Q3 2025 Deutsche Post AG Earnings Call

November 6, 2025

Melanie we aim to cover all ground within the next hour or so so therefore without losing any further time over to UBS.

Martin: Our Group CEO, Tobias, and the Group CFO, Melanie. We aim to cover all ground within the next hour or so. Therefore, without losing any further time, over to you, Tobias.

[Company Representative] (DHL Group): Our Group CEO, Tobias, and the Group CFO, Melanie. We aim to cover all ground within the next hour or so. Therefore, without losing any further time, over to you, Tobias.

Speaker #1: But how did we get here ? Let's take a look back . Wait , no , not that far back . Yes , that's more like it .

Thank you Martin Thank you all for participating in this call and your interest in our company on page two the highlights for the quarter.

Speaker #1: It's 2003 . When Deutsche Post bundles its entire express and logistics business under the DHL brand . Three brands become one and white and red turns into the yellow and red brand that we know today .

Tobias Meyer: Yeah. Thank you, Martin. Thank you all for participating in this call and your interest in our company. On page two, the highlights for the quarter. Firstly, on the short term, dealing with the changes in the global landscape, particularly the outfall of the changes in US trade policy. Within the quarter, we had the abolishment of the de minimis also for the rest of the world. I think we have been able to deal with that very effectively by adjusting and shifting capacity, especially in our more asset-intensive global transportation networks, that being Express especially, to do adequate yield management, to overall mitigate the impact on the US trade lanes and continue to take advantage where there is growth. We'll talk about where there's growth in a minute.

Firstly on the short term dealing with the changes in the global landscape, particularly the outfall of the changes in U S trade policy within the quarter, we had the abolishment of the de Minimis also for the rest of the World I think we have been able to deal with that very effectively by adjusting.

Speaker #1: Later, another one joins our cause, expanding and improving our products and services to meet the increasingly complex needs of our customers. And we haven't stopped moving ever since.

And shifting capacity, especially in our more asset intensive global transportation networks that being express, especially.

Speaker #1: Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red . We see digital transformation .

To do adequate yield management.

<unk> overall mitigate the impact on the U S trade lanes and continue to take advantage, where there is growth and we will talk about where there is growth in a minute.

What is also very important to us not to only be observed with the short term, but continue to spend time and execute measures to accelerate our growth through the.

Tobias Meyer: What is also very important to us, not to only be observed with the short term, but continue to spend time and execute measures to accelerate our growth through the focus on the industry verticals that we've laid out in our Strategy 2030, but also, and very importantly, to invest in those geographies that are growing and will continue to grow. You know, we have a list of countries which we call GT20, Global Tailwinds 20, with related trade lane development measures. I think we can say that we also made good progress on that in Q3. Cash flow generation was strong. Melanie's gonna talk about that in a minute. We continue to be committed and execute on our promise on attractive shareholder returns through dividends and share buybacks, which also continued in the quarter.

The focus on the industry vertical that we've laid out in our strategy 2030, but also and very importantly to invest in those geographies that are growing and will continue to grow we have a list of countries, which we call GT 20 global tailwind 'twenty with related.

Lane development measures.

I think we can say that we also made good progress on that in the third quarter cash flow generation was strong Melanie is going to talk about that in a minute and we continue to be committed and execute.

On our promise on attractive shareholder returns through dividends and share buybacks, which also continued in the quarter.

On page three you see statistic a graph that we publish in conjunction with our global connect business trucker.

Tobias Meyer: On page three, you see a statistic, a graph that we publish in conjunction with our Global Connectedness Tracker. Those of you who follow us more closely have been doing this for some years in collaboration with NYU Stern. We found it worthwhile to highlight that the average distance of trade has continued to grow, actually re-reaching a record high. There is a strong narrative out there that talks about regionalization and friend shoring, and there might be reasons for such trends. The fact of the matter is that long-distance trade continues to grow. We have massive shifts that we see in our company but also beyond due to the changes in US trade policy. We also see that other trading partners continue to expand.

Speaker #1: And its impact on the real world . We see people with a unique passion for logistics and sustainability . Thousands of individuals improving the lives and supporting the needs of our customers .

Those of you will follow us more closely we have been doing this for some years in collaborations with NYU Sterne and we found it worthwhile to highlight.

The average distance of trade has continued to grow actually reaching a record high.

Speaker #1: But how did we get here ? Let's take a look back . Wait , no , not that far back . Yes , that's more like it .

There is a strong narrative out there that talks about regionalization and friend shoring and there might be reasons for such trends, but the fact of the matter is that.

Speaker #1: In 2003, Deutsche Post bundled its entire express and logistics business under the DHL brand. Three brands became one, and white and red turned into the yellow and red brand that we know today.

Long distance trade continues to grow we have massive shifts.

We see in our company, but also beyond due to the changes in the U S trade policy, but we also see that other trading partners continue to expand I think most notably.

Speaker #1: Later , another one joins our cause expanding and improving our products and services to meet the increasingly complex needs of our customers . And we haven't stopped moving ever since .

That was visible in the September export figures of China, where trade to the U S was down 27%, but you had double digit growth in the trade with southeast Asia with the trade of Europe, as well and particularly the trade to the Middle East and Africa was growing a lot Latin America as well these <unk>.

Tobias Meyer: I think most notably, that was visible in the September export figures of China, where trade to the US was down 27%, but you had double-digit growth in the trade with Southeast Asia, with the trade of Europe as well, and particularly the trade to the Middle East and Africa was growing a lot, Latin America as well. These being long-haul trades and that compensating for some of the decoupling that we see as it relates to the US, which clearly has a lower share of participation in global trade and is increasingly replaced by China as the most important trading partner for many countries in the world. That is also visible on page 4 when it comes to our volumes here, a focus on the Time Definite International piece, so that specific segment of DHL Express.

Speaker #1: Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red . We see digital transformation and its impact on the real world .

<unk> long haul trades.

And that compensating for some of the decoupling that we see as it relates to the U S.

Which clearly has a lower share of participation in global trade.

Is increasingly replaced by China as the most important trading partner for many countries in the world that is also visible on page four when it comes to our volumes here.

Our focus on the time definite international piece, so that specific segment of DHL Express you see by and large the trend from the second quarter, continuing so, especially the decline on the U S bound trade the U S inbound that is.

Tobias Meyer: You see by and large the trend from the Q2 continuing, so especially the decline on the US-bound trade, the US inbound, that is. We see also some other trades, also US exports, being somewhat under pressure as input factors for US producers get more expensive. As aluminum is double the price in the US than it is in other parts of the world, it's obviously difficult to produce cost-competitive products. That is something that will continue to influence global trade and thereby, our customers and the business that we do with them. As spoken, the de minimis, now being abolished also for rest of world, that had a notable impact on volumes, less so for us on profitability, because we were able to counteract that.

But we see also.

Some other trades also U S exports being somewhat under pressure as input factors for U S producers get more expensive as aluminum is double the price in the U S than it is in other parts of the world.

This really difficult to produce cost competitive products. So that is something that will continue to influence global trade and thereby our customers and the business that we do with them.

Speaker #1: We see people with a unique passion for logistics and sustainability . Thousands of individuals improving the lives and supporting the needs of our customers .

As spoken the de minimus now being abolished also for rest of world that had a notable impact on volumes and less so for us on profitability, because we were able to counteract that but also we see that some volumes are declining.

Speaker #1: But how did we get here ? Let's take a look back . Wait , no , not that far back . Yes , that's more like it .

Tobias Meyer: Also we see that some volumes are declining that have been not so profitable for us to start with. That also impacts our overall results. The cost action is very important. On page 5, you see some details on that. Aviation costs down 8 and a half percent in the quarter. That's hard work. We are really pleased to see that the Express Aviation team has been able to deal with that very professionally. Service was very good in the quarter and we are also really looking forward to Q4 across all divisions. I think we're very well prepared with our setup to deliver excellent quality. We do that in good balance with strengthening our cost competitiveness.

Have been not so profitable for us to start with so that also impacts our overall results, but the cost action is very important on page five you'll see some details on that aviation costs down eight 5% in the quarter. That's hard work and we are really pleased.

Speaker #1: Later , another one joins our course expanding and improving our products and services to meet the increasingly complex needs of our customers . And we haven't stopped moving ever since .

To see that.

The express aviation team has been able to deal with that very professionally.

Service was very good in the quarter.

Speaker #1: Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red . We see digital transformation and its impact on the real world .

We're also really looking forward to the fourth quarter across all divisions, I think we're very well prepared with our setup to deliver excellent quality, but we do that in good balance with strengthening our cost competitiveness. So we have adjustments that are more cyclical ramping down capacity shifting.

Tobias Meyer: We have adjustments that are more cyclical, ramping down capacity, shifting capacity, but on top of that, structural measures which we have under the program Fit for Growth that really makes us a better company in many ways. Cost competitiveness is an important part of our growth journey going forward as well. We see ourselves in making good progress on that. We keep the discipline that you're used from DHL Express, but also the other divisions when it comes to yield, that's clearly also supportive of the result in the quarter. Some more examples on P&P on the following page six. Maybe before I go on to the profitability accelerators, it's important to note that the volume in the quarter for P&P had some shifts for some go-goods carrying products between letter and parcel.

Capacity.

But on top of that structural measures, which we.

Under the program fit for growth that really makes us a better company in many ways cost competitiveness is an important part of our growth journey going forward as well, so we see ourselves and making good progress on that we keep the discipline that you used from DHL Express but.

Also the other divisions when it comes to yield that's clearly also supportive of the result in the quarter.

Some more examples on Pnp on the following page six.

Maybe before I go on to the profitability accelerate us it's important to note that the volume in the quarter for Pnp had some shifts for some.

Goods carrying products between letter in parcel that details in the back up on that so if you look on an organic basis parcels were up around 2%.

Tobias Meyer: There are details in the backup on that. If you look on an organic basis, parcels were up around 2%. We had normal ups and downs in the volume of mail as well. The advertising mail had been quite weak in Q3 2024, year-over-year, it looks quite positive. Overall, when it comes to letter volume in Germany, there is no change to any trends. We still see that on the path that we talked about earlier. Now, coming to the concrete measures that helped us also improve profitability to the level that we've now seeing, which is in line with the guidance that we've provided.

We had normal ups and downs in the volume of mail as well the advertising mail had been quite weak in the third quarter of 2024, so year on year, it looks quite positive, but overall when it comes to letter volume in Germany. There is no change to any trends.

Speaker #1: We see people with a unique passion for logistics and sustainability . Thousands of individuals improving the lives and supporting the needs of our customers .

Speaker #1: But how did we get here ? Let's take a look back . Wait , no , not that far back . Yes , that's more like it .

We still see that on the path that we talked about earlier now coming through the concrete measures that helped US also improved profitability.

To the.

Speaker #1: It's 2003 when Deutsche Post bundles its entire express and logistics business under the DHL brand . Three brands become one and white and red turns into the yellow and red brand that we know today .

The level that we've now seeing which is in line with the guidance that we've provided a b steering.

This.

Is something that we can now due to a greater extent because of the lead time extension, we got for the standard letter so that those standard led US only brought to every address every second day.

Tobias Meyer: A/B steering, this is something that we can now do to a greater extent because of the lead time extension we got for the standard letter, so that those standard letters are only brought to every address every second day, staying within the allowed lead time, but allowing for some efficiencies in that last mile and skipping households where we would elsewise only have a single letter on Monday and Tuesday, for instance, and now we bundle that to two letters on Tuesdays. That's what's meant with that A/B steering. Joint delivery is something that we have been on for a long time.

Staying within the allowed lead time, but allowing for some efficiencies.

In that last mile and skipping households, where we would <unk> only have a single letter on Monday, and Tuesday for instance, and now we bundle that to two letters on Tuesdays. That's what's meant by that AB steering joined delivery is something that we have been on for a long time, it's a really big program because it.

Speaker #1: Want to see ? What's . Next ? Keep watching . When we look at DHL , we see more than yellow and red .

Requires us to rebuild infrastructure to a great extent, but that is really very important in the long run to strengthen the efficiency of the system.

Tobias Meyer: It's a really big program because it requires us to rebuild infrastructure to a great extent, but that is really very important in the long run to strengthen the efficiency of the system, to ultimately become a parcel carrier that also carries some mail. We're now at 69% of parcels being jointly delivered with mail, so that's steadily progressing and supporting the efficiency, much needed efficiency within P&P. Out-of-home continues to be a focus. We continue to invest in that. We are as close to consumers as we ever were in Germany, and that is strengthening our position in that market. Also on the support functions, we are nimble and efficiency-focused, which you also see in the numbers. Technology plays an important role. On page 7, there are some examples how we also deploy agentic AI.

Ultimately become a powerful carrier that also carries some mail we are now at 69% of parcels being jointly delivered with mail, so that steadily progressing and supporting the efficiency much needed efficiency within Pnp out of home continues to be a focus we continue to invest in that we have.

As close to consumers as we ever were in Germany.

And that is strengthening our position in that market and also from the support functions.

We are nimble and efficiency focused which you also see in the numbers.

Technology plays an important role on page seven there. Some examples how we also deploy adjourn take AI outside Europe, we have support for frontline recruiting for instance, the prequalification of the initial interview.

Tobias Meyer: Outside Europe, we have support for front line recruiting, for instance, the pre-qualification, the initial interview of somebody who wants to work for DHL, an applicant that's done with the support of AI customer service, probably across industries, the most common use case that is also visible in our company. More specifically, on customs, it's very helpful not only from an efficiency point of view, but agentic AI also does an excellent job in documenting the sources that were used for a classification. On the regulatory side, but also on the goods description side, that does not only increase efficiency but also service quality and compliance, very important in this area, especially when we talk about US clearances, an important component of our success there. I think we have been leading in providing continued great service into the US in recent months.

Of somebody who wants to work for DHL and applicant.

With the support of AI customer service probably across industries. The most common use case that is also visible in our company and most specifically.

Speaker #1: We see digital transformation and its impact on the real world . We see people with a unique passion for logistics and sustainability . Thousands of individuals improving the lives and supporting the needs of our customers .

On customs, it's very helpful. Not only from an efficiency point of view, but agenda I also doesn't excellent job in documenting the sources that were used for classification. So on the regulatory side, but also on the goods description side.

Speaker #1: But how did we get here ? Let's take a look back . Wait , no , not that far back . Yes , that's more like it .

That does not only increased efficiency, but also service quality and compliance very important in this area, especially when we talk about U S clearances and important component of our success. There I think we have been leading and providing continued great service into the U S. In recent months.

So that's something where this also contributed and then on service logistics Dispatch calls for instance, following up on the dispatch of trucks is one of those areas where.

Tobias Meyer: That's something where this also contributed. On service logistics, dispatch calls, for instance, following up on the dispatch of trucks is one of those areas where AI also comes in handy. When we look at growth accelerators on the following page 8, we continue to invest organically, roughly at the same level than we had in previous years. This goes into infrastructure that improves our quality, like in Barcelona and Helsinki for Express, but also investments that unlock new revenue streams, particularly in geographies like Middle East and Africa, where we're really getting into new verticals as well for Supply Chain especially, and then the ongoing expansion we have in our last mile activity.

AI also comes in handy.

Speaker #1: Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red . We see digital transformation and its impact on the real world .

When we look at growth accelerators on the following page eight.

We continue to invest organically roughly at the same level than we had in previous years.

The this goes into infrastructure that improves our quality like in Barcelona in Helsinki for express, but also investments that unlock new revenue streams, particularly in geographies like Middle East and Africa, where we're really getting into new verticals as well for supply chain, especially.

Specially and then the ongoing expansion we have in our last mile activity.

<unk> continued to do targeted M&A and we also had such.

Tobias Meyer: We continue to do targeted M&A, and we also had such in Q3, as it relates to the merger of our e-commerce operations in UK with Evri. That is a consolidating move. We believe we need to be amongst the top 3 players in every e-commerce last mile market that we're in. If we're not able to reach this organically, we'll do so inorganically. We have announced a similar move for Iberia earlier in the year. We have now closed the transaction in the UK, getting into such a market-leading position with that participation in the merged entity. We did a small acquisition in the US that gives us access to specific capability on healthcare-orientated last mile hospital logistics. With our investment in AJEX, we get access to last mile activities in the Gulf Cooperation Council countries.

In the third quarter.

As it relates to the.

The merger of our E Commerce operations in UK with every that is a consolidating move we believe we need to be amongst the top three players in every e-commerce last mile market that we're in if we're not able to reach this organically we will do so inorganically, we have announced a similar move for IV.

We're early in the year, we have now closed the transaction in the UK getting into such a market leading position.

With that participation in the merged entity.

We did a small acquisition in the U S that gives us access to specific capability on health care oriented last mile Hospital logistics.

And with our investment in <unk>, we get access through last mile activities in the Gulf Cooperation Council countries. So again, an expansion of our footprint, which is part of the strategy that we have communicated.

Speaker #1: We see people with a unique passion for logistics and sustainability . Thousands of individuals improving the lives and supporting the needs of our customers .

Tobias Meyer: Again, an expansion of our footprint, which is part of the strategy that we have communicated. Similarly, we support the strategy with the strengths and management focus. We have a dedicated team for supply chain, Middle East and Africa, that has been executed in Q3. We just announced that we'll also have a similar move with DHL Global Forwarding as it relates to Latin America. We wanna have senior leadership in the region to drive the growth of those businesses. That's part of our strategy execution as well. That already brings me to my summary on page 9. We cover the short-term volatility that the business is exposed to. We're successful in protecting earnings and cash flow generation in that environment by doing the cyclical capacity flex, which I believe was highly effective also in this quarter.

Similarly, we support the strategy with the strengths Mangum management focus we have a dedicated team.

Speaker #1: But how did we get here ? Let's take a look back . Wait , no , not that far back . Yes , that's more like it .

Our supply chain Middle East and Africa.

It has been executed in the third quarter, we just announced that will also have a similar move with DHL global forwarding as it relates to Latin America. So we want to have senior leadership in the region to drive the growth of those businesses, that's part of our strategy execution as well.

That already brings me to my summary on page nine so we cover the short term volatility that the business is exposed to.

We were successful in protecting earnings and cash flow generation in that environment by doing the cyclical capacity flex, which I believe was highly effective also in this quarter, but also work on the structural measures that make us more competitive in the mid to long term through the fit for growth.

Speaker #1: Want to see ? What's . Next ? Keep watching . When we look at DHL , we see more than yellow and red .

Tobias Meyer: Also work on the structural measures that make us more competitive in the mid to long term through the Fit for Growth initiatives, including increased deployment of technology such as AI-based tools. Also the long term, we saw progress in the quarter with those organic investments, the targeted M&A. We see ourselves making good progress on those structural elements of our growth journey towards Strategy 2030. That is important to accelerate our growth trajectory in 2026 and 2027. We're aware that additional momentum is needed. With that, I would hand it over to Melanie to give you some more details on the financial performance of the divisions in Q3.

