Steering metrics

Financial and nonfinancial key performance indicators

DHL Group uses both financial and nonfinancial performance indicators in its management of the Group. The monthly, quarterly and annual changes in these indicators are compared with prior-year data and forecast data to assist in making management decisions. The year-to-year changes in the indicators described here also play a role in the calculation of management remuneration. The Group’s financial performance indicators are intended to preserve a balance between profitability, the efficient use of resources and adequate liquidity. How these metrics are computed is illustrated in calculations. The performance of the financial key figures in the fiscal year is described in the report on economic position and the performance of nonfinancial key figures in the Group Sustainability Statement.

There were no changes to the Group’s financial management system in the 2025 fiscal year. Starting from 2026, ROIC (return on invested capital) will be used instead of EAC (EBIT after asset charge) to manage capital efficiency. With this change, we are improving comparability with competitors. In addition, the metric of free cash flow excluding acquisitions and divestitures (FCF excl. M&A) will replace the existing free cash flow performance indicator. This is in order to adequately assess the Group’s underlying operational performance and avoid setting the wrong incentives with regard to Strategy 2030, which also includes inorganic growth options.

We measure progress on sustainability using seven nonfinancial performance indicators: logistics-related greenhouse gas (GHG) emissions, Realized Decarbonization Effects, Employee Engagement, the share of women in middle and upper management, the accident rate (lost time injury frequency rate, LTIFR) per million hours worked, the share of valid certificates for compliance training in middle and upper management, and the cybersecurity rating. In addition, the performance indicators Realized Decarbonization Effects, Employee Engagement and cybersecurity rating are incorporated into – and account for 10%, respectively, of – the target portfolio for annual bonus calculation of the Board of Management. These performance indicators have also been included in the bonus calculation for executives in upper management. The targets and results of these key figures are described in the report on economic position, the development is presented in the Group Sustainability Statement and the outlook for the 2026 fiscal year is provided in the expected developments, opportunities and risks chapter.

EBIT and EAC (EBIT after asset charge)

The profitability of the Group’s operating divisions is measured as profit from operating activities (EBIT). No segment-specific financial performance indicators are used.

Up to and including the 2025 fiscal year, an additional indicator – EBIT after asset charge (EAC) – is calculated by subtracting the asset charge, a cost-of-capital component, from EBIT. Making the asset charge a part of business decisions encourages the efficient use of resources and ensures that our operational business is geared toward increasing value sustainably while improving cash flow.

The asset charge is calculated on the basis of the weighted average cost of capital, or WACC, which is defined as the weighted average net cost of interest-bearing liabilities and equity, taking into account company-specific risk factors in accordance with the Capital Asset Pricing Model.

A standard WACC of 8.5% is applied across the divisions. That figure also represents the minimum target for projects and investments within the Group. The WACC is generally reviewed once annually on the basis of the current situation on the financial markets. To ensure better comparability of the asset charge with previous figures, in 2025 the WACC used here was maintained at a constant level compared with the previous years.

The asset charge is calculated each month so that fluctuations in the net asset base can also be taken into account during the year. The composition of the net asset base is shown in the calculations.

Starting from 2026, the management of our business will be based on return on invested capital (ROIC) alongside EBIT. ROIC is used for the long-term component of management remuneration and is taken as a three-year average. Return on invested capital is the ratio of the operating result (EBIT) to invested capital and indicates what percentage of capital invested is converted into EBIT over a rolling twelve-month period. Invested capital corresponds here to the net asset base previously used to calculate the EAC. An average figure for invested capital will be calculated for the last twelve months so that fluctuations during the year also continue to be taken into account.

Free cash flow facilitates liquidity management

Cash flow is another key financial performance metric used by Group management. The goal is to maintain sufficient liquidity to cover all of the Group’s financial obligations from debt repayment and dividends, in addition to meeting payment commitments arising from the Group’s operations and investments. Cash flow is calculated using the cash flow statement.

Operating cash flow (OCF) includes all items that are related directly to operating value creation. Another key parameter impacting OCF is net working capital. Effective management of net working capital is an important way for the Group to improve cash flow in the short to medium term.

