- Strategic goals
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The market for logistics services is becoming increasingly intricate as individual segments converge and competition increases. At the same time, the number of products and services is rising. Traditional forwarders are reducing shipping times and offering services that were once the preserve of express providers. more
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The market for logistics services is becoming increasingly intricate as individual segments converge and competition increases. At the same time, the number of products and services is rising. Traditional forwarders are reducing shipping times and offering services that were once the preserve of express providers. From the customer's perspective, the task of finding the best logistics solution is becoming steadily more difficult. Logistics customers are therefore reducing the number of suppliers and selecting service providers who cover the entire supply chain. Deutsche Post World Net offers a comprehensive service - not only in each of its divisions but also by way of an integrated offering. We aim to be the market leader in every segment, to generate a high profit margin and to grow faster than the market. At the same time, we seek to create value by fostering even closer co-operation between the individual divisions, in particular between EXPRESS and LOGISTICS. The divisions' individual strategic goals are derived from the overriding corporate strategy.
- Roadmap to Value
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On 8 November 2007, the Group initiated its Roadmap to Value, an extensive capital markets programme geared to achieving a sustained increase in enterprise value. The idea is to improve profitability, increase cash generation and give shareholders a larger stake in the Group's ensuing positive development, based on organic growth. more
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On 8 November 2007, the Group initiated its Roadmap to Value, an extensive capital markets programme geared to achieving a sustained increase in enterprise value. The idea is to improve profitability, increase cash generation and give shareholders a larger stake in the Group's ensuing positive development, based on organic growth. Investors and analysts are to receive extensive information that will enable them to assess the Group's performance reliably.
1. Improving profitability
The central focus of the programme is to increase profitability. We plan to increase the profit from operating activities (EBIT) by €1 billion by the end of 2009 - through actions taken in the operating business and through further cost savings.
2. Increasing cash generation
In future, cash generation will be more central to our strategy than ever before. The Group plans to reduce its net working capital by €700 million by the end of 2009. In addition, we aim to free up at least €1 billion in cash through the disposal of real estate in the next 24 months. In January 2008, a new performance metric, EBIT after asset charge, was introduced as an expression of this value-driven approach. As we move forward, management incentives will be tied to this metric.
3. Value-added for investors
In a move to give our shareholders a larger stake in the value we create, we will be proposing that the dividend for 2007 be increased by 20% to €0.90 per share. We plan to increase the dividend again in the coming years - broadly in line with the anticipated growth in net profit excluding non-recurring effects.
4. Transparent figures
The Group is committed to improving the transparency of its reporting. The unbundling of the SERVICES Division and the allocation of all Global Business Services costs to the operating units will illustrate more clearly the profitability of the individual segments.
5. Organic growth
We intend to use the strong platform we have built in recent years as a springboard for organic growth. The strengths we have already established in high-growth regions - e.g. Asia Pacific and Eastern Europe - enable us to participate in their expansion. The construction of our new hub in Shanghai is to be seen as an expression of our confidence in Asia's sustainable growth potential. The rate of growth in the LOGISTICS Division, which has been significantly outperforming the market since 2005 despite the integration of Exel, further reflects our strong position in rapidly growing markets. Spending on company mergers and acquisitions has thus been capped and the criteria for such takeovers have been tightened. Acquisitive investments have already fallen substantially.
- First Choice
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We laid a foundation stone for further, sustainable growth when the First Choice programme was launched back in 2006. Its aim is to improve our performance systematically at every point of contact with our customers more
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We laid a foundation stone for further, sustainable growth when the First Choice programme was launched back in 2006. Its aim is to improve our performance systematically at every point of contact with our customers - from sales through customer centres and the internet to the mail carriers. For us, the programme is a tool for fostering even greater loyalty amongst our customers. In the reporting period, almost 900 initiatives in 116 countries were rolled out and, in some cases, completed within the framework of the programme. In the mail business, for instance, 350 new service managers were employed and Postbank has equipped its branches with mobile counter units in order to reduce waiting times. First Choice remains a key component of our growth strategy. We now intend to focus on smaller countries whilst at the same time integrating employees more closely into the programme.
- Own sales team for key accounts
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Since 2004, we have been serving our major customers through a dedicated account management organisation, Global Customer Solutions. Here, industry experts with product expertise act as empowered single points of contact along more
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Since 2004, we have been serving our major customers through a dedicated account management organisation, Global Customer Solutions. Here, industry experts with product expertise act as empowered single points of contact along the entire supply chain of the individual key accounts. The team of experts also continuously develop our business in line with changing market or customer needs. Our success proves this formula right: For years, an increasing percentage of customers have been requesting services from not one but several of our divisions.
- Mission and conduct
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The way in which we act, both as individuals and in the economic arena, is based on seven corporate values that reflect our mission as a company. They also provide guidance for our employees as they take day-to-day decisions. In order to establish terms of reference more
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The way in which we act, both as individuals and in the economic arena, is based on seven corporate values that reflect our mission as a company. They also provide guidance for our employees as they take day-to-day decisions. In order to establish terms of reference, we made the Code of Conduct a binding document in 2006. It is based on international guiding principles, such as the Universal Declaration of Human Rights, International Labour Organisation Conventions and the United Nations Global Compact.
- Strategic environmental commitment
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The debate concerning climate change and measures to restrict harmful emissions has reached a new climax. As the world's largest logistics service provider, we give rise to significant greenhouse gas emissions. more
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The debate concerning climate change and measures to restrict harmful emissions has reached a new climax. As the world's largest logistics service provider, we give rise to significant greenhouse gas emissions. We have, however, long been aware of our environmental responsibility and act accordingly - as illustrated by numerous individual measures. In 2007, we focused on a range of climate-neutral products in our GOGREEN initiative. We were the world's first logistics company to adopt the goal of reducing the greenhouse gas emissions from road transport activities in Europe - as envisaged by the Kyoto Protocol - by 5% by 2012 compared with 1990.
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