Initiatives, including increased deployment of technology, such as AI based tools, but also the long term.

We saw progress in the quarter with those organic investments with targeted M&A we.

We see ourselves, making good progress on those structural elements of our growth journey towards strategy 2030.

And that.

Is important too.

Accelerate our growth trajectory in 2006, and 2007 were aware that additional momentum is needed.

That I would hand, it over to Melanie to give you some more details on the financial performance of the divisions in the third quarter.

Yes, thank you very much.

Yes, and good morning, and Viacom answer from my side. Thank you for joining our Q3 earnings call I will start on page 10. This is the main takeaways by division.

Melanie: Yeah. Thank you very much, Tobias, good morning and welcome also from my side. Thank you for joining our Q3 earnings call. I will start on page 10 with the main takeaways by division. For DHL Express, Tobias already explained the effectiveness of our cost and yield measures. Reported Express EBIT contains a net negative EUR 54 million from non-recurring effects, mainly related to a legal provision as well as some smaller cost of change and M&A effects. It's worth pointing out that excluding these non-recurring items, Express EBIT was actually up 9% year-over-year. In Forwarding Freight, we have seen similar market dynamics as our peers.

Melanie Kreis: Yeah. Thank you very much, Tobias, good morning and welcome also from my side. Thank you for joining our Q3 earnings call. I will start on page 10 with the main takeaways by division. For DHL Express, Tobias already explained the effectiveness of our cost and yield measures. Reported Express EBIT contains a net negative EUR 54 million from non-recurring effects, mainly related to a legal provision as well as some smaller cost of change and M&A effects. It's worth pointing out that excluding these non-recurring items, Express EBIT was actually up 9% year-over-year. In Forwarding Freight, we have seen similar market dynamics as our peers.

For DHL express to be as already explained the effectiveness of our cost and yet measures reported express EBIT contains a net negative for 54 million euros from nonrecurring effects, mainly related to a legal provision as well as some smaller cost of change in M&A effects. So it's worth.

Speaker #1: We see digital transformation and its impact on the real world. We see people with a unique passion for logistics and sustainability.

Pointing out that excluding these nonrecurring items express EBIT was actually up 9% year over year.

Speaker #1: Thousands of individuals improving the lives and supporting the needs of our customers . But how did we get here ? Let's take a look back .

In forwarding freight we have seen similar market dynamics.

In comparison.

Speaker #1: Wait , no , not that far back . Yes , that's more like it . It's 2003 . When Deutsche Post bundles its entire express and logistics business under the DHL brand .

Relatively well in the quarter.

Melanie: In comparison, we have been performing relatively well in the quarter with underlying Ocean Freight volume growth of 5% and increases in GP and GP per ton in Air Freight, both year-over-year and quarter-over-quarter, all leading to forwarding EBIT being up versus Q2. That being said, we are clearly not where we want to be with DGFF, and Oscar de Bok is implementing structural improvements. Supply Chain continues to perform very well. Yes, we see somewhat slower growth in current circumstances with both currency headwinds as well as impacts from the general environment. The structural growth tailwinds are intact for that division, as reflected in very good new business signings with EUR 1.4 billion new contract value in Q3.

Melanie Kreis: In comparison, we have been performing relatively well in the quarter with underlying Ocean Freight volume growth of 5% and increases in GP and GP per ton in Air Freight, both year-over-year and quarter-over-quarter, all leading to forwarding EBIT being up versus Q2. That being said, we are clearly not where we want to be with DGFF, and Oscar de Bok is implementing structural improvements. Supply Chain continues to perform very well. Yes, we see somewhat slower growth in current circumstances with both currency headwinds as well as impacts from the general environment. The structural growth tailwinds are intact for that division, as reflected in very good new business signings with EUR 1.4 billion new contract value in Q3.

Underlying volume.

Volume growth of 5%.

And increases in GP and GP per ton an athlete both year over year and quarter over quarter, all leading to forwarding EBIT being up versus Q2.

Speaker #1: Three brands become one and white and red turns into the yellow and red brand that we know today . Later , another one joins our cause expanding and improving our products and services to meet the increasingly complex needs of our customers .

That being said, we are clearly not where we want to be with Etfs and after the bulk is implementing structural improvement.

Supply chain continues to perform very well.

Yes.

Somewhat slower growth in current circumstances, this both currency headwinds as well as impacts from the general environment.

Speaker #1: And we haven't stopped moving ever since . Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red .

The structural growth tailwind are intact for that division as reflected in very good new business signings with $1 4 billion euros, new contract value in Q3.

One of the key drivers of these customer wins as well as a strong 6% plus margin is our leading digitalization automation and standardization setup.

Melanie: One of the key drivers of these customer wins, as well as a strong 6% plus margin, is our leading digitalization, automation, and standardization setup. In DHL eCommerce, EBIT includes a mix of non-reoccurring effects, which I will address on the next page. Fundamentally, Q3 confirms the intact structural e-commerce growth opportunity, which is not yet translating into accelerated profits as we keep investing into our network in this division. Last but not least, PNP is delivering very well on its strategic plan. Tobias has shown earlier the structural network changes which we are successfully implementing under Fit for Growth. The Q3 numbers show that our measures are working with a year-over-year EBIT increase, both on a reported and an underlying basis. Which brings me to our Q3 EBIT bridge on page 11. In Q3 2024, we had a EUR 70 million positive one-off effect in PNP.

Melanie Kreis: One of the key drivers of these customer wins, as well as a strong 6% plus margin, is our leading digitalization, automation, and standardization setup. In DHL eCommerce, EBIT includes a mix of non-reoccurring effects, which I will address on the next page. Fundamentally, Q3 confirms the intact structural e-commerce growth opportunity, which is not yet translating into accelerated profits as we keep investing into our network in this division. Last but not least, PNP is delivering very well on its strategic plan. Tobias has shown earlier the structural network changes which we are successfully implementing under Fit for Growth. The Q3 numbers show that our measures are working with a year-over-year EBIT increase, both on a reported and an underlying basis. Which brings me to our Q3 EBIT bridge on page 11. In Q3 2024, we had a EUR 70 million positive one-off effect in PNP.

E Commerce EBIT includes a mix of non reoccurring effects, which I will address on the next page fundamentally Q3 confirms the intact structurally ecommerce growth opportunity, which is not yet translating into accelerated profit as we keep investing into our network in this division.

Last but not least PMT is delivering very well on its strategic plan.

As shown earlier this structure and network changes that we are successfully implementing under fit for growth and the Q3 numbers show that our measures are working with a year over year EBIT increased both on a reported and on an underlying basis, which brings me to our Q3 EBIT bridge on page 11.

So in Q3 24, we had a 70 million positive one off effect in PMT.

Just for this as well as this year's nonrecurring effects.

Melanie: If you adjust for this as well as this year's non-recurring effects, our reported 7.6% year-over-year EBIT increase was actually a 10% growth excluding non-recurring items. On the main effects in this quarter, we are showing them very transparently on this page. There are in total EUR 37 million cost of change across Express, Global Forwarding Freight, and DHL eCommerce. I already talked about the net minus EUR 54 million in Express being primarily driven by a legal provision. Now to the big number in DHL eCommerce. We handed over control for our UK e-commerce business to Evri at the end of the quarter, which led to a positive deconsolidation gain.

Melanie Kreis: If you adjust for this as well as this year's non-recurring effects, our reported 7.6% year-over-year EBIT increase was actually a 10% growth excluding non-recurring items. On the main effects in this quarter, we are showing them very transparently on this page. There are in total EUR 37 million cost of change across Express, Global Forwarding Freight, and DHL eCommerce. I already talked about the net minus EUR 54 million in Express being primarily driven by a legal provision. Now to the big number in DHL eCommerce. We handed over control for our UK e-commerce business to Evri at the end of the quarter, which led to a positive deconsolidation gain.

Our reported seven 6% year over year, EBIT increase was actually a 10% growth excluding nonrecurring items.

The main effect in this quarter showing them very transparently on this page.

Speaker #1: We see digital transformation . And its impact on the real world . We see people with a unique passion for logistics and sustainability .

In total 37 million cost of change across express gorilla forwarding freight and DHL ecommerce.

Speaker #1: Thousands of individuals improving the lives and supporting the needs of our customers. But how did we get here? Let's take a look back.

I already talked about the net minus $54 million in express being primarily driven by El Nino provision.

Speaker #1: Wait , no , not that far back . Yes , that's more like it . It's 2003 when Deutsche Post bundles its entire express and logistics business under the DHL brand .

Now to the weak number in E.

E Commerce.

<unk> handed over control for our UK E Commerce business to every at the end of the quarter.

Led to a positive deconsolidation gain.

This positive effect is partially balanced by close of change as well as a total of $42 million in noncash write downs for a net positive effect of 123 million euros in the quarter.

Speaker #1: Three brands became one, and white and red turned into the yellow and red brand that we know today. Later, another one joined our cause, expanding and improving our products and services to meet the increasingly complex needs of our customers.

Melanie: This positive effect is partially balanced by cost of change as well as a total of EUR 42 million in non-cash write-downs for a full net positive effect of EUR 123 million in the quarter. We are explaining the accounting effects of the UK transaction on the dedicated e-com page in the backup, so I won't go through the accounting details now. Be aware that going forward, we will no longer fully consolidate our UK e-commerce business but recognize the pro rata net income of our 30% stake in the combined entity in EBIT in line with the at equity accounting rules. That was a bit on accounting now. Sticking to the P&L, turning to page 12, some more comments on the overall P&L.

Melanie Kreis: This positive effect is partially balanced by cost of change as well as a total of EUR 42 million in non-cash write-downs for a full net positive effect of EUR 123 million in the quarter. We are explaining the accounting effects of the UK transaction on the dedicated e-com page in the backup, so I won't go through the accounting details now. Be aware that going forward, we will no longer fully consolidate our UK e-commerce business but recognize the pro rata net income of our 30% stake in the combined entity in EBIT in line with the at equity accounting rules. That was a bit on accounting now. Sticking to the P&L, turning to page 12, some more comments on the overall P&L.

Yes, explaining the accounting effect of the UK transaction on the dedicated E com page in the backup so I won't go through the accounting details now but be aware that going forward. These are no longer fully consolidate our U K e-commerce business, but recognize the pro rata net income of our 30% stake in the combined entity in EBIT.

Speaker #1: And we haven't stopped moving ever since . Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red .

In line with Ah at equity accounting works.

So that was a bit on accounting now.

Sticking to the P&L turning to page 12, some more comments on the overall P&L.

I think it's worth pointing out here that the two 3% revenue decline is about equivalent to the minus two 4% FX effect in the quarter.

Melanie: I think it's worth pointing out here that the 2.3% revenue decline is about equivalent to the -2.4% FX effect in the quarter. While lower freight rates and US tariffs were a headwind to growth, that also implies this revenue development overall also implies that on other trade lanes in regions and verticals, we see our continued growth, as Tobias already pointed out before. On the cost side, you see the benefits of our capacity flex and structural cost measures taking effect in terms of significantly lower cost for external capacity as well as in the reduction in staff costs. At the bottom of the P&L page you see that our continuous and consistent share buyback activity is driving a significant step-up in earnings per share growth in Q3 to 16% year-over-year.

Melanie Kreis: I think it's worth pointing out here that the 2.3% revenue decline is about equivalent to the -2.4% FX effect in the quarter. While lower freight rates and US tariffs were a headwind to growth, that also implies this revenue development overall also implies that on other trade lanes in regions and verticals, we see our continued growth, as Tobias already pointed out before. On the cost side, you see the benefits of our capacity flex and structural cost measures taking effect in terms of significantly lower cost for external capacity as well as in the reduction in staff costs. At the bottom of the P&L page you see that our continuous and consistent share buyback activity is driving a significant step-up in earnings per share growth in Q3 to 16% year-over-year.

So while lower freight rates and U S tariffs the headwind to growth.

It also implies some of this revenue development overall also implies that on other trade lanes in regions and verticals because our continued growth as <unk> already pointed out before.

On the cost side, you see the benefits of our capacity flex and structural cost measures taking effect in terms of significantly lower costs for external capacity as well as the reduction in staff costs.

And at the bottom of the P&L. The page you see that our continuous and consistent share buyback activity is driving a significant step up in earnings per share growth in Q3 to 16% year over year.

Turning now to the key points in our cash flow statement on page 13.

Melanie: Coming now to the key points in our cash flow statement on page 13. EBIT growth is translating into higher growth of operating cash flow before changes in working capital. There are numerous movements across different lines in the cash flow statement, but ultimately this growth in OCF before changes in working capital shows that while there are some moving parts in our EBIT bridge, the earnings quality of our EBIT growth is very healthy, and that is very important. Working capital changes contributed positively to cash flow in the quarter, with the main contribution coming from DGFF. This is for me another useful reminder that while we have work to do on DGFF, the business model of an asset-light forwarder is attractive through the cycle, with working capital being one of the factors protecting the cash flow generation of the model.

Melanie Kreis: Coming now to the key points in our cash flow statement on page 13. EBIT growth is translating into higher growth of operating cash flow before changes in working capital. There are numerous movements across different lines in the cash flow statement, but ultimately this growth in OCF before changes in working capital shows that while there are some moving parts in our EBIT bridge, the earnings quality of our EBIT growth is very healthy, and that is very important. Working capital changes contributed positively to cash flow in the quarter, with the main contribution coming from DGFF. This is for me another useful reminder that while we have work to do on DGFF, the business model of an asset-light forwarder is attractive through the cycle, with working capital being one of the factors protecting the cash flow generation of the model.

So EBIT growth is translating into higher growth of operating cash flow before changes in working capital.

Speaker #1: We see digital transformation . And its impact on the real world . We see people with a unique passion for logistics and sustainability .

Animas movement across different lines in the cash flow statement, but ultimately this growth and ocs before changes in working capital shows that while there are some moving parts in our EBIT pitch the earnings quality of our EBIT growth is very healthy and that is very important.

Speaker #1: Thousands of individuals improving the lives and supporting the needs of our customers. But how did we get here? Let's take a look back.

Speaker #1: Wait . No , not that far back . Yes , that's more like it . It's 2003 . When Deutsche Post bundles its entire express and logistics business under the DHL brand .

Capital changes contributed positively to cash flow in the quarter was the main contribution coming from Etfs.

And this is for me another useful reminder, that while we have work to do on duty F. F. The business model of an asset light for water is attractive the cycle is working capital being one of the factors protecting the cash flow generation of the model.

Strong growth in operating cash flow, coupled with ongoing investment control led to a very good free cash flow in Q3, and I'm pleased that in 'twenty five we have shown them smooth our cash generation across the quarter and are well on track to our unchanged 3 billion Euro four year target for free cash flow excluding M&A.

Melanie: Strong growth in operating cash flow, coupled with ongoing investment control, led to a very good free cash flow in Q3. I'm pleased that in 25 we have shown a smoother cash generation across the quarters and are well on track to our unchanged EUR 3 billion full year target for free cash flow excluding M&A. That takes us to the use of cash and the next page. We have been consistently delivering on our dividend continuity promise and to our clear commitment on our EUR 6 billion share buyback program. With EUR 4.4 billion done by end of September, this leaves up to EUR 1.6 billion to go by end of 26. No change here in our commitment to attractive shareholder returns. To round it up, let's turn to our unchanged guidance on page 15.

Melanie Kreis: Strong growth in operating cash flow, coupled with ongoing investment control, led to a very good free cash flow in Q3. I'm pleased that in 25 we have shown a smoother cash generation across the quarters and are well on track to our unchanged EUR 3 billion full year target for free cash flow excluding M&A. That takes us to the use of cash and the next page. We have been consistently delivering on our dividend continuity promise and to our clear commitment on our EUR 6 billion share buyback program. With EUR 4.4 billion done by end of September, this leaves up to EUR 1.6 billion to go by end of 26. No change here in our commitment to attractive shareholder returns. To round it up, let's turn to our unchanged guidance on page 15.

Speaker #1: And we haven't stopped moving ever since . Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red .

And that takes us to the use of cash and the next page.

<unk> been consistently delivering on our dividend continuity promise and to our clear commitment on our 6 billion share buyback program. This $4 4 billion done by end of September This lease up to one 6 billion to go by end of 2006.

No change here and our commitment to attractive shareholder returns.

So rounded up lets turn to our unchanged guidance on page 15.

<unk> talked about our Q2 numbers in early August.

Melanie: When we talked about our Q2 numbers in early August, the short notice cancellation of rest of world de minimis to the US had just been announced, we prudently flagged a worst-case risk from this new development. This impact is now fully reflected in the assumptions for our otherwise unchanged guidance as we reconfirm explicitly in the first bullet below the full year 2025 targets. This brings me right away to my wrap up on the three main messages we want you to take away from today. The first is that in the short term, our cost and yield measures have driven a strong Q3 performance, on this basis we fully confirmed guidance today.

Melanie Kreis: When we talked about our Q2 numbers in early August, the short notice cancellation of rest of world de minimis to the US had just been announced, we prudently flagged a worst-case risk from this new development. This impact is now fully reflected in the assumptions for our otherwise unchanged guidance as we reconfirm explicitly in the first bullet below the full year 2025 targets. This brings me right away to my wrap up on the three main messages we want you to take away from today. The first is that in the short term, our cost and yield measures have driven a strong Q3 performance, on this basis we fully confirmed guidance today.

Short notice cancellation of rest of world de Minimis to the U S. It just been announced and we prudently flat versus case risk from this new development.

By now the bullishness of rest of a de minimus has been implemented and we have better visibility on the impact. So this impact is now fully reflected in the assumptions for our otherwise unchanged guidance as we reconfirm explicitly in the first bullet.

Full year 'twenty five targets.

And this brings me right away to my wrap up into three main messages. They want you to take away from today.

The first is that in the short term our cost and yet measures have driven a strong Q3 performance and on this basis, we fully confirm guidance today.

Speaker #1: We see digital transformation and its impact on the real world. We see people with a unique passion for logistics and sustainability.

Speaker #1: Thousands of individuals improving the lives and supporting the needs of our customers . But how did we get here ? Let's take a look back .

Secondly, beyond short term volatility and capacity flex our structural cost savings drive sustainably lower cost base not only for the current environment, but also for the growth path thereafter, so they literally make us fit for growth.

Melanie: Secondly, beyond short-term volatility and capacity flex, our structural cost savings drive sustainably lower cost base, not only for the current environment but also for the growth path thereafter. They literally make us Fit for Growth. Thirdly, beyond P&L earnings, we also delivered a strong cash flow, which allows us to invest in a very targeted manner into the GDP plus verticals and regions we identified, while at the same time offering attractive returns for shareholders. Before we now turn to your questions, something special, a quick double advertisement in the name of our investor relations team. First, for your questions, we now have a new AI tool on our IR website, which matches your questions with the information we have provided in our official publications. Martin told me that this is pretty unique in the IR arena.

