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Interim Report January 1 to June 30, 2003

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H1/2003

• Despite a good operating performance, cuts in mail prices and low interest

rates reduced consolidated revenue slightly by 0.8% to €19,195 million.

• EXPRESS and LOGISTICS Corporate Divisions recorded strong earnings

growth

• Profit from operating activities (EBITA) for the Group fell by 6.6% to

€1,469 million due to the lower mail prices and one-time other operating

income recorded in the prior year

• Consolidated net profit rose substantially from €155 million to €650 million

• Measures implemented under the STAR value creation and integration

program made an accumulated contribution to earnings of €260 million

H1 H1 Change

2002 2003 in %

Total revenue in €m 19,351 19,195 –0.8

thereof international revenue in €m 7,724 7,775 0.7

Profit from operating activities (EBITA) in €m 1,5731) 1,469 –6.6

Return on sales2) in % 8.1 7.7

Net profit for the period in €m 1,032 666 –35.5

Consolidated net profit for the period in €m 155 650 319.4

Cash flow3)(Postbank at equity) in €m 1,427 769 –46.1

1) Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 2)EBITA/revenue

3)Cash flow from operating activities

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Business developments

Although the war in Iraq came to an end in April 2003, the global economy continues to stagnate. In Germany, too, no trend reversal materialized in the second quarter of the calendar year.

In H1/2003, Deutsche Post World Net generated rev-enueof €19,195 million, down slightly on the comparative prior-period amount (€19,351 million). Profit from oper-ating activities (EBITA)fell in the first half of 2003 by 6.6% to total €1,469 million (previous year: €1,573 million). The fundamentally strong operating performance was impacted by three factors: firstly, the price reductions ordered by the regulatory authorities at the beginning of the year, which we had anticipated in our margin target for the MAIL Corporate Division for 2003 as a whole. The second factor, namely the fact that income from the reversal of Postbank’s negative goodwill was no longer included, was also factored into our margin forecast. In addition, we recorded one-time other operating income in the previous year, distorting the basis of comparison.

Revenue increased in the LOGISTICS Corporate Divi-sion and, in particular, in the EXPRESS Corporate DiviDivi-sion; it fell in the MAIL Corporate Division. Income in the FINANCIAL SERVICES Corporate Division fell as a result of the low level of interest rates. However, this did not impact earnings. The proportion of consolidated revenue generated abroad rose from 39.9% in the prior-year period to 40.5%.

Profit from operating activities (EBITA) developed in much the same way as revenue: the substantial increase in earnings in the EXPRESS and LOGISTICS Corporate Divi-sions was offset by a drop in earnings in the MAIL and FINANCIAL SERVICES Corporate Divisions. This was due to the development of other operating income, as well as the lowered mail prices. Other operating income fell year-on-year from €922 million to €474 million, mainly for two reasons: firstly, the largest single item, the reversal to income of Post-bank’s negative goodwill, is no longer included in 2003. In previous years, the reversal of this negative goodwill increased earnings for the Group as a whole and the FINANCIAL SERVICES Corporate Division by approximately €212 mil-lion each year. Secondly, we were able to record one-time

Since the beginning of 2003, we have been reporting the interest cost on provisions for pensions and on other interest-bearing provisions under net finance costsinstead of in profit from operating activities (EBITA); the prior-year amounts have been adjusted to enhance comparison. Net finance costs totaled €382 million (previous year: €301 mil-lion) in the period under review. This includes the interest cost on provisions for pensions and on other interest-bearing provisions of €293 million (previous year: €244 million).

With a tax rate of 30%, we recorded consolidated net profitof €650 million in H1/2003 (previous year: €155 mil-lion). The consolidated net profit for the previous year was impacted by the provision which we had to set up to take account of the European Commission’s ruling on state aid and which was reflected in the extraordinary expense. Earnings per sharealso improved accordingly from €0.14 to €0.58.

Cash flow(Postbank at equity) totaled €769 million in the period under review (previous year: €1,427 million). This includes the repayment of allegedly unjustified state aid total-ing €907 million (includtotal-ing interest) to the Federal Republic of Germany at the beginning of the year.

Compared with December 31, 2002 (€1,497 million),

net debt(Postbank at equity) as of June 30, 2003 increased to €2,228 million. The dividend payments totaling €445 mil-lion for fiscal year 2002 on June 6, 2003 reduced cash and cash equivalents, which are also factored into this measure. We included long-term deposits in net debt for the first time as of June 30, 2003. The amount reported on December 31, 2002 was adjusted accordingly.

The investment expendituresreported under cash flows from investing activities (Postbank at equity) increased year-on-year from €578 million to €931 million. This growth is primarily the result of an increase in DHL’s noncurrent financial assets.

Report by the Board of Management

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Report by the Board of Management

The opportunities and risks presented in the 2002 Annual Report remained more or less unchanged in the sec-ond quarter of 2003. In the spring, we assumed that the lung disease SARS would spread further, thus impacting the busi-ness activities of Deutsche Post World Net in those regions affected. Looking back, however, this was not the case. In Asia Pacific, some trends even started reversing: to avoid the risk of infection, personal contact in the region declined rapidly, resulting in an increase in the shipment volume.

As a service provider, Deutsche Post World Net does not undertake any research and development activities in the narrower sense, and thus has not made any corresponding disclosures.

Significant events

Dividend increases after a difficult year

At the Annual General Meeting (AGM) of Deutsche Post AG on June 5, 2003, the shareholders approved the pro-posal made by the Board of Management and the Supervisory Board and resolved the distribution of €445 million. For our shareholders, this corresponds to a dividend of €0.40 per share and, as such, to an increase of 8.1% – encouraging news after a difficult year. The AGM also authorized the Company to acquire own shares. In addition to the authorization resolved last year, the Board of Management is now also authorized to cancel the own shares purchased, with the consent of the Supervisory Board, and without requiring a further resolu-tion by the AGM.

Progress despite headwind in strategic acquisitions

In the first few months of the current fiscal year, we completed a series of strategically valuable acquisitions for which we were still awaiting approval. As reported in the interim report for Q1/2003, Deutsche Post World Net will acquire a 100% interest in Securicor Omega Holdings Ltd., a joint venture that was established in the UK in 1999. We have now overcome the hurdle of the approval process: the European Commission approved the acquisition of the remaining stake on June 20, 2003. We fully consolidated the company for the first time on July 1, 2003.

