Slide 1 TRAINING. Slide 2 What is the Global Heavyweight Express about? How? nTarget the right customers and decision makers nUnderstand where DHL can.

Slide 1TRAINING

Slide 2

What is the Global Heavyweight Express about?

How?

Target the right customers and decision makers

Understand where DHL can beat Freight Forwarders

Reinforce DHL Express value proposition to customers in the heavier weight category

Good margin

Big market opportunities

DHL price advantage

Why?

Operational capabilities

Existing customers shipping in this weight

Superior product

What?

An International Program designed to:

Increase international outbound and inbound shipments in the 40 – 150 lbs. range

Attract traditional users of freight forwarders

Slide 3

Global Heavyweight Business Case

Market analysis proved that the Market Opportunity is large in the US

International Express Rev / ShareLess than 150 lbs*

Other Express Carriers$2.9B39%

DHL Express$783M11%

Forwarders$3.6B50%

* Excludes Docs$USD

Source: Colography Group /

$ 3.6B worth of shipments less than 150 lbs. Forwarders carry instead of DHL

3000+ freight forwarders

Slide 4

Business Objectives

Why Can DHL Succeed Against Freight Forwarders?

Price

Reliability

Speed

Ease of use

Slide 5

DHL vs. Freight ForwardersComparison of Strengths & Weaknesses - PRICE

SpeedSpeed

Strengths and BenefitsCustomer

Requirement

Freight ForwardersWeakness’ and disadvantages

Single Price quote End Price not always clear

One shipment charge Multiple Charges

Local and Single Currency

Various shipping charges in multiple currencies

Single Invoice Multiple Invoices

Single Price all year Premium Peak Prices at busy times

Wide range of free packaging materials provide cost savings to customers

Packaging is chargeable for all sizes, weights and shapes

Price Visibility

Easy invoice reconciliatio

n

Easy invoice reconciliation

Control of Costs

PRICE ReliabilityReliability

Mgt ControlPackaging Materials

No Hidden Cost

Slide 6

DHL vs. Freight ForwardersComparison of Strengths & Weaknesses - RELIABILITY

PricePrice RELIABILITYRELIABILITY SpeedSpeed

Strengths and BenefitsCustomer

Requirement

Freight ForwardersWeakness’ and disadvantages

Reliable and well established worldwide infrastructure for international, express shipping

Use of multiple sub contractors leading to inefficient, complex and slower

international shipments.Door-to-Door Door-to-Airport

Airport-to-DoorAirport-to Airport

Global Track and Trace system with real time information

Not available/ track and trace limited to Airline systems

DHL trained staff from pick-up @ origin to delivery at destination

Use of sub contractors at all or most steps

Choice of automated solutions for shipment administration and management

Shipment documentation is chargeable

DHL Customs brokers in 170+ countries Extensive use of third part brokers and ‘clearance agents’

Higher security for peace of mind with trained DHL personnel – no 3rd party

Security is undermined by use of multiple agents

Delivery Service

Closed LoopSystem

Shipment Visibility

Customs Expertise

Security

Security

Mgt Control

Slide 7

DHL vs. Freight ForwardersComparison of Strengths & Weaknesses - SPEED

PricePrice

Strengths and BenefitsCustomer

Requirement

Freight ForwardersWeakness’ and disadvantages

Seamless, speedy door-to-door deliveries Longer delivery cycle for door to door

Guaranteed uplift on daily commercial and owned flights

Shipment consolidationUplift on alternate days

Priority loading and off-loading service with premium payment for guaranteed cargo space

Cargo space secured @ normal/lower rates hence, no guarantee/priority on

cargo handling93% of shipments cleared in the air into

the USA. We have direct links Government Customs systems

Only some freight forwarders are capable of Clearance in air

To Door Service commitment To port service commitment

DHL Customs brokers in 170+ countries – no need to outsource clearance of shipments to

external brokers

Extensive use of third part brokers and ‘clearance agents’

20+ years relationship with Customs.Government Customs Staff on site at our

gateways to speed clearance of shipments

Do not have the relationship DHL has built with Customs

Delivery Service

Closed LoopSystem

Guaranteed Space

Customs Expertise

Clearance in Air

Seamless transportation

ReliabilityReliability SPEEDSPEED

Customs relationship

Slide 8

Cost comparison DHL V Freight Forwarders

Straight forward Competitive Pricing DHL Express is price competitive up to 150 lbs, depending on the direction of trade and trade lane.

