Deutsche Post AG — Call Transcript 2025

Ladies and gentlemen, thank you for standing by. Welcome and thank you for joining the DHL Group conference call. Please note this call will be recorded. You can find the privacy notice on dhl.com. Throughout today's presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you wish to ask a question, we ask that you please use the raised hand function at the bottom of your Zoom screen. If you have dialed in, please select star nine to raise your hand and six to unmute. Instructions will also follow at the time of the Q&A. I would now like to turn the call over to Martin Ziegenbalg, Head of Investor Relations. Please go ahead. Thank you. A warm welcome from my side to our Q2 call. To everyone out there, I take it you have the material that we released this morning in front of you. We see that we can make this a straightforward exercise today with the presentation by Melanie Kreis, our CFO, and afterwards the Q and A. With that, over to you, Melanie. Yeah, thank you very much, Martin, and good morning. A very warm welcome to all of you out there, also from my side. Thank you for joining our Q2 2025 investor call. I will, as usual, provide a short review of the key numbers and observations for the quarter, and I look forward to addressing your questions afterwards. Starting with page two. Page two summarizes our key observations for the second quarter of 2025. We indeed saw an impact of lower volumes in global trade. However, we have managed this volatility effectively, driving a strong performance in our logistics portfolio with an increase in Q2 EBIT and sustained strong cash generation. This outcome shows the effectiveness of our cost actions both in terms of adjusting capacities to cyclical fluctuations and in implementing structural cost measures under our Fit for Growth program. This allows us to continue investing into attractive structural growth opportunities aligned with the priorities outlined in our Strategy 2030. More details on both inorganic and organic investments will follow at the end of my presentation. Let me start on page three with some observations on global trade, as I know that this is on everybody's mind these days. The graph on the left illustrates the diversification of global trade by destination. The U.S. remains the largest destination market and, as expected, this is the area where we have seen the most significant impact on trade flows in Q2. Nevertheless, it is the essence of global trade that it finds its way to keep flowing, as we will also see in the Express regional development later on. Our ambition as a most diversified global logistics company is to support our customers in keeping their businesses going and in enabling them to continue leveraging the opportunities from the diversification of global trade also under the current circumstances. Flows have been extremely volatile throughout the second quarter from week to week and across trade lanes. Page four summarizes what this means for our Q2 volumes when we filter out the weekly noise. B2B volumes were eventually slightly lower across modes. However, there was no massive decline nor did we see a fundamental mode shift. E-commerce was a structural trend and continues to drive better momentum in B2C generally, with China-U.S. de minimis being the only market segment where we see a significant impact on trading volumes. Page five highlights how we translated these external conditions into a 6% year-over-year increase in Q2 EBIT for our group. Portfolio Express has really excelled in cost flexibility and yield management, delivering the fourth consecutive quarter of EBIT increase despite an underlying volume decline. I will come back to the drivers of this performance in more detail in a minute. As shown in the line at the bottom of the page, we have also started to book first one-off costs related to our Fit for Growth program in the second quarter, impacting Express, DGFF, and eCommerce. This is one reason why DGFF has seen lower EBIT conversion in the quarter, with the extreme volatility and overall weaker demand also dampening GP generation and productivity in the sector. Supply Chain continues to demonstrate a resilient performance with EBIT margin at 7%, and that is after adjusting for the positive net M&A one-off we had in the quarter. E-Commerce booked EUR 8 million cost of change, so was slightly down year-over-year, also excluding these costs but in line with expectations, reflecting, as you know, continued investments into the structural eCommerce trend. Last but certainly not least, in P&P Germany, we are very pleased to see our targeted cost actions based on structural network changes providing the necessary benefits to manage the ongoing structural volume shift from mail to parcel, which we saw as expected continue in the second quarter. The mentioned cost of change and supply chain one-off benefit are summarized in the EBIT Bridge on page six, with positive and negative non-recurring effects roughly balancing out for a positive EUR 4 million net effect in the quarter. The positive one-offs relate to M&A, with a small disposal in corporate functions and a larger EUR 3.4 million net positive M&A effect in Supply Chain, where the positive contribution comes from the first-time full consolidation of our ASMO joint venture in Saudi Arabia. We also had a positive free cash flow effect of roughly €100 million in net cash from M&A from ASMO in this quarter. Now it gets technical. This will reverse out, becoming cash flow neutral eventually with no impact on our overall free cash flow generation. However, the current accounting assumption is that the outflow will go through different lines in the cash flow statement, and that technically will lead to a net negative impact of EUR 100 million on the free cash flow excluding M&A view. We will flag that transparently as it unfolds in the remainder of the year. The cost of change of EUR 58 million relate to structural cost measures in the three divisions mentioned, but what is important to understand is that not all Fit for Growth measures do require cost of change. To the contrary, we initiated the first Fit for Growth measures last year without any cost of change and we are seeing Fit for Growth benefits clearly supporting our EBIT performance, I would say even better than initially expected, particularly in Express and P&P Germany. On page seven we present some examples of relevant cost KPIs which we are actively steering and tracking for Express, and you can see here that across the network we see really positive declines in all categories, which is a combination of efficient capacity management and structural changes under our Fit for Growth program. Next to the strong yield management, these cost measures are the primary driver of the increase in Express Q2 EBIT despite the year-over-year volume decline. As we mentioned on page eight, we have significantly reduced our air capacity and related costs beyond the overall 7% reduction which you can see highlighted on this page. Again, we have furthermore flexed capacity across the network to adapt to the volatile regional trade flows. As such, you see on the left side of the page the expected strongest decline in shipments into the U.S. to which we have responded with a significant reduction in airlift and in local pickup and delivery capacity. At the same time, the positive year-over-year developments in APEC and Middle East Africa are noteworthy. Though not sufficient to drive year-over-year growth for total global volume, they demonstrate the high diversification of global trade as discussed earlier. Simply put, there are still growth opportunities and growing trade lanes also in the current environment. Looking ahead, we expect this volatility to continue and we also expect a usual seasonal uplift for the peak season and for that reason we are currently preparing the demand surcharge 2025 with similar mechanics as last year and we will announce the details in due course. I have now talked about what we see in terms of the global trade environment, what it means for our volumes and how we cope with it. There is clearly still a lot of uncertainty and volatility, but based on what we know and see at the moment, we are reiterating our guidance today. We maintain a qualification around changes in tariffs on page nine, where we continue to monitor an escalation in tariffs and trade conflicts not covered in our current assumptions. One of the topics which we are watching here is the de minimis exemption for shipments from rest of world into the U.S. There have been several iterations on that topic in recent months. For example, the discontinuation of the de minimis exemption earlier in the year for four days, after which it was reinstated. As you all know, we had at the beginning of May the abolishment of de minimis from China, Hong Kong into the U.S. There was a new executive order issued on July 30, which brings the timeline for the rest of world phaseout forward to August 29th, compared to a phaseout in 2027 which was foreseen in the tax bill passed just one month ago. Obviously, also quite a dynamic environment with regard to de minimis. We will have to see whether the latest executive order from last Wednesday will be implemented as announced and, if yes, what substitution effects will occur. In a worst case scenario, we would see a maximum risk, a maximum risk of up to EUR 200 million on our full year 2025 EBIT. We decided not to include this risk into the guidance as we don't consider this worst case scenario the likely path forward. I want you to be aware of that topic as it is one of the many moving parts. Turning back to a more straightforward topic, I'm particularly pleased to conclude my review with the cash flow perspective. On page 10, we see continued strong cash generation, allowing us to invest in a balanced manner across all priorities of our finance strategy. While we remain in strong CapEx control mode given current volume developments, we also continue to invest in targeted opportunities that will drive our mid-term growth path. Focusing on the growth topics identified by Strategy 2030, we have spent EUR 3 billion on shareholder returns in the first half of the year through our dividend payment and ongoing share buyback program. Additionally, we have seized some good opportunities for targeted inorganic growth, leading to a temporary acceleration in M&A announcements and spending, fully aligned with our strategic ambitions. You find the full list of announced acquisitions on page 11, and you see the clear focus on the strategic topics of life science and healthcare, geographic tailwinds, and e-commerce, as well as the confirmation on the right that we pursue M&A not for sheer size or volume, but as a complementary option to enhance our capabilities and market trees. To be clear, organic investment remains the primary driver of our mid-term growth plans. On page 12, we showcase some examples of our ongoing targeted investments into organic growth opportunities driven by the mid-term structural growth topics laid out in our Strategy 2030. To wrap it up, on page 13, the key takeaways from our Q2 performance and current management priorities. Not surprisingly, we are effectively managing short-term volatility through cost and yield actions, and at the same time, we continue to invest into fundamentally attractive structural growth opportunities. Given the environment, we are addressing our cost base both from a shorter-term cyclical capacity angle and through structural cost reduction under our Fit for Growth program. That is what you can quite clearly see in our Q2 numbers. I rush through the presentation to have enough time for your questions, and I now look forward to hearing your questions. Over to you. Ladies and gentlemen .We will now begin our Q&A session. If you have a question, we ask that you please use the raised hand function at the bottom of your Zoom screen. If you have dialed in, please select star nine to raise your hand and six to unmute. Once your name has been announced, please unmute and ask your question. If you want to withdraw your question, please lower your hand using the raise hand function. Thank you. A moment for the first question, please. Our first question comes from Andy Chu with Deutsche Bank. Andy, please unmute your line and ask your question. Thank you. Good morning, Melanie. Good morning, Martin. A couple of questions for me please. In terms of the Fit for Growth benefits, could you just give us an idea of and try to quantify those for us? You obviously gave us the cost of change, and then maybe if we could just have a word on current trading. Are you seeing more of the same kind of run rate of growth in the business, sort of 6% at the group level? Is that the run rate that you're seeing year on year, or maybe a view sequentially versus Q2 as we have started Q3? Thank you. Yeah, morning Andy. Thank you for the question. On the Fit for Growth benefits, we are tracking that quite closely with internal monitoring. I think when you look at the ultimate effects, for me it's not meaningful to break out a specific number because that is also coming together with the general cost management, which we are doing. What I can say is that it's clearly a net positive effect in the quarter. We are seeing bigger benefits than what we had in terms of cost of change in the quarter already. Overall, I'm very pleased with the development. We are really ahead of schedule. You'd see that particularly in Express and P&P Germany, where the team is totally focused on implementing the Fit for Growth measures. On the current trading, what did we see into July, August, beginning of the third quarter? I think you used the term more of the same and I think that is probably the best description. We haven't seen a significant acceleration in the growth dynamics and it remains very volatile. I think more of the same is a very good summary. Thank you. Thanks, Andy. The next caller should be Alexia. Our next question comes from Alexia Dogani with JPMorgan. Alexia, please unmute your line and ask your question. Good morning. Thanks for taking my questions. Melanie, to go back to the Fit for Growth comments you just made that the net positive effect is ahead of the cost of change impact. Should we expect in the coming quarters these numbers to kind of accelerate or should we expect a similar pace of the cost of change and therefore the commensurate net positive impact? If I can just ask related to that, are there any notable areas of the network that you're currently using money that you can quantify and that you're addressing? That would be helpful. The second question, because I didn't quite, I missed it when you talked about this kind of negative scenario you wanted the market to be aware of. Is that really on the de minimis change or just more broadly on the tariffs? How should we think about it? Is it just for the 2025 EBIT and does it relate with the capture of the demand surcharge in Express, just to understand what to look out for to know whether that $200 million negative happens or not. Thank you. Yeah, thank you, Alexia. On the Fit for Growth, we obviously expect the program to accelerate and we do expect that we will see again cost of change bookings in the second quarter. For the full year, we're still in line with the overall cost of change number, so that shouldn't go any higher. We do expect some more cost of change to come in the third quarter and we will flag that transparently as well. In terms of losing money, I think that is a very difficult question in the network and that is not, I assume you're talking about Express, and that is not how we think about it. I would say that we have really managed to make the necessary capacity adjustments on the aviation side. You also see some numbers on the PUD side where we are also pointing out the significant reduction we made in the U.S. to adjust for the lower volume inflow into the U.S. I think that is really across the network, extremely well managed. To the de minimis topic, as mentioned, this is obviously one of the most volatile topics of the last months where we have seen quite a bit of back and forth. Early July with a new tax bill, it was said that rest of world de minimis would stay in place until summer of 2027. Just four weeks later, we get an executive order which foresees the complete abolishment of de minimis rest of world by August 29th. There are still many moving parts. For example, the whole question of the postal implementation of the de minimis abolishment. That is why we now have to really watch and see: will it be implemented the way it was announced, what will be the details, what will that mean for trade flow substitution effects, opportunities which could also arise from the whole thing. Being a conservative finance person, I of course pushed my team for, tell me what would be the worst case scenario. It is all implemented August 29 and only the negative stuff comes through. In this worst case, what number would we talk about? That would be for 2025, up to EUR 200 million. I decided to share that number with you openly because I guess you will try to do the same type of worst case calculations. It's again not the likely scenario. That is why we have not included it into the guidance. We just wanted to be as transparent as we can possibly be with all the uncertainty. Thank you, Melanie, I appreciate that. Can I just check because what is the number you expect for cost of change for the full year? Is that something you've discussed in the past? Yeah. We said that it would be kind of like up to $200 million. I think looking at what we have now booked in Q2, I think we will definitely stay within that number. Thank you. Our next question will come from Marco Limite with Barclays. Marco, please unmute your line and ask your question. You can please use the unmute button at the bottom of your Zoom screen. Maybe we give Marco a minute and continue with Muneeba. Our next question comes from the line of Muneeba Kayani with Bank of America. Muneeba, please unmute your line and ask your question. Good morning, Martin and Melanie. Thanks for taking my question. First one, I just wanted to ask around the demand surcharge which you said is in planning. If I remember correctly from last year at this time you'd already, I think, announced it, so what are you waiting for on the demand surcharge at this point? What are discussions with your customers like, and how should we think about it across trade lanes given the big shifts in demand compared to last year that you've just talked about? I think last year it was more on the Asia U.S. trade lane. Any thoughts on that would be super helpful. Just related to Fit for Growth targets, I think you've talked about the cost savings of over $1 billion run-rate by the end of 2026. You've talked about the impact this year. How do we think about it next year, both on the cost of change as well as the benefits aside? Thank you. Yeah, thank you Muneeba. On the demand surcharge, you're right. Last year we announced it at the beginning of August and we then already informed our customers about the details. It went into effect September 15. I think we announced it so early last year because it was the first time we ever did it. Now it's more of a hey, this is what we have to do in the peak season. That's one of the reasons why we haven't communicated the details with the customers yet. The second thing is, of course, that it is a very volatile environment out there and the intention of the demand surcharge is to optimally balance the cost of production on the supply side with anticipated demand. We really take some time to work through the details so that we really get it right, including the right demand surcharge per trade lane where, again, as you said, obviously the situation is quite different on the Trans Pacific compared to what it was last year. With regard to Fit for Growth, yes indeed. The intention is to get to a contribution of $1 billion by the end of 2026. That remains unchanged and we do expect that the cost of change part is going to fall more into the current year than into next year. That is why we said at the beginning that the impact is probably just going to be a small net positive for 2025. Looking at the progress we see, including also progress from measures which do not require cost of change, there will be a positive contribution falling into the overall cost reduction progress which you can see in our numbers and that is, of course, in the current environment also needed to deliver on our overall targets for the year. Muneeba, good for you. Thank you. Thank you. Maybe Marco Limite wants to give it another try. Our next question comes from Marco Limite with Barclays. Marco, please unmute your line using the black bar at the bottom of your Zoom screen and ask your question. Hi, good morning. Can you hear me now? Yes, we can. Good morning. Oh, amazing. Thank you. I apologize for that. I've got a couple of questions. The first question is on your Express volumes where we've seen B2C volumes down 20% now. If we aggregate the volume decline since 2022, eCommerce volumes in Express are down 40%. I'm just wondering if you could give a bit more color of what's happening there. 