the share a KfW Bankengruppe 20.9%
of outstanding stock held by private investors is 11.3% (previous year, adjusted: 10.3%). b Free float 79.1%
b1 Institutional investors 67.8%
In terms of the regional distribution of identified institutional investors, the highest
b2 Private investors 11.3%
percentage of shares (13.5%) is held by US investors (previous year: 13.7%), followed
closely by the United Kingdom with a share of 13.3% (previous year: 16.3%). The share 1
As at 31December2015.
of institutional investors in Germany increased to 11.7% (previous year: 10.8%). Our

25largest institutional investors held a total of 38.2% of all issued shares (previous year:
36.6%). Shareholder structure by region1
A.63
Investor relations work intensified d

We held a total of 470 individual meetings and 95 group meetings with more than 840
investors at conferences and road shows during the reporting year. Our team visited all c
the major financial centres, including London, New York and Frankfurt am Main, as a
well as the emerging trading platforms in Asia.
a Germany 44.0%
b Other 29.2%
c USA 13.5%
d UK 13.3%
1
As at 31December2015.

72
NON-FINANCIAL FIGURES
Employees
Human Resources contributes to company success
We see HR excellence as a key factor for ensuring the Groups performance. By recruiting,
developing and motivating the right employees all across our Group, we make a contri
bution to the companys success. Moreover, we place great importance on competitive
reward and recognition for our employees. By doing so, we lay a solid foundation for
productive and long-term working relationships.
Employee Opinion Survey in line with strategic direction

In the reporting year, we further developed the questionnaire used for our annual
Group-wide employee opinion survey. In doing so, we can ensure that it remains in line
Objectives and strategies, page 33 with Strategy 2020 and that results are comparable to those of other companies. The results
of the Active Leadership indicator and the Employee Engagement key performance
indicator relevant for internal management can be compared with the previous years.
The response rate in 2015 was 73%, somewhat lower than the prior year. When compared
externally and against the aspects addressed in the previous year, the trend is largely
positive. In order to help protect the environment, most of the surveys were again con-
ducted electronically: 59% of the questionnaires were sent online.
Selected results from the Employee Opinion Survey

A.64
%
2014 2015
Response rate 77 73
KPI Active Leadership (new) 73
KPI Active Leadership (old) 71 72
KPI Employee Engagement (new) 73
KPI Employee Engagement (old) 72 72
Number of employees continues to rise slightly

As at 31December2015, we employed 450,508 full-time equivalents in more than 220
countries and territories, 1.5% more than in the previous year. The headcount at the end
of the year was 497,745.
In the Post - eCommerce - Parcel division, we hired new employees primarily to
support the strong, sustained growth in the parcel business in Germany, Europe and
India. The number of employees in the Express division increased considerably com-
pared with the previous year. This was necessary mainly in operations due to the in-
crease in shipment volumes. In the Global Forwarding, Freight division, our workforce
declined in the Global Forwarding business unit, primarily in Asia. In the Supply Chain
division, our restructuring measures had an impact on staff levels, more than compen-
sating for the increase in staff numbers resulting from new business.

Group Management Report Non-Financial Figures Employees
73
Staff levels were up in nearly all regions. We saw the largest percentage increase in Employees by region1
A.65
our workforce in the Americas; however, we continue to employ most of our personnel
e
in Germany.
d
The opportunity for part-time employment was taken by 18% of all employees.
7.0%of employees left the Group unplanned over the course of the year. a
Our current planning foresees another slight increase in the number of employees
in financial year 2016. c
Number of employees
A.66
b
2014 2015 +/% a Germany 38.4%
b Europe (excluding Germany) 24.3%
Full-time equivalents
At year-end1 443,784 450,508 1.5 c Americas 17.0%
of which Post - eCommerce - Parcel 166,342 170,549 2.5 d Asia Pacific 16.2%
e Other 4.1%
Express 75,185 82,127 9.2
Global Forwarding, Freight 44,059 42,200 4.2 1
As at 31 December 2015; full-time equivalents.
Supply Chain 146,220 145,032 0.8
Corporate Center/Other 11,978 10,600 11.5
of which Germany 170,596 173,042 1.4
Europe (excluding Germany) 108,890 109,646 0.7
Americas 74,573 76,666 2.8
Asia Pacific 71,216 72,723 2.1
Other regions 18,509 18,431 0.4
Average for the year2 440,809 449,910 2.1
Headcount
At year-end2 488,824 497,745 1.8
Average for the year 484,025 492,865 1.8
of which hourly workers and salaried employees 440,973 451,882 2.5
Civil servants 37,963 35,669 6.0
Trainees 5,089 5,314 4.4
1
Excluding trainees.
2
Including trainees.
Staff costs exceed prior-year level

At 19,640million, staff costs exceeded the prior-year level (18,189million), due mainly
to exchange rates.
Staff costs and social security benefits

A.67
m
2014 2015
Wages, salaries and compensation 14,583 15,723
Social security contributions 2,164 2,300
Retirement benefit expenses 965 1,031
Expenses for other employee benefits 477 586
Staff costs 18,189 19,640

74
Performance-based compensation
As a responsible employer, we offer our employees performance and market-based com-
pensation in line with the companys long-term requirements. In addition, we provide
defined benefit and defined contribution retirement plans in many countries and enable
access to health insurance.
Systematic job grading ensures our remuneration structures are fair and balanced.
When positions are graded, personal characteristics are not taken into consideration.
Future-oriented agreements
The Generations Pact, concluded between Deutsche Post AG and the trade unions in
2011, continues to be successful. In September2015, the number of employees with the
required working-time accounts surpassed 20,000; by the end of the year the number
had reached 20,404. As at the end of 2015, 3,305 employees had already entered partial
retirement. Now that legislators have laid the required foundations, we shall, in future,
offer a comparable instrument for age-based working solutions to our civil servants.
In July2015, we succeeded in concluding a collective agreement for more than
130,000 Deutsche Post AG employees in Germany. With a term of 32 months, the agree-
ment gives us planning security until 31January2018. The DHL Delivery companies will
remain part of the Post - eCommerce - Parcel division.
Targeted employee development

We intend to develop all employees in all divisions into certified specialists through our
Group initiative Certified, which includes individual modules ranging from basic Group
and industry knowledge to specific skills associated with a division and function. By
2020, we want to have certified around 80% of our workforce.
We offer our executives comprehensive training that focuses both on business as
well as personal development.
Deutsche Post DHL Group offers numerous training opportunities in Germany.
Depending upon their interests, secondary school graduates can choose from over 15
state-accredited apprenticeship schemes as well as ten dual-study programmes. In 2015,
we offered 2,375 junior employees an apprenticeship or study opportunity; in 2016, we
shall increase this offer to 2,458.
Gender distribution Seeing diversity as potential

in management1, 2015
A.68 People from various cultures, with different points of view and skills work together
successfully at Deutsche Post DHL Group. Its precisely this diversity that we see as po-
b tential for the further growth of our organisation and an opportunity to attract and
retain talent. We promote inclusion and reject any form of discrimination principles
that are part of our Group-wide Code of Conduct.
In 2015, we continued to make a concerted effort to strengthen the significance of
diversity within our company. We trained employees, continued the Diversity Councils
work and held another global Diversity Week.
a As at 31December2015, the proportion of women in management worldwide was
20.7% (previous year: 19.3%), a figure we intend to raise continuously. A performance
a Men 79.3%
measurement system, regular reporting, a number of different divisional development
b Women 20.7%
programmes for female junior employees and womens networks, as well as options for
1
Based upon upper and middle management. improving work-family balance, will contribute to this at the company level.

Group Management Report Non-Financial Figures Employees Health and safety Corporate responsibility
75
Health and safety

Maintaining and improving the health of our employees
Our employees can only deliver first-class services to our customers if they are motivated
and capable. Therefore, we seek to maintain and improve the health and well-being of
our employees, primarily through prevention.
In the reporting year, we improved the quality of key performance indicators in all
units. The worldwide illness rate was 5.1%.
Many preventive measures taken

We also harmonised our reporting methods and aligned them to international standards
at Occupational Health&Safety. We now show all values regarding accidents on a
Group-wide basis. Due to altered calculation processes, we are unable to provide values
for the previous year.
We take many occupational safety measures to prevent accidents. In the reporting
year, pedestrian and driver safety training were just some of the initiatives carried out
in the 49 German branches of the Post - eCommerce - Parcel division. Moreover, to put
even greater emphasis on the issue, we issued a new Group-wide guideline on occupa-
tional safety and health protection.
Workplace accidents
A.69
2015
Accident rate (number of accidents per 200,000 hours worked)1 4.0
Working days lost per accident 1
15.6
Number of fatalities due to workplace accidents2 6
1
Coverage: around 96%.
2
Of which as a result of traffic accidents: 1.
Corporate responsibility
Focus on three action areas
As part of our corporate strategy we have made it our goal to be a benchmark company for Objectives and strategies, page 33
responsible business. Furthermore, we have codified responsibility in our Code of Con-
duct, which is guided by both the principles of the Universal Declaration of Human
Rights and the United Nations Global Compact and adheres to recognised legal stand-
ards, including key anti-corruption laws and agreements. The Group also supports the
United Nations Sustainable Development Goals. Our corporate responsibility activities
concentrate on three focus areas:
Responsible business practice: We co-ordinate the most important aspects and issues
relating to responsible corporate governance in a Group-wide network that serves as a
cross-divisional and cross-functional forum. Through on-going dialogue with our stake-
holders, we ensure that their expectations and requirements as regards social and environ
mental issues are accounted for appropriately and that our business is aligned systemat-
ically with their interests. In the reporting year, we conducted a materiality analysis in
which we identified the issues most important to us as regards governance, staff and the
environment, set corresponding targets and established key performance indicators.

76
Social responsibility: The Groups social responsibility is pooled and managed under
Corporate Citizenship. We provide logistical support in the wake of natural disasters,
are committed to the educational and professional development of socially disadvan-
taged young people and support local environmental protection and aid projects. Fur-
thermore, in the reporting year we launched an initiative together with partners in
Germany to promote professional development and the integration of refugees.
Environmental management and shared value: Our Group-wide environmental man-
agement is based upon the value proposition of shared value. Measures to increase
carbon efficiency and environmentally friendly GoGreen services help us to fulfil our
responsibility towards the environment and society, and to create added value for our
customers whilst strengthening our market position. In the reporting year, we worked
together with our customers to design more environmentally friendly supply chains and
thereby achieve cost-effective reductions in carbon emissions.
Greenhouse gas emissions fall slightly whilst carbon efficiency improves

We aim to reduce our dependency upon fossil fuels, improve our carbon efficiency and
lower costs. We have anchored these goals throughout the entire Group with our
GoGreen environmental protection programme. Our GoGreen products and services
also help customers achieve their own environmental targets whilst concurrently open-
ing up new business opportunities for the company. By the year 2020, we intend to
improve the carbon efficiency of our own operations and those of our subcontractors
by 30% compared with 2007. In order to measure and manage our target achievement
Group management, page 38 we make use of a carbon efficiency index (CEX). Over the reporting year, the Group saw
its carbon efficiency reach a score of 25 index points, an improvement of one index point
on the prior year, due mainly to further significantly improved efficiency in the Express
division.
We quantify our CEX-based greenhouse gas emissions in accordance with the
Greenhouse Gas Protocol Standards and DIN EN 16258; those attributable to our Euro-
pean air freight business are also calculated in accordance with the requirements of the
European Union Emissions Trading System (EU ETS). Pursuant to DIN EN 16258, all
gases that are harmful to the environment must be disclosed in the form of CO2 equiva
lents (CO 2e). In 2015, our direct (Scope 1) and indirect (Scope 2) greenhouse gas
emissions amounted to 6.05 million tonnes (previous year: 5.67million tonnes of CO2e).
This figure reflects the fuel consumption of our fleet and energy consumption in our
buildings. The indirect greenhouse gas emissions (Scope 3) amounted to 21.90 million
tonnes (previous year: 23.04million tonnes of CO2e).
dpdhl.com/cr-report2015 Further details on our emissions performance can be found in our Corporate Responsi-
bility Report.

Group Management Report Non-Financial Figures Corporate responsibility
77
CO2e emissions, 2015

A.70
Total: 27.95 million tonnes1
24%
62% Ground transport
11% Air transport
Ocean transport
3%
Buildings
1
Scopes 1 to 3.
Fuel and energy consumption in own fleet and buildings

A.71
2014 2015
adjusted
Consumption by fleet
Air transport (jet fuel) million kilograms 1,187.9 1,312.8
Road transport (petrol, biodiesel, diesel, bio-ethanol, LPG) million litres 447.6 449.1
Road transport (biogas, CNG) million kilograms 4.4 4.9
Energy for buildings and facilities (including electric vehicles) million kilowatt hours 3,247 3,113
Sustainability ratings reaffirm our performance

In the reporting year, we maintained, and to some extent improved, our strong perform
ance in the most well-known ratings, including the sustainability indices DJSI World, DJSI
Europe, FTSE4Good and MSCI. We again received a very good ranking from the sustain-
ability research company Sustainalytics. In the environmental field we achieved the
maximum score in the CDP and were listed in the CDP Global 500 Climate Disclosure
Leadership Index DACH. Further results can be found in our Corporate Responsibility Report. dpdhl.com/cr-report2015

78
Procurement
Procurement expenses, 2015 Groups procurement expenditure increased
A.72
Volume: 10.7 billion In the year under review, the Group centrally purchased goods and services with a total
h value of around 10.7billion (previous year: 10.3billion). Procurement helps the
g
a
divisions to reduce expenditure and make cost-effective investments.
For the Express division, a global tender was put out for the kerosene requirements
f
of the divisions aircraft. Costs were reduced through a tender for the operation of air-
craft by partner airlines in Europe. A tender for retrofitting Boeing 757 aircraft also
e
achieved savings. These procurement measures resulted in savings in the low tens of
b
millions of euros.
d
c Corporate Procurement purchased sorting and safety technology to expand the
Express hub in Leipzig. It supported the Post - eCommerce - Parcel division with the
a Services 26%
b Air fleet 15% procurement of sorting solutions.
c Ground fleet 12% A master agreement used by the Supply Chain division for the procurement of
d IT and communications 12% materials handling equipment was extended and improved in order to achieve on-going
e Transport services 11%
f Real estate 9%
savings. The demand for support in the procurement of transport services for Supply
g Production systems 9% Chain and Global Forwarding customers increased considerably.
h Network supplies 6% In the reporting year, we expanded the established financing and payment model
Supplier Finance, which is now used in 19 countries across all regions. Co-ordinated by
Corporate Finance and Procurement, the programme supports the divisions in improv-
ing their working capital whilst suppliers benefit from favourable financing conditions.
Environmentally friendly procurement

In Germany, 3,140 emission-efficient Euro class 5 and 6 vehicles were put into operation
and 1,163 Euro class 6 company cars were ordered. In addition, electric vehicles were
manufactured and are being tested on mail and parcel delivery routes. Corporate Pro-
curement was also involved in the purchasing of the required charging stations. The
dpdhl.com/cr-report2015 individual projects and CO2 savings achieved are outlined in our Corporate Responsibility Report.
Standardising supplier management

In the reporting year, we introduced an IT platform that contains comprehensive infor-
mation about our suppliers from determining demand quantities to automated tenders
and ratings thus optimising our internal processes.

Group Management Report Non-Financial Figures Procurement Customers and quality
79
Customers and quality

Facts and figures, customers and quality
A.73
90 % D + 1 ISO CERTIFICATION
Letters delivered within Germany the day Ensuring harmonised quality standards.
afterposting.
Open 53 hours Net Promoter Approach
Average weekly opening
time ofaround28,000
MAIL AND DHL Continuously turning
criticism into improve-
salespoints in Germany. PARCEL B USINESS ments.
BUSINESS UNITS
91.5 % MYDHL Insanely Customer
Centric Culture
SATISFIED CUSTOMERS P ORTAL Keeping a constant
Allowing business eye on customer
According to independent market study
customers to easily requirements.
Kundenmonitor Deutschland.
send express items.
TV-certified
Certified quality
OVER 500 More than 250
locations certified
CUSTOMER
management ELECTRIC by the Transported IMPROVEMENT
system for letters VEHICLES Asset Protection PROJECTS
and internal system Quality also means Association (TAPA). 60 improvement
for measuring protecting theenviron- initiatives successfully
parcel transit times. ment. implemented in 2015.
Sending mail and parcels quickly and reliably

Our customers rate the quality of our services based upon whether posted items reach
their destinations quickly, reliably and undamaged. According to surveys conducted by
Quotas, a quality research institute, 90% of the domestic letters posted in Germany
during our daily opening hours or before final collection are delivered to their recipients
the next day. Although the nationwide labour strikes at mail centres and in letter and
parcel delivery operations compromised the mail transit time in the reporting year, we
still remain well above the legal requirement of 80%. In order to ensure this level of
quality in the long term, our quality management is based upon a system that is certified
each year by TV NORD, a recognised certification and testing organisation. Transit
times for international letters are determined by the International Post Corporation.
Here, we rank amongst the top postal companies.
In the parcel business, items usually reach their recipients the next working day. This
is based upon parcels that were collected from business customers and that were de
livered the next day. Our internal system for measuring parcel transit times has been
certified by TV Rheinland since 2008. Furthermore, we are responding to changing
customer requirements as regards flexible and reliable delivery with new delivery m odels.
In our mail business, we have, to date, achieved a high level of automation that
exceeds 90%. In our parcel network, we have increased our sorting capacity by 50%
since the launch of our Parcel Production Concept in 2012 by increasing productivity
in our existing facilities and expanding our infrastructure nationwide. Additional parcel
centres are currently under construction.

80
E-POST enables companies of all sizes and in all sectors to digitalise all business mail
and as a result increase their profitability and service quality. Using a direct interface to
their own IT environment, customers can use our software to send letters for digital
orphysical delivery. Private customers can securely organise and store their data and
documents and pay bills online.
The average weekly opening time of our around 28,000 sales points in 2015 was
53hours during the reporting year (previous year: 55 hours). The annual survey con-
ducted by Kundenmonitor Deutschland, the largest consumer study in Germany, also
showed a high acceptance of our exclusively partner-operated retail outlets: 91.5% of
customers were satisfied with our quality and service (previous year: 91%). In addition,
impartial mystery shoppers from TNS Infratest tested the postal outlets in retail stores
around 38,000 times over the year. The result showed that 93.4% of customers were
served within three minutes (previous year: 94.5%).
Another central characteristic of the quality of our products is environmental pro-
tection. We employ a TV NORD-certified environmental management system in our
mail and parcel businesses in Germany. Moreover, we have successfully implemented
the EU energy efficiency directive in Germany. Our GoGreen products offer private and
business customers climate-neutral shipping options. We operate one of the largest
electric vehicle fleets in the world, comprising over 500 vehicles. Furthermore, we use
environmentally-friendly technologies in our buildings and operating facilities, such as
LEDs, and we have also increased our use of renewable energies.
Service quality and exceptional customer-centricity in express business

We want to offer our customers the best possible service quality all around the world
and thus place high demands on our products, processes, infrastructure and employees.
Therefore, we keep a constant eye on the changing requirements of our customers, for
example, through our Insanely Customer Centric Culture (ICCC) programme. When-
ever our employees as couriers, in customer service or in sales are in contact with a
customer, their feedback is documented and evaluated. As part of the Net Promoter
Approach, our managers talk to dissatisfied customers personally in order to find out
the root causes of their dissatisfaction. Customer criticism is thereby integrated into our
continuous improvement processes.
Via our online portal MyDHL and the Small Business Solution section, small and
medium-sized business customers in particular can ship their goods with ease and
obtain comprehensive information about shipping. Moreover, since this year customers
in even more countries have been able to obtain information about our shipping
optionsonline and at a glance such as our nearest service point locator or the online
or telephone booking of our customer pick-up service including associated pricing.
In Europe, we can provide our global customers with a central point of contact with
our European Key Account Support. The staff of this service team speak several lan-
guages, are available every weekday and co-ordinate the services of various DHL business
units in multiple countries. Upon request, shipment information can even be updated
directly in the customers systems.
We use quality control centres to track shipments worldwide and adjust our pro-
cesses as required. Should unforeseen events occur, flight and shipment routes can be
altered immediately. All our premium products are tracked by default for example,
Medical Express shipments until they are delivered. If shipments include sensitive
items, we also immediately take all necessary measures to ensure that they reach the
recipient at the agreed time and in the agreed quality.

Group Management Report Non-Financial Figures Customers and quality
81
As of the reporting year, customers in a number of countries can track their ship-
ments on mobile devices as well as choose the delivery time and location, which in-
creases the first delivery success rate.
Our operational safety, compliance with standards and the quality of service at our
facilities are reviewed regularly in co-operation with government authorities. Approxi
mately 280 locations over 120 of which are in Europe have been certified by the
Transported Asset Protection Association (TAPA), one of the worlds most renowned
safety associations, making us the leader in this field. Our sites have had global
ISO9001:2008 certification since 2013, thus validating our policy of harmonising qual-
ity standards. In Europe and Australia, our facilities are also ISO 14001:2004-certified.
Additional countries in the Europe region were certified in the reporting year, including
Turkey. Furthermore, we have laid the foundation in Europe for a sustainable energy
management system with the first ISO-50001:2011 certifications.
Customer feedback systematically improves forwarding business

In the Global Forwarding business unit, we are using customer feedback to systemat
ically improve our offering. The on-going customer response that we collect via the Net
Promoter Approach has again generated specific feedback. The corresponding approach
was expanded to cover 29 additional countries in the reporting year, with more to follow
in 2016.
Satisfied customers are our highest priority. We have more than 120 initiatives to
improve the service we provide. In the reporting year, we successfully completed 60 of
these Customer Improvement Projects with visible improvements in punctuality, re-
porting and invoicing. Various measures were implemented to ensure that our operating
performance in the Global Forwarding business unit is reviewed and improved con
tinuously. Regular performance dialogues have been established and employees trained
to apply structured problem-solving techniques. As a result, we are able to respond
quickly to customer needs and counteract looming problems.
In the Freight business unit, we set ourselves the goal of delivering the best customer
experience in order to attract more customers and increase their loyalty. To this end, we
are bolstering our customer service and investing heavily in systems to improve process
management and communication between customers and DHL employees.
Quality leader in the supply chain business

We want to be the quality leader in contract logistics the company that best under-
stands customers needs and leads the way in customer satisfaction. To this end, we
implement practices and methodologies that provide our customers with the highest
level of service quality and the most added value. We use globally tested processes to
offer our customers comparable solutions and uniformly high service standards. In
order to measure and monitor the quality of our service, we have defined a number of
key performance indicators for the division, which include safety and operational per-
formance. We consistently deliver products and services which meet the highest service
standards worldwide, achieving more than 95% in all relevant categories.

82
Brands
Brand architecture
A.74
Group
Post- eCommerce- Express Global Forwarding, Supply Chain

Divisions
Parcel Freight
Brands
Marketing expenditures, 2015 Value of Group brands continues to rise

A.75
Volume: around 429million According to independent studies, the strength of the Deutsche Post DHL Group brands
d continued to grow in the reporting year.
c
Market research institute Millward Brown valued the DHL brand at US$16.3billion
(previous year: US$13.7billion), moving the company up seven places to 66th on the list
of the Top 100 Most Valuable Global Brands. The study looks at financial figures as well
as market and consumer research data. Interbrand, a brand consulting company, uses
b as similar system to rank the worlds most valuable brands each year. Our DHL brand
a
was valued at US$5.4billion (previous year: US$5.1billion), moving it up one place to
80th in the 2015 Interbrand ranking.
Interbrand valued our domestic Deutsche Post brand at 979million (previous year:
a Product development
andcommunication 60.6% 936million), moving it up one place to 30th on the list of Germanys most valuable
b Other 17.2% brands. The consulting company Brand Finance gave the brand the same ranking in the
c Public&customer relations 16.2%
German Top 50, valuing it at 2.7billion (previous year: 2.5billion).
d Corporate wear 6.0%
Value of Group brands in 2015

A.76
DHL IS AMONGST THE BRAND VALUE

TOP 100 MOST VALUABLE I NCREASED AGAIN 1
GLOBAL BRANDS1 US$16.3
BILLION
(2015)
66 US$13.7
BILLION
+7 (2014)
VALUE OF DEUTSCHE POST BEST GERMAN BRANDS

BRAND IS INCREASING2 2015: RANKED 30TH3
2.7
BILLION 30
2.5 (2015)
BILLION
(2014) +1
1
Source: Millward Brown, 2015.
2
Source: Brand Finance, 2015.
3
Source: Interbrand, 2015.

Group Management Report NON-FINANCIAL FIGURES Brands POST-BALANCE-SHEET DATE EVENTS
OPPORTUNITIES AND RISKS Overall Board of Management assessment of opportunity and risk situation 83
Global DHL brand campaign

In March2015, we launched our global brand campaign with the tagline The Power of
Global Trade, which focuses upon the positive impact of global trade supported by
DHLs logistics services on peoples lives. The campaign comprises print and online
advertising, TV commercials and social media activities that target a global audience as
well as those in key domestic markets.
Wide-ranging partnerships with national and international events

DHL provides logistics services to support popular international events. For example, in
July2015 we announced a three-year logistics partnership with motorcycle racing series
MotoGP. We were also the Official Logistics Partner of Rugby World Cup 2015 and as
part of our international e-commerce and logistics partnership with German football
club FC Bayern Munich, we supported, amongst other things, the launch of the clubs
online fan shop in China. Furthermore, we continued our partnerships with Fashion
Week events, Cirque du Soleil, Gewandhausorchester Leipzig, Formula 1 and Formula E.
Sports sponsorships also strengthen peoples emotional ties with the Deutsche Post
brand, which is why we are involved with the amateur football platform www.fussball.de,
the DFB cup and the German national teams in partnership with the Deutsche Fuball-
Bund (German football federation). During the Womens FIFA World Cup C anada
2015, we ran a multimedia brand campaign. We also continued our other sports part-
nerships in 2015, such as the Deutsche Tourenwagen Masters (DTM German Touring
Car Masters) race series.
POST-BALANCE-SHEET DATE EVENTS

Remaining shares in Kings Cross sold
The remaining shares in the property development companies Kings Cross Central
Property Trust, UK, and Kings Cross Central General Partner Ltd., UK, assigned to the
Supply Chain division were sold at the end of January2016.
OPPORTUNITIES AND RISKS

of opportunity and risk situation
No foreseeable risk to the Group
Identifying opportunities and swiftly capitalising upon them and counteracting risks
are important objectives for our Group. We already account for the anticipated impact
of potential events and developments in our business plan. Opportunities and risks are
defined as potential deviations from projected earnings. In consideration of our current
business plan, the Groups overall opportunity and risk situation has not changed sig-
nificantly compared with last years risk report. No new risks have been identified that
could have a potentially critical impact upon the Groups result. Based upon the Groups
early warning system and in the estimation of its Board of Management, there were no
identifiable risks for the Group in the current forecast period which, individually or

84
collectively, cast doubt upon the Groups ability to continue as a going concern. Nor are
any such risks apparent in the foreseeable future. The assessment of a stable to positive
Financial position, page 56 outlook is moreover reflected in the Groups credit ratings.
Opportunity and risk management

Uniform reporting standards for opportunity and risk management
As an internationally operating logistics company, we are facing numerous changes. Our
aim is to identify the resulting opportunities and risks at an early stage and take the
necessary measures in the specific areas affected in due time to ensure that we achieve
a sustained increase in enterprise value. Our Group-wide opportunity and risk manage-
ment system facilitates this aim. Each quarter, managers estimate the impact of future
scenarios, evaluate opportunities and risks in their departments and present planned
measures as well as those already taken. Queries are made and approvals given on a
hierarchical basis to ensure that different managerial levels are involved in the process.
Opportunities and risks can also be reported at any time on an ad hoc basis.
Our early identification process links the Groups opportunity and risk management
with uniform reporting standards. We continuously improve the IT application used for
this purpose. Furthermore, we use a Monte Carlo simulation for the purpose of aggre-
gating opportunities and risks in standard evaluations.
The simulation is a stochastic model that takes the probability of occurrence of the
underlying risks and opportunities into consideration and is based upon the law of large
numbers. One million randomly selected scenarios one for each opportunity and
risk are combined on the basis of the distribution function of each individual oppor-
tunity and risk. The resulting totals are shown in a graph of frequency of occurrence.
The following graph shows an example of such a simulation:
Monte Carlo simulation

A.77
Frequency of occurrence
in one million simulation steps (incidence density)
Bandwidth with 95% probability
aa m + bb m + zz m
Deviation from planned EBIT
Planned EBIT Most common value in one million simulation steps (mode)
Worse than expected Better than expected

Group Management Report Opportunities and Risks Overall Board of Management assessment
of opportunity and risk situation Opportunity and risk management 85
Opportunity and risk management process

A.78
1 Identify and assess 2 Aggregate and report

Assess Review
Define measures Supplement and change
Analyse Aggregate
Identify Report
Internal
3 Overall strategy/risk
auditors
review management/compliance
5 Control processes Determine
Review results Manage
Review measures
4 Operating measures
Monitor early warning indicators Plan
Implement
Divisions Opportunity and risk-controlling processes Board of Management Internal auditors
The most important steps in our opportunity and risk management process are:
1 Identify and assess: Managers in all divisions and regions evaluate the opportunity
and risk situation on a quarterly basis and document the action taken. They use
scenarios to assess best, expected and worst cases. Each identified risk is assigned
to one or more managers who assess and monitor the risk, specify possible proced
ures for going forwards and then file a report. The same applies to opportunities.
The results are compiled in a database.
2 Aggregate and report: The controlling units collect the results, evaluate them and
review them for plausibility. If individual financial effects overlap, they are noted in
our database and taken into account when compiling them. After being approved
by the department head, all results are passed on to the next level in the hierarchy.
The last step is complete when Corporate Controlling reports to the Group Board
of Management on significant 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 indicate
the total spectrum of results for the respective division. Within these extremes, the
total expected cases shows current expectations. The second method makes use
of a Monte Carlo simulation, the divisional results of which are regularly included
in the opportunity and risk reports to the Board of Management.
3 Overall strategy: The Group Board of Management decides on the methodology that
will be used to analyse and report on opportunities and risks. The reports created
by Corporate Controlling provide an additional, regular source of information to
the Board of Management for the overall steering of the Group.
4 Operating measures: The measures to be used to take advantage of opportunities and
manage risks are determined within the individual organisational units. They use
cost-benefit analyses to assess whether risks can be avoided, mitigated or transferred
to third parties.

86
5 Control: For key opportunities and risks, early warning indicators have been defined
that are monitored constantly by those responsible. Corporate Internal Audit has
the task of ensuring that the Board of Managements specifications are adhered to.
It also reviews the quality of the entire opportunity and risk management operation.
The control units regularly analyse all parts of the process as well as the reports from
Internal Audit and the independent auditors with the goal of identifying potential
for improvement and making adjustments where necessary.
Internal accounting control and risk management system

(Disclosures required under section 315 (2), No. 5 of the Handelsgesetzbuch (HGB
German Commercial Code) and explanatory report)
Deutsche Post DHL Group uses an internal control system (ICS) to ensure that Group
accounting adheres to generally accepted accounting principles. The system is intended
to make sure that statutory provisions are complied with and that both internal and
external accounting provide a valid depiction of business processes in figures. All figures
must be entered and processed accurately and completely. Accounting mistakes are to
be avoided in principle and significant assessment errors uncovered promptly.
The ICS design comprises organisational and technical measures that extend to all
companies in the Group. Centrally standardised accounting guidelines govern the recon
ciliation of the single-entity financial statements and ensure that international financial
reporting standards (EU IFRSs) are applied in a uniform manner throughout the Group.
All Group companies are required to use a standard chart of accounts. We immediately
assess new developments in international accounting for relevance and announce their
implementation in a timely manner, for example, in monthly newsletters. Often, ac-
counting processes are pooled in a shared service centre in order to centralise and
standardise them. The IFRS financial statements of the separate Group companies are
recorded in a standard, SAP-based system and then processed at a central location where
one-step consolidation is performed. Other ICS components include automatic plausi-
bility reviews and system validations of the accounting data. In addition, regular, m anual
checks are carried out decentrally by those responsible at the local level (a chief financial
officer, for example), and centrally by Corporate Accounting&Controlling, Taxes and
Corporate Finance at the Corporate Center.
Over and above ICS and risk management, Corporate Internal Audit is an essential
component of the Groups control and monitoring system. Using risk-based auditing
procedures, Corporate Internal Audit regularly examines the processes related to finan-
cial reporting and reports its results to the Board of Management. The data reported are
checked and analysed chronologically, both upstream and downstream. If necessary, we
call in outside experts. Finally, the Groups standardised process for preparing financial
statements using a centrally administered financial statements calendar guarantees a
structured and efficient accounting process.
Reporting and assessing opportunities and risks

In the following, we have reported mainly on those risks and opportunities which, from
the current standpoint, could have a significant impact upon the Group during the
forecast period beyond the impact already accounted for in the business plan. The risks
and opportunities have been assessed in terms of their probability of occurrence and

Group Management Report Opportunities and Risks Opportunity and risk management
Categories of opportunities and risks 87
their impact. The assessment is used to classify the opportunities and risks into those
of low, medium or high relevance. We characterise opportunities and risks of medium
or high relevance as significant. The following assessment scale is used:
Classification of risks and opportunities

A.79
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 )
Low Medium High
The opportunities and risks described here are not necessarily the only ones the Group
faces or is exposed to. Our business activities could also be influenced by additional
factors of which we are currently unaware or which we do not yet consider to be material.
Opportunities and risks are identified and assessed decentrally at Deutsche Post DHL
Group. Reporting on possible deviations from projections, including latent opportun
ities and risks, occurs primarily at the country or regional level. In view of the degree
ofdetail provided in the internal reports, we have combined the decentrally reported
opportunities and risks into the categories shown below for the purposes of this report.
It should be noted that the underlying individual reports with the exception of those
on the world economy and global economic output usually exhibit a zero to minimal
correlation. It is unlikely that several major opportunities or risks would occur system-
atically at the same time in a single category or across categories.
Unless otherwise specified, a low relevance is attached to individual opportunities
and risks within the respective categories and in the forecast period under observation
(2016). With respect to opportunities and risks arising from potential or on-going legal
proceedings, we generally refrain from making an assessment to avoid affecting our
position in the proceedings. The opportunities and risks generally apply for all divisions,
unless indicated otherwise.
Categories of opportunities and risks

Opportunities and risks arising from political, regulatory or legal conditions
A number of risks arise primarily from the fact that the Group provides some of its
services in a regulated market. Many of the postal services rendered by Deutsche Post AG
and its subsidiaries (particularly the Post - eCommerce - Parcel division) are subject to

88
Glossary, page 208 sector-specific regulation by the Bundesnetzagentur (German federal network agency) pur-
Glossary, page 208 suant to the Postgesetz (PostG German Postal Act). The Bundesnetzagentur approves or
reviews prices, formulates the terms of downstream access and has special supervisory
powers to combat market abuse.
On 25January2012, the European Commission issued a ruling on the formal in-
vestigation regarding state aid that it had initiated on 12September2007. In its review,
the European Commission determined that Deutsche Post AG was not overcompensated
for providing universal services between 1989 and 2007 using state resources. It also
did not find fault with the guarantees issued by the German state for legacy liabilities.
By contrast, in its review of funding for civil servants pensions, the European Commis-
sion concluded that illegal state aid had, in part, been received. It found that the pension
relief granted to Deutsche Post AG by the Bundesnetzagentur during the price approval
process led to Deutsche Post AGs receiving a benefit, which it must repay to the Federal
Republic of Germany; in addition, it must also be ensured that no benefits are received
in the future which could be considered illegal state aid. The commission furthermore
stated that the precise amount to be repaid was to be calculated by the Federal Republic
of Germany. In a press release, the European Commission had referred to an amount
of between 500million and 1billion. Deutsche Post AG is of the opinion that the
commissions state aid decision of 25January2012 cannot withstand legal review and
has filed an appeal with the European Court of Justice in Luxembourg. The Federal
Republic of Germany has similarly appealed the decision.
To implement the state aid ruling, the federal government called upon
Deutsche Post AG on 29May2012 to make a payment of 298million including inter-
est. Deutsche Post AG paid that amount to a trustee on 1June2012 and appealed the
recovery order to the Administrative Court. The appeal, however, has been suspended
pending a ruling from the European Court. The company made additional payments
to the trustee of 19.4million on 2January2013, 15.6million on 2January2014,
20.2million on 2January2015 and 20.1million on 4January2016. Those payments
were reported in the balance sheet under non-current assets; the earnings position re-
mained unaffected. The European Commission has not expressed its final acceptance
of the calculation of the state aid to be repaid. On 17December2013, it initiated pro-
ceedings with the European Court of Justice against the Federal Republic of Germany
to effect a higher repayment amount. In its decision on those proceedings of 6May2015,
the European Court of Justice merely ruled that Germany must independently define
the individual markets before making the calculation. It did not rule on the amount of
the repayment claim.
In its ruling of 18September2015, the General Court of the European Union held
that the decision of the European Commission dated 12September2007 regarding the
initiation of a formal state aid investigation was null and void based upon a complaint
filed by Deutsche Post. The legal action did not involve the substantive proceedings, but
rather the procedural side issue of whether the European Commission was acting within
its rights in reopening the state aid proceedings in 2007. In 2007, Deutsche Post had
filed an action against the reopening of the state aid proceedings as a precautionary
measure. The substantive proceedings of the legal dispute will continue, i.e. the action
brought by Deutsche Post against the EU state aid ruling of 25January2012 that is still
pending before the General Court of the European Union.
If the appeals of Deutsche Post AG or the federal government against the state
aidruling are successful, the opportunity exists that the payment of 298million and
thepayments of 19.4million, 15.6million, 20.2million and 20.1million made in

Group Management Report Opportunities and Risks Categories of opportunities and risks
89
addition as well as the additional annual payments of around 20million to be made

in the future will be reimbursed. Reimbursement would only affect the liquidity of
Deutsche Post AG; the earnings position would remain unaffected.
Although Deutsche Post AG and the federal government are of the opinion that the
state aid decision of 25January2012 cannot withstand legal review, it cannot be ruled
out that Deutsche Post AG will ultimately be required to make a potentially higher pay-
ment, which could have an adverse effect on earnings.
In addition to the opportunities and risks arising from sector-specific regulation
pursuant to the Postgesetz (PostG German Postal Act), the company is subject to add Glossary, page 208
itional opportunities and risks arising from legal conditions.
On 5November2012, the Bundeskartellamt (German federal cartel office) initiated
proceedings against Deutsche Post AG on suspicion of abusive behaviour with respect
to mail transport for major customers. Based upon information from Deutsche Posts
competitors, the authorities suspected that the company had violated German and
European antitrust law. In a decree dated 2July2015, the Bundeskartellamt determined
that such violations had indeed taken place but also that Deutsche Post had discontinued
them at the end of 2013. No fine was imposed. The company appealed the decision to
the Higher Regional Court in Dsseldorf on 4August2015 and submitted a statement
setting out the grounds of appeal within the prescribed period.
We describe other significant legal proceedings in the Notes. However, we do not see Note 51
these proceedings posing a risk of significant deviation from plan for the forecast period
2016.
Macroeconomic and industry-specific opportunities and risks

Macroeconomic and sector-specific conditions are a key factor in determining the suc-
cess of our business. For this reason, we pay close attention to economic trends in the
regions. Despite the volatile economic climate, demand for logistics services rose in 2015,
as did the related revenues.
A variety of external factors offer us numerous opportunities; indeed we believe that
the global market will continue to grow. Advancing globalisation means that the logis-
tics industry will continue to expand at least as fast, as or faster than, the world economy
as a whole. This is especially true of Asia, where trade flows to other regions and in
particular within the continent will continue to increase. As the market leader, the ex-
pansion will benefit us with our DHL divisions to an above-average extent. This also
applies to other regions with strong economic growth such as South America and the
Middle East, where we are similarly well positioned to take advantage of the market
opportunities arising.
Whether and to what extent the logistics market will grow depends on a number of
factors. The trend towards outsourcing business processes continues. As a result, supply
chains are becoming more complex and more international, but are also more prone to
disruption. Customers are therefore calling for stable, integrated logistics solutions,
which is what we provide with our broad-based service portfolio. We continue to see
growth opportunities in this area, in particular in the Supply Chain division and as a
result of closer co-operation between all our divisions.
The booming online marketplace represents another opportunity for us in that it is
creating demand for transporting documents and goods. The B2C market is experiencing Glossary, page 208
double-digit growth, particularly due to the rapid rise in digital retail trade. This has
created high growth potential for the domestic and international parcel business, which
we intend to tap into by expanding our parcel network.

90
We are nonetheless unable to rule out the possibility of an economic downturn in

specific regions or a stagnation or decrease in transport quantities. However, this would
not reduce demand in all business units. Indeed, the opposite effect could arise in the
parcel business, for example, as a result of more frequent online purchasing amongst
consumers. Companies might also be forced to outsource transport services in order to
lower costs. Cyclical risks can affect our divisions differently with respect to magnitude
as well as point in time, which may mitigate the total effect. Therefore, we consider these
to be medium-level risks. Moreover, we have taken measures in recent years tomake
costs more flexible and to allow us to respond quickly to a change in market d emand.
Deutsche Post and DHL are in competition with other providers. Such competition
can significantly impact our customer base as well as the levels of prices and margins in
our markets. In the mail and logistics business, the key factors for success are quality,
customer confidence and competitive prices. Thanks to the high quality we offer, along
with the cost savings we have generated in recent years, we believe that we shall be able
to remain competitive and keep any negative effects at a low level.
Financial opportunities and risks

As a global operator, we are inevitably exposed to financial opportunities and risks.
These are mainly opportunities or risks arising from fluctuating exchange rates, interest
rates and commodity prices and the Groups capital requirements. We attempt to reduce
the volatility of our financial performance due to financial risk by implementing both
operational and financial measures.
Opportunities and risks with respect to currencies may result from scheduled for-
eign currency transactions or those budgeted for the future. Significant currency risks
from budgeted transactions are quantified as a net position over a rolling 24-month
period. Highly correlated currencies are consolidated in blocks. Some of the identified
risks are hedged using derivatives. The most important net surpluses are budgeted at
the Group level in pound sterling, Japanese yen and Indian rupee. The Czech crown is
the only currency with a considerable net deficit. By offsetting the net deficit in US dol-
lars with surpluses in other highly correlated currencies, the net risk in the US dollar
block at the Group level is relatively balanced and thus not actively managed. The
average hedging level for the year 2016 was approximately 57% as at the reporting date.
A potential general devaluation of the euro presents an opportunity for the Groups
earnings position. Based upon current macroeconomic estimates, we consider this
opportunity to be of low relevance. The main risk to the Groups earnings position would
be a general appreciation of the euro. The significance of this is deemed low when con-
sidering the individual risks arising from the performance of the respective currencies.
The overall risk of all these currency effects is deemed to be of medium relevance
for the Group.
As a logistics group, our biggest commodity price risks result from changes in fuel
prices (kerosene, diesel and marine diesel). In the DHL divisions, most of these risks are
passed on to customers via operating measures (fuel surcharges). We have entered into
noteworthy hedging transactions for the purchase of diesel in the Post - eCommerce -
Parcel division.

91
The key control parameters for liquidity management are the centrally available
l iquidity reserves. Deutsche Post DHL Group had central liquidity reserves of 4.2billion
as at the reporting date, consisting of central financial investments amounting to
2.2billion plus a syndicated credit line of 2billion. The Groups liquidity is therefore
sound in the short and medium term. Moreover, the Group enjoys open access to the
capital markets on account of its good ratings within the industry, and is well positioned
to secure long-term capital requirements.
The Groups net debt amounted to 1.1billion at the end of 2015. The share of finan-
cial liabilities with short-term interest rate lock-ins in the total financial liabilities in the
amount of 5.2billion was approximately 11%.
Further information on the Groups financial position and finance strategy as well
as on the management of financial risks can be found in the report on the economic
position and in the Notes. Note 48
Opportunities and risks arising from corporate strategy

Over the past few years, the Group has ensured that its business activities are well posi-
tioned in the worlds fastest-growing regions and markets. We are also constantly work-
ing to create efficient structures in all areas to enable us to flexibly adapt capacities and
costs to demand a prerequisite for lasting, profitable business success. With respect to
strategic orientation, we are focusing upon our core competencies in the mail and logis-
tics businesses with an eye towards growing organically and simplifying our processes
for the benefit of our customers. Our earnings projections regularly take account of
development opportunities arising from our strategic orientation. Risks arising from
the current corporate strategy, which extends over a long-term period, are considered
to be of low relevance for the Group in the period under review. The divisions face the
following special situations:
In the Post - eCommerce - Parcel division, we are responding to the challenges
presented by the structural change from a physical to a digital business. We are coun-
teracting the risk arising from changing demand by expanding our range of services.
Due to the e-commerce boom, we expect our parcel business to continue growing
robustly in the coming years and are therefore extending our parcel network. We are
also expanding our range of electronic communications services, securing our standing
as the quality leader and, where possible, making our transport and delivery costs more
flexible. We follow developments in the market very closely and take these into account
in our earnings projections. For the specified forecast period, we do not see these
developments as having significant potential to impact our business negatively.
In the Express division, our future success depends above all upon general factors
such as trends in the competitive environment, costs and quantities transported. After
having spent recent years successfully restructuring our business and substantially im-
proving cost structures, we are focusing upon fostering growth in our international
business. We expect a further increase in shipment volumes. Based upon this assump-
tion, we are investing in our network, our services, our employees and the DHL brand.
Against the backdrop of the past trend and the overall outlook, we do not see any
significant strategic opportunities or risks for the Express division beyond those re-
ported in the section on Opportunities and risks arising from macroeconomic and
industry-specific conditions.