Our planned acquisition of US express delivery company Airborne, Inc. is facing the expected legal and political head-wind from competitors UPS and FedEX. Airborne, Inc.’s shareholders will vote on the transaction at the company’s General Meeting, which is scheduled for August 14, 2003. We aim to complete the acquisition as soon as it has been approved by the shareholders and all necessary regulatory approvals have been obtained.

Deutsche Post and ver.di sign employment pact

On July 5, 2003, Deutsche Post AG and the ver.di services union agreed on a package of pioneering measures. These measures mean that the Company will rule out all compulsory redundancies until March 31, 2008 and will guarantee that deliveries are made by Deutsche Post employees until the end of 2006, with the exception of 600 parcel districts. In return, we can expand the combined delivery system, which means that mail carriers can now also deliver parcels. Weekly working hours in deliveries can be extended to 48 hours on a voluntary basis, and two days which were previously holi-days have been abolished. This employment pact, which is the first of its kind in Germany, gives our employees job secu-rity for the next few years. At the same time, it also allows Deutsche Post to improve cost structures in the long term and thus substantially boost its competitiveness, particularly in the EXPRESS Corporate Division. This means that we have met one of the key criteria for achieving the improvements in earnings which we expect to realize by the end of 2005 as

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Report by the Board of Management

STAR value creation and integration program Global advertising campaign for new DHL umbrella brand

Since the beginning of the year, Deutsche Post World Net has been consolidating its national and international par-cel and express business, as well as its global logistics business, under the DHL brand. To make our customers aware of the benefits of the new DHL brand, we launched an international advertising campaign on May 1, 2003. The campaign shows how DHL will offer its customers “more”, in every sense of the word, in the future: more expertise – namely that of what were previously three separate companies. More efficiency – by means of integrated networks. More end-to-end solutions – that is, one-stop logistics. As part of our philosophy of “one face to the customer” we have been rebranding vehicles, packaging materials and buildings with the new design since April of this year. The brand relaunch, i.e. new design and international advertising, will cost around €125 million.

Further STAR projects have started successfully at DHL: the Global Mail and Danzas Air & Ocean Business Divisions are increasingly using the DHL aircraft instead of outsourcing, thus improving capacity utilization. Additional freight capaci-ties are now being consolidated and procured jointly. We are also further harmonizing our networks: the entire Asian region will be served by the new hub at Hong Kong International Airport in the future. This project, which is worth US$100 million, was ceremonially launched on May 15, 2003; the first of three construction phases is scheduled for completion as

Group-wide intranet portal bundles procurement volume

In addition to the measures at DHL, another main package of measures relating to STAR consists of various projects within the Group, including both division-specific and divisional initiatives. One key example of a cross-divisional project relates to procurement. As announced in the report for Q1/2003, we are working on pooling our sub-stantial purchasing power, which has a volume of around €16 billion per year. In May 2003, we commissioned our new procurement portal as part of this initiative. The intranet-based portal connects the existing Group platforms and will be the central information and transaction platform for Group procurement in the future. It will allow procurement employ-ees to access all of the information relevant to procurement and use the related applications from any location worldwide, and at any time.

We aim to improve earnings in this area by at least €200 million by 2005 (inclusive) by restructuring Group pro-curement, pooling our purchasing power, setting procure-ment standards and improving Group-wide procureprocure-ment management.

Price adjustments for mail services

One division-specific initiative launched as part of the STAR program involves extending the price adjustments for mail services made at the beginning of the year to cover

spe-Overview of significant events

In Q2/2003

May 1, 2003 Start of the global advertising campaign for the new DHL umbrella brand

May 2, 2003 Commissioning of the Group-wide intranet procurement portal May 12, 2003 Standard & Poor’s issues new credit rating on the Group May 15, 2003 Construction work starts on DHL’s new Asian hub at

Hong Kong International Airport

May 27, 2003 Deutsche Post publishes its first environmental report

June 5, 2003 AGM resolves 8.1% increase in dividend

June 20, 2003 European Commission approves full takeover of UK company Securicor Omega

June 21, 2003 Moody’s changes Deutsche Post World Net’s long-term credit rating

After June 30, 2003

July 5, 2003 Deutsche Post and ver.di agree forward-looking employment pact valid until 2008

July 21, 2003 US antitrust authorities raise no objections to the acquisition of Airborne, Inc.

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Report by the Board of Management

only) and Rückschein(advice of delivery). As is customary in other EU countries, we stopped offering our customers products such as redirection and storage free of charge at the beginning of the year. These price measures had a direct effect on profit from operating activities (EBITA) in H1/2003.

Structural improvements in the retail outlet network

One key aspect of STAR is to increase the use of, and make structural improvements to our existing networks. In doing so, we are focusing on the needs and usage patterns of our customers. Customer behavior in relation to the demand for financial services, for example, has changed substantially: more and more transactions are being made online or by telephone, and smaller retail outlets are scarcely being used for banking at all. At the same time, there is rising customer demand for qualified advice on financial transactions at the larger retail outlets. Postbank and Deutsche Post have now responded to this development by revising the offering in the retail outlet network: the 720 “center” outlets will be con-centrating even more on bank advisory services in the future. We will be providing our 2,200 financial services advisory employees with the appropriate further training. At the same time, Postbank has been focusing the activities of its around 1,200 smallest retail outlets on larger outlets since July 1, 2003. As with the review of the location of our mailboxes, this

demand-driven structural adjustment continues to comply fully with the quality standards set out by the Post-Universal-dienstleistungsverordnung(Postal Universal Service Ordi-nance): the number of Deutsche Post retail outlets will not change. In most locations, customers will continue to have access to a retail outlet at which they can conduct banking business within a three-kilometer radius. At present, Post-bank is represented at a total of around 11,500 retail outlets nationwide.

Contribution to earnings from the STAR program

In H1/2003, the measures implemented as part of the STAR value creation and integration program contributed €174 million to earnings, €81 million of which was attributable to the second quarter. As planned for the initial phase of the program, this was mainly achieved through cross-divisional projects within the Group. This means that the accumulated contributions to earnings from the STAR program from its launch in November 2002 to the present already amount to €260 million, as illustrated in the graphic below.

We are reiterating the projected earnings growth from STAR, and expect profit from operating activities (EBITA) in the Group to reach at least €3.6 billion by 2005.

2005 target: at least €1,400 million

2004 target: at least €700 million

2003 target: at least €350 million

in €m

STAR’s contribution to earnings

1,600 1,400 1,200 1,000 800 600 400 €260 million

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Report by the Board of Management

Outlook

We do not currently expect the global economy to recover noticeably in the current fiscal year. Although the end of the war in Iraq has removed one of the main sources of uncertainty on the markets, structural problems in the major industrialized countries are standing in the way of any immediate upturn. We had initially feared that the lung dis-ease SARS would impair our business activities. Fortunately, this is not the case. The spread of the disease appears to have been successfully stemmed: the World Health Organization (WHO) lifted all of the travel restrictions relating to the disease on July 5, 2003.