20% this quarter is a very big number, more than Q1 and the previous quarters. The second question is if you could add any comment about the change in leadership in the freight forwarding business. Clearly, Oscar has done an amazing job in Supply Chain, but why do you think that the know-how and the skill set from supply chain is a good fit also into the FF Freight division? Thank you. Yeah, thank you Marco. On the Express volumes, yes indeed. The -20% in B2C leading then to overall TDI volume decline of 10% in Q2 is a higher number than what we had in previous quarters. We do see the impact of the de minimis exemption abolishment for China, Hong Kong to the U.S. That is also what competitors have talked about, that clearly after May 2nd there has been a significant decline on the Trans Pacific. I think for us the impact of that has been a bit different to competition because we had already beforehand started managing down those volumes because for us they weren't the most profitable volumes. We see a combination of the de minimis exemption impact and regular yield management. With regard to the change in DGFF leadership, yes. Tim, who is turning 60 this month, has decided to go into retirement and Oscar is taking over Global Forwarding Freight. On the supply chain side, we have Henrik Venter succeeding Oscar, who has done an amazing job in the supply chain division for 15 years with very good results and progress in the EMEA region over the last years. We really have a strong bench and we're able to easily refill that position. Oscar taking over Global Forwarding, I mean, first of all, when you look at Oscar's CV, he actually started with Nedlloyd, so there is a bit of forwarding history in Oscar's yellow blood. Oscar is also simply a fantastic manager and leader, and together with the strong team in DGFF, we felt that he's the right one to now take DGFF to the next level. Thank you. Our next question will come from Alexander Irving with Bernstein. Alexander, please unmute your line and ask your question. Good morning, Melanie. Two from me, please. First of all, in freight forwarding, you reported your lowest conversion margin since before the transition to CargoWise. How do you plan to get this from where it currently is up towards a 35% target? Is that yield, is that missing volumes? Is that further cost reduction? Second, maybe a question on supply chain please. The top line broadly flat at constant FX. Should this not be a segment with at least mid single digit top line growth when are we going to get back to those sorts of levels? Thank you. Yeah, thank you for the two questions. On the Global Forwarding Freight conversion, yes, clearly that is not at the level where we want it to be. Q2 was overall, in terms of financial performance, not the strongest quarter. I think we also see that generally the market is difficult. Obviously, we also have some internal homework to do. We made progress on the freight side, so that looks already better than in Q1. We booked cost of change in freight. We also booked some cost of change in Global Forwarding Freight. Those are also impacting the conversion rate. What do we have to do to move that into the right direction? Again, I think it's a combination of the two factors you already pointed out. It is yield working on the gross profit side where we also see some of the targeted growth initiatives gaining traction, and of course continued focus on cost and efficiencies with the Fit for Growth component also playing a role in DGFF. On the supply chain growth, that's a very interesting question because supply chain is, in terms of speed of adjusting to a slowdown or an acceleration in the global economy, the slowest of our divisions. You may recall a while ago we had this slide: which division is the most macro dependent, which division reacts the fastest? That's Global Forwarding. Which one is more on the slow side? That's supply chain. What we are now seeing in supply chain is also that things are not super dynamic in the global economy. You can see that in the throughput volume in our warehouses, in some of our customers, and that is temporarily slowing down the top line growth in supply chain. Over the medium to long term, we still see fantastic growth opportunities for that division. I would say that we are now going through the supply chain cyclical adjustment to what is happening in the world around us. All right, thank you. Our next question comes from Patrick Creuset with Goldman Sachs. Patrick, please unmute your line and ask your question. To clarify, please. Yes. Yeah. Now we can hear you. Start again, please. Just two clarifications please on Express. One, just on the $200 million worst case scenario de minimis, can you just share whether you think that's, if it happens, whether that would be down to a direct loss of volume and revenue for you or whether it takes into account largely the indirect, potentially indirect effects on the softer air freight market, therefore lower ACS revenues and that kind of thing. The second, on the surcharges and you're preparing for September, can you roughly give us a sense of the level relative to last year? Should we think about it as last year's level being a best case? If the peak season surcharge was down year on year, is your current expectation that the lower cost base offsets that in the fourth quarter? Basically. Thank you. Let me start with the second question because I think you basically answered it yourself. Yes, we are given that this is offset for the cost development in the current environment. We probably assume that we will have a lower cost base and hence need a lower cost offset. That would per se lead to a lower income from the demand surcharge. You would see the compensation on the cost side, and that is all factored into our guidance. The reason why we are not announcing the details yet is that it is obviously a quite dynamic environment out there in terms of changes, not in terms of volume dynamic. We really want to get it right and take the time to really per trade lane find the right balance on the de minimis worst case. We run a holistic model for these different scenarios and you can spend all day at the moment doing scenarios. In this worst, worst case scenario, the biggest impact actually comes from the assumed reduction in volume. All right. Our next question comes from James Hollins with BNP Paribas. James, please unmute your line and ask your question. Thanks very much. Couple for me please. Just wondering on the, I mean previously you said de minimis from China to U.S. was pretty small for you guys. I don't know exact quote, but that was roughly in line. I was wondering if you could maybe help us with the maths on the B2C shipments down 20% year on year, what that might have been ex de minimis on that channel lane and then Melanie, thanks very much for the $200 million guide on your, very diligent of you on the worst case scenario in de minimis. Wondering if you could take us behind the scenes and maybe quantify your worst case scenario on some of the tariff news we've been having recently from Donald Trump. Thanks very much. Okay, I think the second question is a bit impossible to answer because there is so much news flow, right. I mean when you just look at the EU US trade deal where I think as we all know the details are still to be worked out. I think on the positive side you can say that there is some type of clarity coming up. Talking to customers, that is also something they do appreciate very much. Obviously, it will lead to a significantly higher tariff than what was there before, and that should have some impact on transatlantic volumes from Europe into the U.S. There could be some upside specifically on certain sectors from the U.S. into Europe. I think we have, like with so many topics now, really to work through the details and really see also how this is then implemented in detail because for us, being the ones who are doing the customs clearance, the devil is really in the detail. There are still lots of question marks around the recent announcements with regard to de minimis B2C -20%. The -20% in B2C volume in Express in the second quarter is impacted by the de minimis abolishment China, Hong Kong to the U.S. We clearly have seen in May, June an acceleration, a significant acceleration in the decline in volumes on that trade lane. What I had alluded to beforehand was that we had already done quite a lot of action on the pricing side before that. We had already seen declining volumes before. Obviously, there has been a significant impact and that is also visible in the -20% B2C volume decline in Q2 overall. Okay, thank you. Thanks Patrick. Our next question comes from Paresh Jain with HSBC. Paresh, please unmute your audio and ask your question. Hi, thanks for taking my questions. I have two. If Melanie can talk about any qualitative color on how has been the start of third quarter, especially amidst tariff on tariff off scenario. Secondly, if you can talk about some of the tools that Express business have to deal with the extreme volatility in freight volume, I mean how easy or difficult it will be to take the cost out, and will it come in the form of return of aircrafts, or will it come from getting rid of some of your older fleet. Any color on that will be helpful. Thank you. Thank you for the two questions. Maybe on the first one, start of Q3, I really think I said before the best description for me is it's more of the same. We don't see a significant change in volume dynamic. We see a continuation of this very pronounced volatility, which of course makes planning in network businesses like ours quite demanding. Against that background, I'm even more pleased with the ultimate result for Q2. Also now in the third quarter, we stay extremely focused on constantly adjusting the network to the volume development and driving forward our cost measures. With regard to what tools do we have in Express to flex on the aviation side, I think what we are now seeing, for example, in the 7% capacity reduction in Q2 is the benefit of our aviation setup where we have this very good combination of own aircraft, long-term leases, medium-term leases, short-term leases, which allows us to really flex the capacity. That in combination with a lot of rejigging, moving aircraft from the less busy routes to the busier routes, that is what we have successfully used in Q2, taking us to the 7% capacity adjustment. That is also the opportunity we have going forward. I think also very importantly, when volumes come back, that will allow us also to flex back up. Lovely. Maybe one quick question if I can add up, now that the Division acquisition has been completed, are there any early signs of movement among the key customers? Are you seeing any pockets where DHL's Freight business can grab some market share? Yeah, we think that the opportunity is out there, but I think in the current environment we do see in our customer portfolio, but also in the customer portfolio of competitors, a higher reluctance to change. Many tenders are being pushed out, which would be natural opportunities to switch because customers are delaying decisions. We do think that there are opportunities coming from the merger, but we see an impact on the speed from the current environment. Lovely, thank you and have a great day. Thank you, you too. Our next question comes from Cedar Ekblom with Morgan Stanley. Cedar, please unmute your audio and ask your question. Thanks. Hi Melanie, I just had a follow-up question on these points around de minimis. My understanding was that de minimis was quite a small part of what the Express business was doing. I understand the $200 million that you've given is for the group overall in terms of risks in the second half, but I would expect that a lot of that would be in that Express division, particularly because you talk about B2C volumes being down 20% and that being a lot linked to China de minimis. If I look at that $200 million and I say that that's only for four months of the year, it actually works out to be quite a large percentage of your Express profitability. I'd just like to understand your comments around de minimis not being so big for your group, but then those numbers actually implying that it's quite large. Just on margins in B2C and B2B, my understanding as well has been in the past that you haven't necessarily seen a meaningful difference in profitability between those two product groups. B2C volumes were down a lot more than B2B and I know that you've put cost initiatives in place, etc., but the margin was actually really strong. Can you just talk about B2B and B2C and if we really do need to think about different levels of profitability for those two product categories, because that's got implications for how we think about the potential margin recovery when B2B volumes come back. Thank you. Thank you, Cedar. On the first question, there is obviously quite a lot of dynamic now on the whole de minimis. As I said before, with the new tax law which was just passed by Congress in the early days of July, everybody assumed that it would now be in place until July 27. On July 30, there is an announcement that it will now be gone completely by August 29. Of course, all these changes take some time to really settle in, and that is why you also see a bigger impact at the beginning than in a steady state. Customers are, of course, working on solutions. That is why I don't think you can extrapolate from a worst case 25 number for what that means going forward in terms of, and just to be correct, the number which we have given is kind of like a worst case number for the group overall. Obviously, the biggest impact would be Express with regard to the margin question, B2B, B2C. What can you kind of like derive from the Q2 numbers? I think the important element in here is that the Trans Pacific trade lane in terms of profitability is very different. Different for us and also different between us and competition, for competition. That has obviously been one of the most important and most profitable trade lanes for us. Due to our distant third position in the U.S., the economics have been very different. That is also why for more than a year we have now talked about pricing out B2C volume on the Trans Pacific because we didn't get the best margin contribution from that business. That is the reason why this B2C volume decline in Q2 looks as if we are losing B2C volume with a poor profitability overall for the network. That is something we have been obsessed about ever since the beginning of B2C. We do make sure that there is also a good profitability and margin contribution from B2C to the Express network. Okay, can I just have one follow-up please just on this de minimis topic. If it's a worst case scenario of a EUR 200 million cost from the end of August this year, how do we think about what the cost, the incremental cost would be for 2026 in a worst case scenario? Do we just double that EUR 200 million, or do we need to think about the seasonal cost being very much weighted into the last quarter of the year, and so actually the incremental cost into 2026 would be much less, maybe anther EUR 100 million incremental or something like that? There are so many moving parts at the moment. We have now tried to give you a feeling for the overall impact, not on cost, but the overall EBIT impact in absolute worst case for 2025. Of course, if that scenario, which again we do not think is a likely scenario, should materialize, we would take further cost actions. We would make further adjustments. That extrapolation to 2026 on that basis is really not possible. We will then have to reassess how we set up the operations for 2026. That was just to give you a bit of a sensitivity for a worst case in relation to our 2025 guidance. Okay, thanks so much. Appreciate the help. Thank you. Our next question comes from Cristian Nedelcu with UBS. Cristian, please unmute your line and ask your question. Cristian. We can't hear you. Cristian, you may unmute your line by using star six. Our next question comes from Marc Zeck with Kepler Cheuvreux. Marc, please unmute your line and ask your question. Good morning, can you hear me? Yes, we can. Morning. That is great. Just a small clarification regarding de minimis and relation to that, the demand surcharge. Would that worst case $200 million already assume that in that case you wouldn't do a demand surcharge for the fourth quarter, or is that kind of a worst case scenario, possible worst, like the -$200 million from the de minimis impact, and that then due to lower volume as such you wouldn't do a demand surcharge? And that's actually. Thank you. In this world of scenario modeling, we do try to come to holistic scenarios. That is why we are trying to factor in all elements. That is really the all-inclusive first case number we would see. Thank you. Our next question comes from the line of Cristian Nedelcu with UBS. Cristian, please use Star 6 on your handset to unmute. Hi, can you hear me? Yes, we can. Morning. Thank you very much for taking my question. Just maybe a couple left, just a conceptual one. I think your revenues in the quarter, excluding effects, were down 1% or something like that, year-over-year. You're seeing more of the same going forward. The structural cost cutting from Fit for Growth is not really meaningfully offsetting that revenue drop. It does seem to me that it is your cyclical cost cutting that is actually helping you have a resilient EBIT for the next couple of quarters at least. My question is when volumes start to recover, is it fair to assume that the operating leverage benefit to the EBIT will be less pronounced than historically because you'll have a lot of the cyclical cost that you have to reactivate? That's maybe just a conceptual directional question about the midterm. The second one on Express. Historically, the Q3 EBIT is weaker due to seasonality versus Q2. I think last year was the exception because you started doing in a more meaningful way capacity reductions and you've been addressing the cost. I was just wondering if you can help us a bit, how should we think at the seasonal development this year in Express in Q3? I'll probably be there, but thank you very much. Thank you. I think first of all on the operating leverage, what we are seeing at the moment on the cost side is a combination of the cyclical capacity adjustments to the volume and the increasing benefits of Fit for Growth. Yes, when volumes come back, we will also increase over time capacity. What we have traditionally seen is that this is quite a sweet spot period, where volume then tend to come back quicker than we add capacity, giving us good operating leverage. That is also what I would assume for whenever volume comes back going forward. On the seasonality, yes, Q3, as you rightly point out, is not the strongest quarter for Express. That is also now for second half of 2025. Thank you very much. Our last question will come from Arthur Truslove with Citi. Arthur, please unmute your line and ask your question. Can you hear me okay? Yes, good morning. We can. Good morning. Thank you very much. There was a couple from me. Just looking at the cash flow statement, you had what looks like a profit on disposal of non-current assets, around EUR 17 million. I just wanted to confirm if that was stripped out from normalized profits or not. Also within there, I can see that the provision movement is negative from a cash flow perspective, but I just wondered if there was anything in the P&L for that. Moving to the fundamentals of the business, obviously the volume trends in Express have been soggy for some time. What things are you tracking to give yourselves an idea of when that volume rebound might finally take place? Thank you. Yeah, on the cash flow statement, I have to see whether I got your questions correctly. We had, I think, $95 million in changes in provisions. For example, some of the cost of change which we booked as provisions was coming up very quickly. We had some provisions which we were using for the cost of change. I would say this is more of the usual stuff. Last Q2—no, sorry, I'm still looking at Q1. Sorry, apologies. Changes in provision was -$50 million in Q2, -$95 million in Q1. We have a lot of usual stuff going through there, personnel provisions, and I don't have anything I would point out here as extraordinary. I think overall, really the cash flow, apart from the M&A line, the $253 million in net cash from acquisitions, divestments, is really very unspectacular and uneventful. Nothing to be seen there. The second question. I think it reminds us of the second question that you had. Yeah, what are you sort of watching? What things are you looking for to give you an idea of when things are going to come back. Yeah, I mean, we have our daily volume trackers, and as I said before, it has been super volatile also from week to week, which is something which I haven't seen in that magnitude before. It is very hard to see any types of patterns at this point in time. Of course, we are looking at daily volumes in Express, daily volumes in the parcel networks, and turnover we see in the supply chain warehouses. As I said before, when we now look at what we see in the beginning of the third quarter, it's more of the same and not a fundamental change in patterns. Thank you very much. Thank you. This concludes the Q&A session. I will now hand back to management for closing remarks. Thanks, Abigail. Thanks to everyone out there for a very focused Q and A session. Thanks for that. IR team is looking forward to discussing any other topics further with you over the next couple of weeks, unless you prefer to go on your annual vacation. Let me turn it back to Melanie for your closing remarks. Thank you very much also from my side for your interest, for the good questions, and the discussion. If I wrap it up, obviously we saw some impact of the volatilities in the world around us on our Q2 numbers. For me, the important message is that we are focusing on the cost side, doing both the regular cyclical capacity adjustments and pushing forward with our Fit for Growth agenda. At the same time, we keep investing into growth opportunities, and they are still out there. You really have to hunt for them. We are confident that with this combination of strict cost focus and looking for growth opportunities in the current environment, we will deliver growth also going forward. Thank you very much. With that, also from my side, have a good summer. To those of you who are still going on vacation, have a nice summer holiday. This concludes today's call. Thank you everyone for joining. You may now disconnect.

