"2024 was a challenging year that we closed with a strong fourth quarter"

Tobias, let's start by looking at the big picture: How would you rate DHL Group's business performance in the past year?

Tobias Meyer: 2024 was marked by economic and geopolitical volatility; however, due to a strong performance in the fourth quarter, we successfully increased our revenue for the entire year. Additionally, we recorded another rise in EBIT in the fourth quarter. Overall, while 2024 was a challenging year, we concluded on a strong note with our fourth-quarter results.

Express, in particular, had a strong final quarter. Earnings increased by more than 40 percent compared to the previous year. What was the reason for that?

Tobias Meyer: Express really had an excellent fourth quarter with an EBIT of over EUR 1 billion and a margin exceeding 15 percent. The success was again underpinned by the high quality we provide our customers. Our positioning as a premium provider allowed us to implement a peak season demand surcharge for the first time. Our focus on higher-value B2B shipments also had a positive impact. These measures enabled us to convert the seasonal shipment volume increase in the fourth quarter into revenue and earnings growth.

You mentioned that DHL Group grew significantly in the fourth quarter after two years of decline in EBIT. Can you provide context for the other DHL divisions, too?

Tobias Meyer: The developments of 2024 give me confidence. Since the second quarter, our revenues have surpassed the previous year's level again. We were also able to increase EBIT significantly in the fourth quarter. Our broad positioning has been a key advantage, as Supply Chain's longer-term contracts make it less susceptible to economic cycles. The division has grown profitably and reported a record EBIT of more than EUR 1 billion in 2024. Global Forwarding, Freight has now grown its revenue for three consecutive quarters despite its greater dependency on the economy. Additionally, the eCommerce division performed well, with a double-digit revenue increase for the year. Meanwhile, Post & Parcel Germany continues to undergo a transition, with a notable acceleration in the decline in letter volumes, although we are witnessing continued growth in parcel deliveries from a high baseline.

Before we turn our attention to 2025, let's look at the dividend. The Board of Management and the Supervisory Board will propose an unchanged dividend at the Annual General Meeting. This would put the Group above the target range of 40 to 60 percent of net profit. Why is that?

Tobias Meyer: Yes, the proposal calls for an unchanged dividend of EUR 1.85 per share, pending approval by the Annual General Meeting. Dividend continuity and shareholder returns are a high priority for us. To enhance shareholder value, we have also extended the share buyback program until 2026, increasing it by an additional EUR 2 billion to up to EUR 6 billion. This program underscores the Board of Management's belief that the current share price does not accurately reflect DHL Group's potential. The measures further demonstrate the Group's strong positioning and strong balance sheet.

What goals have you set for the Group as a whole in 2025?

Tobias Meyer: Currently, we expect a persistently muted macroeconomic environment for 2025. Economic uncertainty and volatility are expected to continue, which may present challenges but also create business opportunities for DHL Group. A key question will be the extent of additional trade barriers and the corresponding adjustment that may be required. In any case, our global presence and our diversified business model allow us to offer our customers effective solutions in an ever-increasing complex global trade environment. For 2025, we expect an operating result of EUR ≥6 billion and a free cash flow (excluding M&A) of EUR ~3 billion. However, this outlook does not account for potential impacts from changes in tariff or trade policies, as such changes could have substantial negative and positive effects on DHL Group.

The Board of Management announced the program "Fit for Growth". Why?

Tobias Meyer: A key component of Strategy 2030 is a lean and efficient setup across the entire Group. Through the "Fit for Growth" program, we aim to achieve structural improvement of DHL Group's cost base exceeding EUR 1 billion. We intend to realize the full impact in the fiscal year 2027. The program, therefore, actively supports our growth targets outlined in Strategy 2030.

What is the focus of "Fit for Growth"?  Can you provide some examples?

Tobias Meyer: "Fit for Growth" is a global, company-wide program that involves contributions from all divisions and the corporate headquarters. For instance, at Express, we will optimize our network of partner airlines. Additionally, we are focusing on automation and digitization in our operations across all divisions, along with the integration of artificial intelligence in customer service. At Post & Parcel Germany, we will structurally reduce around 8,000 positions in a socially responsible manner in 2025.

What are the reasons for the staff reductions at Post & Parcel Germany?

Tobias Meyer: The business model of Post & Parcel Germany has faced significant challenges over the years. For instance, letter volumes declined by 20.3 percent between 2022 and 2024, while cumulative inflation during the same period reached 15.8 percent. At the same time, the Federal Network Agency only permitted the division an average price increase of 4.6 percent between 2022 and 2024. In addition, the recently concluded collective wage agreement stipulates a total wage increase of 5 percent over 24 months. This alone will result in structural burdens of around EUR 360 million in 2026, within the current price regulation period. Although the profitable parcel business continues to grow, it cannot compensate for the decline in the postal business and the ongoing cost pressure. Given this overall situation, it is crucial to stabilize the division's profitability to secure its future. In fact, we are already reinvesting everything that Post & Parcel Germany earns back into the business, and the division does not contribute to the dividend, nor do we expect it to.

The DHL Group's Capital Markets Day is coming up in London at the beginning of April. What can we expect from that event?

Tobias Meyer: We want to take a more detailed look at the growth strategies of our divisions. As part of our "Strategy 2030", we have set the goal of increasing the Group's revenue by 50 percent compared to 2023. Of this growth, 20 percent stems from Group initiatives, which we have already outlined in our "Strategy 2030" presentation. Now, we will look closer at the 80 percent of growth that will come from the existing divisional strategies. Engaging in dialogue with the capital market is also important to us, as it allows us to gather feedback for the ongoing development of the Group. We are looking forward to this dialogue.