Basis of preparation

As a listed company, Deutsche Post AG prepared its consolidated financial statements in accordance with Section 315e Handelsgesetzbuch (HGB – German Commercial Code) (“consolidated financial statements in accordance with International Financial Reporting Standards”) in compliance with International Financial Reporting Standards (IFRS) and related Interpretations of the International Accounting Standards Board (IASB) as adopted in the European Union in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and of the European Council on the application of international accounting standards.

1 Basis of accounting

The requirements of the standards applied have been satisfied in full, and the consolidated financial statements therefore provide a true and fair view of the Group’s net assets, financial position and results of operations.

The consolidated financial statements consist of the income statement and the statement of comprehensive income, the balance sheet, the cash flow statement, the statement of changes in equity and the notes. In order to improve the clarity of presentation, various items in the balance sheet and in the income statement have been combined. These items are disclosed and explained separately in the notes. The income statement has been classified in accordance with the nature-of-expense method.

The accounting policies and the explanations and disclosures in the notes to the IFRS consolidated financial statements for the 2024 fiscal year are generally based on the same accounting policies used in the consolidated financial statements for the 2023 fiscal year. Exceptions to this are the changes in international financial reporting under the IFRS described in note 5 that have been required to be applied by the Group since January 1, 2024. The accounting policies are explained in note 7.

These consolidated financial statements were authorized for issue by a resolution of the Board of Management of Deutsche Post AG dated February 18, 2025.

The consolidated financial statements are prepared in euros (€). Unless otherwise stated, all amounts are given in millions of euros (€ million, €m).

2 Consolidated group

With the exception of 29 immaterial subsidiaries, the consolidated group includes all companies controlled by Deutsche Post AG. Control exists if Deutsche Post AG has decision-making powers, is exposed, and has rights, to variable returns and is able to use its decision-making powers to affect the amount of the variable returns. The Group companies are consolidated from the date on which Deutsche Post AG is able to exercise control.

When Deutsche Post AG holds less than the majority of voting rights, other contractual arrangements may result in control over the relevant investee, note 36. Where Deutsche Post AG holds the majority of voting rights, there is also the possibility of contractual provisions preventing it from controlling the relevant investee.

The complete list of the Group’s shareholdings in accordance with Section 313 (2), nos. 1 to 6, and (3) HGB may be viewed in the list of shareholdings.

The number of companies consolidated with Deutsche Post AG is shown in the following table:

The changes are primarily the result of mergers and liquidations of immaterial companies.

2.1 Business combinations in 2024

No material business combinations occurred in the 2024 fiscal year. The immaterial acquisitions were as follows:

Further details can be found in the cash flow disclosures, note 43.2.

The purchase price allocations for the acquisition of MNG Kargo, Turkey, and for the acquisition of additional shares in DHL Logistics LLC- SO, United Arab Emirates, which both took place in the previous year, have been finalized.

Final purchase price allocation for MNG Kargo

MNG Kargo, acquired on October 5, 2023, with the approval of the Turkish competition authorities, and its subsidiary are leading parcel carriers in Turkey and have a strong presence in the e-commerce segment. The acquisition complements the business portfolio of DHL Group and is contributing to the company being able to benefit from growth potential in the Turkish market and continuing to strengthen its position in Turkey and in European markets. MNG Kargo is allocated to the eCommerce segment. A preliminary purchase price allocation was disclosed as of December 31, 2023. The finalization on July 25, 2024, resulted in adjustments to the prior-year figures, note 4. The purchase price allocation resulted in non-tax-deductible goodwill of €234 million, which is allocated to the eCommerce cash generating unit (CGU). It is mainly attributable to the synergies and network effects expected from the e-commerce market in Turkey. Customer relationships will be amortized over three to eight years. The brand name has a useful life of one year. The useful lives of the property, plant and equipment range from four to ten years. Current assets include trade receivables of €24 million. There was a difference of €1 million between the gross amount and the carrying amount.

Final purchase price allocation for DHL Logistics LLC – SO

On December 7, 2023, DHL Global Forwarding acquired the remaining 60% of shares in Danzas AEI Emirates. Until that time, the equity method had been applied to this company. Since then, the company has been fully consolidated and now operates under the name DHL Logistics LLC – SO (DHL Logistics). DHL Logistics is a specialist in logistics and transport services in Dubai and the northern Emirates. Thanks to this acquisition, the Global Forwarding, Freight division will continue driving its strategic goal of accelerating profitable growth in the Middle East and Africa region. A preliminary purchase price allocation was disclosed as of December 31, 2023. The finalization on May 28, 2024, resulted in adjustments to the prior-year figures, note 4. The purchase price allocation resulted in non-tax-deductible goodwill of €208 million, which is allocated to the Global Forwarding CGU. The goodwill is mainly attributable to the synergies and network effects expected in Dubai and the northern Emirates. Customer relationships will be amortized over a period of seven to ten years. The useful lives of the property, plant and equipment range from 15 to 33 years. Current assets include trade receivables of €41 million. There was a difference of €2 million between the gross amount and the carrying amount.

A total of €21 million was paid in the 2024 fiscal year for an immaterial business combination. A total of €2 million was paid in 2024 for companies acquired in previous years. The purchase prices of the acquired companies were settled by cash consideration.

Investments in companies accounted for using the equity method and other investments amounted to €42 million in the 2024 fiscal year.

2.2 Disposal and deconsolidation effects

There were no material disposals of shareholdings in the 2024 fiscal year.

2.3 Joint operations

Joint operations are consolidated on a proportionate basis in accordance with IFRS 11.

Aerologic GmbH (Aerologic), Germany, a cargo airline based in Schkeuditz, is the only joint operation in this regard. Aerologic has been assigned to the Express segment. It was jointly established by Lufthansa Cargo AG and Deutsche Post Beteiligungen Holding GmbH, which each hold 50% of its capital and voting rights. Aerologic’s shareholders are simultaneously its customers, giving them access to its freight aircraft capacity. Aerologic mainly serves the DHL Express network from Monday to Friday and flies for the Lufthansa Cargo network on weekends. Individual aircraft are also used exclusively by the two respective shareholders. In contrast to its capital and voting rights, the company’s assets and liabilities, as well as its income and expenses, are allocated based on this user relationship.

3 Significant transactions

The following significant transactions occurred in the 2024 fiscal year:

Share buyback for up to €4 billion

On February 12, 2024, the Board of Management resolved to expand the current share buyback program so that a total of up to 130 million treasury shares are to be purchased at a price of now up to €4 billion through to the end of 2025. The purposes remain unchanged. The repurchased shares will either be retired, used to service long-term executive remuneration plans and any future employee participation programs, or used to meet potential obligations if rights accruing under the 2017/2025 convertible bond are exercised, note 33.