We do not believe that the somewhat weaker first half of 2003 is an indicator of earnings development in H2. For the period between July and December 2003, we expect the Group to record a profit from operating activities (EBITA)

which will be at least on the same level as the comparable prior-year period. This is why we believe that we can achieve a higher EBITA (at least €2.9 billion) for fiscal year 2003 as a whole than we expected in the spring. We had previously forecasted an EBITA of at least €2.8 billion.

We are forecasting earnings development at the Corporate Divisions as follows:

We still expect the MAILCorporate Division to achieve a minimum EBITA margin of 16% for 2003 as a whole. The fact that this target is down on last year’s adjusted figure of 17.7% is a result of the price cuts ordered for the most impor-tant mail products, which took effect on January 1, 2003 and which we are countering by stepping up our marketing activ-ities and with the addition of the new Foreign Domestic International Business Division.

In the EXPRESSCorporate Division, we still expect to achieve a minimum EBITA margin of 2.5% for 2003 as a whole; in fiscal year 2002, the adjusted EBITA margin amounted to 2.2%.

In the LOGISTICSCorporate Division, we still expect to achieve a minimum EBITA margin of 3.2%. The adjusted value for fiscal year 2002 was 3.0%.

In the FINANCIAL SERVICESCorporate Division, the income from the reversal of Postbank’s negative goodwill disclosed in the previous year is no longer included in 2003. In fiscal year 2002 as a whole, the income from the reversal of negative goodwill amounted to €212 million. For 2003 as a whole, we are still aiming to achieve a return on equity (RoE) from Postbank’s business operations of 11.5% (previous year: 10.7%) and to reduce the cost/income ratio to below 75%, as against the figure of around 77.7% for fiscal year 2002.

We are still anticipating a contribution to earnings from the STAR program of at least €350 million for the year as a whole, and estimate that consolidated net profitin 2003 will increase significantly in the absence of the extra-ordinary expense disclosed in the previous year.

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Deutsche Post Stock and Bonds

Deutsche Post stock

The economic environment remained difficult even after the end of the war in Iraq in Q2/2003. The European Central Bank issued a positive signal in June when it lowered key interest rates by 50 basis points to 2.00%. The DAX grew by around 4% in H1/2003. By contrast, Deutsche Post stock significantly outperformed the market again, growing by around 21%. As of June 30, 2003, the last trading day of the period under review, it closed at €12.79.

Deutsche Post’s shareholder structure has not changed from the structure presented in the 2002 Annual Report.

Bonds

In the second quarter of 2003, rating agencies Stan-dard & Poor’s (S&P) and Moody’s Investor Service (Moody’s) downgraded our credit rating for the Group’s long-term debt, as is shown in the overview on page 9. S&P had previously

changed its method of measuring pension provisions; these are now viewed as full financial liabilities. Along with other companies, we expressly disagree with this opinion, as we pointed out in our first interim report for 2003. Moody’s rea-sons for the downgrade include the planned acquisition of Airborne, Inc., which is considered to represent an additional risk for Deutsche Post World Net. S&P, on the other hand, sees the acquisition, as we do, as a positive step in strengthening the Group’s market position.

Even after the purchase of Airborne, Inc., the Group will still have a relatively low level of debt and a solid capital structure.

Because most of our financial liabilities are hedged by fixed rates of interest, the down-grades in the ratings will not have any direct effect on Group financing costs. Deutsche Post World Net will continue to pursue its traditionally sound and conservative financial policy in the future, in order to maintain its above-average credit rating.

Deutsche Post Stock and Bonds

1/2/03 1/17/03 2/1/03 2/16/03 3/3/03 3/18/03 4/2/03 4/17/03 5/2/03 5/17/03 6/1/03 6/16/03 6/30/03 130 120 110 100 90 80 70 60 103.72% 95.93% 120.66% in %

Deutsche Post share price development

Deutsche Post stock DAX

Euro STOXX 50

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Deutsche Post Stock and Bonds

Investor relations

On August 22, 2003 we are inviting analysts and insti-tutional investors to our “Capital Markets Day” held at our headquarters in Bonn for the second time this year. The event will focus on the MAIL and FINANCIAL SERVICES Corporate Divisions. “Capital Markets Day” will, like all other investor relations events, be broadcast live on the Internet at http://investorrelations.dpwn.de.

Deutsche Post World Net ratings

Rating Moody’s Standard & Poor’s Fitch Ratings

Investors Service

Long-term A1 A

AA-On Review for Negative On Rating Watch

possible Downgrade Negative

Short-term P-1 A-1 F1+

Stable Negative On Rating Watch

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Corporate Governance

The Board of Management and the Supervisory Board of Deutsche Post AG have resolved to comply with all of the recommendations of the German Corporate Governance Code in the version dated November 7, 2002. The resolutions adopted by the AGM of Deutsche Post AG on June 5, 2003 fulfill the final requirement for the implementation of this compliance.

In accordance with the recommendation set forth in section 5.4.5 of the German Corporate Governance Code, the AGM has resolved the amendment of the Company’s Articles of Association to include a provision on the per-formance-related remuneration of the Supervisory Board, and to take into account the chairmanship and membership of Supervisory Board committees.

In addition, the AGM has agreed to permit the trans-mission of the AGM via the Internet or another communica-tion medium, in order to give the public unrestricted access to the meeting.

The shareholders have also resolved a new stock option plan, which provides for competitive overall remuneration of management staff who have grown with the Company and are now internationally focused. The new plan’s first stock options will be issued on August 1, 2003.

The Government Commission on the German Corpo-rate Governance Code resolved amendments to the German Corporate Governance Code at its plenary meeting held on May 21, 2003, and, in particular, made new recommendations relating to the provisions governing the composition and amount of the remuneration of Boards of Management. The Board of Management and the Supervisory Board of Deutsche Post AG will examine these amendments in detail and respond to them in its annual Declaration of Conformity. As an anti-cipatory measure, the Chairman of the Supervisory Board presented the objectives and structure of the Board of Man-agement’s remuneration to the AGM in detail.

