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Chris Fahy, COO
DHL Global Forwarding
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
An excellent market position
DHL Global Forwarding, the global industry leader in forwarding with a leading market share of 11,6 % in AFR and 8,6 % in OFR
Strong position in all regions
Globally balanced weight of the 3 main regions
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Global Forwarding organization
Products / M&S General
functionsAir FreightTony Widmer
Ocean FreightAndreas
Boedeker
Marketing& Sales
Mark Oxtoby a.i.
Industrial ProjectsLouis Fret
Field sales
Tradelane
MNC /Bid/ sector sales
CPM
MNC Business DevelopmentMichael Young
a.i.
Europe/CEEThomas Nieszner
North AmericaHans Toggweiler
Latin AmericaSamuel Israel
EMAEnver Moretti
IS DemandRalf
Weissbeck
HRAlison
Houldsworth
CFOMartin Sigel
BPOAndrew Thorne
IntegrationStephen Chipping
StrategyDanielFurrer
GlobalForwarding COO
Chris Fahy
Asia Peter Landsiedel
Presenting today
Presenting today
Presenting today
Presenting today
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
A Consolidated Market Only a Small Group of Strong Competitors Left
Commoditization of More Products Increasing focus on core product lines
Higher Customer Expectations Better Value and Customization Expected
More Cross Border Trade More International Services / Solutions
Rise in Importance of China, India, Brazil Big Growth Opportunities
More Outsourcing Growth in Importance of Value Adding Services
The Logistics Market in 2010: Our View
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Main emphasis in 2006 has been integration
Organisation
Operational platform
Branch Mergers
Migrate all customer solutionsCustomer Solutions
Focus Area Scope
Implement a standardised organisation design in all countries
Migrate all countries into the standard operational platform called Logis
Merge all overlapping branches
Renegotiate global agreements
Co-load programs for AFR and OFR
Products
Terminate agents and implement single representativeAgents & JV’s
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Integration: achievements per end of November
Standard organisation implemented in all regions and countries
80 % of all countries in scope migrated to Logis
130 branch co-locations completed
95 % of customer solutions migrated
New carrier global agreements completed resulting in COS synergies
95 agents terminated (100 %)
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Latest LOGIS Migration schedule – 6 December-06
TR*
IN CN PK ***PH
Feb DecSeptAugJul MarMayAprJan NovOctJunMarch Jan Feb
HU
ID
MY***
DE
CZ
HK
JP
GB SE
TH
VN
NL
FI
AT
IE
MX
TW, KR
US
AU
SG
CA
NZ
EMA
Europe
N America
Asia
Months
2006 2007
S America
Europe
exceptionsOther CEE countries*
* Migration to LOGIS from non-U21 application** Migration initially to non-LOGIS local application*** Migration subject to JV resolution
EG*
GR*AE***
ES
PTCHBE
ZA
FR
BR*
IT**NO*DK**PL*
AR*CL*
PE*
902 3 3 15 21 18 10 15 5
0
1100
8
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Future plans and goals
Strategic four year program launched covering following initiatives
Sales force efficiency
Operational excellence
First Choice
Product Design & Innovation
Carrier Management
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
First Choice is particularly relevant to DHL Global Forwarding
provides a systematic methodology to leverage staff skills for identifying root
causes, monitoring quality and continually improving processes
DGF depends on “daily heroes”:skilled employees making ad hoc decisions and continuous small improvements on the front line
First Choice allows the necessary flexibility on country level by at the same time opening a change platform for global initiatives
No direct end-to-end control
Dependency on many operational partners (e.g. airlines, ocean carriers) limits internal direct control on operations and requires extensive coordination
Global networked business
Cross-country and cross-regional teams have different operating norms
– Product delivery requires coordination across regions
Aspiration to consistency…
Large number of small and medium sized customers
– Flexible processes are required to consistently address needs of fragmented customer base
Focus on consistent/efficient products
– Standard products, with value-add, to combine efficiency of operations with customer orientation
… but unique challenges
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Trade Lane Management Trade Lane strategy in Global Forwarding
21st Century approach to a traditional Freight forwarding sales activity with strong customer focus and end to end service capability via Air Freight and Ocean Freight.
