Balance sheet disclosures

22 Intangible assets

Overview

Information on the impairment losses included in amortization and impairment losses can be found in note 16.

The additions to goodwill from business combinations relate to SDS Holdings (€215 million), CRYOPDP (€140 million), IDS (€41 million), ASMO (€30 million) and Inmar (€27 million), note 2. Purchased software, concessions, industrial rights, licenses and similar rights and assets are reported under purchased intangible assets. Internally generated intangible assets relate to development costs for internally developed software.

Allocation of goodwill to CGUs

For the purposes of annual impairment testing in accordance with IAS 36, the Group determines the recoverable amount of a CGU, or a group of CGUs, on the basis of its value in use. This calculation is based on projections of free cash flows that are initially discounted at a rate corresponding to the post-tax cost of capital. Pretax discount rates are determined iteratively.

The cash flow projections are based on the detailed planning for EBIT, depreciation and amortization, and capital expenditure adopted by management, as well as changes in net working capital, and take both internal historical data and external macroeconomic data into account. The cash flow forecasts for the CGUs are influenced by current geopolitical uncertainties and macroeconomic conditions. Moderate growth is expected for the express market and subdued growth for freight logistics. The contract logistics market is likely to continue its long-term growth trend in 2026. For the eCommerce business, growth is expected to continue even in the context of tariff and trade policy changes. In most CGUs, risks in connection with volatile commodity prices, especially changes in fuel prices (kerosene, diesel and marine fuels) are largely passed on to customers through operational measures (fuel surcharges) and are reflected in the forecasts accordingly. The cash flow forecasts include the planned expenses for decarbonization measures to achieve the targets for reducing emissions by 2030. These will expand the use of sustainable fuels and technologies in fleets and buildings. The cash flow forecasts also include potential revenue from customers' ability to purchase carbon compensation together with transport services under GoGreen Plus or offsetting schemes.

From a methodological perspective, the detailed planning phase covers a three-year planning horizon from 2026 to 2028. By contrast, an extended planning phase of five years was applied for the eCommerce CGU. The eCommerce division has not yet reached a steady state. This reflects the relatively high capital expenditure over the next three years, which is expected to enable considerable future growth, with these benefits gradually also materializing in EBIT. The expectation is that a stable state will be achieved in 2030. Planning is supplemented by a perpetual annuity representing the value added from 2029 onward, or following the extended planning phase. This is calculated using a long-term growth rate, which is determined for each CGU or each CGU group separately and is shown in the table below. The growth rates applied are based on long-term real growth figures for the relevant economies, growth expectations for the relevant sectors and long-term inflation forecasts for the countries in which the CGU or CGU groups operate. The cash flow forecasts are based both on past experience and on the effects of the anticipated future general market trend. In addition, the forecasts take into account growth in the respective geographical submarkets and in global trade, and the ongoing trend toward outsourcing logistics activities. Cost trend forecasts for the transport network and services also have an impact on value in use. A key planning assumption for the impairment test is the EBIT margin for the perpetual annuity.

The pretax cost of capital is based on the weighted average cost of capital. The (pretax) discount rates for the significant CGU or CGU group and the growth rates assumed in each case for the perpetual annuity are shown in the following table:

On the basis of these assumptions and the impairment tests carried out for the individual CGUs or CGU groups to which goodwill was allocated, it was established that the recoverable amounts for all CGUs or CGU groups exceed their carrying amounts. No impairment losses were recognized on goodwill in any of the CGUs or CGU groups as of December 31, 2025.

When performing the impairment test, DHL Group conducted sensitivity analyses for the individual CGUs or CGU groups in accordance with IAS 36.134 for potential changes to the EBIT margin, the discount rate and the growth rate. These analyses – which included varying the essential valuation parameters within an appropriate range – did not reveal any risk of impairment to goodwill.