On February 18, 2025, the Board of Management resolved to expand the current share buyback program so that a total of up to 210 million treasury shares are to be purchased at a price of now up to €6 billion through to the end of 2026. The purposes remain unchanged.

Capital reduction

With the authorization granted by the Annual General Meeting on May 4, 2023, the Board of Management resolved on May 2, 2024, to reduce the issued capital by €39,059,409 through the retirement of 39,059,409 treasury shares, note 33. This was entered in the commercial register on May 22, 2024. The withdrawal and cancellation of the shares was confirmed on June 6, 2024.

Issue of a new bond

On March 25, 2024, Deutsche Post AG issued a bond with a volume of €1 billion. The twelve-year term ends on March 25, 2036. The bond has a fixed interest rate of 3.5% per year. The proceeds will primarily be used for general company purposes, including the refinancing of existing financial liabilities, note 39.

Modernization of the Postal Act

Reforms to Germany’s Postal Act (Postgesetz) entered into force on July 19, 2024. The old Postal Act and its regulations, such as the Universal Postal Services Ordinance (Post-Universaldienstverordnung), the Postal Rate Regulation Act (Post-Entgeltregulierungsverordnung) and the Mail Guarantee Act (Postsicherstellungsgesetz), expired on that date. The new Postal Act contains a changed legal framework for regulating market access, postal rates and network access as well as for combatting market abuse and for protecting postal workers. There were also changes to some of the requirements for nationwide provision of postal services (universal postal service).

Modernization of the Group structure

On September 23, 2024, the Board of Management announced its principal decision to modernize the Group structure. The DHL Group’s legal structure will be aligned with its management structure over the next two years and all divisions managed as standalone corporate entities.

4 Adjustment of prior-year figures

The final purchase price allocation for MNG Kargo and DHL Logistics resulted in adjustments to the balance sheet items below. The adjustments were accounted for in the opening balance sheets and led to a corresponding adjusted presentation in the balance sheet as of December 31, 2023.

The retrospective change in property, plant and equipment also resulted in a change in depreciation, amortization and impairment losses recognized in profit or loss. The presentation in the income statement has been adjusted.

5 New developments in international accounting under IFRS

New accounting standards effective in the 2024 fiscal year

Application of the following standards, changes to standards and interpretations has been mandatory since January 1, 2024:

• Amendments to IFRS 16, Lease Liability in a Sale and Leaseback
• Amendments to IAS 1, Classification of Liabilities as Current or Noncurrent
• Amendments to IAS 1, Noncurrent Liabilities with Covenants
• Amendments to IAS 7 and IFRS 7, Supplier Finance Arrangements

Application has not had a material effect on the consolidated financial statements.

New accounting standards adopted by the EU but only effective in future periods

The following standards, changes to standards and interpretations have already been endorsed by the EU. However, they will only be required to be applied in future periods.

• Amendments to IAS 21, Lack of Exchangeability. Applicable for fiscal years beginning on or after January 1, 2025.

Application will not have a material effect on the consolidated financial statements.

New accounting standards not yet adopted by the EU (endorsement procedure)

The IASB and the IFRIC issued further standards, amendments to standards and interpretations in the 2024 fiscal year and in previous years whose application is not yet mandatory for the 2024 fiscal year. Application is dependent on their adoption by the EU.

• Amendments to IFRS 9 and IFRS 7, Classification and Measurement of Financial Instruments, issued on May 30, 2024, applicable for fiscal years beginning on or after January 1, 2026
• Amendments to IFRS 9 and IFRS 7, Contracts Referencing Nature-dependent Electricity, issued on December 18, 2024, applicable for fiscal years beginning on or after January 1, 2026
• Annual Improvements – Volume 11, issued on July 18, 2024, applicable for fiscal years beginning on or after January 1, 2026
• IFRS 19 Subsidiaries without Public Accountability, issued on May 9, 2024, applicable for fiscal years beginning on or after January 1, 2027
• IFRS 18, Presentation and Disclosure in Financial Statements, issued on April 9, 2024, applicable for fiscal years beginning on or after January 1, 2027. IFRS 18 requires additional, defined subtotals in the income statement. These subtotals are based on the classification of income and expenses into the following categories: operating, investing and financing. In some cases, the allocation of income and expenses will change. A new feature is the introduction of disclosures on certain “management-defined performance measures” (MPMs). MPMs are performance indicators used by management in public communications outside the consolidated financial statements and not specified by IFRS Accounting Standards. IFRS 18 adds new principles for summarizing and disaggregating information and makes limited amendments to IAS 7, Cash Flow Statement. IFRS 18 replaces IAS 1, Presentation of Financial Statements. Early application is permitted. Retrospective first-time application is required.

The effects on the consolidated financial statements are currently being assessed. With the exception of those resulting from the application of IFRS 18, DHL Group does not currently expect any material changes.

6 Currency translation

The financial statements of consolidated companies prepared in foreign currencies are translated into euros (€) in accordance with IAS 21 using the functional currency method. The functional currency of foreign companies is determined by the primary economic environment in which they mainly generate and use cash. Within the Group, the functional currency is predominantly the local currency. In the consolidated financial statements, assets and liabilities are therefore translated at the closing rates, while periodic income and expenses are generally translated at an average exchange rate that results from the monthly rates. The resulting currency translation differences are recognized in other comprehensive income. In the 2024 fiscal year, currency translation differences amounting to €596 million (previous year: €⁠–⁠586 million) were recognized in other comprehensive income, see the statement of changes in equity.

The exchange rates for the currencies that are significant for the Group were as follows:

The carrying amounts of nonmonetary assets recognized at significant consolidated companies operating in hyperinflationary economies are generally indexed in accordance with IAS 29 and thus reflect the current purchasing power as of the reporting date. Turkey has met the criteria regarding a cumulative inflation rate of more than 100% over a period of three years since the beginning of 2022. Accounting pursuant to IAS 29 was applied for the relevant companies. Upon application, the adjustments to the carrying amounts of nonmonetary assets and liabilities based on the general price index were recognized in net finance costs, note 18. The consumer price index of the Turkish Statistical Institute was used for the adjustment of the purchasing power effects. As of January 1, 2024, this figure was 1,984 basis points and had increased to 2,685 basis points as of December 31, 2024.

