Annual Report • Mar 24, 2010
Annual Report
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I
Deutsche Post DHL is the world's leading mail and logistics services group. The Deutsche Post and dhl corporate brands offer a one-of-a-kind portfolio of logistics (dhl) and communications (Deutsche Post) services. The Group provides its customers with both easy to use standardised products as well as innovative and tailored solutions ranging from dialogue marketing to industrial supply chains. About 500,000 employees in more than 220 countries and territories form a global network focused on service, quality and sustainability. With programmes in the areas of climate protection, disaster relief and education, the Group is committed to social responsibility.
The Postal Service for Germany. The Logistics Company for the World.
dp-dhl.com
| 01 Selected key fi gures (continuing operations) | |||||||
|---|---|---|---|---|---|---|---|
| 2008 adjusted |
2009 | + / – % | Q 4 2008 adjusted |
Q 4 2009 | + / – % | ||
| Profi t from operating activities (ebit) before non-recurring items |
€ m | 2,011 | 1,473 | –26.8 | 639 | 526 | –17.7 |
| Non-recurring items | € m | 2,977 | 1,242 | –58.3 | 3,463 | 662 | –80.9 |
| ebit | € m | –966 | 231 | 123.9 | –2,824 | –136 | 95.2 |
| Revenue | € m | 54,474 | 46,201 | –15.2 | 14,020 | 12,389 | –11.6 |
| Return on sales1) | % | –1.8 | 0.5 | –20.1 | –1.1 | ||
| Consolidated net profi t / loss2) | € m | –1,688 | 644 | 138.2 | –3,181 | –283 | 91.1 |
| Operating cash fl ow | € m | 3,362 | 1,244 | –63.0 | 1,441 | 974 | –32.4 |
| Net debt / net liquidity3) | € m | 2,4664) | –1,690 | 168.5 | – | – | – |
| Return on equity before taxes | % | –9.0 | 3.0 | – | – | ||
| Earnings per share5) | € | –1.40 | 0.53 | 137.9 | –2.64 | –0.24 | 90.9 |
| Dividend per share | € | 0.60 | 0.606) | – | – | – | – |
| Number of employees7) | 456,716 | 436,651 | –4.4 | – | – | – |
1) ebit / revenue. 2) Excluding minorities, including Postbank. 3) For the calculation please refer to page 44 of the Group Management Report. 4) Postbank at equity. 5) Including Postbank. 6) Proposal. 7) Average fte.
| Corporate Center | ||||||
|---|---|---|---|---|---|---|
| Board department | Chairman of the Board of Management |
Finance, Global Business Services | Personnel | |||
| Board member | Dr Frank Appel | Lawrence Rosen | Walter Scheurle | |||
| Functions | Corporate Offi ce | Corporate Controlling | hr Standards Germany | |||
| Corporate Legal | Corporate Accounting and Reporting | hr Guidelines Personnel and | ||||
| Corporate Executives | Investor Relations | Labour Management | ||||
| Corporate Communications | Corporate Finance | hr mail | ||||
| Corporate Development | Corporate Internal Audit / Security | |||||
| Corporate Regulation Management | Taxes | |||||
| Corporate First Choice | Global Business Services | |||||
| Public Policy and Corporate Responsibility |
(Group-wide services: Procurement, Real Estate, Finance Operations etc.) |
|||||
| Global Customer Solutions (gcs) | ||||||
| hr dhl International | ||||||
| dhl Solutions & Innovations (dsi) | ||||||
| express | global forwarding, freight |
supply chain | ||||
| Jürgen Gerdes | Ken Allen | Hermann Ude | Bruce Edwards | |||
| Deutsche Post | dhl | dhl | dhl | dhl | ||
| Global Mail | Europe | Global Forwarding | Supply Chain | |||
| Mail Communication |
Parcel Germany | Americas | Freight | Williams Lea | ||
| Dialogue Marketing |
Asia Pacifi c | |||||
| Press Services | eemea (Eastern Europe, the Middle East, Africa) |
|||||
| Divisions Board department Board member Brand Business units / regions |
Retail Outlets |
| 2009 Goals | 2009 Results | 2010 Goals |
|---|---|---|
| ebit before non-recurring items | ebit before non-recurring items | ebit before non-recurring items |
| • Group: minimum € 1.35 billion. | • Group: € 1.47 billion. | • Group: € 1.6 billion to € 1.9 billion. |
| • division: € 1.0 billion to € 1.2 billion. |
||
| • dhl divisions: € 1.0 billion to € 1.1 billion. |
||
| • Corporate Center / Other: approximately € – 0.4 billion. |
||
| Consolidated net profi t | Consolidated net profi t | Consolidated net profi t |
| • Generate a net profi t excluding minorities. | • Net profi t excluding minorities: € 644 million. |
• Improve net profi t in line with operating business. |
| Capital expenditure (capex) | Capital expenditure (capex) | Capital expenditure (capex) |
| • Reduce investments from € 1.7 billion (2008) to no more than € 1.2 billion. |
• Invested: € 1.17 billion. | • Approximately € 1.4 billion. |
| Costs | Costs | |
| • Lower indirect costs by € 1 billion | • Achieved indirect costs savings in 2009: | |
| by the end of 2009. | € 1.1 billion. | |
| Restructuring | Restructuring | |
| • Reduce annualised loss in the us express business to no more than us \$ 400 million. |
• Annualised loss in the us express business in the fourth quarter of 2009 in line with target. |
|
We restructured our express business and consolidated our fi nancial position with the proceeds from the sale of Postbank. We saved more than € 1.1 billion in indirect costs with our IndEx programme. Although transported volumes were signifi cantly down on the prior-year level, we were also able to cushion the decrease in ebit before non-recurring items, and at € 1.47 billion we even slightly exceeded our forecast, which we had increased to at least € 1.35 billion during the course of the year.
Provided that there is a moderate recovery in trade volumes, we expect consolidated ebit before non-recurring items to reach € 1.6 billion to € 1.9 billion in 2010. Both pillars of our business – Deutsche Post and dhl – should contribute nearly equally to these results. We will increase our investments cautiously to approximately € 1.4 billion and use them for organic growth. Although our liquidity position will decline due to restructuring expenditure, it will remain strong. Consolidated net profit is expected to continue to improve in line with our operating business.
GROUP MANAGEMENT REPORT 13 CORPORATE GOVERNANCE 99 B A
CONSOLIDATED FINANCIAL STATEMENTS 123 FURTHER INFORMATION 221 C D
The Group I Group Structure II Target-performance comparison III Review / Preview 1 Special: Showing Respect. Delivering Results. 3 Letter to our Shareholders 6
CONTENTS
| B |
|---|
A
| Report of the Supervisory Board | 101 |
|---|---|
| Supervisory Board | 105 |
| Board of Management | 106 |
| Mandates held by the Board of Management | 108 |
| Mandates held by the Supervisory Board | 109 |
| Corporate Governance Report | 110 |
| CONSOLIDATED FINANCIAL STATEMENTS | |
|---|---|
| 125 126 127 128 |
|
| 129 130 131 |
|
| Income Statement Statement of Comprehensive Income Balance Sheet Cash Flow Statement Statement of Changes in Equity Segment Reporting Notes to the Consolidated Financial Statements of Deutsche Post ag |
| FURTHER INFORMATION | 221 | |
|---|---|---|
| Index | 223 | |
| D | Glossary | 224 |
| Graphs and Tables | 225 | |
| Contacts | 226 | |
| Multi-year review | IV | |
| Events | VI | |
Living Responsibility embodies our commitment to treat people and the environment with respect. On the following pages of this annual report, we provide an overview of how we are expressing this commitment and why we are convinced of it:
| LIVING RESPONSIBILITY | 13 |
|---|---|
| LIVING RESPONSIBILITY – GoGreen | 99 |
| LIVING RESPONSIBILITY – GoHelp | 123 |
| LIVING RESPONSIBILITY – GoTeach | 221 |
Strategically positioned for the future, Deutsche Post DHL is built upon two strong pillars: an integrated international logistics business and a solid mail business with new electronic value added services. Our aim is to remain Die Post für Deutschland (The Postal Service for Germany) and to become The Logistics Company for the World.
Clear structures, increased co-operation and mobility within the Group, and respect for the values and needs of our customers, our employees and our environment are helping us to unlock our potential: to realise fi rst-class integrated global solutions, to gain and retain customers, employees and shareholders for the long term by delivering results, to increase organic growth and to drive a successful and sustainable business.
The special addition to the Annual Report 2009 – come and discover the world behind the fi gures.
The special addition to the 2009 Annual Report
Deutsche Post DHL's goal is clear. We intend to win over our customers again and again every day all over the world, and we will do this by living our convictions: making transparent off ers that simplify people's lives; providing easy access to transport services for letters, parcels, goods and informa tion – the things that bind the world together; and managing integrated ser vices and solutions that provide sustainable benefi ts and help to protect the world's resources. Our workforce – some 500,000 strong in more than 220 countries and territories – live these convictions and are the heart of our many ideas, innovative products and new technologies. By respecting people, the environment and our society, we are delivering results for everyone.
Worldwide On the following pages we would like to show you just how we live our convictions, by illustrating just what we do for a variety of industries – how we meet the needs of up to one million customers every hour and how we made our company fi t for
the future. All our actions are directed towards one goal: to remain "The Postal Service for Germany" and to become "The Logistics Company for the World". Respect for people's needs is our guiding principle for delivering results that can benefi t everyone.
| 2 | |
|---|---|
| Contract logistics for the automotive industry | 4 |
| 6 | |
| Evolution of a secure means of communication Meeting the most complex transport requirements |
8 |
| First-class international express parcel and document shipping | 10 |
| Sustainability – a key measure of success |
SHOWING RESPECT FOR THOSE WHO NEED TO RESPOND FASTER TO CHANGING MARKETS.
CONTRACT LOGISTICS FOR THE AUTOMOTIVE INDUSTRY
Companies in the automotive industry are under ever increasing pressure to remain competitive at the international level. Th e keys to making this happen are the effi ciency, quality and speed of the supply chain – components need to be manufactured, transported and delivered on time to production facilities. DHL's sustainable supply chain solutions provide these keys. We work closely with our customers in the automotive industry to develop fl exible solutions that are tailored precisely to their needs. Customers in turn benefi t from our effi ciency controls, continuous process improvement and competent project management, which guarantees them high standards of service as well as the ability to respond rapidly to changing market conditions to keep them at the cutting edge.
Our customers receive reliable supply chain solutions that reduce costs, time and complexity, allowing them to concentrate on their core businesses. Deutsche Post DHL makes use of its industry expertise and solid customer relationships to deliver integrated, customised services in a global growth market.
1. CUTTING THROUGH THE COMPLEXITY A door panel with 85 components can have up to 5,000 possible combinations in production so it is absolutely critical to get the right components to the production line at the right time.
An assembly line can easily go down because components are missing. This simply cannot be allowed to happen – because every lost minute can cost tens of thousands of euros.
3. UTILISING OUR GLOBAL REACH As a contract logistics provider dhl operates in more than 60 countries and has the necessary contract logistics experience and expertise in all of them.
EVOLUTION OF A SECURE MEANS OF COMMUNICATION
Deutsche Post's innovative letter on the internet takes our quality service online. For the fi rst time, both business and private customers can access a fast means of communication with all the advantages of the traditional letter – accountability, confi dentiality and relia bility – pre serving the inviolability of the mail. Th e communication is binding and even pro tec tion against spam is guaranteed. Customers can also have the letter on the internet printed out and delivered through the conventional mail service. Th ere are still many people who would rather have a real letter in their hands and not everyone has access to the internet.
Our customers receive an innovative product that now meets the needs of business and private customers. Deutsche Post DHL is positioning itself at the cutting edge of a growth market – breaking new ground in the world of online communication with innovative products.
SHOWING RESPECT FOR THOSE WHO WANT TO MAKE BIG MOVES AROUND THE WORLD.
MEETING THE MOST COMPLEX TRANSPORT REQUIREMENTS
Transporting a 200-tonne, 25-metre long spectrometer from one place to the next through narrow city streets and bridges is no easy task. For DHL, meeting even the most complex transport requirements is something we do every day. We off er customised logistics solutions around the world for the combined transport of goods by air, land and sea. As a freight forwarder, we broker between customers and freight companies and combine orders so as to reach a volume that allows us to secure cargo space and charter capacity from airlines, shipping companies and freight carriers at competitive prices. DHL taps its own wealth of experience, comprehensive industry expertise, diversifi ed networks and strong local connections to deliver these services.
Our customers receive a global network solution that gets their freight – regardless of what it is – to its destination using the most appropriate means. Deutsche Post DHL delivers specialised logistics solutions for the most complex transport requirements – a market most of our competitors fi nd extremely diffi cult to enter.
1. MINIMISING LOST TIME
When time is of the essence, aircraft are employed to move goods around the globe – a job made for dhl. We are, after all, the world market leader in air freight.
2. BUNDLING KNOW-HOW International teams solve the most complex transport problems – by land, sea and air.
3. FINDING A WAY
Sometimes the only realistic way is not the shortest one. The only way to ship a spectrometer, for instance, may be a 9,000-kilometre special transport even though the destination is only a 300-kilometre fl ight away.
FIRST-CLASS INTERNATIONAL EXPRESS PARCEL AND DOCUMENT SHIPPING
1. EXPEDITING PICKUP Monday evening in Dubai: a dhl courier picks up express documents and immediately gets them on their way to Stockholm. 2. 24 / 7 TRANSPARENCY Tuesday night: the shipment arrives at dhl's European hub in Leipzig. Track & Trace keeps the customer informed of their item's status.
One of the most advanced sorting facilities in Europe forwards the item to the aeroplane to Stockholm, where it arrives on time for delivery before 9 am on Wednesday.
DHL is the world leader in express shipments. Th anks to the nearly 100,000 specialists and employees who drive our worldwide network with the help of fi rst-class infrastructure, interna tional air hubs and state-of-the-art vehicles and aircraft , parcels are not only shipped fast but also with exceptional reliability. Whether direct, day defi nite or time defi nite, this guarantees our customers uniquely eff ective express services.
Our customers receive express delivery services that are easy to use, convenient, fast and reliable across cultural and national borders. Deutsche Post DHL focuses on customer needs to sustain its leadership position in the international express business.
SUSTAINABILITY – A KEY MEASURE OF SUCCESS
Our European hub in Leipzig is a prime example of sustainability and economic effi ciency working hand in hand. Deutsche Post DHL uses renewable energy produced with state-of-theart solar units and cogeneration systems to increase energy effi ciency in its facilities. We also collect rainwater in underground cisterns and use it, for example, to wash the aircraft . We look at CO2 emissions as well as service quality to ensure that goods and documents reach their destinations fast and reliably, but also with the lowest possible carbon footprint.
The environment benefi ts from our climate protection targets aimed at improving our carbon effi ciency by 30 % over 2007 levels by the year 2020. Deutsche Post DHL understands that customers and investors are becoming more and more interested in companies that are sustainable and that openly accept their corporate responsibility.
1. INCREASING INDEPENDENCE The environmentally friendly energy generated at our hub in Leipzig using combined heat and power and photovoltaic systems covers a large proportion of the facility's energy requirements.
3. INCREASING OUR COMPETITIVE EDGE Major orders are increasingly going to companies that demonstrate sustainable practices. Carbon neutral shipping – part of our GoGreen climate protection programme – gives us a real competitive edge.
