Development in the first half of 2021

• Significant recovery to above pre-Covid-19 levels.
• Quality improvements with positive effects.
• Further increase in demand for the digital platforms Connect4land and Drive4Schenker.

In land transport, demand recovered significantly and even rose above pre-Covid-19 levels. Growth was achieved in particular in direct, system and special transport services. The development was also spread widely across regions.

The economic development was very strong, with operating profit figures developing significantly positively as a result of a noticeable increase in income. The pre-Covid-19 level was exceeded:

• Revenue increased significantly due to price and performance factors. Adjusted for exchange rate effects, the increase was somewhat less pronounced.
• Other operating income remained roughly stable.

Development on the expenses was marked by rising volume development in the cost-intensive areas of direct, system and special transport. In comparison with income, however, the increase was significantly less strong overall:

• The cost of materials increased noticeably, in line with the development of demand. Slightly rising prices and exchange rate effects supported the development.
• Other operating expenses increased due to IT costs being subject to reclassification measures not affecting profits applied internally within the business unit.
• Personnel expenses increased due to performance and exchange rate effects.

The number of employees increased as a result of higher demand.

• Strong recovery in demand, especially in air freight.
• Significant increase in freight rates.
• Air freight: various measures to secure transport operations, standardization and productivity improvements implemented.
• Ocean freight: projects to improve efficiency and optimize organization implemented worldwide.
• Very strong economic development.

The performance development was varied:

• In air freight, it was significantly positive and rose above the pre-Covid-19 level. This was driven by increased demand for transport for electronic, automotive and medical goods. A massive, non-sustainable shift in transport demand from ocean freight also contributed.
• In ocean freight, it was only slightly above the low level of the first half of 2020. Performance increases in the Asia/Pacific region and recovery trends were almost completely eliminated by the strained situation regarding the availability of equipment and capacity.

Th economic development was very satisfactory. The adjusted profit figures improved due to the significant increase in revenues:

• Revenue increased significantly, mainly as a result of freight rate developments. Volume development also brought about a significant revenue increase in air freight. Adjusted for exchange rates, the increase was even more pronounced.
• Other operating income increased significantly at a low level as a result of volume development and Covid-19-­­related grants.

The volume and freight rate development in air freight were particularly noticeable on the expenses side:

• The cost of materials increased significantly, mainly as a result of higher air freight volumes and freight rate development. Exchange rate effects, in contrast, reduced expenses.
• Other operating expenses increased due to IT costs being subject to reclassification measures not affecting profits applied internally within the business unit.
• Personnel expenses remained virtually unchanged. A performance-related increase was almost completely offset by countermeasures in the trade fair business and due to exchange rate effects.

The number of employees fell as a result of the Covid-19-­­related volume development in the trade fair business.

• Significant recovery of business activities following stricter restrictions as a result of the Covid-19 pandemic.
• The growth drivers are Asia/Pacific and America – a lack of semiconductors is slowing development in Europe.
• Productivity improvement measures being implemented.
• Significant increase in profits.

The development in contract logistics followed the trend in the overall market thanks to the business line’s portfolio that is diversified geographically and by market sector. There was also a slight increase in market share overall (especially in the region Asia-Pacific and America). Developments in Europe were slowed by the semiconductor shortage and the greater dependence on the automotive industry.

The economic development was very satisfying in a challenging market environment. Adjusted profit figures rose, driven by disproportionately high earnings growth, even significantly above the pre-Covid-19 level.

• Revenues increased significantly again, driven by recovery effects following the stricter restrictions as a result of the Covid-19 pandemic. Effects from interruptions to production and supply chains were more than offset, primarily by the electronics and consumer sectors. Adjusted for exchange rate effects, revenues increased even more sharply.
• Other operating income fell slightly at a low level.

On the expense side, the recovery in demand was particularly noticeable:

• Other operating expenses increased due, among other things, to IT costs being subject to reclassification measures not affecting profits applied internally within the business unit. Exchange rate effects, on the other hand, partially reduced costs.
• The cost of materials increased in line with revenue development. Exchange rate effects, on the other hand, partially reduced costs.
• Personnel expenses were approximately at the level of the first half of 2020. Increases in expenses due to a higher number of employees were almost entirely offset by exchange rate effects.

The number of employees remained almost stable.