23 Property, plant and equipment

Overview of property, plant and equipment, including right-of-use assets

Disclosures on right-of-use assets are contained in note 42. Negative currency effects and higher depreciation and impairment losses led to a decrease in property, plant and equipment, despite the capital expenditures made.

Additions to transport equipment include additional expenditure of €149 million (previous year: €170 million) for the electrification of the fleet of pickup and delivery vehicles. The additional expenditure for investments in technologies for making new buildings climate-neutral amounted to €39 million (previous year: €34 million).

Advance payments on items of property, plant and equipment are only reported where the Group has paid advances in connection with incomplete transactions. They relate, in particular, to the renewal of the Express air fleet.

24 Investment property

The investment property largely comprises leased property encumbered by heritable building rights and developed and undeveloped land. Of the €77 million of property reported as of December 31, 2025 (previous year: €9 million), €4 million consists of right-of-use assets (previous year: €4 million). The fair value of investment property was €100 million.

Transfers from inventories in the 2025 fiscal year related primarily to buildings in China, due to a change in intended use, and comprised leasehold land with buildings for the purposes of generating rental income.

25 Investments accounted for using the equity method

Net income from investments accounted for using the equity method increased by €28 million to €61 million. This was due to the change in consolidation method for ASMO, note 2, and the income of €67 million this generated in June 2025. It was set against negative effects from the ongoing equity method valuation.

The increase in the carrying amount of associates resulted predominantly from the addition of Evri (Project Edge Topco Limited), note 2, at €780 million and AJ Express Ltd. at €44 million. The disposal of joint ventures was attributable to the Polish company APM Solutions. With the acquisition of the remaining 51% of the shares in October 2025, the consolidation method was changed to full consolidation.

The table below shows the carrying amount in the consolidated financial statements and selected financial data for the companies concerned:

The equity interest in Evri was acquired on September 30, 2025, and has since been included in the consolidated financial statements as an associate accounted for using the equity method. Evri’s fiscal year differs from that of DHL Group and ends in February. At the time of preparation, only the preliminary financial statements for Evri as of the acquisition date were available, note 2.1, which also served as the basis for the measurement as of December 31, 2025. There were no known material nonrecurring transactions up to December 31, 2025. The change recognized in other comprehensive income, shown below in the reconciliation to the carrying amount as of December 31, 2025, relates to currency translation of the investment's carrying amount.

26 Financial assets

Financial assets rose due to a loan from Deutsche Post AG to a company belonging to the pension fund in Germany, new short-term time deposits and investments in money market funds. Derivatives were down significantly year on year, as the short-term derivatives were realized in 2025.

Expected credit loss needs to be identified for debt instruments and lease assets measured at amortized cost. Based on the expected credit loss model (impairment model), a loss allowance must be recognized for the expected credit loss. These financial instruments were recognized in Stage 1 at the reporting date. With the exception of €4 million in impairment losses, there were no further indications as of the reporting date of any poor performance of the debt instruments and lease assets. There was no reclassification between the stages in the fiscal year. The following table documents the loss allowance for debt instruments of €1,750 million (previous year: €904 million) and lease assets of €926 million (previous year: €871 million) measured at amortized cost.

No cash flows from the debt instruments above were modified in the fiscal year and no changes were made to the model for determining risk parameters.

The lease assets relate primarily to receivables from certain embedded subleases for warehouses note 7. The undiscounted amounts of the outstanding lease payments have the following maturity dates:

Further details on leases can be found in note 42.

27 Other assets

Of the tax receivables, €473 million (previous year: €506 million) relates to VAT, €198 million (previous year: €158 million) to customs and duties, and €58 million (previous year: €51 million) to other tax receivables.

Prepaid expenses primarily relate to pension contributions (€260 million; previous year: €253 million), transportation expenses (€230 million; previous year: €319 million) and insurance premiums (€153 million; previous year: €147 million), alongside a large number of smaller items.

Pension assets increased, primarily because of remeasurements in the United Kingdom, note 37.