Since we operate all over the world, we bear a special responsibility to use our knowledge and experience for the betterment of society and to limit any negative impact our business may have on the environment. Living Responsibility embodies our eff orts in the areas of environmental protection, disaster relief and education. We bundle many initiatives in our GoGreen, GoHelp and GoTeach programmes, which are underpinned by the dedication, skills and enthusiasm of our some 500,000-strong workforce. We want to help shape our future and make the world of tomorrow a better place to live in.
More information is available at www.dp-dhl.com/en/responsibility.html
We are the fi rst globally operating company in our industry to have set a measurable climate protection target. By 2020, we want to improve our carbon effi ciency by 30 % over 2007 levels.
Through effi cient transport, optimised planning and the use of alternative energy sources and innovative technologies, we intend to reach our interim goal of a 10 % improvement in our carbon effi ciency by 2012.
We want to help improve the living conditions of people. Our GoHelp initiative is intended to do just that. In co-operation with strong partners such as the United Nations, we provide logistics support that makes a differ ence in the aftermath of natural disasters and we organise training programmes in disaster-prone regions to help the people there prepare for emergencies.
After the catastrophic earthquake in Haiti, our global network of disaster response teams was quickly on the ground at the region's airports, where we were able to provide rapid and effective assistance, receive incoming aid, temporarily store it and quickly ready it for further transport.
GoTeach embodies our efforts to improve education – the foundation that society needs in order to move forward. We promote and breathe life into initiatives that help people advance themselves and broaden their skills.
We have made a commitment to helping young people – both whilst they are still in school and during their transition into professional life. For example, we are the founding partner of Teach First Deutschland. We have also introduced the job-market entrance qualifi cation programme for young people who are unable to fi nd a vocational training position and we support the international business@school competition.
Deutsche Post ag Headquarters 53250 Bonn Germany
Tel.: +49 (0) 228 182- 6 36 36 Fax: +49 (0) 228 182- 6 31 99 e-mail: [email protected]
www.deutschepost.com
www.dhl.com www.dhl-brandworld.com
Deutsche Post ag Headquarters 53250 Bonn Germany www.dp-dhl.com
Dr Frank Appel, Chief Executive Offi cer
1 March 2010 Financial year 2009
1 March 2010 Financial year 2009
2009 was without a doubt a tough year for your company. Th e global economic crisis has not left Deutsche Post DHL unscathed. Yet we have performed exceptionally well given these circumstances and have shown how strong our organisation is.
Consolidated revenue fell year-on-year, primarily because transport volumes in all divisions were signifi cantly down on prior-year levels. Th e fact that we were able to maximise cost savings helped us cope with these circumstances. Our IndEx programme resulted in indirect cost savings of over € 1.1 billion in 2009 – even more and faster than we anticipated.
Our successful cost management allowed us to cushion the decrease in EBIT before non-recurring items and at € 1.47 billion even exceed the forecast, which we increased during the course of the year. I fi nd this result quite remarkable in the middle of a economic crisis and considering that our business was also impacted by several extraordinary eff ects. Instead of a consolidated loss, as we recorded in 2008, we generated a profi t of € 644 million in 2009.
We restructured our express business and reduced or eliminated the sources of our losses there. Th e restructuring process in the United States was a success. In the fourth quarter, we achieved our goal of reducing the annualised loss there as planned.
I would like to express my sincere thanks to our approximately 500,000 employees for their enormous eff ort in these extremely challenging times. And I thank you, our shareholders, for your trust in me and my colleagues on the Board of Management. Aft er a diffi cult year, we wish to reward your confi dence with a stable dividend of € 0.60 per share.
We used the crisis as a catalyst to become more effi cient and more eff ective. In our mail business, for instance, we have tested procedures for enabling us to respond to fl uctuating volumes more fl exibly without sacrifi cing quality. In air and ocean freight, we have secured our capacities on the most important trade lanes between Asia and Europe. Furthermore, our contract logistics business won a renowned customer in British Airways in one of our key strategic industry sectors.
1 /2
Deutsche Post DHL The Mail & Logistics Group PO box address Deutsche Post AG Headquarters 53250 Bonn GERMANY
Delivery address Deutsche Post AG Headquarters Charles-de-Gaulle-Str. 20 53113 Bonn GERMANY
Visitor's address Deutsche Post AG Headquarters Platz der Deutschen Post Bonn
Phone +49 228 182-9000 Fax +49 228 182-7060
www.dp-dhl.com
We have largely taken care of legacy issues – and we have done our homework. We have also strengthened our fi nancial stability with the proceeds from the sale of Postbank. All in all I see we have successfully navigated the crisis and achieved the goals we set for ourselves in 2009.
Moreover, we launched Strategy 2015 and with it laid the foundation for future growth. Th is strategy has already become part of how we do business. Two examples illustrate this: fi rst, Deutsche Post will introduce its letter on the internet to the market this summer, an innovation that integrates the physical letter – with all of its features such as reliability and confi dentiality – into the world of electronic communication. Second, DHL now has its own team to pull together all the ideas from DHL's divisions and look for ways our customers can benefi t from them. As the industry leader, we understand the trends and know what our future depends on: off ering our customers innovative and sustainable products that simplify their lives.
Th e global economic crisis is not yet our wake, but the signs that the worst is over are steadily increasing. Global trade has been on a recovery course since the second half of 2009, with the trend actually increasing slightly in the fi rst two months of the new year. For us this means that we will move ahead as planned this year and sustainably improve the Group's profi tability through innovative products, high service levels and customer-orientated solutions.
Our new fi nancial strategy is based on reliability and stability. Th is also applies to future payouts. We will increase our investments cautiously to €1.4 billion and use them for organic growth in both pillars of our Group. Earnings are likely to increase this year. We expect full-year consolidated EBIT before non-recurring items to reach € 1.6 billion to € 1.9 billion in 2010. For the fi rst time both pillars of our business will contribute nearly equally to these results – an indication of the strength of our two-pillar strategy.
We want to remain Die Post für Deutschland (Th e Postal Service for Germany) and become Th e Logistics Company for the World. We are setting the bar high and our guiding principle, Respect and Results, refl ects this. We will only achieve the results we need to be successful in the long term if we treat our shareholders, customers and employees as well as society and the environment with respect. Of that I am entirely convinced.
Yours faithfully,
Since we operate all over the world, we bear a special responsibility to use our knowledge and experience for the betterment of society and to limit any negative impact our business may have on the environment. Living Responsibility embodies our efforts in the areas of environmental protection, disaster relief and education. We bundle many initiatives in our GoGreen, GoHelp and GoTeach programmes, which are underpinned by the dedication, skills and enthusiasm of our some 500,000 strong workforce. We want to help shape our future and make the world of tomorrow a better place to live in.
More information is available at www.dp-dhl.com / en / responsibility.html
| Business activities and organisation | 15 | |
|---|---|---|
| 15 | Disclosures required by takeover law | 17 |
| Remuneration of the Board of Management | ||
| and the Supervisory Board | 20 | |
| Economic parameters | 20 | |
| Corporate strategy | 25 | |
| Group management | 27 | |
| CAPITAL MARKET | 28 | |
|---|---|---|
| 28 | Deutsche Post shares Roadmap to Value |
28 31 |
| EARNINGS, FINANCIAL POSITION AND ASSETS AND LIABILITIES |
32 | |
|---|---|---|
| 32 | The Group's economic position Signifi cant events Earnings Financial position Assets and liabilities |
32 32 33 35 42 |
| DIVISIONS | 45 | |
|---|---|---|
| 45 | Overview |
45 46 |
| express | 53 | |
| global forwarding, freight | 61 | |
| supply chain | 66 |
| NON-FINANCIAL PERFORMANCE INDICATORS | 71 | |
|---|---|---|
| 71 | Employees Corporate responsibility Procurement Research and development Brands |
71 76 79 81 81 |
| RISKS | 83 | |
| 83 | Opportunity and risk management Risk categories and specifi c risks Overall assessment of the Group's risk position |
83 85 91 |
| FURTHER DEVELOPMENTS AND OUTLOOK | 92 | |
| 92 | Report on post-balance sheet date events Report on expected developments |
92 92 |
Opportunities 97
Deutsche Post DHL maintains a global network that off ers our customers everything they need for transporting and processing goods and information, from standard products to customised solutions. We place great value on service, quality and sustainability, and we accept our social responsibility through our programmes for climate protection, disaster relief and education.
Our MAIL division is the only provider of universal postal services in Germany. We deliver mail and parcels throughout Germany and internationally, and we are specialists in dialogue marketing, nationwide press distribution services and electronic services.
Our EXPRESS division off ers courier and express services to business and private customers, taking advantage of a network comprising more than 220 countries and territories.
Our GLOBAL FORWARDING, FREIGHT division handles the carriage of goods by rail, road, air and sea. We are the world's number one air and ocean freight operator and one of the leading overland freight forwarders in Europe.
Our SUPPLY CHAIN division is the global market leader in contract logistics, providing warehousing, managed transport and value-added services at every link in the supply chain for customers in a variety of industries. We also off er end-to-end solutions for companies which outsource document management.
In Global Business Services, we have centralised the internal services which support the entire Group, for example Finance Services, IT and Procurement. Th is allows us to make effi cient use of our resources whilst reacting fl exibly to the rapidly changing demands of our business.
Th e Group is organised into four operating divisions, each of which operates under the control of its own divisional headquarters. Each division is subdivided into business units for reporting purposes. Th e Group management functions are performed by the Corporate Center.
| express | global forwarding, freight |
supply chain | |
|---|---|---|---|
| • Mail Communication • Dialogue Marketing • Press Services • Parcel Germany • Retail Outlets • Global Mail • Pension Service |
Europe• Americas• • Asia Pacifi c • eemea (Eastern Europe, the Middle East and Africa) |
• Global Forwarding Freight• |
• Supply Chain • Williams Lea |
Glossary, page 224
As part of our new strategy, we changed the name of the Group to Deutsche Post DHL in the fi rst quarter of 2009, refl ecting the two pillars upon which we have based our goal, which is to remain Die Post für Deutschland (Th e Postal Service for Germany) and to become Th e Logistics Company for the World. We thus build new transparency, clear structures and integrated customer solutions.
In this context we also revamped our brand architecture, changing the name of the SUPPLY CHAIN / CORPORATE INFORMATION SOLUTIONS division to the SUPPLY CHAIN division, which houses the Supply Chain and Williams Lea business units.
Furthermore, we established a new business department, dhl Solutions & Inno vations, and assigned responsibility for human resources to the respective pillars, Deutsche Post and DHL.
| Corporate governance structure |
Management responsibility |
Legal structure | Brand names |
|---|---|---|---|
| According to corporate governance duties and responsibilities (boards and committees) • Corporate Center • Corporate Divisions • Global Business Services |
According to decision making responsibility and reporting lines • Board departments • Corporate departments • Business departments • Service departments Regions• • Departments |
Based on the Group's legal entities • Deutsche Post ag • Group companies |
According to the brand names used in customer communication • Deutsche Post • dhl |
On 26 February 2009, Ken Allen replaced John Mullen as the head of the EXPRESS division.
Eff ective 1 September 2009, responsibility for Finance, Global Business Services was assumed by Lawrence Rosen, who succeeded John Allan aft er he left on 30 June 2009. Frank Appel acted as interim head of the board department during the transitional period.
As announced, we withdrew from the domestic US express business at the start of 2009 and streamlined our regional organisational structure accordingly. Our US organisation for the GLOBAL FORWARDING, FREIGHT division was likewise restructured, with North America and Latin America being merged into the Americas region.
As part of the restructuring of the EXPRESS division, in the fourth quarter of 2009 we announced our intention to relocate our central functions for the Europe region from Brussels to Bonn, Leipzig and Prague in order to house them with the region's other functions. Th is will permit us to use our resources more eff ectively and to work together more closely. Th e relocation will not aff ect the national organisation in Belgium or operations at the Brussels hub or the gateways.
In the MAIL division, we reorganised our sales organisation in the fourth quarter, allowing us to simplify processes and structures, reduce costs, and respond to customer needs with greater fl exibility.
16
Glossary, page 224
Disclosures required under Sections 289 (4) and 315 (4) of the Handelsgesetzbuch (HGB – German commercial code) and explanatory report.
As at 31 December 2009, the company's share capital totalled €1,209,015,874 and was composed of the same number of no-par value registered shares. Each share carries the same statutory rights and obligations and entitles the holder to one vote at the Annual General Meeting (AGM). No individual shareholder or group of shareholders is entitled to special rights, particularly rights granting powers of control.
Th e exercise of voting rights and the transfer of shares are based on the general legal requirements and the company's Articles of Association, which do not restrict either of these activities. Article 19 of the Articles of Association sets out the requirements that must be met in order to attend the AGM as a shareholder and exercise a voting right. Only persons entered in the share register shall be considered by the company to be shareholders. Th e Board of Management is not aware of any agreements between shareholders which would limit voting rights or the transfer of shares.
KfW Bankengruppe (KfW), Frankfurt am Main, are our largest shareholder, holding around 30.5 % of the share capital. Th e Federal Republic of Germany holds an indirect stake in Deutsche Post AG via KfW. According to the notifi cations we have received pursuant to Sections 21 ff . of the Wertpapierhandelsgesetz (WpHG – German securities trading act), KfW and the German government are the only shareholders who own more than 10 % of the share capital, either directly or indirectly.
Th e members of the Board of Management are appointed and replaced in accordance with the relevant legal provisions (Sections 84 and 85 of the Aktiengesetz (AktG – German stock corporation act), Section 31 of the Mitbestimmungsgesetz (MitbestG – German co-determination act)). In accordance with Section 84 of the AktG and Section 31 of the MitbestG, appointments by the Supervisory Board shall be for a maximum term of fi ve years. Re-appointment or extension of the term of offi ce, for a maximum of fi ve years in each case, is permitted. Article 6 of the Articles of Association stipulates that the Board of Management must have at least two members. Beyond that, the number of Board members is determined by the Supervisory Board, which may also appoint a chairman and deputy chairman of the Board of Management. Details of changes on the Board of Management during the year under review are reported in Business activities and organisation.
In accordance with Section 119 (1), Number 5 and Section 179 (1), Sentence 1 of the AktG, amendments to the Articles of Association are adopted by resolution of the AGM. In accordance with Article 21 (2) of the Articles of Association in conjunction with Sections 179 (2) and 133 of the AktG, such amendments generally require a simple majority of the votes cast and a simple majority of the share capital represented. In such instances where a greater majority is required by law for amendments to the Articles of Association, that majority is decisive.
Under Article 14 (7) of the Articles of Association, the Supervisory Board has the authority to resolve amendments to the Articles of Association in cases where the amendments aff ect only the wording. In addition, the AGM resolutions passed on 8 May 2007 (Contingent Capital III) and 21 April 2009 (Authorised Capital 2009) authorised the Supervisory Board to amend the wording of the Articles of Association to refl ect the respective share issue or the use of authorised capital as well as following the expiry of the respective authorisation period.
Th e Board of Management is authorised, subject to the approval of the Supervisory Board, to issue up to 240 million new, no-par value registered shares by or before 20 April 2014 in exchange for cash and / or non-cash contributions and thereby increase the company's share capital by up to € 240 million (Authorised Capital 2009, Article 5 (2) of the Articles of Association). To date, the Board of Management has not made use of this authorisation.