In accordance with IAS 21, the monetary values such as receivables and liabilities in the financial statements of consolidated companies that have been prepared in local currencies are translated at the closing rate as of the reporting date. Currency translation differences are recognized in other operating income and expenses in the income statement. In the 2024 fiscal year, income of €341 million (previous year: €452 million) and expenses of €342 million (previous year: €433 million) resulted from currency translation differences. In contrast, currency translation differences relating to net investments in a foreign operation are recognized in other comprehensive income.

7 Accounting policies

Uniform accounting policies are applied to the annual financial statements of the entities included in the consolidated financial statements. The consolidated financial statements are prepared under the historical cost convention, except for items that are required to be recognized at their fair value.

Revenue and expense recognition

DHL Group’s normal business operations consist of the provision of logistics services comprising express delivery, freight transport, supply chain management, e-commerce solutions and letter and parcel dispatch in Germany. All income relating to normal business operations is recognized as revenue in the income statement. All other income is reported as other operating income.

Revenue is recognized when control over the goods or services transfers to the customer, i.e., when the customer has the ability to control the use of the transferred goods or services provided and generally derive their remaining benefits. There must be a contract with enforceable rights and obligations and, among other things, the receipt of consideration must be likely, taking into account the customer’s credit quality. Revenue corresponds to the transaction price to which the Group is expected to be entitled. Variable consideration is included in the transaction price when it is highly probable that a significant reversal in the amount of revenue recognized will not occur. Generally, the Group does not have contracts where the period between the transfer of the promised goods and/or services to the customer and payment by the customer exceeds one year. Accordingly, the promised consideration is not adjusted for the time value of money. For each performance obligation, revenue is either recognized at a point in time or over time. Performance progress is generally determined on the basis of the ratio of completed to still-outstanding transport duration.

The revenue generated by providing other logistics services is recognized in the reporting period in which the service was rendered.

Whenever third parties are involved in the performance of a service, a distinction must be drawn between the principal and agent. If DHL Group serves as the principal, the gross amount of revenue is recognized. If the Group acts as the agent, the net amount is recognized. The transaction price for this specific service is limited to the amount of the commission to be received. DHL Group is generally the principal when transport services are provided.

Operating expenses are recognized in profit or loss when the service is utilized or when the expenses are incurred.

Intangible assets

Intangible assets, which comprise internally generated and purchased intangible assets and purchased goodwill, are measured at amortized cost.

Internally generated intangible assets are recognized at cost if it is probable that their production will generate an inflow of future economic benefits and the costs can be reliably measured. In the Group, this concerns internally developed software. If the criteria for capitalization are not met, the expenses are recognized immediately in income in the year in which they are incurred. In addition to direct costs, the production cost of internally developed software includes an appropriate share of allocable production overhead costs. Any borrowing costs incurred for qualifying assets are included in the production cost. Intangible assets under development relate to intangible assets in progress as of the reporting date for whose production internal or third-party costs have already been incurred. Value-added tax arising in conjunction with the acquisition or production of intangible assets is included in the cost to the extent that it cannot be deducted as input tax.

Intangible assets (excluding goodwill) are amortized using the straight-line method over their useful lives. Impairment losses are recognized in accordance with the principles described in the impairment section. The useful lives of significant intangible assets are as follows:

Intangible assets with indefinite useful lives are not amortized but are tested for impairment annually or whenever there are indications of impairment. This includes goodwill almost exclusively. Impairment testing is carried out in accordance with the principles described in the impairment section.

EMISSIONS CERTIFICATES

CO₂ emissions certificates and certificates and/or proof of generation for electricity from renewable energies are recognized as intangible assets and reported under other assets. Both purchased as well as freely allocated rights are recognized at cost; no depreciation is carried out.

A provision for the obligation to submit CO₂ emissions certificates to the responsible authorities in the EU and the United Kingdom is recognized at the carrying amount of the CO₂ emissions certificates capitalized for this purpose. If a portion of the obligation is not covered by existing certificates, the provision for this is recognized at the market price of the emissions certificates on the reporting date.

Property, plant and equipment

Property, plant and equipment is carried at cost, reduced by accumulated depreciation and impairment losses. In addition to direct costs, production cost includes an appropriate share of allocable production overhead costs. Borrowing costs that can be allocated directly to the purchase, construction or manufacture of property, plant and equipment are capitalized. Value-added tax arising in conjunction with the acquisition or production of items of property, plant or equipment is included in the cost to the extent that it cannot be deducted as input tax. Assets under development relate to items of property, plant and equipment in progress as of the reporting date for whose production internal or third-party costs have already been incurred. Depreciation is charged using the straight-line method. Significant portions of property, plant and equipment that have different useful lives are recognized and depreciated separately. If costs are incurred in conjunction with regular comprehensive maintenance work (e.g., refurbishment of aircraft and major repairs of engines), these costs are recognized as a separate component, provided that they meet the criteria for this recognition. The estimated useful lives applied to the major asset classes are presented in the table below:

If there are indications of impairment, an impairment test must be carried out; see the impairment section.

Impairment losses

As of each reporting date, the carrying amounts of intangible assets, property, plant and equipment, right-of-use assets and investment property are reviewed for indications of impairment. If there are any such indications, an impairment test is carried out. This is done by determining the recoverable amount of the relevant asset and comparing it with the carrying amount.

In accordance with IAS 36, the recoverable amount is the asset’s fair value less costs to sell or its value in use (present value of the pretax free cash flows expected to be derived from the asset in the future), whichever is higher. The discount rate used for the value in use is a pretax rate of interest reflecting current market conditions. If the recoverable amount cannot be determined for an individual asset, the recoverable amount is determined for the smallest identifiable group of assets to which the asset in question can be allocated and that independently generates cash flows (cash generating unit – CGU). If the recoverable amount of an asset is lower than its carrying amount, an impairment loss is recognized immediately in respect of the asset. If it can be determined, the fair value or value in use of the individual assets represents their minimum carrying amount. If, after an impairment loss has been recognized, a higher recoverable amount is determined for the asset or the CGU at a later date, the impairment loss is reversed up to a carrying amount that does not exceed the recoverable amount. The increased carrying amount attributable to the reversal of the impairment loss is limited to the carrying amount that would have been determined (net of amortization or depreciation) if no impairment loss had been recognized in the past. The reversal of the impairment loss is recognized in the income statement. Impairment losses recognized in respect of goodwill may not be reversed. Goodwill is subsequently measured at cost, less any cumulative adjustments from impairment losses. Purchased goodwill is therefore not amortized and instead is tested for impairment annually in accordance with IAS 36, regardless of whether any indication of possible impairment exists, as in the case of intangible assets with an indefinite useful life. In addition, the obligation remains to conduct an impairment test if there is any indication of impairment. Goodwill resulting from business combinations is allocated to the CGUs or groups of CGUs that are expected to benefit from the synergies of the acquisition. These groups represent the lowest reporting level at which the goodwill is monitored for internal management purposes. The carrying amount of a CGU to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the unit may be impaired. Where impairment losses are recognized in connection with CGUs to which goodwill has been allocated, the existing carrying amount of the goodwill is reduced first. If the amount of the impairment loss exceeds the carrying amount of the goodwill, the difference is generally allocated proportionally to the remaining assets in the CGU.