92
In the Global Forwarding, Freight division we purchase transport services from

airlines, shipping companies and freight carriers rather than providing them ourselves.
In the best-case scenario, we succeed in sourcing transport services on a cost-effective
basis. We thus have the opportunity of generating higher margins. In the worst-case
scenario, we bear the risk of not being able to pass on all price increases to our custom-
ers. The extent of the opportunities and risks essentially depends on trends in the supply,
demand and price of transport services as well as the duration of our contracts. Com-
prehensive knowledge in the area of brokering transport services helps us to capitalise
on opportunities and minimise risk.
In the Supply Chain division, we provide customers in a variety of industries with
solutions along the entire logistics chain. Our success is highly dependent on our cus-
tomers business success. Since we offer customers a widely diversified range of products
in different sectors all over the world, we can diversify our risk portfolio and thus coun-
teract the incumbent risks. Moreover, our future success also depends on our ability to
continuously improve our existing business and to grow in our most important markets
and customer segments. We do not see any significant strategic opportunities or risks
for the Supply Chain division beyond those reported in the section entitled Oppor
tunities and risks arising from macroeconomic and industry-specific conditions.
Opportunities and risks arising from internal processes

For us to render our services, a number of internal processes must be aligned. These
include in addition to the fundamental operating processes supporting functions
such as sales and purchasing as well as the corresponding management processes. The
extent to which we succeed in aligning our internal processes to meet customer needs
whilst simultaneously lowering costs correlates with potential positive 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.
Logistics services are generally provided in bulk and require a complex operational
infrastructure with high quality standards. To consistently guarantee reliability and
punctual delivery, processes must be organised so as to proceed smoothly with no tech-
nical or personnel-related glitches. Any weaknesses with regard to the tendering, sorting,
transport, warehousing or delivery of shipments could seriously compromise our com-
petitive position. To enable us to identify possible disruptions in our workflows and take
the necessary measures at an early stage, we have developed a global IT platform that
depicts and integrates our global supply chains and locations. Near real-time informa-
tion on incidents relevant to security flows into the system, which in cases of disruption
also serves as a central communications platform. This poses a competitive advantage
that has already met with a high degree of interest from both security agencies and
customers.

93
Opportunities and risks arising from information technology

The security of our information systems is particularly important to us. The goal is to
ensure continuous IT system operation and prevent unauthorised access to our systems
and databases. To fulfil this responsibility, the Information Security Committee, a
sub-committee of the IT Board, has defined guidelines and procedures based upon
ISO27002, the international standard for information security management. In addition,
Group Risk Management, IT Audit, Data Protection and Corporate Security monitor
and assess IT risk on an on-going basis. For our processes to run smoothly at all times,
the essential IT systems must be constantly available. We ensure this by designing our
systems to protect against complete system failures. In addition to third-party data
centres, we operate central data centres in the Czech Republic, Malaysia and the United
States. Our systems are thus geographically separate and can be replicated locally.
We limit access to our systems and data such that employees can only access the
data they need to perform their duties. All systems and data are backed up on a regular
basis, and critical data are replicated across data centres.
All of our software is updated regularly to address bugs, close potential gaps in
security and increase functionality. We employ a patch management process a defined
procedure for managing software upgrades to control risks that could arise from
outdated software or from software upgrades.
Based upon the measures described above, we estimate the probability of experi-
encing a significant IT incident with serious consequences as highly unlikely.
Our E-POST communication platform was re-certified in 2015 by the German F ederal
Office for Information Security in accordance with its standards for IT-Grundschutz
following completion of the annual audit. The E-POST platform was also re-certified by
TV Informationstechnik GmbH pursuant to trusted site privacy criteria.
Opportunities and risks arising from human resources

It is essential for us to have qualified and motivated employees in order to achieve long-
term success. However, demographic change could lead to a decrease in the pool of
available talent in various markets. We respond to this risk with various measures
designed to motivate and engage our employees as well as promote their development.
We use Strategic Resource Management to address the risks arising from an aging
population and the capacity shortages that may result from changing demographic and
social structures. The experience gained is used to continuously improve strategic
resource management as an analysis and planning instrument. The Generations Pact agreed Employees, page 74
upon with trade unions in Germany also contributes to taking advantage of the career
experience of employees for as long as possible, whilst at the same time offering young
people long-term career perspectives.
Possible increases in both chronic and acute diseases pose another risk to sustaining
our business operations. We address this risk with a systematic health management pro- Health and safety, page 75
gramme and cross-divisional co-operation.

94
EXPECTED DEVELOPMENTS
of the future economic position
Consolidated EBIT of 3.4billion to 3.7billion expected
The Board of Management expects consolidated EBIT to reach between 3.4billion and
3.7billion in financial year 2016. The Post - eCommerce - Parcel division is likely to
contribute more than 1.3billion to this figure. Compared with the previous year, we
expect a significant improvement in overall earnings to between 2.45billion and
2.75billion in the DHL divisions. All of the DHL divisions are expected to contribute to
the increase. Whereas earnings in the Express division are likely to continue rising
steadily, a significant improvement is expected for Global Forwarding, Freight and
Supply Chain now that the expenses incurred in connection with the transformation
process will no longer arise. The Corporate Center/Other result is projected to remain
at around 0.35billion. In line with the projected growth in EBIT, we expect that EAC
will also grow substantially in 2016. Free cash flow is again expected to more than cover
the dividend payment for financial year 2015 projected to be made in May2016.
Forecast period
Outlook generally refers to 2016
The information contained in the report on expected developments generally refers to
financial year 2016. However, in some instances we have chosen to extend the scope.
Future organisation
No material changes to the organisational structure planned
No material changes to the Groups organisational structure are planned for financial
year 2016.
Future economic parameters

Uncertain outlook for the global economy
The global economy is expected to see a slight acceleration in 2016. However, the outlook
is unusually precarious. The economic upturn in the industrial countries is likely to
become somewhat stronger, aided by low oil prices and expansionary monetary policies.
Higher growth rates are also expected for the emerging markets, assuming the severe
recessions being experienced by some of the major threshold economies come to an end.
However, the situation will remain problematic for countries dependent on crude oil
exports in particular. In addition, there are a number of political and structural risks
whose occurrence could ultimately impact the economies of the industrial countries.

Group Management Report Expected Developments Overall Board of Management assessment of the future
economic position Forecast period Future organisation Future economic parameters 95
Global economy: growth forecast

A.80
%
2015 2016
World trade volumes 2.6 3.4
Real gross domestic product

World 3.1 3.4
Industrial countries 1.9 2.1
Emerging markets 4.0 4.3
Central and Eastern Europe 3.4 3.1
CIS countries 2.8 0.0
Emerging markets in Asia 6.6 6.3
Middle East and North Africa 2.5 3.6
Latin America and the Caribbean 0.3 0.3
Sub-Saharan Africa 3.5 4.0
Source: International Monetary Fund (IMF) World Economic Outlook, January2016 update.
Growth rates calculated on the basis ofpurchasing power parity.
The Chinese economy is likely to remain muted. No major momentum is expected from
the export sector. The structural changes associated with transitioning to a greater focus
upon growing the domestic economy are proving a long-term challenge for the govern-
ment. GDP growth is expected to soften notably (IMF: 6.3%; OECD: 6.5%). The Japanese
economy is likely to expand at a cautious pace, growing somewhat but at a low level
(IMF:1.0%, OECD: 1.0%; IHS: 1.0%).
In the United States, private consumption will benefit from a significant drop in the
unemployment rate and lower energy prices. By contrast, exports will suffer from the
weak global economic trend and the strong US dollar. All in all, GDP may increase
slightly more in 2016 than in the previous year (IMF: 2.6%; OECD: 2.5%; IHS: 2.4%).
In the euro zone, the economic recovery is expected to accelerate slightly. Private
consumption will see solid growth thanks to low energy prices and rising employment.
A significant increase in imports is likely to be offset by a similar expansion in exports,
which will benefit from the weak euro. GDP is likely to see somewhat stronger growth
on the whole (IMF: 1.7%; ECB: 1.7%; IHS: 1.7%).
Early indicators suggest that the German economy will continue to grow. Private
consumption and state spending will again rise notably. Momentum is also expected to
come from corporate investment and residential construction spending. Whilst exports
are likely to benefit from the weak euro, the muted world economy will hinder growth.
Growth for 2016 as a whole is expected to resemble that of the prior year (IMF: 1.7%;
Sachverstndigenrat 1.6%; IHS: 1.9%).
Crude oil listings are more likely to rise than fall from the current low level. However,
the substantial reserves stockpiled in 2015 should prevent any sharp upward movement
in the price of oil.
The ECB will very probably maintain its key interest rate at the current level, al-
though it might lower the rate even further if the euro zone economy weakens. By
contrast, the US Federal Reserve is expected to gradually raise its key interest rate over
the course of the year, which could moderately increase capital market interest rates.

96
World trade grows moderately

For 2016 we expect the global trade flows relevant to us air and ocean freight shipped
in containers, excluding liquids and bulky goods to increase slightly in all regions. All
in all, we expect to see growth of 3.8%.
Parcel market expected to see sustained growth

The market for paper-based mail communication continues to decline in Germany,
although more moderately than in other European countries. Physical mail volumes are
decreasing, primarily because people are communicating digitally to an increasing
e xtent. With E-POST, we have developed a portfolio of digital products that are gaining
traction in the German market. At the beginning of 2016, we raised the price of a do-
mestic standard letter to 0.70. Compared with the letter postage prices in other coun-
tries, our price is almost at an average level.
The German advertising market is likely to continue to see moderate revenue growth
in 2016. Advertising budgets will continue to shift towards online media. The trend
towards automated dialogue marketing campaigns will remain unchanged. In the mar-
ket for paper-based advertising, we intend to consolidate our position by expanding our
portfolio and ensuring the digital connectivity of our products.
The parcel market will continue to grow in Germany, the rest of Europe and the
world, as will cross-border services. We shall drive this development with our solutions
for parcel shipping and receipt as well as the associated infrastructure for selected new
markets. We plan to strengthen our market position by adding new e-commerce seg-
ments, such as food logistics, and by continually expanding our infrastructure. This will
also have a positive impact on the international mail business a market that is likely
to see slight growth, particularly due to increasing merchandise shipping.
International express business to remain stable

Experience shows that growth in the international express market is highly dependent
upon the economy. Due to the fact that the volume trend in our international express
business was significantly more positive than that of our competitors, we expect that the
express market will remain stable in 2016.
By implementing initiatives to increase profitability and quality, we intend to con-
tinue improving our earnings. We are confident that we shall remain on course for
Brands, page 83 growth and defend our leading market position. Our global DHL brand campaign and logistics
partnerships will also contribute to this.
Market trends in freight forwarding business likely to continue

In 2016, we anticipate developments in the air freight market to follow a similar trend
to that of the reporting year. In light of the fact that fuel prices remain low, freight
carriers are likely to expand capacities with new wide-body passenger planes and add
itional cargo aircraft, especially to smaller destinations. The most important drivers of
demand will be growth in the Chinese consumer market and transports of perishable
food products.
We anticipate moderate growth in the ocean freight market, in which market players
will continue to face surplus capacities and low but stable demand on the most import
ant trade lanes.
Aided by low oil prices, the European road transport market is also likely to see
moderate development in 2016 similar to that of the reporting year.

Group Management Report Expected Developments Future economic parameters Revenue and earnings forecast
Expected financial position 97
Contract logistics market continues to grow

The trend towards outsourcing warehousing and distribution as well as the demand for
value-added logistics services continue. For this reason, projections indicate that the
market for contract logistics will continue to experience stable growth of around 6%.
Many companies prefer to outsource their logistics due to high cost pressure and increas-
ingly complex supply chains. Demand for supply chain services is expected to see par-
ticularly strong growth in rapidly growing countries such as India, where we benefit from
a strong market position. Although the global economic environment remains uncertain,
we are well positioned in the Supply Chain division to deliver sustained growth.
Revenue and earnings forecast

Consolidated EBIT of 3.4billion to 3.7billion expected
We expect the global economy to continue to experience regional variations in 2016 and
to grow only moderately on the whole. The global trading volumes relevant to our busi-
ness are likely to perform similarly. Revenue performance is anticipated to reflect our
strategic focus on business driven by e-commerce and on emerging economies evidenc-
ing strong structural growth. After the transformation costs incurred in the reporting
year, we expect a substantial rise in earnings in 2016, especially in the DHL divisions.
Against this backdrop, we expect consolidated EBIT to reach between 3.4billion
and 3.7billion in financial year 2016. The Post - eCommerce - Parcel division is likely
to contribute more than 1.3billion to this figure. Compared with the previous year, we
expect a significant improvement in overall earnings to between 2.45billion and
2.75billion in the DHL divisions. All of the DHL divisions are expected to contribute to
the increase. Whereas earnings in the Express division are likely to continue rising
steadily, a significant improvement is expected for Global Forwarding, Freight and
Supply Chain now that the charges incurred in connection with the transformation
process will no longer arise. The Corporate Center/Other result is projected to remain
at around 0.35billion.
In line with our Group strategy, we plan to focus upon organic growth and antici-
pate only a few very selective acquisitions in 2016, as in the previous year.
Our finance strategy continues to call for a payout of 40% to 60% of net profits as
dividends as a general rule. At the Annual General Meeting on 18May2016, we intend
to propose to the shareholders that a dividend per share of 0.85 be paid for financial
year 2015 (previous year: 0.85).
Expected financial position

No change in the Groups credit rating
In light of the earnings forecast for 2016, we expect the FFO to debt indicator to remain
stable on the whole and do not expect the rating agencies to change our credit rating
from the present level.
Liquidity to remain solid

We anticipate a deterioration in our liquidity in the first half of 2016 as a result of the
annual pension prepayment due to Bundesanstalt fr Post und Telekommunikation as

98
well as the dividend payment for financial year 2015 in May2016. However, our oper-
ating liquidity situation will improve again significantly towards the end of the year due
to the upturn in business that is normal in the second half.
Capital expenditure of around 2.2billion expected

In 2016, we plan to increase capital expenditure to around 2.2billion in support of our
strategic objectives, the focus of which will be similar to that of previous years.
In the Post - eCommerce - Parcel division, we shall expand our domestic and inter-
national parcel network, improve IT and offer new delivery options. In the Express
division, we shall continue to invest in our global and regional hubs predominantly in
Europe. In 2016 we shall invest in our IT landscape in the Global Forwarding, Freight
division. In the Supply Chain division, capital expenditure is to provide selective support
to the planned expansion of our business. Cross-divisionally we shall focus upon invest-
ments in vehicles and IT.
Development of further indicators relevant

for internal management
EAC increases significantly
In line with the projected growth in EBIT, we expect that EAC will also grow substantially
in 2016. Divisional EAC will be affected by the same influences as detailed in the EBIT
outlook. However, as our investing activities continue and the net asset base increases
as a result, the rise in EBIT after asset charge may fall slightly short of EBIT growth. Free
cash flow is expected to again more than cover the dividend payment for financial year
2015 projected to be made in May2016.
Employee Opinion Survey results again positive

We intend to keep up the positive results that our Employee Opinion Survey achieved
in the reporting year. For 2016, we expect to see an increase to 74% in the approval
rating for the key performance indicator Active Leadership based upon the question-
naire that was developed further during the reporting year.
Further improve greenhouse gas efficiency

We expect the Group to further improve its carbon efficiency. Our CEX score should
increase by one index point during financial year 2016.
This Annual Report contains forward-looking statements that relate to the business, financial performance and results of operations
of Deutsche Post AG. Forward-looking statements are not historical facts and may be identified by words such as believes,
expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, 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 for-
ward-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.

B
CORPORATE
GOVERNANCE
99 126
B CORPORATE GOVERNANCE
B
101 REPORT OF THE SUPERVISORY BOARD
105 SUPERVISORY BOARD
105 Members of the Supervisory Board
105 Committees of the Supervisory Board
106 BOARD OF MANAGEMENT

108 MANDATES
108 Mandates held by the Board of Management
108 Mandates held by the Supervisory Board
109 CORPORATE GOVERNANCE REPORT

115 Remuneration report
Corporate Governance Report of the Supervisory Board
101
REPORT OF THE SUPERVISORY BOARD
WULF VON SCHIMMELMANN

Chairman
DEAR SHAREHOLDERS,
In financial year 2015, Deutsche Post DHL Groups Strategy 2020: Focus. Connect. Grow. paved the way
for the companys long-term success in order to further develop its position as a world leader in logistics.
The Supervisory Board concentrated on the implementation of Strategy 2020 and on the current
results in the context of the global economic situation. The Board of Management provided the Super
visory Board with information about the proposed business policy, planning, the profitability of the
company and Group, performance as well as key business transactions in a timely manner. The Chairman
of the Supervisory Board was also kept abreast of developments between meetings. Measures requiring
the consent of the Supervisory Board were prepared in advance by the relevant committees. All members
attended more than half of the meetings of the plenary and committees to which they belong. The over-
all attendance rate exceeded 94%. Individual attendance figures can be found on page 112.
Main topics discussed in the plenary meeting

The Supervisory Board met for eight plenary meetings in total, five in the first half of the year and three
in the second half.
We held an extraordinary Supervisory Board meeting on 11February2015 to discuss strategy in the
Post - eCommerce - Parcel division.
The annual and consolidated financial statements and the management reports for 2014 were dis-
cussed in detail and approved at the financial statements meeting on 10March2015. The meeting was
also attended by the auditors. After a thorough review, we endorsed the Board of Managements proposal
for the appropriation of the net retained profit for financial year 2014. The Supervisory Board also
approved the renewal of Ken Allens mandate and contract for a further five years. The Board of Manage-
ment provided a detailed report on, amongst other things, the impact of the Global Forwarding trans-
formation programme within the division and the Group and the associated challenges. The report was
followed by a discussion. The findings of the efficiency review examining the work of the Supervisory

102
Board were presented at the same meeting, as were the Supervisory Boards proposed resolutions for the
2015 Annual General Meeting (AGM). All of the resolutions proposed were adopted with clear majorities
at the AGM on 27May2015.
On 27April2015, we held an extraordinary Supervisory Board meeting to accept Roger Crooks
resignation from the Board of Management. Until a new board member is appointed for the Global
Forwarding, Freight division, CEO DrFrank Appel has agreed to take over his tasks in a dual role.
The sale of our shares in Sinotrans Ltd. was approved using the written procedure on 18May2015.
Immediately after the Deutsche Post AG AGM on 27May2015, the Supervisory Board re-appointed
Roland Oetker as a member of the Executive Committee, Personnel Committee and Mediation Com
mittee. As a member of the Executive Committee, Mr Oetker is also automatically a member of the
Nomination Committee. Details of the current committee members can be found on page 105. The
Supervisory Board also discussed the Groups pension obligations.
The Supervisory Board meeting on 23June2015 included an in-depth discussion of developments
in the Global Forwarding business unit and the status of the transformation programme. The meeting
also considered whether Board of Management remuneration was appropriate. Independent experts have
reviewed the remuneration system and remuneration paid to individuals and have confirmed that the
system is suitable and consistent with market rates.
The annual closed Supervisory Board meeting was held in September. Internal and customer
managers gave presentations on selected topics. Discussions with the Board of Management focused
onthe progress made in implementing Strategy 2020 and future challenges.
In the Supervisory Board meeting on 14September2015, we discussed the gender quotas for the
Supervisory Board and Board of Management. We have set a target ratio of 1:7 for women on the Board
of Management, to be achieved by the end of the 2018 AGM, after which the target will rise to 2:8 by the
end of the Annual General Meeting in 2021. The deadline for achieving the first target is 30June2017.
In the extraordinary Supervisory Board meeting on 28October2015, the transformation programme
and the future course for the business-centric IT renewal plan in the Global Forwarding business unit
were examined.
On 9December, at the last meeting of the Supervisory Board in 2015, we approved the 2016 business
plan after extensive discussions and set the Board of Managements performance targets for 2016. In
addition, a share capital increase was resolved upon for the purpose of financing a share buy-back to
settle share-based payments due to executives in 2016. We also examined the new recommendations of
the German Corporate Governance Code (DCGK). We expanded the targets for the composition of the
Supervisory Board to include the general principle that members should not serve more than three full
terms of office. We confirmed that we have complied with the recommendations of the Government
Commission as amended on 24June2014 since issuance of the Declaration of Conformity in Decem-
ber2014 and intend to comply with all recommendations of the DCGK as amended on 5May2015 in the
future. We also had an in-depth discussion again on business developments in the Global Forwarding,
Freight division.
Careful preparatory work by the committees

The Supervisory Board committees prepared thoroughly for plenary meeting discussions and decisions,
thus ensuring informed consultations in these meetings.
The Executive Committee met five times during the year under review. Regular agenda items included
matters regarding the Board of Management and preparations for the Supervisory Board meetings.
Detailed discussions were held on the subject of Roger Crooks resignation from the Board of Manage-
ment, whether Board of Management remuneration was appropriate, and the gender quotas for the
Supervisory Board and Board of Management.

Corporate Governance Report of the Supervisory Board
103
The Personnel Committee met on four occasions. Items for discussion included increasing the num-
ber of women in executive positions, the strategic priorities for Human Resources, personnel develop-
ment, enhancing the Group-wide Certified initiative, which promotes employee commitment and
changes in corporate culture, and the annual Employee Opinion Survey.
The Finance and Audit Committee met seven times. Both Stefan Schulte, Chair of the Finance and
Audit Committee, and Simone Menne, a member of the Finance and Audit Committee, have the account-
ing and auditing expertise required under the Aktiengesetz (AktG German stock corporation act). At
the March meeting, the committee examined the annual and consolidated financial statements for 2014
and recommended that the Supervisory Board approve the statements. The auditors attended the meeting
and gave a detailed presentation on their findings regarding the key audit priorities for 2014 as defined
by the Committee as well as making specific recommendations based upon their findings. The March
meeting also adopted the resolutions proposed to the Supervisory Board for inclusion on the agenda of
the AGM. Key Group risk management factors were also examined during the meeting as planned. Fol-
lowing the AGM, the Finance and Audit Committee engaged the auditors to audit the 2015 annual and
consolidated financial statements and the interim financial report for the first half of the year. The Com-
mittee also defined the key audit priorities. The Committee discussed the reviewed quarterly and half-year
interim reports together with the Board of Management and the auditors prior to publication. The May
meeting concentrated on the Groups pension obligations. On 17June2015, the Finance and Audit
Committee discussed the status of the transformation programme in the Global Forwarding, Freight
division as well as the findings of internal audits. In the meeting on 8September2015, the Finance and
Audit Committee examined the internal control and risk management system. The Chief Compliance
Officer also presented a detailed report on compliance, which focused primarily upon enhancing
compliance organisation and management. On 3December2015, the Finance and Audit Committee
meeting concentrated on the Group business plan for 2016 and a share capital increase in order to finance
a share buy-back to settle share-based payments due to executives in 2016. The Committee recommended
that the Supervisory Board approve the proposals. The Committee discussed the Groups performance
and the internal control and risk management system at regular intervals during the year.
The Strategy Committee met five times in 2015. In addition to the sale of the companys shares in
Sinotrans Ltd., the Committee discussed the business units strategic positions in their respective market
segments and the implementation of Strategy 2020. The Committee focussed upon the performance
of the Global Forwarding business unit, the associated business-centric IT renewal and the performance
of the eCommerce - Parcel business unit.
The Nomination Committee met once to discuss nominations for the 2015 AGM and approve the
recommendation to the Supervisory Board to re-elect Roland Oetker as a member of the Supervisory
Board.
The Mediation Committee formed pursuant to section 27 (3) of the Mitbestimmungsgesetz (German
Co-determination Act) did not meet in the year under review.
The chairs of the committees reported on the committees deliberations in the subsequent Supervisory
Board meeting.
Composition of the Board of Management and Supervisory Board

The members of the Supervisory Board remained unchanged in 2015. Roland Oetker was re-elected as a
member of the Supervisory Board at the AGM on 27May2015. Mr Oetkers considerable experience and
expertise mean that the Supervisory Board members not only offer substantial industry-specific experience
but also extensive corporate management experience. Details of the current members of the Supervisory
Board committees can be found on page 105. On 27April2015, Roger Crook resigned as the Board Mem-
ber for Global Forwarding, Freight. Until the appointment of a new board member for the Global F
orwarding,
Freight division, CEO Frank Appel has agreed to take over the corresponding tasks in a dual role.

104
Managing conflicts of interest

None of the Supervisory Board members hold positions on the governing bodies of, or provide consult
ancy services to, the Groups main competitors. The Supervisory Board has not been informed of any
conflicts of interest affecting individual members during the year under review.
Company in compliance with all DCGK recommendations

In December2015, the Board of Management and the Supervisory Board issued an unqualified Declar
ation of Conformity pursuant to section 161 of the AktG, which was also published on the companys
website. The declarations from previous years are also available on the website. In financial year 2015,
Deutsche Post AG complied with all recommendations of the Government Commission for the DCGK, as
amended on 24June2014. We also intend to continue to comply with all recommendations of the DCGK
as amended on 5May2015, together with all the suggestions except broadcasting the full AGM on the
internet. Further information regarding corporate governance within the company and the remuneration
report can be found in the Corporate Governance Report (page 109ff.).
2015 annual and consolidated financial statements audited

The auditors appointed by the AGM, PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprfungs-
gesellschaft (PwC), Dsseldorf, conducted an audit of the annual and consolidated financial statements
for financial year 2015, including the respective management reports, and issued unqualified audit opinions.
PwC also reviewed the quarterly financial reports and the interim report for the first half of the year.
Following a detailed preliminary assessment by the Finance and Audit Committee, the Supervisory
Board reviewed the 2015 annual and consolidated financial statements and the management reports,
including the appropriation of the net retained profit as proposed by the Board of Management, at the
financial statements meeting held on 8March2016. All Supervisory Board members received copies of
the annual and consolidated financial statements, auditors reports and the Board of Managements pro-
posal for the appropriation of the net retained profit well in advance of the financial statements meeting.
The documents were discussed in detail with the Board of Management in the presence of the auditors.
The auditors reported on the audit findings and also took questions and provided additional information.
The Supervisory Board concurred with the results of the audit and approved the annual and consolidated
financial statements for financial year 2015, as recommended by the Finance and Audit Committee. No
objections were raised on the basis of the final outcome of the examination by the Supervisory Board and
the Finance and Audit Committee of the annual and consolidated financial statements, the management
reports and the proposal for the appropriation of the net retained profit. The Supervisory Board endorsed
the Board of Managements proposal for the appropriation of the net retained profit and the payment of
a dividend of 0.85 per share.
We would like to thank the Board of Management and all employees for their genuine commitment
and all their hard work. Their efforts in 2015 have helped us to advance the implementation of Strategy
2020.
Bonn, 8March2016
The Supervisory Board
Wulf von Schimmelmann

Chairman

Corporate Governance REPORT OF THE SUPERVISORY BOARD SUPERVISORY BOARD
Members of the Supervisory Board Committees of the Supervisory Board 105
SUPERVISORY BOARD
Members of the Supervisory Board Committees of the Supervisory Board
B.01 B.02
Shareholder representatives Employee representatives Executive Committee

Prof.Dr Wulf von Schimmel- Andrea Kocsis (Deputy Chair) Prof.Dr Wulf von Schimmelmann
mann (Chair) Deputy Chair of ver.di National (Chair)
Former CEO of Deutsche Executive Board and Head of Andrea Kocsis (Deputy Chair)
PostbankAG Postal Services, Forwarding
Companies and Logistics on the Rolf Bauermeister
Werner Gatzer ver.di National Executive Board Werner Gatzer
State Secretary, Federal Ministry
of Finance Rolf Bauermeister Roland Oetker
Head of Postal Services, Stefanie Weckesser
Prof.Dr Henning Kagermann Co-determination and Youth
Former CEO of SAP AG andHead of National Postal Personnel Committee
Thomas Kunz Services Group at ver.di national
administration Andrea Kocsis (Chair)
CEO of Danone Dairy, member
ofthe Executive Committee Prof.Dr Wulf von Schimmelmann
Jrg von Dosky
ofDanone S.A., France (Deputy Chair)
Chair of the Group and Company
(until31March2015) Executive Representation Thomas Koczelnik
Independent entrepreneur, Committee, Deutsche Post AG Roland Oetker
formermember of the Executive
Board, Danone S.A. France Thomas Koczelnik
Chair of the Group Works Council, Finance and Audit Committee
(since1April2015)
Deutsche Post AG Dr Stefan Schulte (Chair)
Simone Menne
Member of the Executive Board, Anke Kufalt Stephan Teuscher (Deputy Chair)
Deutsche Lufthansa AG Chair of the Works Council, Werner Gatzer
DHLGlobal Forwarding GmbH,
Roland Oetker Hamburg Thomas Koczelnik
Managing Partner, ROI Simone Menne
Verwaltungsgesellschaft mbH Andreas Schdler
Chair of the Central Works Helga Thiel
Dr Ulrich Schrder Council, Deutsche Post AG
CEO of KfW Bankengruppe (until31December2015) Strategy Committee
Dr Stefan Schulte Sabine Schielmann Prof.Dr Wulf von Schimmelmann
Chair of the Executive Board Member of the Executive Board (Chair)
ofFraport AG ofthe Central Works Council, Andrea Kocsis (Deputy Chair)
Deutsche Post AG
Elmar Toime Rolf Bauermeister
Managing Director, E Toime Stephan Teuscher Prof.Dr Henning Kagermann
Consulting Ltd. Head of Wage, Civil Servant
andSocial Policies in the Postal Thomas Koczelnik
Prof.Dr-Ing.Katja Windt Dr Ulrich Schrder
Services, Forwarding Companies
Bernd Rogge professorship of
and Logistics department,
Global Production Logistics
ver.dinational administration Nomination Committee
President/member of the
Executive Board of Jacobs Helga Thiel Prof.Dr Wulf von Schimmelmann
University Bremen gGmbH Deputy Chair of the Central Works (Chair)
Council, Deutsche Post AG
Werner Gatzer
Stefanie Weckesser Roland Oetker
Deputy Chair of the Works
Council, Deutsche Post AG,
Mediation Committee
MAILBranch, Augsburg
(pursuantto section 27 (3) of the
German Co-determination Act)
Prof.Dr Wulf von Schimmelmann
(Chair)
Andrea Kocsis (Deputy Chair)
Rolf Bauermeister
Roland Oetker

106
BOARD OF MANAGEMENT
DRFRANK APPEL
Chief Executive Officer
(Frank Appel is also responsible
for Global Forwarding, Freight
until further notice.)
Born in 1961
Member since November 2002
CEO since February 2008
Appointed until October 2017
LAWRENCE ROSEN
Finance, Global Business Services
Born in 1957
Member since September 2009
Appointed until August 2017
MELANIE KREIS
Human Resources
Born in 1971
Member since October 2014
Appointed until October 2017
Left the company during the reporting year:

Roger Crook
Born in 1957
Member from March 2011 until 27 April 2015

Corporate Governance BOARD OF MANAGEMENT
107
JOHN GILBERT
Supply Chain
Born in 1963
Member since March 2014
Appointed until March 2017
JRGEN GERDES
Born in 1964
Member since July 2007
Appointed until June 2020
KEN ALLEN
Express
Born in 1955
Member since February 2009
Appointed until July 2020

108
MANDATES
Mandates held by the Board of Management
B.03
Membership of supervisory boards Membership

required by law of comparable bodies
Lawrence Rosen Ken Allen Roger Crook (until 27April2015)
Deutsche Postbank AG DHL-Sinotrans International Air Courier DHL Global Forwarding Management
(until 8August2015) Ltd, China (Board of Directors)1 (Asia Pacific) Pte Ltd, Singapore
Lanxess AG (since 13May2015) (BoardofDirectors)1
Lanxess Deutschland GmbH Lawrence Rosen
(since 13May2015) Qiagen N.V. (Supervisory Board)
1
Group mandate.
Mandates held by the Supervisory Board

B.04
Shareholder representatives Employee representatives
Membership of supervisory boards Membership Membership of supervisory

required by law of comparable bodies boards required by law
Prof.Dr Wulf von Schimmelmann Prof.Dr Wulf von Schimmelmann Rolf Bauermeister
(Chair) (Chair) Deutsche Postbank AG
Allianz Deutschland AG Accenture Corp., Ireland
(BoardofDirectors) Jrg von Dosky
Maxingvest AG PSD Bank Mnchen eG
Thomson Reuters Corp., Canada (since22June2015)
Werner Gatzer (Boardof Directors)
Bundesdruckerei GmbH Andreas Schdler
Flughafen Berlin Brandenburg GmbH Simone Menne PSD Bank Kln eG (Chair)
Frankfurt Stock Exchange (Exchange
PP Deutschland AG (Chair) Council) Stephan Teuscher
Prof.Dr Henning Kagermann Miles&More GmbH (Advisory Council, DHL Hub Leipzig GmbH
BMW AG Chair)1 (DeputyChair)
Deutsche Bank AG Roland Oetker Helga Thiel
Franz Haniel&Cie. GmbH Rheinisch-Bergische Verlagsgesellschaft PSD Bank Kln eG (Deputy Chair)
(until25April2015) mbH (Supervisory Board)
Mnchener Rckversicherungs- Dr Ulrich Schrder
Gesellschaft AG DEG Deutsche Investitions- und
Simone Menne Entwicklungsgesellschaft mbH
Delvag Luftfahrtversicherungs-AG, (Supervisory Board)
Germany (Chair)1 Marguerite 2020: European Fund
LSG Lufthansa Service Holding AG, forEnergy, Climate Change and
Germany (Chair)1 Infrastructure, Luxembourg (Supervisory
Board)
Lufthansa Cargo AG, Germany1
Lufthansa Systems AG, Germany (Chair)1 Elmar Toime
(until 6March 2015) Postea Inc., USA (Non-Executive
Chairman)
Lufthansa Technik AG, Germany1
Blackbay Ltd., United Kingdom
BMW AG (since 13May2015)
(Non-Executive Director)
Dr Ulrich Schrder Qatar Postal Services Company, Qatar
Deutsche Telekom AG (Non-Executive Director)
Prof.Dr-Ing.Katja Windt
Fraport AG
1
Group mandates, Deutsche Lufthansa.

Corporate Governance MANDATES Mandates held by the Board of Management
Mandates held by the Supervisory Board Corporate Governance Report 109
CORPORATE GOVERNANCE REPORT

Annual Corporate Governance Statement pursuant to section 289a
oftheHandelsgesetzbuch (HGB German Commercial Code)
This Annual Corporate Governance Statement contains information about the main components dpdhl.com/en/investors
of Deutsche Post DHL Groups corporate governance structure. These include the
Declaration of Conformity by the Board of Management and the Supervisory Board,
relevant corporate governance practices that exceed legal requirements, the working
methods of the Board of Management and the Supervisory Board, the composition and
working methods of the committees, the percentage of women on the Supervisory
Board, Board of Management and in the top two executive tiers, and the composition
targets for the Supervisory Board.
Company in compliance with all recommendations of the German Corporate

GovernanceCode
In December2015, the Board of Management and the Supervisory Board once again
issued an unqualified Declaration of Conformity pursuant to section 161 of the AktG,
which reads as follows:
The Board of Management and the Supervisory Board of Deutsche Post AG declare
that the recommendations of the Government Commission German Corporate Gov-
ernance Code in the version dated 24June2014 have been complied with since issuance
of the Declaration of Conformity in December2014 and that all recommendations of
the code in the version dated 5May2015 shall be complied with in the future.
We also intend to implement the suggestions made in the code, with one exception:
the Annual General Meeting will only be broadcast on the internet up to the end of the
Chief Executive Officers address.
Specific corporate governance practices

Our guiding principle is respect and results: we seek to encourage co-operation and
expect our corporate governance to rise to the challenge of achieving first-class results
every day whilst also considering the needs of our employees, customers and investors.
We see corporate responsibility as part of our Group strategy and we concentrate
upon three focus areas: responsible business practice, corporate citizenship as well as
environmental management and shared value. We systematically factor our stakeholders
expectations and needs into strategic decisions. A materiality analysis has identified key
issues relevant to Deutsche Post DHL Group from the areas of governance, employees
and the environment. Targets and performance indicators have been defined for each of
these topics. We successfully maintained our high scores in the best-known sustainabil-
ity ratings during the year under review.
Response levels for our annual Group-wide Employee Opinion Survey were down slightly Employees, page 72
year-on-year at 73% (2014: 77%). We made further improvements to the survey in the
year under review. The survey results are now almost fully comparable with an external
standard which we are currently exceeding in five categories. Scores for the Active
Leadership and Employee Engagement categories stabilised at a high level.

110
Code of Conduct, diversity and compliance management

dpdhl.com/en Our Code of Conduct, which was first issued in 2006, is firmly established in our corporate
culture and is applicable to all regions and divisions. The Code of Conduct is based upon
the principles set out in the Universal Declaration of Human Rights and the United
Nations (UN) Global Compact. The code is consistent with recognised legal standards,
including the applicable anti-corruption legislation and agreements. The code of
Conduct and all other Group guidelines, together with regional guidelines and proced
ures, provide the framework for ethical and environmentally sound corporate conduct.
The guidelines serve as a clear point of reference for all employees, informing them of
our values and principles. The code is available in 21 languages. Employees can attend
webinars to learn about the code.
The Code of Conduct also sets out our commitment to the health of our employees,
respect for human rights, the rejection of child and forced labour, and our position on
diversity and inclusion. The Corporate Diversity&Inclusion Statement issued in 2013
reflects our belief that diversity represents both a key factor for success and a distinct
competitive advantage. In the statement we also undertake to promote an inclusive
working environment and express our opposition to all forms of discrimination. Two
years ago we set up the Diversity Council as an internal forum where participants can
discuss the strategic direction, and the divisions differing requirements, of diversity
management. The Diversity Council met on two occasions during the year under review.
Members are also advocates for diversity within their divisions.
The international composition of the Board of Management already clearly reflects
the companys international activities. The Supervisory Board also supports the Groups
diversity strategy, placing particular emphasis on the target of increasing the number
of women on the Board of Management. The Supervisory Board sees efforts to increase
diversity as part of long-term succession planning, for which the Supervisory Board
and Board of Management are jointly responsible. In the opinion of the Supervisory
Board, the targeted increase in the number of women in executive positions is necessary
to ensure that, overall, more suitable female candidates are available for vacant pos
itions on the Board of Management. At 20.7%, the number of women in upper and
middle management around the world at Deutsche Post DHL Group increased year-on-
year as at 31December2015 (previous year: 19.3%). The figure for Group companies in
Germany was 20.6%.
Pursuant to the Gesetz fr die gleichberechtigte Teilhabe von Frauen und Mnnern
an Fhrungspositionen in der Privatwirtschaft und im ffentlichen Dienst (German law
on equal gender representation in executive positions in the public and private sector),
we additionally report on the targets the Board of Management and the Supervisory
Page 114 Board have set for Deutsche Post AG in the section on the Number of women on the Supervisory
Board, Board of Management and in executive positions at Deutsche Post AG . This presentation differs
from the one used to determine the proportion of women in executive positions at
Deutsche Post DHL Group.
We seek to maintain and improve the health and well-being of our employees, pri-
marily through preventative measures. As a responsible employer, we offer information
events and training. We also apply a range of health and safety measures. The new
Group-wide Deutsche Post DHL Occupational Health&Safety Policy has put the issue
more firmly in the spotlight.
Within Deutsche Post DHL Group, the Chief Compliance Officer is responsible for
the compliance management system and reports directly to the Chief Financial Officer.
The Chief Compliance Officer is supported by the Global Compliance Office, which

Corporate Governance Corporate Governance Report
111
establishes Group-wide compliance management standards and supports the imple-

mentation of related activities within the divisions. Each of the four operating divisions
has a Compliance Officer and a network of compliance managers, which are responsible
for implementing all compliance management activities. The divisional Compliance
Officers report regularly to the Board of Management member for their division and
maintain close contact with the Global Compliance Office. The divisional reports are
incorporated into the Chief Compliance Officers report to the Board of Management
and to the Finance and Audit Committee of the Supervisory Board.
The main compliance management activities within Deutsche Post DHL Group in-
clude creating a system for identifying potential compliance risks, devising suitable
training and communications measures, evaluating business partner compliance, inves-
tigating cases of misconduct and imposing sanctions. The main purpose of the com
pliance programme is to prevent cases of non-compliance. Group-wide communica-
tions ensure that all employees are aware of the relevance of compliance and provide
information about the relevant rules of conduct. Our compliance hotline is a key factor
in reporting breaches of the law or our guidelines. The hotline is available in around
150countries and assists employees in reporting potential breaches of the law or the
Code of Conduct within the company. The hotline also provides a structure for address-
ing and resolving such breaches. The insights gained from reported cases are used to
make on-going improvements to the compliance management system.
Working methods of the Board of Management and the Supervisory Board

As a German public limited company, Deutsche Post AG is legally required to use a dual
management system. The Board of Management is responsible for managing the company.
The Board of Management is appointed, overseen and advised by the Supervisory Board.
In addition to the board departments of the Chief Executive Officer (CEO), the Chief
Financial Officer (CFO) and the Board Member for Human Resources, the Board of Manage Members, page 106f.,
Mandates, page 108
ment also includes four operating divisions: Post - eCommerce - Parcel, Express, Global
Forwarding, Freight, and Supply Chain. Group management functions are centralised
in the Corporate Center. The Group Strategy provides a framework for the whole Group. Objectives and strategies, page33
The Boards rules of procedure lay down objectives for the basic internal structure,
management and co-operation within the Board of Management. Within this frame-
work, each Board member manages their department independently and informs the
rest of the Board about key developments at regular intervals. The Board of Management
as a whole decides on matters of particular significance for the company or the Group,
including all tasks that cannot be delegated and all decisions that have to be presented
to the Supervisory Board for approval. The entire Board of Management also decides
upon matters presented by one member of the Board of Management for decision by
the Board of Management as a whole.
When making decisions, members of the Board of Management may not act in their
own personal interest or exploit corporate business opportunities for their own benefit.
The Supervisory Board must be informed of any conflicts of interest without delay.
The Supervisory Board advises and oversees the Board of Management and also appoints Members, page 105,
Mandates, page 108,
the members of the Board of Management. The Supervisory Board has established rules Committees, page 105
of procedure that include the basic internal structure, a catalogue of Board of Management
transactions requiring Supervisory Board approval and rules for the Supervisory Board
committees. The Supervisory Board meets at least twice every six months in a calendar
year. Extraordinary Supervisory Board meetings are held whenever particular develop-
ments or measures need to be discussed or approved promptly. In financial year 2015,

112
the Supervisory Board met for eight plenary meetings, 22 committee meetings and one
Page 101ff. closed meeting, as described in the Report of the Supervisory Board. All members attended more
than half of the meetings of the Supervisory Board and the committees on which they
serve. The overall attendance rate remained high in the year under review, at over 94%.
Attendance at plenary and committee meetings by member

B.05
%
Supervisory Board member Attendance
Prof.DrWulf von Schimmelmann (Chair) 100
Andrea Kocsis (Deputy Chair) 95
Rolf Bauermeister 100
Jrg von Dosky 100
Werner Gatzer 86
Prof.DrHenning Kagermann 85
Thomas Koczelnik 100
Anke Kufalt 100
Thomas Kunz 75
Simone Menne 80
Roland Oetker 100
Andreas Schdler 100
Sabine Schielmann 100
DrUlrich Schrder 69
DrStefan Schulte 100
Stephan Teuscher 100
Helga Thiel 100
Elmar Toime 100
Stefanie Weckesser 100
Prof.Dr-Ing.Katja Windt 88
The Board of Management and the Supervisory Board engage in regular dialogue re-
garding the Groups financial position and performance, strategic initiatives, key busi-
ness transactions, the progress of acquisitions, compliance and compliance management,
risk exposure and risk management, and all material planning and related implemen-
tation issues. The Board of Management informs the Supervisory Board promptly and
in full about all issues of significance. The Chairman of the Supervisory Board and the
CEO maintain close contact and discuss current issues. The Chairman of the Supervisory
Board also has regular contact with other Board of Management members between
Supervisory Board meetings.
The Supervisory Board carries out an annual efficiency review of the work of the
Supervisory Board, which includes assessing co-operation with the Board of Manage-
ment. The efficiency review for financial year 2015 concluded that the Supervisory Board
had performed its monitoring and advisory duties efficiently and effectively.
All Supervisory Board decisions, particularly those concerning transactions that
require Supervisory Board approval, are discussed in detail in advance by the relevant
committees. Each Supervisory Board plenary meeting includes a detailed report on the
committees work and decisions taken.
None of the Supervisory Board members hold positions on the governing bodies
of, or provide consultancy services to, the Groups main competitors. The Supervisory
Board has not been informed of any conflicts of interest affecting individual members
during the year under review.