The emissions certificates item comprises the carrying amounts of certificates held as part of the emission-trading systems in the EU and the United Kingdom.

Miscellaneous other assets include a large number of individual items.

28 Deferred taxes

Deferred taxes have not been recognized for tax loss carryforwards not expected to be utilized in the amount of €1,130 million (previous year: €1,195 million). Of these, €307 million (previous year: €448 million) is attributable to tax loss carryforwards from US subsidiaries for state taxes. The tax loss carryforwards for which no deferred tax assets were recognized do not expire prior to 2031. Moreover, deferred tax assets have not been recognized for temporary differences not expected to be utilized in the amount of €85 million (previous year: €95 million).

Deferred taxes have not been recognized for temporary differences of €953 million (previous year: €772 million) for accrued earnings of subsidiaries, because these temporary differences will probably not reduce in the foreseeable future.

29 Inventories

The changes in finished goods and work in progress largely relate to real estate development projects. Adequate impairment losses were recognized.

30 Trade receivables

Trade receivables from customer relationships amounting to €11,305 million were due within one year as of the reporting date (previous year: €11,198 million). They are held primarily with the aim of collecting the principal amount of the receivables. These items are therefore assigned to the “held to collect contractual cash flows” business model and measured at amortized cost. Trade receivables changed as follows:

Trade receivables include accrued revenue amounting to €1,091 million (previous year: €1,069 million).

Loss rates

The following table provides an overview of loss rates by age band that were used in the Group for the fiscal year under review:

Trade receivables are derecognized when a reasonable assessment indicates they are no longer recoverable.

Factoring

In the 2025 fiscal year, there were no material factoring transactions in place that obliged the banks to purchase existing and future trade receivables.

31 Cash and cash equivalents

Of the €3,376 million in cash and cash equivalents, €1,494 million was not available for general use by the Group as of the reporting date (previous year: €1,477 million). Of this amount, €1,475 million (previous year: €1,429 million) was attributable to countries where exchange controls or other legal restrictions apply (mostly China, India and Thailand) and €18 million (previous year: €48 million) primarily to companies with noncontrolling-interest shareholders.

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

Planned sale of DHL eCommerce Portugal

In December 2024, the Spanish company DHL eCommerce and the Portuguese company CTT Expresso entered into a strategic partnership with the aim of leveraging the growth potential in the e-commerce and parcel market in Spain and Portugal. The companies will establish specialized joint ventures for this purpose. DHL eCommerce will sell 100% of the shares in DHL Parcel Portugal to the new joint venture. The assets and liabilities were reclassified as of December 31, 2024, to the balance sheet items “assets held for sale” and “liabilities associated with assets held for sale.” The intention to sell is unchanged as of December 31, 2025; however, the transaction could not be completed within the 12-month period originally expected. The delay is attributable to the still-pending regulatory approval. DHL eCommerce continues to actively pursue the sale and expects the transaction to complete once regulatory approval has been granted. The assets continue to be measured at the lower of carrying amount and fair value less costs to sell. No impairment losses have been recognized.

33 Issued capital and purchase of treasury shares

The KfW’s interest in Deutsche Post AG’s share capital as of December 31, 2025, is 17.73% (previous year: 16.99%). Free float accounts for 79.60% of the shares at the reporting date (previous year: 79.11%) and the remaining 2.67% (previous year: 3.90%) of shares are owned by Deutsche Post AG. The KfW is the largest shareholder in Deutsche Post AG and holds the shares in trust for the federal government.

Changes in issued capital

The Board of Management resolved on September 26, 2025, to reduce the issued capital by €50 million through the retirement of 50 million treasury shares that the company had acquired based on the authorizations granted by the Annual General Meetings on May 6, 2021, May 4, 2023, and May 2, 2025. The issued capital is now composed of 1,150,000,000 (previous year: 1,200,000,000) no-par-value registered shares (ordinary shares) with a notional interest in the issued capital of €1 per share and is fully paid up. The issued capital thus amounts to €1,150 million.