0

50

100

150

200

250

Mex

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Arg

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a

Bra

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Fra

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Italy

Ger

man

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Chi

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Sin

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Mal

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Internal Market Analysis

DHL Price Competitiveness by Weight vs. Average Forwarder (OB- lbs.)

0

20

40

60

80

100

120

Mex

ico

Arg

entin

a

Bra

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Fra

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Italy

Ger

man

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Chi

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Sin

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Mal

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Internal Market Analysis

DHL Price Competitiveness by Weight vs. Average Forwarder (IB - kg)

Slide 9

Freight Forwarder Invoice

In this one Freight Forwarder invoice there are 14 Charges in two Currencies

Slide 10

Generally, Forwarders quote only the Air

Freight portion, making DHL look expensive.

1 Pick up

2 Export Documentation

3 Outbound Airport Handling

4 Air Freight

5 Inbound Airport Handling

6 Customs Clearance

7 Delivery

466$ 541$

70$

146$

60$

115$

95$

20$

35$

Freight Forwarders

One price Multiple Costs

PricePrice ReliabilityReliability SpeedSpeed

A 50 kg Shipment of toy kites from Chicago to Singapore

OB Airport Handling: Handling ($35) + Airport Transfer ($25) + Terminal Charges ($35) Air Freight: Air Freight ($60) + Fuel Surcharge ($30) + Security Surcharge ($25) Customs Clearance: Customs Brokerage ($51) + Documentation ($38) + Customs Examination ($32) + EDI ($25)

DHL Price: Considers a customer that ships 3-4 p/mth with RSD discount (24%)

Generally, Forwarders quote only the Air Freight portion, making DHL look

expensive.

Slide 11

Global Heavyweight Tool

Enables you to compare DHL prices against a forwarder.

Pre–Loaded forwarder rates for specific countries.

Ability to enter in specific forwarder rates that you may have obtained from a customer.

Easy to print of Comparison charts and graphs.

To obtain instructions on the Global Heavyweight Pricing Tool please download instructions from the GHWE micro site.

Date: May 05 2006

Prepared by: Reference RateUS Gateway

Shipment Type

Destination

Minimum/Weight Bands

-45

45

Customer Name 100

DHL Contract 200

DHL Discount 300

Fuel Surcharge % 500

WPX Extra Charges

Items

AWB Fee Higher of Min or Per Unit 20.00 0.00 0.0%

1.00 Customs Clearance (Origin) Higher of Min or Per Unit 0.00 0.00 0.0%

5.00 Customs Clearance (Destination) Higher of Min or Per Unit 150.00 0.00 0.0%

10.00 Delivery Charge Higher of Min or Per Unit 65.00 0.00 0.0%

25.00 Documentation Higher of Min or Per Unit 0.00 0.00 0.0%

50.00 Fuel Surcharge Higher of Min or Per Unit 20.00 0.30 0.0%

75.00 Handling Charge (Origin) Higher of Min or Per Unit 30.00 0.12 0.0%

100.00 Pickup Charge Higher of Min or Per Unit 35.00 0.30 0.0%

125.00 Security Surcharge Higher of Min or Per Unit 10.00 0.15 0.0%

150.00 Terminal Fee Higher of Min or Per Unit 30.00 0.00 0.0%

175.00 Handling Charge (Destination) Higher of Min or Per Unit 0.00 0.00 0.0%

200.00 Airport Transfer Higher of Min or Per Unit 15.00 0.10 0.0%

225.00 Automated Export System 15.00 0.00 0.0%

350.00 Extra Charge 1 0.00 0.00 0.0%

500.00 Extra Charge 2 0.00 0.00 0.0%

Discount - 2006 Base

18.50

34.75

Per Kg

Freight Forwarder Name ABC Freight Forwarder Company

Per Shipment55.00

51.50

355.00

426.00

87.25

211.50

281.00

Weight (Lbs)

580.00

652.50

507.50

50.0% Discount, Zone K

1.81

1.75

1.51 Per Kg

Per Kg

McArthur Jr

1,015.00

1,450.00

DHL & Forwarder Rates Comparison

Outbound (WPX)