Melanie Kreis: Secondly, beyond short-term volatility and capacity flex, our structural cost savings drive sustainably lower cost base, not only for the current environment but also for the growth path thereafter. They literally make us Fit for Growth. Thirdly, beyond P&L earnings, we also delivered a strong cash flow, which allows us to invest in a very targeted manner into the GDP plus verticals and regions we identified, while at the same time offering attractive returns for shareholders. Before we now turn to your questions, something special, a quick double advertisement in the name of our investor relations team. First, for your questions, we now have a new AI tool on our IR website, which matches your questions with the information we have provided in our official publications. Martin told me that this is pretty unique in the IR arena.

Speaker #1: Wait , no , not that far back . Yes , that's more like it . It's 2003 when Deutsche Post bundles its entire express and logistics business under the DHL brand .

And secondly, thirdly beyond P&L earnings. We also delivered strong cash flow, which allows us to invest in a very positive manner into the GDP plus verticals and regions. We identified while at the same time offering attractive.

Speaker #1: Three brands become one and white and red turns into the yellow and red brand that we know today . Later , another one joins our course expanding and improving our products and services to meet the increasingly complex needs of our customers .

Our shallower than us.

And before we now turn to your questions something special.

Double advertisement in the name of our Investor Relations team.

Speaker #1: And we haven't stopped moving ever since . Want to see ?

First for your question, we now have a new AI tool on our IR website, which matches your questions. This information we have provided in our official publications. Martin told me that this is pretty unique in that arena I would ask all of you all of you to check it out give me feedback.

Melanie: I would ask of you, all of you to check it out, give me feedback. I hope that this will be a good example on how we strive to apply AI wherever helpful across the organization. Secondly, we have John Pearson and Mike Parra, our Divisional CEO and our CEO, Europe of DHL Express, hosting an investor visit at our UK hub upcoming Monday. Contact IR here for more details, if interested. I think it's definitely worth seeing. With that, operator, please launch the Q&A.

Melanie Kreis: I would ask of you, all of you to check it out, give me feedback. I hope that this will be a good example on how we strive to apply AI wherever helpful across the organization. Secondly, we have John Pearson and Mike Parra, our Divisional CEO and our CEO, Europe of DHL Express, hosting an investor visit at our UK hub upcoming Monday. Contact IR here for more details, if interested. I think it's definitely worth seeing. With that, operator, please launch the Q&A.

Hope that this will be a good example, unhealthy strive to apply AI, but as a helpful across the organization.

Speaker #2: Us ?

And secondly, we have John Pearson, and Mike Parra, our divisional C O N.

He or Europe of DHL Express.

Staying in Investor visit at our U K hub upcoming Monday contact IR here for more detached is interested I think it's definitely.

Yeah.

And does that operate off please launch the Q&A.

Ladies and gentlemen, we will now begin our Q&A session. If you have a question. We ask that you. Please use the <unk> function at the bottom of your screen.

Operator: Ladies and gentlemen, we will now begin our Q&A session. If you have a question, we ask that you please use the raise hand function at the bottom of your screen. If you have dialed in, please select star nine to raise your hand and star 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 again. Thank you. A moment for the first question, please. Our first question comes from Alexia Dequesne at J.P. Morgan. Please unmute your line and ask your question.

Operator: Ladies and gentlemen, we will now begin our Q&A session. If you have a question, we ask that you please use the raise hand function at the bottom of your screen. If you have dialed in, please select star nine to raise your hand and star 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 again. Thank you. A moment for the first question, please. Our first question comes from Alexia Duquesne at J.P. Morgan. Please unmute your line and ask your question.

If you have dialed in places like Star line to raise your hand and stuff fixed one mute why aren't your name has been announced please on mute and ask a question. If you want to withdraw your question. Please let me hand, using the rice hand function again.

An amendment for the first question please.

Speaker #1: What's next ? Keep watching . When we look at DHL , we see more than yellow and red . We see digital transformation .

Our first question comes from Alex Giovanni at J P. Morgan. Please on mute your line and ask your question.

Yeah, Good morning, Matt and thank you for taking my questions.

Melanie: Yeah. Good morning, Melanie and Tobias. Thank you for taking my questions. Just I'm gonna limit it to 2. Firstly, in freight forwarding, obviously Oscar has now been in the seat for I think the past 90 days. Can you give us a little bit of an indication of what his plan is to improve the earnings kind of progression in that division? Clearly things have-

Alexia Duquesne: Yeah. Good morning, Melanie and Tobias. Thank you for taking my questions. Just I'm gonna limit it to 2. Firstly, in freight forwarding, obviously Oscar has now been in the seat for I think the past 90 days. Can you give us a little bit of an indication of what his plan is to improve the earnings kind of progression in that division? Clearly things have-

Speaker #1: And its impact on the real world. We see people with a unique passion for logistics and sustainability, thousands of individuals improving the lives and supporting the needs of our customers.

Im going to limited to.

Just firstly freight forwarding honestly Oscar has not been in the seat pricing of nine today can you give us a little bit of an indication of what his plan is to improve the earnings kind of progression in that division because clearly things have.

Speaker #1: But how did we get here ? Let's take a look back . Wait , no , not that far back . Yes , that's more like it .

<unk> been approaching the 2019 levels faster than we would have thought.

Alexia Dequesne: Been approaching the 2019 levels faster than we would have thought, a couple of years ago. That's my first question. Secondly, can you give us an update on the progress on the legal structure tidying up and when we should expect to see the overheads within the divisional reporting that you signaled at the CMD? That's it. Thank you.

Alexia Duquesne: Been approaching the 2019 levels faster than we would have thought, a couple of years ago. That's my first question. Secondly, can you give us an update on the progress on the legal structure tidying up and when we should expect to see the overheads within the divisional reporting that you signaled at the CMD? That's it. Thank you.

A couple of years ago. So that's my first question and then secondly.

Can you give us an update on the progress on the legal structure tiding up and when we should expect to see the overheads within the divisional reporting that you signaled.

M D.

Okay.

Very good.

Thank you Alex for these two questions so as it relates to global forwarding.

Tobias Meyer: Very good. Thank you, Alex, for these two questions. As it relates to Global Forwarding, I mean, Oscar is making progress. You saw the move on Latin America, for instance, which is again, a closer to market move that enables us to execute our strategy in that as well. Overall, I think we know that in Global Forwarding, we have a great dependency on industry trends as well. You see that in the Q3, that is hard for us to predict. We have seen clearly a normalization trend since COVID, but also within the year. I think there are some signs of that bottoming out, but there is a lot of uncertainty due to the changes in trade policy that we have talked about that obviously has implications on demand, quite notably so.

Scott.

Making progress you saw the move on Latin America for instance, which is again a closer to market move that enabled us to execute our strategy in that as well.

Speaker #1: Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red . We see digital transformation and its impact on the real world .

Overall, I think we know that in global forwarding.

We have a great dependency on industry trends as well, you'll see that in the third quarter.

That is hard for us to predict.

We have seen clearly a normalization trend since COVID-19, but also within the year.

I think there are some signs of that bottoming out, but there is a lot of uncertainty due to that.

The changes in trade policy that we have talked about that obviously has implications on demand.

Quite notably so.

On the other hand, we have compensating factors I think will all positively surprised by the trade figures that China published for September.

Tobias Meyer: On the other hand, we have compensating factors. I think we're all positively surprised by the trade figures that China published for September, that being one example of a counterbalancing effect. Overall, we see ourselves in the quarter with a positive development, especially in ocean freight. I think relative to our competitors, we have been doing quite well. Air freight. There's still more work to be done. We also have that topic in terms of the freight market in Europe, especially our LTL network in Germany. These are topics that Oscar is working on. Again, within the quarter relative to our peers, we are quite pleased.

<unk> being one example of a counterbalancing effect.

All we see ourselves in the quarter with a positive development, especially in ocean freight I think relative to our competitors, we have been doing quite well.

There is still more work to be done and we also have that.

The topic in terms of the freight.

Freight market in Europe, especially our LTE network in Germany. So these are topics that <unk> working on.

But again within the quarter relative to our peers.

We are quite pleased.

Yes, good morning, Alexia I'll take your second question on legal structure and the allocation of the corporate center costs. So we are well on track on the legal cleanup.

Speaker #1: We see people with a unique passion for logistics and sustainability . Thousands of individuals improving the lives and supporting the needs of our customers .

Melanie: Yeah. Good morning, Alexia. I'll take your second question on legal structure and the allocation of the corporate center costs. We are well on track on the legal cleanup. As you may recall, target is to take the topic to the AGM next spring, we are on track to do that. We will then, once we have implemented the new legal structure in the course of 2026, start with the new reporting with the full allocation of the corporate center costs in 2027. We will do some parallel shadow calculations for 2026 that when we start reporting in the new structure in 2027, we can also restate the 2026 numbers to that format. That's the timeline here.

Melanie Kreis: Yeah. Good morning, Alexia. I'll take your second question on legal structure and the allocation of the corporate center costs. We are well on track on the legal cleanup. As you may recall, target is to take the topic to the AGM next spring, we are on track to do that. We will then, once we have implemented the new legal structure in the course of 2026, start with the new reporting with the full allocation of the corporate center costs in 2027. We will do some parallel shadow calculations for 2026 that when we start reporting in the new structure in 2027, we can also restate the 2026 numbers to that format. That's the timeline here.

Speaker #1: But how did we get here ? Let's take a look back . Wait , no , not that far back . Yes , that's more like it .

As you may recall.

Target is to take the topic to the AGM next spring and.

And we are on track to do that Knievel, then once he has implemented the new legal structure in the course of 2006 stop as a new reporting that the full allocation of the corporate center costs in 2007, even do some parallel shadow calculations for 2006.

When we start reporting in the new structure.

You can also restate the 2006 numbers to that format. That's the timeline here.

Thank you Melanie and can I, just ask a follow up on that the BSA Center, obviously, you talked about the external factors and productivity usually has an element of that.

Alexia Dequesne: Thank you, Melanie. Can I just ask a follow-up on Tobias' answer? Obviously, you talked about the external factors. Productivity usually is an element that kind of helps improve the earnings kind of projections. We've seen other peers announce kind of relatively sizable cost savings programs. The Fit for Growth doesn't really apply to free forwarding. Is there something that you are specifically looking at there, perhaps using natural attrition as a tailwind, just to kind of understand how costs should evolve there as well? Thank you.

Alexia Duquesne: Thank you, Melanie. Can I just ask a follow-up on Tobias' answer? Obviously, you talked about the external factors. Productivity usually is an element that kind of helps improve the earnings kind of projections. We've seen other peers announce kind of relatively sizable cost savings programs. The Fit for Growth doesn't really apply to free forwarding. Is there something that you are specifically looking at there, perhaps using natural attrition as a tailwind, just to kind of understand how costs should evolve there as well? Thank you.

Speaker #1: Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red . We see digital transformation and its impact on the real world .

Helps improve the earnings kind of projections, we've seen other peers announce Scott.

Relatively sizeable savings programs the fit for growth doesn't really apply to say forwarding is there something that you are specifically looking at there, perhaps using natural attrition as a.

As a tailwind just to kind of understand how costs should evolve there as well. Thank you.

Well I think when you look for example at the Nonetheless Nishu in that book and you can see that in terms of employees beyond three 9% down in global forwarding freight.

Melanie: I think when you look, for example, at the numbers we show in our stat book, you can see that, in terms of employees, we are 3.9% down in Global Forwarding, Freight. Fit for Growth, and cost measures are also happening in that division.

Melanie Kreis: I think when you look, for example, at the numbers we show in our stat book, you can see that, in terms of employees, we are 3.9% down in Global Forwarding, Freight. Fit for Growth, and cost measures are also happening in that division.

So fit for growth and cost measures also happening in that division.

So I think.

Absolutely Echo we see ourselves good underway you also have to see that productivity in the cycle, whereas a cyclical element to it as well.

Tobias Meyer: Yeah. That, I think, I would absolutely echo. We see ourselves good on the way. You also have to see that productivity in the cycle has a cyclical element to it as well. In the downturn, we often see the files getting lighter, having less TEUs per file on the ocean freight side. Overall, also, if we look forward, Alexia, I mean, this is an area where we wanna grow and rebuild also market share. Our obsession with cost is, you know, limited by that ambition to grow. We will look at productivity, continue to do so, but 2026 needs to be a year for growth for Global Forwarding. The environment is ripe for that. Some of the moves in the broader industry landscape might be helpful for us in that regard.

In the downturn, we often see the file to get lighter having less to use per file on the ocean freight side. Overall also if we look forward Alexia I mean, this is an area, where we want to grow and rebuilt also market share so our obsession with cost.

Limited by that ambition to grow we will look at productivity continue to do so but.

26 needs to be a year for growth for global forwarding.

Speaker #1: We see people with a unique passion for logistics and sustainability . Thousands of individuals improving the lives and supporting the needs of our customers .

Environment is ripe for that some of the moves in the broader industry landscape might be helpful. For us in that regard. So that's a strong focus that we have we want to absolutely stay customer focused in.

Speaker #1: But how did we get here ? Let's take a look back . Wait , no , not that far back . Yes , that's more like it .

Tobias Meyer: That's a strong focus that we have. We wanna absolutely stay customer-focused in Global Forwarding and grow in those industry work fields that we have laid out. That's a clear focus for Oscar as well.

In global forwarding and grow in those industry workflow tools that we have laid out that's a clear focus for Oscar as well.

Thank you.

Thank you Alexia, we come to the next caller, which is from Wolfe research.

Alexia Dequesne: Thank you.

Alexia Duquesne: Thank you.

Tobias Meyer: Thank you, Alexia. We come to the next caller, which is from Wolfe Research.

Yes, our next caller is Jacob <unk> with Wolfe Research. Please on mute your line and ask a question.

Speaker #1: Later, another one joins our cause, expanding and improving our products and services to meet the increasingly complex needs of our customers.

Operator: Yes. Our next caller is Jacob Lacks with Wolfe Research. Please unmute your line and ask your question.

The group continues to yet.

Speaker #1: And we haven't stopped moving ever since . Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red .

Tobias Meyer: Jacob, can't hear you yet.

Hi, Thanks for the time can you hear me now.

Good morning, Greg.

Jacob Lacks: Hey, thanks for your time. Can you hear me now?

So cost control was strong again with ongoing volume pressure in express can you help us think about how much of the cost outs are variable and how much are structural.

Operator: Yes.

Tobias Meyer: Good morning.

Jacob Lacks: Great. Cost control was strong again with the ongoing volume pressure in Express. Can you help us think about how much of the cost outs are variable and how much are structural? Is the EUR 1 billion Fit for Growth plan, is that on track or are you ahead of schedule here, just given the global trade volatility?

The $1 1 billion euros.

Our growth plan.

Is that on track or you are ahead of schedule here, just given the global trade volatility.

Yes. Thank you for that question Sylvia purposefully not breaking out how much of the cost is coming from the volume capacity flax and how much is structural because that is a little bit of an artificial calculation. So for example, if you have.

Melanie: Yeah. Thank you for that question. We are purposely not breaking out how much of the cost is coming from the volume capacity flex and how much is structural, because that is a little bit of an artificial calculation. For example, we have done some rejigging to our aviation network by changing the partners we fly with. That has structurally improved our cost base under the Fit for Growth. Of course, that is now also impacted by how much volume we actually have in the network. We don't see the benefit of kind of like pseudo-mathematically breaking it into the one bucket or the other. I think the important element is what you see in the bottom line, and that is this very good cost development.

Melanie Kreis: Yeah. Thank you for that question. We are purposely not breaking out how much of the cost is coming from the volume capacity flex and how much is structural, because that is a little bit of an artificial calculation. For example, we have done some rejigging to our aviation network by changing the partners we fly with. That has structurally improved our cost base under the Fit for Growth. Of course, that is now also impacted by how much volume we actually have in the network. We don't see the benefit of kind of like pseudo-mathematically breaking it into the one bucket or the other. I think the important element is what you see in the bottom line, and that is this very good cost development.

Some rejigging Tau Aviation network.

Bye.

<unk> the partners the flavors that has structurally improved our cost base.

The fit for growth, but of course that is now also impacted by how much volume they actually happens in network.

So you don't see the benefit of kind of like pseudo.

Pseudo mathematically breaking it into one bucket or the other I think the important element is what you see in the bottom line and that is very good cost development and with that we are overall. This ahead of what you had envisioned.

Melanie: With that, we are overall a bit ahead of what we had envisioned under Fit for Growth for the Q3 situation.

Melanie Kreis: With that, we are overall a bit ahead of what we had envisioned under Fit for Growth for the Q3 situation.

Fit for growth.

And the other third quarter situation.

Great and then just one more for me.

Jacob Lacks: Great. Just one more for me. When you look at the US volume declines, do you have a sense for how much of these declines are driven by de minimis and how much are higher tariffs? To the extent we see tariffs taken off by the courts next year, could this drive a B2C volume recovery?

When you look at the U S volume declines do you have a sense for how much of these declines are driven by de minimus and how much are higher tariffs.

Speaker #1: We see digital transformation . And its impact on the real world . We see people with a unique passion for logistics and sustainability .

Externally, we see tariffs taken Oh.

Off by the Court's next year disk drive PTC volume recovery.

So.

Speaker #1: Thousands of individuals improving the lives and supporting the needs of our customers . But how did we get here ? Let's take a look back .

We would not expect that.

Tobias Meyer: I think we would not expect that. Even if IEEPA tariffs go, we all know that there are other legal grounds that the President could use to impose tariffs. We think that the step down that has happened is permanent. That would change, that would obviously provide opportunity. We would love that, would allow us also to definitely bring some business back, but we currently don't plan for that. The exact split between de minimis effect and tariffs is hard to do because it's also overlapping. E-commerce has clearly taken a much more severe drop than B2B volumes. That's something that we very clearly see, and I think everybody would expect as well.

The.

Even if IEP tariffs goal, we all know that there are other legal grounds that the president could use to impose tariffs. So we.

Speaker #1: Wait , no , not that far back . Yes , that's more like it . It's 2003 . When Deutsche Post bundles its entire express and logistics business under the DHL brand .

Think that the step down that has happened.

As permanent.

That would change.

That would obviously.

Provide opportunity.

We would love that.

Allow us also to too.

Definitely bring some business back, but we currently don't plan for that.

Split.

Between the minimus effect in tariffs is hard to do because it's also overlapping.

So <unk>.

E Commerce is clearly taking a much more severe drop.

Speaker #1: And we haven't stopped moving ever since . Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red .

<unk> b to B volumes, that's something that would be very clearly see and I think everybody would expect as well those b to b volumes are goods that are essential in many ways to the U S economy to U S based cut.