Corporate Governance

Personnel changes in the Group’s management and supervisory bodies

Supervisory Board: shareholders’ representatives

Left (June 30, 2003) Alfred N. Schindler

Appointed (July 15, 2003) Dipl.-Ing. Dr. Ing. E. h. Jürgen Weber,Chairman of the Supervisory Board, Deutsche Lufthansa AG

Supervisory Board: employees’ representatives

Left (June 5, 2003) Henry Hillmann

Petra Pfisterer

Appointed (June 5, 2003) Annette Harms,Deputy Chair of Works Council, Deutsche Postbank AG, Hamburg, Member of the Supervisory Board,

Deutsche Postbank AG

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The Corporate Divisions

The segments at a glance

• Lowered mail prices and one-time other operating income recorded in H1/2002 led to an expected drop in revenue and profit in the MAIL Corporate Division.

• Despite substantial negative currency effects, revenue in the EXPRESS Corporate Division increased – profit from operating activities (EBITA) is showing strong growth.

• At €77 million, profit from operating activities (EBITA) in the LOGISTICS Corporate Division is up 14.9% year-on-year.

• Additional income from Postbank operations has, to a large extent, already offset the discontinuation of the amortization of Postbank’s negative goodwill in the FINANCIAL SERVICES Corporate Division in 2003.

The Corporate Divisions

Segments by Corporate Division for H1

in €m MAIL EXPRESS1) LOGISTICS1) FINANCIAL Other/ Group

SERVICES2) Consolidation2) H1 H1 H1 H1 H1 H1 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 External revenue 5,094 5,022 7,518 7,663 2,733 2,737 3,948 3,715 58 58 19,351 19,195 Internal revenue 723 678 130 189 0 34 494 446 –1,347 –1,347 0 0 Total revenue 5,817 5,700 7,648 7,852 2,733 2,771 4,442 4,161 –1,289 –1,289 19,351 19,195

Profit or loss from operating activities

before goodwill amortization (EBITA) 1,2463) 1,106 1083) 168 67 77 2763) 232 –1243) –114 1,5733) 1,469

Goodwill amortization 1 2 70 89 48 45 0 0 0 0 119 136

Profit or loss from operating activities

after goodwill amortization (EBIT) 1,2453)

1,104 383)

79 19 32 2763)

232 –1243)

–114 1,4543)

1,333

Net income from associates 0 0 3 –22 2 0 0 0 –4 0 1 –22

Segment assets4)

4,311 4,003 10,210 10,191 3,159 3,034 140,135 135,034 –355 –60 157,460 152,202

Investments in associates4) 0 0 108 85 18 15 0 0 0 0 126 100

Segment liabilities

including non-interest-bearing provisions4), 5) 1,523 1,372 3,291 3,318 1,080 1,092 133,861 127,968 1,560 801 141,315 134,551

Segment investments 122 94 2,321 613 114 162 173 77 –20 –9 2,710 937

Depreciation, amortization and write-downs 186 192 355 373 79 74 134 133 27 28 781 800

Other non-cash expenses 37 35 96 55 6 45 62 124 168 91 369 350

Employees6) 137,617 133,019 122,823 124,469 30,728 31,684 35,583 33,975 10,668 10,237 337,419 333,384

1)Prior-period amounts restated: restructuring of EXPRESS and LOGISTICS Corporate Divisions

2)Prior-period amounts restated: reallocation of retail outlet operations from Other/Consolidation to the FINANCIAL SERVICES Corporate Division

3)Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs

4)Segment assets, investments in associates and segment liabilities are reported as of the balance sheet dates December 31, 2002 and June 30, 2003; the remaining items are reported for the periods ended June 30, 2002 and June 30, 2003

5)Prior-period amounts restated: segment liabilities include non-interest-bearing provisions as from fiscal year 2003 6)Number of employees calculated as averages for fiscal years 2002 and 2003 (FTEs)

Segments by region for H1

in €m Germany Europe excluding Americas Asia/Pacific Other Group

Germany regions H1 H1 H1 H1 H1 H1 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 External revenue 11,627 11,420 4,941 4,973 1,609 1,739 980 873 194 190 19,351 19,195 Segment assets1) 136,421 132,273 14,311 13,085 5,518 5,685 897 775 313 384 157,460 152,202 Segment investments 430 187 1,461 401 537 239 242 36 40 74 2,710 937

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The Corporate Divisions

Segments by Corporate Division for Q2

in €m MAIL EXPRESS1) LOGISTICS1) FINANCIAL Other/ Group

SERVICES2) Consolidation2) Q2 Q2 Q2 Q2 Q2 Q2 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 External revenue 2,462 2,353 3,777 3,840 1,377 1,344 1,992 1,850 40 35 9,648 9,422 Internal revenue 350 330 67 77 0 33 230 232 –647 –672 0 0 Total revenue 2,812 2,683 3,844 3,917 1,377 1,377 2,222 2,082 –607 –637 9,648 9,422

Profit or loss from operating activities

before goodwill amortization (EBITA) 4683) 349 653) 87 39 36 1403) 114 –453) –68 6673) 518

Goodwill amortization 0 1 33 45 24 22 0 0 0 0 57 68

Profit or loss from operating activities

after goodwill amortization (EBIT) 4683) 348 323) 42 15 14 1403) 114 –453) –68 6103) 450

Net income from associates 0 0 –5 –22 2 0 0 0 –4 0 –7 –22

Segment investments 78 37 232 296 36 43 142 40 –30 –1 458 415

Depreciation, amortization and write-downs 95 97 176 189 39 37 69 67 15 14 394 404

Other non-cash expenses –1 –15 65 31 1 26 18 76 101 41 184 159

1)Prior-period amounts restated: restructuring of EXPRESS and LOGISTICS Corporate Divisions

2)Prior-period amounts restated: reallocation of retail outlet operations from Other/Consolidation to the FINANCIAL SERVICES Corporate Division

3)Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs

Segments by region for Q2

in €m Germany Europe excluding Americas Asia/Pacific Other Group

Germany regions

Q2 Q2 Q2 Q2 Q2 Q2

2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003

External revenue 5,742 5,657 2,524 2,341 774 876 563 424 45 124 9,648 9,422

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The Corporate Divisions

As already reported, Deutsche Post was forced to lower the prices for its most important mail products at the begin-ning of the year. Our customers therefore shifted their demand from December to January where possible. As such, we were able to keep revenue in the MAIL Corporate Division on a similar level to the prior year in the first few months of fiscal year 2003. However, this positive development was put into perspective in H1/2003: revenuefell by 2.0% to €5,700 mil-lion (previous year: €5,817 milmil-lion).

In the Mail CommunicationBusiness Division, the price cuts ordered by the regulatory authority caused a drop in revenue of €108 million to €3,463 million (previous year: €3,571 million) in the period under review. One encouraging development was the fact that we were able to stabilize sales of business customer letters at the prior-year level, despite the continued economic slump.

