Dhl Freight Denmark A/S

Data protection Operating risks The high inflation experienced at the latter part of the year, had to some degree a negative impact on the activity level and consequently on out financial result. Changing industry and consumer patterns (eg. near sourcing) leading to lower global trade volumes could have a negative impact on our business too. DHL Freight will continue to focus on strong positioning within global imports and exports. Foreign exchange risks DHL Freight invoices its main sales in DKK, whereas parts of direct costs are denominated in EUR. DHL Freight is only modestly exposed to exchange risks in relation to EUR as regards to day-to-day operations as the DKK currency rate is tied to the EUR rate and only allows for minor fluctuations. Interest rate risks Due to its ownership, DHL Freight has limited exposure to interest level changes. Credit risks DHL Freight has no material risks relating to individual customers or business partners. According to section 99d (3) of the Danish Financial Statements Act, DHL Freight strives to handle data as responsibly and safely as possible. The Company is subject to rules and policies laid down by the Parent Company, which, among others, decides on the IT systems to be applied. As a consequence, the Company has not made a separate policy in respect to data ethics. For a description of the Group’s data protection policy, please refer to the Annual Report of Deutsche Post DHL The report can be found on: https://www.dpdhl.com/content/dam/dpdhl/en/media-center/investors/documents/presentations/2022/DPDHL-2022-ESG-Presentation.pdf

The income statement of the Company for 2022 shows a loss of DKK 12.6 million, and at 31 December 2022 the balance sheet of the Company stood at DKK 273 million with equity of DKK 28 million. Revenue for the year of DKK 1.124 million is considered satisfactory. Denmark decided, as one of the very few EU countries, to implement parts of the EU Mobility Package during 2021, which resulted in significantly increased haulier costs. DHL Freight decided initially not to pass these cost increases onto its customers, which resulted in a significant loss. Management considers the improvement in net results to be satisfactory. DHL Freight has had a strategic and targeted approach to staff qualifications, and in line with the 2025 strategy the global Certified Freight Specialist program (CFS) continued also in 2022. DHL Freight has embedded customer centricity into the heart of its business strategy with extra emphasis on open and effective customer feedback channels feeding into the organisation. DHL Freight is dedicated to deliver high-value products to customers through dedicated employees and customer-experience focus. Main focus in 2022 was to deliver excellent services to the customers and at the same time invest in employee development and satisfaction. As for other logistics providers, digitalisation is a high priority for DHL. The development of advanced digital tools to support and improve customer satisfaction, employee satisfaction and operational efficiency are important measures to grow the business. DHL Freight recognises this and will allocate resources to this area in the years ahead and to support this, a new Transport Management System will be implemented in 2023. To support the initiatives to lower CO2 emission, DHL Freight has defined actions in Strategy 2025. Mutual development was initiated with the hauliers to increase the use of LNG and furthermore explore the use of intermodal solutions whenever possible.