Tobias Meyer: Those B2B volumes are goods that are essential in many ways to the US economy, to US-based customers. The decline is significantly lower than the decline you see on the B2C on the e-commerce side.

Customers.

No.

The decline is significantly lower than the decline you see on the BTC on the ecommerce side and you'll also see in our overall numbers also for B to C. We had minus 23%.

Melanie: You also see in our overall numbers also for B2C, we had minus 23% on the shipment side, and for B2B, minus 2%, so holding quite stable.

Melanie Kreis: You also see in our overall numbers also for B2C, we had minus 23% on the shipment side, and for B2B, minus 2%, so holding quite stable.

Shipment side and for me to be minus 2%.

We are holding quite stable.

Great. Thanks for your time, Thank you Jake.

Jacob and onto the next caller from BNP.

Jacob Lacks: Great. Thanks for your time.

Melanie: Thank you.

Jacob Lacks: Thank you.

Martin: Thanks, Jacob. On to the next caller from BNP Paribas.

[Company Representative] (DHL Group): Thanks, Jacob. On to the next caller from BNP Paribas.

Our next question comes from James Hollins with BNP Paribas. Please on mute your line and ask your question.

Operator: Our next question comes from James Hollins with BNP Paribas. Please unmute your line and ask your question.

Okay.

James James <unk> on mute.

Martin: James?

[Company Representative] (DHL Group): James?

Uh huh.

Operator: James, that's star six to unmute.

Hello, James from BNP Paribas.

Martin: Mm-hmm.

[Company Representative] (DHL Group): Mm-hmm.

James Hollins: Hello. Yeah, James Hollins from BNP Paribas. Two from me. Melanie, please, could you try and quantify the de minimis impact? Obviously, you talked about up to EUR 200 million this year. Maybe you could give us any detail you think it's going to be, and better still, what you think it might be in the year 2026. I know you told us not to annualize it. Then, what I'd describe as a stream of questions on Express. But I'll keep it to pretend it's one. If we look at Express TDI volumes, obviously down 10, 11% Q2 and Q3. B2C volumes down 23%.

Two from me melon.

Melanie please could you.

Try and quantify is it de minimis impact to see towards the up to 200 million this year.

Maybe you could give us any detail you think it's going to be.

And that's still what do you think it might be in 2006, I know you told us not to annualize.

Is it.

And then.

What I would describe the street with questions on express.

But I'll keep it to pretend it's one if we look at express TDI volumes are actually down.

Speaker #1: We see digital transformation and its impact on the real world. We see people with a unique passion for logistics and sustainability.

11% Q2 and Q3.

To see volumes down 23% I was just wondering where that was versus the market.

Speaker #1: Thousands of individuals improving the lives and supporting the needs of our customers . But how did we get here ? Let's take a look back .

James Hollins: I was just wondering where that was versus the market, what you're seeing happening on market share, and perhaps whether you could give us an early estimate where you think volumes might go in 2026. Let's turn to the second part, TDI B2B volumes. I think previously, obviously, volume's pretty solid there. You talked about average weight per shipment. I was wondering if you'd give us a bit of an update on that, if possible. Thank you.

Are you seeing at your market share.

Perhaps whether you.

You could give us an idea where you think volumes might go in 2026.

Speaker #1: Wait , no , not that far back . Yes , that's more like it . It's 2003 when Deutsche Post bundles its entire express and logistics business under the DHL brand .

And then.

And the second part TDI B to B volumes I think previously obviously volumes pretty solid there you talked about average weight per shipment is wondering if you'd give us a bit of an update on that if possible. Thank you.

Yes. Thank you so I'm starting with the minimus question. So I mean again when he talked about the 200 million on August 5th that was days I'm on.

Melanie: Yeah, thank you. Starting with the de minimis question. I mean, again, when we talked about the $200 million on 5 August, that was days after the announcement that de minimis would go out end of August, rest of world. What we had done to come up with $200 million was basically extrapolate the development we had seen for China, Hong Kong to the US. I had already flagged then that this was really a worst-case scenario. We have now seen that there is an impact, but that we are able to manage that quite well as visible the Q3 numbers for Express.

Melanie Kreis: Yeah, thank you. Starting with the de minimis question. I mean, again, when we talked about the $200 million on 5 August, that was days after the announcement that de minimis would go out end of August, rest of world. What we had done to come up with $200 million was basically extrapolate the development we had seen for China, Hong Kong to the US. I had already flagged then that this was really a worst-case scenario. We have now seen that there is an impact, but that we are able to manage that quite well as visible the Q3 numbers for Express.

Days after the announcement that the minimum would call out end of rest of world.

Speaker #1: And we haven't stopped moving ever since . Want to see ? What's next ? Keep watching . When we look at DHL , we see more than yellow and red .

What we have done to.

We'll come up with $200 million was basically extrapolate development, we had seen for China Hong Kong.

With the U S.

We had already flagged then that was really a worst case.

Scenario.

You have now seen that there is an impact but that we are able to manage that quite well as Elizabeth.

The Q3 numbers for express.

And with regard to the TDI volumes.

Melanie: With regard to the TDI volumes, I mean, first of all, we had already taken a yield and profitability-focused approach to B2C volumes long before the whole de minimis thing started. We had talked about that now for, yeah, 6 quarters, that we had really taken pricing action and that this had impacted our volumes, particularly on the Trans-Pacific. In that respect, we had seen stronger volume declines than competition. When you look at our profitability development, I think that shows very clearly that the development or our approach is the right one. To the weight question, yeah, I think that's a very important point. When you look at volume and weight development, we see a less pronounced development on the weight side.

Melanie Kreis: With regard to the TDI volumes, I mean, first of all, we had already taken a yield and profitability-focused approach to B2C volumes long before the whole de minimis thing started. We had talked about that now for, yeah, 6 quarters, that we had really taken pricing action and that this had impacted our volumes, particularly on the Trans-Pacific. In that respect, we had seen stronger volume declines than competition. When you look at our profitability development, I think that shows very clearly that the development or our approach is the right one. To the weight question, yeah, I think that's a very important point. When you look at volume and weight development, we see a less pronounced development on the weight side.

I mean first of all we had already taken.

Yield and profitability focused approach to be to see volumes long before the whole de minimus thing started talking about that now for.

Six quarters that we had really taking pricing action and that is that in.

Impacted our volumes, particularly on the Trans Pacific and.

And in that respect he has seen stronger volume declines than competition, but then you look at our profitability development I think that shows very clearly that.

Matt.

The development is our approach is the right one.

And to the right question, Yes, I think that's a very important point.

When you look at volume and late development, we see less pronounced development on the rate side for the focus also on heavier shipments for the express network is actually paying off.

Speaker #1: We see digital transformation . And its impact on the real world . We see people with a unique passion for logistics and Linked .

Melanie: The focus also on heavier shipments, for the Express network is actually paying off.

Melanie Kreis: The focus also on heavier shipments, for the Express network is actually paying off.

And I think if I may add to the market share.

Tobias Meyer: I think if I may add to the market share, we are following that. You might have seen that some of our competitors have also published or said something to the in-quarter development. That is something, if you look at the entire quarter, it gives an impression that we might have lost. If you then look at how that development was within the quarter, we're not so sure about that anymore. It is something that we watch. We obviously here are focused on TDI. We do not play in the intercontinental deferred market where there is clearly some growth that competitors have shown. Melanie commented on the profitability. The focus for 2026 is more on the weight side, given the focus on growing in industrials and the focus verticals that we have laid out.

We are following that you might have seen that some of our competitors have also published or said something to the in quarter development.

So that is something if you look at the entire quarter. It gives an impression that we might have lost if you then look at how the development was within the quarter. We're not so sure about that anymore. So it's something that we watch.

Martin Ziegenbalg: Group CEO Tobias and Group CFO Melanie. We aim to cover all ground within the next hour or so, therefore, without losing any further time, over to you, Tobias.

We obviously here are focused on TDI, we do not play in the Intercontinental deferred market, where there is clearly some growth that competitors have shown Milan. He commented on the profitability.

Tobias Meyer: Yeah, thank you, Martin. Thank you all for participating in this call and your interest in our company. On page two, the highlights for the quarter. Firstly, on the short term, dealing with the changes in the global landscape, particularly the outfall of the changes in US trade policy. Within the quarter, we had the abolishment of the de minimis also for the rest of the world. I think we have been able to deal with that very effectively by adjusting and shifting capacity, especially in our more asset-intensive global transportation networks, that being Express especially, to do adequate yield management. To overall mitigate the impact on the US trade lanes and continue to take advantage where there is growth. We'll talk about where there is growth in a minute.

The focus for 2026 is more on the weight side.

Given the focus on growing in industrials and the focus verticals that we have laid out. So that's our focus there clearly b to b and tilted towards somewhat heavier weight of high value critical goods.

Tobias Meyer: That's our focus there. Clearly B2B and tilted towards somewhat heavier weight of high value, critical goods. That's very much the focus of Express as we go into 2026.

Very much the focus of express as we go into 2026.

Okay.

Listen Thanks, a lot.

Our next question comes from Mark <unk> with Barclays. Please on mute your line and ask a question.

Marco Limite: Awesome. Thanks a lot.

James Hollins: Awesome. Thanks a lot.

Operator: Next question comes from Marco Limite with Barclays. Please unmute your line and ask your question. Marco, that is star six to unmute.

Okay.

Mark I thought I saw fixed one mute.

Tobias Meyer: What is also very important to us, not to only be absorbed with the short term, but continue to spend time and execute measures to accelerate our growth through the focus on the industry verticals that we've laid out in our Strategy 2030, but also, and very importantly, to invest in those geographies that are growing and will continue to grow. We have a list of countries which we call GT20, Global Tailwinds 20, with related trade lane development measures. I think we can say that we also made good progress on that in the third quarter. Cash flow generation was strong. Melanie's going to talk about that in a minute. We continue to be committed and execute on our promise on attractive shareholder returns through dividends and share buybacks, which also continued in the quarter.

I, probably cant hear you, yet Hello, Hi, Tim Yes, okay.

Tobias Meyer: Marco, we can't hear you yet.

Operator: Marco, we can't hear you yet.

Marco Limite: Hello. Hi. Can you hear me?

Marc Limite: Hello. Hi. Can you hear me?

Good morning, Congrats for the Q2 results.

Tobias Meyer: Yeah, now we can.

Operator: Yeah, now we can.

Operator: Yes.

Marco Limite: Okay, good morning. Congrats for the Q3 results. A question indeed on cost savings, because I think, you know, the Q3 was bit was also driven by cost savings. When we think about this 2026 outlook, I mean, I'm aware that probably is a bit too early to discuss about 2026. I mean, if, specifically in the Express division, I mean, if we think about an environment where macro does not improve, you've got pricing that offset inflation. Let's say the year-over-year improvement will be driven by cost savings. In your Fit for Growth program, I think you've said you have only EUR 250 million cost savings in 2025 and a lot more next year.

Marc Limite: Okay, good morning. Congrats for the Q3 results. A question indeed on cost savings, because I think, you know, the Q3 was bit was also driven by cost savings. When we think about this 2026 outlook, I mean, I'm aware that probably is a bit too early to discuss about 2026. I mean, if, specifically in the Express division, I mean, if we think about an environment where macro does not improve, you've got pricing that offset inflation. Let's say the year-over-year improvement will be driven by cost savings. In your Fit for Growth program, I think you've said you have only EUR 250 million cost savings in 2025 and a lot more next year.

A question indeed on cost savings because I think Q3 was a bit closer.

<unk> and bought by cost savings when we think about this doesn't 26 outlook I mean, I'm aware of that's probably a bit too early.

Discussing about 26 box.

Specifically in the Express division.

If we think about an environment, where macro does not improve you have got pricing that offset inflation.

Let's say the year over year improvement will be driven by cost savings.

And then.

In your fit for growth program I think you've said you have call. It 150 million of cost savings in 'twenty, five and a lot more next year.

Is my statement.

Statement of express growth for next year of three or $400 million year over year right.

Marco Limite: Is my, let's say, statement of, you know, Express growth next year of EUR 300, 400 million year-over-year, right if, you know, with your macro stable and all coming from cost savings? That you think is a bit too bullish and I'm missing something else? Yeah, maybe this is the first question. My second question is on your full year 2025 outlook. You have reported, you know, 3 quarters here to date up year-over-year, and your current guidance at the low end implies Q4 down year-over-year. Yeah. Is that just, let's say the low end is gonna be more cautious or how to explain that? I mean, do you just expect the e-commerce season being particularly bad or any color on that would be helpful.

Marc Limite: Is my, let's say, statement of, you know, Express growth next year of EUR 300, 400 million year-over-year, right if, you know, with your macro stable and all coming from cost savings? That you think is a bit too bullish and I'm missing something else? Yeah, maybe this is the first question. My second question is on your full year 2025 outlook. You have reported, you know, 3 quarters here to date up year-over-year, and your current guidance at the low end implies Q4 down year-over-year. Yeah. Is that just, let's say the low end is gonna be more cautious or how to explain that? I mean, do you just expect the e-commerce season being particularly bad or any color on that would be helpful.

Tobias Meyer: On page three, you see a statistic, a graph that we publish in conjunction with our Global Connectedness Tracker. Those of you who follow us more closely have been doing this for some years in collaboration with NYU Stern. We found it worthwhile to highlight that the average distance of trade has continued to grow, actually reaching a record high. There is a strong narrative out there that talks about regionalization and friend-shoring, and there might be reasons for such trends. The fact of the matter is that long-distance trade continues to grow. We have massive shifts that we see in our company, but also beyond, due to the changes in US trade policy. We also see that other trading partners continue to expand. I think most notably, that was visible in the September export figures of China, where trade to the US was down 27%.

With fewer macro stable and ore coming from cost savings or do.

Do you think is a bit too bullish and I'm missing something else.

Yes.

Maybe this is the first question and.

My second question is on <unk>.

For a full year 25 outlook.

No have reported.

Three quarters year to date up year over year and your current guidance at the low end implies Q4 dollars year over year.

Yes.

Is that just let's say the low end as <unk> become more cautious or how do you explain that I mean.

Just e-commerce season being.

Particularly bad or any color on that would be it.

Okay.

So maybe I'll take the first question and then Melanie can comment on the 2025 outlook.

Tobias Meyer: Maybe I take the first question and then Melanie can comment on the 2025 outlook. I think in the current environment to say what a stable macro means, we find this relatively difficult. If you look on the macro assumptions that we based, Strategy 2030 on, and we rely on external sources, that has been very disappointing. Not only as it relates to trade and what has happened with tariffs in the US, but also the continued weakness in Europe, especially Germany. Germany having the 3rd year without growth. We will provide guidance in due course. We are in that process. We'll obviously continue the focus on cost savings, the cyclical part, but more important also the structural part.

Look I think in the current environment to say, what a stable macro means.

We find this relatively difficult.

If you look on the macro assumptions that we based strategy 2030 on and we rely on external sources that has been very disappointing not only as it relates to trade and what has happened with tariffs in the U S. But also the continued weakness in Europe, especially Germany, Germany.

Tobias Meyer: You had double-digit growth in the trade with Southeast Asia, with the trade of Europe as well, and particularly the trade to the Middle East and Africa was growing a lot, Latin America as well. These being long-haul trades and that compensating for some of the decoupling that we see as it relates to the US, which clearly has a lower share of participation in global trade and is increasingly replaced by China as the most important trading partner for many countries in the world. That is also visible on page four when it comes to our volumes here. A focus on the time-defunct international piece, so that specific segment of DHL Express. You see, by and large, the trend from the second quarter continuing, especially the decline on the US-bound trade, the US inbound, that is. We see also.

Having the third year with our growth so.

We will provide guidance.

In due course.

We are in that process, we will obviously continue to focus on cost savings the cyclical part, but more important also the structural part we see ourselves could under way.

Tobias Meyer: We see ourselves good underway. I think we need to wait a bit more to see with what run rate we really now exit 2025. We have, you know, picked up momentum in some areas as it relates to contract closings, for instance, in supply chain, which is also needed to get back on a solid growth term. We need to see now what happens on the US side with IEEPA and how that turns out. These are all factors that will play out in 2026.

But I think we need to wait a bit more.

Do you see with what run rate, we really know exit 2025, we have.

Picked up momentum in some areas as it relates to contract closings for instance in supply chain, which is also needed to.

To get back on a solid growth.

Term, we need to see now what happens on the U S side with our <unk> and how that turns out. So these are all factors that will play out in 2026.

Tobias Meyer: Some other trades or US exports being somewhat under pressure as input factors for US producers get more expensive. If aluminum is double the price in the US than it is in other parts of the world, it's obviously difficult to produce cost-competitive products. That is something that will continue to influence global trade and thereby our customers and the business that we do with them. As spoken, the de minimis now being abolished also for the rest of the world, that had a notable impact on volumes, less so for us on profitability because we were able to counteract that. Also, we see that some volumes are declining that have been not so profitable for us to start with, so that also impacts our overall results. The cost action is very important. On page five, you see some details on that.

Okay, sorry, just a follow up on that are asking the same question a different way can you confirm that you still have got added.

Marco Limite: Okay. Sorry, just a follow-up on that. Asking the same question a different way. Like, can you confirm that you still have got additional EUR 750 million cost savings next year and only EUR 250 million cost savings in 2025 from the EUR 1 billion Fit for Growth program? Thank you.

Marc Limite: Okay. Sorry, just a follow-up on that. Asking the same question a different way. Like, can you confirm that you still have got additional EUR 750 million cost savings next year and only EUR 250 million cost savings in 2025 from the EUR 1 billion Fit for Growth program? Thank you.

Additional 750 million of cost savings next year, and only the 150 million cost savings in 'twenty five from the 1 billion program.

So as I said, we are actually ahead.

Tobias Meyer: As I said, we are actually ahead on the Fit for Growth measures. Also in that respect, we will already see more benefits in the current year. As Tobias said, we will give guidance for 2026 in March. There will be a positive contribution year-over-year from Fit for Growth going into the next year. We also have some negatives. For example, in P&P it will be the second year of the price regulation. Then we have the macro question mark. We will put all that together for our guidance in March. With regards to Q4, yes, I follow the mathematics and the year-over-year comparison.

Melanie Kreis: As I said, we are actually ahead on the Fit for Growth measures. Also in that respect, we will already see more benefits in the current year. As Tobias said, we will give guidance for 2026 in March. There will be a positive contribution year-over-year from Fit for Growth going into the next year. We also have some negatives. For example, in P&P it will be the second year of the price regulation. Then we have the macro question mark. We will put all that together for our guidance in March. With regards to Q4, yes, I follow the mathematics and the year-over-year comparison.

On the fit for growth measures in that respect.

Already seen more benefits.

In the current year.

As <unk> said, we believe this guidance.

For 2006 in March.

The positive contribution year over year from fit for growth going into the next year. We also have some negatives for example in Pnp it'll be the second year.