When new shares are issued from Authorised Capital 2009, the shareholders are entitled in principle to pre-emptive subscription rights. Such rights may only be disapplied subject to the requirements specifi ed in Article 5 (2) of the Articles of Association and subject to the consent of the Supervisory Board. Details may be found in Article 5 (2) of the Articles of Association of the company.
Th e Authorised Capital 2009 is a fi nancing and acquisition instrument in accordance with international standards that allows the company to increase equity quickly, fl exibly and cost-eff ectively. Th e authorised capital is equivalent to less than 20 % of the share capital.
An AGM resolution was passed on 8 May 2007 authorising the Board of Management, subject to the consent of the Supervisory Board, to issue bonds with warrants, convertible bonds and / or income bonds (hereinaft er referred to collectively as "bonds with warrants and / or convertible bonds"), or a combination thereof, in an aggregate principal amount of up to € 1 billion, on one or more occasions, by or before 7 May 2012, thereby granting option and / or conversion rights for new shares in an amount not to exceed € 56 million of the share capital. To this end, the share capital is contingently increased by up to € 56 million (Contingent Capital III, Article 5 (3) of the Articles of Association). When issuing bonds with warrants and / or convertible bonds, shareholder subscription rights may only be disapplied subject to the terms of the aforementioned resolution and pending the consent of the Supervisory Board. Further details may be found in the motion adopted by the AGM under agenda item 7 of the agm of 8 May 2007.
Authorisation to issue bonds with warrants and / or convertible bonds is standard business practice amongst publicly listed companies. It allows the company to fi nance its activities fl exibly and promptly, and gives it the fi nancial leeway to take advantage of favourable market situations at short notice, for example, by off ering company shares or bonds with warrants / convertible bonds as a consideration within the context of company mergers, and when acquiring companies or shareholdings in companies. To date, the Board of Management has not made use of this authorisation.
Finally, the AGM of 21 April 2009 authorised the company to buy back shares up to an amount not to exceed 10 % of the share capital existing as of that date, by or before
19
Business and Environment Disclosures required by takeover law
30 September 2010. Th is authorisation is subject to the proviso that at no time should the shares acquired in this way, together with the shares already held by the company, account for more than 10 % of the share capital. Th e shares may be purchased through the stock market, a public off er, a public call for off ers of sale from the company's shareholders or by some other means in accordance with Section 53 a of the AktG. Th e author isation permits the Board of Management to exercise it for every purpose authorised by law, particularly to redeem the purchased own shares without a further AGM resolution, subject to the consent of the Supervisory Board. Details may be found in the motion adopted by the AGM under agenda item 6 of the agm of 21 April 2009.
To supplement this authorisation, on 21 April 2009 the AGM also authorised the Board of Management – within the scope resolved by the AGM of 21 April 2009 in agenda item 6 – to acquire own shares either by servicing options that, upon their exercise, require the company to acquire own shares (put options) or by exercising options that, upon their exercise, grant the company the right to acquire own shares (call options) and to acquire own shares using a combination of put and call options. All share acquisitions using put options, call options or a combination of the two are limited to a maximum of 5 % of the share capital existing on the date of the resolution. Th e term of the options must expire by no later than 30 September 2010 and be selected such that the acquisition of own shares by exercising the options cannot occur aft er 30 September 2010. Details may be found in the motion adopted by the AGM under agenda item 7 of the AGM of 21 April 2009.
It is standard business practice amongst publicly listed companies in Germany for the AGM to authorise the company to buy back shares. Th e authorisation to repurchase shares using derivatives is merely intended to supplement share buyback as a tool and give the company the opportunity to structure the share repurchase in an optimum manner. On 28 April 2010, the Board of Management and the Supervisory Board will propose to the AGM that both authorisations be granted for a further year.
Any public off er to acquire shares in the company is governed solely by law and the Articles of Association, including the provisions of the Wertpapiererwerbs- und Übernahmegesetz (WpÜG – German securities acquisition and takeover act). Th e AGM has not authorised the Board of Management to undertake actions within its sphere of competence to block possible takeover bids.
If a takeover occurs, Board of Management members Ken Allen, Bruce Edwards, Lawrence Rosen and Hermann Ude are each entitled to resign their offi ce as a member of the Board of Management for good cause within a period of six months following the change in control aft er giving three months' notice to the end of the month and to terminate their Board of Management contracts (right to early termination). In the event of the right to early termination being exercised or a Board of Management contract being terminated by mutual consent under the same conditions, the Board of Management member is entitled to payment to compensate the remaining term of his Board of Management contract. Such payment is limited to the cap pursuant to the recommendation of Number 4.2.3 of the German Corporate Governance Code as amended on 18 June 2009. Th e agreements are outlined in the Remuneration Report.
dp-dhl.com/en/investors.html
Page 115 f.
Page 113 f.
Th e basic features of the remuneration system for the Board of Management and the Supervisory Board are described in the Corporate Governance Report under Remuneration Report. Th e latter also forms part of the Group Management Report.
At the start of 2009, the global economy found itself in its deepest recession in decades. Th e fi nancial market crisis led companies to scale back investment substantially, whilst industrial production dropped more drastically than ever before. International trade suff ered the most, however. To stabilise the economy, many countries launched comprehensive economic incentive programmes. Th ese initiatives took eff ect over the course of the year and the world economy and global trade slowly recovered. Nevertheless, global economic output shrank by 0.8 % in 2009 aft er having seen growth of 3 % in 2008. Th e international exchange of goods actually dropped by just over 12 % (IMF: –12.3 %, OECD: –12.5 %).
| % | Gross domes tic product |
Exports | Domestic demand |
|---|---|---|---|
| usa | −2.4 | −9.9 | −3.4 |
| Japan | −5.1 | −24.2 | −3.2 |
| China | 8.7 | −16.0 | n / a |
| Euro zone | −4.0 | −13.3 | −2.91) |
| Germany | −5.0 | −14.7 | −1.8 |
1) Based on estimates by Postbank Research.
Source: National statistics, as at 19 February 2010.
Th e United States experienced its biggest economic collapse in 60 years. Gross fi xed capital formation fell by 18.4 %, and exports and imports also saw massive declines. Private consumption, the main economic prop in the United States, fell below the prior-year level. Although the economy began recovering in the second half of the year, gross domestic product (GDP) still decreased by 2.4 %.
Asia was also aff ected by the crisis. However, the region recovered much more quickly than others. Th e continent's emerging economies registered growth of 6.5 % in 2009, keeping Asia at the forefront of the world economy, even though growth rates were signifi cantly lower in some cases than in the preceding eight years. Leading the way was China, whose domestic economy received a boost from a massive infrastructure programme. GDP growth therefore fell only moderately to 8.7 % (previous year: 9.6 %) despite the 16 % drop in exports. China's trade surplus decreased signifi cantly from US \$ 298 billion to US \$ 196 billion. Direct investments were at a high level, totalling approximately US \$ 90 billion.
Japan, whose economy is highly export dependent, was hit particularly hard by the collapse in international trade. Exports fell by nearly a quarter and GDP by more than 5 %.
At the start of 2009, the euro zone was also heavily aff ected by the crisis. Exports collapsed and investment dropped dramatically. Unemployment rose sharply, with private consumption falling accordingly. Th anks to government economic stimulus plans, the economy began gaining a foothold in the spring with a slow recovery setting in during the second half of the year. However, this was not nearly suffi cient to off set the collapse at the beginning of the year. As a result, GDP fell by 4.0 % in the reporting year (previous year: + 0.6 %).
At the start of the year, Germany was more heavily aff ected by the collapse in international demand. Exports decreased by 14.7 %, and investments in machinery and equipment dropped a full 20 %. GDP therefore shrank by 5.0 % (previous year: + 1.3 %). Private consumption held at nearly the prior-year level, however, thanks in part to the government's environmental rebate for trading in used cars (Abwrackprämie).
Th e average Brent Crude oil price was US \$ 62 per barrel (159 litres) in 2009, a drop of around 36 % from the prior-year level. In the face of the crisis at the start of the year, the price fell to approximately US \$ 40 per barrel – its lowest level for several years. However, by mid-year oil prices were back up to US\$70 due to OPEC production cuts and improved economic indicators. By year-end the price had reached nearly US\$80 a barrel.
a.04 Brent Crude spot price and euro / us dollar exchange rate, 2009
Central banks reacted to the economic crisis with an expansive monetary policy. Th e US Federal Reserve kept its key interest rate at an extremely low level, 0 % to 0.25 %, throughout the entire year. By May, the European Central Bank had lowered its key interest rate from 2.5 % at the start of the year to 1 %, where it remained until the end of the year. Interest rate policy had no major impact on the performance of the euro against the US dollar, however. At the beginning of 2009, the euro fell sharply against the dollar, dropping from US \$ 1.40 to US\$1.25 as demand for the US currency rose as a result of its reputation as a safe haven. As optimism regarding economic recovery increased, this argument lost force and the euro rose nearly 3 % to US \$ 1.43 by year-end. Measured against pound sterling, however, the euro posted a loss of just over 7 %.
Fear of a sustained economic crisis led to capital market interest rates hitting a low around the end of 2008 / beginning of 2009. Over the course of the year, however, investors became more willing to take risks. Capital market interest rates rose, although they remained at a low level. At the end of the year, 10-year German treasury bonds were yielding 3.39 %, 0.44 percentage points higher than at the end of 2008. In the same period, the return on 10-year US treasury bonds increased by 1.62 percentage points to 3.84 %. Corporate bonds also benefi ted from the economic recovery over the course of the year. Th e risk premiums were in some cases below those seen prior to September 2008 when the fi nancial market crisis escalated.
International trade is closely linked to the global economy, which is why it also took a sharp turn for the worse in 2009. Th e downturn was particularly noticeable in European and American imports. By contrast, the Asia Pacifi c region, which makes up more than two-thirds of all international trade, did not suff er as greatly from the fi nancial crisis.
Global trade volumes fell approximately 7 %. Th ere have been recent indications that trade could see moderate growth in 2010, however. Asia is expected to remain a global growth engine and continue to play a key role in this growth in the future.
| % Imports Exports |
Africa | Asia Pacifi c | Europe | Latin America | Middle East | North America |
|---|---|---|---|---|---|---|
| Africa | 2.1 | 3.2 | −10.9 | −11.5 | −4.2 | −5.7 |
| Asia Pacifi c | 2.0 | −2.1 | −12.6 | −8.7 | −6.2 | −14.6 |
| Europe | 0.2 | −6.5 | −10.8 | −11.9 | −8.9 | −11.0 |
| Latin America | 2.3 | 5.1 | −10.0 | −6.6 | −1.8 | −12.7 |
| Middle East | 3.2 | −6.2 | −10.9 | −11.8 | −5.8 | −6.6 |
| North America | −8.3 | −6.5 | −17.6 | −11.3 | −12.4 | −11.9 |
Source: ihs Global Insight, Global Trade Navigator, as at 15 January 2010.
Page 45 ff.
1) In contrast to the 2008 Annual Report, volumes are presented excluding any effects related to pricing. Source: ihs Global Insight, Global Trade Navigator, as at 15 January 2010.
We are represented in more than 220 countries and territories, including all major economic regions. Th e following is an overview of the overall market as well as of the markets relevant to us. Th e regions shown refl ect our business structure. Th e relevant parameters and our market shares are detailed in the Divisions chapter.
| Global | Europe | usa | Asia |
|---|---|---|---|
| • International mail market (outbound, 2009): € 7 bn1) |
• German mail market (2009): € 6.3 bn1) |
• Domestic mail market (2009): € 43.2 bn7) |
• International express market (2008): € 5.5 bn9) |
| • Air freight (2008): € 19.0 m tonnes2) |
• Dialogue marketing, Germany (2009): € 19.3 bn1) |
• International express market (2008): € 1.6 bn8) |
|
| • Ocean freight (2008): € 31.7 m teu3) |
• International express market (2008): € 14.0 bn5) |
||
| • Contract logistics (2008): € 147 bn4) |
• Road transport (2008): € 169.4 bn6) |
1) Company estimates. 2) Data based solely on export freight tonnes; source: Global Insight, Global Trade Navigator, annual reports, press releases and company estimates. 3) Twenty-foot equivalent units; estimated part of overall market controlled by forwarders; source: Global Insight, Global Trade Navigator, annual reports, press releases and company estimates. 4) Source: Transport Intelligence. These fi gures cannot be compared with those of the previous years because the institute compiling the data and the compiling method have changed. 5) Includes express products Time Defi nite International and Day Defi nite International; country base: at, be, ch, cz, dk, es, fr, ge, it, nl, no, pl, se, uk; source: mrsc. 6) Country base: total for 20 European countries, excluding bulk and specialties transport; source: 2008 and 2009 mrsc market analyses, Eurostat 2008, annual reports, press releases, company websites, estimates and analyst reports. 7) These fi gures cannot be compared with those of the previous years because the compiling method has changed; source: usps product revenue, 2009. 8) Includes express products Time Defi nite International and Day Defi nite International; country base: ca, mx, br, co, ar, ve, pa, cl, pe, bo, uy, py, do, jm; source: mrsc, annual reports from ups, tnt, FedEx, press releases, company websites, estimates and analyst reports. 9) Country base: au, cn, hk, id, in, jp, kr, nz, my, ph, sg, th, tw, vn; source: mrsc study from 2007, annual reports, press releases, company websites, estimates and analyst reports.
23
During the year under review we presented our new corporate strategy – Strategy 2015. To develop this strategy, we re-examined the main factors aff ecting our business. Although the corporate and economic environment has changed radically, we continue to believe that there are four trends that have a substantial impact on our business:
In view of our leading market position, a large number of our services are subject to sector-specifi c regulation under the German postal act. Further information on this issue and legal risk is contained in the Notes to the consolidated fi nancial statements.
Page 25
24
Note 53
Deutsche Post DHL has done an outstanding job asserting itself in the marketplace in recent years. We are the market leader in the German mail business and the world leader in nearly all of our logistics activities, a position that off ers us long-term growth prospects. We have built up a strong global presence, and there is hardly a company in our industry that can match the broad spectrum of products and services we are able to off er our customers. In the past we strengthened our competitive position through acquisitions; for the last three years we have done so primarily through organic growth.
Th e global recession aff ected the entire logistics sector along with many of our customers in 2009. However, we did not remain passive. Our Group took advantage of the past two years to answer key strategic questions.
For our former subsidiary, Deutsche Postbank AG, we found a reliable partner for the future in Deutsche Bank. We will now focus on our core competencies in our mail and logistics businesses.
We restructured our US express business in order to reduce our losses there and mitigate risk for the Group. In this market, we will also be concentrating on our core competencies: shipments to and from the US.
In addition to these two key strategic decisions, we successfully implemented an extensive cost reduction programme, thus laying the foundation for our company to emerge from the current global crisis stronger than before and to achieve sustainable and profi table growth.
Our Strategy 2015 is intended to help us to unlock our full potential. We want to become the preferred supplier for our customers, an attractive investment for our shareholders and a top employer for our staff .
Expressed in fi gures, we are aiming for growth in our operating divisions that exceeds the annual growth of their respective markets by one to two percentage points.
We want to maintain our position as Die Post für Deutschland (Th e Postal Service for Germany). At the same time we intend to become Th e Logistics Company for the World by making use of the global strength of our logistics business.