Corporate Governance Corporate Governance Report
113
Executive committees and Supervisory Board committees

Executive committees prepare the decisions to be made by the entire Board of Manage-
ment and take decisions on matters delegated to them. The duties of the executive
committees include preparing and/or approving investments and transactions in the
various divisions. The Deutsche Post Executive Committee is responsible for the Post -
eCommerce - Parcel division; the cross-divisional DHL Executive Committee is in
charge of the Express, Global Forwarding, Freight, and Supply Chain divisions; the
CC&GBS Executive Committee covers the Corporate Center (CC) and Global Business
Services (GBS). The CEO, the CFO and the Board Member for Human Resources have
permanent representation on the committees, whilst the Board members responsible
for the divisions are represented on the committees in matters relating to their divisions.
First and second-tier executives from the level immediately below the Board of Manage
ment also attend executive committee meetings that cover topics relevant to their field.
For example, Accounting&Controlling, Corporate Finance, Corporate Development
and Legal Services will be invited to take part in discussions on acquisitions. The
Deutsche Post Executive Committee and the DHL Executive Committee each meet at
least once a month; the CC&GBS Executive Committee usually meets every quarter.
Business review meetings also take place once a quarter. These meetings are part
of the strategic performance dialogue between the divisions, the CEO and the CFO. The
business review meetings discuss strategic initiatives, operational matters and the
budgetary situation of the divisions.
For details of the members of the Board of Management, see the sections on the
Board of Management and Mandates held by the Board of Management. Pages 106f. and 108
The Supervisory Board has formed six committees to ensure the efficient discharge
of its duties. In particular, these committees prepare the resolutions for the Supervisory
Board plenary meetings. The Supervisory Board delegates the final decisions on certain
topics to the individual committees.
The Executive Committees duties include arranging the appointment of members
of the Board of Management and determining the Board of Management remuneration
for approval by the Supervisory Board plenary meeting. The members of the Executive
Committee are Wulf von Schimmelmann (Chair), Andrea Kocsis (Deputy Chair), Rolf
Bauermeister, Werner Gatzer, Roland Oetker and Stefanie Weckesser.
The Finance and Audit Committee oversees the accounting process, the effective-
ness of the internal control system, the risk management and internal auditing systems,
and the audit of the financial statements. It examines corporate compliance issues and
discusses the half-yearly and quarterly financial reports with the Board of Management
before publication. Based upon its own preliminary assessment, the Committee submits
proposals for approval of the annual and consolidated financial statements by the Super
visory Board. The members of the Finance and Audit Committee are Stefan Schulte
(Chair), Stephan Teuscher (Deputy Chair), Werner Gatzer, Thomas Koczelnik, Simone
Menne and Helga Thiel. The Chair of the Finance and Audit Committee, Stefan Schulte,
is a financial expert as defined in sections 100 (5) and 107 (4) of the AktG.
The Personnel Committee discusses human resources principles for the Group. The
members of the Personnel Committee are Andrea Kocsis (Chair), Wulf von Schimmel-
mann (Deputy Chair), Thomas Koczelnik and Roland Oetker.
The Mediation Committee carries out the duties assigned to it pursuant to the Mit-
bestimmungsgesetz (MitbestG German Co-determination Act). The members of the
Mediation Committee are Wulf von Schimmelmann (Chair), Andrea Kocsis (Deputy
Chair), Rolf Bauermeister and Roland Oetker.

114
The Nomination Committee presents the shareholder representatives of the Super-

visory Board with recommendations for shareholder candidates for election to the
Supervisory Board at the AGM. The members of the Nomination Committee are Wulf
von Schimmelmann (Chair), Werner Gatzer and Roland Oetker.
The Strategy Committee prepares material for strategy discussions in the Super
visory Board and for resolutions on corporate acquisitions and disposals requiring ap-
proval by the plenary meeting of the Supervisory Board. The Committee also regularly
discusses the competitive position of the company and the individual divisions. The
members of the Strategy Committee are Wulf von Schimmelmann (Chair), Andrea
Kocsis (Deputy Chair), Rolf Bauermeister, Henning Kagermann, Thomas Koczelnik and
Ulrich Schrder.
Information about the work of the Supervisory Board and its committees in finan-
Page 101ff. cial year 2015 is also contained in the Report of the Supervisory Board. Details of the members
of the Supervisory Board and the composition of the Supervisory Board committees
Members, page 105, can be found in the sections on the Supervisory Board and Mandates held by the Supervisory Board.
Mandates, page 108
Number of women on the Supervisory Board, Board of Management andin

e xecutivepositions at Deutsche Post AG
Under the Gesetz fr die gleichberechtigte Teilhabe von Frauen und Mnnern an Fhrungs
positionen in der Privatwirtschaft und im ffentlichen Dienst, the Supervisory Board of
Deutsche Post AG is required to meet the statutory gender quota of 30%. The Super
visory Board is also obliged to set a target quota for the number of women on the Board
of Management, whilst the Board of Management is required to set a target quota for
women in the top two executive levels below the Board of Management. Deutsche Post AG
exceeds the target for the statutory quota for the Supervisory Board, as seven women
(35%) are members of the Supervisory Board. The Supervisory Board has set a target
quota of 1:7 for the number of women on the Board of Management, which applies
until the end of the Annual General Meeting in 2018, after which the target will increase
to 2:8 (25%) by the end of the AGM in 2021. The deadline for achieving the first target
quota for women on the Board of Management is 30June2017. The Board of Manage-
ment has set 19% at the first and 23% at the second management level as target quotas
for increasing the proportion of women below the Board of Management for the period
until 31December2016. Furthermore, on 30September2015 target quotas and dead-
lines for reaching them were set for the German subsidiaries affected by the law.
Targets for the composition of the Supervisory Board and qualifications required
The Supervisory Board set targets for its composition in 2010. Following an amendment
in December2015, a limit on the number of terms of office served was included. The
targets are now as follows:
1 Proposals by the Supervisory Board to the AGM for candidates to be elected as
Supervisory Board members must be made purely in the interests of the company.
Subject to this requirement, the Supervisory Board aims to ensure that the
independent Supervisory Board members as defined in number 5.4.2 of the DCGK
comprise at least 75% of the Supervisory Board and that at least 30% of the Super-
visory Board members are women.
2 The companys international activities are already adequately reflected in the compos
ition of the Supervisory Board. The Supervisory Board aims to maintain this and will
therefore, in future proposals to the AGM, consider candidates whose origin, education
or professional experience equip them with international knowledge and experience.

Corporate Governance Corporate Governance Report Remuneration report
115
3 Conflicts of interest affecting Supervisory Board members are an obstacle to pro-

viding independent and efficient advice to, and supervision of, the Board of Manage
ment. The Supervisory Board will decide how to deal with potential or actual con-
flicts of interest on a case-by-case basis, in accordance with the law and giving due
consideration to the DCGK.
4 In accordance with the age limit adopted by the Supervisory Board and laid down
in the rules of procedure for the Supervisory Board, proposals for the election of
Supervisory Board members must ensure that the term of office ends no later than
the close of the Annual General Meeting after the Supervisory Board member
reaches the age of 72. As a general rule, Supervisory Board members should not
serve more than three full terms of office.
The members of the Supervisory Board remained unchanged in 2015. The current com-
position of the Supervisory Board meets all these targets. Women currently make up
35% of Supervisory Board members, which is above the statutory quota for women
(30%). The number of independent members of the Supervisory Board also currently
exceeds the target. All Supervisory Board members are independent members as de-
fined by the DCGK. In light of the European Commissions recommendation on the
independence of non-executive or supervisory directors, taken in conjunction with
extensive protection against unwarranted dismissal and the anti-discrimination provi-
sions contained in the German Betriebsverfassungsgesetz (Work Constitution Act) and
Mitbestimmungsgesetz (Co-determination Act), employment by the company is assumed
to be consistent with the requirement for independence as set out in the code. The
largest shareholder in the company, KfW Bankengruppe, currently holds approximately
21% of the shares in Deutsche Post AG. There are therefore no controlling shareholders
as defined in the code with whom relationships might exist that could call into question
the Supervisory Boards independence. The international nature of the companys busi-
ness is also appropriately reflected in the extensive international experience of many
Supervisory Board members.
Remuneration report
The remuneration report also forms part of the Group Management Report.
Remuneration structure of the Group Board of Management in financial year 2015

The remuneration paid to individual Board of Management members for financial year
2015 was determined by the Supervisory Board, which held consultations to resolve on
the total remuneration to be paid to the individual members of the Board of Manage-
ment, including the main contractual elements. In so doing, it obtained advice from an
independent remuneration consultant.
The Board of Management remuneration reflects the size and global reach of the
company, its economic and financial situation and the roles and achievements of the
individual members. It is set to ensure competitiveness with comparable German and
international companies, thus incentivising the Board of Management members to
deliver maximum performance and achieve results.
The remuneration paid to the Board of Management for 2015 is in line with standard
market practice, appropriate to the tasks involved and designed to reward performance; it
comprises fixed (non-performance-related) elements and variable (performance-related)

116
elements, which include short, medium and long-term incentives. The remuneration as
a whole as well as its variable components have been capped.
Non-performance-related components are the annual base salary (fixed annual
remuneration), fringe benefits and pension commitments. The annual base salary is
paid in twelve equal monthly instalments retroactively at the end of each month. Fringe
benefits mainly comprise the use of company cars, supplements for insurance premiums
and special allowances and benefits for assignments outside the home country.
The variable remuneration paid to the Board of Management is almost entirely
medium and long-term based. More than half of the variable target remuneration con-
sists of a long-term incentive plan (LTIP) with a four-year calculation period; the rest is
made up of an annual bonus linked to the companys yearly profits, with 50% of the
annual bonus flowing into a medium-term component with a three-year calculation
period (deferral). Thus less than a quarter of the variable remuneration component is
paid out 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 basis of the companys perform
ance. The individual annual bonus amounts reflect the extent to which predefined tar-
gets are achieved, missed or exceeded. The maximum amount of the annual bonus may
not exceed 100% of the annual base salary.
The same criteria were used to calculate the amount of the annual bonus for the
reporting year as for the previous year. A key parameter for all Board of Management
members is the Groups EBIT after asset charge performance metric, including the asset
charge on goodwill before goodwill impairment (EAC). For the Board of Management
members in charge of the Post - eCommerce - Parcel, Express, Global Forwarding,
Freight and Supply Chain divisions, the EAC of their respective division is also a key
parameter. The Groups reported free cash flow is one of the targets applicable to all
members of the Board of Management. Furthermore, an employee-related target is
agreed with all Board of Management members based upon the annual Employee
Opinion Survey, as are additional targets.
Achievement of the upper targets for the financial year that have been agreed based
upon demanding objectives is rewarded with the maximum annual bonus. If the targets
specified for the financial year are only partially reached or completely missed, the
annual bonus will be paid on a pro-rata basis or not at all. The Supervisory Board may
also elect to award an appropriate special bonus for extraordinary achievement.
Even if the agreed targets are reached, the annual bonus is not paid out in full in a
single instalment. Instead, 50% of the annual bonus flows into a medium-term compo-
nent with a three-year calculation period (performance phase of one year, sustainability
phase of two years). That medium-term component will be paid out after expiry of the
sustainability phase subject to the condition that EAC an indicator of sustainability be
reached during the sustainability phase. Otherwise, payment of the medium-term com-
ponent is forfeited without compensation. This demerit system puts greater emphasis
on sustainable company development in determining Board of Management remuner-
ation and sets long-term incentives.
Stock appreciation rights (SARs) are granted as a long-term remuneration compo-
nent based upon the LTIP authorised by resolution of the Supervisory Board in 2006
(2006 LTIP).
Each SAR entitles the holder to receive a cash settlement equal to the difference
between the average closing price of Deutsche Post shares for the five trading days
preceding the exercise date and the exercise price of the SAR. In 2015, the members of
the Board of Management each made a personal financial investment consisting of 10%

117
of their annual base salary. The waiting period for the stock appreciation rights is four
years from the date on which they were granted. After expiration of the waiting period,
and provided an absolute or relative performance target has been achieved, some or all
of the SARs can be exercised for a period of two years. Any SARs not exercised during
the two-year period will expire.
To determine how many, if any, of the SARs granted can be exercised, the average
share price or the average index value for the reference period is compared with that of
the performance period. The reference period comprises the last 20 consecutive trading
days prior to the issue date. The performance period is the last 60 trading days before
the end of the waiting period. The average (closing) price is calculated as the average
closing price of Deutsche Post shares in Deutsche Brse AGs Xetra trading system.
A maximum of four out of every six SARs can be earned via the absolute performance
target, and a maximum of two via the relative performance target. If neither an absolute
nor a relative performance target is met by the end of the waiting period, the SARs
attributable to the related tranche will expire without replacement or compensation.
One SAR is earned each time the closing price of Deutsche Post shares exceeds the
issue price by at least 10, 15, 20 or 25%. The relative performance target is tied to the
performance of the shares in relation to the STOXX Europe 600 Index (SXXP, ISIN
EU0009658202). It is met if the share price equals the index performance or if it out-
performs the index by at least 10%.
The proceeds from stock appreciation rights are limited to a maximum amount. The
individual amount limits for the 2015 tranche can be seen in tables B.06 and B.07. The
remuneration from stock appreciation rights may be limited by the Supervisory Board
in the event of extraordinary circumstances.
Provisions to cap severance payments pursuant to the Corporate Governance Code

recommendation, change-of-control provisions and post-contractual non-compete clauses
In accordance with the recommendation of the German Corporate Governance Code
(DCGK), Board of Management contracts contain a provision stipulating that in the
event of premature termination of a Board of Management members contract, the sev-
erance payment may compensate no more than the remaining term of the contract. The
severance payment is limited to a maximum amount of two years remuneration includ-
ing fringe benefits (severance payment cap). The severance payment cap is calculated
exclusive of any special remuneration or the value of rights allocated from LTIPs.
In the event of a change in control, any member of the Board of Management is
entitled to resign from office for good cause within a period of six months following the
change in control, after giving three months notice by the end of a given month, and to
terminate their Board of Management contract (right to early termination).
The contractual provisions stipulate that a change in control exists if a shareholder
has acquired control within the meaning of section 29(2) of the Wertpapiererwerbs- und
bernahmegesetz (WpG German Securities Acquisition and Takeover Act) via pos-
session of at least 30% of the voting rights, including the voting rights attributable to
such shareholder by virtue of acting in concert with other shareholders as set forth in
section 30 of the WpG or if a control agreement has been concluded with the company
as a dependent entity in accordance with section 291 of the AktG and such agreement
has taken effect or if the company has merged with another legal entity outside of the
Group pursuant to section 2 of the Umwandlungsgesetz (UmwG German Reorganisa-
tion and Transformation Act), unless the value of such other legal entity, as determined
by the agreed conversion rate, is less than 50% of the value of the company.

118
In the event the right to early termination is exercised or a Board of Management

contract is terminated by mutual consent within nine months of the change in control,
the Board of Management member is entitled to payment to compensate the remaining
term of their Board of Management contract. Such payment is limited to 150% of the
severance payment cap pursuant to the DCGK recommendation. The amount of the
payment is reduced by 25% if the Board of Management member has not reached the
age of 60 upon leaving the company. If the remaining term of the Board of Management
contract is less than two years and the Board of Management member has not reached
the age of 62 upon leaving the company, the payment will correspond to the severance
payment cap. The same applies if a Board of Management contract expires prior to the
Board of Management members reaching the age of 62 because less than nine months
remained on the term of the contract at the time of the change in control and the con-
tract was not renewed.
Board of Management members are also subject to a non-compete clause, taking
effect on the cessation of their contracts. During the one-year non-compete period, for-
mer Board of Management members receive 100% of their last contractually stipulated
annual base salary on a pro-rata basis as compensation each month. Any other income
earned during the non-compete period is subtracted from the compensation paid. The
amount of the compensation payment itself is deducted from any severance payments
or pension payments. Prior to, or concurrent with, cessation of the Board of Management
contract, the company may declare its waiver of adherence to the non-compete clause.
In such a case, the company will be released from the obligation to pay compensation
due to a restraint on competition six months after receipt of such declaration.
Apart from the aforementioned arrangements, no member of the Board of Manage-
ment has been promised any further benefits after leaving the company.
Other provisions
Roger Crook resigned as a member of the companys Board of Management on
27April2015 and left the company at the expiry of 30April2015. He received a payment
in the amount of 4,288,643 to settle the claims arising from his employment agreement.
Amount of remuneration paid to members of the Group Board of Management

infinancialyear 2015
The remuneration paid to members of the Board of Management in financial year 2015
totalled 10.70million (previous year: 13.61million) in accordance with the applicable
international accounting standards. That amount comprised 7.05million in non-
performance-related components (previous year: 7.62million) and 3.65million in
paid-out performance-related components (previous year: 5.99million). An additional
1.07million of the performance-related component was transferred to the medium-
term component and will be paid out in 2018 subject to the condition that the required
EAC, an indicator of sustainability, be reached.
The members of the Board of Management were granted a total of 1,936,470 SARs
in financial year 2015 with a total value of 6.66million (previous year: 7.30million)
at the time of issue (1September2015). The total remuneration paid to Board of Manage
ment members is presented individually in the tables below. In addition to the applicable
accounting principles, the DCGK recommendations were also taken into account.
In accordance with the recommendations, the target remuneration tables (B.06
and B.07, or benefits granted in DCGK terminology) do not show any actual payments
of performance-based remuneration. By contrast with the payment amount stated, the

119
figures stated for the one-year variable remuneration and the portion of the one-year
variable 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 2015 or
for the previous year. In addition, the long-term remuneration (LTIP with a four-year
waiting period) granted in the reporting year or in the previous year is reported at the
fair value at the time granted. With respect to pension commitments, the pension ex-
pense, 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.
Target remuneration for the Board of Management members active as at 31December2015

B.06
DrFrank Appel Ken Allen

Chairman Express
2014 2015 Min.2015 Max.2015 2014 2015 Min.2015 Max.2015
a) Non-performance-related remuneration
Base salary 1,962,556 1,962,556 1,962,556 1,962,556 930,000 968,750 968,750 968,750
Fringe benefits 49,122 34,801 34,801 34,801 106,274 102,252 102,252 102,252
Total (lit.a) 2,011,678 1,997,357 1,997,357 1,997,357 1,036,274 1,071,002 1,071,002 1,071,002
b) Performance-related remuneration
One-year variable remuneration 785,022 785,022 0 981,278 372,000 387,500 0 484,375
Multi-year variable remuneration 2,747,605 2,747,597 0 5,887,668 1,302,026 1,364,020 0 4,390,375
LTIP with four-year waiting period 1,962,583 1,962,575 0 4,906,390 930,026 976,520 0 3,906,000
Deferral with three-year waiting period 785,022 785,022 0 981,278 372,000 387,500 0 484,375
Total (lit.a and b) 5,544,305 5,529,976 1,997,357 8,866,303 2,710,300 2,822,522 1,071,002 5,945,752
c) Pension expense (service cost) 802,179 1,094,399 1,094,399 1,094,399 321,620 321,537 321,537 321,537
Total DCGK remuneration (lit.a to c) 6,346,484 6,624,375 3,091,756 9,960,702 3,031,920 3,144,059 1,392,539 6,267,289
d) Variable cash remuneration pursuant to DRS 17

One-year variable remuneration (payment amount) 928,682 288,300 447,935 203,680
Payout from medium-term component 519,194 834,086 419,100 453,375
Total remuneration (cash components) pursuant
toDRS17 (lit.a and d) 3,459,554 3,119,743 1,903,309 1,728,057
John Gilbert
Jrgen Gerdes Supply Chain
Post - eCommerce - Parcel (since 11March2014)
2014 2015 Min.2015 Max.2015 2014 2015 Min.2015 Max.2015
Base salary 976,500 991,148 991,148 991,148 576,613 715,000 715,000 715,000
Fringe benefits 31,479 31,399 31,399 31,399 75,044 168,110 168,110 168,110
Total (lit.a) 1,007,979 1,022,547 1,022,547 1,022,547 651,657 883,110 883,110 883,110
Multi-year variable remuneration 1,367,113 1,402,267 0 4,518,754 945,666 1,001,011 0 3,217,500
LTIP with four-year waiting period 976,513 1,005,808 0 4,023,180 715,021 715,011 0 2,860,000
Total (lit.a and b) 2,765,692 2,821,273 1,022,547 6,036,875 1,827,968 2,170,121 883,110 4,458,110
c) Pension expense (service cost) 239,548 325,592 325,592 325,592 253,470 253,470 253,470
Total DCGK remuneration (lit.a to c) 3,005,240 3,146,865 1,348,139 6,362,467 1,827,968 2,423,591 1,136,580 4,711,580

Payout from medium-term component 448,725 457,274
toDRS17 (lit.a and d) 1,927,035 1,647,077 929,383 1,039,516

120
Melanie Kreis
Human Resources Lawrence Rosen
(since 31October2014) Finance, Global Business Services
2014 2015 Min.2015 Max.2015 2014 2015 Min.2015 Max.2015
Base salary 121,089 715,000 715,000 715,000 930,000 945,500 945,500 945,500
Fringe benefits 3,849 22,596 22,596 22,596 29,476 24,985 24,985 24,985
Total (lit.a) 124,938 737,596 737,596 737,596 959,476 970,485 970,485 970,485
Multi-year variable remuneration 48,436 1,001,011 0 3,217,500 1,302,026 1,354,720 0 4,378,750
LTIP with four-year waiting period 0 715,011 0 2,860,000 930,026 976,520 0 3,906,000
Total (lit.a and b) 221,810 2,024,607 737,596 4,312,596 2,633,502 2,703,405 970,485 5,821,985
c) Pension expense (service cost) 70,207 70,207 70,207 325,451 332,971 332,971 332,971
Total DCGK remuneration (lit.a to c) 221,810 2,094,814 807,803 4,382,803 2,958,953 3,036,376 1,303,456 6,154,956

toDRS17 (lit.a and d) 182,994 858,252 1,689,090 1,524,319
Target remuneration for the Board of Management members who left the company in financial year 2015
B.07
Roger Crook
(until 27April2015)
2014 2015 Min.2015 Max.2015
Base salary 912,500 302,250 302,250 302,250
Fringe benefits 210,096 64,203 64,203 64,203
Total (lit.a) 1,122,596 366,453 366,453 366,453
One-year variable remuneration 365,000 120,900 0 151,125
Multi-year variable remuneration 1,295,026 430,913 0 1,391,125
LTIP with four-year waiting period 930,026 310,013 0 1,240,000
Deferral with three-year waiting period 365,000 120,900 0 151,125
Total (lit.a and b) 2,782,622 918,266 366,453 1,908,703
c) Pension expense (service cost) 301,904 326,533 326,533 326,533

Total DCGK remuneration (lit.a to c) 3,084,526 1,244,799 692,986 2,235,236

One-year variable remuneration (payment amount) 336,849 32,114
toDRS17 (lit.a and d) 1,867,201 783,245

121
The payments tables (B.08 and B.09) below include the same figures for fixed remu-
neration and fringe benefits as in the target remuneration tables (B.06 and B.07). By
contrast with the presentation in the target remuneration tables, the one-year variable
remuneration paid out in financial year 2015 or in the previous year (the payment
amount) is stated; the presentation therefore does not include the share of the annual
bonus transferred to the medium-term component in these years. With regard to the
medium-term component (the deferral), the payment amount of the deferral whose
calculation period ended upon expiry of the reporting year or the previous year is re-
ported. The tables also reflect the amount paid (the payment amount) from the tranches
of the long-term components that were exercised in financial year 2015 or in the previ-
ous year. In addition, the pension expense (service cost in accordance with IAS19) is
stated pursuant to the DCGK recommendations. Although the pension expense does not
represent an actual payment per se, it is included in the presentation for the purpose of
illustrating the total remuneration.
Payments made to the Board of Management members active as at 31December2015

B.08
DrFrank Appel Ken Allen Jrgen Gerdes
Chairman Express Post - eCommerce - Parcel
2014 2015 2014 2015 2014 2015
Payments
Base salary 1,962,556 1,962,556 930,000 968,750 976,500 991,148
Fringe benefits 49,122 34,801 106,274 102,252 31,479 31,399
Total 2,011,678 1,997,357 1,036,274 1,071,002 1,007,979 1,022,547
One-year variable remuneration 928,682 288,300 447,935 203,680 470,331 167,256
Multi-year variable remuneration 5,845,059 5,436,086 4,015,170 5,305,016 4,141,942 5,703,809
Medium-term component (2012) 519,194 419,100 448,725
Medium-term component (2013) 834,086 453,375 457,274
LTIP (2010 tranche) 5,325,865 3,596,070 3,693,217
LTIP (2011 tranche) 4,602,000 4,851,641 5,246,535
Miscellaneous
Total 8,785,419 7,721,743 5,499,379 6,579,698 5,620,252 6,893,612
Pension expense (service cost) 802,179 1,094,399 321,620 321,537 239,548 325,592
Total 9,587,598 8,816,142 5,820,999 6,901,235 5,859,800 7,219,204
John Gilbert Melanie Kreis Lawrence Rosen

Supply Chain Human Resources Finance, Global Business
(since 11March2014) (since 31October2014) Services
2014 2015 2014 2015 2014 2015
Payments
Base salary 576,613 715,000 121,089 715,000 930,000 945,500
Fringe benefits 75,044 168,110 3,849 22,596 29,476 24,985
Total 651,657 883,110 124,938 737,596 959,476 970,485
One-year variable remuneration 277,726 156,406 58,056 120,656 434,264 100,459
Multi-year variable remuneration 3,994,924 5,305,016
Medium-term component (2012) 295,350
LTIP (2010 tranche) 3,699,574
LTIP (2011 tranche) 4,851,641
Miscellaneous
Total 929,383 1,039,516 182,994 858,252 5,388,664 6,375,960
Pension expense (service cost) 253,470 70,207 325,451 332,971
Total 929,383 1,292,986 182,994 928,459 5,714,115 6,708,931

122
Payments made to the Board of Management members who left the company in financial year 2015
B.09
Roger Crook
(until 27April2015)
2014 2015
Payments
Base salary 912,500 302,250
Fringe benefits 210,096 64,203
Total 1,122,596 366,453
One-year variable remuneration 336,849 32,114
Multi-year variable remuneration 407,756 4,104,976
LTIP (2010 tranche)
LTIP (2011 tranche) 3,720,298
Miscellaneous
Total 1,867,201 4,503,543
Pension expense (service cost) 301,904 326,533
Total 2,169,105 4,830,076
Share-based component with long-term incentive effect

B.10
Number of shares Number Number
of SARs of SARs
2014 tranche 2015 tranche
DrFrank Appel, Chairman 427,578 570,516
Ken Allen 202,620 283,872
Roger Crook (until 27April2015) 202,620 90,120
Jrgen Gerdes 212,748 292,386
John Gilbert (since 11March2014) 155,778 207,852
Melanie Kreis (since 31October2014) 207,852
Lawrence Rosen 202,620 283,872
Pension commitments under the previous system

DrFrank Appel and Jrgen Gerdes have direct, final-salary-based pension commit-
ments on the basis of their individual contracts, providing for benefits in case of per-
manent disability, death or retirement. If the contract of a member ends after at least
five years of service on the Board of Management, the entitlements they have acquired
will vest in full. Members become entitled to benefits due to permanent disability after
at least five years of service. Eligibility for retirement benefits begins at the earliest at the
age of 55, or at the age of 62 in the case of Jrgen Gerdes. The pensions are generally
geared towards annuity payments. However, the members of the Board of Management
have the option of choosing a lump sum payment instead of the annuity payment. The
benefit amount depends on the pensionable income and the pension level derived from
the years of service.

123
Pensionable income consists of the annual base salary (fixed annual remuneration)
computed on the basis of the average salary over the last twelve calendar months of
employment. Members of the Board of Management attain a pension level of 25% after
five years of service. The maximum pension level of 50% is attained after ten years of
service. Subsequent pension benefits increase or decrease to reflect changes in the con-
sumer price index in Germany.
Pension commitments under the previous system

B.11
Pension commitments
Pension Pension Present Present

level on level on Maximum value (DBO) on value (DBO) on
31Dec.2014 31Dec.2015 pension level 31Dec.2014 31Dec.2015
% % %
DrFrank Appel, Chairman 50 50 50 17,206,903 15,922,337
Jrgen Gerdes 25 25 50 7,248,450 6,863,181
Total 24,455,353 22,785,518
Pension commitments under the new system

Since 4March2008, newly appointed Board of Management members have been
granted pension commitments based upon a defined contribution plan. Under the
defined contribution pension plan, the company credits an annual amount of 35% of
the annual base salary to a virtual pension account for the Board of Management
member concerned. The maximum contribution period is 15 years. The pension capital
accrues interest at an annual rate equal to the iBoxx Corporates AA 10+ Annual Yield
rate, or at an annual rate of 2.25% at minimum, and will continue to do so until the
pension benefits fall due. The pension benefits are paid out in a lump sum in the amount
of the value accumulated in the pension account. The benefits fall due when the Board
of Management member reaches the age of 62 or in the case of invalidity or death whilst
in office. In the event of benefits falling due, the pension beneficiary may opt to receive
an annuity payment in lieu of a lump sum payment. If this option is exercised, the cap-
ital is converted to an annuity payment, taking into account the average iBoxx Corpor
ates AA 10+ Annual Yield for the past ten full calendar years as well as the individual
data of the surviving dependants and a future pension increase of 1% per year.

124
Board of Management pension commitments under the new system: individual breakdown
B.12
Total Total Present value Present value
contribution contribution (DBO) as at (DBO) as at
for 2014 for 2015 31Dec.2014 31Dec.2015
Ken Allen 325,500 325,500 1,758,438 2,125,947
Roger Crook (until 27April2015) 301,000 81,375 1,112,203 1,220,305
John Gilbert (since 11March2014) 187,688 250,250 196,163 445,742
Melanie Kreis (since 31October2014) 454,6391 250,250 789,731 783,552
Lawrence Rosen 325,500 325,500 2,847,639 3,179,558
Total 1,594,327 1,232,875 6,704,174 7,755,104
1
Including settlement of the benefits resulting from previous pension commitments in the amount of 412,931. With respect
toinvaliditybenefits and surviving dependants benefits, the minimum benefit is based on the previous pension commitment.
Benefits for former Board of Management members

Benefits paid to former members of the Board of Management or their surviving de-
pendants amounted to 25.3million in financial year 2015 (previous year: 6.0million).
The increase compared with the previous year was the result of two extraordinary items
that will not impact the above line item on a permanent basis: firstly, the non-recurring
payment made to Roger Crook, which is described in Other provisions and secondly,
the increase in the number of retirees whose pension benefits fell due but for whom no
new obligations were incurred in 2015. Those obligations were previously included in
the provisions to be recognised for the pension fund members. The defined benefit
obligation (DBO) for current pensions calculated under IFRSs was 94million (previous
year: 104million). The decline in the DBO versus the prior year was mainly due to an
increase in the IFRS discount rate.
Remuneration of the Supervisory Board

Remuneration for the members of the Supervisory Board is governed by article 17 of
the Articles of Association of Deutsche Post AG, according to which Supervisory Board
members receive a fixed annual remuneration only in the amount of 70,000 (as in the
previous year).
The Supervisory Board chairman and the Supervisory Board committee chairs
receive an additional 100% of the remuneration, and the Supervisory Board deputy
chair and committee members receive an additional 50%. This does not apply to the
Mediation or Nomination Committees. Those who only serve on the Supervisory Board
or its committees, or act as chair or deputy chair, for part of the financial year are re-
munerated on a pro-rata basis.
As in the previous year, Supervisory Board members receive an attendance allow-
ance of 1,000 for each plenary meeting of the Supervisory Board or committee meet-
ing that they attend. They are entitled to the reimbursement of out-of-pocket cash
expenses incurred in the exercise of their office. Any value added tax charged on Super-
visory Board remuneration or out-of-pocket expenses is reimbursed.

125
The remuneration for 2015 totalled 2,682,000 (previous year: 2,671,000). Table
B.13 shows both totals, broken down as the remuneration paid to each Supervisory
Board member.
Remuneration paid to Supervisory Board members

B.13
2014 2015
Fixed Attendance Fixed Attendance

Board members component allowance Total component allowance Total
Prof.DrWulf von
Schimmelmann (Chair) 315,000 23,000 338,000 315,000 25,000 340,000
Andrea Kocsis
(DeputyChair) 245,000 19,000 264,000 245,000 21,000 266,000
Rolf Bauermeister 140,000 16,000 156,000 140,000 18,000 158,000
Hero Brahms
(until27May2014) 52,500 4,000 56,500
Heinrich Josef Busch
(until30November2014) 64,167 7,000 71,167
Jrg von Dosky
(since9December2014) 5,833 1,000 6,833 70,000 8,000 78,000
Werner Gatzer 140,000 19,000 159,000 140,000 18,000 158,000
Prof.Dr Henning
Kagermann 105,000 8,000 113,000 105,000 11,000 116,000
Thomas Koczelnik 175,000 21,000 196,000 175,000 24,000 199,000
Anke Kufalt 70,000 8,000 78,000 70,000 8,000 78,000
Thomas Kunz 70,000 6,000 76,000 70,000 6,000 76,000
Simone Menne
(since27May2014) 65,625 9,000 74,625 105,000 12,000 117,000
Roland Oetker 140,000 18,000 158,000 140,000 18,000 158,000
Andreas Schdler 70,000 8,000 78,000 70,000 8,000 78,000
Sabine Schielmann 70,000 8,000 78,000 70,000 8,000 78,000
DrUlrich Schrder 105,000 9,000 114,000 105,000 9,000 114,000
DrStefan Schulte 126,875 15,000 141,875 140,000 15,000 155,000
Stephan Teuscher 105,000 15,000 120,000 105,000 15,000 120,000
Helga Thiel 105,000 14,000 119,000 105,000 15,000 120,000
Elmar Toime 70,000 8,000 78,000 70,000 8,000 78,000
Stefanie Weckesser 105,000 13,000 118,000 105,000 13,000 118,000
Prof.Dr-Ing.Katja Windt 70,000 7,000 77,000 70,000 7,000 77,000
In addition, the variable remuneration for financial year 2013 falls due for payment as
at the end of the 2016 AGM on the condition that the consolidated net profit per share
for financial year 2015 exceeds the consolidated net profit per share for financial year
2012. Since this condition was not met, no performance-related remuneration with a
long-term incentive effect will be paid out for financial year 2013.

126
In addition, the variable remuneration for financial year 2012 was paid out in the pre-
vious year (2014). According to the remuneration provisions applicable at the time, the
above remuneration component will amount to 1,000 for each 0.02 by which the
consolidated net profit per share for financial year 2014 exceeds the consolidated net
profit per share for financial year 2011. The total amount of the variable remuneration
for 2012 was 616,250. Of that amount, 21,250 was attributable to one Supervisory
Board member who left the company prior to 2014 and 595,000 to the Supervisory
Board members active in 2014, as broken down by member in the following table:
Variable remuneration paid to Supervisory Board members for 2012

B.14
Variable
remuneration
Active Board members in 2014 (cap)
Prof.DrWulf von Schimmelmann (Chair) 70,000
Andrea Kocsis (Deputy Chair) 60,000
Rolf Bauermeister 30,000
Hero Brahms (until 27May2014) 40,000
Heinrich Josef Busch (until 30November2014) 20,000
Jrg von Dosky (since 9December2014)1
Werner Gatzer 40,000
Prof.DrHenning Kagermann 20,000
Thomas Koczelnik 40,000
Anke Kufalt 20,000
Thomas Kunz 20,000
Simone Menne (since 27May2014)1
Roland Oetker 40,000
Andreas Schdler 20,000
Sabine Schielmann 20,000
DrUlrich Schrder 20,000
DrStefan Schulte 30,000
Stephan Teuscher 5,000
Helga Thiel 30,000
Elmar Toime 20,000
Stefanie Weckesser 30,000
Prof.Dr-Ing.Katja Windt 20,000
1
Not a Board member in financial year 2012.

C
CONSOLIDATED
FINANCIAL
STATEMENTS
127204
C CONSOLIDATED FINANCIAL STATEMENTS

C
CONSOLIDATED FINANCIAL STATEMENTS
129 INCOME STATEMENT 156 BALANCE SHEET DISCLOSURES
156 24 Intangible assets
130 STATEMENT OF COMPREHENSIVE 158 25 Property, plant and equipment
159 26 Investment property
INCOME 159 27 Investments accounted for using the equity method
160 28 Financial assets
131 BALANCE SHEET 161 29 Other assets
161 30 Deferred taxes
162 31 Inventories
132 CASH FLOW STATEMENT 162 32 Trade receivables
162 33 Income tax assets and liabilities
133 STATEMENT OF CHANGES IN EQUITY 162 34 Cash and cash equivalents
162 35 Assets held for sale and liabilities associated with
134 NOTES TO THE CONSOLIDATED assets heldfor sale
163 36 Issued capital and purchase of treasury shares
FINANCIALSTATEMENTS OF 165 37 Capital reserves
DEUTSCHE POST AG 165 38 Other reserves
166 39 Retained earnings
134 BASIS OF PREPARATION 167 40 Equity attributable to Deutsche Post AG shareholders
134 1 Basis of accounting 167 41 Non-controlling interests
134 2 Consolidated group 168 42 Provisions for pensions and similar obligations
136 3 Significant transactions 177 43 Other provisions
136 4 Adjustment of prior-period amounts 178 44 Financial liabilities
137 5 New developments in international accounting under IFRSs 180 45 Other liabilities
139 6 Currency translation 180 46 Trade payables
139 7 Accounting policies
181 CASH FLOW DISCLOSURES
146 8 Exercise of judgement in applying the accounting policies
147 9 Consolidation methods 181 47 Cash flow disclosures
148 SEGMENT REPORTING 183 OTHER DISCLOSURES

148 10 Segment reporting 183 48 Risks and financial instruments of the Group
194 49 Contingent liabilities
151 INCOME STATEMENT DISCLOSURES 194 50 Other financial obligations
151 11 Revenue 195 51 Litigation
151 12 Other operating income 196 52 Share-based payment
152 13 Materials expense 198 53 Related party disclosures
152 14 Staff costs/employees 2 01 54 Auditors fees
153 15 Depreciation, amortisation and impairment losses 2 01 55 Exemptions under the HGB and local foreign legislation
153 16 Other operating expenses 2 03 56 Declaration of Conformity with the German
153 17 Net income from investments accounted for using Corporate Governance Code
the equity method 2 03 57 Significant events after the reporting date and
154 18 Net finance costs other disclosures
154 19 Income taxes
155 20 Consolidated net profit for the period 203 RESPONSIBILITY STATEMENT
155 21 Non-controlling interests
155 22 Earnings per share 204 INDEPENDENT AUDITORS REPORT
155 23 Dividend per share
Consolidated Financial Statements Income Statement
129
INCOME STATEMENT
1 January to 31 December
C.01
m
Note 2014 2015
Revenue 11 56,630 59,230
Other operating income 12 2,016 2,394
Total operating income 58,646 61,624
Materials expense 13 32,042 33,170

Staff costs 14 18,189 19,640
Depreciation, amortisation and impairment losses 15 1,381 1,665
Other operating expenses 16 4,074 4,740
Total operating expenses 55,686 59,215
Net income from investments accounted for using the equity method 17 5 2
Profit from operating activities (EBIT) 2,965 2,411
Financial income 74 94
Finance costs 423 410
Foreign currency result 39 38
Net finance costs 18 388 354
Profit before income taxes 2,577 2,057

Income taxes 19 400 338
Consolidated net profit for the period 20 2,177 1,719

attributable to Deutsche Post AG shareholders 2,071 1,540
attributable to non-controlling interests 21 106 179
Basic earnings per share () 22 1.71 1.27
Diluted earnings per share () 22 1.64 1.22

130
STATEMENT OF COMPREHENSIVE INCOME

C.02
m
Note 2014 2015
Consolidated net profit for the period 20 2,177 1,719
Items that will not be reclassified to profit or loss

Change due to remeasurements of net pension provisions 2,350 833
IFRS3 revaluation reserve 2 0
Other changes in retained earnings 2 0
Income taxes relating to components of other comprehensive income 19 285 65
Share of other comprehensive income of investments accounted for using the equity method (after tax) 0 0
Total (after tax) 2,065 768
Items that may be subsequently reclassified to profit or loss

IAS39 revaluation reserve
Changes from unrealised gains and losses 112 62
Changes from realised gains and losses 0 172
IAS39 hedging reserve

Currency translation reserve

Income taxes relating to components of other comprehensive income 19 17 12

Share of other comprehensive income of investments accounted for using the equity method (after tax) 4 5
Total (after tax) 495 361
Other comprehensive income (after tax) 1,570 1,129
Total comprehensive income 607 2,848

attributable to Deutsche Post AG shareholders 488 2,665
attributable to non-controlling interests 119 183

Consolidated Financial Statements STATEMENT OF COMPREHENSIVE INCOME Balance Sheet
131
BALANCE SHEET

C.03
m
Note 31 Dec.2014 31 Dec.2015
ASSETS
Intangible assets 24 12,352 12,490
Property, plant and equipment 25 7,177 7,795
Investment property 26 32 25
Investments accounted for using the equity method 27 75 76
Non-current financial assets 28 1,363 1,113
Other non-current assets 29 151 221
Deferred tax assets 30 1,752 2,007
Non-current assets 22,902 23,727
Inventories 31 332 281

Current financial assets 28 351 179
Trade receivables 32 7,825 7,694
Other current assets 29 2,415 2,172
Income tax assets 33 172 197
Cash and cash equivalents 34 2,978 3,608
Assets held for sale 35 4 12
Current assets 14,077 14,143
Total ASSETS 36,979 37,870
EQUITY AND LIABILITIES

Issued capital 36 1,210 1,211
Capital reserves 37 2,339 2,385
Other reserves 38 341 11
Retained earnings 39 6,168 7,427
Equity attributable to Deutsche Post AG shareholders 40 9,376 11,034
Non-controlling interests 41 204 261
Equity 9,580 11,295
Provisions for pensions and similar obligations 42 7,226 6,221

Deferred tax liabilities 30 84 142
Other non-current provisions 43 1,556 1,512
Non-current provisions 8,866 7,875
Non-current financial liabilities 44 4,683 4,625

Other non-current liabilities 45 255 234
Non-current liabilities 4,938 4,859
Non-current provisions and liabilities 13,804 12,734
Current provisions 43 1,545 1,486
Current financial liabilities 44 486 553

Trade payables 46 6,922 7,069
Other current liabilities 45 4,196 4,255
Income tax liabilities 33 446 476
Liabilities associated with assets held for sale 35 0 2
Current liabilities 12,050 12,355
Current provisions and liabilities 13,595 13,841
Total EQUITY AND LIABILITIES 36,979 37,870

132
CASH FLOW STATEMENT

C.04
m
Note 2014 2015
Consolidated net profit for the period attributable to Deutsche Post AG shareholders 2,071 1,540
Consolidated net profit for the period attributable to non-controlling interests 106 179
Income taxes 400 338
Net finance costs 388 354
Profit from operating activities (EBIT) 2,965 2,411
Depreciation, amortisation and impairment losses 1,381 1,665
Net income from disposal of non-current assets 11 261
Non-cash income and expense 4 68
Change in provisions 698 495
Change in other non-current assets and liabilities 25 12
Dividend received 1 1
Income taxes paid 548 585
Net cash from operating activities before changes in working capital 3,061 2,656
Changes in working capital

Inventories 106 80
Receivables and other current assets 814 460
Liabilities and other items 687 248
Net cash from operating activities 47.1 3,040 3,444
Subsidiaries and other business units 4 15

Property, plant and equipment and intangible assets 200 175
Investments accounted for using the equity method and other investments 0 223
Other non-current financial assets 118 24
Proceeds from disposal of non-current assets 322 437
Subsidiaries and other business units 5 0

Property, plant and equipment and intangible assets 1,750 2,104
Investments accounted for using the equity method and other investments 1 0
Other non-current financial assets 103 47
Cash paid to acquire non-current assets 1,859 2,151
Current financial assets 405 205
Net cash used in investing activities 47.2 1,087 1,462
Proceeds from issuance of non-current financial liabilities 43 14

Repayments of non-current financial liabilities 1,030 33
Change in current financial liabilities 53 50
Other financing activities 5 22
Proceeds from transactions with non-controlling interests 0 0
Cash paid for transactions with non-controlling interests 34 15
Dividend paid to Deutsche Post AG shareholders 968 1,030
Dividend paid to non-controlling interest holders 90 124
Purchase of treasury shares 85 70
Proceeds from issuing shares or other equity instruments 62 39
Net cash used in financing activities 47.3 2,348 1,367
Net change in cash and cash equivalents 395 615

Effect of changes in exchange rates on cash and cash equivalents 42 16
Changes in cash and cash equivalents associated with assets held for sale 0 1
Changes in cash and cash equivalents due to changes in consolidated group 1 0
Cash and cash equivalents at beginning of reporting period 3,414 2,978
Cash and cash equivalents at end of reporting period 47.4 2,978 3,608

Consolidated Financial Statements CASH FLOW STATEMENT Statement of Changes in Equity
133
STATEMENT OF CHANGES IN EQUITY

C.05
m Other reserves
Equity
attributable
IFRS3 IAS39 IAS39 Currency to Deutsche Non-
Issued Capital revaluation revaluation hedging translation Retained Post AG controlling
capital reserves reserve reserve reserve reserve earnings shareholders interests Total equity
Note 36 37 38.1 38.2 38.3 38.4 39 40 41
Balance at 1 January 2014 1,209 2,269 2 68 37 924 7,183 9,844 190 10,034
Capital transactions with owner

Dividend 968 968 101 1,069
Transactions with non-controlling
interests 0 0 0 0 6 6 15 21
Changes in non-controlling interests
due to changes in consolidated group 0 5 5
Issue of shares or other equity
instruments 2 54 0 56 6 62
Purchase of treasury shares 3 0 82 85 0 85
Share-based payment schemes
(issuance) 0 47 0 47 0 47
(exercise) 2 31 29 0 0 0
956 105 1,061
Total comprehensive income

Consolidated net profit for the period 2,071 2,071 106 2,177
Currency translation differences 441 0 441 17 458
Change due to remeasurements
ofnetpension provisions 2,061 2,061 4 2,065
Other changes 0 0 2 102 65 2 37 0 37
488 119 607
Balance at 31 December 2014 1,210 2,339 0 170 28 483 6,168 9,376 204 9,580
Balance at 1 January 2015 1,210 2,339 0 170 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 0 3 3 3 6
Changes in non-controlling interests
due to changes in 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
(issuance) 0 57 0 57 0 57
(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
ofnetpension provisions 773 773 5 768
Other changes 0 0 0 103 13 0 116 0 116
2,665 183 2,848
Balance at 31 December 2015 1,211 2,385 0 67 41 15 7,427 11,034 261 11,295

134
NOTES TO THE CONSOLIDATED 2 Consolidated group

The consolidated group includes all companies controlled by
FINANCIALSTATEMENTS OF Deutsche Post AG. Control exists if Deutsche Post AG has decision-
making powers, is exposed to, and has rights to, variable returns,
DEUTSCHE POST AG and is able to use its decision-making powers to affect the amount
of the variable returns. The Group companies are consolidated from
BASIS OF PREPARATION the date on which Deutsche Post DHL Group is able to exercise
control.
Deutsche Post DHL Group is a global mail and logistics group. The When Deutsche Post DHL Group holds less than the majority
Deutsche Post and DHL corporate brands represent a portfolio of of voting rights, other contractual arrangements may result in the
logistics (DHL) and communication (Deutsche Post) services. The Group controlling the investee.
financial year of Deutsche Post AG and its consolidated subsidiaries DHL Sinotrans International Air Courier Ltd. (Sinotrans),
is the calendar year. Deutsche Post AG, whose registered office is in China, is a significant company that has been consolidated despite
Bonn, Germany, is entered in the commercial register of the Bonn Deutsche Post DHL Group not having a majority of voting rights.
Local Court. Sinotrans provides domestic and international express delivery and
transport services and has been assigned to the Express segment.
1 Basis of accounting The company is fully integrated into the global DHL network and
As a listed company, Deutsche Post AG prepared its consolidated operates exclusively for Deutsche Post DHL Group. Due to the
financial statements in accordance with the International Financial arrangements in the Network Agreement, DHL is able to prevail in
Reporting Standards (IFRSs), as adopted by the European Union decisions concerning Sinotrans relevant activities. Sinotrans has
(EU), and the provisions of commercial law to be additionally therefore been consolidated fully although Deutsche Post DHL
applied in accordance with section 315a (1) of the Handelsgesetzbuch Group holds no more than 50% of the companys share capital.
(HGB German Commercial Code). The complete list of the Groups shareholdings in accordance
The requirements of the Standards applied have been satisfied with section 313(2) nos. 1 to 4 and section 313(3) of the HGB can be
in full, and the consolidated financial statements therefore provide accessed online at www.dpdhl.com/en/investors.html.
a true and fair view of the Groups net assets, financial position and The companies listed in the following table are consolidated in
results of operations. addition to the parent company Deutsche Post AG:
The consolidated financial statements consist of the income
statement and the statement of comprehensive income, the balance Consolidated group
sheet, the cash flow statement, the statement of changes in equity
and the Notes. In order to improve the clarity of presentation, vari 2014 2015
ous items in the balance sheet and in the income statement have
Number of fully consolidated companies
been combined. These items are disclosed and explained separately (subsidiaries)
in the Notes. The income statement has been classified in accord- German 90 139
ance with the nature of expense method. Foreign 685 658
The accounting policies, as well as the explanations and disclos Number of joint operations
ures in the Notes to the IFRS consolidated financial statements for German 1 1
financial year 2015, are generally based on the same accounting Foreign 1 1
policies used in the 2014 consolidated financial statements. Excep- Number of investments accounted for
tions to this are the changes in international financial reporting usingtheequity method
German 1 1
under the IFRSs described in Note 5 that have been required to
Foreign 14 15
be applied by the Group since 1January2015. The accounting pol-
icies are explained in Note 7.
These consolidated financial statements were authorised for
issue by a resolution of the Board of Management of Deutsche Post AG At the beginning of 2015, Deutsche Post DHL Group founded 49
dated 1 March2016. regional companies under the umbrella of DHL Delivery GmbH to
The consolidated financial statements are prepared in euros (). secure the increased demand for labour as a result of continued
Unless otherwise stated, all amounts are given in millions of euros sustained growth in the parcel business.
( million, m).