Of the price regulation and then we have the macro question Mark when you put all that together for our guidance in March.

Tobias Meyer: Aviation costs down 8.5% in the quarter. That's hard work. We are really pleased to see that. The Express Aviation team has been able to deal with that very professionally. Service was very good in the quarter. We are also really looking forward to the fourth quarter across all divisions. I think we're very well prepared with our setup to deliver excellent quality. We do that in good balance with strengthening our cost competitiveness. We have adjustments that are more cyclical, ramping down capacity, shifting capacity. On top of that, structural measures, which we have under the program Fit for Growth, really make us a better company in many ways. Cost competitiveness is an important part of our growth journey going forward as well. We see ourselves in making good progress on that.

With regards to Q4, yes, I follow the mathematics.

And the year over year comparison, I think one important element also linked to the first part of your question. We do plan further cost of change bookings for.

Tobias Meyer: I think one important element also linked to the first part of your question, we do plan further cost of change bookings for Q4. In total, we will probably have cost of change up to EUR 200 billion. Half has already happened, that means that we will also do some more cost of change in Q4. As we guide on reported EBIT, that is of course all included in our EBIT guidance.

Melanie Kreis: I think one important element also linked to the first part of your question, we do plan further cost of change bookings for Q4. In total, we will probably have cost of change up to EUR 200 billion. Half has already happened, that means that we will also do some more cost of change in Q4. As we guide on reported EBIT, that is of course all included in our EBIT guidance.

For the fourth quarter.

So in total.

We will probably have crossed a change up to 200 million half has already happened, but that means that we will also do some more cost in.

In Q4, and as we guide on reported EBIT.

Of course, all included in our EBIT guidance.

Hey, Michael Okay.

Thank you. Thank you.

Operator: Okay, Marco?

Tobias Meyer: Okay, Marco?

Next question comes from <unk> <unk> with Morgan Stanley. Please mute your line and ask a question.

Marco Limite: Okay.

Marc Limite: Okay.

Operator: Yeah.

Marco Limite: Thank you much.

Marc Limite: Thank you much.

Operator: Thank you. Next question comes from Cedar Ekblom with Morgan Stanley. Please unmute your line and ask your question.

Star six.

Okay.

Tobias Meyer: Star six.

And here you can see that yet.

Alexia Dequesne: Can't hear you, Cedar, yet.

Melanie Kreis: Can't hear you, Cedar, yet.

Tobias Meyer: We keep the discipline that you used from DHL Express, but also the other divisions when it comes to yield. That's clearly also supportive of the result in the quarter. Some more examples on P&P on the following page six. Maybe before I go on to the profitability accelerators, it's important to note that the volume in the quarter for P&P had some shifts for some goods carrying products between letter and parcel. There are details in the backup on that. If you look on an organic basis, parcels were up around 2%. We had normal ups and downs in the volume of mail as well. The advertising mail had been quite weak in the third quarter of 2024. Year on year, it looks quite positive. Overall, when it comes to letter volume in Germany, there is no change to any trends.

Hello.

If he can morning, okay perfect. Good thank you.

Cedar Ekblom: Hello?

Tobias Meyer: Ceda.

Tobias Meyer: Cedar.

Alexia Dequesne: Yeah, now we can. Morning.

Melanie Kreis: Yeah, now we can. Morning.

I've got two questions. So firstly on the <unk>.

Cedar Ekblom: Okay, perfect. Good. Thank you. I've got two questions. Firstly, on the AI rollout that you guys talk about, have you thought what you could quantify those cost savings at, considering we've got head count down a couple of % versus the end of 2024? I don't know if you could put some numbers around sort of lowering cost to serve. Maybe it's too early in the process, but that would be interesting to understand. The second question is just related to sort of the macro outlook that you talked about, Tobias, at the beginning, on your Global Connectedness tracker. That obviously points to a world where global trade as a multiplier of GDP should continue to be pretty solid.

AI rollout that you guys talk about have you thought what you could quantify those cost savings Act considering we've got head count down a couple of percentage versus the end of 2020 for I don't know if you could put some numbers around sort of lowering cost to serve maybe it's too early in the process, but that would be interesting to understand.

And then the second question is just related to sort of the macro outlook that you talked about at the beginning I'm on your global Connectedness tracker.

That obviously points to a world where global trade as a multiplier of GDP.

Should continue to be pretty solid and I am not so sure that that is consistent with the mix that you gave at the capital markets day, where we had that sort of long term trend that saw that decelerating.

Cedar Ekblom: I'm not so sure that that is consistent with the message you gave at the Capital Markets Day, where we had that sort of long-term trend that saw that decelerating. The broader question here is you are not growing your volumes in the businesses that are sort of most geared into global trade, sort of freight forwarding and express. I wonder, is it a case where the global market might continue to grow overall, but the verticals that are actually profitable for your business become far more niche? I suppose, you know, the overall market can grow, but can your business grow overall, or is it a case that there's only certain segments that remain profitable? It's a bit of a macro question. Thank you.

But the broader question here is you are not growing your volumes in the businesses that are sort of most geared into global trade sort of freight forwarding and expertise.

Tobias Meyer: We still see that on the path that we talked about earlier. Now, coming to the concrete measures that helped us also improve profitability to the level that we've now seen, which is in line with the guidance that we've provided, AB steering. This is something that we can now do to a greater extent because of the lead time extension we got for the standard letter, so that those standard letters are only brought to every address every second day, staying within the allowed lead time, but allowing for some efficiencies in that last mile and skipping households where we would otherwise only have a single letter on Monday and Tuesday, for instance. Now we bundle that to two letters on Tuesdays. That's what's meant with that AB steering. Joint delivery is something that we have been on for a long time.

And I Wonder is it a case, where the global market continued to grow overall, but the verticals that are actually profitable for your business become far more niche. So I suppose the overall market can grow but can catch all business grow.

Overall or is it a case that there is only certain segments that remain profitable.

Sort of a macro question. Thank you.

Yes. Thank you for both of those questions I think for AI, we would not quantify this I think this is also very difficult to do.

Tobias Meyer: Yeah. Thank you, Cedar. For both of those questions, I think for AI, we would not quantify this. I think this is also very difficult to do. You know, this technology is ultimately becoming a part of many, many applications that we use. We have dedicated programs as for customs, where we also drive that with own capacity, and that's easier to measure. Even that will quickly, you know, infiltrate into normal productivity increasements and the like. Singling out the AI effect, as important as that, you know, emerging technology and very helpful technology is something that we see as difficult. While we continue to report and give updates on how we use it, and at least on a qualitative level, how it connects to our figures.

This technology is.

Ultimately, becoming a part of many many applications that we use we have dedicated programs as for customs, where we also drive that with open capacity and thats easier to measure.

Tobias Meyer: It's a really big program because it requires us to rebuild infrastructure to a great extent. That is really very important in the long run to strengthen the efficiency of the system to ultimately become a parcel carrier that also carries some mail. We're now at 69% of parcels being jointly delivered with mail. That's steadily progressing and supporting the much-needed efficiency within P&P. Out-of-home continues to be a focus. We continue to invest in that. We are as close to consumers as we ever were in Germany, and that is strengthening our position in that market. Also, on the support functions, we are nimble and efficiency-focused, which you also see in the numbers. Technology plays an important role. On page seven, there are some examples how we also deploy agentic AI.

But even that will quickly.

Infiltrate into normal productivity increase men's and the like so singling out the AI effect is important is that.

Emerging technology and very helpful technology is.

Something that.

We see is difficult, but we will continue to report and give updates on how we use it.

At least on a.

Qualitative level, how it connects to our figures.

As it relates to the macro outlook I think we would stay with the view that we've shared that there is a deceleration also in the multiply the multiplier.

Tobias Meyer: As it relates to the macro outlook, I think we would stay with the view that we've shared that there is a deceleration also in the multiplier. The multiplier was significantly above 1 since at least 1990. That is not what we expect going forward. The narrative that is out there of the regionalization is a Western perspective, and it's not a global perspective. China continues to globalize. Now, in terms of us benefiting from that, it's not falling into our lap. That's I think a fair observation. There's some also industry sectors that we have strong exposure to that are not gonna deliver the growth in Express.

Was significantly above one.

Since at least 90 90.

And that will that's not what we expect going forward, but the narrative that is out there of the regionalization.

Tobias Meyer: Outside Europe, we have support for frontline recruiting, for instance, the pre-qualification, the initial interview of somebody who wants to work for DHL, an applicant. That's done with the support of AI customer service, probably across industries, the most common use case that is also visible in our company. More specifically, on customs, it's very helpful not only from an efficiency point of view, but agentic AI also does an excellent job in documenting the sources that were used for classification, so on the regulatory side, but also on the goods description side. That does not only increase efficiency, but also service quality and compliance, very important in this area, especially when we talk about US clearances, an important component of our success there. I think we have been leading in providing continued great service into the US in recent months. That's something where this also contributed.

Western perspective, and is not a global perspective, China continues to globalize.

Now in terms of us benefiting from that it's not falling into all App. That's I think a fair observation. There is some also industry sectors that we have strong exposure to that are not going to deliver the growth in express.

It is a story of an industry that has taken share from the general freight market over the last 40 years by expanding its capability and that's what we need to do it.

Tobias Meyer: it is a story of an industry that has taken share from the general air freight market over the last 40 years by expanding its capability, that's what we need to do to be able to continue to grow. That we have express cold chain capability, for instance, to have access to the sector that we're absolutely convinced will continue to globalize. The US has a very unique point being the world's largest market and thereby being able to force companies to produce there. The rest of the world doesn't have that choice. Maybe China is the only second one to that. you will not produce modern pharmaceutical, biogenetic pharmaceuticals in 20 places on this planet. This is just not what our customers tell us.

To be able to continue to grow that we have express cold chain capability for instance to have access to the sector that we're absolutely convinced we will continue to globalize.

The U S has a very unique point being the worlds largest market and thereby being able to force companies to produce there. The rest of the world doesn't have that choice, maybe China is the only second one to that.

Tobias Meyer: On service logistics, dispatch calls, for instance, following up on the dispatch of trucks is one of those areas where AI also comes in handy. When we look at growth accelerators on the following page eight, we continue to invest organically, roughly at the same level as we had in previous years. This goes into infrastructure that improves our quality, like in Barcelona and Helsinki for Express, but also investments that unlock new revenue streams, particularly in geographies like Middle East and Africa, where we're really getting into new verticals as well for supply chain especially. The ongoing expansion we have in our last mile activity continues. We do targeted M&A, and we also had such in the third quarter as it relates to the merger of our e-commerce operations in UK with EVRY. That is a consolidating move.

You will not produce modern pharmaceutical bio generic pharmaceuticals in 'twenty places on this planet is just not what our customers tell us. These modern technologies are going to be highly concentrated which means that for the rest of the world to participate in that technological progress that will be.

Tobias Meyer: These modern technologies are gonna be highly concentrated, which means that for the rest of the world to participate in that technological progress, there will be trade. That's what we see happening with a different focus. That's what we expect going forward. Again, something that we need to actively address geographically, but also as it relates to our capability portfolio, and that's what we are working on and need to deliver on to be able to show a stronger growth. I think we have a good track record in Supply Chain with that gradual expansion of our capability portfolio, it's clearly, a strong focus point for Express and Global Forwarding as we go into the year 2026.

Trade, that's what we see happening with a different focus and.

And that's what we expect going forward again, something that we need to actively address geographically, but also as it relates to our capability portfolio and Thats. What we are working on and need to deliver on to be able to show stronger growth I think we have a good track record.

In supply chain would that gradual expansion of our capability portfolio.

But it's clearly.

Strong focus point for express and global forwarding.

Tobias Meyer: We believe we need to be amongst the top three players in every e-commerce last-mile market that we're in. If we're not able to reach this organically, we'll do so inorganically. We have announced a similar move for Iberia earlier in the year. We have now closed the transaction in the UK, getting into such a market-leading position with that participation in the merged entity. We did a small acquisition in the US that gives us access to specific capability on healthcare-orientated last-mile hospital logistics. With our investment in AJAX, we get access to last-mile activities in the Gulf Corporation Council countries. Again, an expansion of our footprint, which is part of the strategy that we have communicated. Similarly, we support the strategy with the strengthened management focus. We have a dedicated team for supply chain Middle East and Africa that has been executed in the third quarter.

As we go into the year 2026.

Fantastic. Thank you so much.

Our next question comes from Alex <unk> with Bernstein. Please mute your line and ask your question.

Cedar Ekblom: Fantastic. Thank you so much.

Operator: Our next question comes from Alex Irving with Bernstein. Please unmute your line and ask your question.

Hi, Good morning, two for me. Please first of all on express into the peak season, both on volume and the success of the surcharge, how you're seeing that develop please.

Alex Irving: Hi. Good morning. Two for me, please. First of all, on Express into the air peak season, both on volume and on the success of the surcharge, how are you seeing that develop, please? Second, also on Express, you've taken out quite a lot of costs year-over-year. How much of that we need to add back as and when volumes rebound? Maybe related to that, where is the weight load factor currently, both year-over-year and also relative to your view of a normalized baseline? Thank you.

Second also in express you've taken out quite a lot of cost year over year, but how much of that we need to add back as and when volumes rebound maybe related to that whereas the weight load factor currently both year over year and also relative to your view of a normalized baseline. Thank you.

And so I think with regard to the express and peak season, maybe.

Melanie: As I think with regard to the Express peak season, maybe not just in Express but also in the other businesses where we see a peak season, we do expect that there will be a B2C peak season. How dynamic that will be remains to be seen. We clearly expect the seasonal increase in the B2C volumes, and we are prepared for that in Express, of course, also in Post and Parcel Germany and the eCom divisions. With regard to the demand surcharge driven by this seasonal additional stress on the system, we are on track with the implementation. We do expect the positive cost offset from that seasonal surcharge also in Q4 of 2025.

Melanie Kreis: As I think with regard to the Express peak season, maybe not just in Express but also in the other businesses where we see a peak season, we do expect that there will be a B2C peak season. How dynamic that will be remains to be seen. We clearly expect the seasonal increase in the B2C volumes, and we are prepared for that in Express, of course, also in Post and Parcel Germany and the eCom divisions. With regard to the demand surcharge driven by this seasonal additional stress on the system, we are on track with the implementation. We do expect the positive cost offset from that seasonal surcharge also in Q4 of 2025.

Maybe not just inexpensive but also in the other.

This means is that we see at peak season, we do expect that there will be a b to C peak season, how dynamic that remains to be seen on that until we clearly expect the seasonal increase in the b to C volumes and we are prepared for that and express.

Tobias Meyer: We just announced that we'll also have a similar move with DHL Global Forwarding as it relates to Latin America. We want to have senior leadership in the region to drive the growth of those businesses. That's part of our strategy execution as well. That already brings me to my summary on page nine. We cover the short-term volatility that the business is exposed to. We're successful in protecting earnings and cash flow generation in that environment by doing the cyclical capacity flex, which I believe was highly effective also in this quarter, and also work on the structural measures that make us more competitive in the mid to long term through the Fit for Growth initiatives, including increased deployment of technology such as AI-based tools. In the long term, we saw progress in the quarter with those organic investments, the targeted M&A.

Also in a post in passenger army in the E com divisions.

With regard to <unk>.

So the yeah demand surcharge driven by this seasonal additional stress on the system.

We are on track with the implementation. So we do expect the positive cost offset from that seasonal surcharge also in the fourth quarter of 'twenty five.

With regard to how much of the cost improvement is there to stay.

Melanie: With regard to how much of the cost improvement is there to stay, as I said before, it is a mix, what we see at the moment between volume-induced capacity adjustments and structural growth levers. Of course, when volumes come back, we will eventually also flex back with capacity. We also think that those structural Fit for Growth measures will give a lasting benefit. We can't quantify that to the very precise number. With regard to weight load factor, well, given the current volume and weight situation, we are still not at an optimal point. The cost measures are helping. Of course, ultimately that is still a fixed cost network, where it is more enjoyable when there is more volume and weight.

Melanie Kreis: With regard to how much of the cost improvement is there to stay, as I said before, it is a mix, what we see at the moment between volume-induced capacity adjustments and structural growth levers. Of course, when volumes come back, we will eventually also flex back with capacity. We also think that those structural Fit for Growth measures will give a lasting benefit. We can't quantify that to the very precise number. With regard to weight load factor, well, given the current volume and weight situation, we are still not at an optimal point. The cost measures are helping. Of course, ultimately that is still a fixed cost network, where it is more enjoyable when there is more volume and weight.

Say it before and it is.

Mix, what we see at the enrollment between volume and used capacity adjustments and structural growth leave us. So of course when volumes come back. They will eventually also flex back with capacity, but we also think that the.

Structural fit for growth measures will give a lasting benefit but we cant quantify that.

Towards the very precise.

Tobias Meyer: We see ourselves making good progress on those structural elements of our growth journey towards Strategy 2030. That is important to accelerate our growth trajectory in 2026 and 2027. We're aware that additional momentum is needed. With that, I would hand it over to Melanie to give you some more details on the financial performance of the divisions in the third quarter. Yeah, thank you very much, Tobias, and good morning and welcome also from my side. Thank you for joining our Q3 earnings call. I will start on page 10 with the main takeaways by division. For DHL Express, Tobias already explained the effectiveness of our cost and yield measures. Reported express EBIT contains a net negative EUR 54 million from non-recurring effects, mainly related to a legal provision, as well as some smaller cost of change and M&A effects.

Number with regard to weight load factor.

While it gives them the current volume innovate situations, we are still not at an optimal point.

So the cost measures are helping but of course ultimately that is still a fixed cost network there.

More enjoyable when there is more volume and rate.

I mean also with regard to margin we have seen a good development, but this is not our ultimate margin goal.

Melanie: I mean, also with regard to margin, we have seen a good development. This is not our ultimate margin goal. I think very well managed given the circumstances. We look forward to the moment when volumes come back.

Melanie Kreis: I mean, also with regard to margin, we have seen a good development. This is not our ultimate margin goal. I think very well managed given the circumstances. We look forward to the moment when volumes come back.

So I think very well managed given the circumstances.

We look forward to the moment when volumes come back.

Alright, thank you.

Thank you.

Michael Aspinall: All right. Thank you.

Alex Irving: All right. Thank you.

Our next question comes from Michael Aspinall with Jess Jefferies. Please on mute your line and ask your question.

Melanie: Thank you.

Alex Irving: Thank you.

Operator: Our next question comes from Michael Aspinall with Jefferies. Please unmute your line and ask your question.

Yes, Tobias Melanie and mountain Michael hit from Jefferies a couple unexpressed.

Michael Aspinall: Yeah. Good day, Tobias, Melanie, and Martin. Michael here from Jefferies. A couple on Express. On the Express rest of world, kind of impact, it was mostly lower volumes. Maybe you can just talk to us as to why that is. I'm just thinking about the characteristics of those products. Are they kind of highly desirable B2C products or B2B that still need to move? Just thinking kind of what's happening underneath the numbers.