Our new Group name, Deutsche Post DHL, underscores the signifi cance of these two pillars of our business. Th e Deutsche Post brand stands for a company that sets global standards in quality, technology and effi ciency and has already proven itself able to very successfully meet the challenges inherent in this mature market. In the MAIL division, our goal is to continue operating highly profi tably and to enhance our range of services by adding more communications products.
Th e DHL brand stands for a comprehensive product portfolio and worldwide logistics presence. Our EXPRESS, GLOBAL FORWARDING, FREIGHT, and SUPPLY CHAIN divisions operate in attractive market segments. Our goal is to continue taking advantage of the excellent growth opportunities in the logistics industry and to unlock the full potential of our enterprise.
Th e corporate culture of a company is vital in determining its ability to perform at a high level. Our guiding principle of Respect and Results has evolved from the daily challenge of achieving fi rst-class results whilst adhering to our sense of responsibility for the needs of our employees and customers. We show respect towards our shareholders by making our challenges public and clearly stating how we intend to face them. We are well aware of the eff ect our corporate activities have on society. Th erefore, we also act respectfully towards everyone with whom we interact and the environment in which we live.
Our customer promise is a key component of our corporate strategy. We want to offer our customers services that make their lives easier and that have sustained value. To meet this standard, we have established a number of Group-wide initiatives. Our First Choice programme, for instance, remains of central importance. First Choice means improving our customer focus in all areas and aligning our processes accordingly.
Moreover, to distance ourselves from the competition we want to become or remain the innovative leader in the logistics industry and the market leader in selected sectors. We plan to achieve this with our new DHL Solutions & Innovations (DSI) unit and through Sector Management. DSI pools the innovative activities within DHL with an eye on developing ground-breaking solutions using existing sector expertise. Sector Management is our chosen method of institutionalising the cross-divisional exchange of expertise within DHL. Th is results in new products, services and solutions that are better equipped to meet customer requirements in certain sectors.
As the largest company in our industry, we take our environmental and social responsibility seriously. Our sustainability strategy focuses on three areas. Th e Group's GoGreen programme was developed to establish a systematic approach to achieving our climate protection target. Our GoHelp focus area centres on people in need. Here we apply our expertise towards improving the living conditions of people in disaster areas. Th e third expression of our commitment to society is education. We have created the GoTeach project to defi ne a concept for this endeavour and to establish a corresponding strategy.
Corporate responsibility, page 76
27
In 2008, Deutsche Post DHL introduced a new performance metric, which it uses to assess the degree of target achievement. In the year under review, EBIT aft er asset charge (EAC) was used as an additional key control parameter together with profi t from operating activities (EBIT).
We aim for sustained value growth in all areas of our operating business. To this end, we carefully control not only targeted profi ts but also the use of resources necessary to meet this goal. Executives are now expected to place greater emphasis on the asset charge that their operating business must generate.
To calculate the asset charge, the net asset base is multiplied by the weighted average cost of capital (WACC).
Th e Group's WACC is defi ned as the weighted average net cost of interest-bearing liabilities and equity, taking into account division-specifi c risk factors in a beta factor according to the Capital Asset Pricing Model. Deutsche Post DHL aims to increase enterprise value via effi cient management of the net asset base.
In order to optimise the gearing ratio and thus decrease WACC, two factors must be weighed against each other:
Since 2008, a WACC of 8.5 % has been considered the minimum target level for projects and investments in the Group.
EAC amounted to €–959 million in 2009 (previous year: €–2,484 million). In both fi nancial years 2008 and 2009, profi t from operating activities was depressed by nonrecurring items.
| € m | 2008 | 2009 | + / – % |
|---|---|---|---|
| adjusted | |||
| Reported ebit | –966 | 231 | 123.9 |
| Asset charge | –1,518 | –1,190 | –21.6 |
| eac | –2,484 | –959 | 61.4 |
In terms of EAC, we reduced the asset charge by € 328 million to € 1,190 million across all segments, in part thanks to improved net working capital management.
| = Net asset base | |
|---|---|
| × Weighted average cost of capital |
2009 was a year of extremes on the stock markets. At the start of the year, investors were fl eeing from shares in droves and investing in traditionally conservative investment products. Investor fear pushed the DAX down to an annual low of 3,666 points on 6 March – a loss in value of 23.8 % on the 2008 closing value. Starting in the spring, sentiment on the capital markets gradually began improving. Good news from the business community, especially the banking sector, gave the markets reason to hope. It became apparent that policymakers were going to come to the aid of the fi nancial world as never before. Th e fi rst leading indicators were likewise positive, and the DAX climbed back over the 5,000-point mark. Th e index drift ed back down briefl y in the summer prior to rebounding in mid-July to close the year at nearly 6,000 points and a gain of approximately 24 % on the previous year's closing value. Th e EURO STOXX 50 gained 21.1 % and the Dow Jones rose 18.8 %.
| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | ||
|---|---|---|---|---|---|---|---|
| Year-end closing price | € | 16.90 | 20.48 | 22.84 | 23.51 | 11.91 | 13.49 |
| High | € | 19.80 | 21.23 | 23.75 | 25.65 | 24.18 | 13.79 |
| Low | € | 14.92 | 16.48 | 18.55 | 19.95 | 7.18 | 6.65 |
| Number of shares | millions | 1,112.8 | 1,193.9 | 1,204.01) | 1,208.21) | 1,209.01) | 1,209.0 |
| Market capitalisation as at 31 December | € m | 18,840 | 24,425 | 27,461 | 28,388 | 14,399 | 16,309 |
| Average trading volume per day | shares | 2,412,703 | 3,757,876 | 5,287,529 | 6,907,270 | 7,738,509 | 5,446,920 |
| Annual performance including dividend | % | 6.4 | 24.1 | 14.9 | 6.9 | –45.5 | 18.3 |
| Annual performance excluding dividend | % | 3.4 | 21.2 | 11.5 | 2.9 | –49.3 | 13.3 |
| Beta factor2) | 0.84 | 0.75 | 0.80 | 0.68 | 0.81 | 0.91 | |
| Earnings per share3) | € | 1.44 | 1.99 | 1.60 | 1.15 | –1.40 | 0.53 |
| Cash fl ow per share4) | € | 2.10 | 3.23 | 3.28 | 4.27 | 1.60 | –0.48 |
| Price-to-earnings ratio5) | 11.7 | 10.3 | 14.3 | 20.4 | –8.5 | 25.5 | |
| Price-to-cash fl ow ratio4), 6) | 8.1 | 6.4 | 7.0 | 5.5 | 7.4 | –28.1 | |
| Dividend | € m | 556 | 836 | 903 | 1,087 | 725 | 7257) |
| Payout ratio | % | 34.8 | 37.4 | 47.1 | 78.6 | – | 112.6 |
| Dividend per share | € | 0.50 | 0.70 | 0.75 | 0.90 | 0.60 | 0.607) |
| Dividend yield | % | 3.0 | 3.4 | 3.3 | 3.8 | 5.0 | 4.4 |
1) Increase due to exercise of stock options, Note 39. 2) From 2006: Beta 3 years; source: Bloomberg. 3) Based on consolidated net profi t excluding minorities, Note 24. 4) Cash fl ow from operating activities. 5) Year-end closing price / earnings per share. 6) Year-end closing price / cash fl ow per share. 7) Proposal.
| 2008 | 2009 | + / – % | ||
|---|---|---|---|---|
| Deutsche Post DHL | € | 11.91 | 13.49 | 13.3 |
| tnt | € | 13.55 | 21.36 | 57.6 |
| FedEx | us\$ | 62.22 | 85.17 | 36.9 |
| ups | us\$ | 54.18 | 58.18 | 7.4 |
| Kuehne + Nagel | chf | 67.55 | 100.50 | 48.8 |
1) Rebased on the closing price of Deutsche Post shares on 30 December 2008.
In the initial weeks of the year, our shares lost considerably more ground than the DAX. Th e dividend reduction to €0.60 per share for fi nancial year 2008 seriously disappointed investors and moved major US investment funds to abandon the stock. On 9 March, our share price hit an all-time low of € 6.65 but then rallied, beginning an impressive climb. In just a few weeks the price shot up over the € 10 mark before dipping slightly in the summer along with the rest of the market. Our second-quarter results clearly indicated that the measures implemented by the Group to limit the impact of the economic crisis were beginning to take eff ect. Th e share price moved back up, this time to stay, and our third-quarter fi gures confi rmed that our eff orts had taken hold. At this time the economic output of the major industrial countries also showed improvement for the fi rst time in the year. Th e positive sentiment that this generated lift ed shares of Deutsche Post to their annual high of €13.79 on 29 December. Our shares closed the year at €13.49, a 13.3 % gain in value. Average trading volumes were only 5.4 million shares (previous year: 7.7 million).
a.14 Candlestick graph / 30-day moving average
Following the previous year's trend, 18 analysts issued buy recommendations on Deutsche Post shares at year-end, with 10 analysts advising investors to hold and eight to sell. Th e average price target was €14 – the same as at year-end 2008.
1) As at 4 February 2010.
2) On 23 July 2009 KfW issued a convertible bond on Deutsche Post ag shares (volume: 54.1 million shares). Investors can convert this bond from the fi rst due date for interest until 30 July 2014.
Our ownership structure was nearly the same as in the previous year. KfW Bankengruppe still held 30.5 % of our shares. Th e free fl oat amounted to 69.5 %, 31.8 % of which were held in the USA, 14.2 % in Germany and 28.0 % in the United Kingdom.
On 7 December 2009, we launched a Level 1 American Depositary Receipt (ADR) programme. Th ese depositary receipts (ticker symbol: DPSGY) enable US investors to hold shares in Deutsche Post indirectly.
In 2009, investors showed great interest in learning how the economic crisis had aff ected the company and what measures had been taken to counteract these eff ects. Other issues of signifi cance were the sale of Postbank to Deutsche Bank as well as the mail business, particularly wage negotiations and the possible introduction of a value added tax on mail products. Our IR team and management spoke with investors about these and other topics in numerous individual meetings and at conferences. Th e Th omson Reuters Extel Pan-European Survey, which is highly regarded in the sector, again awarded us fi rst place in the transport sector.
31
Th roughout 2009 we continued to implement our Roadmap to Value capital markets programme – which we announced in November 2007 – with successful results. In particular, our initiatives to improve profi tability made a signifi cant contribution to consolidated net profi t. Our IndEx programme helped us to lower indirect costs throughout the Group by € 1.108 billion – € 138 million in 2008 and € 970 million in 2009. We even exceeded our total savings target, reaching it twice as quickly as planned thanks to quicker implementation of the savings measures by our divisions, in part due to the ongoing crisis. We were able to compensate for some of the revenue losses resulting from volume declines by lowering costs.
We invested € 1.2 billion in 2009, € 0.5 billion less than the prior-year period and a substantial reduction in capital expenditure. At the same time, we improved working capital by € 426 million in the reporting period. Since the end of 2007, we have reduced working capital by a total of € 890 million, thus surpassing our target of € 700 million.
| Goals | Results | ||
|---|---|---|---|
| 1 Profi tability | • Initiation of two-year programme to improve profi ts by € 1 billion. |
• Profi t improvement target for 2008 reached and IndEx programme implemented earlier than expected. |
|
| • Consolidated ebit of at least € 4.2 billion in 2008. |
• ebit target missed due to various factors including recession, exclusion of Postbank's earnings as a result of its sale etc. |
||
| 2 Liquidity | • Reduction in net working capital of € 700 million by the end of 2009. |
• Target exceeded. Reduction of € 890 million in net working capital since the end of 2007. |
|
| • Cash proceeds of at least € 1 billion from the sale of non-strategic assets within 24 months. |
• Real estate totalling € 1.35 billion sold. | ||
| 3 Dividend | • Proposed dividend increase of 20 % to € 0.90 per share for 2007 and continuous growth in the years to follow. |
• 2007 dividend: € 0.90 • 2008 dividend: € 0.60 |
|
| 4 Transparency | • Enhanced transparency and disclosure. | • Transparency increased signifi cantly, additional reporting detail. |
|
| 5 Organic growth | • Reduction in m & a spend. | No major • m & a conducted. |
Deutsche Post DHL turned in a solid performance in fi nancial year 2009 given the global economic crisis. Although transported volumes were signifi cantly down on the prior-year level, we were able to cushion the decrease in EBIT before non-recurring items. In fact, at approximately € 1.5 billion, we even slightly exceeded our forecast, which was increased to at least € 1.35 billion during the course of the year.
We have taken appropriate measures to survive the crisis and emerge from it even stronger: we have saved more than € 1 billion in indirect costs with our IndEx programme. We have restructured the express business, which will continue to have a positive infl uence on our profi tability going forward. Th e sale of Postbank has consolidated our fi nancial position. Rating agencies gave us a positive short-term credit rating, thanks not least to net liquidity of € 1.7 billion at the end of the year. We have signifi cantly cut investments and focused on organic growth.
| 2008 adjusted |
2009 | ||
|---|---|---|---|
| Revenue | € m | 54,474 | 46,201 |
| Profi t from operating activities (ebit) before non-recurring items | € m | 2,011 | 1,473 |
| Profi t / loss from operating activities (ebit) | € m | −966 | 231 |
| Return on sales1) | % | −1.8 | 0.5 |
| Consolidated net profi t / loss for the period2) | € m | −1,688 | 644 |
| Earnings per share3) | € | −1.40 | 0.53 |
| Dividend per share | € | 0.60 | 0.604) |
1) ebit / revenue. 2) Excluding minorities, including Postbank. 3) Including Postbank. 4) Proposal.
Th e transaction for the sale of Postbank shares to Deutsche Bank agreed in January was completed on 25 February 2009 as planned. Deutsche Bank received a 22.9 % interest in Postbank from Deutsche Post DHL in return for 50 million Deutsche Bank shares from a capital increase (fi rst tranche). By July 2009, Deutsche Post DHL sold all of its shares in Deutsche Bank AG on the market, as planned, taking a key step towards becoming a pure-play mail and logistics group. Th e Group generated around € 100 million more than anticipated from the sale of the 50 million Deutsche Bank shares. Deutsche Post DHL now no longer holds any shares in Deutsche Bank. Th e fi rst tranche aff ected earnings in 2009 by € 571 million; this amount is contained in profi t from discontinued operations and in net fi nancial income.
An additional interest of 27.4 % will be transferred to Deutsche Bank aft er three years when a mandatory exchangeable bond on Postbank shares becomes due (second tranche).
In a third tranche, Deutsche Post DHL and Deutsche Bank agreed on options for the sale / purchase of a further 12.1 % of Postbank's shares. Th ese options cannot be exercised until February 2012. Net fi nancial income includes income of € 647 million that refl ects the performance of the options on the market.
So far, Deutsche Post DHL has received a total of around € 5 billion from the sale of its interest in Postbank.
Insolvency proceedings for Arcandor subsidiaries Karstadt Warenhaus GmbH and Quelle GmbH, two of Deutsche Post DHL' s key customers in Germany, were opened on 1 September 2009. Quelle GmbH has since been liquidated. Th ese insolvency proceedings impacted earnings by a total of €−247 million in our fi nancial statements for the period ended 31 December 2009.
We reported Postbank's activities as discontinued operations until it was sold at the end of February 2009. We report our other business activities as continuing operations.