Leases

A lease is a contract in which the right to use an asset (the leased asset) is granted for an agreed-upon period in exchange for consideration.

LESSEE

In accordance with IFRS 16, the Group as lessee has recognized at present value assets for the right of use received and liabilities for the payment obligations entered into for all leases in the balance sheet. Lease liabilities include the following lease payments:

• fixed payments, less lease incentives offered by the lessor;
• variable payments linked to an index or interest rate;
• expected residual payments from residual-value guarantees;
• the exercise price of call options when exercise is estimated to be sufficiently likely; and
• contractual penalties for the termination of a lease if the lease term reflects the exercise of a termination option.

Lease payments are discounted at the interest rate implicit in the lease to the extent that this can be determined. Otherwise, they are discounted at the incremental borrowing rate of the respective lessee.

Right-of-use assets are measured at cost, which comprises the following:

• lease liability;
• lease payments made at or prior to delivery, less lease incentives received;
• initial direct costs and restoration obligations.

Right-of-use assets are subsequently measured at amortized cost. They are depreciated over the term of the lease using the straight-line method.

The Group makes use of the relief options provided for leases of low-value assets and short-term leases (shorter than 12 months) and expenses the payments in the income statement using the straight-line method. Additionally, the requirements do not apply to leases of intangible assets. The Group also exercises the option available for contracts comprising both lease and non-lease components to not separate these components, except in the case of real estate and aircraft leases. In addition, under IFRS 8, intra-Group leases – in line with internal management – are generally presented as operating leases in segment reporting.

Extension and termination options exist for a number of leases, particularly for real estate. Such contract terms offer the Group the greatest possible flexibility in doing business. In determining lease terms, all facts and circumstances offering economic incentives for exercising extension options or not exercising termination options are taken into account. Changes due to the exercise or non-exercise of such options are considered in determining the lease term only if they are sufficiently probable.

LESSOR

For operating leases, the Group reports the leased asset at amortized cost as an asset under property, plant and equipment where it is the lessor. The lease payments received in the period are recognized under other operating income or revenue if they belong to ordinary business activities.

Where the Group is the lessor in a finance lease, it recognizes lease receivables in the amount of the net investment in the balance sheet. Certain subleases embedded in customer contracts are still reported as finance leases at the lessor.

Investments accounted for using the equity method

Investments accounted for using the equity method cover associates and joint ventures. These are recognized using the equity method in accordance with IAS 28, Investments in Associates and Joint Ventures. Based on the cost of acquisition at the time of purchase of the investments, the carrying amount of the investment is increased or reduced annually to reflect the share of earnings, dividends distributed and other changes in the equity of the associates and joint ventures attributable to the investments of Deutsche Post AG or its consolidated subsidiaries. An impairment loss is recognized on investments accounted for using the equity method, including the goodwill in the carrying amount of the investment, if the recoverable amount falls below the carrying amount. Gains and losses from the disposal of investments accounted for using the equity method are recognized in net income/expenses from investments accounted for using the equity method, as are impairments and reversals of impairments.

Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets include, in particular, cash and cash equivalents, trade receivables, originated loans and other financial receivables, as well as derivative financial assets. Financial liabilities include contractual obligations to deliver cash or another financial asset to another entity. These mainly comprise trade payables, liabilities to banks, liabilities arising from bonds and leases, and derivative financial liabilities.

MEASUREMENT

The Group measures financial assets and financial liabilities at fair value plus the transaction costs directly attributable to the acquisition of these financial assets and financial liabilities on initial recognition if the financial assets and financial liabilities are not subsequently measured at fair value through profit or loss. The transaction costs of financial assets and financial liabilities measured at fair value through profit or loss are recognized as expenses. For financial liabilities measured according to the fair value option, the part of the change in fair value resulting from changes in the Group’s own credit risk is recognized in other comprehensive income rather than in the income statement.

CLASSIFICATION

Financial assets are classified in the measurement categories below. The classification of debt instruments depends on the business model used to manage the financial assets and their contractual cash flows.

DEBT INSTRUMENTS AT AMORTIZED COST

Debt instruments that are assigned to the “hold to collect contractual cash flows” business model and whose cash flows exclusively comprise interest and principal are measured and recognized at amortized cost. Interest income from these financial assets is reported in financial income using the effective interest method.

DEBT INSTRUMENTS, DERIVATIVES AND EQUITY INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)

Debt instruments, derivatives and equity instruments acquired to maximize their cash flows by selling them in the short to medium term are assigned to the “sell” business model. They are measured at fair value. The resulting measurement gains and losses are reported in the income statement.

EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI)

Pursuant to IFRS 9, equity instruments are to be recognized at their fair value and can be assigned to the FVTOCI or FVTPL measurement categories. For strategic reasons, most of the equity instruments that the Group invests in are assigned to the FVTOCI category. The effects of any change in the fair value of equity instruments of the FVTOCI category are recognized in other comprehensive income. Dividends are recognized in other operating income in the income statement. If the equity instruments of the FVTOCI category are sold, the fair value changes recognized in equity are to be transferred to other reserves. For equity instruments assigned to the FVTPL category, the fair value changes are to be reported in the income statement. Dividends are also recognized in other operating income in the income statement.

IMPAIRMENT LOSSES

The Group makes a forward-looking assessment of the expected credit losses associated with its debt instruments (expected-credit-loss model).

Expected credit loss (ECL) within the meaning of IFRS 9 is an estimate of credit loss over the expected lifetime of a financial asset accounted for at amortized cost or at fair value through other comprehensive income (FVTOCI), weighted for the probability of default. A credit loss is the difference between the contractual cash flows to which the Group is entitled and the cash flows expected by the Group. The expected credit loss takes into account the amount and timing of payments. Accordingly, a credit loss may also occur if the Group expects payment to be made in full, but later than the contractually agreed-upon date.