Free cash flow (FCF) is a management indicator derived from OCF. It is used as an indicator of how much cash is available to the company for paying out dividends or repaying debt at the end of a reporting period. Starting from 2026, free cash flow will be replaced as a management indicator by free cash flow excluding acquisitions and divestitures (FCF excl. M&A).

Steering and reducing greenhouse gas emissions

We aim to reduce the greenhouse gas (GHG) emissions caused by our operations, as well as our dependency on fossil fuels, in order to mitigate the impact of our operations on the global climate.

We use the logistics-related GHG emissions as a medium-term target. We use a second performance indicator – the Realized Decarbonization Effects – to measure the emissions that we were able to avoid through the use of energy from renewable sources and sustainable technologies compared with conventional energy and technologies.

We draw on recognized standards such as the Greenhouse Gas Protocol, ISO 14083 and the Global Logistics Emissions Council (GLEC) Framework when calculating our GHG emissions. We apply the emission factors from the GLEC Framework 3.1 (kerosene, diesel, natural gas-based fuels) and the 2024 factor set of the International Energy Agency (electricity and district heating). To calculate the market-based effects (fossil fuel substitution certificates come third), we use the guidelines of the Voluntary Market Based Measures Framework for Logistics Emissions Accounting and Reporting published by the Smart Freight Centre. Reductions in emissions through offsetting are not factored into our GHG emissions calculation.

As part of our steering, we consider the logistics-related GHG emissions including the upstream chain from fuel production (well-to-wheel) and include the GHG emissions caused or avoided by our transport subcontractors (Scope 3). We record the GHG emissions from categories 3 “Fuel- and Energy-Related Activities”, 4 “Upstream Transportation and Distribution” and 6 “Business Travel”, which are also included in our targets, in the calculation of Scope 3 emissions. The use of sustainable fuels is a significant focus of our climate protection activities. The savings generated through these measures offer us the opportunity to implement climate protection in our own supply chain in a targeted manner. As part of this, fossil fuels are replaced by either the direct use of certified sustainable fuels or the documented use thereof. This makes a positive impact on our target calculation. Non-logistics-related GHG emissions in the Scope 3 categories 1 “Purchased Goods and Services,” 2 “Capital Goods” and 7 “Employee Commuting” are not included in our steering process, as they are less relevant.

Employee engagement as a factor for success

Motivated and committed employees contribute to the success of the company. In the annual Group-wide survey, all employees who have been actively employed at DHL Group for at least three months at the time of the survey are given the opportunity to anonymously rate the company’s strategy and values as well as their working conditions. The Employee Engagement key performance indicator represents the aggregated and weighted results of five statements in the annual Group-wide survey of employees.

Promote diversity

We use the performance indicator of the share of women in middle and upper management to measure the success of our measures for equal treatment and equal opportunities. As part of this measurement, executives working part-time are counted on a per-person basis. We reviewed our measures and targets in the 2025 fiscal year due to the changes in local legal requirements in the United States. To act in accordance with local legislation, we no longer include employees in the United States in the steering process or in our targets.

Occupational health and safety as a focus

We measure the effect of workplace accidents based on the accident rate (lost time injury frequency rate, LTIFR), which is determined using the number of work-related accidents per million hours worked that lead to at least one day of missed work for the affected person following the day of the accident.

Subject cybersecurity to independent external assessment

Our cybersecurity undergoes independent assessment by the external rating agency BitSight. This cybersecurity rating is based on the technical analysis of any weak points and brings potential security risks to the attention of the rated company. Assessment of the security situation is carried out by an automated service on a daily basis. Unlike a self-assessment, a cybersecurity rating offers greater transparency and enables comparison with other companies thanks to standardization. We compare our performance with DAX 40 companies as well as major customers and logistics companies that are not a part of the DAX. The BitSight cybersecurity rating KPI is steering-relevant and is also included in the calculation of the annual bonus for the Board of Management.

Conduct compliance-relevant training

Our aspiration is to be a reliable and trustworthy partner in all business relationships. When conducting day-to-day business, our managers serve an important function as role models to the employees and business partners, which is why corresponding training is of such importance for executives. We measure success in this area on the basis of the share of valid certificates for compliance training in middle and upper management.