Consistent with international practice and to improve the clarity of presentation, we no longer report the return on plan assets in connection with pension obligations as part of EBIT but under net fi nance costs / net fi nancial income. In order to increase the transparency of fi nancial assets and liabilities in accordance with IAS 39, we have revised our chart of accounts and changed the fi nancial statement presentation. Th e prior-year amounts have been adjusted accordingly.
In the reporting year, the main changes to our portfolio were as follows:
Due to the deconsolidation of Postbank, which is now accounted for using the equity method, we no longer prepare additional consolidated fi nancial statements including the Deutsche Postbank Group on an equity-accounted basis.
Consolidated revenue from continuing operations in fi nancial year 2009 fell 15.2 % to € 46,201 million (previous year: € 54,474 million). Negative currency eff ects of € 675 million contributed to this decline. Following our exit from the domestic US express business, the share of revenue generated abroad fell from 69.0 % to 65.7 %.
Note 2
Non-recurring expenses of € 495 million were incurred for restructuring activities in the US express business (previous year: € 2,117 million). Additional restructuring costs of € 747 million (previous year: € 440 million) impacted earnings in fi nancial year 2009. In the previous year, additional non-recurring expenses of € 610 million were incurred for an impairment loss on goodwill for Supply Chain and of € 382 million for a write-down on the Exel brand.
In 2008, the repayment received in the EU state aid proceedings generated nonrecurring income of € 572 million. It is primarily for this reason that other operating income fell by € 595 million to € 2,141 million.
Th e lower sales volume in conjunction with lower oil prices led to a fall of € 6,205 million in materials expenses to € 25,774 million.
Staff costs fell by € 1,368 million to € 17,021 million, due mainly to our withdrawal from the US domestic express market.
At € 1,620 million, depreciation, amortisation and impairment losses were down 39.1 % on the prior-year fi gure (€ 2,662 million). Th e year under review was impacted in particular by the restructuring of the US express business and the insolvency of Arcandor. In 2008, write-downs on the goodwill of Supply Chain and the Exel brand in particular had increased depreciation, amortisation and impairment losses.
Th anks to our cost reduction programme, we cut other operating expenses from € 5,146 million in the previous year to € 3,696 million. Travel and consulting costs in particular were reduced considerably.
Profi t from operating activities (EBIT) from continuing operations rose by € 1,197 million to € 231 million, year-on-year. In the previous year, this item contained income of € 572 million from the state aid proceedings, restructuring costs of € 2,557 million and impairment losses of € 992 million. In the reporting period, the above-mentioned restructuring costs impacted earnings by € 1,242 million. Adjusted for these non-recurring items, EBIT fell by 26.8 % to € 1,473 million.
Th e insolvency of Arcandor impacted earnings for the reporting period by a total expense of € 247 million. EBIT before non-recurring items has not been adjusted for this charge.
Measurement of derivatives relating to the sale of Postbank had a positive eff ect on net fi nancial income, which amounted to € 45 million – up € 145 million from the net fi nance costs of € 100 million recorded previously. Th e prior-year fi gure included the interest component of the state aid repayment.
Net fi nancial income also contains a € 19 million gain from the measurement of Postbank on an equity-accounted basis. Postbank has informed us that as a result of a random sampling examination conducted by Deutsche Prüfstelle für Rechnungslegung e.V. a correction has been made to its prior-year fi nancial statements which has, in turn, had an eff ect on the reporting year. Deutsche Post DHL considers this error insignifi cant and has accounted for it in the gain from the measurement of Postbank on an equity-accounted basis for fi nancial year 2009. Net fi nancial income has been reduced by € 25 million as a result.
Th e profi t from continuing operations before income taxes improved to € 276 million (previous year: loss of € 1,066 million).
By contrast, income taxes fell from € 200 million to € 15 million. All in all, profi t from continuing operations amounted to € 261 million, a rise of € 1,527 million on the previous year.
Note 12
Note 13 Note 14
Note 15
Note 16
Profi t from discontinued operations rose by € 1,145 million year-on-year to € 432 million. Th is fi gure includes the net loss generated by Postbank in the fi rst two months of 2009 and the deconsolidation eff ect of € 444 million. Details are presented in the Notes.
Th e combined profi t from continuing and discontinued operations resulted in a consolidated net profi t for the period of € 693 million (previous year: loss of € 1,979 million). Of this amount, € 644 million is attributable to Deutsche Post shareholders and € 49 million to minorities. Both basic and diluted earnings per share rose from €–1.40 to €0.53. Earnings per share for continuing operations amounted to €0.17, whilst earnings per share for discontinued operations were €0.36.
At the Annual General Meeting on 28 April 2010, the Board of Management and the Supervisory Board will propose the payment of a dividend per share of €0.60 for fi nancial year 2009 (previous year: €0.60). Th e distribution ratio based on the consolidated net profi t attributable to Deutsche Post AG shareholders amounts to 112.6 %. Th e net dividend yield based on the year-end closing price of our shares is 4.4 %. Th e dividend will be distributed on 29 April 2010 and is tax-free for shareholders resident in Germany.
Th e Group's fi nancial management activities include cash and liquidity management; the hedging of interest rate, currency and commodity price risk; Group fi nance; issuing guarantees and letters of comfort and liaising with the rating agencies. We manage processes centrally, allowing us to work effi ciently and successfully manage risks.
Responsibility for activities rests with Corporate Finance at Group headquarters, which is supported by three Regional Treasury Centres in Bonn (Germany), Fort Lauderdale (USA) and Singapore. Th ese centres act as interfaces between headquarters and the operating companies, advise the companies on all fi nancial management issues, and ensure compliance with the Group-wide requirements. Th ese guidelines and processes comply with the Gesetz zur Kontrolle und Transparenz im Unternehmensbereich (KonTraG – German law on control and transparency in business) of 27 April 1998.
Corporate Finance's main task is to minimise fi nancial risks and the cost of capital, whilst preserving the Group's lasting fi nancial stability and fl exibility. In order to maintain its unrestricted access to the capital markets, the Group continues to aim for a credit rating appropriate to the sector. We therefore monitor the ratio of our operating cash fl ow to our adjusted debt particularly closely. Adjusted debt refers to the Group's net debt, allowing for unfunded pension obligations and liabilities under operating leases.
Note 21
1) Proposal.
Corporate Treasury is responsible for central cash and liquidity management for our subsidiaries, whose operations span the globe. More than 80 % of the Group's external revenue is consolidated in cash pools and used to balance internal liquidity needs. In countries where this practice is ruled out for legal reasons, internal and external borrowing and investment are arranged centrally by Corporate Treasury. In this context, we observe a balanced banking policy in order to remain independent of individual banks. Our subsidiaries' intragroup revenue is also pooled and managed by our inhouse bank in order to avoid external bank charges and margins (intercompany clearing). Payment transactions are executed in accordance with uniform guidelines using standardised processes and IT systems.
Th e Group uses both primary and derivative fi nancial instruments in order to limit market risk. Interest rate risk is managed exclusively via swaps. Currency risks are hedged using forward transactions, cross-currency swaps and options in addition. We largely pass on the risk arising from commodity fl uctuations to our customers and manage the remaining risk using commodity swaps. Th e framework, responsibilities and controls governing the use of derivatives are laid down in internal guidelines.
Th e Group covers its long-term fi nancing requirements by maintaining a balanced ratio of equity to liabilities. Th is ensures our fi nancial stability whilst providing adequate fl exibility. Our most important source of funds is net cash from operating activities. We cover our borrowing requirements using a number of independent fi nancing sources, including confi rmed bilateral credit lines, bonds and structured fi nancing transactions, and operating leases. Most debt is taken out centrally in order to leverage economies of scale and specialisation benefi ts and hence to minimise the cost of capital.
Th e Group has total unsecured committed credit lines of € 2.7 billion, of which only € 0.2 billion had been drawn down as at 31 December 2009. As part of our banking policy, we ensure we spread the volumes widely and maintain long-term business relationships with fi nancial institutions. Alongside the customary equal treatment clauses and termination rights, the relevant loan agreements do not contain any further covenants concerning the Group's fi nancial indicators. On average, only around 7 % of credit lines were drawn down in 2009 (previous year: 17 %).
Deutsche Post AG provides security for the loan agreements, leases and supplier contracts entered into by Group companies, associates or joint ventures as necessary by issuing letters of comfort, sureties or guarantees. Th is practice allows better conditions to be negotiated locally. Th e sureties are provided and monitored centrally.
Group Management Report Earnings, Financial Position and Assets and Liabilities Financial position
Credit ratings represent an independent and current assessment of a company's credit standing. Th e ratings are based on a quantitative analysis and measurement of the annual report and appropriate planning data. Qualitative factors, such as industryspecifi c features and the company's market position and range of products and services, are also taken into account. Th e creditworthiness of our Group is reviewed on an ongoing basis by the rating agencies Standard & Poor's and Moody's Investors Service.
Standard & Poor's has issued a long-term credit rating of BBB+ for our Group's ability to meet its fi nancial commitments, which it regards as appropriate. Moody's gave us a similar rating. Th is means that Deutsche Post DHL is well positioned in the transport and logistics sector. Th e following table shows the current ratings and rating factors. Th e complete analyses by the rating agencies and the rating categories are to be found on our website.
Long-term: bbb + Short-term: a–2 Outlook: negative
Signifi cant disposal proceeds to fund restructuring and provide liquidity
Regulatory risk and structural volume decline in the mail business
1) Most recent report.
As at the balance sheet date, the Group had cash and cash equivalents in the amount of € 3.1 billion (previous year: € 1.4 billion) at its disposal. A large portion of this is accounted for by Deutsche Post AG. Most of the cash and cash equivalents are invested centrally on the money market. Such short-term money-market investments amounted to € 1.9 billion as at the reporting date. Th ese are supplemented by investment funds of € 1.6 billion that are callable at sight and are reported as current fi nancial assets in the balance sheet.
Long-term: Baa 1 Short-term: p–2 Outlook: stable
for the global network
dp-dhl.com/en/investors.html
38
Note 46
Net cash from the sale of Postbank in the reporting period amounted to around € 5 billion. On the other hand, extraordinary cash outfl ows of € 1.4 billion was incurred for restructuring of the US express segment in particular, and for the early repayment of a municipal bond, which had been issued to fi nance investments in Cincinnati Airport (€ 0.1 billion).
Th e financial liabilities reported in our balance sheet can be broken down as follows:
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Bonds | 2,019 | 1,870 |
| Due to banks | 1,080 | 577 |
| Finance lease liabilities | 531 | 269 |
| Liabilities to Group companies | 184 | 126 |
| Liabilities at fair value through profi t or loss | 652 | 141 |
| Other fi nancial liabilities | 408 | 4,456 |
| 4,874 | 7,439 |
Th e largest single items are Deutsche Post Finance B.V.'s two listed bonds. Also of signifi cance are the municipal bond issued to fund investments at the airport in Wilmington, Delaware (US), and the project fi nance received from the European Investment Bank for mail sorting centres in Germany and an IT centre in the Czech Republic.
Other fi nancial liabilities mainly comprise the sale of Deutsche Postbank AG shares in the form of a mandatory exchangeable bond, cash collateral and a hedging liability. Further information on the reported financial liabilities is contained in the Notes.
Operating leases are an important source of funding for the Group. We use operating leases to fi nance real estate as well as aircraft , vehicle fl eets and IT equipment.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Land and buildings | 6,452 | 5,359 |
| Technical equipment and machinery | 68 | 106 |
| Other equipment, offi ce and operating equipment, transport equipment, other | 560 | 416 |
| Aircraft | 194 | 312 |
| 7,274 | 6,193 |
Operating leasing obligations fell signifi cantly to € 6.2 billion in 2009 (continuing operations in the previous year: € 7.1 billion). Th is was mainly because the US express business was substantially reduced, but also because capital requirements were lower overall. Th ese eff ects were partially off set by an increase in the aircraft item as a result of AeroLogic GmbH's fl eet expansion.
Th e Group's capital expenditure (capex) amounted to € 1,171 million in total at the end of December 2009 (previous year: € 1,727 million), down slightly on the budgeted fi gure of approximately € 1,200 million. We used these funds to improve productivity and quality. We acquired assets with which we process customer orders and maintain our network's performance, with the focus being on replacement investments.
In line with the economic situation, we spent 32.2 % less year-on-year, and 25.2 % less in the fourth quarter. Th e EXPRESS and SUPPLY CHAIN divisions in particular contributed to this signifi cant decline. We used the funds mainly to replace and expand the following assets: € 930 million was invested in property, plant and equipment and € 241 million in intangible assets excluding goodwill. Investments in property, plant and equipment related mainly to advance payments and assets under development (€ 207 million), technical equipment and machinery (€ 182 million), IT equipment (€ 132 million), transport equipment (€ 128 million), aircraft (€ 110 million) and other operating and offi ce equipment (€ 98 million). Investments in intangible assets related to internally generated and purchased soft ware (€ 166 million) and advance payments and intangible assets under development (€ 59 million).
We invested primarily in Europe, the Americas and Asia. Our investment activities in Europe were focused on Germany, Belgium and the UK. In Asia we concentrated on India, Malaysia and China.
| € m | express | forwarding, freight |
supply chain | Corporate Center / | Other | Consolidation | Continuing operations |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 20081) | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | |
| Capex | 282 | 329 | 727 | 380 | 94 | 82 | 390 | 204 | 234 | 176 | 0 | 0 | 1,727 | 1,171 |
| Depreciation on assets | 346 | 321 | 542 | 489 | 105 | 108 | 1,343 | 403 | 326 | 299 | 0 | 0 | 2,662 | 1,620 |
| Capex-to-depreciation ratio | 0.82 | 1.02 | 1.34 | 0.78 | 0.90 | 0.76 | 0.29 | 0.51 | 0.72 | 0.59 | 0 | 0 | 0.65 | 0.72 |
1) Depreciation including write-downs on goodwill and the Exel brand.
| € m | forwarding, | Corporate Center / | Continuing | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| express | freight | supply chain | Other | Consolidation | operations | |||||||||
| 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 20081) | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | |
| Capex | 113 | 129 | 195 | 99 | 29 | 32 | 104 | 64 | 74 | 61 | 0 | 0 | 515 | 385 |
| Depreciation on assets | 93 | 76 | 208 | 170 | 30 | 28 | 1,101 | 92 | 130 | 83 | 0 | 0 | 1,562 | 449 |
| Capex-to-depreciation ratio | 1.22 | 1.70 | 0.94 | 0.58 | 0.97 | 1.14 | 0.09 | 0.70 | 0.57 | 0.73 | 0 | 0 | 0.33 | 0.86 |
1) Depreciation including write-downs on goodwill and the Exel brand.
Capital expenditure in the MAIL division in the reporting period rose from € 282 million to € 329 million. Th ese investments related in particular to technical equipment and machinery (€ 92 million), internally generated intangible assets (€ 76 million), other operating and offi ce equipment (€ 73 million) and IT equipment (€ 55 million).
In the domestic mail business, investments focused on replacing technical equipment and machinery, IT, and other operating and offi ce equipment. We purchased mail sorting machines for the mail centres in Germany that enable standard and compact letters to be processed more effi ciently. We also replaced transport equipment.
In the domestic parcel business, the main investment areas were other operating and offi ce equipment, technical equipment and IT. In the reporting period, we increased the number of Packstations by more than 1,000 to around 2,500.
With regard to retail outlets, we modernised the IT infrastructure, improved the soft ware used at the counters and restructured the network.