Management of trade lanes through bilaterally agreed budgets and business plans with clearly defined target lists, scheduled overseas travel by a team of experts throughout the world, sales campaigns, supported by market analysis and product initiatives.
Achieve business Growth above market
Increase market share
Product development – increased carrier
selection and service frequencies
Bilateral agreements (country/country)
Strong focus on SMC segment
Sales visits to new and existing customers
Import value propositions
Drive growth opportunities
Achieve trade lane budgets
Optimize visibility of customer segments, commodities, load factors
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Customer Stability
Notable Wins 2006
Pipeline
Solid Pipeline – 20% Renewal / 80% Potential Business (YTD ’06)Total monthly DGF pipeline is equivalent to 38% of DGF’s total RevenueRFQ Hit rate 35% an increase of 4% over legacy companiesGood mix across customer segments and regions.
High renewal rates on existing business.Key element of 2007 strategy is increasing pipeline to ensure higher-than-market growth rates.
40% Corporate Customers
60% Small,
Medium Customers
Revenue Split
From Service Provider To Strategic Partner
Global Forwarding - Pipeline
Outbound finished goods and inbound equipment for global production.
Global Air freight and cross-dock program for final mile distribution.
Global Ocean freight and Air freight of finished goods.
APAC to Europe final mile delay program.
Global Air freight and Ocean Freight.
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Customer Case StudyMarket Leader in roasting high –quality coffee beans sold through own retail stores
Global and intra- Asia less-than-container -load (LCL) ocean and air shipments -Regional distribution centers in Singapore, Hong Kongand Shanghai.
DHL is now viewed by this client globally across all of its regions as an internal integral logistics partner.
Retail distribution in Singapore, Hong Kong and China.
Regional implant customer service center in Singapore covering all Asia.
EMEA DC just awarded in Essen , Germany.
Result:
Key Operational Dynamics: Relationship Development:
Key Success Factor:
Key Account Management Structure.
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
AMD Global Air Freight and Visibility
AMD customers: Materials planning
& scheduling accuracy
AMD corporate:Order planning
accuracy
AMD sales:Added and
enhanced new business
Reduced short-term capital
deployed
Aggregatedinventory buffer
Eliminated mostcustomer
inquiries forshipments
Advanced Micro DevicesElectronic Components
Out-bound Finished Goods and In-bound Equipment for global production platform in Asia, Europe, and the Americas.
Project goalProvide AMD customers with web-based, end-to-end visibility on
their orders shipped through the DHL network or other third-party providers (including the “final-mile” delivery component).
Enable AMD customers to track shipments with a unique referencenumber through the AMD website.
DHL solutionAS AMD’s global freight partner, DHL delivers a reliable, quality
visibility tool that exceeds AMD’s expectations.
AMD is a leading manufacturer and marketer of electronic components.
DHL secured a two-year contract period.
AMD business to grow significantly 2007 and 2008.
Asia-Pacific region is main focus of global production for AMD.
Value delivered to customer
Case Study
Facts and figures
Europe – Air & Ocean in motionThomas Nieszner, CEO DGF Europe/CEE
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Europe/CEE at a glance
Key Facts
32 Countries280 Locations8‘600 Employees
No. 1 in Air Freight:1.2 million tons (est ‘06)No. 2 in Ocean Freight:1.33 million TEU (est ‘06)
Employees
Highly skilledHighly motivatedLow attritionrate
67%
33%
Rest ofthe world
Total 2005 = 25‘400 employees
Europe/CEE
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Our Achievements
Net RevenueBiggestcontributorto globalrevenue 42%
58%
Europe/CEE
Rest ofthe world
TOP Ocean Freight Countries (Revenue)
Germany
France
Italy
UK
Belgium
TOP Airfreight Countries (Revenue)
Germany
UK
Netherlands
France
SwedenYTD Oct ‘06million €
YTD Oct ‘06million €
300 400
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Our Strengths
What makes DHL GF Europe strong and unique
ProductsProducts ClientsClientsStrategy, Structure & SystemsStrategy, Structure & Systems
Market Leader in Airfreight
Leading Ocean Freight provider
Broad productportfolio within Air and Ocean including valueadded services
Serving profitable niches
Healthy balance incustomer portfoliorevenue
40% global/ multinational companies
60% SME
Cross Sellingactivities with otherbusiness units
Strong presence in growing industries
Exel Integration completed extremelysuccessfully and synergies significantly aboveplan
Tremendous buying power through our sizeand intelligent European consolidation(Starbroker & Multinational Gateway Concept)
Strong focus on optimizing and expandingcountry to country trade landes
Common worldwide IT-platform linked to carriers and clients
Presence at all airports in Europe and all mayor seaports
Significant contribution to bottom line results of DPWN!
