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Deutsche Post bets on emerging markets

Deustche Post boosting e-commerce, EM

The chief executive of Deutsche Post DHL, the world's biggest postal and logistics group by revenue, has told CNBC that he wants 30 percent of their revenue to be from emerging markets by 2020.

CEO Frank Appel was speaking after the courier company revealed its new medium-term financial targets, where it forecast that annual operating profit would increase by an average of over 8 percent annually until 2020. That growth will mainly be driven by its DHL logistics business.

Deutsche Post plans to expand into emerging markets, Appel told CNBC. "We have a target that our portion of revenue which is currently at 22 will go up to 30 percent by 2020 so that's a massive undertaking, and will increase significantly our footprint in these markets."

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He added that the group also aimed to build its activities in the e-commerce world in emerging markets, stating, "We have a great success in parts of Europe, in particular in Germany, with expanding our e-commerce activities beyond the delivery. We have our own portals, we are doing interesting new forms of delivery. And we want to establish these kind of things on platforms we have already, like in India."

Shares in Deutsche Post were higher by nearly 1 percent Wednesday and briefly hit an all-time high of 29.42 euros.

The company's shares helped toprop up European markets on Wednesday, with investors waiting to see whether the European Central Bank would offer more stimulus on Thursday. However, Appel said that stimulus was not the answer.

"I think we should now really focus on how we continue to make the European countries more competitive. I think everything on the financial sector has been done and from the ECB. I think it's really that the reforms for the labor markets in Europe continue and (we) make Europe more competitive," Appel said.

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Appel emphasized that Europe was showing the first signs of a recovery and that European governments must stick to strong austerity programs and reducing budget deficits. He said it would still take some time for Europe to regain its full competitiveness, "but we are on the right path."

Regarding the situation in Ukraine, Appel said that Deutsche Post had not seen any impact to its business and he remained positive.

"I'm optimistic that Russia and the Western world will come to the right steps going forward without having massive sanctions from both sides. I believe that this is the right approach...Globalisation has been a big peacemaker in the last decade," he said.

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