Consolidated Financial Statements NOTES Basis of preparation
135
2.1 Acquisitions Following their consolidation, the companies contributed 17mil-

lion to consolidated revenue and 2million to consolidated EBIT in
Acquisitions in 2015 financial year 2014. If the companies had already been acquired as
No acquisitions were made in financial year 2015. at 1January2014, they would have contributed an additional
8million to consolidated revenue and 1million to consolidated
Acquisitions in 2014 EBIT in 2014.
Freight forwarding, transport and logistics service provider DHL Transaction costs amounted to less than 1million and are
Global Forwarding&Co. LLC (DHL Oman), Oman, which was ac- reported in other operating expenses.
counted for using the equity method until April2014, has been In 2014, 7million was paid for the companies acquired in
consolidated since May2014 due to contractual changes. In Decem- financial year 2014, and 3million was paid for companies acquired
ber2014, Deutsche Post DHL Group acquired StreetScooter GmbH. in previous years. The purchase price for the companies acquired
The company develops electric vehicles. As a result of the acquisi- was paid by transferring cash funds.
tion, Deutsche Post DHL Group also acquired the development and
production rights to the vehicles. 2.2 Disposal and deconsolidation effects
Gains are shown in other operating income; losses are reported in
Acquisitions, 2014 other operating expenses.
Interest Date of
Name Country Segment % acquisition Disposal and deconsolidation effects, 2015
DHL Global Forwarding&Co. Global The disposal and deconsolidation effects in financial year 2015 were
LLC (DHL Oman), Muscat Forwarding,
as follows:
Oman Freight 40 7May2014
StreetScooter GmbH,
Aachen Germany PeP 100 18Dec.2014 Disposal and deconsolidation effects, 2015
m
1January to 31December DHL SC Ltd.
Insignificant acquisitions, 2014 Non-current assets 3
m Current assets 0
Carrying
1January to 31December amount Adjustment Fair value Cash and cash equivalents 0
Non-current assets 3 3 ASSETS 3
Current assets 11 11 Non-current provisions and liabilities 0
Cash and cash equivalents 5 5 Current provisions and liabilities 0
ASSETS 19 19 EQUITY AND LIABILITIES 0
Current provisions and liabilities 9 9 Net assets 3
EQUITY AND LIABILITIES 9 9 Total agreed consideration 14
Net assets 10 Obligation assumed 5
Income from the currency translation reserve 0
Non-controlling interests 0
Deconsolidation gain (+)/loss () 6
The calculation of goodwill is presented in the following table:
Goodwill, 2014
m Supply Chain segment
Fair value In December2015, DHL Supply Chain Limited (DHL SC Ltd.), UK,
Contractual consideration 7 sold its food procurement business.
Fair value of the existing equity interest1 2
Total cost 9 GLOBAL FORWARDING, FREIGHT Segment
Less net assets 10
The fine art transportation business of DHL Global Forwarding
Difference 1
(Denmark) A/S, Denmark, was sold in December2015. Since all of
Plus non-controlling interests2 3
the amounts involved were less than 1million, they are not shown
Goodwill 2
in the table Disposal and deconsolidation effects, 2015.
1
Gain on the change in the method of consolidation is recognised under other operating
income.
2
Non-controlling interests are recognised at their carrying amounts.

136
Disposal and deconsolidation effects, 2014

The disposal and deconsolidation effects in financial year 2014 were
as follows:
Disposal and deconsolidation effects, 2014

m Digital
Solutions Compador
1January to 31December Hull Blyth Business Technologies Total
Non-current assets 1 1 1 3
Current assets 3 0 0 3
Cash and cash equivalents 0 0 0 0
ASSETS 4 1 1 6
Non-current provisions and liabilities 0 0 5 5
Current provisions and liabilities 2 0 1 3
EQUITY AND LIABILITIES 2 0 6 8
Net assets 2 1 5 2
Total consideration received 2 4 4 2
Income from the currency translation reserve 0 0 0 0
Non-controlling interests 0 0 2 2
Deconsolidation gain (+)/loss () 0 3 1 2
Post - eCommerce - Parcel segment them access to its freight aircraft capacity. Aerologic serves the
The German company Compador Technologies, Berlin, was sold DHLExpress network exclusively from Monday to Friday, whilst it
and deconsolidated in December2014. fliesfor the Lufthansa Cargo network at weekends. In contrast to
itscapital and voting rights, the companys assets and liabilities, as
Supply Chain segment well as its income and expenses, are allocated based on this user
In December2014, DHL Supply Chain Limited, UK, sold its Digital relationship.
Solutions Business by way of an asset deal.
3 Significant transactions
Global Forwarding, Freight segment In the first half of 2015, 4.16% of the shares in Sinotrans Ltd.
In July2014, activities not forming part of the core business of Hull (Sinotrans), China, and shares in the property development com-
Blyth (Angola) Ltd., Angola, including the related non-current panies Kings Cross Central Property Trust and Kings Cross Central
assets and the company Hull Blyth Angola Viagens e Turismo Lda., General PartnerLtd. (Kings Cross companies), UK, were sold. The
Angola, were sold. During the course of the year, the assets and gains on the disposal of the shares are reported in other operating
liabilities were reclassified as assets held for sale and liabilities asso- income, Note 12.
ciated with assets held for sale in accordance with IFRS5. The most DHL Global Forwarding discontinued the use of the New G lobal
recent measurement of the assets prior to reclassification did not Forwarding (NFE) system. The majority of the assets capitalised in
indicate any impairment. relation to NFE were therefore written off, Note 15. In addition,
provisions of 37million were recognised in this context in the
2.3 Joint operations third quarter of 2015. They relate to unavoidable expenses from
Joint operations are consolidated in accordance with IFRS11, based ongoing contracts where the obligations exceed the economic bene
on the interest held. fits, and are reported as materials expense. Income in the amount
A significant joint operation is Aerologic GmbH (Aerologic), of 11million was recognised in the fourth quarter, based on agree-
Germany, a cargo airline domiciled in Leipzig. The company has ments with the implementation partner.
been allocated to the Express segment. It was jointly established by
Lufthansa Cargo AG and Deutsche Post Beteiligungen Holding 4 Adjustment of prior-period amounts
GmbH, which each hold 50% of its capital and voting rights. No prior-period amounts were adjusted in financial year 2015.
Aerologics shareholders are simultaneously its customers, giving

137
5 New developments in international accounting under IFRSs

New Standards required to be applied in financial year 2015
The following Standards, changes to Standards and Interpretations
are required to be applied from 1January2015:
Effective for
financial years
beginning on
Standard orafter Subject matter and significance
IFRIC21, Levies 17June2014 This interpretation provides guidance on when to recognise a liability for a levy imposed by a government. It covers the recognition
of levies imposed in accordance with laws or regulations. It does not include taxes, fines and other outflows that fall within the
scope of other standards. The effects of this interpretation on the consolidated financial statements are immaterial.
Annual Improvements 1January2015 The annual improvement process refers to the following standards:IFRS1, IFRS3, IFRS13 and IAS40. The amendments do not
toIFRSs 20112013 Cycle have a significant influence on the consolidated financial statements.
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 on
(Issue date) orafter Subject matter and significance
Amendments to IAS19, 1February20151 The amendments apply to the recognition of employee contributions to defined benefit retirement plans. Their objective is to
Defined Benefit Plans: simplify accounting for employee contributions that are independent of the number of years of service. In such cases, the
Employee Contributions servicecost in the period in which the corresponding service is rendered may be reduced. The new requirements must be applied
(21November2013) retrospectively. Application will not lead to any significant effects.
Annual Improvements 1February20151 The annual improvement process refers to the following standards: IFRS2, IFRS3, IFRS8, IFRS13, IAS16, IAS24, IAS37, IAS38
toIFRSs 20102012 Cycle andIAS39. The amendments will not have a significant influence on the consolidated financial statements.
(12December2013)
Amendments to IAS16,Prop- 1January2016 The amendments expand the existing requirements relating to the permitted depreciation and amortisation methods for
erty, Plant and Equipment intangible assets and for property, plant and equipment. The amendments specify that revenue-based depreciation and
andIAS38, IntangibleAssets: amortisation methods are not permitted for property, plant and equipment, and may only be used for intangible assets in certain
Clarification of Acceptable exceptional circumstances. In addition, the amendments clarify that a reduction in the selling price of goods and services
Methods of Depreciation and couldsignal obsolescence, which could in turn reflect a reduction in the economic benefits available from the asset. The
Amortisation requirements are applicable prospectively. Voluntary early application is permitted. Application will not have a significant effect
(12May2014) on the consolidated financial statements.
Amendments to IFRS11, 1January2016 The amendment clarifies that the acquisition and additional acquisition of interests in joint operations in which the activity
JointArrangements constitutes a business, as defined in IFRS3 Business Combinations, must be recognised in accordance with the principles
Acquisition of Interests governing business combinations accounting in IFRS3 and other relevant IFRSs, with the exception of those principles that
inJoint Operations conflict withthe requirements of IFRS11. The amendments do not apply if the reporting entity and the other parties involved
(6May2014) areunder the common control of the same ultimate controlling party. The new requirements are applicable prospectively.
Voluntary earlierapplication is permitted. The amendment will not have a significant effect on the Group.
Annual Improvements 1January2016 The annual improvement process refers to the following standards: IFRS5, IFRS7, IAS19 and IAS34. The amendments will
toIFRSs 20122014 Cycle nothave a significant influence on the consolidated financial statements.
(25September2014)
Amendments to IAS1, 1January2016 The changes comprise clarifications relating to the materiality of the items presented in all components of the IFRS financial
Presentation of Financial statements. Information that is not material need not be presented. This applies even if disclosure is explicitly required in other
Statements: Disclosure standards. In addition, the revised version of IAS1 includes new rules or clarifications of existing requirements concerning the
Initiative (18December2014) presentation of subtotals, the structure of the notes and the disclosures on accounting policies. The presentation of the interest
in equity-accounted investments in other comprehensive income is also clarified. The amendments will not have a significant
effect on the financial statements.
The following are not relevant for the consolidated financial statements:
amendments to IAS27, Equity Method in Separate Financial Statements.
1
The effective date was amended for companies within the EU. This is a departure from the original standard.

138
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 2015 and in previous
years whose application is not yet mandatory for financial year 2015.
The application of these IFRSs is dependent on their adoption by
theEU.
Effective for
financial years
Standard beginning on
(Issue date) orafter Subject matter and significance
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 and liabilities must be classified on the basis of the business model in which they
areheld and their cash flow characteristics. The reclassification of financial instruments, particularly financial assets, will not
have a material effect on the consolidated financial statements. The change in the recognition of impairment losses from the
incurred loss model to the expected loss model will have a one-time effect. However, this effect is unlikely to be significant, as
the majority of the financial assets are trade receivables, for which the full lifetime expected loss model (simplified approach)
willin future apply. Customer credit quality will directly impact the impairment process in the future. Any fluctuations will be
directly reflected in net income. IFRS9 will also more closely align hedge accounting with risk management objectives. Inparticular,
the new requirements on hedging individual risk components, which are applicable for both non-financial and financial items,
willconsiderably 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 hedgingrelation-
ships 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 to have a material effect on the
Groups results. The new requirements will more transparently reflect the risk management approach of Deutsche Post DHL Group.
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. The new standard establishes uniform requirements regarding the amount, time and time period of
(28May2014) including the revenue recognition, which are applicable for all sectors and for all categories of revenue transaction. The standard provides a
amendment to IFRS15 principle-based five-step model that must be applied to all contracts with customers. It also introduces extensive disclosure
(11September2015) requirements.The requirements must in principle be applied retrospectively. The effects on the consolidated financial statements
are being reviewed.
IFRS16, Leases 1January2019 IFRS16 replaces the existing standard on accounting for leases, IAS17, and the interpretations IFRIC4, SIC-15 and SIC-27. IFRS16
(13January2016) requires lessees to adopt a completely new approach to the presentation of leases. In future, assets must be recognised for
theright 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. In contrast, the accounting requirements for lessors remain largely
unchanged, particularly with regard to the continued requirement to classify leases. 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 is currently reviewing and assessing its existing leases. With regard to the financial obligations reported
as operating lease liabilities under Note 50, application of the standard will have a material effect on the consolidated financial
statements. In particular, it will result in an increase in total assets and liabilities.
Amendments to IAS12, 1January2017 The amendment of IAS12 clarifies that unrealised losses on debt instruments measured at fair value result in deductibletempor
IncomeTaxes: Recognition ary differences. It also clarifies that an assessment must be made for the aggregate of all deductible temporary differences
ofDeferred Tax Assets ofwhether it is probable that sufficient taxable income will be available in future to allow the temporary differences to be used
forUnrealised Losses and recognised. Rules and examples supplementing IAS12 clarify how future taxable income is to be determined for recognition
(16January2016) ofdeferred 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
Statement of Cash Flows offinancial statements to assess an entitys financial liabilities. The effects on the consolidated financial statements are being
(29January2016) reviewed.
The following are not relevant for the consolidated financial statements:
IFRS14, Regulatory Deferral Accounts; amendments to IFRS10 and IAS28, Sale or Contributions of Assets between an Investor and its Associate/Joint Venture;
amendmentstoIFRS10, IFRS12 and IAS28, Investment Entities:Applying the Consolidation Exception.

139
6 Currency translation 7 Accounting policies

The financial statements of consolidated companies prepared in Uniform accounting policies are applied to the annual financial
foreign currencies are translated into euros () in accordance with statements of the entities that have been included in the consoli-
IAS21 using the functional currency method. The functional cur- dated financial statements. The consolidated financial statements
rency of foreign companies is determined by the primary economic are prepared under the historical cost convention, except where
environment in which they mainly generate and use cash. Within items are required to be recognised at their fair value.
the Group, the functional currency is predominantly the local cur-
rency. In the consolidated financial statements, assets and liabilities Revenue and expense recognition
are therefore translated at the closing rates, whilst periodic income Deutsche Post DHL Groups normal business operations consist of
and expenses are generally translated at the monthly closing rates. the provision of logistics services. All income relating to normal
The resulting currency translation differences are recognised in business operations is recognised as revenue in the income state-
other comprehensive income. In financial year 2015, currency trans- ment. All other income is reported as other operating income. Rev-
lation differences amounting to 477million (previous year: enue and other operating income is generally recognised when
458million) were recognised in other comprehensive income (see services are rendered, the amount of revenue and income can be
the statement of comprehensive income and statement of changes reliably measured and, in all probability, the economic benefits from
in equity). the transactions will flow to the Group. Operating expenses are rec-
Goodwill arising from business combinations after 1Janu- ognised in income when the service is utilised or when the expenses
ary2005 is treated as an asset of the acquired company and thereare incurred.
fore carried in the functional currency of the acquired company.
The exchange rates for the currencies that are significant for the Intangible assets
Group were as follows: Intangible assets, which comprise internally generated and pur-
chased intangible assets and purchased goodwill, are measured at
Closing rates Average rates
amortised cost.
Internally generated intangible assets are capitalised at cost if
2014 2015 2014 2015
Currency Country EUR 1 = EUR 1 = EUR 1 = EUR 1 = it is probable that their production will generate an inflow of future
AUD Australia 1.4823 1.4905 1.4729 1.4771 economic benefits and the costs can be reliably measured. In the
CNY China 7.5389 7.0687 8.1891 6.9773 Group, this concerns internally developed software. If the criteria
GBP UK 0.7789 0.7345 0.8064 0.7264 for capitalisation are not met, the expenses are recognised immedi-
JPY Japan 145.1930 131.0778 140.3815 134.3334 ately in income in the year in which they are incurred. In addition
SEK Sweden 9.3797 9.1879 9.1000 9.3523 to direct costs, the production cost of internally developed software
CHF Switzerland 1.2025 1.0823 1.2146 1.0680 includes an appropriate share of allocable production overhead
USD USA 1.2148 1.0886 1.3291 1.1105
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-
The carrying amounts of non-monetary assets recognised at signifi cluded in the cost if it cannot be deducted as input tax. Capitalised
cant consolidated companies operating in hyperinflationary econ- software is amortised over its useful life.
omies are generally indexed in accordance with IAS29 and thus Intangible assets are amortised using the straight-line method
reflect the current purchasing power at the balance sheet date. over their useful lives. Impairment losses are recognised in accord-
In accordance with IAS21, receivables and liabilities in the ance with the principles described in the section headed Impair-
financial statements of consolidated companies that have been pre- ment. The useful lives of significant intangible assets are presented
pared in local currencies are translated at the closing rate as at the in the table below.
balance sheet date. Currency translation differences are recognised
in other operating income and expenses in the income statement.
In financial year 2015, income of 280million (previous year:
171million) and expenses of 267million (previous year: 170mil-
lion) resulted from currency translation differences. In contrast,
currency translation differences relating to net investments in a
foreign operation are recognised in other comprehensive income.

140
Useful lives Impairment

At each balance sheet date, the carrying amounts of intangible assets,
Years1 property, plant and equipment and investment property are re-
Internally developed software up to 10 viewed for indications of impairment. If there are any such indica-
Purchased software up to 5 tions, an impairment test is carried out. This is done by determining
Licences term of agreement the recoverable amount of the relevant asset and comparing it with
Customer relationship up to 20
the carrying amount.
In accordance with IAS36, the recoverable amount is the assets
1
The useful lives indicated represent maximum amounts specified by the Group. The actual
useful lives may be shorter due to contractual arrangements or other specific factors such fair value less costs to sell or its value in use (present value of the
astime and location.
pre-tax free cash flows expected to be derived from the asset in
future), whichever is higher. The discount rate used for the value in
Intangible assets that are not affected by legal, economic, contrac- use is a pre-tax rate of interest reflecting current market conditions.
tual, or other factors that might restrict their useful lives are con- If the recoverable amount cannot be determined for an individual
sidered to have indefinite useful lives. They are not amortised but asset, the recoverable amount is determined for the smallest iden-
are tested for impairment annually or whenever there are indica- tifiable group of assets to which the asset in question can be allo-
tions of impairment. They generally include brand names from cated and which generates independent cash flows (cash generating
business combinations and goodwill, for example. Impairment test- unit CGU). If the recoverable amount of an asset is lower than its
ing is carried out in accordance with the principles described in the carrying amount, an impairment loss is recognised immediately in
section headed Impairment. respect of the asset. If, after an impairment loss has been recognised,
a higher recoverable amount is determined for the asset or the CGU
Property, plant and equipment at a later date, the impairment loss is reversed up to a carrying
Property, plant and equipment is carried at cost, reduced by accu- amount that does not exceed the recoverable amount. The increased
mulated depreciation and valuation allowances. In addition to dir carrying amount attributable to the reversal of the impairment loss
ect costs, production cost includes an appropriate share of allocable is limited to the carrying amount that would have been determined
production overhead costs. Borrowing costs that can be allocated (net of amortisation or depreciation) if no impairment loss had been
directly to the purchase, construction or manufacture of property, recognised in the past. The reversal of the impairment loss is recog-
plant and equipment are capitalised. Value added tax arising in con- nised in the income statement. Impairment losses recognised in
junction with the acquisition or production of items of property, respect of goodwill may not be reversed.
plant or equipment is included in the cost if it cannot be deducted Since January2005, goodwill has been accounted for using the
as input tax. Depreciation is charged using the straight-line method. impairment-only approach in accordance with IFRS3. This stipu-
The estimated useful lives applied to the major asset classes are pre- lates that goodwill must be subsequently measured at cost, less any
sented in the table below: cumulative adjustments from impairment losses. Purchased good-
will is therefore no longer amortised and instead is tested for im-
Useful lives pairment annually in accordance with IAS36, regardless of whether
any indication of possible impairment exists, as in the case of intan-
Years1 gible assets with an indefinite useful life. In addition, the obligation
Buildings 20 to 50 remains to conduct an impairment test if there is any indication of
Technical equipment and machinery 10 to 20 impairment. Goodwill resulting from company acquisitions is allo-
Aircraft 15 to 20 cated to the identifiable groups of assets (CGUs or groups of CGUs)
IT systems 4 to 5
that are expected to benefit from the synergies of the acquisition.
Transport equipment and vehicle fleet 4 to 18
These groups represent the lowest reporting level at which the good-
Other operating and office equipment 8 to 10
will is monitored for internal management purposes. The carrying
1
The useful lives indicated represent maximum amounts specified by the Group. The actual amount of a CGU to which goodwill has been allocated is tested for
useful lives may be shorter due to contractual arrangements or other specific factors such impairment annually and whenever there is an indication that the
astime and location.
unit may be impaired. Where impairment losses are recognised in
connection with a CGU to which goodwill has been allocated, the
If there are indications of impairment, an impairment test must be existing carrying amount of the goodwill is reduced first. If the
carried out; see section headed Impairment. amount of the impairment loss exceeds the carrying amount of the
goodwill, the difference is allocated to the remaining non-current
assets in the CGU.

141
Finance leases Financial instruments

A lease is an agreement in which the lessor conveys to the lessee the A financial instrument is any contract that gives rise to a financial
right to use an asset for a specified period in return for a payment asset of one entity and a financial liability or equity instrument of
or a number of payments. In accordance with IAS17, beneficial another entity. Financial assets include in particular cash and cash
ownership of leased assets is attributed to the lessee if the lessee equivalents, trade receivables, originated loans and receivables, and
substantially bears all risks and rewards incident to ownership of derivative financial assets held for trading. Financial liabilities in-
the leased asset. To the extent that beneficial ownership is attribut- clude contractual obligations to deliver cash or another financial
able to the Group as the lessee, the asset is capitalised at the date on asset to another entity. These mainly comprise trade payables, li
which use starts, either at fair value or at the present value of the abilities to banks, liabilities arising from bonds and finance leases,
minimum lease payments if this is less than the fair value. A lease and derivative financial liabilities.
liability in the same amount is recognised under non-current liabil-
ities. The lease is subsequently measured at amortised cost using the Fair value option
effective interest method. The depreciation methods and estimated Under the fair value option, financial assets or financial liabilities
useful lives correspond to those of comparable purchased assets. may be measured at fair value through profit or loss on initial recog
nition if this eliminates or significantly reduces a measurement or
Operating leases recognition inconsistency (accounting mismatch). The Group makes
For operating leases, the Group reports the leased asset at amortised use of the option in order to avoid accounting mismatches.
cost as an asset under property, plant and equipment where it is the
lessor. The lease payments recognised in the period are shown under Financial assets
other operating income. Where the Group is the lessee, the lease Financial assets are accounted for in accordance with the provisions
payments made are recognised as lease expenses under materials of IAS39, which distinguishes between four categories of financial
expense. Lease expenses and income are recognised using the instruments.
straight-line method.
Available-for-sale financial assets
Investments accounted for using the equity method These financial instruments are non-derivative financial assets and
Investments accounted for using the equity method cover associates are carried at their fair value, where this can be measured reliably.
and joint ventures. These are recognised using the equity method If a fair value cannot be determined, they are carried at cost.
in accordance with IAS28, Investments in Associates and Joint Changes in fair value between reporting dates are generally recog-
Ventures. Based on the cost of acquisition at the time of purchase nised in other comprehensive income (revaluation reserve). The
of the investments, the carrying amount of the investment is in- reserve is reversed to income either upon disposal or if the fair value
creased or reduced annually to reflect the share of earnings, divi- falls below cost more than temporarily. If, at a subsequent balance
dends distributed and other changes in the equity of the associates sheet date, the fair value of a debt instrument has increased object
and joint ventures attributable to the investments of Deutsche Post AG ively as a result of events occurring after the impairment loss was
or its consolidated subsidiaries. The goodwill contained in the car- recognised, the impairment loss is reversed in the appropriate
rying amounts of the investments is accounted for in accordance amount. Impairment losses recognised in respect of equity instru-
with IFRS3. Investments accounted for using the equity method are ments may not be reversed to income. If equity instruments are
impaired if the recoverable amount falls below the carrying amount. recognised at fair value, any reversals must be recognised in other
Gains and losses from the disposal of investments accounted for comprehensive income. No reversals may be made in the case of
using the equity method, as well as impairment losses and their equity instruments that were recognised at cost. Available-for-sale
reversals, are recognised in other operating income or other oper- financial instruments are allocated to non-current assets unless the
ating expenses. intention is to dispose of them within twelve months of the balance
sheet date. In particular, investments in unconsolidated subsidiaries,
marketable securities and other equity investments are reported in
this category.

142
Held-to-maturity financial assets reasons for impairment no longer exist. The increased carrying
Financial instruments are assigned to this category if there is an amount resulting from the reversal of the impairment loss may not
intention to hold the instrument to maturity and the economic exceed the carrying amount that would have been determined (net
conditions for doing so are met. These financial instruments are of amortisation or depreciation) if the impairment loss had not been
non-derivative financial assets that are measured at amortised cost recognised. Impairment losses are recognised within the Group if
using the effective interest method. the debtor is experiencing significant financial difficulties, it is
highly probable that the debtor will be the subject of bankruptcy
Loans and receivables proceedings, there are material changes in the issuers technological,
These are non-derivative financial assets with fixed or determinable economic, legal or market environment, or the fair value of a finan-
payments that are not quoted on an active market. Unless held for cial instrument falls below its amortised cost for a prolonged period.
trading, they are recognised at cost or amortised cost at the balance A fair value hedge hedges the fair value of recognised assets and
sheet date. The carrying amounts of money market receivables cor- liabilities. Changes in the fair value of both the derivatives and the
respond approximately to their fair values due to their short matur hedged item are recognised in income simultaneously.
ity. Loans and receivables are considered current assets if they A cash flow hedge hedges the fluctuations in future cash flows
mature not more than twelve months after the balance sheet date; from recognised assets and liabilities (in the case of interest rate
otherwise, they are recognised as non-current assets. If the recov- risks), highly probable forecast transactions as well as unrecognised
erability of receivables is in doubt, they are recognised at amortised firm commitments that entail a currency risk. The effective portion
cost, less appropriate specific or collective valuation allowances. A of a cash flow hedge is recognised in the hedging reserve in equity.
write-down on trade receivables is recognised if there are objective Ineffective portions resulting from changes in the fair value of the
indications that the amount of the outstanding receivable cannot be hedging instrument are recognised directly in income. The gains
collected in full. The write-down is recognised in the income state- and losses generated by the hedging transactions are initially recog-
ment via a valuation account. nised in equity and are then reclassified to profit or loss in the
period in which the asset acquired or liability assumed affects profit
Financial assets at fair value through profit or loss or loss. If a hedge of a firm commitment subsequently results in the
All financial instruments held for trading and derivatives that do recognition of a non-financial asset, the gains and losses recognised
not satisfy the criteria for hedge accounting are assigned to this directly in equity are included in the initial carrying amount of the
category. They are generally measured at fair value. All changes in asset (basis adjustment).
fair value are recognised in income. All financial instruments in this Net investment hedges in foreign entities are treated in the
category are accounted for at the trade date. Assets in this category same way as cash flow hedges. The gain or loss from the effective
are recognised as current assets if they are either held for trading or portion of the hedge is recognised in other comprehensive income,
will likely be realised within twelve months of the balance sheet date. whilst the gain or loss attributable to the ineffective portion is recog
To avoid variations in earnings resulting from changes in the nised directly in income. The gains or losses recognised in other
fair value of derivative financial instruments, hedge accounting is comprehensive income remain there until the disposal or partial
applied where possible and economically useful. Gains and losses disposal of the net investment. Detailed information on hedging
from the derivative and the related hedged item are recognised in transactions can be found in Note 48.2.
income simultaneously. Depending on the hedged item and the risk Regular way purchases and sales of financial assets are recog-
to be hedged, the Group uses fair value hedges and cash flow hedges. nised at the settlement date, with the exception of held-for-trading
The carrying amounts of financial assets not carried at fair instruments, particularly derivatives. A financial asset is derecog-
value through profit or loss are tested for impairment at each bal- nised if the rights to receive the cash flows from the asset have ex-
ance sheet date and whenever there are indications of impairment. pired. Upon transfer of a financial asset, a review is made under the
The amount of any impairment loss is determined by comparing the requirements of IAS39 governing disposal as to whether the asset
carrying amount and the fair value. If there are objective indications should be derecognised. A disposal gain/loss arises upon disposal.
of impairment, an impairment loss is recognised in the income The remeasurement gains/losses recognised in other comprehen-
statement under other operating expenses or net financial income/ sive income in prior periods must be reversed as at the disposal date.
net finance costs. Impairment losses are reversed if there are object Financial liabilities are derecognised if the payment obligations
ive reasons arising after the balance sheet date indicating that the arising from them have expired.

143
Investment property Gains and losses arising from the remeasurement of individual
In accordance with IAS40, investment property is property held to non-current assets or disposal groups classified as held for sale are
earn rentals or for capital appreciation or both, rather than for use reported in profit or loss from continuing operations until the final
in the supply of services, for administrative purposes, or for sale in date of disposal. Gains and losses arising from the measurement at
the normal course of the companys business. It is measured in ac- fair value less costs to sell of discontinued operations classified as
cordance with the cost model. Depreciable investment property is held for sale are reported in profit or loss from discontinued oper-
depreciated over a period of between 20 and 50 years using the ations. This also applies to the profit or loss from operations and the
straight-line method. The fair value is determined on the basis of gain or loss on disposal of these components of an entity.
expert opinions. Impairment losses are recognised in accordance
with the principles described under the section headed Impairment. Cash and cash equivalents
Cash and cash equivalents comprise cash, demand deposits and
Inventories other short-term liquid financial assets with an original maturity of
Inventories are assets that are held for sale in the ordinary course of up to three months and are carried at their principal amount. Over-
business, are in the process of production, or are consumed in the draft facilities used are recognised in the balance sheet as amounts
production process or in the rendering of services. They are meas- due to banks.
ured at the lower of cost or net realisable value. Valuation allow-
ances are charged for obsolete inventories and slow-moving goods. Non-controlling interests
Non-controlling interests are the proportionate minority interests
Government grants in the equity of subsidiaries and are recognised at their carrying
In accordance with IAS20, government grants are recognised at amount. If an interest is acquired from, or sold to, other share
their fair value only when there is reasonable assurance that the holders without this impacting the existing control relationship, this
conditions attaching to them will be complied with and that the is presented as an equity transaction. The difference between the
grants will be received. The grants are reported in the income state- proportionate net assets acquired from, or sold to, another share-
ment and are generally recognised as income over the periods in holder/other shareholders and the purchase price is recognised in
which the costs they are intended to compensate are incurred. other comprehensive income. If non-controlling interests are in-
Where the grants relate to the purchase or production of assets, they creased by the proportionate net assets, no goodwill is allocated to
are reported as deferred income and recognised in the income state- the proportionate net assets.
ment over the useful lives of the assets.
Share-based payments to executives
Assets held for sale and liabilities associated with assets held for sale Equity-settled share-based payment transactions are measured at
Assets held for sale are assets available for sale in their present con- fair value at the grant date. The fair value of the obligation is recog-
dition and whose sale is highly probable. The sale must be expected nised in staff costs over the vesting period. The fair value of equity-
to qualify for recognition as a completed sale within one year of the settled share-based payment transactions is determined using in-
date of classification. Assets held for sale may consist of individual ternationally recognised valuation techniques.
non-current assets, groups of assets (disposal groups), components Stock appreciation rights are measured on the basis of an op-
of an entity or a subsidiary acquired exclusively for resale (discon- tion pricing model in accordance with IFRS2. The stock appreci
tinued operations). Liabilities intended to be disposed of together ation rights are measured on each reporting date and on the settle-
with the assets in a single transaction form part of the disposal ment date. The amount determined for stock appreciation rights
group or discontinued operation and are also reported separately that will probably be exercised is recognised pro rata in income
as liabilities associated with assets held for sale. Assets held for sale under staff costs to reflect the services rendered as consideration
are no longer depreciated or amortised, but are recognised at the during the vesting period (lock-up period). A provision is recog-
lower of their fair value less costs to sell and the carrying amount. nised for the same amount.

144
Retirement plans Defined contribution retirement plans for the groups

There are arrangements (plans) in many countries under which the hourly workers and salaried employees
Group grants post-employment benefits to its hourly workers and Contributions to defined contribution retirement plans for the
salaried employees. These benefits include pensions, lump-sum Groups hourly workers and salaried employees are also reported
payments on retirement and other post-employment benefits and under staff costs.
are referred to as retirement benefits, pensions and similar benefits, This also includes contributions to certain multi-employer
or simply pensions, in these disclosures. A distinction must be made plans which are basically defined benefit plans, especially in the USA
between defined benefit and defined contribution plans. and the Netherlands. However, the relevant institutions do not pro-
vide the participating companies with sufficient information to use
The Groups defined benefit retirement plans defined benefit accounting. The plans are therefore accounted for
Defined benefit obligations are measured using the projected unit as if they were defined contribution plans.
credit method prescribed by IAS19. This involves making certain Regarding these multi-employer plans in the USA, contribu-
actuarial assumptions. Most of the defined benefit retirement plans tions are made based on collective agreements between the em-
are at least partly funded via external plan assets. The remaining net ployer and the local union. There is no employer liability to any of
liabilities are funded by provisions for pensions and similar obli the plans beyond the normal bargained contribution rates except in
gations; net assets are presented separately as pension assets. Where the event of a withdrawal meeting specified criteria or in the event
necessary, an asset ceiling must be applied when recognising pen- of liability for other entities obligations as governed by US federal
sion assets. With regard to the cost components, the service cost is law. The expected employer contributions to the funds for 2016 are
recognised in staff costs, the net interest cost in net financial in- 35million (actual employer contributions in the reporting year:
come/net finance costs and any remeasurement outside profit and 32million, in the previous year: 25million). Some of the plans
loss in other comprehensive income. in which Deutsche Post DHL Group participates are under-
fundedaccording to information provided by the funds. There is
Defined contribution retirement plans for civil servant no information from the plans that would indicate any change
employees inGermany fromthecontribution rates set by current collective agreements.
In accordance with statutory provisions, Deutsche Post AG pays Deutsche Post DHL Group does not represent a significant level
contributions to retirement plans in Germany which are defined toany fund in terms of contributions, with the exception of one
contribution retirement plans for the company. These contributions fundwhere the Group represents the largest employer in terms of
are recognised in staff costs. contributions.
Under the provisions of the Gesetz zum Personalrecht der Regarding one multi-employer plan in the Netherlands, cost
Beschftigten der frheren Deutschen Bundespost (PostPersRG coverage-based contribution rates are set annually by the board of
Former Deutsche Bundespost Employees Act) Deutsche Post AG the pension fund with the involvement of the Central Bank of the
provides benefit and assistance payments through the Postbeamten- Netherlands; the individual contribution rates are equal for all par-
versorgungskasse (PVK) (postal civil servant pension fund) at the ticipating employers and employees. There is no liability for the
Bundesanstalt fr Post und Telekommunikation (BAnstPT German employer towards the fund beyond the contributions set, even in
federal post and telecommunications agency) to retired employees the case of withdrawal or obligations not met by other entities. Any
or their surviving dependants who are entitled to benefits on the subsequent underfunding ultimately results in the rights of mem-
basis of a civil service appointment. The amount of bers being cut and/or no indexation of their rights. The expected
Deutsche Post AGs payment obligations is governed by section 16 employer contributions to the fund for 2016 are 21million (actual
of the PostPersRG. Since 2000, this Act has obliged Deutsche Post AG employer contributions in the reporting year: 21million, in the
to pay into the PVK an annual contribution of 33% of the gross previous year: 21million). As at 31December2015, the coverage
compensation of its active civil servants and the notional gross com- degree of plan fundingwas higher than 100%, but lower than 105%
pensation of civil servants on leave of absence who are eligible for (a required minimum), according to information provided by the
a pension. fund. Deutsche Post DHL Group does not represent a significant
Under section 16 of the PostPersRG, the federal government portion of the fund in terms of contributions.
makes good the difference between the current payment obligations
of the PVK on the one hand, and the funding companies current
contributions or other return on assets on the other, and guarantees
that the PVK is able at all times to meet the obligations it has as-
sumed in respect of its funding companies. Insofar as the federal
government makes payments to the PVK under the terms of this
guarantee, it cannot claim reimbursement from Deutsche Post AG.

145
Other provisions issue amount over the term of the bond using the effective interest
Other provisions are recognised for all legal or constructive obliga- method (unwinding of discount). The value of the call option,
tions to third parties existing at the balance sheet date that have which allows Deutsche Post AG to redeem the bond early if a spe
arisen as a result of past events, that are expected to result in an cified share price is reached, is attributed to the debt component in
outflow of future economic benefits and whose amount can be accordance with IAS32.31. The conversion right is classified as an
measured reliably. They represent uncertain obligations that are equity derivative and is reported in capital reserves. The carrying
carried at the best estimate of the expenditure required to settle the amount is calculated by assigning to the conversion right the re
obligation. Provisions with more than one year to maturity are dis- sidual value that results from deducting the amount calculated sep-
counted at market rates of interest that reflect the region and time arately for the debt component from the fair value of the instrument
to settlement of the obligation. The discount rates used in the finan- as a whole. The transaction costs are deducted on a proportion-
cial year were between 0.0% and 13.75% (previous year: 0.0% and atebasis.
12%). The effects arising from changes in interest rates are recog-
nised in net financial income/net finance cost. Liabilities
Provisions for restructurings are only established in accord- Trade payables and other liabilities are carried at amortised cost.
ance with the aforementioned criteria for recognition if a detailed, The fair value of the liabilities corresponds more or less to their
formal restructuring plan has been drawn up and communicated carrying amount.
to those affected.
The technical reserves (insurance) consist mainly of outstand- Deferred taxes
ing loss reserves and IBNR (incurred but not reported claims) re- In accordance with IAS12, deferred taxes are recognised for tempor
serves. Outstanding loss reserves represent estimates of obligations ary differences between the carrying amounts in the IFRS financial
in respect of actual claims or known incidents expected to give rise statements and the tax accounts of the individual entities. Deferred
to claims, which have been reported to the company but which have tax assets also include tax reduction claims which arise from the
yet to be finalised and presented for payment. Outstanding loss re- expected future utilisation of existing tax loss carryforwards and
serves are based on individual claim valuations carried out by the which are likely to be realised. The recoverability of the tax reduc-
company or its ceding insurers. IBNR reserves represent estimates tion claims is assessed on the basis of each entitys earnings projec-
of obligations in respect of incidents taking place on or before the tions which are derived from the Group projections and take any
balance sheet date that have not been reported to the company. Such tax adjustments into account. The planning horizon is five years.
reserves also include provisions for potential errors in settling out- In compliance with IAS12.24 (b) and IAS12.15 (b), deferred tax
standing loss reserves. The company carries out its own assessment assets or liabilities were only recognised for temporary differences
of ultimate loss liabilities using actuarial methods and also commis- between the carrying amounts in the IFRS financial statements and
sions an independent actuarial study of these each year in order to in the tax accounts of Deutsche Post AG where the differences arose
verify the reasonableness of its estimates. after 1January1995. No deferred tax assets or liabilities are recog-
nised for temporary differences resulting from initial differences in
Financial liabilities the opening tax accounts of Deutsche Post AG as at 1January1995.
On initial recognition, financial liabilities are carried at fair value Further details on deferred taxes from tax loss carryforwards can
less transaction costs. The price determined on a price-efficient and be found in Note 30.
liquid market or a fair value determined using the treasury risk In accordance with IAS12, deferred tax assets and liabilities are
management system deployed within the Group is taken as the fair calculated using the tax rates applicable in the individual countries
value. In subsequent periods the financial liabilities are measured at the balance sheet date or announced for the time when the de-
at amortised cost. Any differences between the amount received and ferred tax assets and liabilities are realised. The tax rate applied to
the amount repayable are recognised in income over the term of the German Group companies is unchanged at 30.2%. It comprises the
loan using the effective interest method. corporation tax rate plus the solidarity surcharge, as well as a
municipal trade tax rate that is calculated as the average of the dif-
Convertible bond on Deutsche Post AG Shares ferent municipal trade tax rates. Foreign Group companies use their
The convertible bond on Deutsche Post AG shares is split into an individual income tax rates to calculate deferred tax items. The
equity and a debt component, in line with the contractual arrange- income tax rates applied for foreign companies amount to up to 38%
ments. The debt component, less the transaction costs, is reported (previous year: 40%).
under financial liabilities (bonds), with interest added up to the

146
Income taxes The Group has operating activities around the globe and is sub-
Income tax assets and liabilities are measured at the amounts for ject to local tax laws. Management can exercise judgement when
which repayments from, or payments to, the tax authorities are calculating the amounts of current and deferred taxes in the relevant
expected to be received or made. Tax-related fines are recognised countries. Although management believes that it has made a rea-
in income taxes if they are included in the calculation of income tax sonable estimate relating to tax matters that are inherently uncer-
liabilities, due to their inclusion in the tax base and/or tax rate. tain, there can be no guarantee that the actual outcome of these
uncertain tax matters will correspond exactly to the original esti-
Contingent liabilities mate made. Any difference between actual events and the estimate
Contingent liabilities represent possible obligations whose exist- made could have an effect on tax liabilities and deferred taxes in the
ence will be confirmed only by the occurrence, or non-occurrence, period in which the matter is finally decided. The amount recog-
of one or more uncertain future events not wholly within the con- nised for deferred tax assets could be reduced if the estimates of
trol of the enterprise. Contingent liabilities also include certain planned taxable income or the tax benefits achievable as a result of
obligations that will probably not lead to an outflow of resources tax planning strategies are revised downwards, or in the event that
embodying economic benefits, or where the amount of the outflow changes to current tax laws restrict the extent to which future tax
of resources embodying economic benefits cannot be measured benefits can be realised.
with sufficient reliability. In accordance with IAS37, contingent Goodwill is regularly reported in the Groups balance sheet as
liabilities are not recognised as liabilities, Note 49. a consequence of business combinations. When an acquisition is
initially recognised in the consolidated financial statements, all
8 Exercise of judgement in applying the accounting policies identifiable assets, liabilities and contingent liabilities are measured
The preparation of IFRS-compliant consolidated financial state- at their fair values at the date of acquisition. One of the most import
ments requires the exercise of judgement by management. All esti- ant estimates this requires is the determination of the fair values of
mates are reassessed on an ongoing basis and are based on historical these assets and liabilities at the date of acquisition. Land, buildings
experience and expectations with regard to future events that appear and office equipment are generally valued by independent experts,
reasonable under the given circumstances. For example, this applies whilst securities for which there is an active market are recognised
to assets held for sale. In this case, it must be determined whether at the quoted exchange price. If intangible assets are identified in
the assets are available for sale in their present condition and the course of an acquisition, their measurement can be based on the
whether their sale is highly probable. If this is the case, the assets opinion of an independent external expert valuer, depending on the
and the associated liabilities are reported and measured as assets type of intangible asset and the complexity involved in determining
held for sale and liabilities associated with assets held for sale. its fair value. The independent expert determines the fair value us-
ing appropriate valuation techniques, normally based on expected
Estimates and assessments made by management future cash flows. In addition to the assumptions about the develop
The preparation of the consolidated financial statements in accord- ment of future cash flows, these valuations are also significantly
ance with IFRSs requires management to make certain assumptions affected by the discount rates used.
and estimates that may affect the amounts of the assets and liabil Impairment testing for goodwill is based on assumptions with
ities included in the balance sheet, the amounts of income and ex- respect to the future. The Group carries out these tests annually and
penses, and the disclosures relating to contingent liabilities. Ex also whenever there are indications that goodwill has become im-
amples of the main areas where assumptions, estimates and the paired. The recoverable amount of the CGU must then be calculated.
exercise of management judgement occur are the recognition of This amount is the higher of fair value less costs to sell and value in
provisions for pensions and similar obligations, the calculation of use. Determining value in use requires assumptions and estimates
discounted cash flows for impairment testing and purchase price to be made with respect to forecasted future cash flows and the
allocations, taxes and legal proceedings. discount rate applied. Although management believes that the as-
Disclosures regarding the assumptions made in connection sumptions made for the purpose of calculating the recoverable
with the Groups defined benefit retirement plans can be found in amount are appropriate, possible unforeseeable changes in these
Note 42. assumptions e.g. a reduction in the EBIT margin, an increase in
the cost of capital or a decline in the long-term growth rate could
result in an impairment loss that could negatively affect the Groups
net assets, financial position and results of operations.