The Group distinguishes between the following types of financial assets that are subject to the ECL model: Debt instruments measured at amortized cost and debt instruments measured at fair value through other comprehensive income, on the one hand, and trade receivables and contract assets, on the other. Cash and cash equivalents are also subject to the IFRS 9 impairment rules. The identified impairment loss for the latter is immaterial.

ECL is generally measured at the level of individual items; in exceptional cases, such as groups of receivables with the same credit risk characteristics, it is measured collectively at portfolio level. The standard stipulates the three-stage general approach to determining credit loss for this process.

In accordance with the three-stage model, debt instruments measured at amortized cost and at fair value through other comprehensive income are initially recognized in Stage 1. The expected credit loss is equal to the loss that may occur due to possible default events in the 12 months following the reporting date. Financial assets that have experienced a significant increase in counterparty credit risk since initial recognition are transferred from Stage 1 to Stage 2. A significant increase includes situations in which debtors are no longer able to meet their payment obligations at short notice or when it appears that the debtor has experienced an actual or expected deterioration in business performance. The credit risk can then be measured using the probability of default (PD) over the instrument’s lifetime (lifetime PD). The impairment loss is equivalent to the loss that may occur due to possible default events during the remaining term of the financial asset. Assets must be transferred from Stage 1 to Stage 2 when the contractual payments are more than 30 days past due. In cases where contractual payments from a debt instrument are more than 90 days past due, there is revocable reason to believe that there is objective evidence of a credit loss and/or that the debtor is experiencing significant financial difficulties. The debt instrument is then to be transferred to Stage 3.

Listed debt instruments measured at amortized cost are assigned to Stage 1 of the three-stage model if an investment-grade rating exists from at least one major rating agency. The impairment loss recognized in the period is equal to the loss that may occur due to possible default events in the twelve months following the reporting date.

Trade receivables and contract assets are generally short term in nature and contain no significant financing components. According to the simplified impairment approach in IFRS 9, a loss allowance in an amount equal to the lifetime expected credit loss must be recognized for all instruments, regardless of their credit quality. The Group calculates the expected credit loss using impairment tables for the individual divisions. The loss estimate, documented by way of loss rates, encompasses all of the available information, including historical data, current economic conditions and reliable forecasts of future economic conditions (macroeconomic factors).

Impairment losses are offset against gains on the reversal of impairment losses. Further details are presented in note 44.

DERIVATIVES AND HEDGES

Derivative hedging instruments are used to minimize variations in earnings due to payments in foreign currencies, variable-rate borrowing and for planned commodity purchases. The gains and losses from the underlying and hedging transactions are recognized simultaneously in total comprehensive income (hedge accounting). The Group has designated cash flow hedges due to the existing risks.

The hedging of future cash flows using cash flow hedges takes place in accordance with the provisions of IFRS 9.6.5.11ff. Net investment hedges in foreign entities are treated in accordance with IFRS 9.6.5.13ff.

RECOGNITION AND DERECOGNITION

Regular-way purchases and sales of financial assets are recognized as of the settlement date, with the exception of derivatives, in particular. A financial asset is derecognized when the rights to receive the cash flows from the asset have expired or have been transferred, and the Group has transferred essentially all risks and opportunities of ownership. Financial liabilities are derecognized if the payment obligations arising from them have expired.

POWER PURCHASE AGREEMENTS

DHL Group concludes long-term contracts for the provision of electricity from renewable sources (e.g., wind and solar power) to reduce its carbon footprint (power purchase agreements) and to hedge against fluctuating prices. If the contracts are concluded for the company’s own use, they are treated as executory contracts (own-use exemption) and not accounted for as derivatives.

OFFSETTING

Financial assets and liabilities are offset on the basis of netting agreements (master netting arrangements) only if there is an enforceable right of offset and settlement on a net basis is intended as of the reporting date.

If the right of offset is not enforceable in the normal course of business, the financial assets and liabilities are recognized in the balance sheet at their gross amounts as of the reporting date. The master netting arrangement then creates only a conditional right of offset.

Investment property

Investment property is treated in accordance with IAS 40. It is measured in accordance with the cost model. The useful lives of the property range from 20 to 50 years. Depreciation is on a straight-line basis. The fair value is determined on the basis of expert opinions. Impairment losses are recognized in accordance with the principles described in the impairment section.

Inventories

Inventories are measured in accordance with IAS 2 at the lower of cost or net realizable value. Impairment losses are charged for obsolete inventories and slow-moving goods.

Government grants

Government grants within the meaning of IAS 20 are reported in the income statement and are generally recognized as income over the periods in which the costs they are intended to compensate for are incurred. Where the grants relate to the purchase or production of assets, they are reported as deferred income and recognized in the income statement over the useful lives of the assets. Such deferred income is presented in other operating income.

Assets held for sale and liabilities associated with assets held for sale

Assets held for sale and liabilities associated with assets held for sale are accounted for in accordance with IFRS 5. The sale must be highly probable and expected to be completed within a one-year period. Individual assets, disposal groups and discontinued operations may be included.

Cash and cash equivalents

Cash and cash equivalents comprise cash, demand deposits and other short-term liquid financial assets with an original maturity of up to three months; they are measured at amortized cost. Overdraft facilities used are recognized in the balance sheet as amounts due to banks.

Noncontrolling interests

Noncontrolling interests are the proportionate minority interests in the equity of subsidiaries and are recognized at their carrying amount. If an interest is acquired from, or sold to, other shareholders without affecting the existing control relationship, this is presented as an equity transaction. The difference between the proportionate net assets acquired from, or sold to, other shareholders and the purchase price is recognized in other comprehensive income. If noncontrolling interests are increased by the proportionate net assets, no goodwill is allocated to the proportionate net assets.

Share-based payments to executives

Equity-settled share-based payment transactions are measured at fair value as of the grant date. The fair value of the obligation is recognized in staff costs over the vesting period. The fair value of equity-settled share-based payment transactions is determined using internationally recognized valuation techniques.

Cash-settled share-based payments (stock appreciation rights, SARs) are measured on the basis of an option pricing model in accordance with IFRS 2. The stock appreciation rights are measured on each reporting date and on the settlement date. The amount determined for stock appreciation rights that will probably be exercised is recognized pro rata in the income statement under staff costs, to reflect the services rendered as consideration during the vesting period (lockup period). A provision is recognized for the same amount. Changes in value due to share price movements occurring after the grant date are recognized as other finance costs in net finance costs.

