Deutsche Post DHL announces “Strategy 2020”

Deutsche Post DHL to emphasis on organic expansion, emerging markets and eCommerce-related, together with a continuous EBIT increase

Deutsche Post DHL, the world’s leading mail and logistics group, announces its new “Strategy 2020: Focus.Connect.Grow.” today in Frankfurt – a continuation of the positive momentum generated by the successful “Strategy 2015” defining the Group’s next phase of development. Strategy 2020 outlines the Group’s strategic priorities for the coming years and underscores its goal to become the company that defines the logistics industry. Among the focus areas of Strategy 2020 are the further expansion of logistics services in the world’s emerging markets and the international expansion of the company’s successful parcel business in order to take advantage of the global eCommerce boom. Consistent with Strategy 2015, the emphasis will remain on organic growth.

“The goal of Strategy 2015 was to unleash the tremendous power of our organization, and to unlock our full potential. Since introducing the strategy in 2009, we have seen significant revenue growth and a disproportionate increase in operating profit. We are on course to achieve our Strategy 2015 goals,” says Deutsche Post DHL CEO Frank Appel. “Our new ‘Strategy 2020: Focus.Connect.Grow.’ builds on what we have achieved so far. It will power the Group’s next big growth stage and open up new opportunities for sustainable profitable growth in today’s ever-changing environment. Our aspiration is to be the leading force in the logistics industry by 2020 and the company that defines logistics.”

The new strategy includes ambitious financial targets: For the period 2013 to 2020, the Group expects earnings growth of more than 8 percent per year on average based on the 2013 EBIT of EUR 2.86 billion. The 2015 EBIT target of between EUR 3.35 billion and EUR 3.55 billion remains unchanged. Despite the general slowdown of growth momentum in the forwarding market, the Group expects its DHL divisions to continue to be the main contributor to the Group’s revenue and profitability growth, with an annual average EBIT growth of approximately 10 percent per year over the period. In addition, the Group also sees the strongly increasing importance of the parcel business powering an improvement in operating profit of around 3 percent per year on average for its MAIL division. Furthermore, the Group expects to reduce Corporate Center/Other expenses to below 0.5 percent of consolidated revenues through year 2020.

Deutsche Post DHL will continue to emphasize organic growth through expansion into new countries and regions, and through tailored solutions that respond to ever-evolving customer requirements in both existing and new market segments. A significant further expansion into emerging markets is a key aspect of the growth strategy. Today, emerging market revenues contribute just over 20 percent of the Group’s revenues; by 2020, the Group expects this figure to climb to 30 percent.

Another major area of focus will be eCommerce-related logistics services. Here, Deutsche Post DHL wants to establish itself as the number one provider of cross-border eCommerce services on the most important international trade lanes, and one of the top three B2C domestic parcel delivery service providers in selected markets. The Group plans to gradually export its industry-leading expertise in the parcel business to other parts of the world, taking its German success model to countries in Europe, Asia and the Americas. To this end, it already shifted parcel activities in the Benelux countries, Poland, the Czech Republic, and India from DHL to the Mail division earlier this year.

www.dpdhl.com/en

Quelle: LogEastics
Portal: www.logistik-express.com