147
Pending legal proceedings in which the Group is involved are 9 Consolidation methods
disclosed in Note 51. The outcome of these proceedings could The consolidated financial statements are based on the IFRS finan-
have a significant effect on the net assets, financial position and cial statements of Deutsche Post AG and the subsidiaries, joint op-
results of operations of the Group. Management regularly analyses erations and investments accounted for using the equity method
the information currently available about these proceedings and included in the consolidated financial statements and prepared in
recognises provisions for probable obligations including estimated accordance with uniform accounting policies as at 31Decem-
legal costs. Internal and external legal advisers participate in mak- ber2015.
ing this assessment. In deciding on the necessity for a provision, Acquisition accounting for subsidiaries included in the consoli
management takes into account the probability of an unfavourable dated financial statements uses the purchase method of accounting.
outcome and whether the amount of the obligation can be estimated The cost of the acquisition corresponds to the fair value of the assets
with sufficient reliability. The fact that an action has been launched given up, the equity instruments issued and the liabilities assumed
or a claim asserted against the Group, or that a legal dispute has at the transaction date. Acquisition-related costs are recognised as
been disclosed in the Notes, does not necessarily mean that a pro- expenses. Contingent consideration is recognised at fair value at the
vision is recognised for the associated risk. date of initial consolidation.
All assumptions and estimates are based on the circumstances The assets and liabilities, as well as income and expenses, of
prevailing and assessments made at the balance sheet date. For the joint operations are included in the consolidated financial state-
purpose of estimating the future development of the business, a ments in proportion to the interest held in these operations, in
realistic assessment was also made at that date of the economic accordance with IFRS11. Accounting for the joint operators share
environment likely to apply in the future to the different sectors and of the assets and liabilities, as well as recognition and measurement
regions in which the Group operates. In the event of developments of goodwill, use the same methods as applied to the consolidation
in this general environment that diverge from the assumptions of subsidiaries.
made, the actual amounts may differ from the estimated amounts. In accordance with IAS28, joint ventures and companies on
In such cases, the assumptions made and, where necessary, the which the parent can exercise significant influence (associates) are
carrying amounts of the relevant assets and liabilities are adjusted accounted for in accordance with the equity method using the pur-
accordingly. chase method of accounting. Any goodwill is recognised under
At the date of preparation of the consolidated financial state- investments accounted for using the equity method.
ments, there is no indication that any significant change in the as- In the case of step acquisitions, the equity portion previously
sumptions and estimates made will be required, so that on the basis held is remeasured at the fair value applicable on the date of acqui-
of the information currently available it is not expected that there sition and the resulting gain or loss recognised in profit or loss.
will be significant adjustments in financial year 2016 to the carry- Intra-group revenue, other operating income, and expenses as
ingamounts of the assets and liabilities recognised in the financial well as receivables, liabilities and provisions between companies
statements. that are consolidated fully or on a proportionate basis are elim
inated. Intercompany profits or losses from intra-group deliveries
and services not realised by sale to third parties are eliminated. Un-
realised gains and losses from business transactions with invest-
ments accounted for using the equity method are eliminated on a
proportionate basis.

148
SEGMENT REPORTING
10 Segment reporting
Segments by division
m Global Forwarding, Corporate Center/
1Jan. to 31Dec. 2014 2015 2014 2015 2014 2015 2014 2015 2014 2
2015 2014 2
2015 2014 2015
External revenue 15,546 15,996 12,116 13,283 14,201 14,183 14,627 15,681 140 87 0 0 56,630 59,230
Internal revenue 140 135 375 378 723 707 110 110 1,205 1,182 2,553 2,512 0 0
Total revenue 15,686 16,131 12,491 13,661 14,924 14,890 14,737 15,791 1,345 1,269 2,553 2,512 56,630 59,230
Profit/loss from
operating activities
(EBIT) 1,298 1,103 1,260 1,391 293 181 465 449 352 351 1 0 2,965 2,411
of whichnetin
comefrominvest-
ments accounted
for using the equity
method 0 0 1 1 2 1 2 2 0 0 0 0 5 2
Segment assets 5,384 5,576 8,644 9,352 8,488 8,004 6,401 6,405 1,630 1,541 200 179 30,347 30,699
of whichinvest-
ments accounted
for using the equity
method 6 1 43 46 24 25 2 3 0 0 0 1 75 76
Segment liabilities 2,611 2,814 2,985 3,197 3,188 3,061 3,132 3,051 1,007 992 166 142 12,757 12,973
Capex 415 533 571 856 207 123 304 318 380 192 1 2 1,876 2,024
Depreciation
andamortisation 335 318 355 391 88 86 267 306 217 229 1 0 1,261 1,330
Impairment
losses 5 1 107 13 0 310 1 7 7 4 0 0 120 335
Total depreciation,
amortisation and
impairment losses 340 319 462 404 88 396 268 313 224 233 1 0 1,381 1,665
Other non-cash
expenses 280 330 177 184 121 169 91 153 80 58 0 0 749 894
Employees 164,582 169,430 73,009 79,318 44,311 44,588 146,400 145,827 12,507 10,747 0 0 440,809 449,910
1
Including rounding.
2
Adjustment of prior-period amounts due to reorganisation in accordance with Strategy 2020.
The segment liabilities include the non-interest bearing provisions.

The employee numbers are expressed as average numbers of FTEs.
Information about geographical regions

m Europe
Germany (excluding Germany) Americas Asia Pacific Other regions Group
1Jan. to 31Dec. 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015
External revenue 17,367 17,493 18,501 19,013 9,375 10,294 9,143 10,063 2,244 2,367 56,630 59,230
Non-current assets 5,532 5,298 6,915 7,264 3,515 3,876 3,289 3,553 373 390 19,624 20,381
Capex 1,092 911 300 574 223 267 191 223 70 49 1,876 2,024

Consolidated Financial Statements NOTES Segment reporting
149
10.1 Segment reporting disclosures ciated with mail delivery. In addition to Germany, it also offers
Deutsche Post DHL Group reports four operating segments; these domestic parcel services in other markets. It is divided into two
are managed independently by the responsible segment manage- business units: Post, and eCommerce - Parcel.
ment bodies in line with the products and services offered and the
brands, distribution channels and customer profiles involved. Com- EXPRESS
ponents of the entity are defined as a segment on the basis of the The Express division offers time-definite courier and express ser-
existence of segment managers with bottom-line responsibility who vices to business and private customers. The division comprises the
report directly to Deutsche Post DHL Groups top management. Express Europe, Express Americas, Express Asia Pacific and Express
External revenue is the revenue generated by the divisions from MEA (Middle East and Africa) business units.
non-Group third parties. Internal revenue is revenue generated with
other divisions. If comparable external market prices exist for ser- GLOBAL FORWARDING, FREIGHT
vices or products offered internally within the Group, these market The activities of the Global Forwarding, Freight division comprise
prices or market-oriented prices are used as transfer prices (arms the transportation of goods by rail, road, air and sea. The divisions
length principle). The transfer prices for services for which no ex- business units are Global Forwarding and Freight.
ternal market exists are generally based on incremental costs.
The expenses for IT services provided in the IT service centres SUPPLY CHAIN
are allocated to the divisions by their origin. The additional costs The Supply Chain division delivers customised logistics solutions to
resulting from Deutsche Post AGs universal postal service obliga- its customers based on globally standardised modular components
tion (nationwide retail outlet network, delivery every working day), including warehousing, transport and value-added services. In add
and from its obligation to assume the compensation structure as the ition, it offers specialised Business Process Outsourcing (BPO) and
legal successor to Deutsche Bundespost, are allocated to the PeP marketing communications solutions tailored to customers needs.
division.
As part of the central management of currency risk, Corporate In addition to the reportable segments given above, segment report-
Treasury is responsible for deciding on the central absorbtion of ing comprises the following categories:
fluctuations between projected and actual exchange rates on the
basis of division-specific agreements. Corporate Center/Other
In keeping with internal reporting, capital expenditure (capex) Corporate Center/Other comprises Global Business Services (GBS),
is disclosed. Additions to intangible assets net of goodwill and to the Corporate Center, non-operating activities and other business
property, plant and equipment are reported in the capex figure. activities. The profit/loss generated by GBS is allocated to the oper-
Depreciation, amortisation and impairment losses relate to the seg- ating segments, whilst its assets and liabilities remain with GBS
ment assets allocated to the individual divisions. Other non-cash (asymmetrical allocation).
expenses relate primarily to expenses from the recognition of pro-
visions. Consolidation
The profitability of the Groups operating areas is measured as The data for the divisions are presented following consolidation of
profit from operating activities (EBIT). interdivisional transactions. The transactions between the divisions
are eliminated in the Consolidation column.
10.2 Segments by division
Reflecting the Groups predominant organisational structure, the 10.3 Information about geographical regions
primary reporting format is based on the divisions. The Group dis- The main geographical regions in which the Group is active are
tinguishes between the following divisions: Germany, Europe, the Americas, Asia Pacific and Other regions.
External revenue, non-current assets and capex are disclosed for
Post - eCommerce - Parcel these regions. Revenue, assets and capex are allocated to the indi-
The Post - eCommerce - Parcel division handles both domestic and vidual regions on the basis of the domicile of the reporting entity.
international mail and is a specialist in dialogue marketing, nation- Non-current assets primarily comprise intangible assets, property,
wide press distribution services and all the electronic services asso- plant and equipment and other non-current assets.

150
10.4 Reconciliation of segment amounts
Reconciliation of segment amounts to consolidated amounts
Reconciliation to the income statement

m Reconciliation
Total for reportable segments Corporate Center/Other to Group/Consolidation1 Consolidated amount
2014 2
2015 2014 2
2015 2014 2
2015 2014 2015
External revenue 56,490 59,143 140 87 0 0 56,630 59,230
Internal revenue 1,348 1,330 1,205 1,182 2,553 2,512 0 0
Total revenue 57,838 60,473 1,345 1,269 2,553 2,512 56,630 59,230
Other operating income 1,916 2,333 1,318 1,340 1,218 1,279 2,016 2,394
Materials expense 33,422 34,583 1,303 1,287 2,683 2,700 32,042 33,170
Staff costs 17,254 18,749 944 902 9 11 18,189 19,640
Depreciation, amortisation and impairment
losses 1,158 1,432 224 233 1 0 1,381 1,665
Other operating expenses 4,609 5,282 544 538 1,079 1,080 4,074 4,740
Net income from investments accounted for
using the equity method 5 2 0 0 0 0 5 2
Profit/loss from operating activities (EBIT) 3,316 2,762 352 351 1 0 2,965 2,411
Profit before income taxes 2,577 2,057
Income taxes 400 338
Consolidated net profit for the period 2,177 1,719
of which attributable to
Deutsche Post AG shareholders 2,071 1,540
Non-controlling interests 106 179
1
Including rounding.
2
Adjustment of prior-period amounts due to reorganisation in accordance with Strategy 2020.
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. The interest-bear-
tax assets, deferred taxes, cash and cash equivalents as well as add ing components of the provisions and liabilities as well as income
itional interest-bearing asset components are deducted. tax liabilities and deferred taxes are deducted.
Reconciliation of segment assets Reconciliation of segment liabilities

m m
2014 2015 2014 2015
Total assets 36,979 37,870 Total equity and liabilities 36,979 37,870
Investment property 32 25 Equity 9,580 11,295
Non-current financial assets 1,265 1,009 Consolidated liabilities 27,399 26,575
Other non-current assets 88 151 Non-current provisions 8,866 7,875
Deferred tax assets 1,752 2,007 Non-current liabilities 4,910 4,812
Income tax assets 172 197 Current provisions 1 14
Receivables and other current assets 1 0 Current liabilities 865 901
Current financial assets 344 174 Segment liabilities 12,757 12,973
Cash and cash equivalents 2,978 3,608 of which Corporate Center/Other 1,007 992
Segment assets 30,347 30,699 Total for reportable segments 11,916 12,123
of which Corporate Center/Other 1,630 1,541 Consolidation1 166 142
Total for reportable segments 28,917 29,337
Consolidation1 200 179
1
Including rounding.
1
Including rounding.

Consolidated Financial Statements NOTES Segment reporting Income statement disclosures
151
INCOME STATEMENT DISCLOSURES Of the gains on the disposal of non-current assets, 99million relates
to the sale of the shares held in Sinotrans Ltd., China, and 74million
11 Revenue to the sale of shares in UK companies Kings Cross Central Property
Revenue rose by 2,600million (4.6%) from 56,630million to Trust and Kings Cross Central General PartnerLtd.
59,230million. The increase was due to the following factors: The increase in income from currency translation is largely due
to the change in the exchange rate for the euro.
Factors affecting revenue increase In the course of the exit from the US domestic Express business
m in 2009, impairment losses had been recognised on non-current
2015 assets. Following the reorientation of the business and the success-
Organic growth 220 ful conclusion of the Express strategy 20102015, the assets were
Portfolio changes 0 again tested for impairment, resulting in the reversal of impairment
Currency translation effects 2,820 losses in the amount of 90million.
Total 2,600
Income from the reversal of provisions in financial year 2015
relates, amongst other things, to a reduction in a provision for
HR-related risks and the reassessment of the probability that a tax
The terms of the procurement and logistics contract with the UK obligation in Asia would occur, see also Note 49. The latter fell to
National Health Service (NHS), United Kingdom, which were a level that allowed the relevant provision to be reversed. In the
revised as of the fourth quarter of 2015, led to a change in the rec- previous year, the main factor influencing income from the reversal
ognition of revenue and expenses. Revenue decreased by 465mil- of provisions was a change in the estimated settlement payment
lion as a result. Fuel surcharges also declined. obligations assumed in the context of the restructuring measures in
As in the prior period, there was no revenue in financial year the USA, Note 49.
2015 that was generated on the basis of barter transactions. Subsidies relate to grants for the purchase or production of
The further classification of revenue by division and the allo- assets. The grants are reported as deferred income and recognised
cation of revenue to geographical regions are presented in the seg- in the income statement over the useful lives of the assets.
ment reporting. Miscellaneous other operating income includes a large number
of smaller individual items.
12 Other operating income
m
2014 2015
Gains on disposal of non-current assets 64 338
Income from currency translation differences 171 280
Reversals of impairment losses on receivables
andother assets 97 217
Income from the reversal of provisions 308 215
Insurance income 168 184
Income from fees and reimbursements 159 145
Income from work performed and capitalised 128 122
Commission income 126 112
Rental and lease income 124 111
Income from the derecognition of liabilities 53 81
Income from the remeasurement of liabilities 126 76
Income from derivatives 68 33
Income from prior-period billings 38 30
Income from loss compensation 28 25
Subsidies 11 14
Recoveries on receivables previously written off 9 10
Miscellaneous 338 401
Other operating income 2,016 2,394

152
13 Materials expense 14 Staff costs/employees
m m
2014 2015 2014 2015
Wages, salaries and compensation 14,583 15,723
Cost of raw materials, consumables and supplies,
and of goods purchased and held for resale of which expenses under Share Matching
Goods purchased and held for resale 2,052 1,761 Scheme1 82 99
Aircraft fuel 1,338 1,047 of which expenses under Performance
SharePlan2 3 10
Fuel 817 755
of which expenses under 2006 SAR Plan/LTIP3 105 33
Packaging material 354 421
Social security contributions 2,164 2,300
Spare parts and repair materials 96 110
Retirement benefit expenses 965 1,031
Office supplies 62 60
Expenses for other employee benefits 477 586
Other expenses 112 136
Staff costs 18,189 19,640
4,831 4,290
Cost of purchased services

1
Equity-settled and cash-settled.
Transportation costs 18,814 19,754
2
Equity-settled.
3
Cash-settled.
Cost of temporary staff and services 2,124 2,521
Expenses from non-cancellable leases 1,845 2,096
Maintenance costs 1,016 1,117 The rise in staff costs is primarily attributable to exchange rate
IT services 617 612 movements. The increase in employee numbers and salary adjust-
Commissions paid 462 557 ments also had an impact on staff costs.
Expenses from cancellable leases 478 493 Assuming that rights to shares are converted in full in the
Other lease expenses (incidental expenses) 265 393 respective subsequent year, a maximum of 72million of the ex-
Other purchased services 1,590 1,337 penses under the Share Matching Scheme in the reporting year
27,211 28,880 (previous year: 55million) is attributable to cash-settled share-
Materials expense 32,042 33,170
based payments. The obligation at the balance sheet date was
56million (previous year: 55million). In addition, as in the pre-
vious year, expenses of 27million were incurred for equity-settled
The reduction in goods purchased and held for resale is largely at- share-based payments.
tributable to the revised terms of the procurement and logistics con- Staff costs relate mainly to wages, salaries and compensation,
tract with the UK National Health Service (NHS), United Kingdom. as well as all other benefits paid to employees of the Group for their
The increase in materials expense is primarily due to currency services in the year under review. Social security contributions re-
effects. This affected transportation costs in particular. late in particular to statutory social security contributions paid by
Provisions of 37million were recognised in relation to the employers.
write-down of the NFE programme. They relate to unavoidable ex- Retirement benefit expenses include the service cost related to
penses from ongoing contracts where the obligations exceed the the defined benefit retirement plans. Detailed information can be
economic benefits. The provisions were reversed in the amount of found in Note 42. These expenses also include contributions to
11million in the fourth quarter, based on agreements with the im- defined contribution retirement plans for civil servants in Germany
plementation partner. The associated income was recognised in in the amount of 516million (previous year: 531million), as well
other operating expenses. as for the Groups hourly workers and salaried employees particu-
Other expenses include a large number of individual items. larly in the UK, the USA and the Netherlands in the amount of
317million (previous year: 276million).
The average number of Group employees in the year under
review, broken down by employee group, was as follows:
Employees (annual average)

Headcount
2014 2015
Hourly workers and salaried employees 440,973 451,882
Civil servants 37,963 35,669
Trainees 5,089 5,314
Employees 484,025 492,865

Consolidated Financial Statements NOTES Income statement disclosures
153
The employees of companies acquired or disposed of during the year 310million of the impairment losses relates to the NFE transform
under review were included rateably. Calculated as full-time equiva ation programme. Of the impairment losses in the Corporate
lents, the number of employees as at 31December2015 amounted Center/Other area, 3million mainly relates to land and buildings.
to 450,508 (previous year: 443,784). The number of employees at As in the previous year, the impairment losses in the Express seg-
joint operations included in the consolidated financial statements ment resulted mostly from aircraft and aircraft parts.
amounted to 208 on a proportionate basis (previous year: 202).
16 Other operating expenses
15 Depreciation, amortisation and impairment losses
m
m 2014 2015
2014 2015 Expenses for advertising and public relations 391 429
Amortisation of and impairment losses onintangible Cost of purchased cleaning and security services 319 357
assets, excluding impairment of goodwill 271 578 Travel and training costs 334 348
Insurance costs 268 335
Depreciation of and impairment losses on property,
plant and equipment Write-downs of current assets 249 302
Land and buildings (including leasehold Currency translation expenses 170 267
improvements) 174 179
Warranty expenses, refunds and compensation
Technical equipment and machinery 235 268 payments 245 266
Other equipment, operating and office Telecommunication costs 223 237
equipment 204 219
Other business taxes 219 231
Vehicle fleet, transport equipment 216 233
Office supplies 178 190
Aircraft 281 187
Consulting costs (including tax advice) 170 179
1,110 1,086
Entertainment and corporate hospitality expenses 151 169
1,381 1,664
Services provided by the Bundesanstalt fr Post
Depreciation of and impairment losses und Telekommunikation (German federal post
oninvestment property 0 1 andtelecommunications agency) 100 148
Impairment of goodwill 0 0 Expenses from derivatives 48 120
Depreciation, amortisation and impairment Customs clearance-related charges 88 114
losses 1,381 1,665
Legal costs 61 107
Contributions and fees 87 95
Voluntary social benefits 80 83
Depreciation, amortisation and impairment losses increased by Commissions paid 66 64
284million year-on-year to 1,665million. This was attributable Monetary transaction costs 42 47

Losses on disposal of assets 56 46
to the impairment losses on the NFE transformation programme.
Audit costs 32 38
Depreciation, amortisation and impairment losses include im-
Donations 21 24
pairment losses of 335million (previous year: 120million) that
Expenses from prior-period billings 24 14
are attributable to the segments as follows:
Miscellaneous 452 530
Other operating expenses 4,074 4,740
Impairment losses

m
2014 2015
Taxes other than income taxes are either recognised in the related
Software 5 0 expense item or, if no specific allocation is possible, in other oper-
Property, plant and equipment 0 1 ating expenses.
Miscellaneous other operating expenses include a large num-
Express
Property, plant and equipment 107 13 ber of smaller individual items.

Software 0 310 17 Net income from investments accounted for using the equity
method
Supply Chain
Software 0 3
Property, plant and equipment 1 4 m
2014 2015
Corporate Center/Other
Software 5 0 Net income from associates 5 2
Property, plant and equipment 2 3 Net income from joint ventures 0 0
Investment property 0 1 Net income from investments accounted for

using the equity method 5 2
Impairment losses 120 335

154
18 Net finance costs Reconciliation

m
m 2014 2015
2014 2015 Profit before income taxes 2,577 2,057
Expected income taxes 778 621
Financial income
Deferred tax assets not recognised for initial
Interest income 43 46
differences 13 5
Income from other equity investments and financial
Deferred tax assets of German Group companies
assets 2 4
not recognised for tax loss carryforwards and
Other financial income 29 44 temporary differences 346 349
74 94 Deferred tax assets of foreign Group companies
notrecognised for tax loss carryforwards and
Finance costs
temporary differences 59 90
Interest expenses 358 335
Effect of current taxes from previous years 4 10
of which unwinding of discounts for net pension
provisions and other provisions 221 189 Tax-exempt income and non-deductible expenses 117 204
Other finance costs 65 75 Differences in tax rates at foreign companies 73 63
423 410 Income taxes 400 338
Foreign currency result 39 38
The difference from deferred tax assets not recognised for initial
differences is due to temporary differences between the carrying
The 34million change in net finance costs to 354million is pri- amounts in the IFRS financial statements and in the tax accounts of
marily due to the decrease in interest cost added back to provisions. Deutsche Post AG that result from initial differences in the opening
Net finance costs include interest income of 46million (pre- tax accounts as at 1January1995. In accordance with IAS 12.15(b)
vious year: 43million) as well as interest expenses of 335million and IAS12.24(b), the Group did not recognise any deferred tax
(previous year: 358million). These result from financial assets and assets in respect of these temporary differences, which related
liabilities that were not measured at fair value through profit or loss. mainly to property, plant and equipment as well as to provisions for
Information on the unwinding of discounted net pension pro- pensions and similar obligations. The remaining temporary differ-
visions can be found in Note 42.6. ences between the carrying amounts in the IFRS financial state-
ments and in the opening tax accounts amounted to 334million
19 Income taxes as at 31December2015 (previous year: 319million).
The effects from deferred tax assets of German Group com
m panies not recognised for tax loss carryforwards and temporary
2014 2015 differences relate primarily to Deutsche Post AG and members of its
Current income tax expense 604 625 consolidated tax group. Effects from deferred tax assets of foreign
Current recoverable income tax 56 63 companies not recognised for tax loss carryforwards and temporary
548 562 differences relate primarily to the Americas region.
Deferred tax income (previous year: expense) 252million (previous year: 123million) of the effects from
fromtemporary differences 53 75
deferred tax assets not recognised for tax loss carryforwards and
Deferred tax income from tax loss carryforwards 201 149
148 224
temporary differences relates to the reduction of the effective in-
Income taxes 400 338 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. In addition, the recognition of deferred
tax assets previously not recognised for tax loss carryforwards and
The reconciliation to the effective income tax expense is shown of deductible temporary differences from a prior period reduced
below, based on consolidated net profit before income taxes and the the deferred tax expense by 267million (previous year: 317mil-
expected income tax expense: lion). Effects from unrecognised deferred tax assets amounting to
29million (previous year: 4million, write-down) were due to
avaluation allowance recognised for a deferred tax asset. Other
effects from unrecognised deferred tax assets primarily relate to tax
loss carryforwards for which no deferred taxes were recognised.

Consolidated Financial Statements NOTES Income statement disclosures
155
In financial year 2015, a change in the tax rate had no effect on Basic earnings per share
German Group companies. The change in the tax rate in some
foreign tax jurisdictions did not lead to any significant effects. 2014 2015
The effective income tax expense includes prior-period tax ex- Consolidated net profit for
penses from German and foreign companies in the amount of theperiod attributable to
DeutschePost AG shareholders m 2,071 1,540
10million (tax expense) (previous year: income of 4million).
Weighted average number
The following table presents the tax effects on the components ofshares outstanding number 1,209,507,913 1,210,620,132
of other comprehensive income: Basic earnings per share 1.71 1.27
Other comprehensive income

m
Before taxes Income taxes After taxes To compute diluted earnings per share, the average number of shares
outstanding is adjusted for the number of all potentially d ilutive
2015
Change due to remeasurements shares. This item includes the executives rights to shares under the
ofnet pension provisions 833 65 768 Performance Share Plan and Share Matching Scheme share-based
IFRS3 revaluation reserve 0 0 0 payment systems (as at 31December2015: 5,423,718 shares; previous
IAS39 revaluation reserve 110 7 103
year: 6,745,501 shares) and the maximum number of ordinary shares
IAS39 hedging reserve 18 5 13
that can be issued on exercise of the conversion rights under the
Currency translation reserve 472 0 472
convertible bond issued on 6December2012. Consolidated net
Other changes in retained earnings 0 0 0
profit for the period attributable to Deutsche Post AG shareholders
Share of other comprehensive
income of investments accounted was increased by the amounts spent for the convertible bonds.
for using the equity method 5 0 5 Diluted earnings per share in the reporting period were 1.22
Other comprehensive income 1,182 53 1,129 (previous year: 1.64).
2014
Change due to remeasurements Diluted earnings per share
ofnet pension provisions 2,350 285 2,065
IFRS3 revaluation reserve 2 0 2
2014 2015
IAS39 revaluation reserve 112 10 102
Consolidated net profit for
IAS39 hedging reserve 92 27 65
theperiod attributable to
Currency translation reserve 454 0 454 DeutschePost AG shareholders m 2,071 1,540
Other changes in retained earnings 2 0 2 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 4 0 4
Adjusted consolidated net profit
Other comprehensive income 1,872 302 1,570 forthe period attributable to
Deutsche Post AG shareholders m 2,076 1,545
Weighted average number
ofshares outstanding number 1,209,507,913 1,210,620,132
20 Consolidated net profit for the period Potentially dilutive shares number 53,243,204 51,901,142
In financial year 2015, the Group generated consolidated net profit Weighted average number
ofshares for diluted earnings number 1,262,751,117 1,262,521,274
for the period of 1,719million (previous year: 2,177million). Of
Diluted earnings per share 1.64 1.22
this figure, 1,540million (previous year: 2,071million) was
attributable to Deutsche Post AG shareholders.
21 Non-controlling interests 23 Dividend per share

The net profit attributable to non-controlling interests increased by A dividend per share of 0.85 is being proposed for financial year
73million from 106million to 179million. 2015. Based on the 1,212,753,687 shares recorded in the commercial
register as at 31December2015, this corresponds to a dividend dis-
22 Earnings per share tribution of 1,031million. In the previous year the dividend
Basic earnings per share are computed in accordance with IAS33, amounted to 0.85 per share. Further details on the dividend dis-
Earnings per Share by dividing consolidated net profit by the aver- tribution can be found in Note 40.
age number of shares. Basic earnings per share for financial year
2015 were 1.27 (previous year: 1.71).

156
BALANCE SHEET DISCLOSURES
24 Intangible assets
24.1 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 1January2014 1,113 490 908 1,479 11,770 222 15,982
Additions from business combinations 1 0 0 0 2 0 3
Additions 18 0 0 70 0 212 300
Reclassifications 48 19 0 12 0 39 40
Disposals 30 0 0 53 2 4 89
Currency translation differences 1 35 67 26 477 1 607
Balance at 31December2014/1January2015 1,151 544 975 1,534 12,247 392 16,843
Additions 26 0 0 63 0 135 224
Disposals 12 0 0 69 4 311 396
Balance at 31December2015 1,240 579 1,039 1,634 12,704 90 17,286
Amortisation and impairment losses

Balance at 1January2014 893 447 592 1,121 1,097 0 4,150
Amortisation 87 0 54 120 0 0 261
Impairment losses 10 0 0 0 0 0 10
Reversals of impairment losses 0 0 0 0 0 0 0
Disposals 24 0 0 43 0 0 67
Balance at 31December2014/1January2015 979 478 690 1,204 1,138 2 4,491
Amortisation 80 0 53 131 0 0 264
Disposals 11 0 0 66 1 308 386
Balance at 31December2015 1,053 508 787 1,289 1,159 0 4,796
Carrying amount at 31December2015 187 71 252 345 11,545 90 12,490

Carrying amount at 31December2014 172 66 285 330 11,109 390 12,352
Of the total impairment losses of 310million recognised for the Other than goodwill, only brand names that are acquired in
NFE transformation program, 308million relates to assets under their entirety are considered to have indefinite useful lives.
development. This figure includes capitalised borrowing costs of
10million.
Purchased software, concessions, industrial rights, licences and
similar rights and assets are reported under purchased intangible
assets. Internally generated intangible assets relate to development
costs for internally developed software.

Consolidated Financial Statements NOTES Balance sheet disclosures
157
24.2 Allocation of goodwill to CGUs The cash flow projections are based on the detailed planning
for EBIT, depreciation/amortisation and investment planning
m adopted by management, as well as changes in net working capital,
2014 2015 and take both internal historical data and external macroeconomic
data into account. From a methodological perspective, the detailed
Total goodwill 11,109 11,545
planning phase covers a three-year planning horizon from 2016 to
Post - eCommerce - Parcel 906 934 2018. It is supplemented by a perpetual annuity representing the
Express 3,918 3,939 value added from 2019 onwards. This is calculated using a long-
term growth rate, which is determined for each CGU separately and
DHL Global Forwarding 3,919 4,163 which is shown in the table below. The growth rates applied are
DHL Freight 275 277 based on long-term real growth figures for the relevant economies,
growth expectations for the relevant sectors and long-term inflation
Supply Chain 2,091 2,232
forecasts for the countries in which the CGUs operate. The cash flow
DHL Supply Chain 1,645 n.a.
forecasts are based both on past experience and on the effects of the
Williams Lea 446 n.a.
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
The structure of the Supply Chain CGU was changed compared with logistics activities. Cost trend forecasts for the transportation net-
the previous year. Since they are no longer separately managed by work and services also have an impact on value in use.
top management, the DHL Supply Chain and Williams Lea CGUs The pre-tax cost of capital is based on the weighted average cost
were combined in accordance with IAS36. For reasons of compar of capital. The (pre-tax) discount rates for the individual CGUs and
ability, the prior-year figure was restated on a pro-forma basis. the growth rates assumed in each case for the perpetual annuity are
For the purposes of annual impairment testing in accordance shown in the following table:
with IAS36, the Group determines the recoverable amount of a CGU
on the basis of its value in use. This calculation is based on projec-
tions of free cash flows that are initially discounted at a rate corres
ponding to the post-tax cost of capital. Pre-tax discount rates are
then determined iteratively.
% Discount rates Growth rates
2014 2015 2014 2015
Supply Chain n.a. 9.0 n.a. 2.5

DHL Supply Chain 8.4 n.a. 2.5 n.a.
Williams Lea 7.8 n.a. 2.0 n.a.

DHL Freight 8.6 9.1 2.0 2.0
DHL Global Forwarding 8.3 8.9 2.5 2.5
Post - eCommerce - Parcel 8.3 8.1 0.5 0.5
Express 9.3 8.3 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.
established that the recoverable amounts for all CGUs exceed their These analyses which included varying the essential valuation
carrying amounts. No impairment losses were recognised on good- parameters within an appropriate range did not reveal any risk of
will in any of the CGUs as at 31December2015. impairment to goodwill.

158
25 Property, plant and equipment

25.1 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 1January2014 4,569 4,059 2,487 2,143 2,158 338 15,754
Additions 138 100 155 35 358 790 1,576
Disposals 172 206 200 465 261 17 1,321
Balance at 31December2014/1January2015 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 4,564 4,857 2,562 1,924 2,400 874 17,181
Depreciation and impairment losses

Balance at 1January2014 2,198 2,789 1,922 964 1,080 1 8,954
Depreciation 171 235 203 175 216 0 1,000
Disposals 106 190 192 446 229 0 1,163
Balance at 31December2014/1January2015 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 2,258 3,099 1,959 880 1,190 0 9,386
Carrying amount at 31December2015 2,306 1,758 603 1,044 1,210 874 7,795
Carrying amount at 31December2014 2,351 1,461 542 1,044 1,247 532 7,177
Advance payments relate only to advance payments on items of

property, plant and equipment for which the Group has paid
advances in connection with uncompleted transactions. Assets
under development relate to items of property, plant and equipment
in progress at the balance sheet date for whose production internal
or third-party costs have already been incurred.

159
25.2 Finance leases 26 Investment property

The following assets are carried as non-current assets resulting from The investment property largely comprises leased property encum-
finance leases: bered by heritable building rights, and developed and undeveloped
land.
m
2014 2015 m
Land and buildings 142 137 2014 2015
Technical equipment and machinery 2 2
Cost
Other equipment, operating and office equipment 12 24
At 1January 43 42
Aircraft 84 0
Additions 7 0
Vehicle fleet and transport equipment 2 1
Reclassifications 1 4
Finance leases 242 164
Disposals 8 8
Currency translation differences 1 1
At 31December 42 39
The aircraft leases were cancelled and the aircraft returned to the Depreciation
leasing partner. These aircraft were subsequently repurchased at At 1January 10 10
their carrying amount. Information on the corresponding liabilities Additions 0 0
can be found under financial liabilities, Note 44.2. Impairment losses 0 1
Disposals 0 0
Reclassifications 0 3
At 31December 10 14
Carrying amount at 31December 32 25
Rental income for investment property amounted to 2million

(previous year: 3million), whilst the related expenses were 1mil-
lion (previous year: 1million). The fair value amounted to 58mil-
lion (previous year: 65million).
27 Investments accounted for using the equity method

Investments accounted for using the equity method changed as
follows:
m Associates Joint ventures Total
2014 2015 2014 2015 2014 2015

Balance at 1January 62 69 6 6 68 75
Disposals 2 0 0 3 2 3
Impairment losses 0 0 0 2 0 2
Changes in Groups share of equity
Changes recognised in profit or loss 5 2 0 0 5 2
Profit distributions 0 1 0 0 0 1
Changes recognised in other comprehensive income 4 5 0 0 4 5
Balance at 31December 69 75 6 1 75 76
The complete list of investments in associates and joint ventures can

be found in the list of the Groups shareholdings in accordance with
section 313(2) nos. 1 to 4 and section 313(3) of the HGB which can
be accessed online at www.dpdhl.com/en/investors.html.

160
27.1 Investments in associates The Group plans to sell Gll GmbH, Germany, and Presse-
The following table gives an aggregated overview of the carrying Service Gll GmbH, Switzerland, which are both accounted for
amount in the consolidated financial statements and selected finan- using the equity method. The Group holds 51% of the shares of each
cial data (based on the interest held) for those associates which, both joint venture. The companies were reclassified as assets held for sale
individually and in the aggregate, are not of material significance and liabilities associated with assets held for sale in the amount of
for the Group. 3million. The most recent measurement prior to reclassification
led to an impairment loss of 2million.
Aggregate financial data for associates
m Aggregate financial data for joint ventures
2014 2015 m
Carrying amount in the consolidated financial 2014 2015
statements 69 75 Carrying amount in the consolidated financial
Profit/loss before income taxes 4 3 statements 6 1
Profit/loss after income taxes 3 2 Profit/loss before income taxes 0 1
Other comprehensive income 4 5 Profit/loss after income taxes 0 0
Total comprehensive income 7 7 Other comprehensive income 0 0
Total comprehensive income 0 0
27.2 Joint ventures

The following table presents in aggregated form the carrying amount
and selected financial data of all interests in all joint ventures which,
both individually and in the aggregate, are immaterial. The figures
represent the Groups interests.
28 Financial assets
m Non-current Current Total
2014 2015 2014 2015 2014 2015

Available-for-sale financial assets 288 119 208 27 496 146
of which measured at fair value 264 108 208 27 472 135
Loans and receivables 834 806 61 105 895 911
Assets at fair value through profit or loss 192 138 75 42 267 180
Lease receivables 49 50 7 5 56 55
Financial assets 1,363 1,113 351 179 1,714 1,292
The change in financial assets is primarily attributable to the sale of

the shares held in the Kings Cross companies and in Sinotrans.
Write-downs of non-current financial assets at fair value
through profit or loss amounting to 17million (previous year:
8million) were recognised in the income statement, whilst a
write-up in the same amount was recognised for liabilities at fair
value through profit or loss.
Compared with the market rates of interest prevailing at 31De-
cember2015 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 8mil-
lion (previous year: 12million). The principal amount of these
loans totals 8million (previous year: 13million).
Details on restraints on disposal are contained in Note 48.2.

161
29 Other assets 30 Deferred taxes

29.1 Overview 30.1 Overview
m m
2014 2015 2014 2015
Other non-current assets 151 221 Deferred tax assets 1,752 2,007
Other current assets 2,415 2,172 Deferred tax liabilities 84 142
Other assets 2,566 2,393
30.2 Breakdown by balance sheet item

29.2 Breakdown of other assets
m 2014 2015
m
Assets Liabilities Assets Liabilities
2014 2015
Intangible assets 62 156 52 156
Prepaid expenses 687 630
Property, plant and
Current tax receivables 541 477 equipment 117 52 119 71
Pension assets, non-current only 88 151 Non-current financial
Receivables from private postal agencies 147 126 assets 0 70 1 22
Income from cost absorption 87 99 Other non-current assets 36 42 76 8
Creditors with debit balances 48 40 Other current assets 39 26 37 31
Receivables from insurance business 40 38 Provisions 649 36 640 62
Receivables from loss compensation Financial liabilities 4 51 2 46
(recourseclaims) 36 30 Other liabilities 154 8 137 9
Receivables from employees 27 27 Tax loss carryforwards 1,048 1,206
Receivables from cash-on-delivery 4 5 Gross amount 2,109 441 2,270 405
Receivables from sale of assets 6 0 Netting 357 357 263 263
Other assets, of which non-current:70 Carrying amount 1,752 84 2,007 142
(previousyear:63). 855 770
Other assets 2,566 2,393
1,101million (previous year: 948million) of the deferred taxes on

Information on pension assets can be found in Note 42. tax loss carryforwards relates to tax loss carryforwards in Germany
Of the tax receivables, 356million (previous year: 396mil- and 105million (previous year: 100million) to foreign tax loss
lion) relates to VAT, 72million (previous year: 101million) to carryforwards.
customs and duties, and 49million (previous year: 44million) to No deferred tax assets were recognised for tax loss carryfor-
other tax receivables. Miscellaneous other assets include a large wards of around 10.0billion (previous year: 10.2billion) and for
number of individual items. temporary differences of around 4,132million (previous year:
5,082million), as it can be assumed that the Group will probably
not be able to use these tax loss carryforwards and temporary dif-
ferences in its tax planning.
Most of the tax loss carryforwards in Germany are attributable
to Deutsche Post AG. It will be possible to utilise them for an in
definite period of time. In the case of the foreign companies, the
significant tax loss carryforwards will not lapse before 2023.
Deferred taxes have not been recognised for temporary differ-
ences of 802million (previous year: 726million) relating to earn-
ings of German and foreign subsidiaries because these temporary
differences will probably not reverse in the foreseeable future.

162
30.3 Maturity structure 32 Trade receivables

m m
Short-term Long-term Netting Total 2014 2015
Trade receivables 7,227 7,049
2015
Deferred tax Deferred revenue 596 636
assets 665 1,605 263 2,007 Receivables from Group companies 2 9
Deferred tax Trade receivables 7,825 7,694
liabilities 98 307 263 142
2014
Deferred tax
assets 308 1,801 357 1,752
33 Income tax assets and liabilities
Deferred tax All income tax assets and liabilities are current and have maturities
liabilities 106 335 357 84 of less than one year.
34 Cash and cash equivalents

31 Inventories
m
m 2014 2015
2014 2015 Cash equivalents 1,686 2,353
Raw materials, consumables and supplies 233 137 Bank balances/cash in transit 1,226 1,182
Finished goods and goods purchased and held Cash 22 20
forresale 69 65 Other cash and cash equivalents 44 53
Work in progress 28 66 Cash and cash equivalents 2,978 3,608
Advance payments 2 13
Inventories 332 281
Of the 3,608million in cash and cash equivalents, 838million

was not available for general use by the Group as at the balance sheet
There was no requirement to charge significant valuation allowances date (previous year: 770million). Of this amount, 766million
on these inventories. (previous year: 680million) was attributable to countries where
exchange controls or other legal restrictions apply (mostly China,
India and Thailand) and 72million primarily to companies with
non-controlling interest holders (previous year: 90million).
35 Assets held for sale and liabilities associated with assets

heldfor sale
The amounts reported in this item mainly relate to the following
items:
m Assets Liabilities
2014 2015 2014 2015

Exel Inc., USA real estate (Supply Chain segment) 4 6 0 0
nugg.ad GmbH, Germany equity interest (PeP segment) 0 3 0 2
Gll GmbH, Germany, and Presse-Service Gll GmbH, Switzerland equity interests (PeP segment) 0 3 0 0
Other 0 0 0 0
Assets held for sale and liabilities associated with assets held for sale 4 12 0 2

163
Exel Inc. 36 Issued capital and purchase of treasury shares

The company plans to sell properties. All properties recognised as As at 31 December 2015, KfW Bankengruppe (KfW) held a 20.9%
at 31December2014 were sold over the course of the year. A piece (previous year: 21.0%) interest in the share capital of Deutsche Post AG.
of land recognised as investment property was reclassified as held The remaining 79.1% (previous year: 79.0%) of the shares were in
for sale. The most recent appraisal of the assets prior to reclassifica- free float. KfW holds the shares in trust for the Federal Republic of
tion did not indicate any impairment, as in the previous year. Germany.
nugg.ad GmbH 36.1 Changes in issued capital

Deutsche Post DHL Group has sold all of its shares in e-commerce The issued capital amounts to 1,213million. It is composed of
company nugg.ad GmbH (formerly nugg.ad AG predictive behav- 1,212,753,687 no-par value registered shares (ordinary shares) with
ioral targeting), Germany, to Zalando Media Solution GmbH. The a notional interest in the share capital of 1 per share and is fully
transfer of the shares is still subject to antitrust approval. The trans- paid up.
action is expected to be completed in the first quarter of 2016. The
assets and liabilities have been reclassified as assets held for sale and Changes in issued capital and treasury shares
liabilities associated with assets held for sale in accordance with
IFRS5. The most recent measurement prior to reclassification did 2014 2015
not indicate any impairment.
Issued capital
Balance at 1January 1,209,015,874 1,211,180,262
nugg.ad GmbH Addition due to capital increase 2,164,388 1,568,593
m Addition due to contingent capital increase
(convertible bond) 0 4,832
31 Dec.2015
Balance at 31December
Non-current assets 0
(accordingtocommercial register) 1,211,180,262 1,212,753,687
Current assets 2
Cash and cash equivalents 1 Treasury shares
Balance at 1January 0 1,507,473
ASSETS 3
Treasury shares acquired 3,158,717 2,628,575
Non-current provisions and liabilities 0
Treasury shares sold 0 14,992
Current provisions and liabilities 2
Treasury shares issued 1,651,244 2,552,463
EQUITY AND LIABILITIES 2
Balance at 31December 1,507,473 1,568,593
Total at 31December 1,209,672,789 1,211,185,094
The sale was completed in late January2016.
Gll Group The capital was increased in December2015 by issuing new shares.
The Group plans to sell Gll GmbH, Germany, and Presse-Service The same number of shares was subsequently repurchased from the
Gll GmbH, Switzerland, which are both accounted for using the market. As at 31December2015, Deutsche Post AG held 1,568,593
equity method. The Group holds 51% of the shares of each joint treasury shares (previous year: 1,507,473 treasury shares).
venture. The investments were reclassified as assets held for sale in
the amount of 3million. The most recent measurement prior to 36.2 Authorised and contingent capital
reclassification led to an impairment loss of 2million.
Authorised/contingent capital at 31December2015
Other Amount
The aircraft sales planned by various companies are reported under m Purpose
Other. As part of early fleet renewal activities, the number of legacy Authorised Capital 2013 Increase in share capital against
aircraft is to be reduced. DHL Aviation (Netherlands) B.V., the cash/non-cash contributions
236 (until 28May2018)
Netherlands, European Air Transport Leipzig GmbH, Germany,
Contingent Capital 2011 Issue of options/conversion
and DHL International GmbH, Germany, report 15 aircraft as avail- 75 rights (24May2016)
able for sale. Prior to reclassification as assets held for sale, an im- Contingent Capital 2013 Issue of options/conversion
pairment loss of 12million was recognised on the aircraft reclas- 75 rights (28May2018)
Contingent Capital 2014 Issue of subscription rights
sified during the financial year. In the previous year, the impairment
40 toexecutives (26May2019)
loss of 102million related solely to the available-for-sale aircraft
of DHL Aviation (Netherlands) B.V.