Speaker 11: Ladies and gentlemen, thank you for standing by. Welcome and thank you for joining the DHL Group conference call. Please note this call will be recorded. You can find the privacy notice on dhl.com. Throughout today's presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you wish to ask a question, we ask that you please use the raised hand function at the bottom of your Zoom screen. If you have dialed in, please select star nine to raise your hand and six to unmute. Instructions will also follow at the time of the Q&A. I would now like to turn the call over to Martin Ziegenbalg, Head of Investor Relations. Please go ahead. Ladies and gentlemen, thank you for standing by. ladies and gentlemen thank you for standing by Welcome and thank you for joining the DHL Group conference call. welcome and thank you for joining the dhl group conference call Please note this call will be recorded. please note this call will be recorded You can find the privacy notice on dhl.com. you can find the privacy notice on dhl.com Throughout today's presentation, all participants will be in a listen-only mode. throughout today's presentation all participants will be in a listen-only mode The presentation will be followed by a question and answer session. the presentation will be followed by a question and answer session If you wish to ask a question, we ask that you please use the raised hand function at the bottom of your Zoom screen. if you wish to ask a question we ask that you please use the raised hand function at the bottom of your zoom screen If you have dialed in, please select star nine to raise your hand and six to unmute. if you have dialed in please select star nine to raise your hand and six to unmute Instructions will also follow at the time of the Q&A. instructions will also follow at the time of the q&a I would now like to turn the call over to Martin Ziegenbalg, Head of Investor Relations. i would now like to turn the call over to martin ziegenbalg head of investor relations Please go ahead. please go ahead

Speaker 1: Thank you. A warm welcome from my side to our Q2 call. To everyone out there, I take it you have the material that we released this morning in front of you. We see that we can make this a straightforward exercise today with the presentation by Melanie Kreis, our CFO, and afterwards the Q and A. With that, over to you, Melanie. Thank you. thank you A warm welcome from my side to our Q2 call. a warm welcome from my side to our q2 call To everyone out there, I take it you have the material that we released this morning in front of you. to everyone out there i take it you have the material that we released this morning in front of you We see that we can make this a straightforward exercise today with the presentation by Melanie Kreis, our CFO, and afterwards the Q and A. we see that we can make this a straightforward exercise today with the presentation by melanie kreis our cfo and afterwards the q and a With that, over to you, Melanie. with that over to you melanie

Speaker 9: Yeah, thank you very much, Martin, and good morning. A very warm welcome to all of you out there, also from my side. Thank you for joining our Q2 2025 investor call. I will, as usual, provide a short review of the key numbers and observations for the quarter, and I look forward to addressing your questions afterwards. Starting with page two. Page two summarizes our key observations for the second quarter of 2025. We indeed saw an impact of lower volumes in global trade. However, we have managed this volatility effectively, driving a strong performance in our logistics portfolio with an increase in Q2 EBIT and sustained strong cash generation. This outcome shows the effectiveness of our cost actions both in terms of adjusting capacities to cyclical fluctuations and in implementing structural cost measures under our Fit for Growth program. Yeah, thank you very much, Martin, and good morning. yeah thank you very much martin and good morning A very warm welcome to all of you out there, also from my side. a very warm welcome to all of you out there also from my side Thank you for joining our Q2 2025 investor call. thank you for joining our q2 2025 investor call I will, as usual, provide a short review of the key numbers and observations for the quarter, and I look forward to addressing your questions afterwards. i will as usual provide a short review of the key numbers and observations for the quarter and i look forward to addressing your questions afterwards Starting with page two. starting with page two Page two summarizes our key observations for the second quarter of 2025. page two summarizes our key observations for the second quarter of 2025 We indeed saw an impact of lower volumes in global trade. we indeed saw an impact of lower volumes in global trade However, we have managed this volatility effectively, driving a strong performance in our logistics portfolio with an increase in Q2 EBIT and sustained strong cash generation. however we have managed this volatility effectively driving a strong performance in our logistics portfolio with an increase in q2 ebit and sustained strong cash generation This outcome shows the effectiveness of our cost actions both in terms of adjusting capacities to cyclical fluctuations and in implementing structural cost measures under our Fit for Growth program. this outcome shows the effectiveness of our cost actions both in terms of adjusting capacities to cyclical fluctuations and in implementing structural cost measures under our fit for growth program This allows us to continue investing into attractive structural growth opportunities aligned with the priorities outlined in our Strategy 2030. More details on both inorganic and organic investments will follow at the end of my presentation. Let me start on page three with some observations on global trade, as I know that this is on everybody's mind these days. The graph on the left illustrates the diversification of global trade by destination. The U.S. remains the largest destination market and, as expected, this is the area where we have seen the most significant impact on trade flows in Q2. Nevertheless, it is the essence of global trade that it finds its way to keep flowing, as we will also see in the Express regional development later on. This allows us to continue investing into attractive structural growth opportunities aligned with the priorities outlined in our Strategy 2030. this allows us to continue investing into attractive structural growth opportunities aligned with the priorities outlined in our strategy 2030 More details on both inorganic and organic investments will follow at the end of my presentation. more details on both inorganic and organic investments will follow at the end of my presentation Let me start on page three with some observations on global trade, as I know that this is on everybody's mind these days. let me start on page three with some observations on global trade as i know that this is on everybody's mind these days The graph on the left illustrates the diversification of global trade by destination. the graph on the left illustrates the diversification of global trade by destination The U.S. remains the largest destination market and, as expected, this is the area where we have seen the most significant impact on trade flows in Q2. the u.s remains the largest destination market and as expected this is the area where we have seen the most significant impact on trade flows in q2 Nevertheless, it is the essence of global trade that it finds its way to keep flowing, as we will also see in the Express regional development later on. nevertheless it is the essence of global trade that it finds its way to keep flowing as we will also see in the express regional development later on Our ambition as a most diversified global logistics company is to support our customers in keeping their businesses going and in enabling them to continue leveraging the opportunities from the diversification of global trade also under the current circumstances. Flows have been extremely volatile throughout the second quarter from week to week and across trade lanes. Page four summarizes what this means for our Q2 volumes when we filter out the weekly noise. B2B volumes were eventually slightly lower across modes. However, there was no massive decline nor did we see a fundamental mode shift. E-commerce was a structural trend and continues to drive better momentum in B2C generally, with China-U.S. de minimis being the only market segment where we see a significant impact on trading volumes. Page five highlights how we translated these external conditions into a 6% year-over-year increase in Q2 EBIT for our group. Our ambition as a most diversified global logistics company is to support our customers in keeping their businesses going and in enabling them to continue leveraging the opportunities from the diversification of global trade also under the current circumstances. our ambition as a most diversified global logistics company is to support our customers in keeping their businesses going and in enabling them to continue leveraging the opportunities from the diversification of global trade also under the current circumstances Flows have been extremely volatile throughout the second quarter from week to week and across trade lanes. flows have been extremely volatile throughout the second quarter from week to week and across trade lanes Page four summarizes what this means for our Q2 volumes when we filter out the weekly noise. page four summarizes what this means for our q2 volumes when we filter out the weekly noise B2B volumes were eventually slightly lower across modes. b2b volumes were eventually slightly lower across modes However, there was no massive decline nor did we see a fundamental mode shift. however there was no massive decline nor did we see a fundamental mode shift E-commerce was a structural trend and continues to drive better momentum in B2C generally, with China-U.S. de minimis being the only market segment where we see a significant impact on trading volumes. e-commerce was a structural trend and continues to drive better momentum in b2c generally with china-u.s de minimis being the only market segment where we see a significant impact on trading volumes Page five highlights how we translated these external conditions into a 6% year-over-year increase in Q2 EBIT for our group. page five highlights how we translated these external conditions into a 6% year-over-year increase in q2 ebit for our group Portfolio Express has really excelled in cost flexibility and yield management, delivering the fourth consecutive quarter of EBIT increase despite an underlying volume decline. I will come back to the drivers of this performance in more detail in a minute. As shown in the line at the bottom of the page, we have also started to book first one-off costs related to our Fit for Growth program in the second quarter, impacting Express, DGFF, and eCommerce. This is one reason why DGFF has seen lower EBIT conversion in the quarter, with the extreme volatility and overall weaker demand also dampening GP generation and productivity in the sector. Supply Chain continues to demonstrate a resilient performance with EBIT margin at 7%, and that is after adjusting for the positive net M&A one-off we had in the quarter. Portfolio Express has really excelled in cost flexibility and yield management, delivering the fourth consecutive quarter of EBIT increase despite an underlying volume decline. portfolio express has really excelled in cost flexibility and yield management delivering the fourth consecutive quarter of ebit increase despite an underlying volume decline I will come back to the drivers of this performance in more detail in a minute. i will come back to the drivers of this performance in more detail in a minute As shown in the line at the bottom of the page, we have also started to book first one-off costs related to our Fit for Growth program in the second quarter, impacting Express, DGFF , and eCommerce. as shown in the line at the bottom of the page we have also started to book first one-off costs related to our fit for growth program in the second quarter impacting express dgff and ecommerce This is one reason why DGFF has seen lower EBIT conversion in the quarter, with the extreme volatility and overall weaker demand also dampening GP generation and productivity in the sector. this is one reason why dgff has seen lower ebit conversion in the quarter with the extreme volatility and overall weaker demand also dampening gp generation and productivity in the sector Supply Chain continues to demonstrate a resilient performance with EBIT margin at 7%, and that is after adjusting for the positive net M&A one-off we had in the quarter. supply chain continues to demonstrate a resilient performance with ebit margin at 7% and that is after adjusting for the positive net m&a one-off we had in the quarter E-Commerce booked EUR 8 million cost of change, so was slightly down year-over-year, also excluding these costs but in line with expectations, reflecting, as you know, continued investments into the structural eCommerce trend. Last but certainly not least, in P&P Germany, we are very pleased to see our targeted cost actions based on structural network changes providing the necessary benefits to manage the ongoing structural volume shift from mail to parcel, which we saw as expected continue in the second quarter. The mentioned cost of change and supply chain one-off benefit are summarized in the EBIT Bridge on page six, with positive and negative non-recurring effects roughly balancing out for a positive EUR 4 million net effect in the quarter. E-Commerce booked EUR 8 million cost of change, so was slightly down year-over-year, also excluding these costs but in line with expectations, reflecting, as you know, continued investments into the structural eCommerce trend. e-commerce booked eur 8 million cost of change so was slightly down year-over-year also excluding these costs but in line with expectations reflecting as you know continued investments into the structural ecommerce trend Last but certainly not least, in P&P Germany, we are very pleased to see our targeted cost actions based on structural network changes providing the necessary benefits to manage the ongoing structural volume shift from mail to parcel, which we saw as expected continue in the second quarter. last but certainly not least in p&p germany we are very pleased to see our targeted cost actions based on structural network changes providing the necessary benefits to manage the ongoing structural volume shift from mail to parcel which we saw as expected continue in the second quarter The mentioned cost of change and supply chain one-off benefit are summarized in the EBIT Bridge on page six, with positive and negative non-recurring effects roughly balancing out for a positive EUR 4 million net effect in the quarter. the mentioned cost of change and supply chain one-off benefit are summarized in the ebit bridge on page six with positive and negative non-recurring effects roughly balancing out for a positive eur 4 million net effect in the quarter The positive one-offs relate to M&A, with a small disposal in corporate functions and a larger EUR 3.4 million net positive M&A effect in Supply Chain, where the positive contribution comes from the first-time full consolidation of our ASMO joint venture in Saudi Arabia. We also had a positive free cash flow effect of roughly €100 million in net cash from M&A from ASMO in this quarter. Now it gets technical. This will reverse out, becoming cash flow neutral eventually with no impact on our overall free cash flow generation. However, the current accounting assumption is that the outflow will go through different lines in the cash flow statement, and that technically will lead to a net negative impact of EUR 100 million on the free cash flow excluding M&A view. We will flag that transparently as it unfolds in the remainder of the year. The positive one-offs relate to M&A, with a small disposal in corporate functions and a larger EUR 3.4 million net positive M&A effect in Supply Chain, where the positive contribution comes from the first-time full consolidation of our ASMO joint venture in Saudi Arabia. the positive one-offs relate to m&a with a small disposal in corporate functions and a larger eur 3.4 million net positive m&a effect in supply chain where the positive contribution comes from the first-time full consolidation of our asmo joint venture in saudi arabia We also had a positive free cash flow effect of roughly €100 million in net cash from M&A from ASMO in this quarter. we also had a positive free cash flow effect of roughly €100 million in net cash from m&a from asmo in this quarter Now it gets technical. now it gets technical This will reverse out, becoming cash flow neutral eventually with no impact on our overall free cash flow generation. this will reverse out becoming cash flow neutral eventually with no impact on our overall free cash flow generation However, the current accounting assumption is that the outflow will go through different lines in the cash flow statement, and that technically will lead to a net negative impact of EUR 100 million on the free cash flow excluding M&A view. however the current accounting assumption is that the outflow will go through different lines in the cash flow statement and that technically will lead to a net negative impact of eur 100 million on the free cash flow excluding m&a view We will flag that transparently as it unfolds in the remainder of the year. we will flag that transparently as it unfolds in the remainder of the year The cost of change of EUR 58 million relate to structural cost measures in the three divisions mentioned, but what is important to understand is that not all Fit for Growth measures do require cost of change. To the contrary, we initiated the first Fit for Growth measures last year without any cost of change and we are seeing Fit for Growth benefits clearly supporting our EBIT performance, I would say even better than initially expected, particularly in Express and P&P Germany. On page seven we present some examples of relevant cost KPIs which we are actively steering and tracking for Express, and you can see here that across the network we see really positive declines in all categories, which is a combination of efficient capacity management and structural changes under our Fit for Growth program. The cost of change of EUR 58 million relate to structural cost measures in the three divisions mentioned, but what is important to understand is that not all Fit for Growth measures do require cost of change. the cost of change of eur 58 million relate to structural cost measures in the three divisions mentioned but what is important to understand is that not all fit for growth measures do require cost of change To the contrary, we initiated the first Fit for Growth measures last year without any cost of change and we are seeing Fit for Growth benefits clearly supporting our EBIT performance, I would say even better than initially expected, particularly in Express and P&P Germany. to the contrary we initiated the first fit for growth measures last year without any cost of change and we are seeing fit for growth benefits clearly supporting our ebit performance i would say even better than initially expected particularly in express and p&p germany On page seven we present some examples of relevant cost KPIs which we are actively steering and tracking for Express, and you can see here that across the network we see really positive declines in all categories, which is a combination of efficient capacity management and structural changes under our Fit for Growth program. on page seven we present some examples of relevant cost kpis which we are actively steering and tracking for express and you can see here that across the network we see really positive declines in all categories which is a combination of efficient capacity management and structural changes under our fit for growth program Next to the strong yield management, these cost measures are the primary driver of the increase in Express Q2 EBIT despite the year-over-year volume decline. As we mentioned on page eight, we have significantly reduced our air capacity and related costs beyond the overall 7% reduction which you can see highlighted on this page. Again, we have furthermore flexed capacity across the network to adapt to the volatile regional trade flows. As such, you see on the left side of the page the expected strongest decline in shipments into the U.S. to which we have responded with a significant reduction in airlift and in local pickup and delivery capacity. At the same time, the positive year-over-year developments in APEC and Middle East Africa are noteworthy. Though not sufficient to drive year-over-year growth for total global volume, they demonstrate the high diversification of global trade as discussed earlier. Next to the strong yield management, these cost measures are the primary driver of the increase in Express Q2 EBIT despite the year-over-year volume decline. next to the strong yield management these cost measures are the primary driver of the increase in express q2 ebit despite the year-over-year volume decline As we mentioned on page eight, we have significantly reduced our air capacity and related costs beyond the overall 7% reduction which you can see highlighted on this page. as we mentioned on page eight we have significantly reduced our air capacity and related costs beyond the overall 7% reduction which you can see highlighted on this page Again, we have furthermore flexed capacity across the network to adapt to the volatile regional trade flows. again we have furthermore flexed capacity across the network to adapt to the volatile regional trade flows As such, you see on the left side of the page the expected strongest decline in shipments into the U.S. to which we have responded with a significant reduction in airlift and in local pickup and delivery capacity. as such you see on the left side of the page the expected strongest decline in shipments into the u.s to which we have responded with a significant reduction in airlift and in local pickup and delivery capacity At the same time, the positive year-over-year developments in APEC and Middle East Africa are noteworthy. at the same time the positive year-over-year developments in apec and middle east africa are noteworthy Though not sufficient to drive year-over-year growth for total global volume, they demonstrate the high diversification of global trade as discussed earlier. though not sufficient to drive year-over-year growth for total global volume they demonstrate the high diversification of global trade as discussed earlier Simply put, there are still growth opportunities and growing trade lanes also in the current environment. Looking ahead, we expect this volatility to continue and we also expect a usual seasonal uplift for the peak season and for that reason we are currently preparing the demand surcharge 2025 with similar mechanics as last year and we will announce the details in due course. I have now talked about what we see in terms of the global trade environment, what it means for our volumes and how we cope with it. There is clearly still a lot of uncertainty and volatility, but based on what we know and see at the moment, we are reiterating our guidance today. We maintain a qualification around changes in tariffs on page nine, where we continue to monitor an escalation in tariffs and trade conflicts not covered in our current assumptions. Simply put, there are still growth opportunities and growing trade lanes also in the current environment. simply put there are still growth opportunities and growing trade lanes also in the current environment Looking ahead, we expect this volatility to continue and we also expect a usual seasonal uplift for the peak season and for that reason we are currently preparing the demand surcharge 2025 with similar mechanics as last year and we will announce the details in due course. looking ahead we expect this volatility to continue and we also expect a usual seasonal uplift for the peak season and for that reason we are currently preparing the demand surcharge 2025 with similar mechanics as last year and we will announce the details in due course I have now talked about what we see in terms of the global trade environment, what it means for our volumes and how we cope with it. i have now talked about what we see in terms of the global trade environment what it means for our volumes and how we cope with it There is clearly still a lot of uncertainty and volatility, but based on what we know and see at the moment, we are reiterating our guidance today. there is clearly still a lot of uncertainty and volatility but based on what we know and see at the moment we are reiterating our guidance today We maintain a qualification around changes in tariffs on page nine, where we continue to monitor an escalation in tariffs and trade conflicts not covered in our current assumptions. we maintain a qualification around changes in tariffs on page nine where we continue to monitor an escalation in tariffs and trade conflicts not covered in our current assumptions One of the topics which we are watching here is the de minimis exemption for shipments from rest of world into the U.S. There have been several iterations on that topic in recent months. For example, the discontinuation of the de minimis exemption earlier in the year for four days, after which it was reinstated. As you all know, we had at the beginning of May the abolishment of de minimis from China, Hong Kong into the U.S. There was a new executive order issued on July 30, which brings the timeline for the rest of world phaseout forward to August 29th, compared to a phaseout in 2027 which was foreseen in the tax bill passed just one month ago. Obviously, also quite a dynamic environment with regard to de minimis. One of the topics which we are watching here is the de minimis exemption for shipments from rest of world into the U.S. one of the topics which we are watching here is the de minimis exemption for shipments from rest of world into the u.s There have been several iterations on that topic in recent months. there have been several iterations on that topic in recent months For example, the discontinuation of the de minimis exemption earlier in the year for four days, after which it was reinstated. for example the discontinuation of the de minimis exemption earlier in the year for four days after which it was reinstated As you all know, we had at the beginning of May the abolishment of de minimis from China, Hong Kong into the U.S. as you all know we had at the beginning of may the abolishment of de minimis from china hong kong into the u.s There was a new executive order issued on July 30, which brings the timeline for the rest of world phaseout forward to August 29th, compared to a phaseout in 2027 which was foreseen in the tax bill passed just one month ago. there was a new executive order issued on july 30 which brings the timeline for the rest of world phaseout forward to august 29th compared to a phaseout in 2027 which was foreseen in the tax bill passed just one month ago Obviously, also quite a dynamic environment with regard to de minimis. obviously also quite a dynamic environment with regard to de minimis We will have to see whether the latest executive order from last Wednesday will be implemented as announced and, if yes, what substitution effects will occur. In a worst case scenario, we would see a maximum risk, a maximum risk of up to EUR 200 million on our full year 2025 EBIT. We decided not to include this risk into the guidance as we don't consider this worst case scenario the likely path forward. I want you to be aware of that topic as it is one of the many moving parts. Turning back to a more straightforward topic, I'm particularly pleased to conclude my review with the cash flow perspective. On page 10, we see continued strong cash generation, allowing us to invest in a balanced manner across all priorities of our finance strategy. We will have to see whether the latest executive order from last Wednesday will be implemented as announced and, if yes, what substitution effects will occur. we will have to see whether the latest executive order from last wednesday will be implemented as announced and if yes what substitution effects will occur In a worst case scenario, we would see a maximum risk, a maximum risk of up to EUR 200 million on our full year 2025 EBIT. in a worst case scenario we would see a maximum risk a maximum risk of up to eur 200 million on our full year 2025 ebit We decided not to include this risk into the guidance as we don't consider this worst case scenario the likely path forward. we decided not to include this risk into the guidance as we don't consider this worst case scenario the likely path forward I want you to be aware of that topic as it is one of the many moving parts. i want you to be aware of that topic as it is one of the many moving parts Turning back to a more straightforward topic, I'm particularly pleased to conclude my review with the cash flow perspective. turning back to a more straightforward topic i'm particularly pleased to conclude my review with the cash flow perspective On page 10, we see continued strong cash generation, allowing us to invest in a balanced manner across all priorities of our finance strategy. on page 10 we see continued strong cash generation allowing us to invest in a balanced manner across all priorities of our finance strategy While we remain in strong CapEx control mode given current volume developments, we also continue to invest in targeted opportunities that will drive our mid-term growth path. Focusing on the growth topics identified by Strategy 2030, we have spent EUR 3 billion on shareholder returns in the first half of the year through our dividend payment and ongoing share buyback program. Additionally, we have seized some good opportunities for targeted inorganic growth, leading to a temporary acceleration in M&A announcements and spending, fully aligned with our strategic ambitions. You find the full list of announced acquisitions on page 11, and you see the clear focus on the strategic topics of life science and healthcare, geographic tailwinds, and e-commerce, as well as the confirmation on the right that we pursue M&A not for sheer size or volume, but as a complementary option to enhance our capabilities and market trees. While we remain in strong CapEx control mode given current volume developments, we also continue to invest in targeted opportunities that will drive our mid-term growth path. while we remain in strong capex control mode given current volume developments we also continue to invest in targeted opportunities that will drive our mid-term growth path Focusing on the growth topics identified by Strategy 2030, we have spent EUR 3 billion on shareholder returns in the first half of the year through our dividend payment and ongoing share buyback program. focusing on the growth topics identified by strategy 2030 we have spent eur 3 billion on shareholder returns in the first half of the year through our dividend payment and ongoing share buyback program Additionally, we have seized some good opportunities for targeted inorganic growth, leading to a temporary acceleration in M&A announcements and spending, fully aligned with our strategic ambitions. additionally we have seized some good opportunities for targeted inorganic growth leading to a temporary acceleration in m&a announcements and spending fully aligned with our strategic ambitions You find the full list of announced acquisitions on page 11, and you see the clear focus on the strategic topics of life science and healthcare, geographic tailwinds, and e-commerce, as well as the confirmation on the right that we pursue M&A not for sheer size or volume, but as a complementary option to enhance our capabilities and market trees. you find the full list of announced acquisitions on page 11 and you see the clear focus on the strategic topics of life science and healthcare geographic tailwinds and e-commerce as well as the confirmation on the right that we pursue m&a not for sheer size or volume but as a complementary option to enhance our capabilities and market trees To be clear, organic investment remains the primary driver of our mid-term growth plans. On page 12, we showcase some examples of our ongoing targeted investments into organic growth opportunities driven by the mid-term structural growth topics laid out in our Strategy 2030. To wrap it up, on page 13, the key takeaways from our Q2 performance and current management priorities. Not surprisingly, we are effectively managing short-term volatility through cost and yield actions, and at the same time, we continue to invest into fundamentally attractive structural growth opportunities. Given the environment, we are addressing our cost base both from a shorter-term cyclical capacity angle and through structural cost reduction under our Fit for Growth program. That is what you can quite clearly see in our Q2 numbers. I rush through the presentation to have enough time for your questions, and I now look forward to hearing your questions. Over to you. To be clear, organic investment remains the primary driver of our mid-term growth plans. to be clear organic investment remains the primary driver of our mid-term growth plans On page 12, we showcase some examples of our ongoing targeted investments into organic growth opportunities driven by the mid-term structural growth topics laid out in our Strategy 2030. on page 12 we showcase some examples of our ongoing targeted investments into organic growth opportunities driven by the mid-term structural growth topics laid out in our strategy 2030 To wrap it up, on page 13, the key takeaways from our Q2 performance and current management priorities. to wrap it up on page 13 the key takeaways from our q2 performance and current management priorities Not surprisingly, we are effectively managing short-term volatility through cost and yield actions, and at the same time, we continue to invest into fundamentally attractive structural growth opportunities. not surprisingly we are effectively managing short-term volatility through cost and yield actions and at the same time we continue to invest into fundamentally attractive structural growth opportunities Given the environment, we are addressing our cost base both from a shorter-term cyclical capacity angle and through structural cost reduction under our Fit for Growth program. given the environment we are addressing our cost base both from a shorter-term cyclical capacity angle and through structural cost reduction under our fit for growth program That is what you can quite clearly see in our Q2 numbers. that is what you can quite clearly see in our q2 numbers I rush through the presentation to have enough time for your questions, and I now look forward to hearing your questions. i rush through the presentation to have enough time for your questions and i now look forward to hearing your questions Over to you. over to you