The express rest of world.

End of impact it was mostly level of volumes may be you can just talk to us as to why that is and just thinking about the characteristics of those products.

Tobias Meyer: It's worth pointing out that excluding these non-recurring items, express EBIT was actually up 9% year over year. In forwarding freight, we have seen similar market dynamics as our peers. In comparison, we have been performing relatively well in the quarter with underlying ocean freight volume growth of 5% and increases in GP and GP per ton in air freight, both year over year and quarter over quarter, all leading to forwarding EBIT being up versus Q2. That being said, we are clearly not where we want to be with DGFF, and Oscar DeBock is implementing structural improvements. Supply chain continues to perform very well. Yes, we see somewhat slower growth in current circumstances, with both currency headwinds, as well as impacts from the general environment.

Highly desirable BTC products or <unk> that still need to move just thinking kind of what's happening underneath the numbers.

I think what we already assumed in August or what was kind of like our hope to keep us away from the worst case scenario was that.

Melanie: I think what we already assumed in August or what was kind of like our hope, to keep us away from the worst case scenario was that particularly the higher valued shipments which had entered into the US under the de minimis rule, that they would be more resilient. I mean, you had lots of machinery spare parts, valued below $800 going into the US under the de minimis. Our base case hypothesis was that these volumes would keep moving. Of course then with clearance, and that is what we have now seen happening. Particularly the very low value B2C stuff has seen the impact partially also because customers are then changing to different forms of transporting B2C into the US.

Melanie Kreis: I think what we already assumed in August or what was kind of like our hope, to keep us away from the worst case scenario was that particularly the higher valued shipments which had entered into the US under the de minimis rule, that they would be more resilient. I mean, you had lots of machinery spare parts, valued below $800 going into the US under the de minimis. Our base case hypothesis was that these volumes would keep moving. Of course then with clearance, and that is what we have now seen happening. Particularly the very low value B2C stuff has seen the impact partially also because customers are then changing to different forms of transporting B2C into the US.

Particularly the higher valued them.

Shipments, which had entered into the U S. Under the de Minimis rule and that they would be more resilient. So I mean, you had lots of.

Machinery spare parts and valued below $800 building into the U S. Another de minimus in our base case hypothesis was that these volumes would keep moving but of course, then with clearance and that is what we have now seen happening.

So.

And at the very low value would be to see stuff.

Tobias Meyer: The structural growth tailwinds are intact for that division, as reflected in very good new business signings with EUR 1.4 billion new contract value in Q3. One of the key drivers of these customer wins, as well as a strong 6%+ margin, is our leading digitalization, automation, and standardization setup. In DHL E-commerce, EBIT includes a mix of non-recurring effects, which I will address on the next page. Fundamentally, Q3 confirmed the intact structural e-commerce growth opportunity, which is not yet translating into accelerated profits as we keep investing into our network in this division. Last but not least, P&P is delivering very well on its strategic plan. Tobias has shown earlier the structural network changes, which we are successfully implementing under Fit for Growth. The Q3 numbers show that our measures are working with a year-over-year EBIT increase, both on a reported and an underlying basis.

<unk> has seen the impact partially also because customers are then changing two different forms of transporting DTC into the U S.

But we have seen more resilience on the b to B side and that explains the difference between the minus 23% <unk> volume decline in the minus two 2% of <unk>.

Melanie: We have seen more resilience on the B2B side. That explains the difference between the minus 23% B2C volume decline and the minus 2.2% B2B.

Melanie Kreis: We have seen more resilience on the B2B side. That explains the difference between the minus 23% B2C volume decline and the minus 2.2% B2B.

Alright.

Two other smaller ones.

Michael Aspinall: Great. 2 other just small ones. In Express on TDI volumes, Europe improved sequentially a little bit from minus 3% to minus 1% in Q3. Is there anything underneath that to read into in terms of Europe getting better or not really yet?

Expressed on TDI volumes, Europe improved sequentially, a little bit from minus 3% to minus 1% in <unk> is there anything underneath that to read into in terms of youre getting better we're not really it.

I think that's the glass half full glass half empty question. So yes, four minus three to minus 1% is moving in the right direction can be satisfied with minus 1% clearly not so.

Melanie: I think that's a glass half full, glass half empty question. Yes, from -3% to -1% is move in the right direction. Can we be satisfied with -1%? Clearly not. Yeah, I think at the moment we still see a more stagnant European development than we all would have hoped for.

Melanie Kreis: I think that's a glass half full, glass half empty question. Yes, from -3% to -1% is move in the right direction. Can we be satisfied with -1%? Clearly not. Yeah, I think at the moment we still see a more stagnant European development than we all would have hoped for.

At the moment, we still see a more stagnant European development than the oil would have hoped for.

Tobias Meyer: Which brings me to our Q3 EBIT bridge on page 11. In Q3 2024, we had a EUR 70 million positive one-off effect in P&P. If you adjust for this, as well as this year's non-recurring effects, our reported 7.6% year-over-year EBIT increase was actually a 10% growth excluding non-recurring items. On the main effects in this quarter, we are showing them very transparently on this page. There are in total EUR 37 million cost of change across Express, Global Forwarding Freight, and DHL E-commerce. I already talked about the net minus EUR 54 million in Express being primarily driven by a legal provision. Now, to the big number in DHL E-commerce. We handed over control for our UK e-commerce business to Evri at the end of the quarter, which led to a positive deconsolidation gain.

Okay, Great and last one sorry, just within three I think you don't really get into fuel hedging and express maybe you can just remind us on that and similarly, if theres no hedging, but you would expect lower fuel surcharges would that normally help on the volume front.

Michael Aspinall: Okay. Great. Last one, sorry to slip in three. I think you don't really get into fuel hedging in Express. Maybe you can just remind us on that. Similarly, if there's no hedging, but you'd expect lower fuel surcharges, would that normally help on the volume front?

So on the fuel side and the Isabela established mechanism and DHL Express, but also in the industry are they gonna have a fuel surcharge until there is a bit of a time lag in about six weeks.

Melanie: On the fuel side, there's a well-established mechanism in DHL Express, but also in the industry, where you have a fuel surcharge. There is a bit of a time lag, about six weeks. Fundamentally, you then adjust, and pass fluctuations in underlying fuel price onto the customer.

Melanie Kreis: On the fuel side, there's a well-established mechanism in DHL Express, but also in the industry, where you have a fuel surcharge. There is a bit of a time lag, about six weeks. Fundamentally, you then adjust, and pass fluctuations in underlying fuel price onto the customer.

But fundamentally you then adjust.

And part of.

In fact fluctuations in underlying fuel price onto the customer.

Volume.

Volume elasticity is relatively low to that.

Tobias Meyer: The volume elasticity is relatively low to that.

Okay, great. Thank you.

Michael Aspinall: Okay. Great. Thank you.

Our next question comes from Christian <unk> with UBS. Please on mute your line and ask your question.

Operator: Our next question comes from Cristian Nedelcu with UBS. Please unmute your line and ask your question.

Hi.

I Hope you can hear me, saying, thank you very much for giving me the chance to ask their questions.

Cristian Nedelcu: Hi. I hope you can hear me. Thank you very much for giving the chance to ask the questions. Can I ask the first one in Express, your competitors are talking about adding air capacity on Intra-Asia and Asia-Europe. I believe, and correct me if I'm wrong, but I believe those are usually trade lanes where your Express margins are higher than the divisional average. How do you see the risk of potential market share losses or margin compression there in 2026? The second one, maybe a small one on the Q3 Express. For what concerns the US, we've heard about the postal operators temporarily stopping deliveries to the US in September. There's been maybe also some de minimis front-loading in August.

Tobias Meyer: This positive effect is partially balanced by cost of change, as well as a total of EUR 42 million in non-cash write-downs for a full net positive effect of EUR 123 million in the quarter. We are explaining the accounting effects of the UK transaction on the dedicated e-com page in the backup, so I won't go through the accounting details now, but be aware that going forward, we will no longer fully consolidate our UK e-commerce business, but recognize the pro-rata net income of our 30% stake in the combined entity in EBIT in line with the net equity accounting rules. That was a bit on accounting. Now, sticking to the P&L, turning to page 12, some more comments on the overall P&L. I think it's worth pointing out here that the 2.3% revenue decline is about equivalent to the minus 2.4% FX effect in the quarter.

Can I ask the first one in express.

<unk> are talking about adding air capacity on intra Asia and in Asia, Europe, and I believe and correct me if I'm wrong, but.

I believe those are usually.

Trade lanes, where Youre express margins are higher than the divisional average so how do you see the risk of.

Potential market share losses, or our margin compression there in 2026.

The second one.

Maybe a small one on the Q3 xpress.

For what concern the U S. We've heard about the postal operators temporary stopping deliveries today.

The U S in September.

Theres been may be also some de minimis from loading in August.

Where did those bring any any benefits to the profitability in express in Q3 that may not repeat.

Muneeba Kayani: Did those bring any benefits to the profitability in Express in Q3 that may not repeat going forward? The last one on Express, very useful the chart you offer with the weights into different regions. Looking at Q2 and Q3 and just focusing on Europe, you know, weights down 3%, weights down 1%. If I compare it with the CTS ocean volumes into Europe, those have been growing around 10% year-over-year. Air freight capacity into Europe overall is also up high to low, high single digit, low double digits. I guess my question is a bit what do you think is driving the underperformance of Express versus Ocean and Air Cargo? Only when we focus on Europe.

Cristian Nedelcu: Did those bring any benefits to the profitability in Express in Q3 that may not repeat going forward? The last one on Express, very useful the chart you offer with the weights into different regions. Looking at Q2 and Q3 and just focusing on Europe, you know, weights down 3%, weights down 1%. If I compare it with the CTS ocean volumes into Europe, those have been growing around 10% year-over-year. Air freight capacity into Europe overall is also up high to low, high single digit, low double digits. I guess my question is a bit what do you think is driving the underperformance of Express versus Ocean and Air Cargo? Only when we focus on Europe.

Tobias Meyer: While lower freight rates and US tariffs were a headwind to growth, that also implies this revenue development overall also implies that on other trade lanes, in regions and verticals, we saw continued growth, as Tobias already pointed out before. On the cost side, you see the benefits of our capacity flex and structural cost measures taking effect in terms of significantly lower cost for external capacity, as well as in the reduction in staff costs. At the bottom of the P&L page, you see that our continuous and consistent share buyback activity is driving a significant step-up in earnings per share growth in Q3 to 16% year over year. Coming now to the key points in our cash flow statement on page 13, EBIT growth is translating into higher growth of operating cash flow before changes in working capital.

Going forward and the last one on an express very useful the chart you offer.

With the weights into different regions.

And.

Looking at Q2, and Q3 and just to just focusing on Europe.

It's down 3% weighs down 1%.

If I compare it with the.

Cts Ocean volumes into Europe, those have been growing around 10% year over year.

Airfreight capacity into Europe overall is also up.

I too low high single digit low double digits. So I guess my question is that would be what do you think is driving the under performance of express versus Ocean and air cargo only when we focus on on Europe. Do you think is it could be market share loss do you think it could be down trading or other factors that could explain that thank you.

Muneeba Kayani: Do you think it could be market share loss? Do you think it could be down trading or other factors that could explain that? Thank you.

Cristian Nedelcu: Do you think it could be market share loss? Do you think it could be down trading or other factors that could explain that? Thank you.

Yeah.

And so maybe starting with <unk>.

Melanie: Yeah. Maybe, starting with the third one. The missing element in the comparison is the intra-European business, where obviously air and ocean freight statistics don't show what is happening intra-Europe, but that's a big part of our Express business, and that has clearly not been the most dynamic. That explains the difference there. Staying with the trade lane questions. Yeah. I mean, the fact that intra-Asia and Asia to Europe is developing more favorably, which is why others are apparently thinking about moving capacity there, is ultimately a good thing because those trade lanes are strong trade lanes for us and a good position in terms of profitability. I see it more positive if intra-Asia and Asia to Europe is developing favorably. And, yeah.

Melanie Kreis: Yeah. Maybe, starting with the third one. The missing element in the comparison is the intra-European business, where obviously air and ocean freight statistics don't show what is happening intra-Europe, but that's a big part of our Express business, and that has clearly not been the most dynamic. That explains the difference there. Staying with the trade lane questions. Yeah. I mean, the fact that intra-Asia and Asia to Europe is developing more favorably, which is why others are apparently thinking about moving capacity there, is ultimately a good thing because those trade lanes are strong trade lanes for us and a good position in terms of profitability. I see it more positive if intra-Asia and Asia to Europe is developing favorably. And, yeah.

So.

Tobias Meyer: There are numerous movements across different lines in the cash flow statement, but ultimately, this growth in OCF before changes in working capital shows that while there are some moving parts in our EBIT bridge, the earnings quality of our EBIT growth is very healthy, and that is very important. Working capital changes contributed positively to cash flow in the quarter, with the main contribution coming from DGFF. This is, for me, another useful reminder that while we have work to do on DGFF, the business model of an asset-light forwarder is attractive through the cycle, with working capital being one of the factors protecting the cash flow generation of the model. Strong growth in operating cash flow, coupled with ongoing investment control, led to a very good free cash flow in Q3.

Missing element in the comparison is the entire European business, there, obviously and ocean freight statistics don't sure what is happening intra Europe, but that's a big part of our express business and that has clearly not been the most dynamic so that explains the difference they're staying with the trade lane questions. So.

Yeah.

The fact that intra Asia and Asia to Europe.

Hello team will favorably, which is why others are apparently thinking about moving capacity. There is ultimately a good thing because in those trade lanes are strong trade lanes for us.

Good position in terms of profitability and so.

So I see it more positive.

Asia and Asia to Europe is developing favorably.

Tobias Meyer: I'm pleased that in 2025, we have shown a smoother cash generation across the quarters and are well on track to our unchanged EUR 3 billion full-year target for free cash flow excluding M&A. That takes us to the use of cash and the next page. We have been consistently delivering on our dividend continuity promise, and to our clear commitment on our EUR 6 billion share buyback program. With EUR 4.4 billion done by end of September, this leaves up to EUR 1.6 billion to go by end of 2026. No change here in our commitment to attractive shareholder returns. To round it up, let's turn to our unchanged guidance on page 15. When we talked about our Q2 numbers in early August.

Yeah.

Overall, we havent seen any.

Melanie: I think overall, we haven't seen any crazy capacity movements, leading to difficult pricing situations beyond the normal competitive dynamics.

Melanie Kreis: I think overall, we haven't seen any crazy capacity movements, leading to difficult pricing situations beyond the normal competitive dynamics.

Crazy capacity movements, leading to them.

Pricing situations beyond the normal competitive to Nymex.

Echoed that.

So this is good we see ourselves in a very competitive situation both intra Asia we saw.

Tobias Meyer: I would echo that. This is good. We see ourselves in a very competitive situation, both intra-Asia. We sometimes say that Asia is DHL's second home and also Asia to Europe. The trends that you're seeing that competitors are more interested in, is something that we recognize, and overall see as a positive message of this being a trade lens where we can also expect some growth in 2026. To your second question on the postal operators and the de minimis front-loading, I think there might be small effects of that, but really not much. The de minimis front-loading we... You know, others might have seen to a greater extent than we have.

Sometimes say that Asia is DHL second home and also Asia to Europe.

So.

The trends that youre seeing that competitors are more interested in.

It's something that we recognize and overall <unk> as a positive message of this being a trade lanes, where we can also we can expect some growth in 2026.

To your second question on the postal operators in the de Minimus Frontloading.

I think there might be small effects of that but really not much.

Tobias Meyer: The short notice cancellation of rest-of-world de minimis to the US had just been announced, and we prudently flagged a worst-case risk from this new development. By now, the abolishment of rest-of-world de minimis has been implemented, and we have better visibility on the impact. This impact is now fully reflected in the assumptions for our otherwise unchanged guidance, as we reconfirm explicitly in the first bullet below the full year 2025 targets. This brings me right away to my wrap-up on the three main messages we want you to take away from today. The first is that in the short term, our cost and yield measures have driven a strong Q3 performance, and on this basis, we fully confirmed guidance today.

The de minimus Frontloading.

Others might have seemed to a greater extent than we have.

Postal operators that might have been some shift for some time, but I think most of that volume.

Tobias Meyer: The postal operators, there might have been some shift for some time. I think most of that volume just didn't show up. It, you know, we, as you're aware, have already now for several weeks reestablished the postal channel through the United States Postal Service, which is particularly strong on the C2C side. Not much effect on Express in Q3 as it relates to that.

Just didn't show up.

As Youre aware ive already now.

For several weeks reestablished that the postal channel to the United States Postal service, which is particularly strong on the <unk> side.

So not much effect.

Act on express in this in the third quarter as it relates to that.

Our next question comes from many back Kiani with Bank of America. Please on mute your line and ask your question.

Tobias Meyer: Secondly, beyond short-term volatility and capacity flex, our structural cost savings drive a sustainably lower cost base, not only for the current environment, but also for the growth path thereafter. They literally make us fit for growth. Thirdly, beyond P&L earnings, we also delivered a strong cash flow, which allows us to invest in a very targeted manner into the GDP plus verticals and regions we identified, while at the same time offering attractive returns for shareholders. Before we now turn to your questions, something special, a quick double advertisement in the name of our investor relations team. First, for your questions, we now have a new AI tool on our AR website, which matches your questions with the information we have provided in our official publications. Martin told me that this is pretty unique in the IR arena.

Operator: Our next question comes from Muneeba Kayani with Bank of America. Please unmute your line and ask your question.

Okay.

You bet, they cost us six months ago.

Melanie: Muneeba,

Operator: Muneeba,

Yeah.

Tobias Meyer: Star six, Muneeba.

You bet.

Now, let's see can morning, perfect. Good morning, I just wanted to understand your guidance that you've maintained and unpack some of the moving parts there because it's of course on the reported number and with all the one off to so you got the 178 million benefit on that on the accounting on it.

Melanie: Muniba?

Tobias Meyer: Muniba?

Tobias Meyer: Doesn't seem to work.

Muneeba Kayani: Can you hear me now?

Melanie: Yes, we can.

Melanie Kreis: Yes, we can.

Muneeba Kayani: Morning. Perfect. Good morning. I just wanted to understand your guidance that you've maintained and unpack some of the moving parts there because it's of course on the reported number and with all the one-offs. You got the EUR 178 million benefit on the accounting on e-commerce. That's certainly new for us. Was that something that you were expecting kind of already when you were giving your guidance maybe earlier in August? Similarly on the cost of change, this was something you'd kind of highlighted and kind of retaken into account into our numbers. Has that kind of impact of cost of change been different because of the phasing than what you had initially expected?