Authorized and contingent capital

The Articles of Association can be accessed on the company’s website or in the electronic company register. They may also be viewed in the commercial register of the Bonn Local Court.

Authorization to acquire treasury shares

By way of a resolution adopted by the Annual General Meeting on May 2, 2025, the company is authorized to acquire treasury shares in the period to May 1, 2030, of up to 10% of the share capital existing when the resolution was adopted. The authorization permits the Board of Management to exercise it for every purpose permitted by law, and in particular to pursue the goals mentioned in the resolution by the Annual General Meeting. In addition, the Board of Management is authorized to acquire treasury shares totaling up to 10% of the share capital existing when the resolution was adopted by means including using derivatives. The prior resolutions dated May 4, 2023, and the authorization granted until May 3, 2028, to purchase treasury shares were revoked for the period beginning when the new authorization took effect.

SHARE BUYBACK PROGRAM

In February 2022, the Board of Management of Deutsche Post AG passed a resolution on a share buyback program for up to 50 million shares at a total purchase price of up to €2 billion. The share buyback program has been expanded multiple times, most recently on February 18, 2025, to reach a total of up to 210 million shares and a total purchase price of up to €6 billion, with an overall term ending no later than December 2026. The repurchased shares will either be retired, used to service long-term executive remuneration plans and employee participation programs or used to meet potential obligations if rights accruing under potential future convertible bonds are exercised.

Based on the authorization granted by the Annual General Meeting on May 2, 2025, the Board of Management has resolved to repurchase a further tranche (Tranche IX) of up to 20 million shares with a total volume of up to €600 million in the period from December 1, 2025, to no later than April 15, 2026, in order to implement the share buyback program as amended by the Board of Management resolution of February 18, 2025.

In the 2025 fiscal year, 35.9 million shares were repurchased for a total of €1,376 million. 115.9 million shares have been acquired in total since April 2022. This equates to a total volume of approximately €4.5 billion.

Detailed information on the individual tranches can be found in the following table:

Share-based remuneration programs

Treasury shares were also acquired to settle the 2024 SMS tranche. The 1.2 million shares were acquired at an average price per share of €42.04 for a total of €51 million. A total of 2.4 million shares were issued to executives for the 2024 SMS tranche and claims to matching shares under the 2020 tranche at a cost of €97 million and an average price per share of €39.64.

As in the previous year, the performance targets were not achieved, meaning that there was no settlement of the 2021 PSP tranche. A total of 0.4 million shares were issued to the executives concerned to settle the Employee Share Plan. Employees participating in the myShares plan received 0.3 million shares.

On December 31, 2025, Deutsche Post AG held 30,756,761 treasury shares (previous year: 46,783,573).

Disclosures on corporate capital

In the 2025 fiscal year, the equity ratio (total equity divided by total assets) was 31.9% (previous year: 34.6%). The corporate capital is monitored using the net gearing ratio, which is defined as net debt divided by the total of equity and net debt.

34 Reserves

34.1 Capital reserves

34.2 Retained earnings

In addition to the changes from dividend distributions, changes from remeasurements of the net pension provisions and the recognition of consolidated net profit, retained earnings also include the changes from capital increases and decreases, which are described in more detail in the following:

Tranche IX of the share buyback program 2022/2026, with a total volume of up to €600 million, began on December 1, 2025, and is being implemented by an independent financial services provider until April 15, 2026, on the basis of an irrevocable agreement. At the time the agreement was concluded, the resulting obligation was charged in full to retained earnings and recognized as a financial liability. As no shares had been repurchased as of December 31, 2025, the liability is reported in full. The obligation to repurchase shares after December 31, 2025, is included in the amount of €600 million.

35 Equity attributable to Deutsche Post AG shareholders

The equity attributable to Deutsche Post AG shareholders in the 2025 fiscal year amounted to €22,227 million (previous year: €23,793 million).