Retirement benefit plans

There are arrangements (plans) in many countries under which the Group grants post-employment benefits to its employees. These benefits include pensions, lump-sum payments on retirement and other post-employment benefits and are referred to in these disclosures as retirement benefits, pensions and similar benefits, or pensions. A distinction must be made between defined benefit and defined contribution plans.

THE GROUP’S DEFINED BENEFIT RETIREMENT PLAN

Defined benefit obligations are measured using the projected unit credit method prescribed by IAS 19. This involves making certain actuarial assumptions. Most of the defined benefit retirement plans are at least partly funded via external plan assets. The remaining net liabilities are funded by provisions for pensions and similar obligations; net assets are presented separately as pension assets. Where necessary, an asset ceiling must be applied when recognizing pension assets. With regard to the cost components, the service cost is recognized in staff costs, net interest cost in net finance costs and the remeasurements outside the income statement in other comprehensive income. Any rights to reimbursement are reported separately in financial assets.

DEFINED CONTRIBUTION RETIREMENT PLANS FOR CIVIL-SERVANT EMPLOYEES IN GERMANY

In accordance with statutory provisions, Deutsche Post AG pays contributions for civil-servant employees in Germany to retirement plans that are defined contribution retirement plans for the company. These contributions are recognized in staff costs.

Under the provisions of the Gesetz zum Personalrecht der Beschäftigten der früheren Deutschen Bundespost (PostPersRG – Former Deutsche Bundespost Employees Act), Deutsche Post AG provides retirement benefits and assistance benefits through the Postbeamtenversorgungskasse (PVK – Postal civil-servant pension fund) at the Bundesanstalt für Post und Telekommunikation (BAnst PT – German federal post and telecommunications agency) to retired employees or their surviving dependents who are entitled to benefits on the basis of a civil-service appointment. The amount of Deutsche Post AG’s payment obligations is governed by Section 16 PostPersRG. This act obliges Deutsche Post AG to pay into the PVK an annual contribution of 33% of the gross compensation of its active civil servants and the notional gross compensation of civil servants on leave of absence who are eligible for a pension.

Under Section 16 PostPersRG, the federal government makes good the difference between the current payment obligations of the PVK, on the one hand, and the funding companies’ current contributions or other return on assets, on the other, and guarantees that the PVK is able to meet the obligations it has assumed in respect of its funding companies at all times. Insofar as the federal government makes payments to the PVK under the terms of this guarantee, it cannot claim reimbursement from Deutsche Post AG.

DEFINED CONTRIBUTION RETIREMENT PLANS FOR THE GROUP’S HOURLY WORKERS AND SALARIED EMPLOYEES

Defined contribution retirement plans are in place for the Group’s hourly workers and salaried employees, particularly in the United Kingdom, the United States and the Netherlands. The contributions to these plans are also reported in staff costs.

This also includes contributions to certain multi-employer plans that are basically defined benefit plans, especially in the United States and the Netherlands. However, the relevant institutions do not provide the participating companies with sufficient information to use defined benefit accounting. The plans are therefore accounted for as if they were defined contribution plans.

Regarding these multiemployer plans in the United States, contributions are made based on collective agreements between the employer and the local union, with the involvement of the pension fund. There is no employer liability to any of the plans beyond the bargained contribution rates except in the event of a withdrawal meeting specified criteria, which could then include a liability for other entities’ obligations as governed by US federal law. The expected employer contributions to the funds for 2025 are €82 million (actual employer contributions in the reporting period: €82 million, in the previous year: €81 million). Some of the plans in which DHL Group participates are underfunded according to information provided by the funds. No information is available to the Group that would indicate any change from the contribution rates set by current collective agreements. In addition, the potential financial risks in conjunction with underfunded joint plans were implicitly reduced through measures taken by the US government. DHL Group does not represent a significant portion of any fund in terms of contributions, with the exception of one fund where the Group represents the largest employer in terms of contributions.

Contribution rates for one multiemployer retirement plan in the Netherlands are determined each year by the management body of the pension fund with the involvement of the central bank of the Netherlands, based on cost coverage. These contribution rates are the same for all employers and employees involved. There is no liability for the employer toward the fund beyond the contributions set, even in the case of withdrawal or obligations not met by other entities. Any subsequent underfunding ultimately results in the rights of members being cut and/or no indexation of their rights. The expected employer contributions to the fund for 2025 are €42 million (actual employer contributions in the reporting period: €40 million, in the previous year: €33 million). As of December 31, 2024, the coverage degree of plan funding was above a required minimum of approximately 105%, according to information provided by the fund. DHL Group does not represent a significant portion of the fund in terms of contributions.

Other provisions

Other provisions are measured and recognized in accordance with IAS 37.10. Provisions represent uncertain obligations that are carried at the best estimate of the expenditure required to settle the obligation. Provisions with more than one year to maturity are discounted at market rates of interest that reflect the region and time to settlement of the obligation. As in the previous year, the discount rates were between 0.25% and 10.50%. The effects arising from changes in interest rates are recognized under other operating income or expenses.

Loss reserves consist mainly of outstanding-loss reserves and IBNR (incurred but not reported) reserves. Outstanding-loss reserves represent estimates of obligations in respect of actual claims or known incidents expected to give rise to claims that have been reported to the company but have yet to be finalized and presented for payment. Outstanding-loss reserves are based on individual claim valuations carried out by the company or its ceding insurers. IBNR reserves represent estimates of obligations in respect of incidents taking place on or before the reporting date that have not been reported to the company. Such reserves also include provisions for potential errors in settling outstanding-loss reserves. The company carries out its own assessment of ultimate loss liabilities using actuarial methods and also commissions an independent actuarial study of these each year in order to verify the reasonableness of its estimates.

Financial liabilities

Financial liabilities are carried at fair value less transaction costs on initial recognition. The price determined in an efficient and liquid market or a fair value determined using the treasury risk management system deployed within the Group is taken as the fair value. Financial liabilities are measured at amortized cost in subsequent periods. Any differences between the amount received and the amount repayable are recognized in the income statement over the term of the loan using the effective interest method. Disclosures on financial liabilities under leases can be found in the leases section.

CONVERTIBLE BOND ON DEUTSCHE POST AG SHARES

The convertible bond on Deutsche Post AG shares is split into an equity and a debt component, in line with the contractual arrangements. The debt component, less the transaction costs, is reported under financial liabilities (bonds), with interest added back up to the issue amount over the term of the bond using the effective interest method (unwinding of the discount). The value of the call option, which allows Deutsche Post AG to redeem the bond early if a specified share price is reached, is attributed to the debt component in accordance with IAS 32.31. The conversion right is classified as an equity component and is reported in capital reserves. The carrying amount is calculated by assigning to the conversion right the residual value that results from deducting the amount calculated separately for the debt component from the fair value of the instrument as a whole. The transaction costs are deducted on a proportionate basis.

