DHL 2006 Annual Report Download - page 9
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What makes us so dierent from our competitors? We are among the best postal
services in the world. Ninety-ve percent of all mail in Germany reaches customers
the next day, despite a population of million. We have set a very high bar for other
companies to reach.
We have also succeeded in improving the quality of our EXPRESS Division’s services.
In the past, particularly in the United States, our express services had considerable
room for improvement. But my employees did it: Customer satisfaction is
up measurably.
Deutsche Post World Net has turned the corner nancially. We were able to limit
losses from operations in the United States in the second half of . However, the
road ahead is still less than smooth and it will take some time before we have attained
our goals and met the expectations that others, including you, have set for us.
Our express activities have recently been consolidated under the leadership of John
Mullen. In addition, we rolled our European overland transport business, DHL
Freight, into our LOGISTICS Division. We can now turn our EXPRESS Division’s
focus fully toward our growing international business. In Germany, the parcel
business is being transferred to the MAIL Division. is will enable us to lower our
costs by harnessing synergies.
A new Global Business Services board department is the home for cross-divisional
functions, such as procurement and real estate. is approach has already brought
initial successes. Strict cost management has resulted in substantial savings and
allowed us to make good on our promise early in the year to generate EBIT of
. billion.
Today, we can see that our strategy of focusing on our international logistics and
express businesses, as well as the protable German mail market, was the right
one. Revenue growth in the international business and value-added services more
than osets the expected decline in our traditional mail business in Germany. Our
company already generates around of revenue outside Germany, with of
revenue attributable to activities other than mail services.
We are perfectly poised for the future. No logistics company is as big or as well
represented worldwide as Deutsche Post World Net. Financial strength, familiar
brands with a clear selling proposition, employees and executives with international
expertise, and a global network: ose are our strengths and the pillars on which to
build our continued protable growth.
5
Deutsche Post World Net Annual Report 2006
The Group
Letter to our Shareholders