Melanie Kreis: Morning.

Muneeba Kayani: Perfect. Good morning. I just wanted to understand your guidance that you've maintained and unpack some of the moving parts there because it's of course on the reported number and with all the one-offs. You got the EUR 178 million benefit on the accounting on e-commerce. That's certainly new for us. Was that something that you were expecting kind of already when you were giving your guidance maybe earlier in August? Similarly on the cost of change, this was something you'd kind of highlighted and kind of retaken into account into our numbers. Has that kind of impact of cost of change been different because of the phasing than what you had initially expected?

E Commerce.

Certainly new for US was that something that you were expecting kind of already when you were giving your guidance maybe earlier in August.

Similarly on the cost of change. This was something you had kind of highlighted and kind of we've taken into account into our number is it buy it has that kind of impact of cost of change being different because of the phasing than what you had initially expected and then lastly on the de minimus kind of.

Tobias Meyer: I would ask all of you to check it out, give me feedback. I hope that this will be a good example on how we strive to apply AI wherever helpful across the organization. Secondly, we have John Pearson and Mike Parra, our divisional CEO and our CEO Europe of DHL Express, hosting an investor visit at our UK hub upcoming Monday. Contact IR here for more details if interested. I think it's definitely worth seeing. With that, operator, please launch the Q&A. Ladies and gentlemen, we will now begin our Q&A session. If you have a question, we ask that you please use the raise hand function at the bottom of your screen. If you have dialed in, please select star nine to raise your hand and star six to unmute. Once your name has been announced, please unmute and ask your question.

Muneeba Kayani: Lastly, on the de minimis kind of, what have you accounted for, into the year-end on that impact compared to that worst case of EUR 200 million? If you could unpack those moving parts, that'd be super helpful.

What have you accounted for into the yard and on that impact compared to do that worse case of 200 million. So if you could unpack those moving parts that would be super helpful.

I think in the de Minimis for US. This is now part of the run rate. So the effect is there.

Tobias Meyer: I think in the de minimis for us this is now part of the run rate, so the effect is there. We don't expect much further to move than what we now have. As Melanie laid out, the impact was smaller than the worst case, significantly smaller than the worst case, and it's now part of everyday life. As it relates to the guidance, overall, this will net out for the year. We, we roughly stay to where we originally seen that. Obviously, there is now the impact quarter by quarter, and Melanie can further elaborate on that.

We don't expect much further to move than what we now have.

As Melanie laid out the impact was smaller than the worst case significantly more scale.

And it's now part of everyday life as it relates to the guidance overall this will net out for the year. So.

We roughly stay.

To where we originally seen that obviously theres no the impact quarter by quarter. Melanie can further elaborate on that yes. So I think if you put all of the one off together, let's see disclosed in Q2, what we disclosed in Q3.

Tobias Meyer: If you want to withdraw your question, please lower your hand using the raise hand function again. Thank you, a moment for the first question, please. Our first question comes from Alexia Dogani at JP Morgan. Please unmute your line and ask your question. Yeah, good morning, Melanie and Tobias. Thank you for taking my question. I'm going to limit it to two. Firstly, in freight forwarding, obviously, Oscar has now been in the seat for, I think, the past 90 days. Can you give us a little bit of an indication of what his plan is to improve the earnings kind of progression in that division? Because clearly, things have been approaching the 2019 levels faster than we would have thought a couple of years ago. That's my first question. Secondly.

Melanie: Yes. I think if you put all the one-offs together, what we disclosed in Q2, what we disclosed in Q3, we currently have a net positive effect of a bit over EUR 40 million. We expect that to turn to a negative number because as I said, we will have more cost of change now in Q4, and we don't anticipate a positive one-off in Q4. If you say we have close to EUR 100 million in cost of change year to date, if you want to take that up to EUR 200 million, that gives you a feeling for the order of magnitude in Q4. We should end the year with a negative contribution from one-off for the full year.

Melanie Kreis: Yes. I think if you put all the one-offs together, what we disclosed in Q2, what we disclosed in Q3, we currently have a net positive effect of a bit over EUR 40 million. We expect that to turn to a negative number because as I said, we will have more cost of change now in Q4, and we don't anticipate a positive one-off in Q4. If you say we have close to EUR 100 million in cost of change year to date, if you want to take that up to EUR 200 million, that gives you a feeling for the order of magnitude in Q4. We should end the year with a negative contribution from one-off for the full year.

We currently have a net positive effect of a bit over $40 million and expect that to turn to a negative number.

Number because as I said.

You will have more cost of change now in the fourth quarter.

We don't anticipate a positive one off in the fourth quarter.

So if you say, we have close to $100 million and cost of change year to date. If you want to take that up to 200 million that gives you a feeling for the order of magnitude.

In the fourth quarter, So we should end the year with.

A negative contribution from one off.

Yes.

Thank you and just kind of on your cheek you express volumes tend to be to see minus 23% can you give us a sense of how that was in the month and like what happened in September post the de minimus.

Tobias Meyer: Can you give us an update on the progress on the legal structure tidying up and when we should expect to see the overheads within the divisional reporting that you signaled at the CMD? That's it. Thank you. Thank you, Alex, for these two questions. As it relates to global forwarding, I mean, Oscar is making progress. You saw the move on Latin America, for instance, which is, again, a closer-to-market move that enables us to execute our strategy in that as well. Overall, I think we know that in global forwarding, we have a great dependency on industry trends as well. You see that in the third quarter. That is hard for us to predict. We have seen clearly a normalization trend since COVID, but also within the year. I think there are some signs of that bottoming out, but there is a lot of uncertainty due to.

Marc Zeck: Thank you. Just kind of on your Q3 express volumes and the B2C minus 23%, can you give us a sense of how that was in the month and like what happened in September post the de minimis?

Muneeba Kayani: Thank you. Just kind of on your Q3 express volumes and the B2C minus 23%, can you give us a sense of how that was in the month and like what happened in September post the de minimis?

It's.

So the swing that others might have seen was not as big for us.

Tobias Meyer: The swing that others might have seen was not as big for us. I think you see over the quarters a pretty consistent trend, and we would not see much deviation from that trend.

So the.

Thank you see over the quarters, a pretty consistent trend.

We would not see much deviation from that trend.

Thank you.

Marc Zeck: Thank you.

Muneeba Kayani: Thank you.

Our final question comes from Mark <unk> with Kepler Chevron. Please on nature line and ask your question.

Operator: Our final question comes from Marc Zeck with Kepler Cheuvreux. Please unmute your line and ask your question.

Hey, Good morning can you hear me.

This funding at the state. Thank you very much.

[Analyst]: Hey, good morning. Can you hear me?

Marc Zeck: Hey, good morning. Can you hear me?

Tobias Meyer: Yes.

Marc Zeck: Yes. Good morning.

Melanie Kreis: Yes. Good morning.

One question left maybe a bit on the G&P.

[Analyst]: That is great. Thank you very much. One question left for me, maybe a bit on the P&P performance, I guess, that was pretty good, certainly much higher than expected by the market. It's like EUR 200 plus million EBIT in the Evri quarter that is not Q4, kind of the run rate that you would expect now for the next year as well. I guess, if we've seen the wage increases already for this quarter. It seems like a pretty decent run rate. With Q4 coming in, would you prefer that maybe you will end up in EBIT maybe more at EUR 1.1 billion rather than EUR 1.0 billion in P&P?

Marc Zeck: That is great. Thank you very much. One question left for me, maybe a bit on the P&P performance, I guess, that was pretty good, certainly much higher than expected by the market. It's like EUR 200 plus million EBIT in the Evri quarter that is not Q4, kind of the run rate that you would expect now for the next year as well. I guess, if we've seen the wage increases already for this quarter. It seems like a pretty decent run rate. With Q4 coming in, would you prefer that maybe you will end up in EBIT maybe more at EUR 1.1 billion rather than EUR 1.0 billion in P&P?

Performance I guess.

Good suddenly much higher than expected by the by the market.

Tobias Meyer: The changes in trade policy that we have talked about obviously have implications on demand, quite notably so. On the other hand, we have compensating factors. I think we're all positively surprised by the trade figures that China published for September, that being one example of a counterbalancing effect. Overall, we see ourselves in the quarter with a positive development, especially in ocean freight, I think relative to our competitors. We have been doing quite well. Air freight, there's still more work to be done. We also have that topic in terms of the freight market in Europe, especially our LTL network in Germany. These are topics that Oscar is working on. Again, within the quarter, relative to our peers, we are quite pleased. Yeah, good morning, Alexia. I'll take your second question on legal structure and the allocation of the corporate center costs.

It's like 400 plus million EBIT and the epic follow that is not Q4 kind of the run rate that you would expect now for <unk>.

For the next year as well I guess.

We've seen the the wage increases already.

For this quarter so.

It seems like a pretty decent run rate.

With Q4 coming in would you prefer that maybe you will end up in a bit maybe more at the $1 1 billion rather than the.

Zero volume in.

<unk>.

So I think.

The recovery that we see this year is also because.

Tobias Meyer: I think the recovery that we see this year is also because the last year was relatively weak. I think that's important to keep in mind. Overall, we see ourselves very well underway to deliver the guidance. For next year, Melanie already highlighted, this will be a year without regulatory price increases in mail, so that provides some pricing headwind. For 2026, we obviously have some freedom in parcel that we'll also adequately utilize. Similar to other elements that we talked about, we don't see a change of trends for P&P. We have some seasonality in that business as it relates to volume and also earnings. We expect that to be a normal peak season. That's where everything's currently pointing at.

Last year was relatively weak I think that's important to keep in mind overall, we see ourselves very well underway to deliver the guidance for.

For next year, Melanie already highlighted this will be a year without regulatory price increases in mail. So that provides some some pricing headwind.

Tobias Meyer: We are well on track on the legal cleanup. As you may recall, target is to take the topic to the AGM next spring, and we are on track to do that. We will then, once we have implemented the new legal structure in the course of 2026, start with the new reporting with the full allocation of the corporate center costs in 2027. We will do some parallel shadow calculations for 2026 so that when we start reporting in the new structure in 2027, we can also restate the 2026 numbers to that format. That's the timeline here. Thank you, Melanie. Can I just ask a follow-up on Tobias's answer? Obviously, you talked about the external factors. Productivity usually is an element that kind of helps improve the earnings kind of projections. We've seen other peers announce kind of relatively sizable savings programs.

For 2026, we obviously have some freedom in parcel that will also adequately utilize so.

Similar to other elements that we've talked about we don't see the change of trends for <unk>, we have some seasonality in that business as it relates to volume and also earnings.

And we expect that to be a normal peak season, that's where everything's currently pointing at we also have higher cost.

To deal with that.

Tobias Meyer: We also have higher cost to deal with that. A normal seasonal development is what we expect to close out Q4. Then again, obviously some of the structural cost measures will carry forward. The headwind on input factor cost and pricing will be a factor in 2026.

So.

Normal seasonal development.

We expect to close out Q4, and then again, obviously some of the structural cost measures will carry forward.

But the headwind.

On input factor cost and pricing will.

It will be a factor in 2026.

Thank you.

This concludes the Q&A session I'll now hand, it back to management for closing remarks, alright, So we're not too far away from the 60 minutes that we were looking for good news for the guys in Copenhagen next two BS have closing remarks. Please.

[Analyst]: Thank you.

Marc Zeck: Thank you.

Tobias Meyer: Fit for Growth doesn't really apply to freight forwarding. Is there something that you are specifically looking at there, perhaps using natural attrition as a tailwind just to kind of understand how costs should evolve there as well? Thank you. Well, I think when you look, for example, at the numbers we show in our stat book, you can see that in terms of employees, we are 3.9% down in Global Forwarding Freight. So Fit for Growth and cost measures are also happening in that division. Yeah, that, I think, I would absolutely echo. We see ourselves good underway. You also have to see that productivity in the cycle has a cyclical element to it as well. In the downturn, we often see the files getting lighter, having less to use per file on the ocean freight side.

Operator: This concludes the Q&A session. I now hand it back to management for closing remarks.

Tobias Meyer: All right. We're not too far away from the 60 minutes that we were looking for. Good news for the guys in Copenhagen who are next. Tobias, your closing remarks, please. Well, it was an interesting quarter, and it, from our perspective, turned out quite well. We do not expect that volatility will go down. We will stay close to our customers who are first and foremost impacted. It's easier to shift airplanes around than factories. We do see our narrative confirmed in terms of globalization not being derailed. There's clearly a deceleration relative to decades earlier, but especially in those areas that we focus on technology and the concentration of manufacturing due to economies of scale and economies of skill, that continues to drive globalization and the growth of trade.

[Company Representative] (DHL Group): All right. We're not too far away from the 60 minutes that we were looking for. Good news for the guys in Copenhagen who are next. Tobias, your closing remarks, please.

Well it was an interesting quarter and from our perspective turned out quite well.

Tobias Meyer: Well, it was an interesting quarter, and it, from our perspective, turned out quite well. We do not expect that volatility will go down. We will stay close to our customers who are first and foremost impacted. It's easier to shift airplanes around than factories. We do see our narrative confirmed in terms of globalization not being derailed. There's clearly a deceleration relative to decades earlier, but especially in those areas that we focus on technology and the concentration of manufacturing due to economies of scale and economies of skill, that continues to drive globalization and the growth of trade.

We do not expect that volatility will go down we will stay close to our customers, who first and for most impacted it's easier to shift airplanes around in factories.

We do see our narrative confirmed in terms of globalization not being derailed, there's clearly a deceleration relative to decades earlier, but especially in those areas that we focus on technology and the concentration of manufacturing due to economies of scale in that.

Economies of scale that continues to drive globalization and the growth of trade and we are very focused on staying.

Tobias Meyer: Overall, also, if we look forward, Alexia, I mean, this is an area where we want to grow and rebuild also market share. Our obsession with cost is limited by that ambition to grow. We will look at productivity, continuing to do so, but 2026 needs to be a year for growth for global forwarding. The environment is ripe for that. Some of the moves in the broader industry landscape might be helpful for us in that regard. That's a strong focus that we have. We want to absolutely stay customer-focused in global forwarding and grow in those industry verticals that we have laid out. That's a clear focus for Oscar as well. Thank you. Thank you, Alexia. We come to the next caller, which is from Wolf Research. Yes, our next caller is Jacob Black from Wolf Research.

Tobias Meyer: We are very focused on, A, staying close to our customers, adjusting capacity, and remain fit in the institutional capability to do so. Secondly, to have enough time and management capacity to do what we clearly need to do, to accelerate growth, to execute on Strategy 2030, where we have more headwinds than we had originally anticipated from a macro environment. We talked intensively about that in this call as well. There's clearly work to be done. We remain optimistic about that and to a great extent, also excited about the opportunity that the world still offers to our company. With that, I thank you for your interest and the great questions that you posed. Have a great day.

Staying close to our customers adjusting capacity.

<unk> remained fit in the institutional capability to do so, but secondly to have enough time and management capacity to do what we clearly need to do to accelerate growth to execute on strategy 2030, where we have more headwinds than we had originally anticipated from a macro environment with <unk>.

Talked in tenders, we about that in this call as well so there's clearly work to be done.

We remain optimistic about that into a great extent, although excited about the opportunity that the world still offers to our company with that I. Thank you for your interest and the great questions that you post have a great day.

This concludes today's call. Thank you for joining you may now disconnect.

Operator: This concludes today's call. Thank you for joining. You may now disconnect.

Tobias Meyer: Please unmute your line and ask your question. Jacob, can't hear you yet. Hey, thanks for your time. Can you hear me now? Yes. Good morning. Great. Cost control was strong again with the ongoing volume pressure in express. Can you help us think about how much of the cost outs are variable and how much are structural? In the billion euro Fit for Growth plan, is that on track or are you ahead of schedule here just given the global trade volatility? Yeah, thank you for that question. We are purposefully not breaking out how much of the cost is coming from the volume capacity flex and how much is structural because that is a little bit of an artificial calculation. For example, we have done some rejigging to our aviation network by changing the partners we fly with.

Tobias Meyer: That has structurally improved our cost base under Fit for Growth. Of course, that is now also impacted by how much volume we actually have in the network. We do not see the benefit of kind of pseudo-mathematically breaking it into the one bucket or the other. I think the important element is what you see in the bottom line, and that is very good cost development. With that, we are overall a bit ahead of what we had envisioned under Fit for Growth for the third quarter situation. Great. Just one more for me. When you look at the US volume declines, do you have a sense for how much of these declines are driven by de minimis and how much are higher tariffs? To the extent we see tariffs taken.

Tobias Meyer: Off by the courts next year, could this drive a B2C volume recovery? I think we would not expect that. Even if IEPA tariffs go, we all know that there are other legal grounds that the president could use to impose tariffs. We think that the step-down that has happened is permanent. That would change. That would obviously provide opportunity. We would love that. Would allow us also to definitely bring some business back, but we currently do not plan for that. The exact split between de minimis effect and tariffs is hard to do because it is also overlapping. E-commerce has clearly taken a much more severe drop than B2B volumes. That is something that we very clearly see, and I think everybody would expect as well. Those B2B volumes are goods that are essential in many ways to the US economy, to US-based customers.

Tobias Meyer: That decline is significantly lower than the decline you see on the B2C on the e-commerce side. You also see in our overall numbers, for B2C, we had minus 23% on the shipment side, and for B2B, minus 2%. Holding quite stable. Great. Thanks for your time. Thank you. Thanks, Jacob. On to the next caller from BNP Paribas. Our next question comes from James Hollands with BNP Paribas. Please unmute your line and ask your question. James? James, that's star six to unmute. Hello. Yeah, James Hollands from BNP Paribas. Two from me. Melanie, please, could you try and quantify the de minimis impact? Obviously, you talked about up to EUR 200 million this year. Maybe you could give us any detail you think it's going to be, and better still, what you think it might be in the year 2026.

Tobias Meyer: I know you told us not to analyze it. What I would describe as a stream of questions on express, but I'll keep it to pretend it's one. If we look at express TDI volumes, obviously down 10%, 11% in Q2 and Q3. B2C volumes down 23%. I just want to know where that was versus the market, what you're seeing happening on market share, and perhaps whether you can give us an early estimate where you think volumes might go in 2026. Let's pretend the second part, TDI B2B volumes. I think previously, obviously, volume is pretty solid there. You talked about average weight per shipment. I was wondering if you could give us a bit of an update on that, if possible. Thank you. Yeah, thank you. I'm starting with the de minimis question.

Tobias Meyer: I mean, again, when we talked about the 200 million on 5 August, that was days after the announcement that de minimis would go out end of August, rest of world. What we had done to come up with 200 million was basically extrapolate the development we had seen for China, Hong Kong, to the US. I had already flagged then that this was really a worst-case scenario. We have now seen that there is an impact, but that we are able to manage that quite well, as with the Q3 numbers for express. With regard to the TDI volumes, first of all, we had already taken a yield and profitability-focused approach to B2C volumes long before the whole de minimis thing started. We had talked about that now for.