Liabilities

Trade payables are carried at amortized cost. Most of the trade payables have a maturity of less than one year. The fair value of the liabilities corresponds more or less to their carrying amount.

SUPPLIER FINANCE ARRANGEMENTS

Supplier finance arrangements are characterized by one or more financial service providers offering to pay amounts Deutsche Post AG and its subsidiaries owe to suppliers. As part of such arrangements, a bank may offer to purchase selected trade receivables from a supplier and acquire the rights to these receivables. These services may improve the supplier’s liquidity. The terms of the arrangement match the terms of the underlying supply and service contracts between Deutsche Post AG/its subsidiaries and the suppliers, except for the payment terms negotiated. In accordance with the terms of the finance arrangements, Deutsche Post AG and its subsidiaries make the payments to the financial service providers on the due dates of the accounts payable to suppliers. Because the programs do not lead to any substantial modification of the conditions of payment between DHL Group and the suppliers, and payment terms are within the normal industry range, the corresponding accounts payable are still reported under trade payables. The payments to the financial institutions are reported in the operating cash flow.

Income taxes

Current taxes are calculated based on the tax laws in force or announced as of the reporting date in the countries where the company and its subsidiaries do business and are subject to taxation. The tax rate applied to German Group companies is unchanged at 30.5% and comprises the corporation tax rate plus the solidarity surcharge and an average municipal trade tax rate. Tax rates of up to 38% (unchanged) are applied for foreign companies.

Tax items are recognized when they are probable. They are measured at the amounts for which repayments from, or payments to, the tax authorities are expected to be received or made. If uncertain tax items are recognized because they are probable, they are measured at their most likely amount. Tax-related fines are recognized in income taxes if they are included in the calculation of income tax liabilities, due to their inclusion in the tax base and/or tax rate.

Deferred taxes are calculated based on the tax rates and tax laws expected to apply at the time when the liability is settled or the tax asset realized. Deferred taxes are recognized in full using the liability method on temporary differences between the tax base of assets and liabilities and their carrying amounts in the consolidated financial statements, as well as on tax loss and interest carryforwards and tax credits where it is probable that these benefits will be realized. In accordance with IAS 12.24 (b) and IAS 12.15 (b), no deferred tax assets or liabilities are recognized for temporary differences resulting from initial differences in the opening tax accounts of Deutsche Post AG.

Deferred tax assets are only recognized if it is probable that taxable profit will be available. The recoverability of the tax reduction claims is assessed at each reporting date based on each entity’s earnings projections, which are derived from the Group projections and take any tax adjustments and effects on earnings from the reversal of taxable temporary differences into account.

The Group applies the exception to the recognition and disclosure of information regarding deferred tax assets and liabilities related to Pillar Two income taxes under global minimum taxation rules.

Contingent liabilities

Contingent liabilities represent possible obligations whose existence will be confirmed only by the occurrence, or nonoccurrence, of one or more uncertain future events not wholly within the control of the enterprise. Contingent liabilities also include certain obligations that will probably not lead to an outflow of resources embodying economic benefits, or where the amount of the outflow of resources embodying economic benefits cannot be measured with sufficient reliability. In accordance with IAS 37, contingent liabilities are not recognized in the balance sheet.

8 Exercise of judgment in applying the accounting policies

Exercise of management judgment

The preparation of IFRS-compliant consolidated financial statements requires the exercise of judgment by management. The exercise of management judgment may materially affect the values of the assets, liabilities, income and expenditure recognized and the contingent liabilities disclosed by DHL Group. All estimates are reassessed on an ongoing basis and are based on historical experience and expectations with regard to future events that appear reasonable under the given circumstances. They primarily relate to the determination of when DHL Group obtains control over an investee and when a Group company acts as the agent or as the principal when providing services. Other management judgments involve the recognition of provisions for pensions and similar obligations, the calculation of discounted cash flows in the context of impairment testing and purchase price allocations, as well as taxes and legal proceedings.

The Group has operating activities around the globe and is subject to local tax laws. Management can exercise judgment when calculating the amounts of current and deferred taxes in the relevant countries. Although management believes that it has made a reasonable estimate relating to tax matters that are inherently uncertain, there can be no guarantee that the actual outcome of these uncertain tax matters will correspond exactly to the original estimate made. Any difference between actual events and the estimate made could have an effect on tax accounts in the period in which the matter is finally decided. The amount recognized for deferred tax assets could be reduced if the estimates of planned taxable income or changes to current tax laws restrict the extent to which future tax benefits can be realized.

Goodwill is regularly reported in the Group’s balance sheet as a consequence of business combinations. When an acquisition is initially recognized in the consolidated financial statements, all identifiable assets, liabilities and contingent liabilities are generally measured at their fair values as of the date of acquisition. One of the important estimates this requires is the determination of the fair values of these assets and liabilities as of the date of acquisition. Land, buildings and office equipment are generally valued by independent experts, while securities for which there is an active market are recognized at the quoted exchange price. If intangible assets are identified in the course of an acquisition, their measurement can be based on the opinion of an independent external expert valuer, depending on the type of intangible asset and the complexity involved in determining its fair value. The independent expert determines the fair value using appropriate valuation techniques, normally based on expected future cash flows. In addition to the assumptions about the development of future cash flows, these valuations are also significantly affected by the discount rates used.

DHL Group reports lease liabilities corresponding to the present value of lease payments not yet made at this point in time. The Group is able, only in exceptional cases, to readily determine the underlying interest rate of a lease. In all other cases, DHL Group uses the incremental borrowing rate to measure the lease liability. The incremental borrowing rate is the rate of interest that DHL Group would have to pay to borrow, over a similar term and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The incremental borrowing rate therefore requires regular estimates of the interest rate the Group would have to pay. This includes making assumptions about what interest rates DHL Group would have to pay in the absence of observable rates or where adjustments to the contractually agreed terms are necessary, e.g., the transaction currency or the duration of the contract. DHL Group calculates the incremental borrowing rate using observable factors such as bond yields, CDS quotations or spreads.