164
Authorised Capital 2013 a combination thereof, in an aggregate principal amount of up to

As resolved by the Annual General Meeting on 29May2013, the 1.5billion, on one or more occasions until 28May2018, thereby
Board of Management is authorised, subject to the consent of the granting options or conversion rights for up to 75million shares
Supervisory Board, to issue up to 240million new, no-par value with a proportionate interest in the share capital not to exceed
registered shares until 28May2018 in exchange for cash and/or 75million. The share capital was increased on a contingent basis
non-cash contributions and thereby increase the companys share by up to 75million. No use was made of the authorisation in the
capital. The authorisation may be used in full or for partial amounts. reporting year.
Shareholders generally have subscription rights. However, subject
to the approval of the Supervisory Board, the Board of Management Contingent Capital 2014
may disapply the shareholders subscription rights to the shares In its resolution dated 27May2014, the Annual General Meeting
covered by the authorisation. authorised the Board of Management to contingently increase the
share capital by up to 40million through the issue of up to 40mil-
Capital increases lion new no-par value registered shares. The contingent capital in-
Number
crease serves to grant subscription rights to selected Group execu-
Registered on ofshares tives. The subscription rights may only be issued based on the
12March2014 656,915 aforementioned Annual General Meeting resolution of 27May2014.
11December2014 1,507,473 The contingent capital increase will only be implemented to the
10December2015 1,568,593 extent that shares are issued based on the subscription rights
granted and the company does not settle the subscription rights by
cash payment or delivery of treasury shares. The new shares partici
In financial year 2015, Deutsche Post AGs Board of Management pate in profit from the beginning of the financial year in which they
made partial use of theauthorisation granted to it in accordance are issued. The share capital was increased on a contingent basis
with article 5(2) of theArticles of Association of Deutsche Post AG, byup to 40million. No use was made of the authorisation in the
to increase Deutsche Post AGs share capital by 1,568,593.00 by r eporting year.
issuing 1,568,593 new no-par value registered shares with a notional
interest in the share capital of 1.00 per share in exchange for cash 36.3 Authorisation to acquire treasury shares
contributions. The capital increase was entered in the commercial By way of a resolution adopted by the Annual General Meeting on
register on 10December2015. The shares participate in the consoli 27May2014, the company is authorised to acquire treasury shares
dated net profit for 2015. Implementation of the capital increase in the period to 26May2019 of up to 10% of the share capital exist
entailed transaction costs of 0.4million. Authorised Capital 2013, ing when the resolution was adopted. The authorisation permits the
which originally amounted to 240million, now amounts to Board of Management to exercise it for every purpose permitted by
236million. law, and in particular to pursue the goals mentioned in the reso
lution by the Annual General Meeting.
Contingent Capital 2011 Treasury shares acquired on the basis of the authorisation, with
In its resolution dated 25May2011, the Annual General Meeting shareholders subscription rights disapplied, may continue to be
authorised the Board of Management, subject to the consent of the used for the purposes of listing on a stock exchange outside Ger-
Supervisory Board, to issue bonds with warrants, convertible bonds many. In addition, the Board of Management remains authorised
and/or income bonds as well as profit participation certificates, or to acquire treasury shares using derivatives.
a combination thereof, in an aggregate principal amount of up to Deutsche Post AG acquired treasury shares for the total amount
1billion, on one or more occasions until 24May2016, thereby of 31million (average price of 29.42 per share) in order to settle
granting options or conversion rights for up to 75million shares the 2014 tranche of the Share Matching Scheme.
with a proportionate interest in the share capital not to exceed The company increased its share capital in 2014 to settle claims
75million. to matching shares under the 2010 tranche. The treasury shares
Full use was made of the authorisation in December2012 by were issued to the executives concerned in April2015.
issuing a 1billion convertible bond. The share capital was in- In addition, a further 7,155 shares were acquired at a price of
creased on a contingent basis by up to 75million. It was reduced 26.86 to settle claims to matching shares and issued to persons who
by 4,832.00 through the issue of new shares in financial year 2015. have since left the Group.
To settle the 2011 tranche of the Share Matching Scheme due
Contingent Capital 2013 in 2016, treasury shares were purchased for a total price of 39mil-
In its resolution dated 29May2013, the Annual General Meeting lion (average price of 24.80 per share) in December2015.
authorised the Board of Management, subject to the consent of the As at 31December2015, Deutsche Post AG held 1,568,593 treas-
Supervisory Board, to issue bonds with warrants, convertible bonds ury shares.
and/or income bonds as well as profit participation certificates, or

165
36.4 Disclosures on corporate capital The exercise of the rights to shares under the 2010 and 2014 tranches
The equity ratio was 29.8% in financial year 2015 (previous year: reduced the capital reserves by 48million (previous year: 31mil-
25.9%). The companys capital is monitored using the net gearing lion for the 2009 and 2013 tranches) due to the issuance of treasury
ratio, which is defined as net debt divided by the total of equity and shares in this amount to the executives.
net debt.
38 Other reserves
Corporate capital
m m
2014 2015 2014 2015
Total financial liabilities 5,080 5,018 IFRS3 revaluation reserve 0 0
Less cash and cash equivalents 2,978 3,608 IAS39 revaluation reserve 170 67
Less current financial assets 351 179 IAS39 hedging reserve 28 41
Less long-term deposits 60 0 Currency translation reserve 483 15
Less non-current derivative financial instruments 192 138 Other reserves 341 11
Net debt 1,499 1,093
Plus total equity 9,580 11,295
Total capital 11,079 12,388
38.1 IFRS3 revaluation reserve
Net gearing ratio (%) 13.5 8.8
The IFRS3 revaluation reserve included the hidden reserves of DHL
Logistics Co. Ltd., China, from purchase price allocation. These
were attributable to the customer relationships contained in the 50%
37 Capital reserves interest held previously and to adjustments to deferred taxes.
An amount of 94million was transferred to the capital reserves in
financial year 2015 (previous year: 101million). 38.2 IAS39 revaluation reserve
The revaluation reserve comprises gains and losses from changes in
m the fair value of available-for-sale financial assets that have been
2014 2015 recognised in other comprehensive income. This reserve is reversed
At 1January 2,269 2,339 to profit or loss either when the assets are sold or otherwise disposed
Addition/issue of rights under Share Matching
of, or if their value is significantly or permanently impaired.
Scheme
2009 tranche 1 0
m
2010 tranche 4 1
2014 2015
2011 tranche 4 4
At 1January 77 190
2012 tranche 4 3
2013 tranche 21 4
2014 tranche 10 27 Comprehensive income
2015 tranche 0 8
Total additions 44 47
IAS39 revaluation reserve at 31December
Exercise of rights under Share Matching Scheme beforetax 190 80
2009 tranche matching shares 8 0 Deferred taxes 20 13
2010 tranche matching shares 0 20 IAS39 revaluation reserve at 31December
2013 tranche investment and incentive shares 23 0 aftertax 170 67
2014 tranche investment and incentive shares 0 28
Total exercised 31 48
Total for Share Matching Scheme 13 1
Addition/issue of rights under Performance Share

The change resulted from the sale of shares in the Kings Cross com-
Plan panies in the UK and in Sinotrans Ltd., China.
2014 tranche 3 8
2015 tranche 0 2
Total for Performance Share Plan 3 10
Capital increases 54 37
Capital reserves at 31December 2,339 2,385

166
38.3 IAS39 hedging reserve 39 Retained earnings

The hedging reserve is adjusted by the effective portion of a cash As well as the undistributed consolidated net profits generated in
flow hedge. The hedging reserve is reversed to profit or loss when prior periods, retained earnings also contain the effects from trans-
the hedged item is settled. actions with non-controlling interests.
m m
2014 2015 2014 2015
At 1January 59 33 At 1January 7,183 6,168
Currency translation differences 0 0 Dividend payment 968 1,030
Consolidated net profit for the period 2,071 1,540
Comprehensive income
Changes from unrealised gains and losses 73 120 Change due to remeasurements of net pension
provisions 2,061 773
Transactions with non-controlling interests 6 3
IAS39 hedging reserve at 31December before tax 33 51
Miscellaneous other changes 51 21
Deferred taxes 5 10
Retained earnings at 31December 6,168 7,427
IAS39 hedging reserve at 31December after tax 28 41
The change in the hedging reserve is mainly the result of the recog- The dividend payment to Deutsche Post AG shareholders of
nition of previously unrealised gains and losses from hedging future 1,030million was made in May2015. This corresponds to a divi-
operating currency transactions. In the financial year, realised losses dend of 0.85 per share.
of 137 million and realised gains of 35million were recognised in Information on the change due to remeasurements of net pen-
other comprehensive income (previous year: realised losses of sion provisions before tax can be found in Note 42.6.
51million and realised gains of 70million).
38.4 Currency translation reserve
m
2014 2015
At 1January 924 483
Transactions with non-controlling interests 0 0
Comprehensive income
Currency translation reserve at 31December 483 15

167
The changes in transactions with non-controlling interests

without change of control are presented in the following table.
Transactions with non-controlling interests

m 2014 2015
Currency Retained Currency Retained

translation reserve earnings Total translation reserve earnings Total
Giorgio Gori Group, Italy 0 16 16 0 0 0
Blue Dart Express Limited, India 0 10 10 0 1 1
DHL Korea Limited, Korea 0 0 0 0 5 5
Other 0 12 12 0 1 1
Total 0 6 6 0 3 3
40 Equity attributable to Deutsche Post AG shareholders 41 Non-controlling interests

The equity attributable to Deutsche Post AG shareholders in finan- This balance sheet item includes adjustments for the interests of
cial year 2015 amounted to 11,034million (previous year: non-Group shareholders in the consolidated equity from acquisi-
9,376million). tion accounting, as well as their interests in profit or loss.
The following table shows the companies to which the material
Dividends non-controlling interests relate:
Dividends paid to the shareholders of Deutsche Post AG are based
on the net retained profit of 5,022million reported in m
Deutsche Post AGs annual financial statements in accordance with 2014 2015
the HGB. The amount of 3,991million remaining after deduction DHL Sinotrans International Air Courier Ltd., China 143 176
of the planned total dividend of 1,031million (which corresponds Blue Dart Express Limited, India 8 12
to 0.85 per share) will be carried forward. Exel Saudia LLC, Saudi Arabia 6 9
Other companies 47 64
Non-controlling interests 204 261
Total Dividend
dividend pershare
m
Dividend distributed in financial year 2015
Material non-controlling interests exist in the following two com-
fortheyear 2014 1,030 0.85
Dividend distributed in financial year 2014
panies:
fortheyear 2013 968 0.80 DHL Sinotrans International Air Courier Ltd., China, which has
been assigned to the Express segment, provides domestic and inter-
national express delivery and transport services. Deutsche Post DHL
As the dividend is paid in full from the tax-specific capital contri- Group holds a 50% share in the company. Blue Dart Express Limited
bution account (steuerliches Einlagekonto as defined by section 27 (Blue Dart), India, is a courier service provider which has been as-
of the Krperschaftssteuergesetz (KStG German Corporation Tax signed to the PeP segment. Deutsche Post AG holds a share of 75%
Act)) (contributions not made to subscribed capital), payment will in Blue Dart.
be made without the deduction of capital gains tax or the solidarity
surcharge. The dividend is tax exempt for shareholders resident in
Germany. It does not entitle recipients to a tax refund or a tax credit.
In terms of taxation, the dividend distribution is considered as a
repayment of contributions from the capital contribution account
and in the opinion of the tax authorities serves to reduce the
cost of acquiring the shares.

168
The following table gives an overview of the aggregated finan-

cial data of significant companies with non-controlling interests:
Financial data for material non-controlling interests

m Sinotrans Blue Dart
2014 2015 2014 2015
Balance sheet
ASSETS
Non-current assets 124 170 76 79
Current assets 365 388 69 93
Total ASSETS 489 558 145 172

Non-current provisions and liabilities 8 9 47 50
Current provisions and liabilities 194 198 49 58
Total EQUITY AND LIABILITIES 202 207 96 108
Net assets 287 351 49 64
Non-controlling interests 143 176 8 12
Income statement
Revenue 1,163 1,364 272 349
Profit before income taxes 260 362 23 36
Income taxes 66 84 19 15
Profit/loss after income taxes 194 278 4 21
Other comprehensive income 19 10 9 1
Total comprehensive income 213 288 13 22
attributable to non-controlling interests 106 144 3 6
Dividend distributed to non-controlling interests 78 112 14 2
Consolidated net profit attributable to non-controlling interests 97 139 1 5
Cash flow statement

Net cash from operating activities 109 301 2 35
Net cash used in/from investing activities 15 21 14 18
Net cash used in financing activities 156 225 14 15
Net change in cash and cash equivalents 62 55 2 2
Cash and cash equivalents at 1January 173 145 4 6
Effect of changes in exchange rates on cash and cash equivalents 34 4 0 1
Cash and cash equivalents at 31December 145 204 6 7
The portion of other comprehensive income attributable to non-con- 42 Provisions for pensions and similar obligations
trolling interests largely relates to the currency translation reserve. The Groups most significant defined benefit retirement plans are
The changes are shown in the following table: in Germany and the UK.
In Germany, Deutsche Post AG has occupational retirement
m arrangements dating back to 1997 based on a collective agreement,
2014 2015 which are open to new hourly workers and salaried employees.
Balance at 1January 11 6 These arrangements are based on fixed benefit amounts and provide
Transactions with non-controlling interests 0 0 for monthly payments as from the statutory retirement age, de
Comprehensive income pending on length of service and the wage/salary level achieved.
Changes from unrealised gains and losses 17 9 Annual increases in the fixed amounts during the service period
Changes from realised gains and losses 0 0 andin the pension payments are linked to agreed percentages, i.e.
Currency translation reserve at 31December 6 15 1.45% foractive hourly workers and salaried employees and 1.00%
for retirees. The plan also provides for invalidity benefits and sur-
viving dependents benefits. Retirement arrangements with a simi-
lar structure are available to executives below the management
board level and to specific employee groups through deferred com-
pensation.

169
The large majority of Deutsche Post AGs obligations relates to The majority of the Groups (defined benefit) arrangements in
the vested entitlements of hourly workers and salaried employees the UK have been consolidated into a group plan with different sec-
on the transition date in 1997 and to legacy pension commitments tions for the participating divisions. These are largely funded via a
towards former hourly workers and salaried employees who had left group trust. The amount of the employer contributions must be
or retired from the company by the transition date. The amounts negotiated with the trustee in the course of funding valuations. The
individually determined for the vested entitlements of the active trustees directors are Group employees, former employees and non-
hourly workers and salaried employees are subject to an annual rate Group third parties, all of whom are required to be independent.
of increase of 1.45%. Employee beneficiaries make their own funding contributions in
Deutsche Post AGs overall pension plan is based on the the case of the remaining open defined benefit arrangement. The
Betriebsrentengesetz (BetrAVG German Occupational Pension group plan is mainly governed by the corresponding trust deed and
Act), in addition to collective agreements and other relevant docu- rules and the UK Pensions Acts.
ments. The prime source of external funding is a contractual trust A wide variety of other defined benefit retirement plans in the
arrangement that also covers a support fund and a pension fund. Group are to be found in the Netherlands, Switzerland, the USA and
The trust is funded on a case-by-case basis in line with the Groups a large number of other countries.
finance strategy and the support fund on an ongoing basis in line In the Netherlands, collective agreements require that those
with tax law options. In the case of the pension fund the regulatory employees who are not covered by a sector-specific plan participate
funding requirements can, in principle, be met without additional in a dedicated defined benefit retirement plan. Following a change
employer contributions. The support funds governing bodies in- in the plan in the previous year, the benefit plan is no longer based
clude both Deutsche Post AG employees and former employees. Part on final salary, but exclusively provides for annual accruals from
of the plan assets consists of real estate that is leased out to the 1January2015. In addition, a new pensionable salary cap is applied
Group on a long-term basis. In addition, some of the legacy pension in accordance with the relevant Dutch laws. Consequently, negative
commitments use Versorgungsanstalt der Deutschen Bundespost past service cost had to be recognised in the previous year. The
(VAP), a joint pension fund operated by the Deutsche Bundespost dedicated defined benefit retirement plan provides for monthly
successor companies. benefit payments that increase in line with the agreed wage and
Individual subsidiaries in Germany have retirement plans that salary increases on the one hand and the funds available for such
were acquired in the context of acquisitions and transfers of oper increases on the other.
ations and that are closed to new entrants. New contractual trust In Switzerland, employees receive an occupational pension in
arrangements were agreed and implemented for three subsidiaries line with statutory requirements, depending on the contributions
in the reporting year. paid, an interest rate that is fixed each year, certain annuity factors
In the UK, the Groups defined benefit pension arrangements and any pension increases specified. On 9December2014, a change
have largely been closed to new entrants for a number of years. In in the plan was resolved which led to a change, from 1January2015,
addition, Deutsche Post DHL Group committed itself to a change in in the annuity factors in particular. Consequently, negative past
its pension strategy in the UK on 26November2013, and these service cost was recognised in the previous year. A separate plan
arrangements are now also largely closed for further service accrual, providing for lump sum payments instead of annuities exists for
with effect from 1April2014. The employees affected have been specific higher wage components.
able to participate in a defined contribution arrangement since In the USA, the companies defined benefit plans have been
1April2014. closed to new entrants and accrued entitlements have been frozen.
Currently, one single defined benefit pension arrangement of The Group companies primarily use joint funding institutions
the Group in the UK remains open to existing employees, who have to fund their dedicated defined benefit retirement plans in these
not yet chosen to join, or to new employees as a result of a business three countries. In the Netherlands and in Switzerland, both
transfer from the UK government. It provides for monthly payments employers and employees contribute to plan funding. In the USA no
from retirement, depending on length of service and final salary. In contributions are currently made in this regard.
addition, a pension commencement lump sum is payable. Annual Various risks arise in the context of defined benefit retirement
increases in pension payments are linked to inflation. This arrange- plans. Of these risks, the interest rate risk and investment risk in
ment also includes invalidity benefits and surviving dependents particular are still deemed to be significant.
benefits. The information below on pension obligations is broken down
into the following areas: Germany, UK and Other.

170
42.1 Calculation of the balance sheet items

The balance sheet items were calculated as follows:
m
Germany UK Other Total
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
Surplus ()/deficit (+) at 31December 5,265 392 413 6,070
Effects of asset ceilings at 31December 0 0 0 0
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
2014
Surplus ()/deficit (+) at 31December 6,225 497 413 7,135
Effects of asset ceilings at 31December 0 1 2 3
Reported separately
Pension assets at 31December 0 3 85 88
Provisions for pensions and similar obligations at 31December 6,225 501 500 7,226
In the Other area, the Netherlands, Switzerland and the USA account
for a share in the corresponding present value of the defined bene
fitobligations of 40%, 24% and 14%, respectively (previous year:
43%, 22% and 13%).
Additionally, rights to reimbursement from former Group
companies existed in the Group in Germany in the amount of
around 18million (previous year: 17million) which are reported
separately. Corresponding benefit payments are being made directly
by the former Group companies.

171
42.2 Present value of defined benefit obligations

The present value of defined benefit obligations changed as follows:
m
2015
Present value of defined benefit obligations at 1January 10,453 5,247 2,399 18,099
Current service cost, excluding employee contributions 141 8 44 193
Interest cost on defined benefit obligations 233 194 58 485
Actuarial gains ()/losses (+) changes in demographic assumptions 0 136 0 136
Actuarial gains ()/losses (+) changes in financial assumptions 759 224 43 1,026
Actuarial gains ()/losses (+) experience adjustments 26 11 1 14
Past service cost 6 0 4 2
Settlement gains ()/losses (+) 0 7 0 7
Employee contributions 12 1 17 30
Benefit payments 484 211 93 788
Settlement payments 0 0 2 2
Transfers 0 0 0 0
Acquisitions/divestitures 0 0 0 0
Currency translation effects 0 305 103 408
2014
Present value of defined benefit obligations at 1January 8,438 4,395 1,963 14,796
Actuarial gains ()/losses (+) changes in demographic assumptions 0 88 15 73
Actuarial gains ()/losses (+) changes in financial assumptions 2,057 627 375 3,059
Actuarial gains ()/losses (+) experience adjustments 12 26 5 43
Transfers 0 0 1 1

172
The significant financial assumptions are as follows:
%
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
31December2014
Discount rate (defined benefit obligations) 2.25 3.50 2.33 2.62
Expected annual rate of future salary increase 2.50 3.00 2.05 2.43
Expected annual rate of future pension increase 2.00 2.59 0.92 2.07
Determination of the discount rates was refined as of the beginning No further change was made to the determination of the dis-
of 2015. Firstly, separate discount rates were introduced in principle count rates. In the euro zone, their derivation (from the above-men-
for calculating the present value of the defined benefit obligations tioned yield curve) used plan composition weights and in the UK,
and the current service cost. This reflects any differences in the ma- they were based on the yields of AA-rated corporate bonds as before
turities of these parameters, where applicable. Secondly, generation (and took the above-mentioned duration into account). For other
of the yield curve for the euro zone, which is based on the yields of countries, the discount rates were determined in a similar way to
AA-rated corporate bonds, was enhanced. This led to minor changes that in the euro zone or the UK, provided there was a deep market
in extrapolation. Furthermore, the derivation of the discount rates for AA-rated (or, in some cases, AA and AAA-rated) corporate bonds.
for the UK shifted to take the duration into account. Currently, By contrast, government bond yields were used for countries with-
thisallows for a better coverage of the relevant maturities. The first out a deep market for such corporate bonds.
two changes did not have any significant overall impact on For the annual pension increase in Germany, agreed rates in
Deutsche Post DHL Group as at 31December2015. The third change particular must be taken into account in addition to the assump-
led to a 0.25% increase in the discount rate for calculating the pres- tions shown. The effective weighted average therefore amounts to
ent value of defined benefit obligations in the UK as at 31Decem- 1.00% (previous year: 1.00%).
ber2015, reducing the present value of the Groups defined benefit The most significant demographic assumptions made relate to
obligations by around 220million and lifting other comprehensive life expectancy and mortality. For the German Group companies,
income (before tax) by the same amount in contrast, this would they were calculated using the Richttafeln 2005 G mortality tables
not have had any impact as at 31December2014, and no significant published by Klaus Heubeck. Life expectancy for the retirement
overall impact is expected with regard to service cost and net inter- plans in the UK was based on the S1PMA / S 1PFA tables of the
est cost in 2016. Continuous Mortality Investigation of the Institute and Faculty of
Actuaries adjusted to reflect plan-specific mortality according to the
current funding valuation. Other countries used their own, current
standard mortality tables.

173
If one of the significant financial assumptions were to change,

the present value of the defined benefit obligations would change as
follows:
% Change in Change in present value

assumption of defined benefit obligations
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
31December2014
Discount rate (defined benefit obligations) +1.00 13.57 16.06 14.43 14.40
1.00 17.85 19.78 18.75 18.53
Expected annual rate of future salary increase +0.50 0.18 0.11 1.17 0.29
0.50 0.17 0.10 1.10 0.27
Expected annual rate of future pension increase +0.50 0.41 5.07 6.13 2.51
0.50 0.37 3.18 4.37 1.71
These are effective weighted changes in the respective present The weighted average duration of the Groups defined benefit
valueof the defined benefit obligations, e.g. taking into account obligations at 31December2015 was 15.4 years in Germany (previ-
thelargely fixed nature of the pension increase for Germany. ous year: 15.9 years) and 16.7 years in the UK (previous year:
A one-year increase in life expectancy for a 65-year-old bene 18.2years). In the other countries it was 17.2 years (previous year:
ficiary would increase the present value of the defined benefit 16.8 years), and in total it was 16.0 years (previous year: 16.7 years).
obligations by 4.56% in Germany (previous year: 4.64%) and by A total of 29.6% (previous year: 30.8%) of the present value
4.07% in the UK (previous year: 3.80%). The corresponding increase ofthe defined benefit obligations was attributable to active benefi
for other countries would be 2.62% (previous year: 2.08%), for a ciaries, 16.8% (previous year: 16.8%) to terminated beneficiaries and
total increase of 4.14% (previous year: 4.06%). 53.6% (previous year: 52.4%) to retirees.
When determining the sensitivity disclosures, the present v alues
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.

174
42.3 Fair value of plan assets

The fair value of the plan assets changed as follows:
m
2015
Fair value of plan assets at 1January 4,228 4,750 1,986 10,964
Interest income on plan assets 96 176 45 317
Return on plan assets excluding interest income 9 295 14 318
Other administration costs in accordance with IAS19.130 0 6 4 10
Employer contributions 391 72 34 497
Transfers 0 0 0 0
2014
Fair value of plan assets at 1January 4,119 4,034 1,752 9,905
Transfers 5 0 1 4
The fair value of the plan assets can be broken down as follows:
m
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
31December2014
Equities 785 1,000 694 2,479
Fixed income securities 1,402 3,072 845 5,319
Real estate 1,121 175 203 1,499
Alternatives 299 449 39 787
Insurances 576 0 108 684
Cash 42 40 19 101
Other 3 14 78 95
Fair value of plan assets 4,228 4,750 1,986 10,964

175
Quoted market prices in an active market exist for around 79% (pre- Asset-liability studies are performed at regular intervals in Ger-
vious year: 81%) of the total fair values of plan assets. Most of the many, the UK and, amongst other places, the Netherlands, Switzer-
remaining assets for which no such quoted market prices exist are land and the USA to examine the match between assets and liabilities;
attributable as follows: 14% (previous year: 12%) to real estate, 6% the strategic allocation of plan assets is adjusted in line with this.
(previous year: 6%) to insurances and 1% (previous year: 1%) to
alternatives. The majority of the investments on the active markets 42.4 Effect of asset ceilings
are globally diversified, with country-specific focus areas. In the UK and Switzerland, the plan rules for one retirement plan in
Real estate with a fair value of 1,305million (previous year: each case required a surplus to be capped to a certain extent in the
1,106million) is used by Deutsche Post AG itself. Otherwise, as in previous year, so as to reach the level of the present value of the
the previous year, no plan assets were used by the Group and no future economic benefits (asset ceiling). These ceilings no longer
transferable own financial instruments were held as plan assets. applied at 31December2015 as legal clarification had been obtained
and/or the obligation had increased. Disclosures on the prior-year
amounts can be found in the table under Note 42.1.
42.5 Net pension provisions

Net pension provisions changed as follows:
m
2015
Net pension provisions at 1January 6,225 498 415 7,138
Service cost1 147 7 44 198
Net interest cost 137 18 13 168
Remeasurements 724 77 32 833
Transfers 0 0 0 0
2014
Net pension provisions at 1January 4,319 362 215 4,896
Remeasurements 2,000 144 206 2,350
Transfers 5 0 0 5
1
Including other administration costs in accordance with IAS19.130 from plan assets.
Payments amounting to 438million are expected with regard

tonet pension provisions in 2016. Of this amount, 193million is
attributable to the Groups expected direct benefit payments and
245million to expected employer contributions to pension funds.

176
42.6 Cost components of defined benefit retirement plans

The cost components of defined benefit retirement plans are as fol-
lows:
m
2015
Interest on the effects of asset ceilings 0 0 0 0
Actuarial gains ()/losses (+) total 733 371 44 1,148
Change in effect of asset ceilings excluding interest 0 1 2 3
Remeasurements 724 77 32 833
Cost of defined benefit retirement plans 440 52 25 467
2014
Interest on the effects of asset ceilings 0 0 0 0
Actuarial gains ()/losses (+) total 2,045 513 385 2,943
Change in effect of asset ceilings excluding interest 0 0 2 2
Remeasurements 2,000 144 206 2,350
Cost of defined benefit retirement plans 2,275 180 237 2,692
1
Including other administration costs in accordance with IAS19.130 from plan assets.
198million of the cost of defined benefit retirement plans (previous Inflation risk
year: 158million) related to staff costs, 168million (previous year: Pension obligations especially final salary schemes or schemes
184million) to net finance costs and 833million (previous year: involving increases during the pension payment phase can be
2,350million) to other comprehensive income. linked directly or indirectly to inflation. The risk of increasing in-
flation rates with regard to the present value of the defined benefit
42.7 Risk obligations has been mitigated in the case of Germany, for example,
A number of risks that are material to the company and the plans by switching to an arrangement involving fixed benefit amounts and
exist in relation to the defined benefit retirement plans. Opportun in the case of the UK by largely closing the defined benefit arrange-
ities for risk mitigation are used in line with the specifics of the plans ments as well as by setting fixed rates of increase and/or by partially
concerned. capping increases or partially providing for lump sum payments.
Additionally, there is a positive correlation with interest rates.
Interest rate risk
A decrease (increase) in the respective discount rate would lead to
an increase (decrease) in the present value of the total obligation
and would in principle be accompanied by an increase (decrease)
in the fair value of the fixed income securities contained in the plan
assets. Other hedges are made, in some cases using derivatives.

177
Investment risk Longevity risk

The investment is in principle subject to a large number of risks; in Longevity risk may arise in connection with the benefits payable in
particular, it is exposed to the risk that market prices may change. the future due to a future increase in life expectancy. This is miti
This is managed primarily by ensuring broad diversification and gated in particular by using current standard mortality tables when
using risk overlays. calculating the present value of the defined benefit obligations. The
mortality tables used in Germany and the UK, for example, include
an allowance for expected future increases in life expectancy.
43 Other provisions
Other provisions break down into the following main types of pro-
vision:
2014 2015 2014 2015 2014 2015

Other employee benefits 705 567 278 262 983 829
Restructuring provisions 93 98 209 246 302 344
Technical reserves (insurance) 435 454 211 215 646 669
Postage stamps 0 0 350 252 350 252
Tax provisions 0 0 98 73 98 73
Miscellaneous provisions 323 393 399 438 722 831
Other provisions 1,556 1,512 1,545 1,486 3,101 2,998
43.1 Changes in other provisions
m Other Technical
employee Restructuring reserves Postage Miscellaneous
benefits provisions (insurance) stamps Tax provisions provisions Total
At 1January2015 983 302 646 350 98 722 3,101
Changes in consolidated group 0 0 0 0 0 0 0
Utilisation 487 154 79 350 41 271 1,382
Reversal 20 31 39 0 32 93 215
Unwinding of discount/changes in discount rate 5 5 4 0 0 9 23
Reclassification 4 0 0 0 0 4 0
Additions 311 193 122 252 43 460 1,381
At 31December2015 829 344 669 252 73 831 2,998
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, 28million (previous year: 31million)
well as in other areas of the Group. These measures relate primarily relates to VAT, 7million (previous year: 4million) to customs and
to rentals for idle plant, litigation risks and expenses from the clos duties, and 38million (previous year: 63million) 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
Note 7.

178
43.2 Miscellaneous provisions

The miscellaneous provisions break down as follows:
m
2014 2015
Litigation costs 177 231
Risks from business activities 45 69
Aircraft maintenance 96 118
Miscellaneous other provisions 404 413
Miscellaneous provisions 722 831
Miscellaneous other provisions include a large number of individual

items.
43.3 Maturity structure

The maturity structure of the provisions recognised in financial year
2015 is as follows:
m More than More than More than More than

Less than 1year 2years 3years 4years More than
1year to2years to 3years to4years to5years 5years Total
2015
Other employee benefits 262 171 81 58 41 216 829
Restructuring provisions 246 24 12 13 8 41 344
Technical reserves (insurance) 215 189 93 58 38 76 669
Postage stamps 252 0 0 0 0 0 252
Tax provisions 73 0 0 0 0 0 73
Miscellaneous provisions 438 127 36 28 43 159 831
Total 1,486 511 222 157 130 492 2,998
44 Financial liabilities
2014 2015 2014 2015 2014 2015

Bonds 4,290 4,304 0 0 4,290 4,304
Amounts due to banks 1 11 183 155 184 166
Finance lease liabilities 191 141 19 26 210 167
Liabilities to Group companies 0 0 23 26 23 26
Financial liabilities at fair value through profit or loss 12 17 133 108 145 125
Other financial liabilities 189 152 128 238 317 390
Financial liabilities 4,683 4,625 486 553 5,169 5,178
The amounts due to banks mainly comprise current overdraft facil- 44.1 Bonds
ities due to various banks. The following table contains further details on the companys most
The amounts reported under financial liabilities at fair value significant bonds. The bonds issued by Deutsche Post Finance B.V.
through profit or loss relate to the negative fair values of derivative are fully guaranteed by Deutsche Post AG.
financial instruments.

179
Significant bonds
2014 2015
Nominal Carrying Carrying

coupon Issue amount Fair value amount Fair value
% volume Issuer m m m m
Bond 2012/2017 1.875 750million Deutsche Post Finance B.V. 747 780 748 769
Bond 2012/2022 2.950 500million Deutsche Post Finance B.V. 496 575 497 562
Bond 2012/2020 1.875 300million Deutsche Post AG 297 323 298 318
Convertible bond 2012/20191 0.600 1billion Deutsche Post AG 942 1,006 954 1,004
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 1,318million at the balance sheet date (previous year: 1,384million).
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 21November2019. 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
the bond, up to the issue amount, using the effective interest method
1
Adjustment after payment of a dividend of 0.80 per share.
2
Adjustment after payment of a dividend of 0.85 per share. and recognised in profit or loss.
44.2 Finance lease liabilities

Finance lease liabilities mainly relate to the following items:
Interest rate 2014 2015

Leasing partner % End of term Asset m m
Deutsche Post Immobilien GmbH, Germany Various leasing partners 4.75 2023/2028 Real estate 109 103
DHL Express (Austria) GmbH, Austria Raiffeisen Impuls Immobilien GmbH 3.62 2019 Real estate 10 9
Deutsche Post AG, Germany T-Systems International GmbH 4.25 2019 IT equipment 5 17
Deutsche Post Immobilien GmbH, Germany Lorac Investment Management Sarl 6.00 2016 Real estate 2 1
The leased assets are recognised in property, plant and equipment Maturity structure
at carrying amounts of 164million (previous year: 242million). m Present value Minimum lease payments
The difference between the carrying amounts of the assets and the (finance lease liabilities) (notional amount)
liabilities results from longer useful lives of the assets compared 2014 2015 2014 2015
with a shorter repayment period for the lease instalments and un- Less than 1 year 19 26 26 32
scheduled repayments of lease obligations. The notional amount of More than 1 year
the minimum lease payments totals 210million (previous year: to5 years 109 64 131 86
More than 5 years 82 77 99 92
256million).
Total 210 167 256 210

180
44.3 Other financial liabilities Of the tax liabilities, 603million (previous year: 573million) re-
lates to VAT, 379million (previous year: 340million) to customs
m and duties, and 164million (previous year: 160million) to other
2014 2015 tax liabilities.
Put option related to the acquisition of the The liabilities from the sale of residential building loans relate
remaining interest in Giorgio Gori Group 27 27 to obligations of Deutsche Post AG to pay interest subsidies to bor-
Loan notes related to the acquisition of TAG Group 60 63
rowers to offset the deterioration in borrowing terms in conjunction
Loan notes related to the early termination
ofafinance lease 16 18 with the assignment of receivables in previous years, as well as pass-
Miscellaneous financial liabilities 214 282 through obligations from repayments of principal and interest for
Other financial liabilities 317 390 residential building loans sold.
Miscellaneous other liabilities include a large number of indi-
vidual items.
45 Other liabilities 45.3 Maturity structure
45.1 Overview m
2014 2015
m Less than 1 year 4,196 4,255
2014 2015 More than 1 year to 2 years 28 28
Other non-current liabilities 255 234 More than 2 years to 3 years 7 33
Other current liabilities 4,196 4,255 More than 3 years to 4 years 34 6
Other liabilities 4,451 4,489 More than 4 years to 5 years 6 6
More than 5 years 180 161
Other liabilities 4,451 4,489
45.2 Breakdown of other liabilities

There is no significant difference between the carrying amounts and
m the fair values of the other liabilities due to their short maturities or
2014 2015 market interest rates. There is no significant interest rate risk be-
Tax liabilities 1,073 1,146 cause most of these instruments bear floating rates of interest at
Incentive bonuses 580 653 market rates.
Deferred income, of which non-current: 86
(previousyear: 89)
Wages, salaries, severance payments
385
354
376
367
46 Trade payables
Most of the trade payables have a maturity of less than one year. The
Compensated absences 312 322
Payables to employees and members of executive
reported carrying amount of trade payables corresponds to their
bodies 175 180 fair value.
Social security liabilities 168 178
Debtors with credit balances 163 146
Liabilities from the sale of residential building
loans, of which non-current: 142 (previous year: 160) 162 144
Overtime claims 88 86
COD liabilities 53 56
Accrued rentals 39 42
Liabilities from cheques issued 49 37
Other compensated absences 33 30
Insurance liabilities 41 24
Liabilities from loss compensation 10 18
Accrued insurance premiums for damages
andsimilar liabilities 13 15
Miscellaneous other liabilities, of which
non-current: 6 (previous year: 6) 753 669
Other liabilities 4,451 4,489

Consolidated Financial Statements NOTES Balance sheet disclosures Cash flow disclosures
181
CASH FLOW DISCLOSURES The change in current assets and liabilities led to a net cash
inflow of 788million. In the previous year, the change in this item
47 Cash flow disclosures resulted in an outflow of 21million. The reduction in receivables
The cash flow statement is prepared in accordance with IAS7, State- and other current assets in the reporting year in particular made a
ment of Cash Flows and discloses the cash flows in order to present significant contribution to this development.
the source and application of cash and cash equivalents. It distin-
guishes between cash flows from operating, investing and financing Non-cash income and expense
activities. Cash and cash equivalents are composed of cash, cheques m
and bank balances with a maturity of not more than three months, 2014 2015
and correspond to the cash and cash equivalents reported on the Expense from remeasurement of assets 127 60
balance sheet. The effects of currency translation and changes in the Income from remeasurement of liabilities 161 140
consolidated group are adjusted when calculating cash and cash Income from disposal of assets 0 31
equivalents. Staff costs relating to equity-settled share-based

payments 30 37
Non-cash transactions were entered into in financial year 2015
Miscellaneous 0 6
which were not included in the cash flow statement in accordance Non-cash income 4 68
with IAS7.43 and 7.44. They related to 14 properties that were
contributed to Deutsche Post Pensions-Treuhand GmbH&Co. KG.
Although income was recognised as a result of the contribution, no
cash or cash equivalents were received. 47.2 Net cash used in investing activities
Cash flows from investing activities mainly result from cash re-
47.1 Net cash from operating activities ceived from disposals of non-current assets (divestitures) and cash
Cash flows from operating activities are calculated by adjusting con- paid for investments in non-current assets.
solidated net profit/loss for tax expenses, net financial income/net Interest received from investing activities as well as cash in-
finance costs and non-cash factors, as well as taxes paid, changes in flows and outflows from changes in current financial assets are also
provisions and in other non-current assets and liabilities (net cash included.
from operating activities before changes in working capital). Ad- At 1,462million, net cash used in investing activities was
justments for changes in working capital (excluding financial liabil- 375million higher than in the previous year. The most significant
ities) result in net cash from or used in operating activities. item was the cash paid to acquire property, plant and equipment,
Net cash from operating activities rose from 3,040million to and intangible assets, which was up 354million on the previous
3,444million in financial year 2015, despite the 554million de- year, at 2,104million. More than one-third of the investments were
cline in EBIT. attributable to the Express division and related mainly to the main-
The depreciation, amortisation and impairment losses con- tenance of the aircraft fleet and expansion of the global and regional
tained in EBIT are non-cash effects and are therefore eliminated. hubs in Leipzig, Cincinnati, Singapore, Brussels and East Midlands.
They increased from 1,381million to 1,665million in the report- Proceeds from the disposal of non-current assets had an offsetting
ing year, primarily due to the impairment losses of 310million effect, increasing from 322million to 437million. This included
recognised in relation to NFE. The gains on the disposal of non- the proceeds from the sale of the investments in Sinotrans and
current assets of 261million are not included in net cash from Kings Cross, amongst other things.
operating activities in the cash flow statement. They have therefore The cash inflow from the disposal of current financial assets
been adjusted in the net income from the disposal of non-current declined by 200million. The purchase and sale of money market
assets and are presented instead in the cash flows from investing funds, in particular, had increased this item in the previous year,
activities. This item includes the proceeds from the sale of the invest with a total cash inflow of 400million. This compares with a cash
ments in Sinotrans and Kings Cross, in particular. inflow of 200million in the reporting period from the sale of
Non-cash income and expenses, which increased EBIT by money market funds.
68million but did not lead to a cash inflow, were also adjusted. In
the previous year, at 4 million non-cash income and expenses were
markedly lower, due to the remeasurement of assets in particular.
At 495million, the change in provisions declined by 203million
year-on-year, above all because restructuring provisions in the
Express division had been reversed in the previous year.