Speaker 11: Ladies and gentlemen .We will now begin our Q&A session. If you have a question, we ask that you please use the raised hand function at the bottom of your Zoom screen. If you have dialed in, please select star nine to raise your hand and six to unmute. Once your name has been announced, please unmute and ask your question. If you want to withdraw your question, please lower your hand using the raise hand function. Thank you. A moment for the first question, please. Our first question comes from Andy Chu with Deutsche Bank. Andy, please unmute your line and ask your question. Ladies and gentlemen . ladies and gentlemen We will now begin our Q&A session. we will now begin our q&a session If you have a question, we ask that you please use the raised hand function at the bottom of your Zoom screen. if you have a question we ask that you please use the raised hand function at the bottom of your zoom screen If you have dialed in, please select star nine to raise your hand and six to unmute. if you have dialed in please select star nine to raise your hand and six to unmute Once your name has been announced, please unmute and ask your question. once your name has been announced please unmute and ask your question If you want to withdraw your question, please lower your hand using the raise hand function. if you want to withdraw your question please lower your hand using the raise hand function Thank you. thank you A moment for the first question, please. a moment for the first question please Our first question comes from Andy Chu with Deutsche Bank. our first question comes from andy chu with deutsche bank Andy, please unmute your line and ask your question. andy please unmute your line and ask your question

Speaker 8: Thank you. Good morning, Melanie. Good morning, Martin. A couple of questions for me please. In terms of the Fit for Growth benefits, could you just give us an idea of and try to quantify those for us? You obviously gave us the cost of change, and then maybe if we could just have a word on current trading. Are you seeing more of the same kind of run rate of growth in the business, sort of 6% at the group level? Is that the run rate that you're seeing year on year, or maybe a view sequentially versus Q2 as we have started Q3? Thank you. Thank you. thank you Good morning, Melanie. good morning melanie Good morning, Martin. good morning martin A couple of questions for me please. a couple of questions for me please In terms of the Fit for Growth benefits, could you just give us an idea of and try to quantify those for us? in terms of the fit for growth benefits could you just give us an idea of and try to quantify those for us You obviously gave us the cost of change, and then maybe if we could just have a word on current trading. you obviously gave us the cost of change and then maybe if we could just have a word on current trading Are you seeing more of the same kind of run rate of growth in the business, sort of 6% at the group level? are you seeing more of the same kind of run rate of growth in the business sort of 6% at the group level Is that the run rate that you're seeing year on year, or maybe a view sequentially versus Q2 as we have started Q3? is that the run rate that you're seeing year on year or maybe a view sequentially versus q2 as we have started q3 Thank you. thank you

Speaker 9: Yeah, morning Andy. Thank you for the question. On the Fit for Growth benefits, we are tracking that quite closely with internal monitoring. I think when you look at the ultimate effects, for me it's not meaningful to break out a specific number because that is also coming together with the general cost management, which we are doing. What I can say is that it's clearly a net positive effect in the quarter. We are seeing bigger benefits than what we had in terms of cost of change in the quarter already. Overall, I'm very pleased with the development. We are really ahead of schedule. You'd see that particularly in Express and P&P Germany, where the team is totally focused on implementing the Fit for Growth measures. On the current trading, what did we see into July, August, beginning of the third quarter? Yeah, morning Andy. yeah morning andy Thank you for the question. thank you for the question On the Fit for Growth benefits, we are tracking that quite closely with internal monitoring. on the fit for growth benefits we are tracking that quite closely with internal monitoring I think when you look at the ultimate effects, for me it's not meaningful to break out a specific number because that is also coming together with the general cost management, which we are doing. i think when you look at the ultimate effects for me it's not meaningful to break out a specific number because that is also coming together with the general cost management which we are doing What I can say is that it's clearly a net positive effect in the quarter. what i can say is that it's clearly a net positive effect in the quarter We are seeing bigger benefits than what we had in terms of cost of change in the quarter already. we are seeing bigger benefits than what we had in terms of cost of change in the quarter already Overall, I'm very pleased with the development. overall i'm very pleased with the development We are really ahead of schedule. we are really ahead of schedule You'd see that particularly in Express and P&P Germany, where the team is totally focused on implementing the Fit for Growth measures. you'd see that particularly in express and p&p germany where the team is totally focused on implementing the fit for growth measures On the current trading, what did we see into July, August, beginning of the third quarter? on the current trading what did we see into july august beginning of the third quarter I think you used the term more of the same and I think that is probably the best description. We haven't seen a significant acceleration in the growth dynamics and it remains very volatile. I think more of the same is a very good summary. I think you used the term more of the same and I think that is probably the best description. i think you used the term more of the same and i think that is probably the best description We haven't seen a significant acceleration in the growth dynamics and it remains very volatile. we haven't seen a significant acceleration in the growth dynamics and it remains very volatile I think more of the same is a very good summary. i think more of the same is a very good summary

Speaker 8: Thank you. Thank you. thank you

Speaker 1: Thanks, Andy. The next caller should be Alexia. Thanks, Andy. thanks andy The next caller should be Alexia. the next caller should be alexia

Speaker 11: Our next question comes from Alexia Dogani with JPMorgan. Alexia, please unmute your line and ask your question. Our next question comes from Alexia Dogani with JPMorgan . our next question comes from alexia dogani with jpmorgan Alexia, please unmute your line and ask your question. alexia please unmute your line and ask your question

