• Throughthis approximately EUR 700 million deal, DPDHL Group and S.F. Holding entera 10-year strategic partnership to grow supply chain operations in China

• DPDHLGroup's supply chain China business to beincorporated into S.F. Holding, and operate as a co-branded organization

SHANGHAI, CHINA - Media OutReach -October 26, 2018 - Deutsche Post DHL Group ("DPDHL Group"), theworld's leading mail and logistics company, has entered into a landmark dealthat will transfer its supply chain operations in China to S.F. Holding("S.F."), a leading premium logistics service provider in thecountry. 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 activitiesin international express, freight transport and e-commerce logistics solutionsin 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 willreceive an upfront payment of RMB 5.5 billion (approximately EUR 700 million) anda revenue-based partnership fee over the next ten years. S.F. will have accessto DPDHL Group's best-in-class supply chain services, management expertise, transportation and warehousingtechnology. The co-branded organizationwill operate under theleadership 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 toparticipate in the fast-growingChinese supply chain market, leveraging S.F.'s extensive domesticinfrastructure, distribution network and broad base of local customers. This willaccelerate the expansion of the co-branded organization's customer base. DPDHLGroup is committed to enhancing the organization's product and services offeringby providing the breadth of its global supply chain expertise.

"The jointcapabilities of DPDHL Group and S.F. will create a unique platform to meet theneed 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 acrossall industries including technology, healthcare, retail, automotive and e-commerce.Combined with our global operations standards and network support, theagreement provides a solid foundation to continue exploring further opportunitiesin China in the coming years," said Frank Appel, CEO Deutsche Post DHL Group.

"S.F. has been activelyexpanding its business-to-business (B2B) capabilities and pursuing differentstrategic partnerships to grow S.F. into a truly integrated logistics solutionsprovider that delivers best-in-class services for our clients. This partnership agreement will strengthen our capability in providing supply chain servicesto a diverse realm of industries and allow us to bring world-class management expertiseinto 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 helpus achieve our vision to grow further internationally, partnering with DPDHLGroup, a world class organization."

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Deutsche Post DHL Group is the world's leading mail and logisticscompany. The Group connects people and markets and is an enabler of globaltrade. It aspires to be the first choice for customers, employees and investorsworldwide. The Group contributes to the world through responsible businesspractices, corporate citizenship and environmental activities. By the year2050, Deutsche Post DHL Group aims to achieve zero emissions logistics.

DeutschePost DHL Group is home to two strong brands: Deutsche Post is Europe's leadingpostal service provider. DHL offers a comprehensive range of internationalexpress, freight transport, and supply chain management services, as well ase-commerce logistics solutions. Deutsche Post DHL Group employs approximately520,000 people in over 220 countries and territories worldwide. The Groupgenerated revenues of more than 60 billion Euros in 2017.

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S.F.Holding is a leading integrated logistics serviceprovider in China, providing its customers with integrated logistics servicesfrom transportation to warehousing management, from sales forecasting and dataanalytics to settlement and cash management, as well as supply chain managementservices. S.F. is also a smart logistics operator with network scaleadvantages. Building upon years of operations and of constructing its strategicframework, S.F. has formed an integrated three-pronged logistics servicenetwork that integrates its aviation network, ground network, and informationnetwork to cover both domestic and overseas customers.