182
The assets acquired and liabilities assumed in the course of Free cash flow is considered to be an indicator of how much cash is
company acquisitions undertaken in financial years 2015 and 2014 available to the company for dividend payments or the repayment
are presented below, in accordance with IAS7.40 d, Note 2. of debt.
Free cash flow rose from 1,345million in the previous year to
m 1,724million in 2015. This is primarily attributable to the signifi
2014 2015 cant increase in net cash from operating activities and cash inflows
Non-current assets 3 0 from the disposal of equity investments. Free cash flow was reduced
Current assets (excluding cash and cash due primarily to the increased amount of cash paid to acquire prop-
equivalents) 11 0
erty, plant and equipment, and intangible assets.
Non-current provisions and liabilities 0 0
Current provisions and liabilities 9 0
47.3 Net cash used in financing activities
At 1,367million, net cash used in financing activities was down by
a substantial 981million on the previous year.
The following table shows the calculation of free cash flow: The repayment of a bond in the previous year made a signifi
cant contribution of 926million towards repayments of non-
Calculation of free cash flow current financial liabilities in the amount of 1,030million, com-
m pared with 33million in 2015. The largest payment item, the
2014 2015 dividend payment to the shareholders of Deutsche Post AG, was up
Net cash from operating activities 3,040 3,444 62million on the previous year at 1,030million.
Sale of property, plant and equipment and By contrast, there was a significant decline in interest paid; in
intangible assets 200 175
the first quarter of 2015, interest rate swaps for bonds were un-
Acquisition of property, plant and equipment
andintangible assets 1,750 2,104 wound, leading to a cash inflow. The accounting treatment of these
Cash outflow arising from change in property, inflows is the same as for the hedged item. For this reason, only
plant and equipment and intangible assets 1,550 1,929 small interest payments of 76million are reported for the year
Disposals of subsidiaries and other business units 4 15 under review (previous year: 188million).
Disposals of investments accounted for using
theequity method and other equity investments 0 223
47.4 Cash and cash equivalents
Acquisition of subsidiaries and other business units 5 0
Acquisition of investments accounted for using
After adjustment for currency effects and the changes in cash and
theequity method and other equity investments 1 0 cash equivalents related to assets held for sale, the cash inflows and
Cash outflow/inflow arising from acquisi- outflows described above produced cash and cash equivalents of
tions/divestitures 2 238 3,608million, Note 34. This represents a year-on-year increase
of 630million.
Net interest paid 143 29
Free cash flow 1,345 1,724

Consolidated Financial Statements NOTES Cash flow disclosures Other disclosures
183
OTHER DISCLOSURES of Management is informed internally at regular intervals about

existing financial risks and the hedging instruments deployed to
48 Risks and financial instruments of the Group mitigate them. Financial instruments are accounted for and meas-
ured in accordance with IAS39.
48.1 Risk management Information on risks and risk mitigation in relation to the
As a result of its operating activities, the Group is exposed to finan- Groups defined benefit retirement plans can be found in Note 42.7.
cial risks that may arise from changes in exchange rates, commodity
prices and interest rates. Deutsche Post DHL Group manages these Liquidity management
risks centrally through the use of non-derivative and derivative The ultimate objective of liquidity management is to secure the solv
financial instruments. Derivatives are used exclusively to mitigate ency of Deutsche Post DHL Group and all Group companies. Con-
non-derivative financial risks, and fluctuations in their fair value sequently, liquidity in the Group is centralised as much as possible
should not be assessed separately from the underlying transaction. in cash pools and managed in the Corporate Center.
The Groups internal risk guidelines govern the universe of The centrally available liquidity reserves (funding availability),
actions, responsibilities and necessary controls regarding the use of consisting of central short-term financial investments and commit-
derivatives. Financial transactions are recorded, assessed and pro- ted credit lines, are the key control parameter. The target is to have
cessed using proven risk management software, which also regularly at least 2billion available in a central credit line.
documents the effectiveness of hedging relationships. Portfolios of The Group had central liquidity reserves of 4.2billion (previ-
derivatives are regularly reconciled with the banks concerned. ous year: 3.8billion) as at 31December2015, consisting of central
To limit counterparty risk from financial transactions, the financial investments amounting to 2.2billion plus a syndicated
Group may only enter into this type of contract with prime-rated credit line of 2billion.
banks. The conditions for the counterparty limits individually as- The maturity structure of non-derivative financial liabilities
signed to the banks are reviewed on a daily basis. The Groups Board within the scope of IFRS7 based on cash flows is as follows:
Maturity structure of financial liabilities

1year to2years to3years to4years to5years 5years
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
At 31December2014
Non-current financial liabilities 82 99 854 580 1,070 2,206
Other non-current liabilities 0 2 2 2 1 154
Non-current liabilities 82 101 856 582 1,071 2,360
Other current liabilities 342
Current liabilities 7,617

184
The maturity structure of the derivative financial instruments based

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

1year to2years to3years to4years to5years 5years
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
At 31December2014
Derivative receivables gross settlement
Cash outflows 1,900 149 15 17 14 37
Cash inflows 1,982 169 28 28 20 50
Net settlement
Cash inflows 5 1 0 0 0 0
Derivative liabilities gross settlement

Cash outflows 2,429 259 0 0 0 0
Cash inflows 2,321 248 0 0 0 0
Net settlement
Cash outflows 30 6 0 0 0 0
Derivative financial instruments entail both rights and obligations. The notional amount of the currency forwards and currency
The contractual arrangement defines whether these rights and ob- swaps used to manage balance sheet currency risks amounted to
ligations can be offset against each other and therefore result in a 3,532million at the reporting date (previous year: 3,257million);
net settlement, or whether both parties to the contract will have to the fair value was 29million (previous year: 35million). For
perform their obligations in full (gross settlement). simplification purposes, fair value hedge accounting was not applied
to the derivatives used, which are reported as trading derivatives
Currency risk and currency management instead.
The international business activities of Deutsche Post DHL Group Currency risks arise from planned foreign currency trans
expose it to currency risks from recognised or planned future transactions if the future foreign currency transactions are settled at ex-
actions: change rates that differ from the rates originally planned or calcu-
Balance sheet currency risks arise from the measurement and lated. These currency risks are also captured centrally in Corporate
settlement of items in foreign currencies that are recognised if the Treasury and managed on a rolling 24-month basis as part of a
exchange rate on the measurement or settlement date differs from hedging programme. The goal is to hedge an average of up to 50%
the rate on recognition. The resulting foreign exchange differences of all significant currency risks over a 24-month period. This makes
directly impact profit or loss. In order to mitigate this impact as far it possible to plan reliably and reduce fluctuations in earnings
as possible, all significant balance sheet currency risks within the caused by currency movements. At the reporting date, an average
Group are centralised at Deutsche Post AG through the in-house of around 39% of the foreign currency risk of the currencies con-
bank function. The centralised risks are aggregated by Corporate cerned was hedged for the next 24 months. The relevant hedging
Treasury to calculate a net position per currency and hedged exter- transactions are recognised using cash flow hedge accounting;
nally based on value-at-risk limits. The currency-related value at Note 48.3, cash flow hedges.
risk (95%/one-month holding period) for the portfolio totalled
5million (previous year: 6million) at the reporting date; the cur-
rent limit was a maximum of 5million.

Consolidated Financial Statements NOTES Other disclosures
185
In total, currency forwards and currency swaps with a notional Interest rate risk and interest rate management
amount of 5,514million (previous year: 5,119million) were out- In March2015, the Group took advantage of the low interest rate
standing at the balance sheet date. The corresponding fair value was environment and unwound all of the interest rate swaps still out-
44million (previous year: 53million). As at the reporting date, standing at the end of 2014 with a notional volume of 1,300mil-
there were no currency options or cross-currency swaps. lion (fair value in previous year: 68million). The unwinding of the
Currency risks resulting from translating assets and liabilities interest rate hedges resulted in a one-time cash inflow of 76mil-
of foreign operations into the Groups currency (translation risk) lion in the first quarter of 2015. In addition, the termination of fair
were not hedged as at 31December2015. value hedges led to the carrying amount of the outstanding bonds
Of the unrealised gains or losses from currency derivatives being adjusted by 65million. There were no reportable interest
recognised in equity as at 31December2015 in accordance with rate hedging instruments as at the balance sheet date.
IAS39, 20million (previous year: 16million) is expected to be The proportion of financial liabilities with short-term interest
recognised in income in the course of 2016. lock-ins, Note 44, amounts to 11% (previous year: 35%) of the
IFRS7 requires the disclosure of quantitative risk data showing total financial liabilities as at the reporting date. The effect of poten-
how profit or loss and equity are affected by changes in exchange tial interest rate changes on the Groups financial position remains
rates at the reporting date. The impact of these changes in exchange insignificant.
rates on the portfolio of foreign currency financial instruments is The quantitative risk data relating to interest rate risk required
assessed by means of a value-at-risk calculation (95% confidence/ by IFRS7 is presented in the form of a sensitivity analysis. This
one-month holding period). It is assumed that the portfolio as at method determines the effects of hypothetical changes in market
the reporting date is representative for the full year. Effects of hypo- interest rates on interest income, interest expense and equity as at
thetical changes in exchange rates on translation risk do not fall the reporting date. The following assumptions are used as a basis
within the scope of IFRS7. The following assumptions are used as a for the sensitivity analysis:
basis for the sensitivity analysis: Primary variable-rate financial instruments are subject to
Primary financial instruments in foreign currencies used by interest rate risk and must therefore be included in the sensitivity
Group companies are hedged by Deutsche Post AGs in-house bank, analysis. Primary variable-rate financial instruments that were
with Deutsche Post AG setting and guaranteeing monthly exchange transformed into fixed-income financial instruments using cash
rates. Exchange rate-related changes therefore have no effect on flow hedges are not included. Changes in market interest rates for
theprofit or loss and equity of the Group companies. Where, in derivative financial instruments used as a cash flow hedge affect
individual cases, Group companies are not permitted to participate equity by changing fair values and must therefore be included in the
in in-house banking for legal reasons, their currency risks from sensitivity analysis. Fixed-income financial instruments measured
primary financial instruments are fully hedged locally through the at amortised cost are not subject to interest rate risk.
use of derivatives. They therefore have no impact on the Groups risk Designated fair value hedges of interest rate risk are not in-
position. cluded in the analysis because the interest-related changes in fair
Hypothetical changes in exchange rates have an effect on the value of the hedged item and the hedging transaction almost fully
fair values of Deutsche Post AGs external derivatives that is reported offset each other in profit or loss for the period. Only the variable
in profit or loss; they also affect the foreign currency gains and portion of the hedging instrument affects net financial income/net
losses from remeasurement at the closing date of the in-house bank finance costs and must be included in the sensitivity analysis.
balances, balances from external bank accounts as well as internal If the market interest rate level as at 31December2015 had
and external loans extended by Deutsche Post AG. The foreign cur- been 100 basis points higher, net finance costs would have increased
rency value at risk of the foreign currency items concerned was by 3million (previous year: increased by 9million). A market
5million at the reporting date (previous year: 6million). In add interest rate level 100 basis points lower would have had the op
ition, hypothetical changes in exchange rates affect equity and the posite effect. All interest rate derivatives had expired or been un-
fair values of those derivatives used to hedge unrecognised firm wound at the reporting date. No interest rate risk with an impact on
commitments and highly probable forecast currency transactions, equity was determined.
which are designated as cash flow hedges. The foreign currency
value at risk of this risk position was 77million as at 31Decem-
ber2015 (previous year: 57million). The total foreign currency
value at risk was 76million at the reporting date (previous year:
56million). The total amount is lower than the sum of the individ-
ual amounts given above, owing to interdependencies.

186
Market risk Default risks are continuously monitored in the operating busi-
As in the previous year, most of the risks arising from commodity ness. The aggregate carrying amounts of financial assets represent
price fluctuations, in particular fluctuating prices for kerosene and the maximum default risk. Trade receivables amounting to
marine diesel fuels, were passed on to customers via operating 7,694million (previous year: 7,825million) are due within one
measures. However, the impact of the related fuel surcharges is de- year. The following table gives an overview of receivables that are
layed by one to two months, so that earnings may be affected tem- past due:
porarily if there are significant short-term fuel price variations.
In addition, a small number of commodity swaps for diesel and Receivables that are past due
marine diesel fuel were used to control residual risks. The notional m
amount of these commodity swaps was 89million (previous year: 2014 2015
53million) with a fair value of 29million (previous year: Carrying amount before impairment loss 8,045 7,910
7million). Neither impaired nor due at the reporting date 5,923 5,353
IFRS7 requires the disclosure of a sensitivity analysis, present- Past due and not impaired at the reporting date
ing the effects of hypothetical commodity price changes on profit Up to 30 days 750 874
or loss and equity. 31 to 60 days 591 459
Changes in commodity prices affect the fair values of the de- 61 to 90 days 270 197
rivatives used to hedge highly probable forecast commodity pur- 91 to 120 days 109 74
121 to 150 days 43 38
chases (cash flow hedges) and the hedging reserve in equity. If, as
151 to 180 days 24 16
at the reporting date, the commodity prices underlying the deriva
More than 180 days 57 13
tives had been 10% higher than the commodity prices determined
on the market, this would have increased the fair values and equity
by 4million (previous year: 3million). A corresponding decline
in commodity prices would have had the opposite effect. Trade receivables changed as follows:
In the interests of simplicity, some of the commodity price
hedges are not recognised as cash flow hedges. For these derivatives, Receivables
commodity price changes affect the fair values of the derivatives and, m
consequently, the income statement. As in the previous year, if the 2014 2015
underlying commodity prices had been 10% higher at the reporting
Gross receivables
date, this would have increased the fair values in question and, con- At 1January 7,232 8,045
sequently, operating profit by 1million. A corresponding decline Changes 813 135
in the commodity prices would have reduced the fair values of the At 31December 8,045 7,910
derivatives and operating profit by 1million. Valuation allowances
At 1January 210 220
Credit risk Changes 10 4
The credit risk incurred by the Group is the risk that counterparties At 31December 220 216
fail to meet their obligations arising from operating activities and Carrying amount at 31December 7,825 7,694
from financial transactions. To minimise credit risk from financial

transactions, the Group only enters into transactions with prime-
rated counterparties. The Groups heterogeneous customer struc- All other financial instruments are neither past due nor impaired.
ture means that there is no risk concentration. Each counterparty Impairment losses of 25million (previous year: 22million)
is assigned an individual limit, the utilisation of which is regularly were recognised for other assets.
monitored. A test is performed at the balance sheet dates to estab-
lish whether an impairment loss needs to be charged on the positive
fair values due to the individual counterparties credit quality. This
was not the case for any of the counterparties as at 31Decem-
ber2015.

187
48.2 Collateral
554million (previous year: 600million) of collateral is recog-
nised in non-current financial assets as at the balance sheet date. Of
this amount, 358million relates to the restricted cash transferred
to a blocked account with Commerzbank AG for any payments that
may be required due to the EU state aid proceedings, Note 51. An
amount of 111million relates primarily to liabilities in conjunction
with the settlement of Deutsche Post AGs residential building loans.
85million relates to sureties paid.
Collateral of 84million is recognised in current financial
assets (previous year: 39million). Of this amount, 63million
concerns collateral in connection with an M&A transaction and
8million collateral deposited for US cross-border leases (QTE
leases).
48.3 Derivative financial instruments
Fair value hedges

The interest rate swaps designated as fair value hedges as at 31De-
cember2014 were unwound in the first quarter of 2015. This led to
an adjustment to the carrying amount which will be amortised
using the effective interest method and reduce the interest expense
in net finance cost in future. An amount of 55million resulting
from the adjustment to the carrying amount had not yet been am-
ortised as at 31December2015.
Cash flow hedges

The Group uses currency forwards and currency swaps to hedge the
cash flow risk from future foreign currency operating revenue and
expenses. The fair values of currency forwards and currency swaps
amounted to 15million at the reporting date (previous year:
18million). The hedged items will have an impact on cash flow
by 2017.
The risks from the purchase of diesel and marine diesel fuels,
which cannot be passed on to customers, were hedged using com-
modity swaps that will affect cash flow by 2017. The fair value of
these cash flow hedges amounted to 25million (previous year:
3million).

188
48.4 Additional disclosures on the financial instruments instruments as held to maturity in the reporting period or in the
usedintheGroup previous financial year, this measurement category is omitted in the
The Group classifies financial instruments in line with the respective overview. The following table reconciles the classes to the categories
balance sheet items. Since the Group did not classify any financial given in IAS39 and their respective fair values as at the reporting date:
Reconciliation of carrying amounts in the balance sheet at 31December2015

m
Carrying amount Carrying amount by IAS39 measurement category
Financial assets and liabilities at fair value Available-for-sale

through profit or loss financial assets
Trading Fair value option
Assets
Non-current financial assets 1,113
at cost 867 0 0 11
at fair value 246 0 128 108
Trade receivables 7,694
at cost 7,694 0 0 0
Other current assets 2,172
at cost 868 0 0 0
outside IFRS7 1,304 0 0 0
Current financial assets 179
at cost 110 0 0 0
Cash and cash equivalents 3,608 0 0 0
Total ASSETS 14,766 7 128 146

Non-current financial liabilities1 4,625
at cost 4,608 0 0 0
Other non-current liabilities 234
at cost 142 0 0 0
outside IFRS7 92 0 0 0
at cost 445 0 0 0
at cost 7,069 0 0 0
Other current liabilities 4,255
at cost 355 0 0 0
Total EQUITY AND LIABILITIES 16,736 46 0 0
1
The Deutsche Post AG and Deutsche Post Finance B.V. bonds included in non-current financial liabilities are carried at amortised costs. 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 recognised neither at full fair value nor at amortised cost. The convertible bond issued by Deutsche Post AG
inDecember2012 had a fair value of 1,318million as at the balance sheet date. The fair value ofthe debt component at the balance sheet date was 1,004million.

189
Other financial instruments Fair value of financial instruments

outside the scope of IAS39 under IFRS7
Loans and receivables/ Derivatives designated Lease receivables/

other financial liabilities as hedging instruments finance lease liabilities
806 0 50 867
0 10 0 246
7,694 0 0 n.a.
868 0 0 n.a.
0 0 0 n.a.
105 0 5 n.a.
0 35 0 69
3,608 0 0 n.a.
13,081 45 55
4,467 0 141 5,192

0 17 0 17
142 0 0 142
0 0 0 n.a.
419 0 26 n.a.
0 62 0 108
7,069 0 0 n.a.
355 0 0 n.a.
0 0 0 n.a.
12,452 79 167

190
Reconciliation of carrying amounts in the balance sheet at 31December2014

m
Carrying amount Carrying amount by IAS39 measurement category
Financial assets and liabilities at fair value Available-for-sale

through profit or loss financial assets
Trading Fair value option
Assets
Non-current financial assets 1,363
at cost 907 0 0 24
at fair value 456 53 114 264
Trade receivables 7,825
at cost 7,825 0 0 0
Other current assets 2,415
at cost 1,048 0 0 0
Current financial assets 351
at cost 68 0 0 0
Cash and cash equivalents 2,978 0 0 0
Total ASSETS 14,932 90 114 496

Non-current financial liabilities1 4,683
at cost 4,671 0 0 0
Other non-current liabilities 255
at cost 160 0 0 0
outside IFRS7 95 0 0 0
at cost 353 0 0 0
at cost 6,922 0 0 0
Other current liabilities 4,196
at cost 390 0 0 0
Total EQUITY AND LIABILITIES 16,542 75 0 0
1
The Deutsche Post AG and Deutsche Post Finance B.V. bonds included in current and non-current financial liabilities were partly designated as hedged items in a fair value hedge and are
thussubject to a basis adjustment. The bonds are therefore recognised neither at full fair value nor at amortised cost. Non-current financial liabilities also include the convertible bond
issuedby Deutsche Post AG in December2012. The listed bond had a fair value of 1,384million at 31December2014. The fair value of the debt component was 1,006million.
If there is an active market for a financial instrument (e.g. stock Cash and cash equivalents, trade receivables and other receiv-
exchange), the fair value is determined by reference to the market ables have predominantly short remaining maturities. As a result,
or quoted exchange price at the balance sheet date. If no fair value their carrying amounts as at the reporting date are approximately
is available in an active market, the quoted prices in an active mar- equivalent to their fair values. Trade payables and other liabilities
ket for similar instruments or recognised valuation techniques are generally have short remaining maturities; the recognised amounts
used to determine fair value. The valuation techniques used incor- approximately represent their fair values.
porate the key factors determining the fair value of the financial The financial assets classified as available for sale include shares
instruments using valuation parameters that are derived from the in partnerships and corporations for which there is no active market
market conditions as at the balance sheet date. Counterparty risk is in the amount of 11million (previous year: 24million).
analysed on the basis of the current credit default swaps signed by
the counterparties. The fair values of other non-current receivables
and held-to-maturity financial investments with remaining matur-
ities of more than one year correspond to the present values of the
payments related to the assets, taking into account current interest
rate parameters.

191
Other financial instruments Fair value of financial instruments

outside the scope of IAS39 under IFRS7
Loans and receivables/ Derivatives designated Lease receivables/

other financial liabilities as hedging instruments finance lease liabilities
834 0 49 906
0 25 0 456
7,825 0 0 n.a.
1,048 0 0 n.a.
0 0 0 n.a.
61 0 7 n.a.
0 38 0 283
2,978 0 0 n.a.
12,746 63 56
4,480 0 191 5,461

0 12 0 12
160 0 0 160
0 0 0 n.a.
334 0 19 n.a.
0 58 0 133
6,922 0 0 n.a.
390 0 0 n.a.
0 0 0 n.a.
12,286 70 210
As no future cash flows can be reliably determined, the fair The following table presents the financial instruments recog-
values cannot be determined using valuation techniques. There are nised at fair value and those financial instruments whose fair value
no plans to sell or derecognise significant shares of the available- is required to be disclosed; the financial instruments are presented
for-sale financial assets recognised as at 31December2015 in the by the level in the fair value hierarchy to which they are assigned.
near future. The simplification option under IFRS7.29a was exercised for
Available-for-sale financial assets measured at fair value relate cash and cash equivalents, trade receivables, other assets, trade pay-
to equity and debt instruments. ables and other liabilities with predominantly short maturities.
Financial assets at fair value through profit or loss include secur Their carrying amounts as at the reporting date are approximately
ities to which the fair value option was applied, in order to avoid equivalent to their fair values. Not included are financial invest-
accounting inconsistencies. There is an active market for these assets, ments in equity instruments for which there is no quoted price in
which are recognised at fair value. an active market and which therefore have to be measured at cost.

192
Financial assets and liabilities

m
Class Level 11 Level 22 Level 33 Total
31December2015
Financial assets
Non-current financial assets 153 866 83 1,102
Current financial assets 27 42 0 69
Total 180 908 83 1,171
Non-current liabilities 4,232 338 0 4,570
Current liabilities 0 107 0 107
Total 4,232 445 0 4,677
31December2014
Financial assets
Non-current financial assets 246 961 132 1,339
Current financial assets 208 75 0 283
Total 454 1,036 132 1,622
Non-current liabilities 5,004 409 0 5,413
Current liabilities 0 132 1 133
Total 5,004 541 1 5,546
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.
Level 1 mainly comprises equity instruments measured at fair value Level 3 mainly comprises the fair values of equity investments
and debt instruments measured at amortised cost. and options associated with M&A transactions. These options are
In addition to financial assets and financial liabilities measured measured using recognised valuation models, taking plausible as-
at amortised cost, commodity, interest rate and currency derivatives sumptions into account. The fair values of the derivatives depend
are reported under Level 2. The fair values of the derivatives are largely on financial ratios. Financial ratios strongly influence the fair
measured on the basis of discounted expected future cash flows, values of assets and liabilities. Increasing financial ratios lead to
taking into account forward rates for currencies, interest rates and higher fair values, whilst decreasing financial ratios result in lower
commodities (market approach). For this purpose, price quotations fair values.
observable on the market (exchange rates, interest rates and com- No financial instruments were transferred between levels in
modity prices) are imported from information platforms customary financial year 2015. The following table shows the effect on net gains
in the market into the treasury management system. The price and losses of the financial instruments categorised within level 3 as
quotations reflect actual transactions involving similar instruments at the reporting date:
on an active market. Any currency options used are measured using
the Black-Scholes option pricing model. All significant inputs used
to measure the derivatives are observable on the market.

193
Unobservable inputs (Level 3)

m 2014 2015
Assets Liabilities Assets Liabilities
Equity Debt Derivatives, Equity Debt Derivatives,

instruments instruments of which equity derivatives instruments instruments of which equity derivatives
At 1January 93 0 2 132 0 1
Gains and losses
(recognisedinprofit and loss)1 0 0 1 0 0 1
Gains and losses
(recognisedinOCI)2 45 0 0 38 0 0
Additions 0 0 0 0 0 0
Disposals 14 0 0 95 0 0
Currency translation effects 8 0 0 8 0 0
At 31December 132 0 1 83 0 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- If the right of set-off is not enforceable in the normal course of
cordance with the individual IAS39 measurement categories are as business, the financial assets and liabilities are recognised in the
follows: balance sheet at their gross amounts as at the reporting date. The
master netting arrangement creates a conditional right of set-off
Net gains and losses by measurement category that can only be enforced by taking legal action.
m To hedge cash flow and fair value risks, Deutsche Post AG
2014 2015 enters into financial derivative transactions with a large number of
Loans and receivables 114 136 financial services institutions. These contracts are subject to a stand-
Available-for-sale financial assets
ardised master agreement for financial derivative transactions. This
Net gains recognised in OCI 0 54 agreement provides for a conditional right of set-off, resulting in
Net gains reclassified to profit or loss 0 172 the recognition of the gross amount of the financial derivative trans-
Net losses recognised in profit or loss 0 10 actions at the reporting date. The conditional right of set-off is pre-
Financial assets and liabilities at fair value sented in the table.
throughprofit or loss Settlement processes arising from services related to postal
Trading 0 0
deliveries are subject to the Universal Postal Convention and the
Fair value option 0 0
REIMS Agreement. These agreements, particularly the settlement
Other financial liabilities 1 0
conditions, are binding on all public postal operators for the spe
cified contractual arrangements. Imports and exports between the
parties to the agreement during a calendar year are summarised in
The net gains and losses mainly include the effects of the fair value an annual statement of account and presented on a net basis in the
measurement, impairment and disposals (disposal gains/losses) of final annual statement. Receivables and payables covered by the
financial instruments. Dividends and interest are not taken into Universal Postal Convention and the REIMS Agreement are pre-
account for the financial instruments measured at fair value through sented on a net basis at the reporting date. The tables show the re-
profit or loss. Income and expenses from interest and commission ceivables and payables before and after offsetting.
agreements of the financial instruments not measured at fair value The following tables show the impact of netting agreements
through profit or loss are explained in the income statement disclos based on master netting arrangements or similar agreements on
ures. financial assets and financial liabilities as at the reporting date:
Financial assets and liabilities are set off on the basis of netting
agreements (master netting arrangements) only if an enforceable
right of set-off exists and settlement on a net basis is intended as at
the reporting date.

194
Offsetting assets
m Assets and liabilities not set off
in the balance sheet
Recognised net Liabilities that

Gross amount Gross amount amount of donot meet Collateral
ofassets ofliabilities set off assets set off offsetting criteria received Total
Assets at 31December2015
Derivative financial assets1 52 0 52 51 0 1
Trade receivables 7,850 156 7,694 0 0 7,694
Assets at 31December2014
Derivative financial assets1 153 0 153 145 0 8
Trade receivables 7,954 129 7,825 0 0 7,825
1
Excluding derivatives from M&A transactions.
Offsetting liabilities
m Assets and liabilities not set off
in the balance sheet
Recognised net Assets that

Gross amount Gross amount amount of donotmeet Collateral
ofliabilities ofassets set off liabilities set off offsetting criteria provided Total
Liabilities at 31December2015
Derivative financial liabilities1 124 0 124 51 0 73
Trade payables 7,225 156 7,069 0 0 7,069
Liabilities at 31December2014
Derivative financial liabilities1 145 0 145 145 0 0
Trade payables 7,051 129 6,922 0 0 6,922
1
Excluding derivatives from M&A transactions.
49 Contingent liabilities 50 Other financial obligations

The Groups contingent liabilities break down as follows: In addition to provisions, liabilities and contingent liabilities, there
are other financial obligations amounting to 7,582million (previ-
Contingent liabilities ous year: 7,155million) from non-cancellable operating leases as
m defined by IAS17.
2014 2015 The Groups future non-cancellable payment obligations under
Guarantee obligations 89 87 leases are attributable to the following asset classes:
Warranties 80 74
Liabilities from litigation risks 183 69 Lease obligations
Other contingent liabilities 1,428 1,068
m
Total 1,780 1,298
2014 2015
Land and buildings 5,375 5,929
Aircraft 1,083 1,072
The 482million reduction in contingent liabilities is largely due to Transport equipment 576 472
the remeasurement of a tax item. The other contingent liabilities Technical equipment and machinery 67 70
Other equipment, operating and office equipment 43 32
include an obligation from a formal state aid investigation, Note51,
IT equipment 11 7
a potential obligation to make settlement payments in the USA,
Total 7,155 7,582
Note 12, and other tax-related obligations.
The increase in lease obligations by 427million to 7,582million

is due to currency effects, as well as the conclusion of new leases.

195
Maturity structure of minimum lease payments operations at the end of 2011 and retracted its appeal on 19Decem-
m ber2011. Deutsche Post AG continues to pursue its appeal against
2014 2015 the Bundesnetzagentur ruling.
Less than 1 year 1,626 1,725 In its ruling of 30April2012, the Bundesnetzagentur deter-
More than 1 year to 2 years 1,223 1,298 mined that Deutsche Post AG had contravened the discrimination
More than 2 years to 3 years 975 1,019 provisions under the Postgesetz by charging different fees for the
More than 3 years to 4 years 751 764 transport of identical invoices and invoices containing different
More than 4 years to 5 years 501 534
amounts. Deutsche Post AG was requested to discontinue the dis-
More than 5 years 2,079 2,242
crimination determined immediately, but no later than 31Decem-
Total 7,155 7,582
ber2012. The ruling was implemented on 1January2013. Deutsche
Post does not share the legal opinion of the Bundesnetzagentur and
appealed the ruling.
The present value of discounted minimum lease payments is On 25January2012, the European Commission issued a ruling
6,311million (previous year: 5,827million), based on a discount on the formal investigation regarding state aid that it had initiated
factor of 4.25% (previous year: 4.75%). Overall, rental and lease on 12September2007. In its review, the European Commission
payments amounted to 2,982million (previous year: 2,588mil- determined that Deutsche Post AG was not overcompensated for
lion), of which 2,096million (previous year: 1,845million) re- providing universal services between 1989 and 2007 using state
lates to non-cancellable leases. 2,596million (previous year: resources. It also did not find fault with the guarantees issued by the
2,426million) of future lease obligations from non-cancellable German state for legacy liabilities. By contrast, in its review of fund-
leases is primarily attributable to Deutsche Post Immobilien GmbH. ing for civil servants pensions, the European Commission con-
The purchase obligation for investments in non-current assets cluded that illegal state aid had, in part, been received. It found that
amounts to 140million (previous year: 137million). the pension relief granted to Deutsche Post AG by the Bundesnetz
agentur during the price approval process led to Deutsche Post AGs
51 Litigation receiving a benefit, which it must repay to the Federal Republic of
A large number of the postal services rendered by Deutsche Post AG Germany; in addition, it must also be ensured that no benefits are
and its subsidiaries are subject to sector-specific regulation by the received in the future which could be considered illegal state aid.
Bundesnetzagentur (German federal network agency) pursuant to The Commission furthermore stated that the precise amount to be
the Postgesetz (German Postal Act). As the regulatory authority, the repaid was to be calculated by the Federal Republic of Germany. In
Bundesnetzagentur approves or reviews such prices, formulates the a press release, the European Commission had referred to an
terms of downstream access and has special supervisory powers to amount of between 500million and 1billion. Deutsche Post AG
combat market abuse. This general regulatory risk could lead to a is of the opinion that the Commissions state aid decision of 25Janu
decline in revenue and earnings in the event of negative decisions. ary2012 cannot withstand legal review and has filed an appeal with
Legal risks arise, amongst other things, from pending admin- the European Court of Justice in Luxembourg. The Federal R epublic
istrative court appeals by an association against the price approvals of Germany has similarly appealed the decision.
granted by the Bundesnetzagentur under the price cap procedure for To implement the state aid ruling, the federal government
2008, 2013 and 2016 to 2018. The Federal Administrative Court called upon Deutsche Post AG on 29May2012 to make a payment
decided on the appeals by the association against the price approvals of 298million including interest. Deutsche Post AG paid that
granted by the Bundesnetzagentur under the price cap procedure for amount to a trustee on 1June2012 and appealed the recovery order
2003, 2004 and 2005 on 5August2015. The Federal Administrative to the Administrative Court. The appeal, however, has been sus-
Court revoked the price approvals concerned in relation to the pended pending a ruling from the European Court. Deutsche Post AG
association as a customer of Deutsche Post. However, the Bundes made additional payments to the trustee of 19.4million on 2Janu
netzagentur price approvals concerned remain applicable to the ary2013, 15.6million on 2January2014, 20.2million on 2Janu
general public and may no longer be contested. ary2015 and 20.1million on 4January2016. Those payments
In its decision dated 14June2011, the Bundesnetzagentur were reported in the balance sheet under non-current assets; the
concluded that FIRST MAIL Dsseldorf GmbH, a subsidiary of earnings position remained unaffected.
Deutsche Post AG, and Deutsche Post AG had contravened the dis- The European Commission has not expressed its final accept-
counting and discrimination prohibitions under the Postgesetz. The ance of the calculation of the state aid to be repaid. On 17Decem-
companies were instructed to remedy the breaches that had been ber2013, it initiated proceedings with the European Court of Justice
identified. Both companies appealed against the ruling. Further- against the Federal Republic of Germany to effect a higher repay-
more, FIRST MAIL Dsseldorf GmbH filed an application to sus- ment amount. In its decision on those proceedings of 6May2015,
pend the execution of the ruling until a decision was reached in the the European Court of Justice merely ruled that Germany must
principal proceedings. The Cologne Administrative Court and the independently define the individual markets before making the
Mnster Higher Administrative Court both dismissed this applica- calculation. It did not rule on the amount of the repayment claim.
tion. FIRST MAIL Dsseldorf GmbH discontinued its mail delivery

196
In its ruling of 18September2015, the General Court of the On 30June2014, DHL Express France received a statement of
European Union held that the decision of the European Commis- objections from the French competition authority alleging anti
sion dated 12September2007 regarding the initiation of a formal competitive conduct in the domestic express business, a business,
state aid investigation was null and void based upon a complaint which had been divested in June2010. On 15December2015,
filed by Deutsche Post AG. The legal action did not involve the sub- Deutsche Post DHL Group received the decision of the French au-
stantive proceedings but rather the procedural side issue of whether thority regarding the fuel surcharges and price fixing. The decision
the European Commission was acting within its rights in reopening has been appealed by the Group. Further details cannot be given at
the state aid proceedings in 2007. In 2007, Deutsche Post AG had this point in time.
filed an action against the reopening of the state aid proceedings as In view of the ongoing or announced legal proceedings men-
a precautionary measure. The substantive proceedings of the legal tioned above, no details are given on their presentation in the finan-
dispute will continue, i.e. the action brought by Deutsche Post AG cial statements.
against the EU state aid ruling of 25January2012 that is still pend-
ing before the General Court of the European Union. 52 Share-based payment
If the appeals of Deutsche Post AG or the federal government Assumptions regarding the price of Deutsche Post AGs shares and
against the state aid ruling are successful, the opportunity exists that assumptions regarding employee fluctuation are taken into account
the payment of 298million and the payments of 19.4million, when measuring the value of share-based payments for executives.
15.6million, 20.2million and 20.1million made in addition as All assumptions are reviewed on a quarterly basis. The staff costs are
well as the additional annual payments of around 20million to be recognised pro rata in profit or loss to reflect the services rendered
made in the future will be reimbursed. Reimbursement would as consideration during the vesting period (lock-up period).
only affect the liquidity of Deutsche Post AG; the earnings position
would remain unaffected. 52.1 Share-based payment for executives (Share Matching Scheme)
Although Deutsche Post AG and the federal government are of Under the share-based payment system for executives (Share
the opinion that the state aid decision of 25January2012 cannot Matching Scheme), certain executives receive part of their vari
withstand legal review, it cannot be ruled out that Deutsche Post AG ableremuneration for the financial year in the form of shares of
will ultimately be required to make a potentially higher payment, Deutsche Post AG in the following year (deferred incentive shares).
which could have an adverse effect on earnings, Note 49. All Group executives can specify an increased equity component
On 5November2012, the Bundeskartellamt (German federal individually by converting a further portion of their variable remu-
cartel office) initiated proceedings against Deutsche Post AG on sus- neration for the financial year (investment shares). After a four-year
picion of abusive behaviour with respect to mail transport for major lock-up period during which the executive must be employed by
customers. Based upon information from Deutsche Posts competi the Group, they again receive the same number of Deutsche Post AG
tors, the authorities suspected that the company had violated Ger- shares (matching shares). Assumptions are made regarding the con-
man and European antitrust law. In a decree dated 2July2015, the version behaviour of executives with respect to their relevant bonus
Bundeskartellamt determined that such violations had indeed taken portion. Share-based payment arrangements are entered into each
place but also that Deutsche Post had discontinued them at the end year with 1December (from financial year 2015; until 2014: 1Janu-
of 2013. No fine was imposed. The company appealed the decision ary) of the respective year and 1April of the following year being
to the Higher Regional Court in Dsseldorf on 4August2015 and the grant dates for each years tranche. Whereas incentive shares and
submitted a statement setting out the grounds of appeal within the matching shares are classified as equity-settled share-based pay-
prescribed period. ments, investment shares are compound financial instruments and
Since 1July2010, as a result of the revision of the relevant tax the debt and equity components must be measured separately. How-
exemption provisions, the VAT exemption has only applied to those ever, in accordance with IFRS2.37, only the debt component is
specific universal services in Germany that are not subject to indi- measured due to the provisions of the Share Matching Scheme. The
vidually negotiated agreements or provided on special terms (dis- investment shares are therefore treated as cash-settled share-based
counts etc.). Deutsche Post AG does not believe that the legislative payments.
amendment fully complies with the applicable provisions of Euro-
pean Community law. Due to the legal uncertainty resulting from
the new legislation, Deutsche Post AG is endeavouring to clarify
certain key issues with the tax authorities, Note 49.

197
Share Matching Scheme
2010 tranche 2011 tranche 2012 tranche 2013 tranche 2014 tranche 2015 tranche
Grant date of incentive shares and associated matching
shares 1 Jan.2010 1 Jan.2011 1 Jan.2012 1 Jan.2013 1 Jan.2014 1 Dec.2015
Grant date of matching shares awarded for investment shares 1 Apr. 2011 1 Apr. 2012 1 Apr. 2013 1 Apr. 2014 1 Apr. 2015 1 Apr. 2016
Term months 63 63 63 63 63 52
End of term March2015 March2016 March2017 March2018 March2019 March2020
Share price at grant date (fair value)

Incentive shares and associated matching shares 13.98 12.90 12.13 17.02 25.91 27.12
Matching shares awarded for investment shares 12.91 14.83 18.22 27.18 29.12 27.001
Number of deferred incentive shares thousands 638 660 479 337 332 2742
Number of matching shares expected

Deferred incentive shares thousands n.a. 594 431 303 299 247
Investment shares thousands n.a. 940 709 567 596 463
Matching shares issued thousands 1,493
1
Estimated provisional amount, will be determined on 1April2016.
2
Expected number.
The claims to the matching shares under the 2010 tranche were the issue date, the SARs granted can be fully or partly exercised
settled in April2015. In financial year 2014, the Group increased its within a period of two years provided an absolute or relative per-
share capital for this purpose. In addition, treasury shares were pur- formance target is achieved at the end of the waiting period. Any
chased to settle the 2014 tranche. A total of 2.5million treasury SARs not exercised during this two-year period will expire. To de-
shares were issued to the executives concerned to settle the two termine how many if any of the granted SARs can be exercised,
tranches. the average share price or the average index is compared for the
In the 2015 consolidated financial statements, 65million (pre- reference period and the performance period. The reference period
vious year: 65million) was recognised in capital reserves for the comprises the last 20 consecutive trading days before the issue date.
granting of variable remuneration components under this system, The performance period is the last 60 trading days before the end
Note 37. of the waiting period. The average (closing) price is calculated as
the average closing price of Deutsche Post shares in Deutsche Brse
52.2 Long-Term Incentive Plan (2006 LTIP) for members of the Board AGs Xetra trading system.
of Management The absolute performance target is met if the closing price of
Since 1July2006, the members of the Board of Management receive Deutsche Post shares is at least 10, 15, 20, or 25% above the issue
stock appreciation rights (SARs) under the 2006 LTIP. Each SAR price. The relative performance target is tied to the performance of
under the 2006 LTIP entitles the holder to receive a cash settlement the shares in relation to the STOXX Europe 600 Index (SXXP, ISIN
equal to the difference between the average closing price of Deutsche EU0009658202). It is met if the share price equals the index per-
Post shares during the last five trading days before the exercise date formance or if it outperforms the index by at least 10%.
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.
2006 LTIP
SARs 2010 tranche 2011 tranche 2012 tranche 2013 tranche 2014 tranche 2015 tranche
Issue date 1July2010 1July2011 1July2012 1 Aug.2013 1 Sept. 2014 1 Sept. 2015
Issue price () 12.27 12.67 13.26 20.49 24.14 25.89
Waiting period expires 30June2014 30June2015 30June2016 31July2017 31 Aug.2018 31 Aug.2019
Further disclosures on share-based payment for members of the

Board of Management can be found in Note 53.2.

198
52.3 SAR Plan for executives e xercised them as early as 2014. All of the performance targets for
From July2006 to August2013, selected executives received annual the 2011 tranche were also met on expiry of the waiting period on
tranches of SARs under the SAR Plan. This allowed them to receive 30June2015. Consequently, all SARs granted were able to be exer-
a cash payment within a defined period in the amount of the differ- cised. The majority of executives exercised the SARs during the third
ence between the respective price of Deutsche Post shares and the quarter of 2015. Starting in 2014, SARs were no longer issued to
fixed issue price if demanding performance targets are met (see executives under the SAR Plan. The Performance Share Plan (PSP)
disclosures on the 2006 LTIP for members of the Board of Manage- for executives replaces the SAR Plan. All earlier tranches issued
ment). Due to the strong share price performance since SARs were under the SAR Plan remain valid.
issued in 2010, all of the related performance targets were met More details on the SAR Plan tranches are shown in the follow-
onexpiry of the waiting period on 30June2014. All SARs under ing table:
thistranche were therefore able to be exercised. Most executives
SAR Plan
SARs 2010 tranche 2011 tranche 2012 tranche 2013 tranche

Issue date 1July2010 1July2011 1July2012 1 Aug.2013
Issue price () 12.27 12.67 13.26 20.49
Waiting period expires 30June2014 30June2015 30June2016 31July2017
The fair value of the SAR Plan and the 2006 LTIP was determined Performance Share Plan
using a stochastic simulation model. As a result, an expense of 2014 2015
33million was recognised for financial year 2015 (previous year: tranche tranche
105million). Grant date 1 Sept. 2014 1 Sept. 2015
A provision for the 2006 LTIP and the SAR Plan was recognised Exercise price 24.14 25.89
as at the balance sheet date in the amount of 175million (previous Waiting period expires 31 Aug.2018 31 Aug.2019
year: 271million), of which 36million (previous year: 67mil- Risk-free interest rate 0.11% 0.10%
Initial dividend yield of Deutsche Post shares 3.52% 3.28%
lion) was attributable to the Board of Management. 15million of
Yield volatility of Deutsche Post shares 23.46% 24.69%
the total provision (previous year: 6million) related to rights ex-
Yield volatility of Dow Jones EURO STOXX 600 Index 10.81% 16.40%
ercisable at the reporting date.
Covariance of Deutsche Post shares to Dow Jones
EURO STOXX 600 Index 1.74% 2.94%
52.4 Performance Share Plan for executives
Quantity
The Annual General Meeting on 27May2014 resolved to introduce Rights outstanding at 1January2015 4,476,948 0
the Performance Share Plan (PSP) for executives. This plan replaces Rights granted 0 4,223,718
the former share-based payment system (SAR Plan) for executives. Rights lapsed 207,660 9,882
Whereas the SAR Plan involved cash-settled share-based payments, Rights outstanding at 31December2015 4,269,288 4,213,836
under the PSP shares are issued to participants at the end of the
waiting period. Under the PSP, the granting of the shares at the end
of the waiting period is linked to the achievement of demanding
performance targets. The performance targets under the PSP are Future dividends were taken into account, based on a moderate
identical to the performance targets under the LTIP for members of increase in dividend distributions over the respective measurement
the Board of Management. period.
Performance Share Units (PSUs) were issued to selected execu The average remaining maturity of the outstanding PSUs as at
tives under the PSP for the first time on 1September2014. It is not 31December2015 was 38 months.
planned that members of the Board of Management will participate
in the PSP. The Long-Term Incentive Plan (2006 LTIP) for members 53 Related party disclosures
of the Board of Management remains unchanged.
In the consolidated financial statements as at 31December 2015, 53.1 Related party disclosures (companies and Federal Republic
a total of 10million (previous year: 3million) has been added to ofGermany)
capital reserves for the purposes of the plan, an equal amount was All companies classified as related parties that are controlled by the
recognised in staff costs, Notes 14 and 37. Group or on which the Group can exercise significant influence are
The value of the PSP is measured using actuarial methods based recorded in the list of shareholdings, which can be accessed on the
on option pricing models (fair value measurement). website, www.dpdhl.com/en/investors.html, together with informa-
tion on the equity interest held, their equity and their net profit or
loss for the period, broken down by geographical areas.

199
Deutsche Post AG maintains a variety of relationships with the Acts on the Reduction of Misdirected Housing Subsidies) relating
Federal Republic of Germany (Federal Republic) and other com to housing benefits granted by Deutsche Post AG. Deutsche Post AG
panies controlled by the Federal Republic. transfers the amounts to the Federal Republic on a monthly basis.
The Federal Republic is a customer of Deutsche Post AG and as Deutsche Post AG also entered into an agreement with the
such uses the companys services. Deutsche Post AG has direct busi- Federal Ministry of Finance dated 30January2004 relating to the
ness relationships with the individual public authorities and other transfer of civil servants to German federal authorities. Under this
government agencies as independent individual customers. The agreement, civil servants are seconded with the aim of transferring
services provided for these customers are insignificant in respect of them initially for six months, and are then transferred permanently
Deutsche Post AGs overall revenue. if they successfully complete their probation. Once a permanent
transfer is completed, Deutsche Post AG contributes to the cost in-
Relationships with KfW curred by the Federal Republic by paying a flat fee. In 2015, this
KfW supports the Federal Republic in continuing to privatise com- initiative resulted in 122 permanent transfers (previous year: 65)
panies such as Deutsche Post AG or Deutsche Telekom AG. In 1997, and 39 secondments with the aim of a permanent transfer in 2016
KfW, together with the Federal Republic, developed a placeholder (previous year: 87).
model as a tool to privatise government-owned companies. Under
this model, the Federal Republic sells all or part of its investments Relationships with the German Federal Employment Agency
to KfW with the aim of fully privatising these state-owned com Deutsche Post AG and the German Federal Employment Agency
panies. On this basis, KfW has purchased shares of Deutsche Post AG entered into an agreement dated 12October2009 relating to the
from the Federal Republic in several stages since 1997 and executed transfer of Deutsche Post AG civil servants to the Federal Employ-
various capital market transactions using these shares. KfWs current ment Agency. In 2015, as in the previous year, this initiative resulted
interest in Deutsche Post AGs share capital is 20.9%. Deutsche Post AG in no transfers.
is thus considered to be an associate of the Federal Republic.
Relationships with Deutsche Telekom AG and its subsidiaries
Relationships with Bundesanstalt fr Post The Federal Republic holds around 32% of the shares of Deutsche
undTelekommunikation Telekom AG directly and indirectly (via KfW). A control relation-
The Bundesanstalt fr Post und Telekommunikation (BAnstPT) ship exists between Deutsche Telekom AG and the Federal Republic
is a government agency and falls under the technical and legal because the Federal Republic, despite its non-controlling interest,
supervision of the German Federal Ministry of Finance. Under the has a secure majority at the Annual General Meeting due to its
Bundesanstalt-Reorganisationsgesetz (German Federal Agency average presence there. Deutsche Telekom AG is therefore a related
Reorganisation Act), which entered into force on 1December2005, party of Deutsche Post AG. In financial year 2015, Deutsche Post DHL
the Federal Republic directly undertakes the tasks relating to hold- Group provided goods and services (mainly transport services for
ings in Deutsche Bundespost successor companies through the letters and parcels) for Deutsche Telekom AG and purchased goods
Federal Ministry of Finance. It is therefore no longer necessary for and services (such as IT products) from Deutsche Telekom AG.
the BAnstPT to perform the tasks associated with ownership. The
BAnstPT manages the social facilities such as the postal civil service Relationships with Deutsche Bahn AG and its subsidiaries
health insurance fund, the recreation programme, the Versorgungs Deutsche Bahn AG is wholly owned by the Federal Republic. Owing
anstalt der Deutschen Bundespost (VAP) and the welfare service to this control relationship, Deutsche Bahn AG is a related party to
forDeutsche Post AG, Deutsche Postbank AG and Deutsche Tele- Deutsche Post AG. Deutsche Post DHL Group has various business
komAG, as well as setting the objectives for social housing. Since relationships with the Deutsche Bahn Group. These mainly consist
1January2013, the BAnstPT has undertaken the tasks of the Post- of transport service agreements.
beamtenversorgungskasse (postal civil servant pension fund). Fur-
ther disclosures on the postal civil servant pension fund and the VAP Relationships with pension funds
can be found Notes 7 and 42. The tasks mentioned are performed The real estate with a fair value of 1,305million (previous year:
on the basis of agency agreements. In 2015, Deutsche Post AG was 1,106million), of which Deutsche Post Betriebsrenten Service e.V.
invoiced for 104million (previous year: 71million) in instalment (DPRS) and/or Deutsche Post Pensions-Treuhand GmbH&Co. KG,
payments relating to services provided by the BAnstPT. Deutsche Post Betriebsrenten-Service e.V.&Co. Objekt Gronau KG
and Deutsche Post Grundstcks-Vermietungsgesellschaft beta mbH
Relationships with the German Federal Ministry of Finance Objekt Leipzig KG are the legal or beneficial owners, is exclusivelylet
In financial year 2001, the German Federal Ministry of Finance and to Deutsche Post Immobilien GmbH. Rental expense for Deutsche
Deutsche Post AG entered into an agreement that governs the terms Post Immobilien GmbH amounted to 95million in 2015 (previous
and conditions of the transfer of income received by Deutsche Post AG year: 69million). The rent was always paid on time. Deutsche Post
from the levying of the settlement payment under the Gesetze ber Pensions-Treuhand GmbH&Co. KG owns 100% of Deutsche Post
den Abbau der Fehlsubventionierung im Wohnungswesen (German Pensionsfonds AG. Further disclosures on pension funds can be
found in Notes 7 and 42.