The direct advertising trend continues among our cus-tomers. Although the advertising market continued to be characterized by weakness on the whole, revenue in the Direct MarketingBusiness Division not only remained at the prior-year level, but increased slightly to €1,019 million (previous year: €1,009 million). Revenue growth in the area of higher-priced addressed mailings largely offset the planned reduc-tion in Postwurfsendungen(unaddressed advertising mail) volumes.

The economic downturn in the German press industry continued unrelentingly in the first half of 2003: once again, the circulation and scope of titles fell, and in some cases titles were discontinued completely. Revenue in our Press Distri-butionBusiness Division fell accordingly by 4.3% to €399 mil-lion (previous year: €417 milmil-lion) in the period under review.

MAIL Corporate Division

MAIL

H1 H1 Change Q2 Q2 Change

2002 2003 in % 2002 2003 in %

Total revenue in €m 5,817 5,700 –2.0 2,812 2,683 –4.6

Profit from operating activities

before goodwill amortization (EBITA) in €m 1,2461) 1,106 –11.2 4681) 349 –25.4

Return on sales2) in % 21.4 19.4 16.6 13.0

1)Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 2)EBITA/revenue

Mail Communication (Deutsche Post AG share)

mail items (millions) H1 H1 Change Q2 Q2 Change

2002 2003 in % 2002 2003 in %

Business customer letters 3,905 3,910 0.1 1,887 1,809 –4.1

Revenue by Business Division

in €m H1 H1 Change Q2 Q2 Change 2002 2003 in % 2002 2003 in % Mail Communication 3,571 3,463 –3.0 1,723 1,604 –6.9 Direct Marketing 1,009 1,019 1.0 483 474 –1.9 Press Distribution 417 399 –4.3 207 200 –3.4 Solutions International 97 98 1.0 49 53 8.2

Foreign Domestic International 0 43 0 22

Internal revenue 723 678 –6.2 350 330 –5.7

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The Corporate Divisions

EXPRESS Corporate Division

EXPRESS

H11) H1 Change Q21) Q2 Change

2002 2003 in % 2002 2003 in %

Total revenue in €m 7,648 7,852 2.7 3,844 3,917 1.9

Profit from operating activities

before goodwill amortization (EBITA) in €m 1082) 168 55.6 652) 87 33.8

Return on sales3) in % 1.4 2.1 1.7 2.2

1)Prior-period amounts restated: restructuring of EXPRESS and LOGISTICS Corporate Divisions

2)Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 3)EBITA/revenue

Direct Marketing (Deutsche Post AG share)

mail items (millions) H1 H1 Change Q2 Q2 Change

2002 2003 in % 2002 2003 in %

Infopost/Infobrief (addressed advertising mail) 2,661 2,635 –1.0 1,303 1,256 –3.6

Postwurfsendung/Postwurf Spezial

(unaddressed/partly addressed advertising mail) 1,927 1,735 –10.0 843 781 –7.4

Total 4,588 4,370 –4.8 2,146 2,037 –5.1

The Foreign Domestic InternationalBusiness Division, which we are reporting for the first time in fiscal year 2003, contributed €43 million to revenue in H1. The figures contain the revenues generated by our national mail business in the Netherlands and the UK.

We have consolidated our national and international activities in the area of value added services in our second newSolutions InternationalBusiness Division. The opera-tional units of this Business Division include PrintCom, as well as subsidiaries that were previously allocated to the national Business Divisions, including Deutsche Post In Haus Service GmbH and Merkur Systemhaus für Dialog-Kommunikation GmbH. This Business Division generated revenue of €98 million in the first half of 2003 (previous year: €97 million).

The profit from operating activities (EBITA)in the MAIL Corporate Division fell by €140 million to €1,106 mil-lion. We had expected this development in the traditionally weaker second quarter, and had taken it into account in the lower margin forecast for the year as a whole. It is mainly the result of one-time other operating income recorded in 2002 on the one hand, and the price cuts mentioned above on the other. We were able to partly compensate the latter. At 19.4%, the return on saleswas therefore below the prior-year level of 21.4%.

(15)

The Corporate Divisions

The increase in profit from operating activities (EBITA),which rose by 55.6% to €168 million (previous year: €108 million), was again driven by the Europe region in par-ticular. The return on saleswas 2.1% in H1, compared with 1.4% in the previous year.

The Europeregion generated revenue growth of 4.4% to €5,654 million (previous year: €5,415 million). In terms of operating activities, we increased revenues in what has always been a high-revenue region, in particular in Germany, with retail outlet customer products and “Europack National”; business on the Iberian peninsula also developed positively once again. Further growth came as a result of the first-time full consolidation of the Spanish company Guipuzcoana on October 1, 2002 and the Italian parcel company Casa di Spedizioni Ascoli S.p.A. on February 1, 2003.

Negative exchange rate effects in the USA and Latin America eroded the strong operating growth of the Americas

region, which was achieved by selling higher-priced products in the USA, and also due to the positive effects from the acquisition of Loomis in Canada, which we consolidated fully for the first time on February 1, 2003. Revenue fell overall by 6.0% year-on-year to €812 million (previous year: €864 million).

The Asia Pacificregion was also hit by negative ex-change rate effects which eroded the positive business develop-ments in China and Southeast Asia in particular. Overall, revenues fell by 1.6% in H1/2003 to €547 million (previous year: €556 million).

The Emerging Markets (EMA)recorded growth in revenue of 11.4% in H1 to total €283 million (previous year: €254 million). This means that the positive trend that emerged in the first few months of the year has actually accelerated. In the second quarter, this development was also helped by economic recovery in the Middle East following the end of the war in Iraq.

Revenue in the Global MailBusiness Division in H1/ 2003 was hit by the currency effects mentioned above and the drop in shipment volumes in the USA, and fell 6.3% to €625 million (previous year: €667 million).

Revenue in EXPRESS Corporate Division

in €m H1 H1 Change Q2 Q2 Change

2002 2003 in % 2002 2003 in %

Europe 5,415 5,654 4.4 2,703 2,797 3.5

Americas 864 812 –6.0 429 419 –2.3

Asia Pacific 556 547 –1.6 305 288 –5.6

Emerging Markets (EMA) 254 283 11.4 132 151 14.4

Global Mail 667 625 –6.3 318 294 –7.5

Reconciliation –108 –69 –36.1 –43 –32 –25.6

(16)

The Corporate Divisions

The LOGISTICS Corporate Division also has a new reporting structure: the former Eurocargo Business Unit was transferred to the EXPRESS Corporate Division at the start of the fiscal year. The prior-year figures were adjusted accord-ingly. Our air and ocean freight activities are now reported under the name “Danzas Air & Ocean”.

