Chief Financial Officer (CFO) / Board of Management Member, Finance, DHL Group (Deutsche Post AG, renaming to DHL AG)
CFO des Jahres 2021: Das Preisträgerinterview mit Melanie Kreis
Nach Stationen bei McKinsey und dem Private-Equity-Investor Apax kam Melanie Kreis zur Deutschen Post, wo Sie zunächst ...
Transcript (19 segments)
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Interviewer0:08
Welcome to Finanz TV. Our guest today has settled a wage dispute, earned the title 'Queen of Cash', and recently also completed a billion-euro transaction. And most importantly, our guest today is Woman of the Year 2021. With me is Melanie Kreis from Deutsche Post DHL. Congratulations, nice to have you here.
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Melanie Kreis0:27
Yes, thank you very much, I'm delighted to be here.
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Interviewer0:30
Ms. Kreis, at the start of your career you first chose a different path and were initially at McKinsey, then worked for the private equity investor Apax. Those are very different work environments. How big was the culture shock then of going to a large corporation like Deutsche Post?
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Melanie Kreis0:49
Yes, that was naturally quite a cultural change. I am a physicist by training. It was a big step for me to go to McKinsey first, then private equity was something else entirely. Then I moved to a large German company. At the private equity firm, everything was settled quickly in a small circle. Suddenly I had to understand the corporation's structures and decision-making paths. It was a big change, but I also saw that large companies can be very dynamic.
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Interviewer1:25
You then also had a very dynamic situation after joining the board in 2014. You were initially responsible for personnel as labor director. There was a wage conflict in 2015 that escalated into strikes. It was all quite muddled, but you solved it. What was the most important factor in unraveling it?
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Melanie Kreis1:52
There were two factors. First, we were deeply convinced that we had to make a fundamental shift to ensure the company's future viability and job security. That's why we fought hard. Second, at the end you have to be able to build bridges and find a compromise the other side can live with. You can't always get 100% of what you want. So it was the combination of having a clear goal and being willing to compromise to reach the finish line together.
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Interviewer2:27
So that worked out well. You mentioned earlier that you are a physicist by background. That was in demand at Deutsche Post early on. You were involved in integrating Exel and selling Postbank. Then there was a long quiet period, but this year you acquired Hillebrand, a sea freight specialist, for 1.5 billion euros. Why return to large-scale deals now?
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Melanie Kreis2:58
Yes, about 20 years ago we shaped the group as it is today. 25 years ago we were a purely German company. Then we made large acquisitions: DHL, Exel. We felt the basic structure was in place and it was about operational performance. Now all five divisions are on a great trajectory, so we looked at inorganic growth, but only in our core business with high-quality assets at reasonable prices. For a long time there weren't many opportunities, so we are very glad to have acquired Hillebrand.
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Interviewer3:58
A big advantage: you didn't need to think long about financing. In the first half you had 3.8 billion euros in liquidity, and during Corona you raised another 2.25 billion via bonds. In retrospect, was that perhaps a bit too much?
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Melanie Kreis4:18
We knew when we issued them in May 2020 that we probably wouldn't need the full amount. There was a conservative safety buffer. But hindsight is always 20/20. We discussed it with our supervisory board and agreed it was the right decision at that time.
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Interviewer4:47
You expect a record result in 2021, raising the forecast to 7.7 billion euros, about ten percent above expectations. You have also strongly focused on profitability. It's said that cash flows come up in every finance meeting. Is that true?
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Melanie Kreis5:08
People probably can't hear it anymore, but we have clear priorities. With over 570,000 employees, you have to send consistent messages. My mantra is 'cash is king', and it has really reached everywhere. When I do a business review in Indonesia and they tell me the same priorities, I know the message has spread.
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Interviewer5:54
So a lot of cash is needed for upcoming strategic investments: 2 billion euros for digital transformation and 7 billion for climate protection by 2030. Where do you see your specific contribution as CFO to these megatrends?
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Melanie Kreis6:12
Digitalization projects are conventional for finance: we see good returns on investment. For sustainability, we announced a target of 7 billion euros, and it was important to give the capital market a number. We committed to reducing absolute CO2 emissions by 2030. It's a learning process for finance to break down those 7 billion into OpEx and CapEx for next year.
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Interviewer7:25
You mentioned you studied physics and then got an MBA. That makes you a bit of an outsider among the business and economics graduates. Are there specific ways of thinking from physics that help you in finance?
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Melanie Kreis7:46
Physics is an excellent foundation. It taught me to break down complex problems and develop a feel for numbers. Those are things that still help me a lot today.
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Interviewer8:17
I'd like to ask you our three questions to close. Please give brief answers. Question 1: Are the current record numbers a special Corona boom or can you sustain them? Question 2: What gives you more pleasure: HR director or CFO? CFO. Question 3: If you could name one achievement you are particularly proud of, what would it be?
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Melanie Kreis8:45
The timing of the sale of Postbank.
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Interviewer8:48
Super, thank you very much for your insights. On behalf of the entire finanz.tv editorial team, congratulations on the award. Let yourself be celebrated. That was finanz.tv. Thank you for watching. Take care.