200
Relationships with unconsolidated companies, investments 53.2 Related party disclosures (individuals)
accounted for using the equity method and joint operations In accordance with IAS24, the Group also reports on transactions
In addition to the consolidated subsidiaries, the Group has direct between the Group and related parties or members of their families.
and indirect relationships with unconsolidated companies, invest- Related parties are defined as the Board of Management, the Super-
ments accounted for using the equity method and joint operations visory Board and the members of their families.
deemed to be related parties of the Group in the course of its ordin There were no reportable transactions or legal transactions in-
ary business activities. As part of these activities, all transactions for volving related parties in financial year 2015.
the provision of goods and services entered into with unconsoli The remuneration of key management personnel of the Group
dated companies were conducted on an arms length basis at stand- requiring disclosure under IAS24 comprises the remuneration of
ard market terms and conditions. the active members of the Board of Management and the Super
Transactions were conducted in financial year 2015 with major visory Board.
related parties, resulting in the following items in the consolidated The active members of the Board of Management and the
financial statements: Supervisory Board were remunerated as follows:
m m
2014 2015 2014 2015
Trade receivables 2 9 Short-term employee benefits
from investments accounted for using the equity (excludingshare-based payment) 17 13
method 1 5 Post-employment benefits 3 3
from unconsolidated companies 1 4 Termination benefits 1 4
Loans 25 28 Share-based payment 30 7
to investments accounted for using the equity Total 51 27
method 0 0
to unconsolidated companies 25 28
Receivables from in-house banking 2 2
from investments accounted for using the equity As well as the aforementioned benefits for their work on the Super-
method 2 2
visory Board, the employee representatives who are on the Super-
from unconsolidated companies 0 0
visory Board and employed by the Group also receive their normal
Financial liabilities 23 26
salaries for their work in the company. These salaries are deter-
to investments accounted for using the equity
method 12 15 mined at levels that are commensurate with the salary appropriate
to unconsolidated companies 11 11 for the function or work performed in the company.
Trade payables 10 7 Post-employment benefits are recognised as the service cost
to investments accounted for using the equity resulting from the pension provisions for active members of the
method 4 3
Board of Management. The corresponding liability amounted to
to unconsolidated companies 6 4
31million as at the reporting date (previous year: 34million).
Revenue 4 4
The share-based payment amount relates to the relevant ex-
from investments accounted for using the equity
method 3 3 pense recognised for financial years 2014 and 2015. It is itemised in
from unconsolidated companies 1 1 the following table:
Expenses1 35 37
due to investments accounted for using the equity Share-based payment
method 14 14
Thousands of 2014 2015
due to unconsolidated companies 21 23
SARs SARs
1
Relate to materials expense and staff costs. DrFrank Appel, Chairman 6,331 1,760
Ken Allen 3,280 1,061
Jrgen Gerdes 3,523 1,109
Deutsche Post AG issued letters of commitment in the amount of John Gilbert 60 91

Melanie Kreis 35
68million (previous year: 79million) for these companies. Of
Lawrence Rosen 3,304 1,029
this amount, 63million (previous year: 73million) was attribut-
Roger Crook (until 27April2015) 2,577 1,822
able to investments accounted for using the equity method, 1mil-
Bruce Edwards (until 10March2014) 6,722
lion (previous year: 2million) to joint operations and 4million
Angela Titzrath (until 1July2014) 4,071
(previous year: 4million) to unconsolidated companies. Share-based payment 29,868 6,907

201
53.3 Remuneration disclosures in accordance with the HGB Reportable transactions

The transactions of Board of Management and Supervisory Board
Board of Management remuneration members involving securities of the company and notified to
The total remuneration paid to the active members of the Board of Deutsche Post AG in accordance with section 15a of the Wertpapier
Management in financial year 2015 including the components with handelsgesetz (WpHG German Securities Trading Act) can be
a long-term incentive effect totalled 17.4million (previous year: viewed on the companys website at www.dpdhl.com/en/investors.html.
20.9million). Of this amount, 7.1million (previous year:
7.6million) is attributable to non-performance-related compo- 54 Auditors fees
nents (annual base salary and fringe benefits), 3.7million (previ- The fee for the auditor of the consolidated financial statements,
ous year: 6.0million) to performance-related components (vari PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprfungs-
able components) and 6.7million (previous year: 7.3million) to gesellschaft, amounted to 13million in financial year 2015 and was
components with a long-term incentive effect (SARs). The number recognised as an expense.
of SARs was 1,936,470 (previous year: 1,591,332).
Auditors fee
Former members of the Board of Management m
The remuneration of former members of the Board of Management 2015
or their surviving dependants amounted to 25.3million in the year Financial statement audits 10
under review (previous year: 6.0million). The increase compared Other assurance services 0
with the previous year was the result of two extraordinary items that Tax advisory services 0
will not impact the above line item on a permanent basis: firstly, the Other services 3
Total 13
non-recurring payment made to Roger Crook, which is described
in the remuneration report, and secondly, the increase in the num-
ber of retirees whose pension benefits fell due but for whom no new
obligations were incurred in 2015. Those obligations were previ- The financial statement audits category includes the fees for auditing
ously included in the provisions to be recognised for the pension the consolidated financial statements and for auditing the annual
fund members. The defined benefit obligation (DBO) for current financial statements prepared by Deutsche Post AG and its German
pensions calculated under IFRSs was 94million (previous year: subsidiaries. The fees for reviewing the interim reports and those
104million). The decline in the DBO versus the prior year was fees for voluntary audits beyond the statutory audit engagement,
mainly due to an increase in the IFRS discount rate. such as audits of the internal control system, are also reported in
this category. The other services item relates to fees which cannot
Remuneration of the Supervisory Board be allocated to the aforementioned categories and mainly includes
The total remuneration of the Supervisory Board in financial year services in the area of information technology.
2015 amounted to around 2.7million (previous year: 3.3million);
as in the prior year, 2.4million of this amount was attributable to 55 Exemptions under the HGB and local foreign legislation
a fixed component and 0.3million to attendance allowances. For financial year 2015, the following German subsidiaries have
Whereas, in the previous year, variable remuneration in the amount exercised the simplification options under section 264(3) of the
of 0.6million was paid for 2012, the condition for payment of a HGB or section 264b of the HGB:
variable remuneration for 2013 was not met in the year under review. Adcloud GmbH
Agheera GmbH
Further information on the itemised remuneration of the Board of Albert Scheid GmbH
Management and the Supervisory Board can be found in the CSG GmbH
Corporate Governance Report. The remuneration report contained CSG.TS GmbH
in the Corporate Governance Report also forms part of the Group CSG.PB GmbH (formerly Zweite Logistik Entwicklungs-
Management Report. gesellschaft MG GmbH)
Danzas Deutschland Holding GmbH
Shareholdings of the Board of Management Danzas Grundstcksverwaltung Gro-Gerau GmbH
andSupervisoryBoard Deutsche Post Adress Beteiligungsgesellschaft mbH
As at 31December2015, shares held by the Board of Management Deutsche Post Assekuranz Vermittlungs GmbH
and the Supervisory Board of Deutsche Post AG amounted to less Deutsche Post Beteiligungen Holding GmbH
than 1% of the companys share capital. Deutsche Post Consult GmbH
Deutsche Post Customer Service Center GmbH
Deutsche Post DHL Beteiligungen GmbH
Deutsche Post DHL Corporate Real Estate Management GmbH
Deutsche Post DHL Corporate Real Estate Management
GmbH&Co. Logistikzentren KG

202
Deutsche Post DHL Express Holding GmbH DHL Delivery Leipzig GmbH
Deutsche Post DHL Research and Innovation GmbH DHL Delivery Lbeck GmbH
Deutsche Post Dialog Solutions GmbH (formerly Deutsche DHL Delivery Magdeburg GmbH
PostCom GmbH) DHL Delivery Mainz GmbH
Deutsche Post Direkt GmbH DHL Delivery Mannheim GmbH
Deutsche Post E-Post Development GmbH DHL Delivery Mnchen GmbH
Deutsche Post E-POST Solutions GmbH DHL Delivery Mnster GmbH
Deutsche Post Fleet GmbH DHL Delivery Neubrandenburg GmbH
Deutsche Post Ident GmbH (formerly Deutsche Post Signtrust DHL Delivery Nrnberg GmbH
und DMDA GmbH) DHL Delivery Oldenburg GmbH
Deutsche Post Immobilien GmbH DHL Delivery Ravensburg GmbH
Deutsche Post InHaus Services GmbH DHL Delivery Reutlingen GmbH
Deutsche Post Investments GmbH DHL Delivery Rosenheim GmbH
Deutsche Post IT BRIEF GmbH DHL Delivery Saarbrcken GmbH
Deutsche Post IT Services GmbH DHL Delivery Straubing GmbH
Deutsche Post Mobility GmbH DHL Delivery Stuttgart GmbH
Deutsche Post Shop Essen GmbH DHL Delivery Wiesbaden GmbH
Deutsche Post Shop Hannover GmbH DHL Delivery Wrzburg GmbH
Deutsche Post Shop Mnchen GmbH DHL Delivery Zwickau GmbH
DHL Airways GmbH DHL Express Customer Service GmbH
DHL Automotive GmbH DHL Express Germany GmbH
DHL Automotive Offenau GmbH DHL Express Network Management GmbH
DHL Consulting GmbH (formerly Deutsche Post DHL Inhouse DHL Fashion Retail Operation GmbH
Consulting GmbH) 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 Nord GmbH DHL Global Forwarding Management GmbH
DHL Delivery Berlin Sdost GmbH DHL Global Management GmbH
DHL Delivery Berlin Zentrum GmbH DHL Home Delivery GmbH
DHL Delivery Bonn GmbH DHL Hub Leipzig GmbH
DHL Delivery Braunschweig GmbH DHL International GmbH
DHL Delivery Bremen GmbH DHL Paket GmbH (formerly DHL Vertriebs GmbH)
DHL Delivery Dortmund GmbH DHL Solutions Fashion GmbH
DHL Delivery Dresden GmbH DHL Solutions GmbH
DHL Delivery Duisburg GmbH DHL Solutions Grogut GmbH
DHL Delivery Dsseldorf GmbH DHL Solutions Retail GmbH
DHL Delivery Erfurt GmbH DHL Sorting Center GmbH
DHL Delivery Essen GmbH DHL Supply Chain (Leipzig) GmbH
DHL Delivery Frankfurt GmbH DHL Supply Chain Management GmbH
DHL Delivery Freiburg GmbH DHL Supply Chain VAS GmbH
DHL Delivery Freising GmbH DHL Trade Fairs&Events GmbH
DHL Delivery Gieen GmbH DHL Verwaltungs GmbH
DHL Delivery Gppingen GmbH Erste End of Runway Development Leipzig GmbH
DHL Delivery Hagen GmbH Erste Logistik Entwicklungsgesellschaft MG GmbH
DHL Delivery Halle GmbH European Air Transport Leipzig GmbH
DHL Delivery Hamburg Sd GmbH FIRST MAIL Dsseldorf GmbH
DHL Delivery Hamburg Zentrum GmbH Gerlach Zolldienste GmbH
DHL Delivery Hannover GmbH interServ Gesellschaft fr Personal- und
DHL Delivery Herford GmbH BeraterdienstleistungenmbH
DHL Delivery Karlsruhe GmbH nugg.ad GmbH (formerly nugg.ad AG predictive behavioral
DHL Delivery Kassel GmbH targeting)
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
203
The following companies in the UK make use of the audit exemption RESPONSIBILITY
under section 479A of the UK Companies Act:
DHL Exel Supply Chain Limited STATEMENT
DHL Freight&Contract Logistics (UK) Limited
Exel Freight Management (UK) Limited To the best of our knowledge, and in accordance with the applicable
Exel Investments Limited reporting principles, the consolidated financial statements give a
Exel Overseas Limited true and fair view of the assets, liabilities, financial position and
Freight Indemnity&Guarantee Company Limited profit or loss of the Group, and the management report of the Group
Joint Retail Logistics Limited includes a fair review of the development and performance of the
KXC (Exel) GP Investment Limited business and the position of the Group, together with a description
Ocean Group Investments Limited of the principal opportunities and risks associated with the expected
Ocean Overseas Holdings Limited development of the Group.
Power Europe Development Limited
Power Europe Development No 3 Limited Bonn, 1 March2016
Power Europe Operating Limited
Tibbett&Britten Applied Limited Deutsche Post AG
Trucks and Child Safety Limited The Board of Management
56 Declaration of Conformity with the German Corporate

Governance Code
The Board of Management and the Supervisory Board of
Deutsche Post AG jointly submitted the Declaration of Conformity
with the German Corporate Governance Code for financial year DrFrank Appel Ken Allen
2015 required by section 161 of the AktG. This Declaration of Con-
formity can be accessed online at www.corporate-governance-code.de
and at www.dpdhl.com/en/investors.html.
57 Significant events after the reporting date and other disclosures

In January2016, Deutsche Post DHL Group acquired a minority Jrgen Gerdes John Gilbert
interest of 27.5% in French e-commerce logistics specialist Relais
Colis. This acquisition aims to improve the DHL divisions access to
the French e-commerce market. The investment supports the ex-
pansion of the collection point network and special delivery ser-
vices for Relais Colis e-commerce customers. Relais Colis will be
accounted for using the equity method in the consolidated financial Melanie Kreis Lawrence Rosen
statements.
The remaining shares in the property development companies
Kings Cross Central General Partner Ltd., UK, and Kings Cross
Central Property Trust, UK, assigned to the Supply Chain division
were sold at the end of January2016, resulting in income of 63mil-
lion for the Group.
There were no other significant events after the reporting date.

204
INDEPENDENT AUDITORS ness of accounting estimates made by the Board of Management, as

well as evaluating the overall presentation of the consolidated finan-
REPORT cial statements.
We believe that the audit evidence we have obtained is suffi-
To Deutsche Post AG cient and appropriate to provide a basis for our audit opinion.
Report on the Consolidated Financial Statements Audit opinion

We have audited the consolidated financial statements of According to 322 Abs. 3 Satz (sentence) 1 HGB, we state that our
Deutsche Post AG, Bonn, and its subsidiaries, which comprise the audit of the consolidated financial statements has not led to any
income statement and the statement of comprehensive income, the reservations.
balance sheet, the cash flow statement, the statement of changes in In our opinion based on the findings of our audit, the consoli-
equity, and the notes to the consolidated financial statements, for dated financial statements comply, in all material respects, with
the business year from 1January to 31December2015. IFRSs, as adopted by the EU, and the additional requirements of Ger-
man commercial law pursuant to 315a Abs. 1 HGB and give a true
Board of Managements responsibility for consolidated and fair view of the net assets and financial position of the Group as
financial statements at 31December2015 as well as the results of operations for the busi-
The Board of Management of Deutsche Post AG, Bonn, is respon ness year then ended, in accordance with these requirements.
sible for the preparation of these consolidated financial statements.
This responsibility includes that these consolidated financial state- Report on the Group Management Report
ments are prepared in accordance with the International Financial We have audited the group management report of Deutsche Post AG,
Reporting Standards, as adopted by the EU, and the additional re- Bonn, for the business year from 1January to 31December2015.
quirements of German commercial law pursuant to (Article) 315a The Board of Management of Deutsche Post AG, Bonn, is respon
Abs. (paragraph) 1 HGB (Handelsgesetzbuch: German Commercial sible for the preparation of the group management report in accord-
Code) and that these consolidated financial statements give a true ance with the requirements of German commercial law applicable
and fair view of the net assets, financial position and results of op- pursuant to 315a Abs. 1 HGB. We conducted our audit in accord-
erations of the group in accordance with these requirements. The ance with 317 Abs. 2 HGB and German generally accepted stand-
Board of Management is also responsible for the internal controls ards for the audit of the group management report promulgated by
as the Board of Management determines are necessary to enable the the Institut der Wirtschaftsprfer (Institute of Public Auditors in
preparation of consolidated financial statements that are free from Germany) (IDW). Accordingly, we are required to plan and perform
material misstatement, whether due to fraud or error. the audit of the group management report to obtain reasonable as-
surance about whether the group management report is consistent
Auditors responsibility with the consolidated financial statements and the audit findings, as
Our responsibility is to express an opinion on these consolidated a whole provides a suitable view of the Groups position and suitably
financial statements based on our audit. We conducted our audit in presents the opportunities and risks of future development.
accordance with 317 HGB and German generally accepted stand- According to 322 Abs. 3 Satz 1 HGB we state, that our audit of
ards for the audit of financial statements promulgated by the Institut the group management report has not led to any reservations.
der Wirtschaftsprfer (Institute of Public Auditors in Germany)
(IDW) and additionally observed the International Standards on In our opinion based on the findings of our audit of the consolidated
Auditing (ISA). Accordingly, we are required to comply with ethical financial statements and group management report, the group
requirements and plan and perform the audit to obtain reasonable management report is consistent with the consolidated financial
assurance about whether the consolidated financial statements are statements, as a whole provides a suitable view of the Groups posi-
free from material misstatement. tion and suitably presents the opportunities and risks of future
An audit involves performing audit procedures to obtain audit development.
evidence about the amounts and disclosures in the consolidated
financial statements. The selection of audit procedures depends on Dsseldorf, 1 March2016
the auditors professional judgment. This includes the assessment of
the risks of material misstatement of the consolidated financial PricewaterhouseCoopers
statements, whether due to fraud or error. In assessing those risks, Aktiengesellschaft
the auditor considers the internal control system relevant to the Wirtschaftsprfungsgesellschaft
entitys preparation of consolidated financial statements that give a
true and fair view. The aim of this is to plan and perform audit Gerd Eggemann Dietmar Prmm
procedures that are appropriate in the given circumstances, but not Wirtschaftsprfer Wirtschaftsprfer
for the purpose of expressing an opinion on the effectiveness of the (German Public Auditor) (German Public Auditor)
groups internal control system. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonable-

DFURTHER
INFORMATION
205212
D FURTHER INFORMATION
D
FURTHER INFORMATION
INDEX
207
GLOSSARY
208
GRAPHS AND TABLES

209
MULTI-YEAR REVIEW
210
PUBLICATION SERVICE
212
CONTACTS
212
FINANCIAL CALENDAR
Further Information INDEX
207
INDEX
A F P
Air freight 24, 27f., 30, 47, 67f., 96 Finance strategy 51, 53f., 91, 97, 169 Parcel Germany 64
Annual General Meeting 39ff., 51, 97, 102ff., 109, First Choice 23, 36, 92 Post - eCommerce - Parcel 23, 25ff., 34f., 44, 58f.,
114f., 125, 164, 198f. Free cash flow 38, 44, 59f., 94, 98, 116, 140, 157, 62, 63f., 72ff., 75, 78, 79f., 82, 87ff., 90, 91, 94, 96,
Articles of Association 39ff., 124, 164 182,210 97f., 101, 111, 113, 116, 136, 149, 153, 157, 210
Auditors report 104, 204 Free float 71, 163 Press products 26, 149
Authorised capital 40, 163f. Freight 23, 27, 30, 36, 58, 62, 64, 68, 81, 149, 157 Price-to-earnings ratio 70, 211
Freight forwarding business 67, 96 Profit from operating activities 20, 37f., 44, 49, 51f.,
59, 61f., 64, 66, 68f., 84, 87, 94, 97f., 129, 132, 135, 146,
B G
148ff., 157, 181, 210f.
Balance sheet 49ff., 57, 60f., 86, 88, 101, 131, 134ff.,
139ff., 146f., 150, 153ff., 156ff., 181ff., 184ff., 188ff.,
200, 204, 210
Global Business Services 23, 106, 113, 149
Global economy 45f., 87, 89, 94f., 97 Q
Board of Management 2ff., 23f., 39ff., 43, 44, 51, Global Forwarding 23, 28, 30, 33, 35f., 49, 58, 62, Quality 27, 33ff., 79ff., 90ff., 96
83f., 85f., 94, 101ff., 106f., 108, 109ff., 115ff., 134, 164, 67f., 72, 78, 81, 101ff., 136, 149, 157
168, 183, 197f., 200f., 203f. Global Forwarding, Freight 23f., 30, 35f., 44, 49, 52,
Board of Management remuneration 43, 102, 113,
115ff., 118ff., 201
Bonds 43, 46f., 54ff., 57, 60, 141, 145, 172, 178f., 185,
56, 58f., 62, 67f., 72f., 82, 92, 94, 97f., 102f., 106, 111,
113, 116, 135f., 148f., 153, 157, 210
Global trade 45, 47f., 95f., 157
R
Rating 53f., 56, 77, 84, 91, 97, 172
188, 190 GoGreen38, 76, 80 Regulation 23, 49, 87ff., 195f.
Brands23, 82f., 96, 134, 140, 149, 156 Guarantees53, 56, 88, 195 Responsibility statement 203
Retail outlets 25, 34, 80
Return on sales 20, 35, 37, 49, 62, 64, 66, 68, 69, 211
C I Revenue 20, 33, 35, 37, 44, 49, 50f., 55, 62ff., 89, 96,
97, 129, 135, 139, 147, 148ff., 151, 162, 168, 195, 200, 210
Capital expenditure 32f., 37f., 44, 49, 52, 57ff., 68, Illness rate 75 Road transport 24, 30, 36, 77, 96
78, 98, 101f., 113, 132, 136, 139, 142, 148f., 157, 171, 174f., Income statement 129, 139, 142, 145, 147, 150, 151ff.,
181f., 195, 210 160, 168, 176, 185f., 193, 204
Capital increase 163ff., 197
Cash flow statement 38, 59f., 132, 134, 138, 168,
181f., 204, 210
Income taxes 38, 51, 129, 130, 132, 146, 150, 154f., 160,
168, 181, 211
Investments 32f., 37f., 39, 41, 44, 49, 51, 52, 57ff.,
S
Segment reporting 148ff., 151
Change of control 42f., 117f. 59f., 68, 78, 98, 101f., 113, 131f., 132, 136, 139, 141, 142, Share capital 39ff., 102f., 163ff., 199, 201
Consolidated net profit 20, 49, 51, 61, 129, 130, 132, 147, 148f., 154, 157, 159f., 162f., 171, 174f., 181f., 195, Share price 47, 70, 179, 196ff.
133, 150, 154, 155, 166, 181, 210 199, 210 Shareholder structure 71
Consolidated revenue 20, 33, 37, 44, 49, 50f., 55, 89, Staff costs 37, 50f., 63, 73, 129, 143f., 150, 152, 176,
97, 129, 135, 139, 147, 148ff., 151, 162, 168, 195, 200, 210 181, 196, 198, 200, 211
Contingent capital 40f., 163f.
Contract logistics 24, 31f., 36, 69, 81, 97, 149, 157
Corporate governance 43, 99ff., 102, 104, 109ff.,
L Strategy 33ff., 69, 72, 75, 91, 97, 101ff., 109ff., 114,
148, 150, 151
Letters of comfort 53, 56 Supervisory Board 39ff., 43, 51, 101ff., 105, 108ff.,
201, 203 Liquidity management 55, 91, 183ff. 124ff., 164, 197, 200f., 203
Cost of capital 37, 54, 157 Supervisory Board committees 101ff., 105, 109,
Credit lines 56, 183 111ff., 124
Credit rating 53f., 56, 84, 91, 97, 172
M Supervisory Board remuneration 43, 124ff., 201
Suppliers 31, 43, 56, 78
Supply Chain 23f., 31f., 33, 36, 44, 49f., 54, 56, 58f.,
Mail communication 24, 25, 63, 96
D Mandates108
Market shares 24, 25ff., 28f., 30, 32, 34
62, 69, 72f., 78, 81ff., 89, 92, 94, 97f., 111, 113, 116,
135f., 148f., 153, 157, 162, 203, 210
Declaration of conformity 102, 104, 109, 203
Dialogue marketing 24, 26, 63, 149
Dividend 20, 38, 44, 49, 51, 53f., 60f., 70, 94, 97f.,
104, 132f., 141, 155, 166ff., 182, 198, 211 N T
Net debt 60, 61, 91, 165, 211 Tax rate 51, 211
Net gearing 60, 61, 165, 211 Training 34f., 73, 74, 114, 152, 211
E Net interest cover 60, 61

Net working capital 37, 38, 52, 68, 157
Earnings per share 20, 49, 51, 70, 129, 155, 211
EBIT after asset charge 20, 37f., 44, 49, 52, 94, 98,
116ff.
W
eCommerce - Parcel 23, 26f., 34, 62, 63f., 103, 149
Employee Opinion Survey 33, 38, 44, 72, 98, 103,
O WACC 37, 54, 157
Williams Lea 24, 157, 202
Working capital 37f., 52, 59, 64, 68, 78, 157
109, 116 Ocean freight 24, 30, 47, 67f., 96
E-POST 25, 34, 80, 93, 96 Oil price 30, 46, 50f., 65, 67, 94ff.
Equity ratio 60f., 165, 211 Operating cash flow 38, 44, 53f., 59, 62, 70, 181, 210
Express 23f., 27ff., 33, 34f., 44, 50ff., 56, 58ff., 62, Opportunities and risk management 84ff.
65f., 72f., 76, 78ff., 82f., 91, 94, 96ff., 111, 113, 116, 134, Outlook 44, 56, 84, 94ff.
136, 148f., 151, 153, 157, 167, 177, 181, 196, 210

208
GLOSSARY
Cross-border mail (outbound) B2C Kitting

All outbound international mail. The exchange of goods, services and information Components are put together according to cus-
between businesses and consumers. tomer requirements and delivered either as a kit
Dialogue marketing orpre-assembled.
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. spaceagreements with airline companies which A logistics service provider who assumes theorganisa
provide them with defined freight capacities on tion of all or key logistics processes for the customer.
E-POST aregular flight against payment of a fee.
Secure, confidential and reliable electronic LTL (less than truckload)
communication platform. Contract logistics Day-definite less-than-truckload road transport
Complex logistics and logistics-related services service.
German federal network agency along the value chain that are performed by a
(Bundesnetzagentur) contract logistics service provider. Services are Medical Express
German national regulator for electricity, gas, tailored to aparticular industry or customer and The transport of time-critical or temperature-critical
telecommunications, post and railway. are generally based on long-term contracts. medical shipments such as blood and tissue samples
to medical facilities, hospitals, laboratories or
German Postal Act (Postgesetz) Day Definite research institutes, usually related to clinical trials
The purpose of the German Postal Act, which Delivery of shipments on a specified day. ofnew medications.
tookeffect on 1January1998, is to promote postal
competition through regulation and ensure the DHL Customer Solutions&Innovation (CSI) Multimodal transport
nationwide provision of appropriate and sufficient DHLs cross-divisional commercial and innovation Combines a minimum of two different means of trans-
postal services. It includes regulations on licensing, unit. port for a shipment, such as air, sea, rail and ground.
price control and the universal service.
Direct-to-market solutions (D2M) Supply chain
Packstation End-to-end logistics solution that integrates DHLs A series of connected resources and processes from
Parcel machine where parcels and small packages warehouse management services with order- sourcing materials to delivering goods to consumers.
canbe deposited and collected around the clock. to-cash services. This enables manufacturers to
bypass traditional wholesalers and/or distributors Time Definite
Paketbox and build a direct trading relationship with their Delivery of time-critical shipments by a pre-selected
Parcel box for franked parcels and small packages end customer either the point of dispensing e.g. time.
(maximum dimensions: 504030cm). pharmacy or direct with the patient in an e-com- Transported Asset Protection Association (TAPA)
Price-cap procedure merce channel. A forum that unites manufacturers, logistics providers,
Procedure whereby the German federal network Full truckload freight carriers, law enforcement authorities and
agency approves prices for certain mail products. Complete capacity of truck is utilised, from sender other stakeholders with the common aim of reducing
Theagency approves prices on the basis of par toreceiver. losses from international supply chains.
ameters it stipulates in advance, which set the
average changes in these prices within baskets Gateway Twenty-foot equivalent unit (TEU)
ofservices defined by the agency. Collection point for goods intended for export Standardised container unit, 20 feet long and 8 feet
andforfurther distribution of goods upon import. wide (62.4 metres).
Standard letter
Letter measuring a maximum of 2351255mm Hub
andweighing up to 20g. Collection point for transferring and connecting
international shipments from and to multiple
countries.

Further Information GLOSSARY GRAPHS AND TABLES
209
GRAPHS AND TABLES

01 Selected Key Figures 20 A.36 Agency ratings 56 Expected Developments
A.37 Financial liabilities 57 A.80 Global economy: growth forecast 95
A.38 Operating lease liabilities by asset class 57
A A.39 Capex by region 57
GROUP MANGEMENT REPORT A.40 Capex and depreciation, amortisation

andimpairment losses, full year 58
B
A.41 Capex and depreciation, amortisation
General Information
andimpairment losses, Q458 B.01 Members of the Supervisory Board 105
A.01 Organisational structure
A.42 Capex by segment 58 B.02 Committees of the Supervisory Board 105
of Deutsche Post DHL Group 23
A.43 Operating cash flow by division, 2015 59 B.03 Mandates held by the Board
A.02 Market volumes 24
of Management 108
A.03 Nationwide transport and delivery network A.44 Calculation of free cash flow 59
B.04 Mandates held by the Supervisory Board 108
inGermany, 2015 25 A.45 Selected indicators for net assets 60
B.05 Attendance at plenary and committee
A.04 Domestic mail communication market, A.46 Net debt 61
meetings by member 112
business customers, 2015 25 A.47 Key figures by operating division 62
B.06 Target remuneration for the Board
A.05 Domestic dialogue marketingmarket,2015 26 A.48 Post: revenue 63 of Management members active as
A.06 International mail market (outbound), 2015 26 A.49 Post: volumes 63 at 31December2015 119
A.07 Domestic parcel market, 2015 26 A.50 eCommerce - Parcel: revenue 64 B.07 Target remuneration for the Board
A.08 Available capacity 28 of Management members who left
A.51 Parcel Germany: volumes 64
the company in financial year 2015 120
A.09 European international expressmarket, A.52 EXPRESS: revenue by product 65
2013: top 4 28 B.08 Payments made to the Board
A.53 EXPRESS: volumes by product 65 of Management members active as
A.10 American international express market,
A.54 Global Forwarding: revenue 67 at 31December2015 121
2013: top 4 29
A.55 Global Forwarding: volumes 68 B.09 Payments made to the Board
A.11 Asia Pacific international expressmarket,
A.56 SUPPLY CHAIN: revenue by sector, 2015 69 of Management members who left
2013: top 4 29
the company in financial year 2015 122
A.12 Air freight market, 2014: top 4 30 A.57 SUPPLY CHAIN: revenue by region, 2015 69
B.10 Share-based component with long-term
A.13 Ocean freight market, 2014: top 4 30 incentive effect 122
Deutsche Post Shares
A.14 European road transport market, B.11 Pension commitments under the previous
2014:top 5 30 A.58 Share price performance 70
system123
A.15 Logistics and value-added services A.59 Deutsche Post shares: seven-year overview 70
B.12 Board of Management pension
along the entire supply chain 31 A.60 Peer group comparison: closing prices 71 commitments under the new system:
A.16 Contract logistics market, 2014: top 10 32 A.61 Analyst recommendations for Deutsche Post individual breakdown 124
A.17 EBIT calculation 37 shares, 2015 71 B.13 Remuneration paid to Supervisory Board
A.62 Shareholder structure 71 members125
A.18 EAC calculation 37
A.63 Shareholder structure by region 71 B.14 Variable remuneration paid to
A.19 Net asset base calculation 37
Supervisory Board members for 2012 126
A.20 Calculation of free cash flow 38 Non-Financial Figures
Report on Economic Position A.64 Selected results from the Employee
A.21 Forecast/actual comparison 44
OpinionSurvey
A.65 Employees by region
72
73
C
A.22 Global economy: growth indicators in 2015 45
A.66 Number of employees 73 CONSOLIDATED FINANCIAL
A.23 Brent Crude spot price and euro/US dollar
exchange rate in 2015 46 A.67 Staff costs and social security benefits 73 STATEMENTS
A.68 Gender distribution in management, 2015 74 C.01 Income Statement 129
A.24 Trade volumes: compound annual growth
rate, 2014 to 2015 47 A.69 Workplace accidents 75 C.02 Statement of Comprehensive Income 130
A.25 Major trade flows: 2015 volumes 48 A.70 CO2e emissions, 2015 77 C.03 Balance Sheet 131
A.26 Selected indicators for results of operations 49 A.71 Fuel and energy consumption in own fleet C.04 Cash Flow Statement 132
A.27 Consolidated revenue 50 andbuildings77 C.05 Statement of Changes in Equity 133
A.28 Changes in revenue, other operating A.72 Procurement expenses, 2015 78
income and operating expenses 51 A.73 Facts and figures, customers and quality 79
A.29 Consolidated EBIT51
A.30 Total dividend and dividend perno-par
A.74 Brand architecture
A.75 Marketing expenditures, 2015
82
82
D
value share 51 A.76 Value of Group brands in 2015 82
FURTHER INFORMATION
A.31 EBIT after asset charge (EAC)52 D.01 Key figures 2008 to 2015 210
A.32 Net asset base (non-consolidated) 52 Opportunities and Risks
A.33 Selected cash flow indicators 53 A.77 Monte Carlo simulation 84
A.34 Finance strategy 54 A.78 Opportunity and risk management process 85
A.35 FFO to debt 54 A.79 Classification of risks and opportunities 87

210
MULTI-YEAR REVIEW
Key figures 2008 to 2015
m 2008 2009 2010 2011 2012 2013 2014 2015
adjusted adjusted adjusted adjusted adjusted adjusted
Revenue
Post - eCommerce - Parcel (until 2013 Mail) 14,393 13,912 13,913 13,973 13,972 15,291 15,686 16,131
Express 13,637 9,917 11,111 11,691 12,778 11,821 12,491 13,661
Global Forwarding, Freight 14,179 11,243 14,341 15,118 15,666 14,787 14,924 14,890
Supply Chain 13,718 12,183 13,061 13,223 14,340 14,227 14,737 15,791
Divisions total 55,927 47,255 52,426 54,005 56,756 56,126 57,838 60,473
Corporate Center/Other1 1,782 1,527 1,302 1,260 1,203 1,251 1,345 1,269
Consolidation1 3,235 2,581 2,340 2,436 2,447 2,465 2,553 2,512
Total (continuing operations) 54,474 46,201 51,388 52,829 55,512 54,912 56,630 59,230
Discontinued operations 11,226 1,634
Profit/loss from operating activities (EBIT)

Post - eCommerce - Parcel (until 2013 Mail) 2,179 1,391 1,120 1,107 1,048 1,286 1,298 1,103
Express 2,194 790 497 916 1,110 1,083 1,260 1,391
Global Forwarding, Freight 362 174 383 440 514 478 293 181
Supply Chain 920 216 231 362 419 441 465 449
Divisions total 573 559 2,231 2,825 3,091 3,288 3,316 2,762
Corporate Center/Other 393 328 395 389 423 421 352 351
Consolidation 0 0 1 0 3 2 1 0
Total (continuing operations) 966 231 1,835 2,436 2,665 2,865 2,965 2,411
Discontinued operations 871 24
Consolidated net profit/loss for the period 1,979 693 2,630 1,266 1,762 2,211 2,177 1,719
Cash flow/capex/depreciation, amortisation

andimpairment losses
Net cash from/used in operating activities 1,939 584 1,927 2,371 203 2,989 3,040 3,444
Net cash used in/from investing activities 441 2,710 8 1,129 1,697 1,765 1,087 1,462
Net cash used in/from financing activities 1,468 1,676 1,651 1,547 1,199 110 2,348 1,367
Free cash flow 484 749 1,885 1,669 1,345 1,724
Capex 1,727 1,171 1,262 1,716 1,697 1,747 1,876 2,024
Depreciation, amortisation and impairment losses 2,662 1,620 1,296 1,274 1,339 1,337 1,381 1,665
Assets and capital structure

Non-current assets 20,517 22,022 24,493 21,225 21,568 21,370 22,902 23,727
Current assets 242,447 12,716 13,270 17,183 12,289 14,091 14,077 14,143
Equity (excluding non-controlling interests) 7,826 8,176 10,511 11,009 9,019 9,844 9,376 11,034
Non-controlling interests 2,026 97 185 190 209 190 204 261
Current and non-current provisions 10,836 9,677 9,427 9,008 8,978 8,481 10,411 9,361
Current and non-current liabilities 242,276 16,788 17,640 18,201 15,651 16,946 16,988 17,214
Total assets 262,964 34,738 37,763 38,408 33,857 35,461 36,979 37,870

Further Information MULTI-YEAR REVIEW
211

D.01
2008 2009 2010 2011 2012 2013 2014 2015
adjusted adjusted adjusted
Employees/staff costs
(continuing operations)
Number of employees2 at 31 Dec. 512,536 477,280 467,088 471,654 473,626 479,690 488,824 497,745
Full-time equivalents3 at 31 Dec. 451,515 424,686 418,946 423,502 428,129 434,974 443,784 450,508
Average number of employees2 511,292 488,518 464,471 467,188 472,321 478,903 484,025 492,865
Staff costs m 18,389 17,021 16,609 16,730 17,770 17,776 18,189 19,640
Staff cost ratio4 % 33.8 36.8 32.3 31.7 32.0 32.4 32.1 33.2
Key figures revenue/income/

assets and capital structure
Return on sales5 % 1.8 0.5 3.6 4.6 4.8 5.2 5.2 4.1
Return on equity (ROE)
beforetaxes6 % 9.0 3.0 29.8 15.2 23.6 26.7 26.3 19.7
Return on assets7 % 0.4 0.2 5.1 6.4 7.4 8.3 8.2 6.4
Tax rate8 % 5.4 6.9 23.7 20.2 14.0 15.5 16.4
Equity ratio9 % 3.7 23.8 28.3 29.2 27.3 28.3 25.9 29.8
Net debt (+)/net liquidity ()10 m 2,466 1,690 1,382 938 1,952 1,499 1,499 1,093
Net gearing11 % 23.7 25.7 14.8 9.1 17.5 13.0 13.5 8.8
Dynamic gearing12 years 0.7 1.4 0.7 0.4 9.6 0.5 0.5 0.4
Key stock data

Basic earnings per share13 1.40 0.53 2.10 0.96 1.36 1.73 1.71 1.27
Diluted earnings per share14 1.40 0.53 2.10 0.96 1.30 1.66 1.64 1.22
Cash flow per share13,15 1.60 0.48 1.59 1.96 0.17 2.47 2.51 2.84
Dividend distribution m 725 725 786 846 846 968 1,030 1,03116
Payout ratio % 112.6 30.9 72.7 51.6 46.3 49.7 66.9
Dividend per share 0.60 0.60 0.65 0.70 0.70 0.80 0.85 0.8516
Dividend yield % 5.0 4.4 5.1 5.9 4.2 3.0 3.1 3.3
Price-to-earnings ratio17 8.5 25.5 6.0 12.4 12.2 15.3 15.8 20.4
Number of shares carrying
dividend rights millions 1,209.0 1,209.0 1,209.0 1,209.0 1,209.0 1,209.0 1,211.2 1,212.8
Year-end closing price 11.91 13.49 12.70 11.88 16.60 26.50 27.05 25.96
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 61. 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.
16
Proposal. 17 Year-end closing price/basic earnings per share.

212
PUBLICATION SERVICE ONLINE VERSION

Published on 9March2016.
The English version of the 2015 Annual Report of

Deutsche Post DHL Group constitutes a translation
of the original 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.
ORDERING
External
E-mail: [email protected]
dpdhl.com/en/investors
An online extract and a complete PDF file
Internal are available on the internet:
GeT and DHL Webshop annualreport2015.dpdhl.com
Mat.no.675-602-403
CONTACTS
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FINANCIAL
CALENDAR
2016
11 MAY 2016
Interim Report
as at 31 March 2016
18 MAY 2016
2016 Annual General Meeting
(Frankfurt am Main)
19 MAY 2016
Dividend payment
3 AUGUST 2016
Interim Report
as at 30 June 2016
8 NOVEMBER 2016
Interim Report
as at 30 September 2016
2017
8 MARCH 2017
2016 Annual Report
28 APRIL 2017
2017 Annual General Meeting
(Bochum)
2 MAY 2017
Dividend payment
11 MAY 2017
Interim Report
as at 31 March 2017
8 AUGUST 2017
Interim Report
as at 30 June 2017
8 NOVEMBER 2017
Interim Report
as at 30 September 2017
Further dates, updates as well as information

on live webcasts:
dpdhl.com/en/investors
Deutsche Post AG
Headquarters
Investor Relations
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2015 annual Report

Deutsche Post DHL Group 2015 Annual Report

Future growth potential

Standardised processes, compliant networks and temperature-controlled supply

2015 WAS A YEAR OF TRANSITION

Deutsche Post DHL Group 2015 Annual Report

As I said back in 2014, we accepted some short-term effects on our consolidated

In 2015, we increased consolidated revenue to 59.2 billion, due to positive

I AM VERY CONFIDENT THAT 2016

Deutsche Post DHL Group 2015 Annual Report

We therefore continue to expect consolidated EBIT to reach between 3.4 billion

As a scientist, I am aware that change is essential in order to enable better

Deutsche Post DHL Group 2015 Annual Report

Deutsche Post DHL Group 2015 Annual Report

Deutsche Post DHL Group 2015 Annual Report

This means giving each pack, case or pallet

Facilitates the monitoring

Regulations and standards

country, making packaging

Deutsche Post DHL Group 2015 Annual Report

Serialisation leads to enhanced brand protection

a unique identifying serial

Deutsche Post DHL Group 2015 Annual Report

Deutsche Post DHL Group 2015 Annual Report

Deutsche Post DHL Group 2015 Annual Report

u l atE tEmPER atuR

Deutsche Post DHL Group 2015 Annual Report

Standard warehousing, storage and dispatch

Certified life Sciences Stations close to major airports

Intelligent IT networks harness the power of big data

Product characteristics as well as seasonal and

Effective temperature-controlled supply chains rely

Specially trained employees have the know-how

Deutsche Post DHL Group 2015 Annual Report

the choice of packaging is always a balance

active systems use an energy source combined

Passive packaging solutions use cooling materials

leading manufacturers and their logistics partners

Indirect costs such as product losses or reputational b

Deutsche Post DHL Group 2015 Annual Report

NORTH AMERICA EUROPE

FORECAST OTC 1 GROWTH PHARMACEUTICAL SPENDING PROJECTED SPECIALTY DRUG

Deutsche Post DHL Group 2015 Annual Report

Worldwide expertise of over including more than

23 Network of life sciences-certified

countries: more than

15years of a partnership approach

Deutsche Post DHL Group 2015 Annual Report

Deutsche Post DHL Group 2015 Annual Report

Deutsche Post DHL Group 2015 Annual Report

Deutsche Post DHL Group 2015 Annual Report

Deutsche Post DHL Group 2015 Annual Report

the 350 square metres

Deutsche Post DHL Group 2015 Annual Report

Deutsche Post DHL Group 2015 Annual Report

The transfer went smoothly, not with a

There are also bigger plans in the pipe-

YOU GET TO A POINT WHERE YOU

Deutsche Post DHL Group 2015 Annual Report

Deutsche Post DHL Group 2015 Annual Report

Organisational structure of Deutsche Post DHL Group

Nationwide transport and delivery network in Germany, 2015

UPS 25% Expanding our network in the Europe region

Logistics and value-added services along the entire supply chain

CEVA 1.8% Industry expertise in key sectors and products

Profit from operating activities measures earnings power EBIT calculation