In H1/2003, revenueincreased by 1.4% to €2,771 mil-lion (previous year: €2,733 milmil-lion). This growth is entirely attributable to the first quarter. In the second quarter, both of the Business Divisions were able to maintain the level of the prior-year period.

Revenue in the SolutionsBusiness Division rose by 2.4% year-on-year to total €797 million (previous year: €778

mil-lion). We benefited from positive development with our cus-tomers in the electronics/telecommunications sector in par-ticular. However, revenues for Q2 fell in the key automotive and fast moving consumer goods (FMCG) sectors, which are highly cyclical. This eroded the increases recorded at the beginning of the year.

In the Danzas Air & OceanBusiness Division, we grew further operationally as a result of the rise in the air and ocean freight volumes handled. However, revenues in H1 grew by only 1.2% to €1,979 million (previous year: €1,955 million). The strong hike in the value of the euro produced substantial negative currency effects totaling €–201 million.

LOGISTICS Corporate Division

LOGISTICS

H11) H1 Change Q21) Q2 Change

2002 2003 in % 2002 2003 in %

Total revenue in €m 2,733 2,771 1.4 1,377 1,377 0.0

Profit from operating activities

before goodwill amortization (EBITA) in €m 67 77 14.9 39 36 –7.7

Return on sales2) in % 2.5 2.8 2.8 2.6

1)Prior-period amounts restated: restructuring of EXPRESS and LOGISTICS Corporate Divisions 2)EBITA/revenue

Revenue by Business Division

in €m H1 H1 Change Q2 Q2 Change

2002 2003 in % 2002 2003 in %

Solutions 778 797 2.4 378 378 0.0

Danzas Air & Ocean 1,955 1,979 1.2 999 1,004 0.5

Reconciliation –5 –5

Total 2,733 2,771 1.4 1,377 1,377 0.0

At €77 million, profit from operating activities (EBITA)

was up 14.9% on the prior-year amount (€67 million), as a result of the operating growth recorded in the Solutions

Business Division. Correspondingly, the return on sales

improved by 0.3% year-on-year to 2.8%.

Solutions: revenue by sector

in €m H1 H1 Change Q2 Q2 Change

2002 2003 in % 2002 2003 in %

(17)

The Corporate Divisions

FINANCIAL SERVICES Corporate Division

FINANCIAL SERVICES

H11) H1 Change Q21) Q2 Change

2002 2003 in % 2002 2003 in %

Income in €m 4,442 4,161 –6.3 2,222 2,082 –6.3

Profit from operating activities (EBITA) in €m 2762) 232 –15.9 1402) 114 –18.6

Cost/income ratio in % 83.3 76.8 84.8 76.7

Return on equity (RoE) before taxes in % 8.2 10.8 8.0 10.9

Tier 1 ratio3) in % 6.9 6.9 6.9 6.9

1)Prior-period amounts restated: reallocation of retail outlet operations from Other/Consolidation to the FINANCIAL SERVICES Corporate Division 2)Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs 3)Reported as of the respective balance sheet date

Information on Postbank

Dec. 31, June 30, Change March 31, June 30, Change

2002 2003 in % 2003 2003 in %

Private checking accounts in thousands 3,939 4,037 2.5 3,989 4,037 1.2

Corporate checking accounts in thousands 374 376 0.5 375 376 0.3

Average demand deposits in €m 14,153 14,692 3.8 14,539 14,692 1.1

Savings volume in €m 35,683 36,950 3.6 36,853 36,950 0.3

The FINANCIAL SERVICES Corporate Division com-prises Postbank, the Pension Service and the retail outlet net-work. In H1/2003, its incomefell by 6.3% to €4,161 million (previous year: €4,442 million). The main reason for this was the drop in interest income as a result of lower interest rates. The income development of the retail outlet network is on the same level as in the previous year, in line with projections.

In H1/2002, the Corporate Division’s profit from oper-ating activities (EBITA)contained income from the reversal of negative goodwill at Postbank in the amount of €107 mil-lion; this practice was discontinued for the first time in 2003. As a result, EBITA fell year-on-year by 15.9% to €232 million (previous year: €276 million) in H1/2003. However, excluding the income from the reversal of negative goodwill, EBITA rose by €63 million or 37.3%. This positive development was helped along by the significant increase in earnings at Postbank.

Income from banking transactions(net interest income, net fee and commission income, net trading income and net income from investment securities) improved by €141 million or 13.0% in the period under review. The largest proportion of this increase was attributable to net interest income, which rose by €50 million, due to the fact that inter-est expenses recorded a sharper fall than interinter-est income.

Net fee and commission income, net trading incomeand

Postbank’s other expenses, which consist of the allowance for losses on loans and advances, staff costs and other non-staff operating expenses, and net other income and expenses, rose by 9.6% year-on-year in H1/2003. This increase also contains a higher loan loss allowance as a result of the increased credit volume.

The cost/income ratioimproved as against H1/2002 by 6.5 percentage points to 76.8% as a result of the appreciable rise in income from banking transactions.

Postbank’s return on equity (RoE)before taxes rose from 8.2% in H1/2002 to 10.8%. This ratio serves as a measure of the return on capital employed.

The critical banking tier 1 ratio(in accordance with the German Banking Act) remained unchanged at the end of H1/2003 at 6.9%.

(18)

Income Statement

Income Statement

For the period January 1 to June 30

in €m Deutsche Post Deutsche Post Deutsche Post Deutsche Post

World Net World Net World Net World Net

H1 H1 Q2 Q2

2002 2003 2002 2003

Revenue and income from banking transactions 19,351 19,195 9,648 9,422

Other operating income 922 474 465 252

Total operating income 20,273 19,669 10,113 9,674

Materials expense and expenses from banking transactions –8,903 –8,599 –4,499 –4,281

Staff costs –6,557 * –6,561 –3,273 * –3,300

Depreciation and amortization expense excluding goodwill amortization –662 –664 –337 –336

Other operating expenses –2,578 * –2,376 –1,337 * –1,239

Total operating expenses excluding goodwill amortization –18,700 –18,200 –9,446 –9,156

Profit from operating activities before goodwill amortization (EBITA) 1,573 1,469 667 518