Speaker 5: Good morning. Thanks for taking my questions. Melanie, to go back to the Fit for Growth comments you just made that the net positive effect is ahead of the cost of change impact. Should we expect in the coming quarters these numbers to kind of accelerate or should we expect a similar pace of the cost of change and therefore the commensurate net positive impact? If I can just ask related to that, are there any notable areas of the network that you're currently using money that you can quantify and that you're addressing? Good morning. good morning Thanks for taking my questions. thanks for taking my questions Melanie, to go back to the Fit for Growth comments you just made that the net positive effect is ahead of the cost of change impact. melanie to go back to the fit for growth comments you just made that the net positive effect is ahead of the cost of change impact Should we expect in the coming quarters these numbers to kind of accelerate or should we expect a similar pace of the cost of change and therefore the commensurate net positive impact? should we expect in the coming quarters these numbers to kind of accelerate or should we expect a similar pace of the cost of change and therefore the commensurate net positive impact If I can just ask related to that, are there any notable areas of the network that you're currently using money that you can quantify and that you're addressing? if i can just ask related to that are there any notable areas of the network that you're currently using money that you can quantify and that you're addressing That would be helpful. The second question, because I didn't quite, I missed it when you talked about this kind of negative scenario you wanted the market to be aware of. Is that really on the de minimis change or just more broadly on the tariffs? How should we think about it? Is it just for the 2025 EBIT and does it relate with the capture of the demand surcharge in Express, just to understand what to look out for to know whether that $200 million negative happens or not. Thank you. That would be helpful. that would be helpful The second question, because I didn't quite, I missed it when you talked about this kind of negative scenario you wanted the market to be aware of. the second question because i didn't quite i missed it when you talked about this kind of negative scenario you wanted the market to be aware of Is that really on the de minimis change or just more broadly on the tariffs? is that really on the de minimis change or just more broadly on the tariffs How should we think about it? how should we think about it Is it just for the 2025 EBIT and does it relate with the capture of the demand surcharge in Express, just to understand what to look out for to know whether that $200 million negative happens or not. is it just for the 2025 ebit and does it relate with the capture of the demand surcharge in express just to understand what to look out for to know whether that $200 million negative happens or not Thank you. thank you

Speaker 9: Yeah, thank you, Alexia. On the Fit for Growth, we obviously expect the program to accelerate and we do expect that we will see again cost of change bookings in the second quarter. For the full year, we're still in line with the overall cost of change number, so that shouldn't go any higher. We do expect some more cost of change to come in the third quarter and we will flag that transparently as well. In terms of losing money, I think that is a very difficult question in the network and that is not, I assume you're talking about Express, and that is not how we think about it. I would say that we have really managed to make the necessary capacity adjustments on the aviation side. Yeah, thank you, Alexia. yeah thank you alexia On the Fit for Growth, we obviously expect the program to accelerate and we do expect that we will see again cost of change bookings in the second quarter. on the fit for growth we obviously expect the program to accelerate and we do expect that we will see again cost of change bookings in the second quarter For the full year, we're still in line with the overall cost of change number, so that shouldn't go any higher. for the full year we're still in line with the overall cost of change number so that shouldn't go any higher We do expect some more cost of change to come in the third quarter and we will flag that transparently as well. we do expect some more cost of change to come in the third quarter and we will flag that transparently as well In terms of losing money, I think that is a very difficult question in the network and that is not, I assume you're talking about Express, and that is not how we think about it. in terms of losing money i think that is a very difficult question in the network and that is not i assume you're talking about express and that is not how we think about it I would say that we have really managed to make the necessary capacity adjustments on the aviation side. i would say that we have really managed to make the necessary capacity adjustments on the aviation side You also see some numbers on the PUD side where we are also pointing out the significant reduction we made in the U.S. to adjust for the lower volume inflow into the U.S. I think that is really across the network, extremely well managed. To the de minimis topic, as mentioned, this is obviously one of the most volatile topics of the last months where we have seen quite a bit of back and forth. Early July with a new tax bill, it was said that rest of world de minimis would stay in place until summer of 2027. Just four weeks later, we get an executive order which foresees the complete abolishment of de minimis rest of world by August 29th. There are still many moving parts. For example, the whole question of the postal implementation of the de minimis abolishment. You also see some numbers on the PUD side where we are also pointing out the significant reduction we made in the U.S. to adjust for the lower volume inflow into the U.S. you also see some numbers on the pud side where we are also pointing out the significant reduction we made in the u.s to adjust for the lower volume inflow into the u.s I think that is really across the network, extremely well managed. i think that is really across the network extremely well managed To the de minimis topic, as mentioned, this is obviously one of the most volatile topics of the last months where we have seen quite a bit of back and forth. to the de minimis topic as mentioned this is obviously one of the most volatile topics of the last months where we have seen quite a bit of back and forth Early July with a new tax bill, it was said that rest of world de minimis would stay in place until summer of 2027. early july with a new tax bill it was said that rest of world de minimis would stay in place until summer of 2027 Just four weeks later, we get an executive order which foresees the complete abolishment of de minimis rest of world by August 29th . just four weeks later we get an executive order which foresees the complete abolishment of de minimis rest of world by august 29th There are still many moving parts. there are still many moving parts For example, the whole question of the postal implementation of the de minimis abolishment. for example the whole question of the postal implementation of the de minimis abolishment That is why we now have to really watch and see: will it be implemented the way it was announced, what will be the details, what will that mean for trade flow substitution effects, opportunities which could also arise from the whole thing. Being a conservative finance person, I of course pushed my team for, tell me what would be the worst case scenario. It is all implemented August 29 and only the negative stuff comes through. In this worst case, what number would we talk about? That would be for 2025, up to EUR 200 million. I decided to share that number with you openly because I guess you will try to do the same type of worst case calculations. It's again not the likely scenario. That is why we have not included it into the guidance. We just wanted to be as transparent as we can possibly be with all the uncertainty. That is why we now have to really watch and see: will it be implemented the way it was announced, what will be the details, what will that mean for trade flow substitution effects, opportunities which could also arise from the whole thing. that is why we now have to really watch and see will it be implemented the way it was announced what will be the details what will that mean for trade flow substitution effects opportunities which could also arise from the whole thing Being a conservative finance person, I of course pushed my team for, tell me what would be the worst case scenario. being a conservative finance person i of course pushed my team for tell me what would be the worst case scenario It is all implemented August 29 and only the negative stuff comes through. it is all implemented august 29 and only the negative stuff comes through In this worst case, what number would we talk about? in this worst case what number would we talk about That would be for 2025, up to EUR 200 million. that would be for 2025 up to eur 200 million I decided to share that number with you openly because I guess you will try to do the same type of worst case calculations. i decided to share that number with you openly because i guess you will try to do the same type of worst case calculations It's again not the likely scenario. it's again not the likely scenario That is why we have not included it into the guidance. that is why we have not included it into the guidance We just wanted to be as transparent as we can possibly be with all the uncertainty. we just wanted to be as transparent as we can possibly be with all the uncertainty

Speaker 5: Thank you, Melanie, I appreciate that. Can I just check because what is the number you expect for cost of change for the full year? Is that something you've discussed in the past? Thank you, Melanie, I appreciate that. thank you melanie i appreciate that Can I just check because what is the number you expect for cost o f change for the full year? can i just check because what is the number you expect for cost o f change for the full year Is that something you've discussed in the past? is that something you've discussed in the past

Speaker 9: Yeah. We said that it would be kind of like up to $200 million. I think looking at what we have now booked in Q2, I think we will definitely stay within that number. Thank you. Yeah. yeah We said that it would be kind of like up to $200 million. we said that it would be kind of like up to $200 million I think looking at what we have now booked in Q2, I think we will definitely stay within that number. i think looking at what we have now booked in q2 i think we will definitely stay within that number Thank you. thank you

Speaker 11: Our next question will come from Marco Limite with Barclays. Marco, please unmute your line and ask your question. You can please use the unmute button at the bottom of your Zoom screen. Our next question will come from Marco Limite with Barclays. our next question will come from marco limite with barclays Marco, please unmute your line and ask your question. marco please unmute your line and ask your question You can please use the unmute button at the bottom of your Zoom screen. you can please use the unmute button at the bottom of your zoom screen

Speaker 1: Maybe we give Marco a minute and continue with Muneeba. Maybe we give Marco a minute and continue with Muneeba. maybe we give marco a minute and continue with muneeba

Speaker 11: Our next question comes from the line of Muneeba Kayani with Bank of America. Muneeba, please unmute your line and ask your question. Our next question comes from the line of Muneeba Kayani with Bank of America. our next question comes from the line of muneeba kayani with bank of america Muneeba, please unmute your line and ask your question. muneeba please unmute your line and ask your question

Speaker 3: Good morning, Martin and Melanie. Thanks for taking my question. First one, I just wanted to ask around the demand surcharge which you said is in planning. If I remember correctly from last year at this time you'd already, I think, announced it, so what are you waiting for on the demand surcharge at this point? What are discussions with your customers like, and how should we think about it across trade lanes given the big shifts in demand compared to last year that you've just talked about? I think last year it was more on the Asia U.S. trade lane. Any thoughts on that would be super helpful. Just related to Fit for Growth targets, I think you've talked about the cost savings of over $1 billion run-rate by the end of 2026. You've talked about the impact this year. How do we think about it next year, both on the cost of change as well as the benefits aside? Thank you. Good morning, Martin and Melanie. good morning martin and melanie Thanks for taking my question. thanks for taking my question First one, I just wanted to ask around the demand surcharge which you said is in planning. first one i just wanted to ask around the demand surcharge which you said is in planning If I remember correctly from last year at this time you'd already, I think, announced it, so what are you waiting for on the demand surcharge at this point? if i remember correctly from last year at this time you'd already i think announced it so what are you waiting for on the demand surcharge at this point What are discussions with your customers like, and how should we think about it across trade lanes given the big shifts in demand compared to last year that you've just talked about? what are discussions with your customers like and how should we think about it across trade lanes given the big shifts in demand compared to last year that you've just talked about I think last year it was more on the Asia U.S. trade lane. i think last year it was more on the asia u.s trade lane Any thoughts on that would be super helpful. any thoughts on that would be super helpful Just related to Fit for Growth targets, I think you've talked about the cost savings of over $1 billion run-rate by the end of 2026. just related to fit for growth targets i think you've talked about the cost savings of over $1 billion run-rate by the end of 2026 You've talked about the impact this year. you've talked about the impact this year How do we think about it next year, both on the cost of change as well as the benefits aside? how do we think about it next year both on the cost of change as well as the benefits aside Thank you. thank you

Speaker 9: Yeah, thank you Muneeba. On the demand surcharge, you're right. Last year we announced it at the beginning of August and we then already informed our customers about the details. It went into effect September 15. I think we announced it so early last year because it was the first time we ever did it. Now it's more of a hey, this is what we have to do in the peak season. That's one of the reasons why we haven't communicated the details with the customers yet. The second thing is, of course, that it is a very volatile environment out there and the intention of the demand surcharge is to optimally balance the cost of production on the supply side with anticipated demand. Yeah, thank you Muneeba. yeah thank you muneeba On the demand surcharge, you're right. on the demand surcharge you're right Last year we announced it at the beginning of August and we then already informed our customers about the details. last year we announced it at the beginning of august and we then already informed our customers about the details It went into effect September 15. it went into effect september 15 I think we announced it so early last year because it was the first time we ever did it. i think we announced it so early last year because it was the first time we ever did it Now it's more of a hey, this is what we have to do in the peak season. now it's more of a hey this is what we have to do in the peak season That's one of the reasons why we haven't communicated the details with the customers yet. that's one of the reasons why we haven't communicated the details with the customers yet The second thing is, of course, that it is a very volatile environment out there and the intention of the demand surcharge is to optimally balance the cost of production on the supply side with anticipated demand. the second thing is of course that it is a very volatile environment out there and the intention of the demand surcharge is to optimally balance the cost of production on the supply side with anticipated demand We really take some time to work through the details so that we really get it right, including the right demand surcharge per trade lane where, again, as you said, obviously the situation is quite different on the Trans Pacific compared to what it was last year. With regard to Fit for Growth, yes indeed. The intention is to get to a contribution of $1 billion by the end of 2026. That remains unchanged and we do expect that the cost of change part is going to fall more into the current year than into next year. That is why we said at the beginning that the impact is probably just going to be a small net positive for 2025. We really take some time to work through the details so that we really get it right, including the right demand surcharge per trade lane where, again, as you said, obviously the situation is quite different on the Trans Pacific compared to what it was last year. we really take some time to work through the details so that we really get it right including the right demand surcharge per trade lane where again as you said obviously the situation is quite different on the trans pacific compared to what it was last year With regard to Fit for Growth, yes indeed. with regard to fit for growth yes indeed The intention is to get to a contribution of $1 billion by the end of 2026. the intention is to get to a contribution of $1 billion by the end of 2026 That remains unchanged and we do expect that the cost of change part is going to fall more into the current year than into next year. that remains unchanged and we do expect that the cost of change part is going to fall more into the current year than into next year That is why we said at the beginning that the impact is probably just going to be a small net positive for 2025. that is why we said at the beginning that the impact is probably just going to be a small net positive for 2025 Looking at the progress we see, including also progress from measures which do not require cost of change, there will be a positive contribution falling into the overall cost reduction progress which you can see in our numbers and that is, of course, in the current environment also needed to deliver on our overall targets for the year. Looking at the progress we see, including also progress from measures which do not require cost of change, there will be a positive contribution falling into the overall cost reduction progress which you can see in our numbers and that is, of course, in the current environment also needed to deliver on our overall targets for the year. looking at the progress we see including also progress from measures which do not require cost of change there will be a positive contribution falling into the overall cost reduction progress which you can see in our numbers and that is of course in the current environment also needed to deliver on our overall targets for the year

Speaker 1: Muneeba, good for you. Muneeba, good for you. muneeba good for you

Speaker 3: Thank you. Thank you. thank you

Speaker 9: Thank you. Thank you. thank you

Speaker 1: Maybe Marco Limite wants to give it another try. Maybe Marco Limite wants to give it another try. maybe marco limite wants to give it another try

Speaker 11: Our next question comes from Marco Limite with Barclays. Marco, please unmute your line using the black bar at the bottom of your Zoom screen and ask your question. Our next question comes from Marco Limite with Barclays. our next question comes from marco limite with barclays Marco, please unmute your line using the black bar at the bottom of your Zoom screen and ask your question. marco please unmute your line using the black bar at the bottom of your zoom screen and ask your question

Speaker 7: Hi, good morning. Can you hear me now? Hi, good morning. hi good morning Can you hear me now? can you hear me now

Speaker 9: Yes, we can. Good morning. Yes, we can. yes we can Good morning. good morning

Speaker 7: Oh, amazing. Thank you. I apologize for that. I've got a couple of questions. The first question is on your Express volumes where we've seen B2C volumes down 20% now. If we aggregate the volume decline since 2022, eCommerce volumes in Express are down 40%. I'm just wondering if you could give a bit more color of what's happening there. 20% this quarter is a very big number, more than Q1 and the previous quarters. The second question is if you could add any comment about the change in leadership in the freight forwarding business. Clearly, Oscar has done an amazing job in Supply Chain, but why do you think that the know-how and the skill set from supply chain is a good fit also into the FF Freight division? Thank you. Oh, amazing. oh amazing Thank you. I apologize for that. thank you. i apologize for that I've got a couple of questions. i've got a couple of questions The first question is on your Express volumes where we've seen B2C volumes down 20% now. the first question is on your express volumes where we've seen b2c volumes down 20% now If we aggregate the volume decline since 2022, eCommerce volumes in Express are down 40%. if we aggregate the volume decline since 2022 ecommerce volumes in express are down 40% I'm just wondering if you could give a bit more color of what's happening there. 20% this quarter is a very big number, more than Q1 and the previous quarters. i'm just wondering if you could give a bit more color of what's happening there 20% this quarter is a very big number more than q1 and the previous quarters The second question is if you could add any comment about the change in leadership in the freight forwarding business. Clearly, Oscar has done an amazing job in Supply Chain, but why do you think that the know-how and the skill set from supply chain is a good fit also into the FF Freight division? the second question is if you could add any comment about the change in leadership in the freight forwarding business. clearly oscar has done an amazing job in supply chain but why do you think that the know-how and the skill set from supply chain is a good fit also into the ff freight division Thank you. thank you