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Our Portfolio
Niche Excellence…Strong in the strongest Industry Sectors…completes our product portfolio
and contributes to profitable organic growth.
Motor SportsComplete logistics packages related to any kind of racing event, most famously the Formula 1.
BeaujoulaisWithin the timeframe of 9 Nov to 16 Nov two million bottleswere delivered to the furthestplaces inthe worldfor the past20 years.
Audio VideoTelecom
Audio VideoTelecom
Life Science& ChemicalsLife Science& Chemicals
ConsumerProducts
& Services
ConsumerProducts
& Services
ElectronicComponentsElectronic
Components
ElectronicEquipmentElectronicEquipment
Engineering & ManufacturingEngineering & Manufacturing
AutomotiveAutomotive
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Future Plans & Opportunities
DGF Europe: mid-term growth plan
Net Rev Growth Return on SalesNet Rev Growth Return on Sales
Prospering regional economy withinEurope in the nextyearsNew Market potential with expansion of European UnionLogistics sectorgrowing above GDP
First ChoiceBe the preferred service provider forour customersTherefore intensifiying customer focus& perfectionizing quality
Airfreight PLUSIntra-European Airfreightproduct with high bottomline contribution
Selection of initiatives to boost growth for DHL Global Forwarding Europe
Econ. Environment Our AssetsDominant presence in growing industries(Pharma, Biotech, …)Financial resourcesto further expand intonew marketsFull sales pipeline forclear visibility of futurebusiness with existingand new customers
Ocean DriveStrategic regional salesinitiative to significantlyincrease the transatlanticOcean Freight volume
06 07 08 09 06 07 08 09
AsiaPeter Landsiedel, CEO DGF Asia-Pacific
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Asia Pacific at a Glance
Regional head office: Singapore
AP Global Forwarding Staff: Approx. 8,000
Countries: 23 (5 sub regions)
Locations: 123
Highly secured locations: 22 (TAPA certified)
DHL is the clear market leader in Asia PacificDHL is the clear market leader in Asia Pacific
Ocean freight Airfreight
The Top airfreight forwarder in Asia Pacific (IATA ranking #1)
More than 1,200,000 tons in 2005 (export & import)
96 airfreight facilities in Asia-Pacific
The Top airfreight forwarder in Asia Pacific (IATA ranking #1)
More than 1,200,000 tons in 2005 (export & import)
96 airfreight facilities in Asia-Pacific
Undisputed market leader in LCL product
Over 660,000 TEU in 2005
More than 180 ocean freight operational locations in Asia-Pacific
Undisputed market leader in LCL product
Over 660,000 TEU in 2005
More than 180 ocean freight operational locations in Asia-Pacific
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Asia Pacific – Integration
9 Countries are already integrated (AU, JP, KH, KR, NZ, SG, TH, TW, VN)
Lean organization and management teams are in place in all countries which enabled DGF to further improve cost basis
Dedicated heads in integrated “back office” functions ensure a stronger focus on previous challenges
Productivity went up in all countries which were migrated to the new system
A clear governance structure between all business units in place (DHL Exel Supply Chain, DHL Express, DHL Global Mail)
Scale of DGF Asia Pacific business volumes result in strong position with carriers
Status QuoStatus Quo
6 countries (incl. Hong Kong, China and India) will be integrated in 2007
Review sessions to further improve profitability & productivity
Customer Satisfaction Surveys in all migrated operations
Next StepsNext Steps
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Driving Asia Pacific: China & India
China India
Coverage 44 locations in 23 cities
Employees 2,100 FTE
Warehouse space 116,700 sqm
Establishment DDAO 1991, Exel 1984 (Exel-Sinotrans JV, since 1996)
Offices more than 37 branch offices
Air Freight 226,000 tons (2005)
Ocean Freight 280,000 TEUs (2005)
Investments Double digit EUR spending to ensure leading market position (2004 - 2006)
Coverage 44 locations in 21 cities
Employees 1,300 FTE
Warehouse space 242,700 sqm