Goodwill amortization –119 –136 –57 –68

Profit from operating activities (EBIT) 1,454 1,333 610 450

Net income from associates 1 –22 –7 –22

Net other finance costs –302 * –360 –148 * –205

Net finance costs –301 –382 –155 –227

Profit from ordinary activities 1,153 951 455 223

Income tax expense –121 –285 160 –67

Net profit for the period 1,032 666 615 156

Minority interest –27 –16 –22 –6

Extraordinary expense –850 0 –850 0

Consolidated net profit for the period 155 650 –257 150

Basic and diluted earnings per share 0.14 0.58 –0.23 0.13

Basic and diluted earnings per share before extraordinary expense 0.90 0.58 0.53 0.13 * Prior-period amounts restated: reclassification of interest cost on provisions for pensions and other interest-bearing provisions from EBITA to net finance costs

(19)

Balance Sheet

Balance Sheet

As of June 30, 2003

in €m Deutsche Post Deutsche Post

World Net World Net Dec. 31, 2002 June 30, 2003

ASSETS Noncurrent assets

Intangible assets 5,076 5,095

Property, plant and equipment 9,085 8,837

Noncurrent financial assets

Investments in associates 126 100

Other noncurrent financial assets 249 672

375 772

14,536 14,704

Current assets

Inventories 214 231

Receivables and other assets 5,972 * 6,033

Receivables and other securities from financial services 137,641 132,304

Current financial instruments 3 3

Cash and cash equivalents 2,835 * 2,118

146,665 140,689

Deferred tax assets 1,446 1,121

162,647 156,514

EQUITY AND LIABILITIES Equity

Issued capital 1,113 1,113

Reserves 3,323 3,520

Consolidated net profit 659 650

5,095 5,283

Minority interest 117 127

Provisions

Provisions for pensions and other employee benefits 6,292 6,321

Tax provisions 1,510 1,469 Other provisions 4,882 4,960 12,684 12,750 Liabilities Financial liabilities 3,816 3,958 Trade payables 2,707 2,439

Liabilities from financial services 132,851 126,966

Other liabilities 5,377 4,991

144,751 138,354 162,647 156,514 *Item restated due to reclassification of cash equivalents from receivables and other assets to cash and cash equivalents

(20)

Cash Flow Statement

Cash Flow Statement

For the period January 1 to June 30

in €m Deutsche Post Deutsche Post

World Net World Net June 30, 2002 June 30, 2003

Net profit before taxes and extraordinary expense 1,153 951

Extraordinary expense –850 0

Net profit before taxes 303 951

Net interest income 285 * 365

Depreciation and amortization expense 803 799

Gains/losses on disposal of noncurrent assets –130 –24

Non-cash income and expense –212 –310

Provisions –194 * –173

Taxes paid –36 –29

Net profit before changes in working capital 819 1,579

Changes in working capital

Inventories –17 –17

Receivables and other assets –497 30

Receivables/liabilities from financial services 128 24

Liabilities and other items 1,359 –808

Net cash from operating activities 1,792 808

Proceeds from disposal of noncurrent assets

Divestitures 0 0

Other noncurrent assets 217 134

217 134

Cash paid to acquire noncurrent assets

Acquisition of companies –49 –224

Other noncurrent assets –727 –983

–776 –1,207

Net cash used in investing activities –559 –1,073

Proceeds from issue of financial liabilities 587 513

Repayment of financial liabilities –1,026 –409

Dividends and other payments to owners –412 –445

Interest paid –96 –140

Interest and dividends received 58 25

Current financial instruments 1 0

Net cash used in financing activities –888 –456

(21)

Statement of Changes in Equity

Statement of Changes in Equity

For the period January 1 to June 30

in €m Issued Reserves Consolidated Total

capital Capital Retained IAS 39 net profit equity

reserves earnings reserves

Balance at January 1, 2002 1,113 344 2,413 –94 1,577 5,353

Capital transactions with owner

Capital contribution from retained earnings

Dividend –412 –412

Other changes in equity not recognized in income

Currency translation differences –97 –97

Other changes 12 18 –438 –408

Changes in equity recognized in income

Appropriation to retained earnings 1,165 –1,165 0

Consolidated net profit 659 659

Balance at December 31, 2002/January 1, 2003 1,113 356 3,499 –532 659 5,095

Capital transactions with owner

Capital contribution from retained earnings

Dividend –445 –445

Other changes in equity not recognized in income

Currency translation differences –162 –162

Other changes –3 148 145

Changes in equity recognized in income

Appropriation to retained earnings 214 –214 0

Consolidated net profit 650 650

(22)

Notes

1. Basis of accounting

The consolidated interim financial report of Deutsche Post AG as of June 30, 2003 was prepared in accordance with the International Accounting Standards/International Finan-cial Reporting Standards (IASs/IFRSs) adopted and published by the International Accounting Standards Board (IASB), and with the interpretations issued by the Standing Interpretations Committee (SIC, now: International Financial Reporting Interpretations Committee – IFRIC), required to be applied as of the reporting date.

The accounting and measurement policies, as well as the explanations and disclosures, are generally based on the same accounting policies used in the 2002 consolidated financial statements.

Since the beginning of 2003, the interest cost on dis-counted provisions in accordance with IAS 19 is disclosed

under net other finance costs. For H1/2003, this resulted in a €293 million increase in net finance costs. This primarily relates to the Group’s interest cost on discounted provisions for pensions. The prior-period amount was adjusted corre-spondingly (€244 million).

In addition, please note that the segment reporting is oriented on our new Group structure. The Eurocargo Busi-ness Unit, which was included in the LOGISTICS Corporate Division until December 31, 2002, was integrated into the EXPRESS Corporate Division. The prior-period amounts were adjusted correspondingly.

For further information on the accounting policies applied, please refer to the consolidated financial statements for the period ended December 31, 2002, on which this interim report is based.

2. Consolidated group

In addition to Deutsche Post AG as the parent company, the consolidated group includes the following companies:

Notes to the Deutsche Post AG

Interim Report as of June 30, 2003

Consolidated group

Dec. 31, March 31, June 30,

2002 2003 2003

Number of fully consolidated companies

German 109 109 111

Foreign 539 538 537

Number of proportionately consolidated companies

German 2 2 2

Foreign 27 27 27

Number of companies accounted for at equity

German 5 6 5

(23)

Notes

3. Stock options

The number of stock options on shares of Deutsche Post AG granted to executives in Group management levels 1 and 2 changed as follows as against December 31, 2002:

Tranche 3 will be issued on August 1, 2003.

Details of the share-based payment system for execu-tives can be found in the Notes to the Consolidated Finan-cial Statements for the period ended December 31, 2002 in our 2002 Annual Report.

