Capital Markets Tutorial Workshop SUPPLY CHAIN
13 November 2014
Following our Capital Markets Day on 2 April 2014 we provided an update on the future strategic priorities of SUPPLY CHAIN at a Capital Markets Tutorial workshop in London on 13 November.
The workshop was hosted by Lawrence Rosen (CFO Deutsche Post DHL) as well as John Gilbert (CEO of SUPPLY CHAIN) and his board colleagues Dietrich Franz (CFO) and Graham Inglis (CDO).
The tutorial offered analysts and investors an insight into how SUPPLY CHAIN implements the three pillars of the corporate Strategy 2020. The aim is to define the logistics industry globally through standardised, cost efficient and innovative solutions:
- Focus: Drive standardisation and reduce complexity to increase efficiency
- Connect: Create an effective organisation globally to enable change
- Grow: Shift the portfolio to address attractive segments
With major initiatives along these pillars directly targeting the key levers of the “Earnings Growth Model”, the cornerstones of SUPPLY CHAIN’s financial ambitions can be summarised as follows:
- Outsourcing continues to drive addressable growth with 5% to 6% growth per year
- Further EBIT margin improvement to 4% to 5% by 2020
- Asset-light model with unchanged gross capex intensity of an average of 2%
On that basis SUPPLY CHAIN will contribute to the targeted 10% DHL EBIT CAGR by 2020.