#N/A

146.00

INPUT DHL RATES

INPUT AIR FREIGHT FORWARDER RATES

Discount - 2006 Base

50.0%

14.5%

Per Kg1.45

1.39

1.33

Extra Charge Format

Per Kg

Per Kg

Per Shpt / Min. Charge

Per Unit Fee

% of Freight

Rate Comparison

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1.00 5.00 10.00 25.00 50.00 75.00 100.00 125.00 150.00 175.00 200.00 225.00 350.00 500.00

Weight (lbs)

$US

D

AFF Freight AFF Extra Charges Total DHL Rates (Incl. Fuel Surcharge)

B

A

C

D

E

Outbound (WPX)

Brazil

Discount - 2006 Base

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Per Shipment only

Per Shipment only

Miami-Ft Lauderdale Origin Rates (Outbound Only)

Brazil

JFK

Slide 12

Global Heavyweight Tool Tip’s

Date: May 05 2006

Prepared by: Reference RateUS Gateway

Shipment Type

Destination

Minimum/Weight Bands

-45

45

Customer Name 100

DHL Contract 200

DHL Discount 300

Fuel Surcharge % 500

WPX Extra Charges

Items

AWB Fee Higher of Min or Per Unit 20.00 0.00 0.0%

1.00 Customs Clearance (Origin) Higher of Min or Per Unit 0.00 0.00 0.0%

5.00 Customs Clearance (Destination) Higher of Min or Per Unit 150.00 0.00 0.0%

10.00 Delivery Charge Higher of Min or Per Unit 65.00 0.00 0.0%

25.00 Documentation Higher of Min or Per Unit 0.00 0.00 0.0%

50.00 Fuel Surcharge Higher of Min or Per Unit 20.00 0.30 0.0%

75.00 Handling Charge (Origin) Higher of Min or Per Unit 30.00 0.12 0.0%

100.00 Pickup Charge Higher of Min or Per Unit 35.00 0.30 0.0%

125.00 Security Surcharge Higher of Min or Per Unit 10.00 0.15 0.0%

150.00 Terminal Fee Higher of Min or Per Unit 30.00 0.00 0.0%

175.00 Handling Charge (Destination) Higher of Min or Per Unit 0.00 0.00 0.0%

200.00 Airport Transfer Higher of Min or Per Unit 15.00 0.10 0.0%

225.00 Automated Export System 15.00 0.00 0.0%

350.00 Extra Charge 1 0.00 0.00 0.0%

500.00 Extra Charge 2 0.00 0.00 0.0%

Discount - 2006 Base

18.50

34.75

Per Kg

Freight Forwarder Name ABC Freight Forwarder Company

Per Shipment55.00

51.50

355.00

426.00

87.25

211.50

281.00

Weight (Lbs)

580.00

652.50

507.50

50.0% Discount, Zone K

1.81

1.75

1.51 Per Kg

Per Kg

McArthur Jr

1,015.00

1,450.00

DHL & Forwarder Rates Comparison

Outbound (WPX)

#N/A

146.00

INPUT DHL RATES

INPUT AIR FREIGHT FORWARDER RATES

Discount - 2006 Base

50.0%

14.5%

Per Kg1.45

1.39

1.33

Extra Charge Format

Per Kg

Per Kg

Per Shpt / Min. Charge

Per Unit Fee

% of Freight

Rate Comparison

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1.00 5.00 10.00 25.00 50.00 75.00 100.00 125.00 150.00 175.00 200.00 225.00 350.00 500.00

Weight (lbs)

$US

D

AFF Freight AFF Extra Charges Total DHL Rates (Incl. Fuel Surcharge)

B

A

C

D

E

Outbound (WPX)

Brazil

Discount - 2006 Base

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Higher of Min or Per Unit

Per Shipment only

Per Shipment only

Miami-Ft Lauderdale Origin Rates (Outbound Only)

Brazil

JFK

Show a ‘Typical’ example from your region to gain customer interest.

Gather all the information you need.

Make sure that you have included all the extra charges.

Ask the customer if you think they have not included all Extra Charges.

Use standard charges if they do not know all of their Forwarder charges.

Slide 13

You are now the key: Target the right customers Find the decision makers Determine if they want express

or deferred Use your sales approach

accordingly

You have the tools: Pricing Tool Portfolio Optimiser COMET

DHL has what it takes: Price Reliability Speed Customers prefer to use us!

Big opportunities: Big Forwarder market Big Revenue Fragmented Competition FTB/SPD

Summary: Selling Heavier Weights

DHL carries 2 Million Packages over 20 kg every year.