Investments in the international mail business were down substantially and focused on replacement property, plant and equipment.
We signifi cantly reduced investments in the EXPRESS division in the reporting period to € 380 million (previous year: € 727 million), in line with the economic situation. Investments in property, plant and equipment focused on aircraft (€ 110 million), advance payments and assets under development (€ 100 million), technical equipment and machinery (€ 46 million), leasehold improvements (€ 26 million) and IT equipment (€ 16 million).
Investments in intangible assets related mainly to advance payments and intangible assets under development (€ 38 million) as well as soft ware (€ 19 million). We maintained our worldwide network of aircraft and our vehicle fl eet and established and expanded hubs and terminals.
In regional terms, we focused on Europe, the Americas and the Asia Pacifi c region. In Europe, we equipped terminals in Benelux, Scandinavia and the UK in particular. In the Americas, we replaced technical equipment and IT primarily as part of the restructuring of the US express business. In the Asia Pacifi c region, we invested in our network, terminals, gateways and offi ce buildings.
A total of € 82 million was invested in the GLOBAL FORWARDING, FREIGHT division (previous year: € 94 million). Of this fi gure, € 58 million was attributable to the Global Forwarding Business Unit. Investments were made mainly in intangible assets (€ 20 million), leasehold improvements (€ 10 million), IT equipment (€ 10 million), advance payments and property, plant and equipment under development (€ 6 million), and other operating and offi ce equipment (€ 5 million). Th is laid the foundation for a modern IT infrastructure, simplifi ed processes and equipped buildings. In regional terms, we focused on the Asia Pacifi c region, the Americas and Europe.
Funds of € 24 million were invested in the Freight Business Unit, where they were used primarily for terminal expansion and state-of-the-art IT. In regional terms, we focused on Germany, Scandinavia and the Benelux countries.
mail, page 47
Glossary, page 224
At € 204 million, investments in the SUPPLY CHAIN division were down signifi cantly on the previous year's level (€ 390 million). Of this fi gure, € 183 million was attributable to the Supply Chain Business Unit. We invested primarily in projects with new and existing customers in order to establish and expand long-term customer relationships. Approximately 45 % of capital expenditure was invested in new business.
In the United Kingdom, we directed capital expenditure towards cross-sector warehouse solutions and related equipment for new and existing customers, as well as in transport equipment. In the Americas region, we invested in technical equipment and machinery, which will benefi t our new customers in the consumer, retail, energy and automotive sectors. We also modernised warehouses for existing customers in all sectors. Capital expenditure was reduced most heavily in Continental Europe. Th e funds were primarily used to equip warehouses for new customers and to purchase associated IT equipment.
In the Williams Lea Business Unit (total expenditure: € 21 million) state-of-the-art printing technology, amongst other things, was purchased, mainly for Germany.
Cross-divisional investments also continued to decline, from € 234 million in the previous year to € 176 million. Most of the expenses were incurred for the purchase of vehicles and for IT. Th e decline in investment volume was mainly due to fewer vehicles being purchased. Deutsche Post Fleet GmbH invested € 103 million in new and replacement vehicles (previous year: € 160 million). Funds amounting to € 58 million (previous year: € 41 million) were invested in IT. Th is increase was mainly the result of restructuring.
Net cash from operating activities fell by € 2,118 million year-on-year to € 1,244 million. Th is is mainly the result of the utilisation of provisions, primarily due to the restructuring of the US express business. For this reason, net cash from operating activities before changes in working capital was down signifi cantly on the prior-year fi gure (€ 2,714 million), at € 763 million. Th e reduction in working capital also led to an increase in net cash from operating activities. In particular, the decline in receivables and other current assets contributed to the improvement. All in all, the net cash from working capital is down € 167 million year-on-year.
a.28 Selected cash fl ow indicators (continuing operations)
€ m
| 2008 | 2009 | |
|---|---|---|
| Cash and cash equivalents as at 31 December | 1,350 | 3,064 |
| Change in cash and cash equivalents | 62 | 1,456 |
| Net cash from operating activities | 3,362 | 1,244 |
| Net cash used in investing activities | −914 | −1,469 |
| Net cash used in/from fi nancing activities | −2,386 | 1,681 |
528
432
supply chain
At € 1,469 million, net cash used in investing activities was up signifi cantly year-onyear (2008: € 914 million). Th is was mainly due to the sale of properties in 2008 leading to a € 942 million infl ow of funds; in addition, we received interest of € 495 million on the repayment of EU state aid. In contrast, cash paid to acquire non-current assets fell sharply by € 1,713 million to € 1,456 million. Amongst other things, we modernised mail centres and IT and maintained our global network of aircraft . In the previous year, a signifi cant amount of funds was invested in establishing the European and Asian air hubs in particular and we also participated in Postbank's capital increase. Th e change in current fi nancial assets led to a net cash outfl ow of € 659 million. Th e sale of the Deutsche Bank shares resulted in a cash infl ow which was invested in capital market instruments. Cash paid to acquire subsidiaries and other business units fell sharply from € 1,417 million in the previous year to € 53 million.
Taken together, net cash used in operating activities and net cash used in investing activities resulted in a negative free cash fl ow of € 225 million. In the previous year, the free cash fl ow was clearly positive, at € 2,448 million.
Financing activities in the reporting year resulted in cash infl ows of € 1,681 million. Th is increase was largely due to Deutsche Bank's subscription of the mandatory exchangeable bond in connection with the sale of Postbank and to payment of the collateral for the put option for the remaining Postbank shares. Th e dividend payment to our shareholders was the largest payment in this area (€ 725 million). Th e decline in current fi nancial liabilities was refl ected in lower interest payments, which fell € 143 million to € 291 million. Net cash used in fi nancing activities in the previous year amounted to € 2,386 million.
Cash and cash equivalents rose from € 1,350 million to € 3,064 million year-on-year due to the changes in the individual areas of continuing operations and discontinued operations.
Th e deconsolidation of Postbank led to a sharp reduction in the Group's total assets as at 31 December 2009. At € 34,738 million, these were down € 228,226 million on the fi gure as at 31 December 2008.
Non-current assets increased from € 20,517 million to € 22,022 million, primarily because of the € 1,711 million rise in investments in associates. Following the deconsolidation, this item contains the remaining shares in Postbank. Specifi cally, the put options received as part of the Postbank sale increased other non-current fi nancial assets from € 718 million to € 1,448 million. Other non-current assets declined slightly by € 22 million to € 348 million. Property, plant and equipment fell from € 6,676 million to € 6,220 million mainly, as a result of depreciation, amortisation and impairment losses and write-downs. Deferred tax assets also decreased by € 365 million to € 668 million.
Deutsche Post DHL Annual Report 2009
Group Management Report Earnings, Financial Position and Assets and Liabilities Assets and liabilities
Notes 33 to 38
Table c.05 and Note 42
Notes 46 to 48
Note 5
Compared with 31 December 2008, equity attributable to Deutsche Post shareholders rose by € 350 million to € 8,176 million. Th e increase was primarily due to the consolidated net profi t for the period, whereas the dividend payment for fi nancial year 2008 served to decrease this item. Th e signifi cant € 1,929 million decline in minority interests to € 97 million is due to the deconsolidation of Postbank.
Th e sale of Postbank was also the key factor behind the reduction in non-current and current liabilities. All of Postbank's liabilities and provisions were reported under liabilities associated with assets held for sale as at 31 December 2008 and were recognised in full as disposals following its deconsolidation. Th is resulted in a net decline of € 227,736 million. Financial liabilities increased from € 4,874 million to € 7,439 million. Current fi nancial liabilities were reduced from € 1,422 million to € 740 million, primarily because bank loans were repaid and liabilities from foreign currency derivatives fell. By contrast, non-current fi nancial liabilities increased from € 3,452 million to € 6,699 million, as a mandatory exchangeable bond was subscribed as part of the Postbank sale and the put options were collateralised. Non-current and current provisions declined from € 10,836 million to € 9,677 million due in particular to the utilisation of provisions for restructuring measures and lower deferred tax liabilities. Trade payables amounted to € 4,861 million as at 31 December 2009 and were therefore slightly below the previous year (€ 5,016 million). Other current and non-current liabilities also fell by € 253 million, from € 4,299 million to € 4,046 million.
In order to ensure the comparability of the indicators, fi gures as at 31 December 2008 refer to an analysis with Postbank presented on an equity-accounted basis (" Postbank at equity").
Th e revision of our chart of accounts aff ected the composition of net debt / net liquidity: this indicator now also contains the eff ects of the measurement of derivatives. Th e prior-year amounts have been adjusted accordingly. Details are presented in the Notes.
Th e sale of Postbank signifi cantly reduced our net debt and increased our net liquidity. Although fi nancial liabilities increased following subscription of the mandatory exchangeable bond and payment of the collateral for the put option on the remaining Postbank shares, the cash and fi nancial assets received in exchange for the Postbank shares increased. However, we have not included the mandatory exchangeable bond when calculating net debt, as it will be paid for in full by Postbank shares. Equally, the collateral for the put option on the remaining Postbank shares and the net eff ect of the measurement of the derivatives from the sale of Postbank are not included in the calculation. As a result, net debt decreased, or net liquidity increased, from € 2,466 million to €–1,690 million.
At 23.8 %, the equity ratio was exactly the same as in the previous year.
Net gearing – the ratio of net debt to the sum of equity and net debt combined – fell from 23.7 % to –25.7 %.
Net interest cover is calculated by dividing EBIT by net interest received / paid and shows the ratio of EBIT to net interest obligations. It declined from 7.1 to 1.2.
Th e dynamic gearing ratio is an indicator of internal fi nancing capacity and expresses the average number of years required to pay off outstanding debt using the cash fl ow generated from operating activities in the year under review. It changed from an average of 0.7 years to –1.4 years.
| 20081) | 2009 | ||
|---|---|---|---|
| Equity ratio | % | 23.8 | 23.8 |
| Net debt / net liquidity | € m | 2,466 | −1,690 |
| Net gearing | % | 23.7 | −25.7 |
| Net interest cover | 7.1 | 1.2 | |
| Dynamic gearing ratio | years | 0.7 | −1.4 |
1) Postbank at equity.
€ m
| 2008 | 2009 | |
|---|---|---|
| Non-current fi nancial liabilities | 3,452 | 6,699 |
| Current fi nancial liabilities | 1,422 | 740 |
| Financial liabilities | 4,874 | 7,439 |
| Cash and cash equivalents | 1,350 | 3,064 |
| Current fi nancial assets | 684 | 1,894 |
| Long-term deposits1) | 256 | 120 |
| Positive fair value of non-current fi nancial derivatives2) | 89 | 805 |
| Financial assets | 2,379 | 5,883 |
| Financial liabilities to Williams Lea minority shareholders | 29 | 23 |
| Mandatory exchangeable bond3) | 0 | 2,670 |
| Collateral for the put option3) | 0 | 1,200 |
| Net effect of the measurement of the Postbank derivatives4) | 0 | 647 |
| Non-cash adjustments | 29 | 3,246 |
| Net debt / net liquidity (continuing operations) | 2,466 | −1,690 |
1) Reported in available-for-sale fi nancial assets in the balance sheet.
2) Reported in non-current fi nancial assets in the balance sheet.
3) Reported in non-current fi nancial liabilities in the balance sheet.
4) Reported in non-current fi nancial assets and fi nancial liabilities in the balance sheet.
| € m | 2008 adjusted |
2009 | + / – % | Q 4 2008 adjusted |
Q 4 2009 | + / – % |
|---|---|---|---|---|---|---|
| Revenue | 14,393 | 13,684 | –4.9 | 3,895 | 3,712 | –4.7 |
| of which Mail Communication | 6,031 | 5,820 | –3.5 | 1,600 | 1,554 | –2.9 |
| Dialogue Marketing | 2,855 | 2,678 | –6.2 | 781 | 710 | –9.1 |
| Press Services | 860 | 819 | –4.8 | 223 | 209 | –6.3 |
| Parcel Germany | 2,582 | 2,574 | –0.3 | 762 | 768 | 0.8 |
| Retail Outlets | 815 | 806 | –1.1 | 229 | 218 | –4.8 |
| Global Mail | 1,970 | 1,679 | –14.8 | 503 | 453 | –9.9 |
| Pension Service | 88 | 98 | 11.4 | 20 | 21 | 5.0 |
| Consolidation/Other | –808 | –790 | 2.2 | –223 | –221 | 0.9 |
| Profi t from operating activities (ebit) before non-recurring items | 1,641 | 1,412 | –14.0 | 476 | 511 | 7.4 |
| Profi t from operating activities (ebit) | 2,179 | 1,383 | –36.5 | 442 | 503 | 13.8 |
| Return on sales (%)1) | 15.1 | 10.1 | 11.3 | 13.6 | ||
| Operating cash fl ow | 2,235 | 1,148 | −48.6 | − | − | − |
| express | ||||||
| Revenue | 13,637 | 10,312 | –24.4 | 3,282 | 2,778 | −15.4 |
| of which Europe | 6,631 | 5,603 | –15.5 | 1,633 | 1,474 | −9.7 |
| Americas | 3,559 | 1,473 | –58.6 | 712 | 391 | −45.1 |
| Asia Pacifi c | 2,746 | 2,580 | –6.0 | 723 | 724 | 0.1 |
| eemea (Eastern Europe, the Middle East and Africa) | 1,176 | 1,054 | –10.4 | 310 | 280 | −9.7 |
| Consolidation / Other | −475 | −398 | 16.2 | −96 | −91 | 5.2 |
| Profi t from operating activities (ebit) before non-recurring items | 164 | 238 | 45.1 | 66 | 162 | > 100 |
| Loss from operating activities (ebit) | –2,194 | –807 | 63.2 | −2,206 | −375 | 83.0 |
| Return on sales (%)1) | –16.1 | –7.8 | −67.2 | −13.5 | ||
| Operating cash fl ow | 263 | −459 | − | − | − | − |
| global forwarding, freight | ||||||
| Revenue | 14,179 | 10,870 | −23.3 | 3,611 | 2,996 | −17.0 |
| of which Global Forwarding | 10,585 | 7,891 | −25.5 | 2,744 | 2,208 | −19.5 |
| Freight | 3,710 | 3,065 | −17.4 | 899 | 810 | −9.9 |
| Consolidation / Other | −116 | −86 | 25.9 | −32 | −22 | 31.3 |
| Profi t from operating activities (ebit) before non-recurring items | 403 | 272 | −32.5 | 114 | 67 | −41.2 |
| Profi t from operating activities (ebit) | 362 | 191 | −47.2 | 73 | 23 | −68.5 |
| Return on sales (%)1) | 2.6 | 1.8 | 2.0 | 0.8 | ||
| Operating cash fl ow | 630 | 528 | −16.2 | − | − | − |
| supply chain | ||||||
| Revenue | 13,718 | 12,507 | –8.8 | 3,535 | 3,223 | –8.8 |
| of which Supply Chain | 12,469 | 11,302 | –9.4 | 3,209 | 2,909 | −9.3 |
| Williams Lea | 1,243 | 1,206 | –3.0 | 332 | 317 | −4.5 |
| Profi t / loss from operating activities (ebit) before non-recurring items | 196 | −121 | < −100 | 47 | −98 | < −100 |
| Loss from operating activities (ebit) | –920 | –208 | 77.4 | –1,069 | –171 | 84.0 |
| Return on sales (%)1) | –6.7 | –1.7 | –30.2 | –5.3 | ||
| Operating cash fl ow | 481 | 432 | −10.2 | − | − | − |
1) ebit / revenue.