Deutsche Post AG does not hold any treasury shares as of June 30, 2003.

Stock options

Tranche 1 Tranche 2

Outstanding stock options at beginning of year 5,173,140 10,306,038

Outstanding SARs at beginning of year 336,876 446,934

Options granted 0 0 SARs granted 0 0 Options exercised 0 0 SARs exercised 0 0 Options lapsed 609,948 1,828,968 SARs lapsed 72,942 92,718

Outstanding stock options as of June 30, 2003 4,563,192 8,477,070

Outstanding SARs as of June 30, 2003 263,934 354,216

4. Changes in the structure of the cash flow statement

Slight changes were made to the structure of the cash flow statement as of Q1/2003. This primarily relates to the reclassification of interest payments as net cash used in financing activities, and taxes paid and provisions as net profit before changes in working capital. The prior-period figures were adjusted accordingly.

(24)

Income Statement (Postbank at Equity)

Income Statement (Postbank at Equity)

For the period January 1 to June 30

in €m Deutsche Post Deutsche Post Deutsche Post Deutsche Post

World Net World Net World Net World Net

H1 H1 Q2 Q2

2002 2003 2002 2003

Revenue 15,843 15,928 7,881 7,794

Other operating income 787 457 399 247

Total operating income 16,630 16,385 8,280 8,041

Materials expense –6,117 –6,156 –3,083 –3,092

Staff costs –6,241 * –6,255 –3,114 * –3,150

Depreciation and amortization expense excluding goodwill amortization –604 –610 –306 –308

Other operating expenses –2,347 * –2,121 –1,241 * –1,099

Total operating expenses excluding goodwill amortization –15,309 –15,142 –7,744 –7,649

Profit from operating activities before goodwill amortization (EBITA) 1,321 1,243 536 392

Goodwill amortization –120 –136 –59 –68

Profit from operating activities (EBIT) 1,201 1,107 477 324

Net income from associates 5 –22 –3 –22

Net income from measurement of Deutsche Postbank group at equity 202 132 102 73

Net other finance costs –315 * –348 –150 * –193

Net finance costs –108 –238 –51 –142

Profit from ordinary activities 1,093 869 426 182

Income tax expense –60 –204 190 –26

Net profit for the period 1,033 665 616 156

Minority interest –28 –15 –23 –6

Extraordinary expense –850 0 –850 0

Consolidated net profit for the period 155 650 –257 150

(25)

Balance Sheet (Postbank at Equity)

Balance Sheet (Postbank at Equity)

As of June 30, 2003

in €m Deutsche Post Deutsche Post

World Net World Net Dec. 31, 2002 June 30, 2003

ASSETS Noncurrent assets

Intangible assets 4,937 4,949

Property, plant and equipment 8,108 7,871

Noncurrent financial assets

Investments in associates 126 100

Investments in Deutsche Postbank group 4,405 4,581

Other noncurrent financial assets 197 623

4,728 5,304

17,773 18,124

Current assets

Inventories 211 231

Receivables and other assets 5,736 * 5,596

Receivables and other securities from financial services 0 0

Current financial instruments 3 3

Cash and cash equivalents 2,022 * 1,410

7,972 7,240

Deferred tax assets 862 641

26,607 26,005

EQUITY AND LIABILITIES Equity

Issued capital 1,113 1,113

Reserves 3,323 3,520

Consolidated net profit 659 650

5,095 5,283

Minority interest 103 113

Provisions

Provisions for pensions and other employee benefits 5,729 5,759

Tax provisions 772 728 Other provisions 4,529 4,606 11,030 11,093 Liabilities Financial liabilities 3,816 3,958 Trade payables 2,629 2,269

Liabilities from financial services 0 0

Other liabilities 3,934 3,289

10,379 9,516 26,607 26,005 *Item restated due to reclassification of cash equivalents from receivables and other assets to cash and cash equivalents

(26)

Cash Flow Statement (Postbank at Equity)

Cash Flow Statement (Postbank at Equity)

For the period January 1 to June 30

in €m Deutsche Post Deutsche Post

World Net World Net June 30, 2002 June 30, 2003

Net profit before taxes and extraordinary expense 1,093 869

Extraordinary expense –850 0

Net profit before taxes 243 869

Net interest income 285 * 348

Depreciation and amortization expense 741 745

Gains/losses on disposal of noncurrent assets –130 –24

Non-cash income and expense 36 81

Net income from measurement at equity –204 –132

Provisions –177 * –185

Taxes paid –28 –25

Net profit before changes in working capital 766 1,677

Changes in working capital

Inventories –17 –19

Receivables and other assets –345 258

Liabilities and other items 1,023 –1,147

Net cash from operating activities 1,427 769

Proceeds from disposal of noncurrent assets

Divestitures 0 0

Other noncurrent assets 183 123

183 123

Cash paid to acquire noncurrent assets

Acquisition of companies –49 –220

Other noncurrent assets –578 –931

–627 –1,151

Net cash used in investing activities –444 –1,028

Proceeds from issue of financial liabilities 631 513

Repayment of financial liabilities –1,026 –409

Dividends and other payments to owners –412 –445

Interest paid –96 –140

Interest and dividends received 58 25

Postbank dividend 137 99

(27)

This interim report contains certain statements that are neither reported financial results nor other historical information. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking

(28)

Published by: Deutsche Post AG Headquarters

Corporate Department Investor Relations 53250 Bonn

Germany

Responsible for content: Martin Ziegenbalg Coordination/Editors: Kathrin Engeländer, Beatrice Scharrenberg Investor Relations: Fax: +49 (0) 2 28/1 82-6 32 99 E-mail: ir@deutschepost.de Press Office: Fax: +49 (0) 2 28/1 82- 98 80 E-mail: pressestelle@deutschepost.de Deutsche Post World Net online: www.dpwn.de

For information on Deutsche Post stock please e-mail ir@deutschepost.de English translation by:

Deutsche Post Foreign Language Service et al. This interim report is also published in German.

July 2003

Mat. No. 675-200-136 All information is subject to correction and may be changed at short notice

August 22, 2003 Capital Markets Day1)for analysts and institutional investors November 7, 2003 Analyst conference call1)on the first nine months of 2003

March 31, 2004 Financials press conference and analyst conference1)on the 2003 fiscal year Publication of the 2003 Annual Report

May 6, 2004 Annual General Meeting2)

1)Live Internet broadcaston our homepage at http://investorrelations.dpwn.de

2) Live Internet broadcast of the speech by the Chairman of the Board of Management at http://investorrelations.dpwn.de

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