Establishment DDAO 1996, Exel 1997
Offices 21 branch offices
Air Freight 89,000 tons (2005)
Ocean Freight 37,000 TEUs (2005)
Investments Double digit EUR spending to strengthen network & coverage (2004 – 2006)
Strong Market Position
Huge Investments in the past three Years
Bright Outlook for the Future
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Saint Gobain Global Ocean Freight LLP
Fulfilment of carrier contracts
100%
Expansion intoemergingmarkets
Integration ofservices across the supply chain
In-house resourcespent on
freight planning and coordination
Overall transport costs
Time spendon freight
procurement and related activity
Saint GobainEngineering and Manufacturing
Value delivered to customer
Case Study
Facts and figures
Saint Gobain delivers virtually every kind of glass, refractory products and material that is used in buildings and cars throughout the world.
Saint Gobain has more than 1,200 consolidated businesses and is present in more than 50 countries.
Total shipments with DHL grew from 9,000 in 2004 to 30,000 in 2006.
DHL’s scope of services are expanding into oceanfreight LCL, air-freight, warehousing, as well as domestic road transport
Global Ocean Freight Lead Logistics Provider (LLP) and sole shipping agent to support production and sales locations.
Project Goal
Optimize logistics operations and extend cooperation geographically with core carriers.
Provide support for strategic expansion plans in emerging markets.
DHL Solution
In its capacity as global LLP, DHL coordinates with carriers on rates, and deploys an analysis tool to optimize cost and quality.
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Recognized by Peers & the Media
DGF won Best Air Freight Forwarder award at the 2006 Asian Freight & Supply Chain Awards
DGF won Airfreight Forwarder of the Year at the inaugural Lloyd’s List FTB Asia China Logistics Awards 2006
DHL Danzas Air & Ocean Lemuir in India was presented with the Award for Excellence by NEG Micon
DGF won Airfreight Forwarder of the Year at FTB Asia’sLogistics Awards 2006
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Leading in Quality & Sustainability
Quality Certification (ISO 9001:2000) & Environmental Certification (ISO 14001)
A total of 14 countries including the regional office covering 157 sites are certified to Quality & Environmental Management Systems in the Asia Pacific Region
Quality & Environmental Integration
Strong commitment to Corporate Sustainability in Asia Pacific
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Our way forward
Delivering on “First Choice”
– Customer relationship
– People development
– Product quality
– Innovation (new fields)
Consolidating Integration
– Continuing customer and employee retention
– Delivering on synergies
– Review of productivity & profitability
Improving Cost Management
North AmericaChris Fahy, COO
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Four successive profitable years
Exel Freight Management integration on schedule and in final phase.
DHL Global Forwarding: North America
12575Offices
3.2 M2.8 MShipments
5,2133,480Employees
2006(E)2005Canada and USA
Recognized No. 1 Logistics Provider in North America and globally
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
United States111Offices70 Dedicated Brokerage Offices4,881 StaffOperating: 1935Certification: ISO 9001:2000,
No. 1 in Airfreight in the United States
No. 1 in less-than-container-load (LCL) ocean freight
One of the top 3 leaders in customs brokerage and import services
4th largest non-integrated domestic heavyweight logistics provider
Key Tradelanes are 1. Europe and 2. Asia
DHL Global Forwarding: United States
There is a certain peace of mind that comes with leadership
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
DHL Global Forwarding: NAFTA
The link for shipping finished products or parts between the US, Canada and Mexico
Northern and Southern Border Infrastructure and Services:
– Comprehensive end-to-end solutions to importers and exporters trading between the largest trading partners in the world.