Tobias Meyer: Yeah, six quarters that we had really taken pricing action and that this had impacted our volumes, particularly on the Trans-Pacific. In that respect, we had seen stronger volume declines than competition. When you look at our profitability development, I think that shows very clearly that the development is our approach is the right one. To the weight question, yeah, I think that's a very important point. When you look at volume and weight development, we see a less pronounced development on the weight side. The focus also on heavier shipments for the express network is actually paying off. I think if I may add to the market share, we are following that. You might have seen that some of our competitors have also published or said something to the in-quarter development.

Tobias Meyer: That is something, if you look at the entire quarter, it gives an impression that we might have lost. If you look at how that development was within the quarter, we're not so sure about that anymore. It's something that we watch. We obviously here are focused on TDI. We do not play in the intercontinental deferred market where there is clearly some growth that competitors have shown. Melanie commented on the profitability. The focus for 2026 is more on the weight side, given the focus on growing in industrials and the focus verticals that we have laid out. That's our focus there, clearly B2B, and tilted towards somewhat heavier weight of high-value, critical goods. That's very much the focus of express as we go into 2026. Awesome. Thanks a lot. Next question comes from Marco Limite with Barclays. Please unmute your line and ask your question.

Tobias Meyer: Marco, that is star six to unmute. Marco, we can't hear you yet. Hello? Hi. Yeah, I hear you. Yeah, now we can. Yes. Okay. Good. Morning. Congrats for the Q3 results. A question indeed on cost savings because I think Q3 was driven by cost savings. When we think about the 2026 outlook, I mean, I'm aware that probably it's a bit too early to discuss about 2026. I mean, specifically in the Express division. I mean, if we think about an environment where macro does not improve, you've got pricing that offset inflation. Let's say the year-over-year improvement will be driven by cost savings. In your Fit for Growth program, I think you have said you have only EUR 250 million cost savings in 2025 and a lot more next year. Is my, let's say, statement of Express growth next year of.

Tobias Meyer: EUR 3,400 million year-over-year, right? If we assume macro stable and all coming from cost savings, or do you think that is a bit too bullish and I'm missing something else? Maybe this is the first question. My second question is on your full year 2025 outlook. You have reported three quarters year to date up year-over-year, and your current guidance at the low end implies Q4 down year-over-year. Is that just, let's say, the low end is a bit more cautious, or how do you explain that? I mean, did you just expect the e-commerce season being particularly bad, or any color on that will be? Maybe I take the first question and then Melanie can comment on the 2025 outlook. Look, I think in the current environment, to say what a stable macro means, we find this relatively difficult.

Tobias Meyer: If you look on the macro assumptions that we based Strategy 2030 on and we rely on external sources, that has been very disappointing. Not only as it relates to trade and what has happened with tariffs in the US, but also the continued weakness in Europe, especially Germany, Germany having the third year without growth. We will provide guidance in due course. We are in that process. We'll obviously continue the focus on cost savings, the cyclical part, but more important also the structural part. We see ourselves good underway. I think we need to wait a bit more to see with what run rate we really now exit 2025. We have picked up momentum in some areas as it relates to contract closings, for instance, in supply chain, which is also needed to get back on a solid growth term.

Tobias Meyer: We need to see now what happens on the US side with IEEPA and how that turns out. These are all factors that will play out in 2026. Okay. Sorry, just a follow-up on that. Asking the same question in a different way. Can you confirm that you still have got additional EUR 750 million cost savings next year and only EUR 250 million cost savings in 2025 from the EUR 1 billion Fit for Growth program? Thank you. As I said, we are actually ahead on the Fit for Growth measures. In that respect, we will already see more benefits in the current year. As Tobias said, we will give guidance for 2026 in March. There will be a positive contribution year-over-year from Fit for Growth going into the next year. We also have some negatives. For example, in P&P, it will be the second year.

Tobias Meyer: Of the price regulation. We have the macro question mark. We will put all that together for our guidance in March. With regard to Q4, yes, I follow the mathematics and the year-over-year comparison. I think one important element, also linked to the first part of your question, we do plan further cost of change bookings for the fourth quarter. In total, we will probably have cost of change up to EUR 200 million. Half has already happened, but that means that we will also do some more cost of change in Q4. As we guide on reported EBIT, that is, of course, all included in our EBIT guidance. Okay, Michael? Okay. Thank you, Mark. Thank you. Next question comes from Cedar Ekblom with Morgan Stanley. Please unmute your line and ask your question. Star six. Can't hear you, Cedar, yet. Hello? Cedar? Yep, now we can.

Tobias Meyer: Morning. Okay. Perfect. Good. Thank you. I've got two questions. Firstly, on the AI rollout that you guys talk about, have you thought what you could quantify those cost savings at, considering we've got headcount down a couple of percent versus the end of 2024? I don't know if you could put some numbers around sort of lowering cost to serve. Maybe it's too early in the process, but that would be interesting to understand. The second question is just related to sort of the macro outlook that you talked about, Tobias, at the beginning on your Global Connectedness Tracker. That obviously points to a world where global trade as a multiplier of GDP should continue to be pretty solid.

Tobias Meyer: I'm not so sure that that is consistent with the message you gave at the capital markets day where we had that sort of long-term trend that saw that decelerating. The broader question here is, you are not growing your volumes in the businesses that are sort of most geared into global trade, sort of freight forwarding and express. I wonder, is it a case where the global market might continue to grow overall, but the verticals that are actually profitable for your business become far more niche? I suppose the overall market can grow, but can your business grow overall, or is it a case that there's only certain segments that remain profitable? It's a bit of a macro question. Thank you. Yeah, thank you, Cedar. For both of those questions, I think for AI, we would not quantify this.

Tobias Meyer: I think this is also very difficult to do. This technology is ultimately becoming a part of many, many applications that we use. We have dedicated programs as for customs where we also drive that with own capacity, and that's easier to measure. Even that will quickly infiltrate into normal productivity increasements and the like. Singling out the AI effect, as important as that emerging technology and very helpful technology is, is something that we see as difficult. We'll continue to report and give updates on how we use it, and at least on a qualitative level, how it connects to our figures. As it relates to the macro outlook, I think we would stay with the view that we've shared that there is a deceleration also in the multiplier. The multiplier was significantly above one since at least 1990, and that is not what we expect going forward.

Tobias Meyer: The narrative that is out there of the regionalization is a Western perspective, and it's not a global perspective. China continues to globalize. Now, in terms of us benefiting from that, it's not falling into our lap. That's, I think, a fair observation. There are also some industry sectors that we have strong exposure to that are not going to deliver the growth in express. It is a story of an industry that has taken share from the general air freight market over the last 40 years by expanding its capability. That's what we need to do. To be able to continue to grow, we have express cold chain capability, for instance, to have access to a sector that we're absolutely convinced will continue to globalize. The US has a very unique point, being the world's largest market, and thereby being able to force companies to produce there.

Tobias Meyer: The rest of the world doesn't have that choice. Maybe China is the only second one to that. You will not produce modern pharmaceutical, biogenetic pharmaceuticals in 20 places on this planet. This is just not what our customers tell us. These modern technologies are going to be highly concentrated, which means that for the rest of the world to participate in that technological progress, there will be trade. That's what we see happening with a different focus. That's what we expect going forward. Again, something that we need to actively address geographically, but also as it relates to our capability portfolio. That's what we are working on and need to deliver on to be able to show stronger growth. I think we have a good track record in supply chain with that gradual expansion of our capability portfolio, but it's clearly.

Tobias Meyer: A strong focus point for express and global forwarding as we go into the year 2026. Fantastic. Thank you so much. Our next question comes from Alexander Irving with Bernstein. Please unmute your line and ask your question. Hi. Good morning. Two for me, please. First of all, on express into the air peak season, both on volume and on the success of the surcharge, how are you seeing that develop, please? Second, also on express, you've taken out quite a lot of cost year-over-year, but how much of that do we need to add back as and when volumes rebound? Maybe related to that, where is the weight load factor currently, both year-over-year and also relative to your view of a normalized baseline? Thank you. Yes, I think with regard to the express. Peak season, maybe not just in express, but also in the other.

Tobias Meyer: Businesses where we see a peak season, we do expect that there will be a B2C peak season. How dynamic that will be remains to be seen, but we clearly expect the seasonal increase in the B2C volumes, and we are prepared for that in Express, but also in Post & Parcel Germany, and the e-commerce divisions. With regard to the demand surcharge driven by this seasonal additional stress on the system, we are on track with the implementation. We do expect the positive cost offset from that seasonal surcharge also in the fourth quarter of 2025. With regard to how much of the cost improvement is there to stay, as I said before, it is a mix, what we see at the moment, between volume-induced capacity adjustments and structural growth levers. Of course, when volumes come back, we will eventually also flex back with capacity.

Tobias Meyer: We also think that those structural Fit for Growth measures will give a lasting benefit, but we can't quantify that to the very precise number. With regard to weight load factor, given the current volume and weight situation, we are still not at an optimal point. The cost measures are helping, but of course, ultimately, that is still a fixed cost network where it is more enjoyable when there is more volume and weight. I mean, also with regard to margin, we have seen a good development, but this is not our ultimate margin goal. I think very well managed given the circumstances, but we look forward to the moment when volumes come back. All right. Thank you. Thank you. Our next question comes from Michael Aspinall with Jefferies. Please unmute your line and ask your question. Yeah. Good day to both Melanie and Martin.

Tobias Meyer: I'm Michael here from Jefferies. A couple on Express. On the Express rest of world kind of impact, it was mostly lower volumes. Maybe you can just talk to us as to why that is. I'm just thinking about the characteristics of those products. Are they kind of highly desirable B2C products or B2B that still need to move? Just thinking kind of what's happening underneath the numbers. I think what we already assumed in August or what was kind of like our hope to keep us away from the worst-case scenario was that, particularly the higher-valued shipments which had entered into the US under the de minimis rule, that they would be more resilient. I mean, you had lots of machinery spare parts valued below $800 going into the US under the de minimis.

Tobias Meyer: Our base case hypothesis was that these volumes would keep moving, but of course, with clearance. That is what we have now seen happening. Particularly, the very low-value B2C stuff has seen the impact, partially also because customers are then changing to different forms of transporting B2C into the US. We have seen more resilience on the B2B side, and that explains the difference between the minus 23% B2C volume decline and the minus 2.2% B2B. Great. Two other just small ones. In express, on TDI volumes, Europe improved sequentially a little bit from minus 3% to minus 1% in Q3. Is there anything underneath that to read into in terms of Europe getting better or not really yet? I think it's a glass half full, glass half empty question.

Tobias Meyer: Yes, from minus 3% to minus 1% is a move in the right direction. Can we be satisfied with minus 1%? Clearly not. I think at the moment, we still see a more stagnant European development than we all would have hoped for. Okay. Great. Last one, sorry to slip in three. I think you don't really get into fuel hedging in express. Maybe you can just remind us on that. Similarly, if there's no hedging, but you expect lower fuel surcharges, would that normally help on the volume front? On the fuel side, there's a well-established mechanism in DHL Express, but also in the industry, where you have a fuel surcharge. There is a bit of a time lag, about six weeks, but fundamentally, you then adjust and pass fluctuations in underlying fuel price onto the customer and the volume.

Tobias Meyer: Elasticity is relatively low to that. Okay. Great. Thank you. Our next question comes from Cristian Nedelcu with UBS. Please unmute your line and ask your question. Hi. I hope you can hear me. Thank you very much for giving me the chance to ask the questions. Can I ask the first one in express? Your competitors are talking about adding air capacity on intra-Asia and Asia-Europe. I believe, and correct me if I'm wrong, but I believe those are usually trade lanes where your express margins are higher than the divisional average. How do you see the risk of potential market share losses or margin compression there in 2026? The second one, maybe a small one on the Q3 express. For what concerns the US, we've heard about the postal operators temporarily stopping deliveries to the US in September.

Tobias Meyer: There's been maybe also some de minimis front-loading in August. Did those bring any benefits to the profitability in Express in Q3 that may not repeat going forward? The last one on Express, very useful, the chart you offer with the weights into different regions. Looking at Q2 and Q3 and just focusing on Europe, weights down 3%, weights down 1%. If I compare it with the CTS ocean volumes into Europe, those have been growing around 10% year-over-year. Air freight capacity into Europe overall is also up, high single digit to low double digit. I guess my question is, what do you think is driving the underperformance of Express versus ocean and air cargo? Only when we focus on Europe, do you think it could be market share loss? Do you think it could be downtrading or other factors that could explain that?

Tobias Meyer: Thank you. Okay. Maybe starting with the third one. The missing element in the comparison is the intra-European business. We obviously earned ocean freight statistics do not show what is happening intra-Europe, but that is a big part of our express business, and that has clearly not been the most dynamic. That explains the difference there. Staying with the trade lane questions, the fact that intra-Asia and Asia to Europe is developing more favorably, which is why others are apparently thinking about moving capacity there, is ultimately a good thing because those trade lanes are strong trade lanes for us in terms of market position and in terms of profitability. I see it more positive if intra-Asia and Asia to Europe is developing favorably. I think overall, we have not seen any crazy capacity movements leading to.

Tobias Meyer: Difficult pricing situations beyond the normal competitive dynamics. I would echo that. This is good. We see ourselves in a very competitive situation, both intra-Asia. We sometimes say that Asia is DHL's second home, and also Asia to Europe. The trends that you're seeing, that competitors are more interested in, is something that we recognize and overall see as a positive message of this being a trade lane where we can also expect some growth in 2026. To your second question on the postal operators and the de minimis front-loading, I think there might be small effects of that, but really not much. The de minimis front-loading, others might have seen to a great extent that we have the postal operators. There might have been some shift for some time, but I think most of that volume just didn't show up. We, as you're aware, have already now.

Tobias Meyer: For several weeks, reestablished the postal channel to the United States Postal Service, which is particularly strong on the C2C side. Not much effect on express in the third quarter as it relates to that. Our next question comes from Muneeba Kayani with Bank of America. Please unmute your line and ask your question. Muneeba, we can't. Star six. Muneeba. Muneeba? Can you hear me now? Yes, we can. Morning. Perfect. Good morning. I just wanted to understand your guidance that you've maintained and unpack some of the moving parts there because it's, of course, on the reported number and with all the one-offs. You got the EUR 178 million benefit on the accounting on e-commerce. That's certainly new for us. Was that something that you were expecting kind of already when you were giving your guidance maybe earlier in August?

Tobias Meyer: Similarly, on the cost of change, this was something you'd kind of highlighted and kind of we'd taken into account in our numbers, but has that kind of impact of cost of change been different because of the phasing than what you had initially expected? Lastly, on the de minimis, kind of, what have you accounted for into the year-end on that impact compared to that worst case of 200 million? If you could unpack those moving parts, that'd be super helpful. I think in the de minimis, for us, this is now part of the run rate. The effect is there. We don't expect much further to move than what we now have. As Melanie laid out, the impact was smaller in the worst case, significantly smaller in the worst case, and it's now part of everyday life.

Tobias Meyer: As it relates to the guidance, overall, this will net out for the year. We roughly stay to where we originally seen that. Obviously, there's now the impact quarter by quarter. Melanie can further elaborate on that. Yeah. I think if you put all the one-offs together, what we disclosed in Q2, what we disclosed in Q3, we currently have a net positive effect of a bit over EUR 40 million. We expect that to turn to a negative number because, as I said, we will have more cost of change now in the fourth quarter, and we don't anticipate a positive one-off in the fourth quarter. If you say we have close to EUR 100 million in cost of change year to date, if you want to take that up to EUR 200 million, that gives you a feeling for the order of magnitude in the fourth quarter.

Tobias Meyer: We should end the year with a negative contribution for one-offs for the full year. Thank you. Just kind of on your Q3 express volumes and the B2C minus 23%, can you give us a sense of how that was in the month and what happened in September post the de minimis? The swing that others might have seen was not as big for us. I think you see over the quarters a pretty consistent trend, and we would not see much deviation from that trend. Thank you. Our final question comes from Marc Zeck with Kepler Cheuvreux. Please unmute your line and ask your question. Hey, good morning. Can you hear me? Yes. Yes. Good morning. I heard this. Great. Thank you very much. One question left for me, maybe a bit on the P&P. Performance, I guess, that was pretty good.

Tobias Meyer: Certainly much higher than expected by the market. It's like EUR 200-plus million EBIT in every quarter that is not Q4, kind of the run rate that you would expect now for the next year as well. I guess we've seen the wage increases already for this quarter. It seems like a pretty decent run rate, and with Q4 coming in, would you prefer that maybe you will end up in EBIT maybe more the EUR 1.1 billion rather than the EUR 1.0 billion in P&P? I think the recovery that we see this year is also because the last year was relatively weak. I think that's important to keep in mind. Overall, we see ourselves very well underway to deliver the guidance. For next year, Melanie already highlighted, this will be a year without regulatory price increases in mail, so that provides some pricing headwind for 2026.

Tobias Meyer: We obviously have some freedom in parcel that we'll also adequately utilize. Similar to other elements that we talked about, we don't see a change of trends for P&P. We have some seasonality in that business as it relates to volume and also earnings, and we expect that to be a normal peak season. That's where everything's currently pointing at. We also have higher cost to deal with that. A normal seasonal development is what we expect to close out Q4. Then again, obviously, some of the structural cost measures will carry forward, but the headwind on input factor cost and pricing will be a factor in 2026. Thank you. This concludes the Q&A session. I now hand it back to management for closing remarks. All right. We're not too far away from the 60 minutes that we were looking for.

Tobias Meyer: Good news for the guys in Copenhagen who are next. Tobias, your closing remarks, please. Well, it was an interesting quarter, and from our perspective, it turned out quite well. We do not expect that volatility will go down. We will stay close to our customers. First and foremost, impacted, it's easier to shift airplanes around than factories. We do see our narrative confirmed in terms of globalization not being derailed. There's clearly a deceleration relative to decades earlier, but especially in those areas that we focus on, technology, and the concentration of manufacturing due to economies of scale and economies of skill, that continues to drive globalization and the growth of trade. We are very focused on, A, staying close to our customers, adjusting capacity, and remain fit in the institutional capability to do so.

Tobias Meyer: Secondly, to have enough time and management capacity to do what we clearly need to do to accelerate growth, to execute on Strategy 2030, where we have more headwinds than we had originally anticipated from a macro environment. We talked intensively about that in this call as well. There's clearly work to be done. We remain optimistic about that, and to a great extent, also excited about the opportunity that the world still offers to our company. With that, I thank you for your interest and the great questions that you posed. Have a great day. This concludes today's call. Thank you for joining. You may now disconnect.

Q3 2025 Deutsche Post AG Earnings Call

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