Dividends

Dividends paid to the shareholders of Deutsche Post AG are based on the net retained profit of €7,905 million (previous year: €8,872 million) reported in Deutsche Post AG’s annual financial statements in accordance with the HGB. The Board of Management is proposing a dividend of €1.90 per no-par-value share carrying dividend rights (proposed and distributed in the previous year: €1.85). This corresponds to a total dividend of €2,123 million (previous year: €2,123 million). Moreover, the Board of Management is proposing to transfer €1,000 million (previous year: €1,500 million) from net retained profit to other earnings reserves. The amount of €4,782 million (previous year: €5,240 million) remaining after deduction of the planned total dividend and the transfer to other earnings reserves will be carried forward to new account. The final total dividend will be based on the number of shares carrying dividend rights at the time the Annual General Meeting resolves upon the appropriation of the net retained profit on the day of the Annual General Meeting.

36 Noncontrolling interests

This balance sheet item includes adjustments for the interests of non-Group shareholders in consolidated equity from acquisition accounting, as well as their interests in profit or loss. The following table shows the companies to which the noncontrolling interests relate:

There are material noncontrolling interests in the following two companies:

DHL Sinotrans International Air Courier Ltd. (Sinotrans), China, which is assigned to the Express segment. DHL Group holds a 50% interest in the company. Despite DHL Group not having a majority of voting rights, the company is fully consolidated. Sinotrans provides domestic and international express delivery and transport services. The company is fully integrated into the global DHL network and operates exclusively for DHL Group. Due to the arrangements in the Network Agreement, DHL Group is able to prevail in decisions concerning Sinotrans’ relevant activities. Sinotrans has therefore been consolidated although DHL Group holds only 50% of the company’s share capital.

Deutsche Post AG holds a 75% interest in Blue Dart Express Limited (Blue Dart), India, which is assigned to the eCommerce segment. Blue Dart is a courier service provider.

The following table gives an overview of the aggregated financial data of Sinotrans and Blue Dart:

The portion of other comprehensive income attributable to noncontrolling interests largely relates to the currency translation reserve. The changes are shown in the following table:

37 Provisions for pensions and similar obligations

The Group’s most significant defined benefit retirement plans are in Germany and the United Kingdom. A wide variety of other defined benefit retirement plans in the Group are to be found in Switzerland, the United States and a large number of other countries. There are specific risks associated with these plans along with measures to mitigate them.

37.1 Plan features

Germany

In Germany, Deutsche Post AG has an occupational retirement benefit arrangement based on a collective agreement, which is open to new hourly workers and salaried employees. Depending on the weekly working hours and wage/salary group, retirement benefit components are calculated annually for each hourly worker and salaried employee and credited to an individual pension account. A 2.5% increase on the previous year is included in every newly allocated component. When the statutory pension falls due, the hourly workers and salaried employees can choose whether to receive payment as a lump sum or in installments, or lifelong monthly benefit payments that increase by 1% each year. The large majority of Deutsche Post AG’s obligations relate to vested entitlements of hourly workers and salaried employees from a previous agreement, and to legacy pension commitments toward former hourly workers and salaried employees who have left or retired from the company. In addition, retirement benefit arrangements are available to executives below the Board of Management level and to specific employee groups through deferred compensation, in particular. For information on the pension scheme for the Board of Management, see note 47.2.

The prime source of external funding for Deutsche Post AG’s respective retirement benefit obligations is a contractual trust arrangement, which also includes a pension fund. The trust is funded on a case-by-case basis in line with the Group’s finance strategy. In the case of the pension fund, the regulatory funding requirements can, in principle, be met without additional employer contributions. Part of the plan assets consists of real estate that is leased out to the Group on a long-term basis. In addition, Versorgungsanstalt der Deutschen Bundespost (VAP – Deutsche Bundespost institution for supplementary retirement pensions), a shared pension fund for successor companies to Deutsche Bundespost, is used for some of the legacy pension commitments.

