Insights on DHL

Energy Consumptions

Anindita Das(25)
Indranil Chatterjee(32)
Nilashis Roy(37)
Ritabrata Mukherjee(52

ntroduction
DHL Expressis adivisionof theGermanlogisticscompanyDeutsche Post
DHLproviding internationalexpress mailservices.Deutsche Postis the
world's largest logisticscompany operating around the world,particularly in
sea and air mail.
Originally founded in 1969 to deliver documents betweenSan
FranciscoandHonolulu, the company expanded its service throughout the
world by the late 1970s. The company was primarily interested in offshore
and inter-continental deliveries, but the success ofFedExprompted their own
intra-US expansion starting in 1983. DHL expanded to countries that could
not be served by any other delivery service, includingCuba, theSoviet
Union,Eastern Bloc,Iraq,Iran,China,VietnamandNorth Korea.
In 1998,Deutsche Postbegan to acquire shares in DHL. It finally reached
majority ownership in 2001, and completed the purchase in 2002. Deutsche
Post then effectively absorbed DHL into its Express division, while expanding
the use of the DHL brand to other Deutsche Post divisions, business units and
subsidiaries. Today, DHL Express shares its DHL brand with other Deutsche
Post business units, such asDHL Global ForwardingandDHL Supply Chain.

olution of The Organization

First
shipping
docs transported from
San
Francisco
to Honolulu
Start of
Asia
Pacific
expansion
1969 1970

DHL
launches
parcel
service

Alliance
formed with
Lufthansa,
JAL and
Nissho Iwai

Deutsche
Post
acquires
100% of
Danzas
Group

Start of
European
expansion

1974

1977

Deutsche
Post
acquires
100% of
Airborne

Deutsche
Post
acquires
100% of DHL
1990

1998

DP World
Net changes
name to
DPDHL

Deutsche
Post acquires
100% of Exel
plc.

2002 2003

2005

2009

w the Organization Works?

its are in million tonnes(productivity)

3500
North America
3000

Latin America

2500

Europe

2000

Middle East & Africa

Asia Pacific

1500
1000

Asia Pacific
Middle East & Africa

500

Europe
Latin America

0
2012

2013

North America
2014

lected Key Figures

2011

2012

2013

2014

Revenue

m 52829

55512

54912

56630

Profit from operating

activities

m 2436

2665

2865

2965

Return on sales

4.8

5.2

5.2

Consolidated net profit for

the period

m 1163

1658

2091

2071

Cash flow

m 2371

-203

1669

1345

Net Debt

m -938

1952

1499

1499

Return on equity before

taxes

15.2

19.2

26.7

26.3

Earnings per share

0.96

1.37

1.73

1.71

Dividend per share

0.70

0.70

0.80

0.85

42334
8

428287

479690

488824

Number of employees

4.6

CO2 emissions

70

X-axis In %age

60
50
40
30

2012(5.4 million
tonnes)

20
10
0

2014(5.67 million tonnes)

2013(5.6 million tonnes)
2012(5.4 million tonnes)

Fuel and energy consumption

Consumption by 2011
fleet 2012 2013 2014
Air transport

1019.1

1059 1150.7

Road transport

476.4 472.3 450.2 445.8

Road transport

1.4

2.2

3.2

Energy for buildings and facilities

3247

1187.9

4.4

3317 3172 3393

Air transport (jet fuel) million kilograms

Road transport (petrol, biodiesel, diesel, bio-ethanol, LPG) - million liters
Road transport (biogas, CNG) million Kilograms
Energy for buildings and facilities - million kilowatt-hours

Sustainable approach for the

To do business in a sustainable manner, they
future
should aim at reducing the impact on the
environment by: 2012 2020

Increasing their carbon efficiency primarily

in the
areas of air and road transportation, real
estate and providing customers with green
shipping
service, which provides the option to offset
carbon outputs

Carbon efficiency
covering emissions from
our own and
subcontracted operations

Upgrading to a more fuel

efficient fleet of
vehicles and aircraft

 Implementing design and operational

changes
in their facilities to increase the use of
They should aim to change their
energy
from renewable sources
ways and make transport of goods
more climate-friendly
To meet their aims, they should set
a specific and quantifiable target for
improvement in their global CO2
efficiency

They should install small size Wind

turbines at their facility rooftops to
meet daily energy demand

They should start solar &

electric(battery) powered vehicles
for in-house/warehouse operations

Gets 60% of Electricity from Renewable

DHL says more than 60 percent of its global electricity demand is now
generated from renewable sources. Over the past two years, the company
increased its green electricity share from 42 percent in 2012 to over 60
percent by 2014.
On the basis of market availability of renewable and economic
considerations, DHL focuses on the regions of Europe and North America. For
example, in Germany, the United States, Great Britain, Ireland and France,
the company uses green electricity for over 90 percent of its business.
Via its GoGreen program, the company implements energy efficiency
technologies as well.
In line with European and German legislation, Deutsche Post DHL mainly uses
GoOs (Guarantees of Origin) or RECS certificates (Renewable Energy
Certificate System).
In the future, the company aims to further expand its green electricity in
more regions, including Asia Pacific, provided the required conditions are met.

ENERGY USE IN BUILDINGS AND FACILITIES

(INCL. ELECTRIC VEHICLES, M KWH)
2012

2013

2014

Total

3127

3393

3247

100% Green
Electricity

745

1056

1040

Standard
Electricity

992

768

657

Natural Gas

864

952

951

Heating Oil

242

248

308

District Heating

185

202

189

District Cooling

Liquefied
Petroleum Gas

91

159

94

Biogas

ROAD TRANSPORT
The Group has a fleet of more than 90,000 road vehicles worldwide, of which
71% are vans, 17% are cars and 12% are trucks.

AIR TRANSPORT
As a leading provider of international express services, they have a fleet
capacity of more than 250 dedicated aircraft comprising 176 freight aircraft
and several smaller feeder aircraft.
Their air fleet serves approximately 500 airports via 19 main regional hubs
and three global hubs in Leipzig, Cincinnati and Hong Kong.