– Unmatched network of 27 dedicated brokerage offices strategically located on the Canada/U.S. border and 5 at the U.S./Mexico border.
– Unique, personalized solution based on customers’ specific needs
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Customer Recognition:
– Moen: “Creativity Unleashed” Award for supplier innovation and excellence.
– Unique Industries: recognized DHL Global Forwarding with its “Distinguished Service Award.”
Logistics Management Magazine: awarded 2006 “Quest for Quality" award in the category of freight forwarding
DHL Global Forwarding: Achievements
The most challenging deliveries in the world are what we do every day
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
The Result: The service, supported by real-time pipeline visibility1. Cut transit times by 11 days. 2. Slashed inventory costs 3. Reduced Moen’s reliance on expensive air freight
Case Study: Moen
Winning Innovation for Moen Incorporated
Moen is the number one brand of faucet in North AmericaCustomer Needs: Recently restructured its operations and asked vendors to think strategically and not focus on tactical execution.Action Plan: DGF re-engineered Moen’s trans-Pacific all-water supply chain to a 28 day “trans-load” service.
Tony Widmer, Head of AFR
Airfreight
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Airfreight at DHL Global Forwarding
2000 2004 2005
1.8
3.9> 2 x
Airfreight
Market Volume3): € 19.8 bn
Top 7 Companies (2005 Market Share In % By IATA Turnover )
No. 1
DHL Global Forwarding1)
Nippon Express
Kühne + NagelExpeditors
Schenker/BAX Global2)
Kintetsu
Other
64.22.93.13.5
5.2
11.66.8
Source: IATA/CNS and corporate estimates
1) Pro forma, 20052) Pro forma, combination of Schenker & BAX Global in 20053) Data originates from IATA report and does not refer to airfreight sales as published by the companies
Airfreight (Volume In Mio. Ton)
2.7 Panalpina (excl. ASB)Over 6’500 operational air freight experts worldwideOver 600 air freight offices/terminals (excl. agents)Airline net turnover 2.4 Billion EUR (excl. surcharges)
1)
1) Pro forma, 2005
2.2
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Airfreight Products Portfolio
Air FirstPriority upliftAirport-to-airport or door-to-doorIndividual handling and monitoringClear transit time statement
Air PremierCombines price and timeAirport-to-airport or door-to-doorScheduled direct services with prime carriersClear transit time statement
Air ValueEconomy service, for less time-sensitive freightLower air freight ratesRouting mainly via gatewaysDefined transit time statement
CharterFull and part charterFlexible capacityFor routes with limited commercial lifts, during peak seasons or for oversized cargo
Sea/AirCombines speed of Air Freight with economy of Ocean FreightAsia to Europe and Latin America
For All Products (Incl. / Opt.)
Dedicated Customer Program Management (CPM) offeringsNo weight or size restrictions (subject to aircraft type)Tracking and tracingCustoms clearance, pick-up and delivery
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Increased and upgraded Station / Country Network Network
Enlarged service offering (increased consolidations services and frequencies)
Offering
Less risk due to increased built up through units and increased QualityQuality
Productivity synergiesProductivity
Clear communication, planning and implementation as well as dedication on all levels created minimal integration issues
Set-up
Customer “first policy” throughout the entire integration processCustomer
Best positioning with all major airline partnersCarriers
Integration Benefits
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Outlook
Finalization of integration Q1 2007
Stabilization (make robust) all basic processes, best practice
Expand in-house carrier offering:- Strategic network management- Balance with global carrier management- Optimize network opportunities
Increase and further expand interface between StarBroker and DHL Aviation to build up strategic markets and improves economies of scale
Further enhancement of capabilities:- Staff (Training on all levels)- Equipment (IT)- Infrastructure
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Positioning
Remain The Leader In Global Airfreight Services By
Exceeding Expectations In Providing Excellent,
Safe And Environmental Responsible Service