Speaker 9: Yeah, thank you Marco. On the Express volumes, yes indeed. The -20% in B2C leading then to overall TDI volume decline of 10% in Q2 is a higher number than what we had in previous quarters. We do see the impact of the de minimis exemption abolishment for China, Hong Kong to the U.S. That is also what competitors have talked about, that clearly after May 2nd there has been a significant decline on the Trans Pacific. I think for us the impact of that has been a bit different to competition because we had already beforehand started managing down those volumes because for us they weren't the most profitable volumes. We see a combination of the de minimis exemption impact and regular yield management. With regard to the change in DGFF leadership, yes. Yeah, thank you Marco. yeah thank you marco On the Express volumes, yes indeed. on the express volumes yes indeed The -20% in B2C leading then to overall TDI volume decline of 10% in Q2 is a higher number than what we had in previous quarters. the -20% in b2c leading then to overall tdi volume decline of 10% in q2 is a higher number than what we had in previous quarters We do see the impact of the de minimis exemption abolishment for China, Hong Kong to the U.S. we do see the impact of the de minimis exemption abolishment for china hong kong to the u.s That is also what competitors have talked about, that clearly after May 2nd there has been a significant decline on the Trans Pacific. that is also what competitors have talked about that clearly after may 2nd there has been a significant decline on the trans pacific I think for us the impact of that has been a bit different to competition because we had already beforehand started managing down those volumes because for us they weren't the most profitable volumes. i think for us the impact of that has been a bit different to competition because we had already beforehand started managing down those volumes because for us they weren't the most profitable volumes We see a combination of the de minimis exemption impact and regular yield management. we see a combination of the de minimis exemption impact and regular yield management With regard to the change in DGFF leadership, yes. with regard to the change in dgff leadership yes Tim, who is turning 60 this month, has decided to go into retirement and Oscar is taking over Global Forwarding Freight. On the supply chain side, we have Henrik Venter succeeding Oscar, who has done an amazing job in the supply chain division for 15 years with very good results and progress in the EMEA region over the last years. We really have a strong bench and we're able to easily refill that position. Oscar taking over Global Forwarding, I mean, first of all, when you look at Oscar's CV, he actually started with Nedlloyd, so there is a bit of forwarding history in Oscar's yellow blood. Oscar is also simply a fantastic manager and leader, and together with the strong team in DGFF, we felt that he's the right one to now take DGFF to the next level. Tim, who is turning 60 this month, has decided to go into retirement and Oscar is taking over Global Forwarding Freight. tim who is turning 60 this month has decided to go into retirement and oscar is taking over global forwarding freight On the supply chain side, we have Henrik Venter succeeding Oscar, who has done an amazing job in the supply chain division for 15 years with very good results and progress in the EMEA region over the last years. on the supply chain side we have henrik venter succeeding oscar who has done an amazing job in the supply chain division for 15 years with very good results and progress in the emea region over the last years We really have a strong bench and we're able to easily refill that position. we really have a strong bench and we're able to easily refill that position Oscar taking over Global Forwarding, I mean, first of all, when you look at Oscar's CV, he actually started with Nedlloyd, so there is a bit of forwarding history in Oscar's yellow blood. oscar taking over global forwarding i mean first of all when you look at oscar's cv he actually started with nedlloyd so there is a bit of forwarding history in oscar's yellow blood Oscar is also simply a fantastic manager and leader, and together with the strong team in DGFF, we felt that he's the right one to now take DGFF to the next level. oscar is also simply a fantastic manager and leader and together with the strong team in dgff we felt that he's the right one to now take dgff to the next level

Speaker 7: Thank you. Thank you. thank you

Speaker 11: Our next question will come from Alexander Irving with Bernstein. Alexander, please unmute your line and ask your question. Our next question will come from Alexander Irving with Bernstein. our next question will come from alexander irving with bernstein Alexander, please unmute your line and ask your question. alexander please unmute your line and ask your question

Speaker 10: Good morning, Melanie. Two from me, please. First of all, in freight forwarding, you reported your lowest conversion margin since before the transition to CargoWise. How do you plan to get this from where it currently is up towards a 35% target? Is that yield, is that missing volumes? Is that further cost reduction? Second, maybe a question on supply chain please. The top line broadly flat at constant FX. Should this not be a segment with at least mid single digit top line growth when are we going to get back to those sorts of levels? Thank you. Good morning, Melanie. good morning melanie Two from me, please. two from me please First of all, in freight forwarding, you reported your lowest conversion margin since b efore the transition to CargoWise. first of all in freight forwarding you reported your lowest conversion margin since b efore the transition to cargowise How do you plan to get this from where it currently is up towards a 35% target? how do you plan to get this from where it currently is up towards a 35% target Is that yield, is that missing volumes? is that yield is that missing volumes Is that further cost reduction? is that further cost reduction Second, maybe a question on supply chain please. second maybe a question on supply chain please The top line broadly flat at constant FX. the top line broadly flat at constant fx Should this not be a segment with at least mid single digit top line growth w hen are we going to get b ack to those sorts of levels? should this not be a segment with at least mid single digit top line growth w hen are we going to get b ack to those sorts of levels Thank you. thank you

Speaker 9: Yeah, thank you for the two questions. On the Global Forwarding Freight conversion, yes, clearly that is not at the level where we want it to be. Q2 was overall, in terms of financial performance, not the strongest quarter. I think we also see that generally the market is difficult. Obviously, we also have some internal homework to do. We made progress on the freight side, so that looks already better than in Q1. We booked cost of change in freight. We also booked some cost of change in Global Forwarding Freight. Those are also impacting the conversion rate. What do we have to do to move that into the right direction? Again, I think it's a combination of the two factors you already pointed out. Yeah, thank you for the two questions. On the Global Forwarding Freight conversion, yes, clearly that is not at the level where we want it to be. yeah thank you for the two questions. on the global forwarding freight conversion yes clearly that is not at the level where we want it to be Q2 was overall, in terms of financial performance, not the strongest quarter. q2 was overall in terms of financial performance not the strongest quarter I think we also see that generally the market is difficult. i think we also see that generally the market is difficult Obviously, we also have some internal homework to do. obviously we also have some internal homework to do We made progress on the freight side, so that looks already better than in Q1. we made progress on the freight side so that looks already better than in q1 We booked cost of change in freight. we booked cost of change in freight We also booked some cost of change in Global Forwarding Freight. we also booked some cost of change in global forwarding freight Those are also impacting the conversion rate. those are also impacting the conversion rate What do we have to do to move that into the right direction? what do we have to do to move that into the right direction Again, I think it's a combination of the two factors you already pointed out. again i think it's a combination of the two factors you already pointed out It is yield working on the gross profit side where we also see some of the targeted growth initiatives gaining traction, and of course continued focus on cost and efficiencies with the Fit for Growth component also playing a role in DGFF. On the supply chain growth, that's a very interesting question because supply chain is, in terms of speed of adjusting to a slowdown or an acceleration in the global economy, the slowest of our divisions. You may recall a while ago we had this slide: which division is the most macro dependent, which division reacts the fastest? That's Global Forwarding. Which one is more on the slow side? That's supply chain. What we are now seeing in supply chain is also that things are not super dynamic in the global economy. It is yield working on the gross profit side where we also see some of the targeted growth initiatives gaining traction, and of course continued focus on cost and efficiencies with the Fit for Growth component also playing a role in DGFF . it is yield working on the gross profit side where we also see some of the targeted growth initiatives gaining traction and of course continued focus on cost and efficiencies with the fit for growth component also playing a role in dgff On the supply chain growth, that's a very interesting question because supply chain is, in terms of speed of adjusting to a slowdown or an acceleration in the global economy, the slowest of our divisions. on the supply chain growth that's a very interesting question because supply chain is in terms of speed of adjusting to a slowdown or an acceleration in the global economy the slowest of our divisions You may recall a while ago we had this slide: which division is the most macro dependent, which division reacts the fastest? you may recall a while ago we had this slide which division is the most macro dependent which division reacts the fastest That's Global Forwarding . that's global forwarding Which one is more on the slow side? which one is more on the slow side That's supply chain. that's supply chain What we are now seeing in supply chain is also that things are not super dynamic in the global economy. what we are now seeing in supply chain is also that things are not super dynamic in the global economy You can see that in the throughput volume in our warehouses, in some of our customers, and that is temporarily slowing down the top line growth in supply chain. Over the medium to long term, we still see fantastic growth opportunities for that division. I would say that we are now going through the supply chain cyclical adjustment to what is happening in the world around us. You can see that in the throughput volume in our warehouses, in some of our customers, and that is temporarily slowing down the top line growth in supply chain. you can see that in the throughput volume in our warehouses in some of our customers and that is temporarily slowing down the top line growth in supply chain Over the medium to long term, we still see fantastic growth opportunities for that division. over the medium to long term we still see fantastic growth opportunities for that division I would say that we are now going through the supply chain cyclical adjustment to what is happening in the world around us. i would say that we are now going through the supply chain cyclical adjustment to what is happening in the world around us

Speaker 10: All right, thank you. All right, thank you. all right thank you

Speaker 11: Our next question comes from Patrick Creuset with Goldman Sachs. Patrick, please unmute your line and ask your question. Our next question comes from Patrick Creuset with Goldman Sachs. our next question comes from patrick creuset with goldman sachs Patrick, please unmute your line and ask your question. patrick please unmute your line and ask your question

Speaker 14: To clarify, please. Yes. To clarify, please. to clarify please Yes. yes

Speaker 9: Yeah. Now we can hear you. Yeah. yeah Now we can hear you. now we can hear you

Speaker 1: Start again, please. Start again, please. start again please

Speaker 14: Just two clarifications please on Express. One, just on the $200 million worst case scenario de minimis, can you just share whether you think that's, if it happens, whether that would be down to a direct loss of volume and revenue for you or whether it takes into account largely the indirect, potentially indirect effects on the softer air freight market, therefore lower ACS revenues and that kind of thing. The second, on the surcharges and you're preparing for September, can you roughly give us a sense of the level relative to last year? Should we think about it as last year's level being a best case? If the peak season surcharge was down year on year, is your current expectation that the lower cost base offsets that in the fourth quarter? Basically. Just two clarifications please on Express. just two clarifications please on express One, just on the $200 million worst case scenario de minimis, can you just share whether you think that's, if it happens, whether that would be down to a direct loss of volume and revenue for you or whether it takes into account largely the indirect, potentially indirect effects on the softer air freight market, therefore lower ACS revenues and that kind of thing. one just on the $200 million worst case scenario de minimis can you just share whether you think that's if it happens whether that would be down to a direct loss of volume and revenue for you or whether it takes into account largely the indirect potentially indirect effects on the softer air freight market therefore lower acs revenues and that kind of thing The second, on the surcharges and you're preparing for September, can you roughly give us a sense of the level relative to last year? the second on the surcharges and you're preparing for september can you roughly give us a sense of the level relative to last year Should we think about it as last year's level being a best case? should we think about it as last year's level being a best case If the peak season surcharge was down year on year, is your current expectation that the lower cost base offsets that in the fourth quarter? if the peak season surcharge was down year on year is your current expectation that the lower cost base offsets that in the fourth quarter Basically. basically

Speaker 9: Thank you. Let me start with the second question because I think you basically answered it yourself. Yes, we are given that this is offset for the cost development in the current environment. We probably assume that we will have a lower cost base and hence need a lower cost offset. That would per se lead to a lower income from the demand surcharge. You would see the compensation on the cost side, and that is all factored into our guidance. The reason why we are not announcing the details yet is that it is obviously a quite dynamic environment out there in terms of changes, not in terms of volume dynamic. We really want to get it right and take the time to really per trade lane find the right balance on the de minimis worst case. We run a holistic model for these different scenarios and you can spend all day at the moment doing scenarios. In this worst, worst case scenario, the biggest impact actually comes from the assumed reduction in volume. Thank you. thank you Let me start with the second question because I think you basically answered it yourself. let me start with the second question because i think you basically answered it yourself Yes, we are given that this is offset for the cost development in the current environment. yes we are given that this is offset for the cost development in the current environment We probably assume that we will have a lower cost base and hence need a lower cost offset. we probably assume that we will have a lower cost base and hence need a lower cost offset That would per se lead to a lower income from the demand surcharge. that would per se lead to a lower income from the demand surcharge You would see the compensation on the cost side, and that is all factored into our guidance. you would see the compensation on the cost side and that is all factored into our guidance The reason why we are not announcing the details yet is that it is obviously a quite dynamic environment out there in terms of changes, not in terms of volume dynamic. the reason why we are not announcing the details yet is that it is obviously a quite dynamic environment out there in terms of changes not in terms of volume dynamic We really want to get it right and take the time to really per trade lane find the right balance on the de minimis worst case. we really want to get it right and take the time to really per trade lane find the right balance on the de minimis worst case We run a holistic model for these different scenarios and you can spend all day at the moment doing scenarios. we run a holistic model for these different scenarios and you can spend all day at the moment doing scenarios In this worst, worst case scenario, the biggest impact actually comes from the assumed reduction in volume. in this worst worst case scenario the biggest impact actually comes from the assumed reduction in volume

Speaker 1: All right. All right. all right

Speaker 11: Our next question comes from James Hollins with BNP Paribas. James, please unmute your line and ask your question. Our next question comes from James Hollins with BNP Paribas. our next question comes from james hollins with bnp paribas James, please unmute your line and ask your question. james please unmute your line and ask your question

Speaker 2: Thanks very much. Couple for me please. Just wondering on the, I mean previously you said de minimis from China to U.S. was pretty small for you guys. I don't know exact quote, but that was roughly in line. I was wondering if you could maybe help us with the maths on the B2C shipments down 20% year on year, what that might have been ex de minimis on that channel lane and then Melanie, thanks very much for the $200 million guide on your, very diligent of you on the worst case scenario in de minimis. Wondering if you could take us behind the scenes and maybe quantify your worst case scenario on some of the tariff news we've been having recently from Donald Trump. Thanks very much. Thanks very much. thanks very much Couple for me please. couple for me please Just wondering on the, I mean previously you said de minimis from China to U.S. was pretty small for you guys. just wondering on the i mean previously you said de minimis from china to u.s was pretty small for you guys I don't know exact quote, but that was roughly in line. i don't know exact quote but that was roughly in line I was wondering if you could maybe help us with the maths on the B2C shipments down 20% year on year, what that might have been ex de minimis on that channel lane and then Melanie, thanks very much for the $200 million guide on your, very diligent of you on the worst case scenario in de minimis. i was wondering if you could maybe help us with the maths on the b2c shipments down 20% year on year what that might have been ex de minimis on that channel lane and then melanie thanks very much for the $200 million guide on your very diligent of you on the worst case scenario in de minimis Wondering if you could take us behind the scenes and maybe quantify your worst case scenario on some of the tariff news we've been having recently from Donald Trump. wondering if you could take us behind the scenes and maybe quantify your worst case scenario on some of the tariff news we've been having recently from donald trump Thanks very much. thanks very much

Speaker 9: Okay, I think the second question is a bit impossible to answer because there is so much news flow, right. I mean when you just look at the EU US trade deal where I think as we all know the details are still to be worked out. I think on the positive side you can say that there is some type of clarity coming up. Talking to customers, that is also something they do appreciate very much. Obviously, it will lead to a significantly higher tariff than what was there before, and that should have some impact on transatlantic volumes from Europe into the U.S. There could be some upside specifically on certain sectors from the U.S. into Europe. Okay, I think the second question is a bit impossible to answer because there is so much news flow, right. okay i think the second question is a bit impossible to answer because there is so much news flow right I mean when you just look at the EU US trade deal where I think as we all know the details are still to be worked out. i mean when you just look at the eu us trade deal where i think as we all know the details are still to be worked out I think on the positive side you can say that there is some type of clarity coming up. i think on the positive side you can say that there is some type of clarity coming up Talking to customers, that is also something they do appreciate very much. talking to customers that is also something they do appreciate very much Obviously, it will lead to a significantly higher tariff than what was there before, and that should have some impact on transatlantic volumes from Europe into the U.S. obviously it will lead to a significantly higher tariff than what was there before and that should have some impact on transatlantic volumes from europe into the u.s There could be some upside specifically on certain sectors from the U.S. into Europe. there could be some upside specifically on certain sectors from the u.s into europe I think we have, like with so many topics now, really to work through the details and really see also how this is then implemented in detail because for us, being the ones who are doing the customs clearance, the devil is really in the detail. There are still lots of question marks around the recent announcements with regard to de minimis B2C -20%. The -20% in B2C volume in Express in the second quarter is impacted by the de minimis abolishment China, Hong Kong to the U.S. We clearly have seen in May, June an acceleration, a significant acceleration in the decline in volumes on that trade lane. What I had alluded to beforehand was that we had already done quite a lot of action on the pricing side before that. We had already seen declining volumes before. Obviously, there has been a significant impact and that is also visible in the -20% B2C volume decline in Q2 overall. I think we have, like with so many topics now, really to work through the details and really see also how this is then implemented in detail because for us, being the ones who are doing the customs clearance, the devil is really in the detail. i think we have like with so many topics now really to work through the details and really see also how this is then implemented in detail because for us being the ones who are doing the customs clearance the devil is really in the detail There are still lots of question marks around the recent announcements with regard to de minimis B2C -20%. there are still lots of question marks around the recent announcements with regard to de minimis b2c -20% The -20% in B2C volume in Express in the second quarter is impacted by the de minimis abolishment China, Hong Kong to the U.S. the -20% in b2c volume in express in the second quarter is impacted by the de minimis abolishment china hong kong to the u.s We clearly have seen in May, June an acceleration, a significant acceleration in the decline in volumes on that trade lane. we clearly have seen in may june an acceleration a significant acceleration in the decline in volumes on that trade lane What I had alluded to beforehand was that we had already done quite a lot of action on the pricing side before that. what i had alluded to beforehand was that we had already done quite a lot of action on the pricing side before that We had already seen declining volumes before. we had already seen declining volumes before Obviously, there has been a significant impact and that is also visible in the -20% B2C volume decline in Q2 overall. obviously there has been a significant impact and that is also visible in the -20% b2c volume decline in q2 overall

