Through this approximately EUR 700 million deal, DPDHL Group and S.F. Holding enter a 10-year strategic partnership to grow supply chain operations in ChinaDPDHL Group's supply chain China business to be incorporated into S.F. Holding, and operate as a co-branded organization

SHANGHAI, CHINA - Media OutReach^[1] - October 26, 2018 - Deutsche Post DHL Group ("DPDHL Group"), the world's leading mail and logistics company, has entered into a landmark deal that will transfer its supply chain operations in China to S.F. Holding ("S.F."), a leading premium logistics service provider in the country. The transaction involves the supply chain business in Mainland China, Hong Kong and Macau, herein after referred to as "China". This has no bearing on DPDHL Group's business activities in international express, freight transport and e-commerce logistics solutions in China.

Jeffrey Chan, Chief Strategy Officer, S.F. Holding (left) and Pablo Ciano, Executive Vice President, Head of Corporate Development, Deutsche Post DHL Group (right) at the signing ceremony in Shanghai, China on October 26, 2018.

A firm handshake between Dick Wong, Chairman, S.F. Holding (left) and John Gilbert, Global CEO, DHL Supply Chain (right) at the signing ceremony in Shanghai, China on October 26, 2018. Other executives are, from left : Julie Zhu, CFO, Greater China, DHL Supply Chain; Jeffrey Chan, Chief Strategy Officer, S.F. Holding; Pablo Ciano, Executive Vice President, Head of Corporate Development, Deutsche Post DHL Group; and Yin Zou, CEO, Greater China, DHL Supply Chain.

As part of this strategic deal, DPDHL Group will receive an upfront payment of RMB 5.5 billion (approximately EUR 700 million) and a revenue-based partnership fee over the next ten years. S.F. will have access to DPDHL Group's best-in-class supply chain services, management expertise, transportation and warehousing technology. The co-branded organization will operate under the leadership of Yin Zou, the current CEO, Greater China of DHL Supply Chain, along with his existing management team.

This strategic partnership will allow DPDHL Group to continue to participate in the fast-growing Chinese supply chain market, leveraging S.F.'s extensive domestic infrastructure, distribution network and broad base of local customers. This will accelerate the expansion of the co-branded organization's customer base. DPDHL Group is committed to enhancing the organization's product and services offering by providing the breadth of its global supply chain expertise.

"The joint capabilities of DPDHL Group and S.F. will create a unique platform to meet the need for a high quality end-to-end supply chain provider in China. S.F.'s local market expertise in China has real advantages for our customers across all industries including technology, healthcare, retail, automotive and e-commerce. Combined with our global operations standards and network support, the agreement provides a solid foundation to continue exploring further opportunities in China in the coming years," said Frank Appel, CEO Deutsche Post DHL Group.

"S.F. has been actively expanding its business-to-business (B2B) capabilities and pursuing different strategic partnerships to grow S.F. into a truly integrated logistics solutions provider that delivers best-in-class services for our clients. This partnership agreement will strengthen our capability in providing supply chain services to a diverse realm of industries and allow us to bring world-class management expertise into our supply chain business operations, enabling us to further understand and tailor to our customer needs," said Dick Wong, Chairman, S.F. Holding. "This agreement will help us achieve our vision to grow further internationally, partnering with DPDHL Group, a world class organization."

On the Internet: dpdhl.de/press^[2]

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Deutsche Post DHL Group is the world's leading mail and logistics company. The Group connects people and markets and is an enabler of global trade. It aspires to be the first choice for customers, employees and investors worldwide. The Group contributes to the world through responsible business practices, corporate citizenship and environmental activities. By the year 2050, Deutsche Post DHL Group aims to achieve zero emissions logistics.

Deutsche Post DHL Group is home to two strong brands: Deutsche Post is Europe's leading postal service provider. DHL offers a comprehensive range of international express, freight transport, and supply chain management services, as well as e-commerce logistics solutions. Deutsche Post DHL Group employs approximately 520,000 people in over 220 countries and territories worldwide. The Group generated revenues of more than 60 billion Euros in 2017.

Die Post für Deutschland. The logistics company for the world.

S.F. Holding is a leading integrated logistics service provider in China, providing its customers with integrated logistics services from transportation to warehousing management, from sales forecasting and data analytics to settlement and cash management, as well as supply chain management services. S.F. is also a smart logistics operator with network scale advantages. Building upon years of operations and of constructing its strategic framework, S.F. has formed an integrated three-pronged logistics service network that integrates its aviation network, ground network, and information network to cover both domestic and overseas customers.

References

1. ^{^} Media OutReach (www.media-outreach.com)
2. ^{^} dpdhl.de/press (www.dpdhl.de)
3. ^{^} twitter.com/DeutschePostDHL (www.twitter.com)