Special services Franking Philately
Advertising mail Tailored end-to-end solutions Special services
Press distribution services Special services
Pension Service Database administration Payments
39 million households 3 million business customers 2 – 3 million retail outlet customers per working day
82 mail centres 33 parcel centres Approximately 2,500 Packstations Approximately 1,000 Paketboxes Approximately 17,000 retail outlets and points of sale 70 million letters per working day 2.5 million parcels per working day
a.32 Domestic mail communication market, 2009
Source: company estimate.
We are Europe's largest postal company, delivering some 70 million letters every working day in Germany. We off er all types of products and services to both private and business customers, ranging from standard letters and merchandise to special services such as cash on delivery and registered mail. Customers can now also purchase stamps online or via text messaging rather than just at our retail outlets or from stamp machines as in the past. In addition, we develop tailor-made mailing solutions to meet the needs of business customers and organisations. For example, we digitalised all of the applications for the Umweltprämie (environmental rebate), which the German government introduced in 2009 to promote passenger car sales, and transmitted them in electronic form to the German federal offi ce of economics and export control.
Our mail business focuses on Germany, where the mail market was fully liberalised at the start of 2008. Since then, competition has become more intense. In addition, the domestic mail market is shrinking because electronic communication is increasingly replacing paper-based communication. Th e economic crisis acted to intensify this trend. In the year under review, the market decreased by 3.1 % to around € 6.3 billion (previous year: € 6.5 billion). We held our share of the market at 87.2 % thanks to our high quality.
Our technical solutions mean that companies are not only able to design and print their advertising mail themselves, they can also calculate the best postage rate. For direct advertising to reach its target, it is important that the address database is always up to date. We off er online tools and services that can be used to ensure the quality of addresses. In addition, we develop solutions for multi-channel customer dialogue ranging from consulting and concept development all the way to media planning and buying as well as the production and dispatch of advertising materials. We thus combine dialogue marketing with conventional advertising and we conduct market research to measure the impact of such advertising.
Th e German market for dialogue marketing comprises advertising mail along with telephone and e-mail marketing. Compared with the previous year, this market shrank by 5.5 % to a volume of € 19.3 billion. Companies sharply reduced advertising expenditure in the face of the economic crisis, especially mail-order companies and fi nancial service providers. We have maintained our share of 13.4 % in this highly fragmented market.
We deliver newspapers and magazines nationwide on the day specifi ed by the customer. Our Press Services Business Unit off ers two products: Preferred Periodicals, which is how publishers traditionally mail their subscribed publications, and Standard Periodicals, which is how companies that distribute customer or employee magazines via Deutsche Post usually send these items. Our special services include electronic address updating as well as complaint and quality management.
According to a study carried out by Simon-Kucher & Partners, the German press services market had a total volume of 17.0 billion items in 2009, a decline of 4.5 % on the prior year. Th e circulation and weight of newspapers and magazines has decreased because fewer advertisements were placed. Our competitors in this market are primarily the companies that deliver regional daily newspapers. Although the overall market shrank, we held our share at 11.4 %.
We handle around 2.5 million parcels within Germany each day. We are always available for our private and business customers, no matter when or where. Our customers can send and collect parcels and small packages at our 17,000 retail outlets and points of sale, 2,500 Packstations and 1,000 Paketboxes (approximate fi gures). We have Packstations in more than 1,600 towns and cities that can be reached within 10 minutes by 90 % of the German population. Private customers can also go online and purchase packaging materials, buy postage for parcels, place parcel collection orders and track items.
For business customers, we develop solutions customised for their particular sector. In the dynamically growing online marketplace, both suppliers and customers value fast, simple and secure order placement. For this reason, we do more than simply transport catalogues, goods and returns. We also provide shipping and returns processing soft ware that is tailor made for each individual customer along with special services such as Postident, a product with which retailers can check the age and identity of their internet customers.
Source: study by Simon-Kucher & Partners.
1) This figure cannot be compared with the prioryear figure because the compiling method has changed.
Source: company estimates.
In 2009, volumes in the German parcel market declined by approximately 2.7 % to around € 6.3 billion. Th is market is highly competitive, comprising several well-positioned suppliers such as DPD, UPS, GLS and Hermes. For years now, the parcel business has benefi ted from online sales, which saw another double-digit increase in the reporting year despite the economic crisis. Whilst private demand remained robust, albeit with closer attention being paid to prices, the business-to-business market continued to decline. Traditional mail-order companies are really suff ering, as shown by the insolvency of Quelle GmbH. Despite this diffi cult environment, we increased our share in the German parcel market to 39 %.
We deliver mail across borders, serve the domestic markets of countries outside of Germany and also provide special services beyond mail transport. We serve business customers in key domestic mail markets, including the USA, the Netherlands, the UK and Spain. In France, we have scaled back our services with the sale of DHL Global Mail Services SAS. In the USA, we discontinued our DHL@home product for mail-order companies aft er having reduced our express transport network there.
Th e global market volume for outbound cross-border mail was approximately € 7 billion in 2009. Business in the year under review was shaped by the global recession and a tougher competitive environment. We lost market share due to our decision to focus strictly on earnings and therefore to cut ties with unprofi table customers. We expect a total market share of 14.5 % for 2009.
In Germany, we maintain a nationwide transport and delivery network consisting of 82 mail centres and 33 parcel centres that provide high-quality and effi cient mail and parcel processing. We continue to maintain the high level of automation in our mail business at over 90 %.
Market research and complaints tell us that our customers expect us to achieve the highest possible quality standards. Th ey rate the quality of our services based on whether mailed items reach their destinations quickly, reliably and undamaged. Our quality management is based on a system that is inspected and certifi ed each year by the Technischer Überwachungsverein Nord (TÜV Nord – technical inspection association for northern Germany). We again attained excellent results in letter transit times within Germany. According to surveys conducted by Quotas, a quality research institute, well over 94 % of the letters posted during our daily opening hours or before fi nal box collections are delivered to their recipients the next day.
In the parcel business, transit times were again improved in the reporting year: nearly 90 % of the deliveries we picked up from business customers reached their destination on the next day. Since 2008, our internal system for measuring parcel transit times has been certifi ed by TÜV Rheinland.
For international letters, transit times are determined by the International Post Co-operation (IPC). According to European Union (EU) specifi cations, 85 % of all crossborder letters posted within the EU must be delivered within three days of posting. We expect to have signifi cantly exceeded this fi gure once again, reaching a level of 97 %.
Th anks to our co-operation with retailers, our approximately 17,000 retail outlets and points of sale have average weekly opening times of 46 hours. Surveys of our retail outlet customers are conducted annually by Kundenmonitor Deutschland (customer monitor for Germany) to determine their level of satisfaction with our services. Over the past 10 years, our ratings have steadily improved from an already high level. Our partner-operated locations in particular have received ratings approaching those of the retail sector, with some partners even exceeding them. More than 90 % of customers are served within three minutes as confi rmed by mystery shoppers from TNS Infratest, which we hire to conduct around 30,000 tests of the retail outlets per year.
We regard working practices that protect the environment as a key yardstick of quality. In Germany, we therefore employ a TÜV Nord-certifi ed environmental management system in our mail and parcel businesses. As part of our GoGreen initiative, we off er private and business customers climate-neutral shipping options. We are also testing transport options involving hybrid, natural gas and electric-powered vehicles.
We have three strategic approaches aimed at meeting the challenges of our business, both today and in the future.
We cut costs wherever possible and sensible, and enhance our business by launching new products and perpetuating strong customer relationships. We also retain the high quality of our services whilst protecting the environment. Ideally, we search for solutions that meet several goals at once: a new generation of machines in our mail centres, for instance, not only raises the level of automation and thus quality but also lowers production costs and carbon (CO2) emissions.
Proximity to our customers is important to us. We operate the largest network by far of fi xed-location retail outlets in Germany, consisting of some 17,000 outlets and sales points. We are expanding our partnerships with retailers, and we off er fast and easy online access to our mail and parcel services. Over the next three years, we will expand our network of around 2,500 Packstations by another 150 machines.
To ensure that the earnings contribution of our mail business remains stable in the future as well, we need to fundamentally change our network to make the costs more fl exible. In 2009, we tested procedures for enabling us to respond to fl uctuating or declining volumes without sacrifi cing quality. During the summer holiday period, we combined carrier routes, relocated mail sorting to neighbouring mail centres and downsized our overnight airmail network. We will repeat those procedures that proved eff ective as necessary. Moreover, we plan to expand our parcel network and render it more fl exible in the interests of our customers.
Corporate responsibility, page 77
We are taking advantage of our expertise in physical communications to off er competent electronic communications. Th e internet is already facilitating customer access to our services. Th ey can calculate and purchase postage and also locate retail outlets and Packstations online and by mobile telephone. In addition, starting in 2010 we will begin off ering the letter on the internet, a binding, confi dential and reliable form of written electronic communication.
We intend to continue participating in the growing internet advertising market. We already off er small and medium-sized enterprises a platform for local services at www.allesnebenan.de as well as the option of calculating costs and placing advertisements in a variety of media using our easy-to-use Werbemanager (advertising manager). In our parcel business, we are developing solutions for internet sales. Customers can go to www.meinpaket.de for easy, secure and transparent online purchasing and payment. Parcel recipients receive advance notifi cations of when their parcels will arrive. In the future, they will even be able to choose where and when they wish to receive their parcels.
In the year under review, revenue amounted to € 13,684 million, down from the previous year's high fi gure of € 14,393 million. Th e year-on-year decline in areas sensitive to economic developments was in line with expectations. Slight exchange rate gains were posted (€ 3 million).
Revenue in the Mail Communication Business Unit declined from € 6,031 million to € 5,820 million. Th e increasing use of electronic communication is resulting in ongoing shrinkage of the market, a trend that has been intensifi ed by the economic crisis. In this economic climate, private customers posted fewer letters than in the previous year. Revenues from business customers stabilised in the third and fourth quarters, although total revenues for 2009 remained below the prior-year level. We retained and regained quality-conscious customers; however, some of our customers turned to competitors as a consequence of a higher sensitivity to prices in light of the poor economic conditions.
In the regulated mail sector, we kept prices stable as dictated by the price-cap procedure. According to a comparative study we conducted, our postage rates still rank amongst the lowest in Europe. Th e survey took account of both the nominal price for sending a standard letter (20 g) by the fastest method, and key macroeconomic factors such as purchasing power and labour costs.
| mail items (millions) | 2008 adjusted |
2009 | + / – % | Q 4 2008 adjusted |
Q 4 2009 | + / – % |
|---|---|---|---|---|---|---|
| Business customer letters | 6,857 | 6,663 | –2.8 | 1,767 | 1,732 | –2.0 |
| Private customer letters | 1,328 | 1,292 | –2.7 | 400 | 386 | –3.5 |
| Total | 8,185 | 7,955 | –2.8 | 2,167 | 2,118 | –2.3 |
51
In a tough economy, customers change their advertising behaviour, a tendency that has become quite apparent in the Dialogue Marketing Business Unit. Mail-order companies in particular advertised much less in the year under review and sent fewer catalogues. Volumes of both addressed and unaddressed advertising mail declined. Although quantities of unaddressed advertising mail rose slightly in the third quarter in the run-up to the German federal elections, they decreased again in the fourth quarter following the Arcandor insolvency. Revenue fell from € 2,855 million in 2008 to € 2,678 million in 2009, a decrease of 6.2 %.
| mail items (millions) | ||||||
|---|---|---|---|---|---|---|
| 2008 | 2009 | + / – % | Q 4 2008 | Q 4 2009 | + / – % | |
| Addressed advertising mail | 6,912 | 6,323 | –8.5 | 1,947 | 1,732 | –11.0 |
| Unaddressed advertising mail1) | 4,940 | 4,580 | –7.3 | 1,344 | 1,209 | –10.0 |
| Total | 11,852 | 10,903 | –8.0 | 3,291 | 2,941 | –10.6 |
1) Prior-year fi gures adjusted to refl ect portfolio changes.
Revenue in the Press Services Business Unit amounted to € 819 million, 4.8 % below the prior-year fi gure of € 860 million. Th e general economic trend led publishers to reduce circulation and even discontinue some publications entirely. In addition, both the number of pages and the weight of newspapers and magazines have fallen because their advertising content has decreased. Th e average prices for distributing these items have therefore dropped.
Revenue in the Parcel Germany Business Unit amounted to € 2,574 million and was thus on par with the prior year's fi gure of € 2,582 million. Th anks to the growth of online sales, we increased revenue in the German parcel market despite the crisis amongst traditional mail-order companies, an important customer group. In the case of Quelle GmbH, the crisis even resulted in liquidation. In the private customer business, total volumes grew slightly. In international business, we transferred Europlus – a parcel product – to the EXPRESS division, resulting in total revenue in the Parcel Germany Business Unit only reaching the prior-year level.
| a.39 Parcel Germany: volumes | ||||||
|---|---|---|---|---|---|---|
| parcels (millions) | ||||||
| 2008 | 2009 | + / – % | Q 4 2008 | Q 4 2009 | + / – % | |
| Business customer parcels | 661 | 648 | –2.0 | 189 | 183 | –3.2 |
| Private customer parcels | 112 | 113 | 0.9 | 37 | 37 | 0.0 |
| Total | 773 | 761 | –1.6 | 226 | 220 | –2.7 |
Revenue generated by our around 17,000 retail outlets and sales points fell slightly from € 815 million to € 806 million, mainly due to lower internal revenues.
In the Global Mail Business Unit, revenue decreased from € 1,970 million to € 1,679 million. Revenue was particularly impacted by the discontinuation of DHL @ home. We no longer off er this product aft er having reduced our US express network. We are seeing the same trend in our international mail business as in the German market: customers have become more price sensitive, which has caused our traditional import and export business to suff er.
| mail items (millions) | 2008 adjusted |
2009 | + / – % | Q 4 2008 adjusted |
Q 4 2009 | + / – % |
|---|---|---|---|---|---|---|
| Global Mail | 7,301 | 6,654 | –8.9 | 1,934 | 1,705 | –11.8 |
Th e prior-year fi gures for profi t from operating activities (EBIT) were adjusted because we no longer report the return on plan assets in connection with pension obligations as part of EBIT. It is now reported under the Group's net fi nance costs / net fi nancial income.
Division EBIT was € 1,383 million, well below the prior-year level of € 2,179 million. Fourth-quarter EBIT amounted to € 503 million (previous year: € 442 million). Th e repayment awarded in the EU state aid proceedings had increased earnings by € 572 million in the previous year. Aft er adjustment for non-recurring expenses such as € 29 million from the sale of DHL Global Mail Services SAS in France (previous year: non-recurring income of € 538 million), EBIT declined by 14.0 % to €1,412 in the year under review (previous year: € 1,641 million). In the fourth quarter, however, EBIT rose by 7.4 % to € 511 million, thanks to stringent cost management. Th e Arcandor insolvency resulted in expenses of € 34 million in the reporting year. EBIT before non-recurring items has not been adjusted for this charge. Th rough strict cost management, we were able to compensate to a large extent for revenue declines arising from the recession and the structural changes resulting from removing Postbank from the VAT group. Wage and cost increases impacted earnings, however. Return on sales amounted to 10.1 %.