Speaker 14: Okay, thank you. Okay, thank you. okay thank you

Speaker 1: Thanks Patrick. Thanks Patrick. thanks patrick

Speaker 11: Our next question comes from Paresh Jain with HSBC. Paresh, please unmute your audio and ask your question. Our next question comes from Paresh Jain with HSBC. our next question comes from paresh jain with hsbc Paresh, please unmute your audio and ask your question. paresh please unmute your audio and ask your question

Speaker 15: Hi, thanks for taking my questions. I have two. If Melanie can talk about any qualitative color on how has been the start of third quarter, especially amidst tariff on tariff off scenario. Secondly, if you can talk about some of the tools that Express business have to deal with the extreme volatility in freight volume, I mean how easy or difficult it will be to take the cost out, and will it come in the form of return of aircrafts, or will it come from getting rid of some of your older fleet. Any color on that will be helpful. Thank you. Hi, thanks for taking my questions. hi thanks for taking my questions I have two. i have two If Melanie can talk about any qualitative color on how has been the start of third quarter, especially amidst tariff on tariff off scenario. if melanie can talk about any qualitative color on how has been the start of third quarter especially amidst tariff on tariff off scenario Secondly, if you can talk about some of the tools that Express business h ave t o deal with the extreme volatility in freight volume, I mean how easy or difficult it will be to take the cost out, and will it come in the form of return of aircrafts, or will it come from getting rid of some of your older fleet. secondly if you can talk about some of the tools that express business h ave t o deal with the extreme volatility in freight volume i mean how easy or difficult it will be to take the cost out and will it come in the form of return of aircrafts or will it come from getting rid of some of your older fleet Any color on that will be helpful. any color on that will be helpful Thank you. thank you

Speaker 9: Thank you for the two questions. Maybe on the first one, start of Q3, I really think I said before the best description for me is it's more of the same. We don't see a significant change in volume dynamic. We see a continuation of this very pronounced volatility, which of course makes planning in network businesses like ours quite demanding. Against that background, I'm even more pleased with the ultimate result for Q2. Also now in the third quarter, we stay extremely focused on constantly adjusting the network to the volume development and driving forward our cost measures. Thank you for the two questions. thank you for the two questions Maybe on the first one, start of Q3, I really think I said before the best description for me is it's more of the same. maybe on the first one start of q3 i really think i said before the best description for me is it's more of the same We don't see a significant change in volume dynamic. we don't see a significant change in volume dynamic We see a continuation of this very pronounced volatility, which of course makes planning in network businesses like ours quite demanding. we see a continuation of this very pronounced volatility which of course makes planning in network businesses like ours quite demanding Against that background, I'm even more pleased with the ultimate result for Q2. against that background i'm even more pleased with the ultimate result for q2 Also now in the third quarter, we stay extremely focused on constantly adjusting the network to the volume development and driving forward our cost measures. also now in the third quarter we stay extremely focused on constantly adjusting the network to the volume development and driving forward our cost measures With regard to what tools do we have in Express to flex on the aviation side, I think what we are now seeing, for example, in the 7% capacity reduction in Q2 is the benefit of our aviation setup where we have this very good combination of own aircraft, long-term leases, medium-term leases, short-term leases, which allows us to really flex the capacity. That in combination with a lot of rejigging, moving aircraft from the less busy routes to the busier routes, that is what we have successfully used in Q2, taking us to the 7% capacity adjustment. That is also the opportunity we have going forward. I think also very importantly, when volumes come back, that will allow us also to flex back up. With regard to what tools do we have in Express to flex on the aviation side, I think what we are now seeing, for example, in the 7% capacity reduction in Q2 is the benefit of our aviation setup where we have this very good combination of own aircraft, long-term leases, medium-term leases, short-term leases, which allows us to really flex the capacity. with regard to what tools do we have in express to flex on the aviation side i think what we are now seeing for example in the 7% capacity reduction in q2 is the benefit of our aviation setup where we have this very good combination of own aircraft long-term leases medium-term leases short-term leases which allows us to really flex the capacity That in combination with a lot of rejigging, moving aircraft from the less busy routes to the busier routes, that is what we have successfully used in Q2, taking us to the 7% capacity adjustment. that in combination with a lot of rejigging moving aircraft from the less busy routes to the busier routes that is what we have successfully used in q2 taking us to the 7% capacity adjustment That is also the opportunity we have going forward. that is also the opportunity we have going forward I think also very importantly, when volumes come back, that will allow us also to flex back up. i think also very importantly when volumes come back that will allow us also to flex back up

Speaker 15: Lovely. Maybe one quick question if I can add up, now that the Division acquisition has been completed, are there any early signs of movement among the key customers? Are you seeing any pockets where DHL's Freight business can grab some market share? Lovely. lovely Maybe one quick question if I can add up, now that the Division acquisition has been completed, are there any early signs of movement among the key customers? maybe one quick question if i can add up now that the division acquisition has been completed are there any early signs of movement among the key customers Are you seeing any pockets where DHL's Freight business can grab some market share? are you seeing any pockets where dhl's freight business can grab some market share

Speaker 9: Yeah, we think that the opportunity is out there, but I think in the current environment we do see in our customer portfolio, but also in the customer portfolio of competitors, a higher reluctance to change. Many tenders are being pushed out, which would be natural opportunities to switch because customers are delaying decisions. We do think that there are opportunities coming from the merger, but we see an impact on the speed from the current environment. Yeah, we think that the opportunity is out there, but I think in the current environment we do see in our customer portfolio, but also in the customer portfolio of competitors, a higher reluctance to change. yeah we think that the opportunity is out there but i think in the current environment we do see in our customer portfolio but also in the customer portfolio of competitors a higher reluctance to change Many tenders are being pushed out, which would be natural opportunities to switch because customers are delaying decisions. many tenders are being pushed out which would be natural opportunities to switch because customers are delaying decisions We do think that there are opportunities coming from the merger, but we see an impact on the speed from the current environment. we do think that there are opportunities coming from the merger but we see an impact on the speed from the current environment

Speaker 15: Lovely, thank you and have a great day. Lovely, thank you and have a great day. lovely thank you and have a great day

Speaker 9: Thank you, you too. Thank you, you too. thank you you too

Speaker 11: Our next question comes from Cedar Ekblom with Morgan Stanley. Cedar, please unmute your audio and ask your question. Our next question comes from Cedar Ekblom with Morgan Stanley. our next question comes from cedar ekblom with morgan stanley Cedar, please unmute your audio and ask your question. cedar please unmute your audio and ask your question

Speaker 12: Thanks. Hi Melanie, I just had a follow-up question on these points around de minimis. My understanding was that de minimis was quite a small part of what the Express business was doing. I understand the $200 million that you've given is for the group overall in terms of risks in the second half, but I would expect that a lot of that would be in that Express division, particularly because you talk about B2C volumes being down 20% and that being a lot linked to China de minimis. If I look at that $200 million and I say that that's only for four months of the year, it actually works out to be quite a large percentage of your Express profitability. I'd just like to understand your comments around de minimis not being so big for your group, but then those numbers actually implying that it's quite large. Thanks. thanks Hi Melanie, I just had a follow-up question on these points around de minimis. hi melanie i just had a follow-up question on these points around de minimis My understanding was that de minimis was quite a small part of what the Express business was doing. my understanding was that de minimis was quite a small part of what the express business was doing I understand the $200 million that you've given is for the group overall in terms of risks in the second half, but I would expect that a lot of that would be in that Express division, particularly because you talk about B2C volumes being down 20% and that being a lot linked to China de minimis. i understand the $200 million that you've given is for the group overall in terms of risks in the second half but i would expect that a lot of that would be in that express division particularly because you talk about b2c volumes being down 20% and that being a lot linked to china de minimis If I look at that $200 million and I say that that's only for four months of the year, it actually works out to be quite a large percentage of your Express profitability. if i look at that $200 million and i say that that's only for four months of the year it actually works out to be quite a large percentage of your express profitability I'd just like to understand your comments around de minimis not being so big for your group, but then those numbers actually implying that it's quite large. i'd just like to understand your comments around de minimis not being so big for your group but then those numbers actually implying that it's quite large Just on margins in B2C and B2B, my understanding as well has been in the past that you haven't necessarily seen a meaningful difference in profitability between those two product groups. B2C volumes were down a lot more than B2B and I know that you've put cost initiatives in place, etc., but the margin was actually really strong. Can you just talk about B2B and B2C and if we really do need to think about different levels of profitability for those two product categories, because that's got implications for how we think about the potential margin recovery when B2B volumes come back. Thank you. Just on margins in B2C and B2B, my understanding as well has been in the past that you haven't necessarily seen a meaningful difference in profitability between those two product groups. just on margins in b2c and b2b my understanding as well has been in the past that you haven't necessarily seen a meaningful difference in profitability between those two product groups B2C volumes were down a lot more than B2B and I know that you've put cost initiatives in place, etc., but the margin was actually really strong. b2c volumes were down a lot more than b2b and i know that you've put cost initiatives in place etc but the margin was actually really strong Can you just talk about B2B and B2C and if we really do need to think about different levels of profitability for those two product categories, because that's got implications for how we think about the potential margin recovery when B2B volumes come back. can you just talk about b2b and b2c and if we really do need to think about different levels of profitability for those two product categories because that's got implications for how we think about the potential margin recovery when b2b volumes come back Thank you. thank you

Speaker 9: Thank you, Cedar. On the first question, there is obviously quite a lot of dynamic now on the whole de minimis. As I said before, with the new tax law which was just passed by Congress in the early days of July, everybody assumed that it would now be in place until July 27. On July 30, there is an announcement that it will now be gone completely by August 29. Of course, all these changes take some time to really settle in, and that is why you also see a bigger impact at the beginning than in a steady state. Customers are, of course, working on solutions. Thank you, Cedar. thank you cedar On the first question, there is obviously quite a lot of dynamic now on the whole de minimis. on the first question there is obviously quite a lot of dynamic now on the whole de minimis As I said before, with the new tax law which was just passed by Congress in the early days of July, everybody assumed that it would now be in place until July 27. as i said before with the new tax law which was just passed by congress in the early days of july everybody assumed that it would now be in place until july 27 On July 30, there is an announcement that it will now be gone completely by August 29. on july 30 there is an announcement that it will now be gone completely by august 29 Of course, all these changes take some time to really settle in, and that is why you also see a bigger impact at the beginning than in a steady state. of course all these changes take some time to really settle in and that is why you also see a bigger impact at the beginning than in a steady state Customers are, of course, working on solutions. customers are of course working on solutions That is why I don't think you can extrapolate from a worst case 25 number for what that means going forward in terms of, and just to be correct, the number which we have given is kind of like a worst case number for the group overall. Obviously, the biggest impact would be Express with regard to the margin question, B2B, B2C. What can you kind of like derive from the Q2 numbers? I think the important element in here is that the Trans Pacific trade lane in terms of profitability is very different. Different for us and also different between us and competition, for competition. That has obviously been one of the most important and most profitable trade lanes for us. Due to our distant third position in the U.S., the economics have been very different. That is why I don't think you can extrapolate from a worst case 25 number for what that means going forward in terms of, and just to be correct, the number which we have given is kind of like a worst case number for the group overall. that is why i don't think you can extrapolate from a worst case 25 number for what that means going forward in terms of and just to be correct the number which we have given is kind of like a worst case number for the group overall Obviously, the biggest impact would be Express with regard to the margin question, B2B, B2C. obviously the biggest impact would be express with regard to the margin question b2b b2c What can you kind of like derive from the Q2 numbers? what can you kind of like derive from the q2 numbers I think the important element in here is that the Trans Pacific trade lane in terms of profitability is very different. i think the important element in here is that the trans pacific trade lane in terms of profitability is very different Different for us and also different between us and competition, for competition. different for us and also different between us and competition for competition That has obviously been one of the most important and most profitable trade lanes for us. that has obviously been one of the most important and most profitable trade lanes for us Due to our distant third position in the U.S., the economics have been very different. due to our distant third position in the u.s the economics have been very different That is also why for more than a year we have now talked about pricing out B2C volume on the Trans Pacific because we didn't get the best margin contribution from that business. That is the reason why this B2C volume decline in Q2 looks as if we are losing B2C volume with a poor profitability overall for the network. That is something we have been obsessed about ever since the beginning of B2C. We do make sure that there is also a good profitability and margin contribution from B2C to the Express network. That is also why for more than a year we have now talked about pricing out B2C volume on the Trans Pacific because we didn't get the best margin contribution from that business. that is also why for more than a year we have now talked about pricing out b2c volume on the trans pacific because we didn't get the best margin contribution from that business That is the reason why this B2C volume decline in Q2 looks as if we are losing B2C volume with a poor profitability overall for the network. that is the reason why this b2c volume decline in q2 looks as if we are losing b2c volume with a poor profitability overall for the network That is something we have been obsessed about ever since the beginning of B2C. that is something we have been obsessed about ever since the beginning of b2c We do make sure that there is also a good profitability and margin contribution from B2C to the Express network. we do make sure that there is also a good profitability and margin contribution from b2c to the express network

Speaker 12: Okay, can I just have one follow-up please just on this de minimis topic. If it's a worst case scenario of a EUR 200 million cost from the end of August this year, how do we think about what the cost, the incremental cost would be for 2026 in a worst case scenario? Do we just double that EUR 200 million, or do we need to think about the seasonal cost being very much weighted into the last quarter of the year, and so actually the incremental cost into 2026 would be much less, maybe anther EUR 100 million incremental or something like that? Okay, can I just have one follow-up please just on this de minimis topic. okay can i just have one follow-up please just on this de minimis topic If it's a worst case scenario of a EUR 200 million cost from the end of August this year, how do we think about what the cost, the incremental cost would be for 2026 in a worst case scenario? if it's a worst case scenario of a eur 200 million cost from the end of august this year how do we think about what the cost the incremental cost would be for 2026 in a worst case scenario Do we just double that EUR 200 million, or do we need to think about the seasonal cost being very much weighted into the last quarter of the year, and so actually the incremental cost into 2026 would be much less, maybe anther EUR 100 million incremental or something like that? do we just double that eur 200 million or do we need to think about the seasonal cost being very much weighted into the last quarter of the year and so actually the incremental cost into 2026 would be much less maybe anther eur 100 million incremental or something like that

Speaker 9: There are so many moving parts at the moment. We have now tried to give you a feeling for the overall impact, not on cost, but the overall EBIT impact in absolute worst case for 2025. Of course, if that scenario, which again we do not think is a likely scenario, should materialize, we would take further cost actions. We would make further adjustments. That extrapolation to 2026 on that basis is really not possible. We will then have to reassess how we set up the operations for 2026. That was just to give you a bit of a sensitivity for a worst case in relation to our 2025 guidance. There are so many moving parts at the moment. there are so many moving parts at the moment We have now tried to give you a feeling for the overall impact, not on cost, but the overall EBIT impact in absolute worst case for 2025. we have now tried to give you a feeling for the overall impact not on cost but the overall ebit impact in absolute worst case for 2025 Of course, if that scenario, which again we do not think is a likely scenario, should materialize, we would take further cost actions. of course if that scenario which again we do not think is a likely scenario should materialize we would take further cost actions We would make further adjustments. we would make further adjustments That extrapolation to 2026 on that basis is really not possible. that extrapolation to 2026 on that basis is really not possible We will then have to reassess how we set up the operations for 2026. we will then have to reassess how we set up the operations for 2026 That was just to give you a bit of a sensitivity for a worst case in relation to our 2025 guidance. that was just to give you a bit of a sensitivity for a worst case in relation to our 2025 guidance