Andreas Boedeker, Head of OFR
Oceanfreight
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Ocean Freight At DHL Global Forwarding
No. 1 Oceanfreight (Volume In Mio. TEU)
Approximately 3’300 operational experts worldwideMore than 330 operational locationsClose to 2’000’000 m3 of LCL* annuallyMore than 35’000 weekly point pairs for LCL* globally
1) Pro forma, 2005
Oceanfreight
Market volume2): 22.9 m Twenty Foot Equivalent Unit (TEU)
Top 4 Companies (2005 Market Share In % By Twenty Foot Equivalent Unit)
No. 1
8.68.3
4.3
4.0
DHL Global Forwarding1)
Kühne + Nagel
Schenker
Panalpina
74.8Other
Source: Global Insight Trade Databank, annual reports/publications and corporate estimates;
1) Pro forma, 20052) Estimated part of overall market controlled by forwarders
*) LCL: Less than Container Load
2000 2004 2005
0.7
2.0> 2 x
1)
1.1
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Ocean Freight Core Products
LCL (Less than Container Load)
Operated through “Danmar Lines“, the NVOCC* of DHL Global ForwardingDefined global routing matrix with over 35,000 point pairsRouting via dedicated gateways through own feeder concept
FCL (Full Container Load)
Centralized purchasing through “Danmar Lines”Long-term agreements and EDI** links with partner/core carriersContainer inland logistics through competence centers
Non Containerized Load
Oversized project cargo management through a dedicated team of industrial projects expertsNo weight or size restrictions
OceanfreightLogistics
* Non Vessel Operating Common Carrier
** Electronic Data Interchange
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Extended Product Portfolio
DHL Global Forwarding Ocean Freight Logistics
Basic OFR Services Additional OFR Related ActivitiesTraditional OFR Value Adds
Ocean Freight- FCL- LCL- Break Bulk, Projects
Local Pick-up
Inland Freight
Drayage
Port and Terminal Activities
Customs clearance
Trade documentation
L/C Handling / Banking
Insurance
Buyer’s Consolidation
Transit Warehousing
CFS Management
P/O Management
Tracking & Tracing
Warehousing, Distribution
LLP / 4PL (Control Tower)
Quality Inspection
Advanced Visibility Tools, Information Flow
- DHL Interactive - Transportation plus- Ocean Cargo Management - Logistics Management
Services
Information Flow
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
The Ocean Freight Process
InformationFlow
TransportationFlow
Visi
bilit
y, T
rans
pare
ncy
From
Doo
r to
Doo
r
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
The overall transportation chain remains an important issue as effectiveness of global supply is heavily reduced by delays
Oceanfreight Challenges
Carriers operating costs rise because of extended vessel turnaround times, full speed sailing, seeking of different gateways
Operating Costs
Terminals are under pressure due to the explosively increase in container volumes and the terminal infrastructure could become the bottleneck fro growth in the future
Port congestions will almost certainly return very soon without a big investment in new capacities
Transportation Chain
Terminals
Port Congestions
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Why Do More Customers Choose DHL?
Deep Global Coverage
Leverage Of Scale: Best Price And Guaranteed Space
Sophisticated Cargo And Information Flow Solutions
Flexibility Range: From Standard To Tailor Made Service Portfolios
Inland Logistics and In-House Carrier Concept (LCL – FCL)
Multiple Carrier and Port Alternatives
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Outlook
The DHL Global Forwarding Oceanfreight Wave Forward
Further Refining/Reshaping Our Core Carrier Policy, To Ensure
Maximum Price And Service Leveraging
Further Improving And Strengthening
Of Our Operational Processes, Reduction Of
Interfaces
Expansion Of LCL In-house Carrier
Network By Increasing Direct
Connections
Attract Best Industry Talent For DHL,
Through Our Employee Value Proposition And
Consequently Give The Customer The
Best In Market Logistic Solution
Chris Fahy, COO
Conclusion
Capital Markets Day – Logistics – December 11, 2006 - Frankfurt
Why is Forwarding attractive?
Low asset base
High growth potential
Global coverage
Large customer base
Product offerings are time definite and cost sensitive
Cash generating
Market driven by global trade
Looking forward to the future!