Individual subsidiaries in Germany have defined-benefit retirement plans that were acquired in the context of acquisitions and transfers of operations and that are closed to new entrants. A contractual trust arrangement is in place for one subsidiary for external funding.

United Kingdom

In the United Kingdom, the Group’s defined benefit pension arrangements are closed to new entrants and for further service accrual.

The Group’s defined benefit pension arrangements in the United Kingdom have mainly been consolidated into a Group plan with different sections for the participating divisions. These are funded mainly via a Group trust. The amount of the employer deficit contributions must be negotiated with the trustee in the course of funding valuations, which are carried out every three years and most recently in 2024. Normal contribution amounts no longer accrue because the arrangements have been closed.

Other

In Switzerland, employees receive an occupational pension in line with statutory requirements, where pension payments depend on the contributions paid, an interest rate that is fixed each year, certain annuity factors and any pension increases specified. A separate plan providing for lump-sum payments instead of lifelong pension payments exists for specific higher wage components. In the United States, the companies’ defined benefit retirement plans have been closed to new entrants and accrued entitlements have been frozen.

The Group companies fund their dedicated defined benefit retirement plans in both these countries primarily by using respective joint funding institutions. In Switzerland, both employers and employees contribute to plan funding. In the United States, no regularly recurring contributions are currently made in this regard – with the exception of some limited employer deficit contributions that are currently expected to continue until 2027.

37.2 Financial performance of the plans and determination of balance sheet items

The present value of defined benefit obligations, the fair value of plan assets and net pension provisions changed as follows:

In the year under review, the remeasurements caused net pension provisions to fall. Total payments amounting to €228 million are expected with regard to net pension provisions in 2026. Of this amount, €173 million is attributable to the Group’s expected direct benefit payments and €55 million to expected employer contributions to pension funds.

The disaggregation of the present value of defined benefit obligations, fair value of plan assets and net pension provisions, as well as the determination of the balance sheet items, is as follows:

In the “Other” area, Switzerland and the United States account for a share in the corresponding present value of the defined benefit obligations of 35% and 13%, respectively (previous year: 34% and 14%, respectively).

Additionally, the Group had reimbursement rights in Germany related to former Group companies in the amount of €3 million (previous year: €8 million) and reimbursement rights in the United Kingdom related to state institutions in the amount of €25 million (previous year: €27 million), both to be reported separately under financial assets. Corresponding benefit payments are being made directly by the former Group companies in Germany and the state institutions in the United Kingdom.

37.3 Additional information on the present value of defined benefit obligations

The significant financial assumptions are as follows:

The discount rates for defined benefit obligations in the eurozone and the United Kingdom were each derived from an individual yield curve comprising the yields of AA-rated corporate bonds and taking into account the expected payment profile and duration. For other countries, the discount rate for defined benefit obligations was determined in a similar way, provided there was a sufficiently deep market for AA-rated (or, in some cases, AA- and AAA-rated) corporate bonds. By contrast, government bond yields were used for countries without a deep market for such corporate bonds.

For the annual pension increase in Germany, fixed rates in particular must be taken into account, in addition to the assumptions shown. The effective weighted average therefore amounts to approximately 1.04% (previous year: 1.00%).

The most significant demographic assumptions made relate to life expectancy and/or mortality. For the Group companies in Germany, they are based on the HEUBECK-RICHTTAFELN 2018 G. Life expectancy for the retirement benefit plans in the United Kingdom was based mainly on the S4NMA_H/S4DFA tables of the Continuous Mortality Investigation (CMI) of the Institute and Faculty of Actuaries, adjusted to reflect plan-specific mortality according to the latest funding valuation. Future mortality improvements were taken into account based on the current CMI projections model and an updated long-term trend assumption. For other countries, their own country-specific current standard mortality tables were used.

If one of the significant financial assumptions were to change, the present value of the defined benefit obligations would change as follows:

These are effective weighted changes in the respective present value of the defined benefit obligations, for example taking into account the largely fixed nature of the pension increase in Germany.