Climate change could give rise to uncertainties and risks for the net assets, financial position and results of operations of the Group. Extreme weather events could potentially lead to damage to property, plant and equipment. Increased restrictions imposed by law to combat climate change are expected in the coming years, including limits on air transport or access to city centers. In certain cases, this may also affect our existing business models and our ability to operate optimally. Climate-related risks can influence the useful lives of assets in different ways:

• Physical changes in the climate such as the increased frequency and intensity of acute weather events (storms, fires and floods) as well as long-term trends such as rising temperatures can have an impact on assets.
• Transitory changes in conjunction with decarbonization – including political, legal, technological and market-related changes – can influence the useful lives and the values of our assets.

In particular, there are uncertainties with regard to the extent to which regulatory efforts in connection with the debate surrounding climate action will lead to higher costs. The current focus as part of the public debate and the climate action measures of DHL Group relate to CO₂ emissions. DHL Group plans to reduce its logistics-related greenhouse gas (GHG) emissions to below 29 million metric tons of CO₂e by the year 2030. DHL Group wants to reduce the GHG emissions to net zero by 2050. To this end, additional costs – for emissions trading and sustainable fuels, among other things – were accounted for in the company’s projections and thus included in the application of IAS 36 as well as in the impairment considerations for deferred tax assets. Other central elements of the planned reduction in CO₂ emissions are the planned fleet modernization as well as the option for DHL Group customers to acquire CO₂ offsets during the booking process.

DHL Group does not currently see any climate-related indications for the adjustment of useful lives and residual values of aircraft and other items of property, plant and equipment. As part of determining the impairment loss on assets of property, plant and equipment, of intangible assets and of right-of-use assets, estimates are also made that relate to, among other factors, the cause, time and amount of the impairment. An impairment loss is based upon a number of factors. Management has to make significant judgments with regard to the identification and review of indications for an impairment, the estimate of future cash flows, the determination of fair values of assets (or groups of assets), the relevant discount rates, the respective useful lives and the residual values of the affected assets.

Moreover, a loss allowance for financial assets has been established to account for expected credit losses resulting from customers’ credit quality. Detailed information can be found under note 7 on expected credit loss and trade receivables. Assessment of the appropriateness of the loss allowance is based on historical data and future macroeconomic key figures or the credit rating estimate for the respective customers on the basis of an external rating from the respective industry and the country in which the customer operates, note 44. In the event of a deterioration of the credit quality of the customer, the scope of the derecognition (specific valuation allowances on receivables) actually carried out may exceed that of the loss allowance recognized.

Impairment testing for goodwill is based on assumptions about the future. Determining value in use requires assumptions and estimates to be made with respect to forecast future cash flows and the discount rate applied. Unforeseeable changes in these assumptions – e.g., a reduction in the EBIT margin, an increase in the asset charge or a decline in the long-term growth rate – could result in an impairment loss that could negatively affect the Group’s net assets, financial position and results of operations, note 22.

For the actuarial valuation of defined benefit retirement plans of the Group, actuarial assumptions are required that relate to, in particular, discount rates, expected rates of salary and pension increases and biometric probabilities. Generally accepted valuation methods are used to determine the fair value of plan assets – in particular, for assets without a market price quotation (e.g., real estate) – that require separate assumptions. If changes to these assumptions are necessary, this could have a material impact on the results of actuarial valuations, recognized carrying amounts and the future amount of retirement benefit expenses. Disclosures regarding the assumptions made in connection with the Group’s defined benefit retirement plans can be found in note 37.

Pending legal proceedings in which the Group is involved are disclosed in note 46. The outcome of these proceedings could have a significant effect on the net assets, financial position and results of operations of the Group. Management regularly analyzes the information currently available about these proceedings and recognizes provisions for probable obligations including estimated legal costs. Internal and external legal advisers participate in making this assessment. In deciding on the necessity for a provision, management takes into account the probability of an unfavorable outcome and whether the amount of the obligation can be estimated with sufficient reliability. The fact that an action has been launched or a claim asserted against the Group, or that a legal dispute has been disclosed in the notes, does not necessarily mean that a provision is recognized for the associated risk.

DHL Group considers itself to be exposed to an increasingly complex and uncertain macroeconomic and geopolitical environment. This includes potential increases in fuel, energy and gas prices, which can be at least partially compensated for or passed on to customers through strict cost management and the established levers such as price increases and price surcharge mechanisms. In addition, strong volatility is still expected on the goods and financial markets and in exchange rates, driven by rising interest and inflation rates. Moreover, the risk of a potential decline in global economic growth can be observed, which could lead to an increased number of customer bankruptcies.

All assumptions and estimates are based on the circumstances prevailing and assessments made as of the reporting date. For the purpose of estimating the future development of the business, a realistic assessment was also made at that date of the economic environment likely to apply in the future to the different sectors and regions in which the Group operates. In the event of developments in these economic parameters that diverge from the assumptions made, the actual amounts may differ from the estimated amounts. In such cases, the assumptions made and, where necessary, the carrying amounts of the relevant assets and liabilities are adjusted accordingly.

As of the date of preparation of the consolidated financial statements, there is no indication that any significant change in the assumptions and estimates made will be required, so that on the basis of the information currently available, it is not expected that there will be significant adjustments in the 2025 fiscal year to the carrying amounts of the assets and liabilities recognized in the financial statements.

9 Consolidation methods

The consolidated financial statements are based on the IFRS financial statements of Deutsche Post AG and the subsidiaries, joint operations and investments accounted for using the equity method included in the consolidated financial statements and prepared in accordance with uniform accounting policies as of December 31, 2024.

Subsidiaries included in the consolidated financial statements are consolidated using the acquisition method of accounting.

The assets and liabilities, as well as income and expenses, of joint operations are included in the consolidated financial statements in proportion to the interest held in these operations, in accordance with IFRS 11. Accounting for the joint operators’ share of the assets and liabilities, as well as recognition and measurement of goodwill, use the same methods as applied to the consolidation of subsidiaries.

In accordance with IAS 28, joint ventures and companies on which the parent can exercise significant influence (associates) are accounted for in accordance with the equity method. Any goodwill is recognized under investments accounted for using the equity method.

In the case of step acquisitions, the equity portion previously held is remeasured at the fair value applicable as of the acquisition date, and the resulting gain or loss is recognized in the income statement.

Intra-Group revenue, other operating income and expenses, as well as receivables, liabilities and provisions between companies that are consolidated or proportionately consolidated, are eliminated. Intercompany profits or losses from intra-Group deliveries and services not realized by sale to third parties are eliminated. Unrealized gains and losses from business transactions with investments accounted for using the equity method are eliminated on a proportionate basis.