Digital Power Corp DPW
Q4 2011 Earnings Call Transcript

Transcript Call Date 03/08/2012

Operator: Good day and welcome to the Deutsche Post DHL Q4 Results 2011 Conference Call.

Martin Ziegenbalg - IR: Thank you and warm welcome here from Bonn to all of you out there on Deutsche Post DHL's Full Year 2011 and particularly Q4 2011 Conference Call. As announced in our invitation I have got here with me our CEO, Frank Appel and our CFO, Larry Rosen, who in the usual format will take you through the presentation I take it you have in front of you. Talking about material in front of you, also want to remind everyone of the IR stat book that we have send out and that is available.

Without further adieu, I'd like to handover to Frank.

Dr. Frank Appel - CEO: Good afternoon to everybody or good morning where you are. So, I am very pleased to report that we had a very good year in 2011, and let me jump straightaway into the presentation on Page 2 that summarizes that we had a strong performance in Q4 not different from the previous quarters.

We have -- strong increase of the main DHL division's EBIT. So on that basis we are capable to propose to the AGM an increase in our dividend from €0.65 to €0.70 and we want to give an outlook for the year that we will increase our EBIT to €2.5 billion to €2.6 billion even further here.

Going to Page 4, you will definitely remember that we have several times said in three years that we want to improve our performance along three bottom lines to become the provider of choice, the employer of choice and the investment of choice. I would like to give you now some highlights along with three dimensions. First of all on Page 5 you can see that all the guidance’s we gave you if you got your EBIT we have met so starting with the Group we outperformed the guidance by €14 million in the MAIL and increase guidance we outperformed by €10 million, with the DHL divisions had a very nice growth rate and ending up €1.72 billion and finally the Corporate Center remained flat year-over-year and we achieved here the guidance as well.

So all the financial targets have been met that allows us to in alliance with our finance policy to increase the dividend by €0.05 and that’s now the second year in the row. We think that we shipped let our shareholders participate as well in the nice development of the Company.

If I go to Page 7 to come to the second bottom line provider of choice what makes me very confident for the future as well that in all parts of the Company we made a very good progress if you got to customer satisfaction in the Deutsche Post and we had record satisfaction and that is externally measured but also in the DHL divisions we made very good progress and we have very high satisfaction ahead of the competition around the world. We have improved for very critical touch points mentioned here quite a bit and also in the other divisions FORWARDING and SUPPLY CHAIN we increased the customer satisfaction in most countries too.

Why is that important? If the customers gets more satisfied with our service they will definitely will show a higher interest in buying our services. One example where we made very good progress is with regard the announced sector management, and here you see examples of four sectors. I don't want to go in too much detail here. What I want to share is that the life science and healthcare sector has grown double digit, and that's definitely more than the underlying growth of that industry. That comes from the investments in new competent centers and good solutions like the SmartSensor technology and other things, so we are very happy that we succeeded in a very challenging and ambitious and expectation-high industry.

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