A one-year increase in life expectancy for a 65-year-old beneficiary would increase the present value of the defined benefit obligations by 2.65% in Germany (previous year: 2.81%) and by 2.34% in the United Kingdom (previous year: 2.53%). The corresponding increase for other countries would be 2.99% (previous year: 1.68%) and the total increase would be 2.60% (previous year: 2.60%).

When determining the sensitivity disclosures, the present values were calculated using the same methodology used to calculate the present values as of the reporting date. The presentation does not take into account interdependencies between the assumptions; rather, it supposes that the assumptions change in isolation. This would be unusual in practice, since assumptions are often correlated.

The weighted average duration of the Group’s defined benefit obligations as of December 31, 2025, was 11.2 years in Germany (previous year: 11.7 years) and 10.5 years in the United Kingdom (previous year: 10.8 years). In the other countries it was 12.0 years (previous year: 12.2 years), and in total it was 11.1 years (previous year: 11.5 years).

A total of 30.1% (previous year: 29.5%) of the present value of the defined benefit obligations was attributable to active beneficiaries, 17.7% (previous year: 17.2%) to formerly employed beneficiaries and 52.2% (previous year: 53.3%) to retirees.

37.4 Additional information on the fair value of plan assets

The fair value of the plan assets can be disaggregated as follows:

Quoted market prices in an active market exist for around 58% (previous year: 55%) of the total fair values of plan assets. The remaining assets for which no such quoted market prices exist are attributable as follows: 14% (previous year: 17%) to real estate, 13% (previous year: 15%) to fixed income securities, 5% (previous year: 6%) to insurances, 4% (previous year: 3%) to alternatives and 6% (previous year: 4%) to other. The majority of the investments on the active markets are globally diversified, with certain country-specific focus areas.

Real estate included in plan assets in Germany with a fair value of €935 million (previous year: €1,501 million) is used by DHL Group. Further disclosures on this topic can be found in note 48.1.

Asset-liability studies are performed at regular intervals in Germany and the United Kingdom, as well as, among other places, Switzerland and the United States, for the purpose of matching assets and liabilities; the strategic allocation of plan assets is adjusted accordingly. Strategic asset allocation for the respective plans is mainly carried out on the basis of the structure of the underlying obligations. As part of this, different strategies are pursued in some individual countries. These strategies include, among others, the comprehensive hedging of obligations (liability-driven investment) or securing of future cash flows (cash-flow-driven investment). The common factor in the strategies is that they are determined in consideration of the respective regulatory framework and in consideration of return expectations and the risk-bearing ability of the company. Due to the plan-related derivation of the capital investment strategies in consideration of the specific economic parameters, there are significant differences in the alignment of the investments.

ESG criteria are taken into account in the management of pension assets, in particular as part of risk management and thus as part of the long-term direction of the investment strategy.

37.5 Risk

Specific risks are associated with the defined benefit retirement plans. This can result in a (negative or positive) change in DHL Group’s equity through other comprehensive income, whose overall relevance is classed as medium to high. In contrast, a low relevance is attached to the short-term effects on staff costs and net finance costs. Potential risk mitigation is applied depending on the specifics of the plans.

Interest rate risk

A decrease (increase) in the respective discount rate would lead to an increase (decrease) in the present value of the total obligation and would in principle be accompanied by an increase (decrease) in the fair value of the fixed income securities contained in the plan assets. Further hedging measures are applied, in some cases using derivatives.

Inflation risk

Pension obligations – especially relating to final salary schemes or schemes involving increases during the pension payment phase – can be linked directly or indirectly to changes in inflation. The risk of increasing inflation rates with regard to the present value of the defined benefit obligations has been mitigated in the case of Germany, for example, by switching to a system of retirement benefit components and, in the case of the United Kingdom, by closing the defined benefit arrangements. In addition, fixed rates of increase have been set and increases partially capped, and/or lump-sum payments have been provided for. There is also a positive correlation with interest rates.