Speaker 12: Okay, thanks so much. Appreciate the help. Okay, thanks so much. okay thanks so much Appreciate the help. appreciate the help

Speaker 9: Thank you. Thank you. thank you

Speaker 11: Our next question comes from Cristian Nedelcu with UBS. Cristian, please unmute your line and ask your question. Cristian. Our next question comes from Cristian Nedelcu with UBS. our next question comes from cristian nedelcu with ubs Cristian, please unmute your line and ask your question. cristian please unmute your line and ask your question Cristian. cristian

Speaker 9: We can't hear you. We can't hear you. we can't hear you

Speaker 11: Cristian, you may unmute your line by using star six. Our next question comes from Marc Zeck with Kepler Cheuvreux. Marc, please unmute your line and ask your question. Cristian, you may unmute your line by using star six. cristian you may unmute your line by using star six Our next question comes from Marc Zeck with Kepler Cheuvreux. our next question comes from marc zeck with kepler cheuvreux Marc, please unmute your line and ask your question. marc please unmute your line and ask your question

Speaker 4: Good morning, can you hear me? Good morning, can you hear me? good morning can you hear me

Speaker 9: Yes, we can. Morning. Yes, we can. yes we can Morning. morning

Speaker 4: That is great. Just a small clarification regarding de minimis and relation to that, the demand surcharge. Would that worst case $200 million already assume that in that case you wouldn't do a demand surcharge for the fourth quarter, or is that kind of a worst case scenario, possible worst, like the -$200 million from the de minimis impact, and that then due to lower volume as such you wouldn't do a demand surcharge? And that's actually. That is great. that is great Just a small clarification regarding de minimis and relation to that, the demand surcharge. just a small clarification regarding de minimis and relation to that the demand surcharge Would that worst case $200 million already assume that in that case you wouldn't do a demand surcharge for the fourth quarter, or is that kind of a worst case scenario, possible worst, like the -$200 million from the de minimis impact, and that then due to lower volume as such you wouldn't do a demand surcharge? would that worst case $200 million already assume that in that case you wouldn't do a demand surcharge for the fourth quarter or is that kind of a worst case scenario possible worst like the -$200 million from the de minimis impact and that then due to lower volume as such you wouldn't do a demand surcharge And that's actually. and that's actually

Speaker 9: Thank you. In this world of scenario modeling, we do try to come to holistic scenarios. That is why we are trying to factor in all elements. That is really the all-inclusive first case number we would see. Thank you. thank you In this world of scenario modeling, we do try to come to holistic scenarios. in this world of scenario modeling we do try to come to holistic scenarios That is why we are trying to factor in all elements. that is why we are trying to factor in all elements That is really the all-inclusive first case number we would see. that is really the all-inclusive first case number we would see

Speaker 4: Thank you. Thank you. thank you

Speaker 11: Our next question comes from the line of Cristian Nedelcu with UBS. Cristian, please use Star 6 on your handset to unmute. Our next question comes from the line of Cristian Nedelcu with UBS. our next question comes from the line of cristian nedelcu with ubs Cristian, please use Star 6 on your handset to unmute. cristian please use star 6 on your handset to unmute

Speaker 13: Hi, can you hear me? Hi, can you hear me? hi can you hear me

Speaker 9: Yes, we can. Morning. Yes, we can. yes we can Morning. morning

Speaker 13: Thank you very much for taking my question. Just maybe a couple left, just a conceptual one. I think your revenues in the quarter, excluding effects, were down 1% or something like that, year-over-year. You're seeing more of the same going forward. The structural cost cutting from Fit for Growth is not really meaningfully offsetting that revenue drop. It does seem to me that it is your cyclical cost cutting that is actually helping you have a resilient EBIT for the next couple of quarters at least. My question is when volumes start to recover, is it fair to assume that the operating leverage benefit to the EBIT will be less pronounced than historically because you'll have a lot of the cyclical cost that you have to reactivate? That's maybe just a conceptual directional question about the midterm. The second one on Express. Thank you very much for taking my question. thank you very much for taking my question Just maybe a couple left, just a conceptual one. just maybe a couple left just a conceptual one I think your revenues in the quarter, excluding effects, were down 1% or something like that, year- over- year. i think your revenues in the quarter excluding effects were down 1% or something like that year- over- year You're seeing more of the same going forward. you're seeing more of the same going forward The structural cost cutting from Fit for Growth is not really meaningfully offsetting that revenue drop. the structural cost cutting from fit for growth is not really meaningfully offsetting that revenue drop It does seem to me that it is your cyclical cost cutting that is actually helping you have a resilient EBIT for the next couple of quarters at least. it does seem to me that it is your cyclical cost cutting that is actually helping you have a resilient ebit for the next couple of quarters at least My question is when volumes start to recover, is it fair to assume that the operating leverage benefit to the EBIT will be less pronounced than historically because you'll have a lot of the cyclical cost that you have to reactivate? my question is when volumes start to recover is it fair to assume that the operating leverage benefit to the ebit will be less pronounced than historically because you'll have a lot of the cyclical cost that you have to reactivate That's maybe just a conceptual directional question about the midterm. that's maybe just a conceptual directional question about the midterm The second one on Express. the second one on express Historically, the Q3 EBIT is weaker due to seasonality versus Q2. I think last year was the exception because you started doing in a more meaningful way capacity reductions and you've been addressing the cost. I was just wondering if you can help us a bit, how should we think at the seasonal development this year in Express in Q3? I'll probably be there, but thank you very much. Historically, the Q3 EBIT is weaker due to seasonality versus Q2. historically the q3 ebit is weaker due to seasonality versus q2 I think last year was the exception because you started doing in a more meaningful way capacity reductions and you've been addressing the cost. i think last year was the exception because you started doing in a more meaningful way capacity reductions and you've been addressing the cost I was just wondering if you can help us a bit, how should we think at the seasonal development this year in Express in Q3? i was just wondering if you can help us a bit how should we think at the seasonal development this year in express in q3 I'll probably be there, but thank you very much. i'll probably be there but thank you very much

Speaker 9: Thank you. I think first of all on the operating leverage, what we are seeing at the moment on the cost side is a combination of the cyclical capacity adjustments to the volume and the increasing benefits of Fit for Growth. Yes, when volumes come back, we will also increase over time capacity. What we have traditionally seen is that this is quite a sweet spot period, where volume then tend to come back quicker than we add capacity, giving us good operating leverage. That is also what I would assume for whenever volume comes back going forward. On the seasonality, yes, Q3, as you rightly point out, is not the strongest quarter for Express. That is also now for second half of 2025. Thank you. thank you I think first of all on the operating leverage, what we are seeing at the moment on the cost side is a combination of the cyclical capacity adjustments to the volume and the increasing benefits of Fit for Growth. i think first of all on the operating leverage what we are seeing at the moment on the cost side is a combination of the cyclical capacity adjustments to the volume and the increasing benefits of fit for growth Yes, when volumes come back, we will also increase over time capacity. yes when volumes come back we will also increase over time capacity What we have traditionally seen is that this is quite a sweet spot period, where volume then tend to come back quicker than we add capacity, giving us good operating leverage. what we have traditionally seen is that this is quite a sweet spot period where volume then tend to come back quicker than we add capacity giving us good operating leverage That is also what I would assume for whenever volume comes back going forward. that is also what i would assume for whenever volume comes back going forward On the seasonality, yes, Q3, as you rightly point out, is not the strongest quarter for Express. on the seasonality yes q3 as you rightly point out is not the strongest quarter for express That is also now for second half of 2025. that is also now for second half of 2025

Speaker 13: Thank you very much. Thank you very much. thank you very much

Speaker 11: Our last question will come from Arthur Truslove with Citi. Arthur, please unmute your line and ask your question. Our last question will come from Arthur Truslove with Citi. our last question will come from arthur truslove with citi Arthur, please unmute your line and ask your question. arthur please unmute your line and ask your question

Speaker 6: Can you hear me okay? Can you hear me okay? can you hear me okay

Speaker 9: Yes, good morning. We can. Yes, good morning. yes good morning We can. we can

Speaker 6: Good morning. Thank you very much. There was a couple from me. Just looking at the cash flow statement, you had what looks like a profit on disposal of non-current assets, around EUR 17 million. I just wanted to confirm if that was stripped out from normalized profits or not. Also within there, I can see that the provision movement is negative from a cash flow perspective, but I just wondered if there was anything in the P&L for that. Moving to the fundamentals of the business, obviously the volume trends in Express have been soggy for some time. What things are you tracking to give yourselves an idea of when that volume rebound might finally take place? Thank you. Good morning. good morning Thank you very much. thank you very much There was a couple from me. there was a couple from me Just looking at the cash flow statement, you had what looks like a profit on disposal of non-current assets, around EUR 17 million. just looking at the cash flow statement you had what looks like a profit on disposal of non-current assets around eur 17 million I just wanted to confirm if that was stripped out from normalized profits or not. i just wanted to confirm if that was stripped out from normalized profits or not Also within there, I can see that the provision movement is negative from a cash flow perspective, but I just wondered if there was anything in the P&L for that. also within there i can see that the provision movement is negative from a cash flow perspective but i just wondered if there was anything in the p&l for that Moving to the fundamentals of the business, obviously the volume trends in Express have been soggy for some time. moving to the fundamentals of the business obviously the volume trends in express have been soggy for some time What things are you tracking to give yourselves an idea of when that volume rebound might finally take place? what things are you tracking to give yourselves an idea of when that volume rebound might finally take place Thank you. thank you

Speaker 9: Yeah, on the cash flow statement, I have to see whether I got your questions correctly. We had, I think, $95 million in changes in provisions. For example, some of the cost of change which we booked as provisions was coming up very quickly. We had some provisions which we were using for the cost of change. I would say this is more of the usual stuff. Last Q2—no, sorry, I'm still looking at Q1. Sorry, apologies. Changes in provision was -$50 million in Q2, -$95 million in Q1. We have a lot of usual stuff going through there, personnel provisions, and I don't have anything I would point out here as extraordinary. I think overall, really the cash flow, apart from the M&A line, the $253 million in net cash from acquisitions, divestments, is really very unspectacular and uneventful. Nothing to be seen there. The second question. Yeah, on the cash flow statement, I have to see whether I got your questions correctly. yeah on the cash flow statement i have to see whether i got your questions correctly We had, I think, $95 million in changes in provisions. we had i think $95 million in changes in provisions For example, some of the cost of change which we booked as provisions was coming up very quickly. for example some of the cost of change which we booked as provisions was coming up very quickly We had some provisions which we were using for the cost of change. we had some provisions which we were using for the cost of change I would say this is more of the usual stuff. i would say this is more of the usual stuff Last Q2—no, sorry, I'm still looking at Q1. last q2—no sorry i'm still looking at q1 Sorry, apologies. sorry apologies Changes in provision was -$50 million in Q2, - $95 million in Q1. changes in provision was -$50 million in q2 - $95 million in q1 We have a lot of usual stuff going through there, personnel provisions, and I don't have anything I would point out here as extraordinary. we have a lot of usual stuff going through there personnel provisions and i don't have anything i would point out here as extraordinary I think overall, really the cash flow, apart from the M&A line, the $253 million in net cash from acquisitions, divestments, is really very unspectacular and uneventful. i think overall really the cash flow apart from the m&a line the $253 million in net cash from acquisitions divestments is really very unspectacular and uneventful Nothing to be seen there. nothing to be seen there The second question. the second question

Speaker 1: I think it reminds us of the second question that you had. I think it reminds us of the second question that you had. i think it reminds us of the second question that you had

Speaker 6: Yeah, what are you sort of watching? What things are you looking for to give you an idea of when things are going to come back. Yeah, what are you sort of watching? yeah what are you sort of watching What things are you looking for to give you an idea of when things are going to come back. what things are you looking for to give you an idea of when things are going to come back

Speaker 9: Yeah, I mean, we have our daily volume trackers, and as I said before, it has been super volatile also from week to week, which is something which I haven't seen in that magnitude before. It is very hard to see any types of patterns at this point in time. Of course, we are looking at daily volumes in Express, daily volumes in the parcel networks, and turnover we see in the supply chain warehouses. As I said before, when we now look at what we see in the beginning of the third quarter, it's more of the same and not a fundamental change in patterns. Yeah, I mean, we have our daily volume trackers, and as I said before, it has been super volatile also from week to week, which is something which I haven't seen in that magnitude before. yeah i mean we have our daily volume trackers and as i said before it has been super volatile also from week to week which is something which i haven't seen in that magnitude before It is very hard to see any types of patterns at this point in time. it is very hard to see any types of patterns at this point in time Of course, we are looking at daily volumes in Express, daily volumes in the parcel networks, and turnover we see in the supply chain warehouses. of course we are looking at daily volumes in express daily volumes in the parcel networks and turnover we see in the supply chain warehouses As I said before, when we now look at what we see in the beginning of the third quarter, it's more of the same and not a fundamental change in patterns. as i said before when we now look at what we see in the beginning of the third quarter it's more of the same and not a fundamental change in patterns

Speaker 6: Thank you very much. Thank you very much. thank you very much

Speaker 9: Thank you. Thank you. thank you

Speaker 11: This concludes the Q&A session. I will now hand back to management for closing remarks. This concludes the Q&A session. this concludes the q&a session I will now hand back to management for closing remarks. i will now hand back to management for closing remarks

Speaker 1: Thanks, Abigail. Thanks to everyone out there for a very focused Q and A session. Thanks for that. IR team is looking forward to discussing any other topics further with you over the next couple of weeks, unless you prefer to go on your annual vacation. Let me turn it back to Melanie for your closing remarks. Thanks, Abigail. thanks abigail Thanks to everyone out there for a very focused Q and A session. thanks to everyone out there for a very focused q and a session Thanks for that. thanks for that IR team is looking forward to discussing any other topics further with you over the next couple of weeks, unless you prefer to go on your annual vacation. ir team is looking forward to discussing any other topics further with you over the next couple of weeks unless you prefer to go on your annual vacation Let me turn it back to Melanie for your closing remarks. let me turn it back to melanie for your closing remarks

Speaker 9: Thank you very much also from my side for your interest, for the good questions, and the discussion. If I wrap it up, obviously we saw some impact of the volatilities in the world around us on our Q2 numbers. For me, the important message is that we are focusing on the cost side, doing both the regular cyclical capacity adjustments and pushing forward with our Fit for Growth agenda. At the same time, we keep investing into growth opportunities, and they are still out there. You really have to hunt for them. We are confident that with this combination of strict cost focus and looking for growth opportunities in the current environment, we will deliver growth also going forward. Thank you very much. With that, also from my side, have a good summer. To those of you who are still going on vacation, have a nice summer holiday. Thank you very much also from my side for your interest, for the good questions, and the discussion. thank you very much also from my side for your interest for the good questions and the discussion If I wrap it up, obviously we saw some impact of the volatilities in the world around us on our Q2 numbers. if i wrap it up obviously we saw some impact of the volatilities in the world around us on our q2 numbers For me, the important message is that we are focusing on the cost side, doing both the regular cyclical capacity adjustments and pushing forward with our Fit for Growth agenda. for me the important message is that we are focusing on the cost side doing both the regular cyclical capacity adjustments and pushing forward with our fit for growth agenda At the same time, we keep investing into growth opportunities, and they are still out there. at the same time we keep investing into growth opportunities and they are still out there You really have to hunt for them. you really have to hunt for them We are confident that with this combination of strict cost focus and looking for growth opportunities in the current environment, we will deliver growth also going forward. we are confident that with this combination of strict cost focus and looking for growth opportunities in the current environment we will deliver growth also going forward Thank you very much. thank you very much With that, also from my side, have a good summer. with that also from my side have a good summer To those of you who are still going on vacation, have a nice summer holiday. to those of you who are still going on vacation have a nice summer holiday

Speaker 11: This concludes today's call. Thank you everyone for joining. You may now disconnect. This concludes today's call. this concludes today's call Thank you everyone for joining. thank you everyone for joining You may now disconnect. you may now disconnect