Investment risk

The investment is in principle subject to a large number of risks; in particular, it is exposed to the risk that market prices may change. This is managed primarily by ensuring broad diversification and the use of hedging instruments.

Longevity risk

Longevity risk may arise in connection with the benefits payable in the future due to a future increase in life expectancy. This is mitigated, in particular, by using current standard mortality tables when calculating the present value of the defined benefit obligations. The mortality tables used in Germany and the United Kingdom, for example, include an allowance for expected future increases in life expectancy.

38 Other provisions

Other provisions break down into the following main types of provision:

Changes in other provisions

The provision for other employee benefits covers, among other things, workforce reduction expenses such as severance payments, partial retirement and early retirement as well as stock appreciation rights (SARs) and anniversary payments. The increase results primarily from the addition to the early-retirement program.

Loss reserves consist mainly of outstanding-loss reserves and IBNR (incurred but not reported) reserves, note 7, and are at the same level as in the previous year.

The provision for aircraft maintenance has reduced slightly and relates to obligations for major aircraft and engine maintenance by third-party companies.

Of the tax provisions, €128 million (previous year: €79 million) relates to VAT, €19 million (previous year: €20 million) to customs and duties and €80 million (previous year: €69 million) to other tax provisions. The increase resulted primarily from additions to provisions for a VAT-related matter.

Miscellaneous provisions include a large number of individual items. The risks from business activities relate primarily to provisions for guarantees and compensation payments to customers, as well as provisions for losses from onerous contracts. In addition, miscellaneous provisions include the obligation to return CO₂ emissions certificates and restructuring provisions.

Maturity structure

The maturity structure of the provisions recognized in the 2025 fiscal year is as follows:

39 Financial liabilities

The amounts due to banks comprise mainly current overdraft facilities and loan obligations due to various banks.

Other financial liabilities primarily include, alongside a large number of smaller items, the obligation of €600 million for the repurchases still to be carried out from the tranche IX of the share buyback program.

Bonds

Convertible bond

The convertible bond 2017/2025 in the amount of €1 billion plus accrued interest was repaid in full as of June 30, 2025. No conversion took place, as the price of the underlying shares remained below the agreed conversion price.

40 Other liabilities

All items that relate to transactions with employees are reported under employee-related liabilities.

Of the tax liabilities, €617 million (previous year: €668 million) relates to VAT, €1,061 million (previous year: €652 million) to customs and duties, and €213 million (previous year: €219 million) to other tax liabilities.

Miscellaneous other liabilities include a large number of individual items.

Maturity structure

There is no significant difference between the carrying amounts and the fair values of the other liabilities due to their short maturities or near-market interest rates. There is no significant interest rate risk because most of these instruments bear floating rates of interest at market rates.

41 Trade payables

Trade payables declined by €745 million to €7,889 million (previous year: €8,635 million). Trade payables are unsecured. Given its short-term nature, the carrying amount constitutes a reasonable approximation of fair value.

Supplier finance arrangements

Supplier finance arrangements are in place for liabilities of €333 million (previous year: €349 million). Of that total, trade payables account for €324 million (previous year: €336 million), of which financial service providers have already settled €232 million (previous year: €263 million). Supplier finance arrangements worth €9 million (previous year: €13 million) are attributable to financial liabilities, for which the suppliers have already received payments of €9 million (previous year: €3 million) from financial service providers.

The Group would not be exposed to significant liquidity risk even without the supplier finance arrangements, as the scope of the liabilities covered by these arrangements is limited and makes up only a small proportion of trade payables, and the Group has access to other sources of financing on similar terms.

There are liabilities subject to supplier finance arrangements in 24 countries (previous year: 26). The high maxima are linked to the specific payment terms in the individual countries. The maximum for Europe is attributable to Spain and Italy, for Latin America to Brazil and Colombia, and for Asia to the Philippines, resulting in maximum maturity periods exceeding 90 days.