Operating cash fl ow amounted to € 1,148 million (previous year: € 2,235 million), mainly due to the repayment awarded in the EU state aid proceedings in the previous year. Working capital amounted to €−878 million, nearly reaching the low level of the previous year (€−894 million).
53
Th e EXPRESS division transports time-sensitive documents and goods reliably from door to door via fi xed routes and using standardised workfl ows. Our network spans more than 220 countries and territories in which more than 100,000 employees serve over eight million customers.
In 2009, we continued expanding our reach for Time Defi nite shipments. In Asia alone, we now off er our pre-12.00 noon delivery service for an additional 3,000 trade lanes.
As a global network operator, we are well aware that the quality of our services and the satisfaction of our customers are crucial in determining our success. Th is is why we are constantly working to optimise our service.
Our three product lines, DHL Time Defi nite, DHL Same Day and DHL Day Defi nite, off er customers courier and express services in each of the three standard time segments. Special express business services such as customs brokerage, medical services and repair and return complement our portfolio.
Normally, our customers make use of our customer service numbers or the internet when ordering transport services. In Germany, we leverage the around 17,000 Deutsche Post retail outlets and Salespoints. We also maintain more than 22,000 Service points outside of Germany, where customers can drop off and pick up shipments as needed and have them packed at no extra charge. Th e prices are standardised by weight class.
At a time when the environmental impact of globalisation is generally a live issue and even more so in the logistics sector, we were the fi rst express service provider to off er GoGreen climate-neutral shipping products in approximately 30 countries.
Cargo carrier AeroLogic went into operation in the summer of 2009. Th is joint venture between DHL Express and Luft hansa Cargo is headquartered at Leipzig / Halle Airport. Th e fl eet currently consists of seven new Boeing aircraft : four B 777 s and three B 767 s. We plan to add another 11 aircraft by 2012: eight B 777 s and three B 767 s. Th ese Glossary, page 224
Corporate responsibility, page 76
aircraft fulfi l all economical and ecological requirements. Compared with earlier models, they reduce fuel consumption and in turn CO2 emissions by more than 20 %. As a result, we expect to reduce emissions by up to 66,000 tonnes per year. Our aircraft fl eet thus makes a crucial contribution to meeting the Group's climate protection goals. During the week, the cargo aircraft fl y to our destinations in Asia and the United States for our express business and at weekends they supplement the Luft hansa Cargo fl eet. Both partners gain capacity and fl exibility through this arrangement, whilst customers benefi t from shorter transit times and lower unit costs.
Th e global express market grew at an average of 6 % to 8 % per year up until 2006, largely due to globalisation. Th e economic downturn that ensued depressed growth markedly to 2 % to 4 % per year, and this continued in 2009. Globalisation nonetheless remains an important growth driver. We are continuing to expand our presence and infrastructure in growth markets. For instance, we are constructing and expanding air hubs, particularly in the Asia Pacifi c region. In addition, we are continuing to take advantage of our strong potential in many domestic markets outside of the United States. We see growth opportunities in the domestic express markets in Latin and South America as well as in China and India. DHL Express has been positioned strongly in all parts of the world for many years and is the international express market leader in all regions outside of North America.
In February 2009 we exited the domestic US express business. We have now refocussed fully on our core competency – the international express business. Th e United States will still remain an integral part of our global network, and the worldwide presence and capability of this network will guarantee us a leading position in the express market.
We have continued to signifi cantly improve our service quality and have replaced legacy IT systems with standardised applications. Our local employees have received additional training as part of the Certifi ed International Specialist programme, which has added strength to our position as experts in international express services and allows us to guarantee fi rst-class service to our customers.
Aft er successfully restructuring the US business, the Americas region was reorganised in July 2009. It now comprises the USA and the six sub-regions of Canada, Mexico, the Caribbean, Central America, Brazil and Spanish-speaking South America. In many countries in the Americas regions, we remain the market leader in the inter national express business. We have expanded our international service off ering to include, amongst other things, pre-09.00 am deliveries to Europe, pre-10.30 am deliveries to the USA from all regions of South and Central America and pre-12.00 noon deliveries within South America.
1) Covers the express products tdi and ddi. 2) Country base: ca, mx, br, co, ar, ve, pa, cl, pe, bo, uy, py, do, jm.
Source: mrsc, annual reports from ups, tnt, FedEx, press releases, company websites, estimates and analyst reports.
In Europe, we have maintained our leading position with a market share of nearly 24 %, even though the international express market in Europe suff ered greatly from the recession. We have provided our customers with fi rst-class service at competitive prices on all trade lanes, particularly to and from Asia and Eastern Europe.
Although we saw volumes decline in our Time Defi nite International (TDI) product during the reporting year, the trend away from air express shipments and towards more economical ground transport has become more pronounced. We were therefore able to expand our market position in our Day Defi nite International (DDI) product and slightly increase our market share.
We have reviewed our Day Defi nite Domestic (DDD) business for profi tability and productivity and decided to implement measures for streamlining our portfolio in the UK and France.
We now deliver more than 94 % of all our pre-12.00 noon shipments on time (previous year: 92.2 %). Our intercontinental hub at Leipzig / Halle Airport plays a major role in making this possible. Each working day some 60 aircraft take off and land there and around 1,500 tonnes of freight are handled. We maintain connections to 46 countries on three continents with more than 27,000 city pairs between Europe, the Middle East and Africa.
At the end of 2009, we announced our intention to relocate the central functions from our head offi ces in Brussels to offi ces in Bonn, Leipzig and Prague in order to leverage synergies.
Asia remains the growth driver even in times of crisis. Th is is especially true in the manufacturing sector, which is responsible for the majority of international exports and express shipments. In China, Korea and Taiwan, manufacturing has already reached pre-recession levels. Government economic initiatives have given a signifi cant boost to this recovery, as has been the case in other major economies.
In 2009, we were able to increase our market share by two percentage points to 36 %. In April, we opened new gateways in Taipei (Taiwan) and Incheon (South Korea). All in all, we have invested more than € 1.9 billion in our regional infrastructure in the past few years and will continue to invest in Asia's core markets in the future.
DHL is one of the most well-known brands in the air freight and courier services industries in Asia. Reader's Digest, for instance, honoured us with its Trusted Brands Award 2009.
In the year under review, we greatly expanded the reach of our Time Defi nite network: we now off er our premium pre-12.00 noon delivery service for an additional 3,000 trade lanes. Our international presence, which has been strengthened by our trans-Pacifi c partnership with Polar Air, is complemented by our operations in key Asian domestic markets. In India, for example, Blue Dart's domestic, ground-based transport services saw encouraging growth.
1) Covers the express products tdi and ddi. 2) Country base: at, be, ch, cz, dk, es, fr, ge, it, nl, no, pl, se, uk. Source: mrsc.
a.43 Asia Pacifi c international
1) Country base: au, cn, hk, id, in, jp, kr, nz, my, ph, sg, th, tw, vn.
Source: mrsc study from 2007, annual reports, press releases, company websites, estimates and analyst reports.
Market volume: € 682 million
1) Country base: za, ng, kz, rs, ru, uae, sa, kw, eg, lb, qa, jd, bh, ir, ma.
Source: mrsc study from 2006 and 2008, annual reports, press releases, company websites, estimates and analyst reports.
In the year under review, we increased our market share to 44 % in the 89 countries making up the EEMEA region (Eastern Europe, the Middle East and Africa). Th is region is highly dependent on the consumer goods industry, which made an encouraging recovery in the second half of 2009, particularly in Russia, South Africa and the United Arab Emirates as well as a number of other emerging economies. We were able to improve our Time Defi nite services signifi cantly, delivering to over 20 % more business addresses prior to 12.00 noon than in the previous year in a region that presents enormous infrastructure challenges. Now, 67 % of customers receive this delivery service.
In Russia, we set up Servicepoints in Saint Petersburg in co-operation with BP. Furthermore, we had the opportunity to showcase our outstanding services by providing express services at the Moscow Fashion Week, which took place in September.
We expanded Day Defi nite road transport in the Middle East, North Africa and Turkey, where DHL is the only ISO-certifi ed (10002 : 2004) express service provider. By investing in infrastructure and quality, we were able to win new contracts in the automotive sector and the consumer goods industry.
With respect to governance, we have consolidated the Asia Pacifi c and EEMEA regions at our offi ces in Singapore.
In the express business, customers consider on-time delivery an important indicator of quality. Th at is why we leverage a system to standardise and monitor the processes throughout our entire organisation. We can use it to determine on-time delivery, analyse delays in individual processes and establish ways to deliver to customers even more quickly.
Consistently high quality of service is crucial for a global network operator. We have therefore developed an operations performance monitoring system that we use to measure and improve the quality of our services. Th is allowed us to maintain quality at the previous year's level in the reporting year in spite of restructuring and cost cuts. We even improved delivery and pickup performance.
We are able to track shipments worldwide and dynamically adjust our processes using state-of-the-art quality control centres. Should unforeseen events occur, fl ight and shipment routes, for example, are altered immediately in order to ensure that shipments reach their recipients at the agreed time.
Th e health and safety, fi nancial compliance and service quality of our facilities are reviewed regularly. In addition, more than 165 locations have been certifi ed by the Transported Asset Protection Agency (TAPA), one of the world's most acknowledged safety associations. We are currently designing a quality management system that will unify our numerous certifi cations in accordance with ISO, TAPA and the Customer Centre of Excellence.
In 2009, economic output dropped sharply nearly everywhere due to the recession. Th e transport industry, which depends heavily on exports, was hit particularly hard. We armed ourselves against this development by cutting costs and increasing effi ciency in our operations and back offi ces, resulting in savings of approximately € 1 billion in direct and indirect costs, excluding the USA. In addition, the cost base of our US activities was reduced by more than € 2.4 billion as a result of our restructuring eff orts. Th ese are important requirements for achieving our goal to remain the fi rst choice in the international express business, across all products and regions. Our strategy is based on the following three pillars:
Th e overriding goal of our endeavours in the fi eld of express delivery is to satisfy our customers. With the help of our Group-wide First Choice programme, we work to ensure that we meet our customers' high demands for speed, reliability and cost effi ciency. Using standardised systems and processes, we have increased the productivity of our sales organisation and thus signifi cantly lowered costs. We also called and visited our customers more frequently in person. Th e fact that we have become better is evidenced by the more than 120 awards we received from external experts in 2009, including renowned awards such as China Best Call Centre, Best Manager and Best Agent.
Th e service at our customer service centres is tested and evaluated by our own employees as part of our mystery shopper programme. We also conduct customer satisfaction surveys on a regular basis to help us adapt quickly to customer needs and requirements.
Th e core element of our strategy is our International Time Defi nite air traffi c network. We off er competitive pricing and fi rst-rate service on all the major trade lanes. As a profi table express service provider, we are constantly optimising our performance standards and our costs in order to expand our market leadership. Specifi cally, this means:
Integrating it platforms. We have standardised numerous systems in all regions in order to optimise interfaces and maintenance costs. In the USA, for instance, we replaced 400 legacy systems with 100 global applications, reducing not only current IT costs but future costs as well. We also adapt our technology to the needs of our customers. Today, more than 50,000 customers can track their shipment status online and by mobile telephone in more than 40 countries using our ProView e-commerce solution. In 2010, we will make our e-commerce applications even more user-friendly and easily accessible.
Optimising processes. Under the umbrella of our Global Standard Operating Procedure Programme, we defi ne worldwide process standards for our entire supply chain, from pickup to delivery. Internally, we make regular checks of whether these standards are being adhered to. Our staff are also developing systems to increase effi ciency. In Berlin, for instance, the Smart Truck has been in use since March 2009. Th is vehicle is equipped with a dynamic route calculation program that allows the driver to react quickly to traffi c situations and customer requests.
Our employees represent our main competitive advantage. We promote our principle of Respect and Results as part of our corporate culture and have made it our aim to be amongst the most attractive employers wherever we operate. In the Americas region, for instance, we have already won several prestigious awards for Best Place to Work. Employee turnover continues to decline in this region.
Revenue in the EXPRESS division declined by 24.4 % in 2009 to € 10,312 million (previous year: € 13,637 million). Exchange rate losses impacted revenue in the amount of € 198 million. Measured in local currencies and adjusted for acquisitions, the decline in revenue amounted to 24.0 %. Th is was due in large part to our exit from the domestic express business in the US, lower volumes and lower fuel surcharge revenues. Outside the USA, revenue in local currencies was down by 11.8 % aft er adjustment for acquisitions.
Daily shipment volumes dropped on the whole in 2009 compared with the previous year. Th e decline amounted to 9.4 % in the TDI product line and to 1.1 % and 0.7 %, respectively, in the TDD and the DDD product groups outside the USA. Although the global recession impacted our business in the fi rst three quarters, daily shipment volumes recovered somewhat in the fourth quarter, levelling out at nearly the previous year's level in the TDI product line and increasing by 3.5 % and 3.4 %, respectively, in the TDD and DDD product groups outside the USA.
Whilst the economic trend had a severe impact on shipment volumes, we managed to absorb the eff ects of our exit from the domestic US business.
59
| € m per day | 2008 adjusted |
2009 | + / – % | Q 4 2008 adjusted |
Q 4 2009 | + / – % |
|---|---|---|---|---|---|---|
| Total | ||||||
| Time Defi nite International | 26.7 | 22.3 | −16.5 | 26.2 | 24.3 | –7.3 |
| Time Defi nite Domestic | 9.0 | 4.3 | –52.2 | 7.5 | 4.7 | –37.3 |
| Day Defi nite Domestic | 9.4 | 6.8 | –27.7 | 8.6 | 7.1 | –17.4 |
| Excluding the usa | ||||||
| Time Defi nite International | 23.7 | 20.3 | −14.3 | 23.6 | 21.9 | –7.2 |
| Time Defi nite Domestic | 4.2 | 4.3 | 2.4 | 4.7 | 4.7 | 0.0 |
| Day Defi nite Domestic | 7.5 | 6.9 | –8.0 | 7.7 | 7.1 | –7.8 |
| thousands of items per day | 2008 adjusted |
2009 | + / – % | Q 4 2008 adjusted |
Q 4 2009 | + / – % |
|---|---|---|---|---|---|---|
| Total | ||||||
| Time Defi nite International | 510 | 462 | −9.4 | 496 | 487 | –1.8 |
| Time Defi nite Domestic | 1,201 | 568 | −52.7 | 955 | 592 | −38.0 |
| Day Defi nite Domestic | 1,271 | 816 | –35.8 | 1,082 | 880 | –18.7 |
| Excluding the usa | ||||||
| Time Defi nite International | 458 | 423 | −7.6 | 449 | 445 | –0.9 |
| Time Defi nite Domestic | 568 | 562 | −1.1 | 570 | 590 | 3.5 |
| Day Defi nite Domestic | 820 | 814 | –0.7 | 851 | 880 | 3.4 |
Revenue dropped by 15.5 % in the Europe region to € 5,603 million (previous year: € 6,631 million). Th is included exchange rate losses of € 196 million, primarily attributable to our UK / Ireland, Scandinavia and Central Europe business. Adjusted for these losses as well as acquisitions in Spain and Romania, revenue in the region declined by 12.9 %. Our Europe business suff ered in the wake of the recession from a drop in volumes in the TDI product line and from lower weights in the DDD product group. Daily shipment volumes in TDD and DDD began recovering in the fourth quarter and closed the quarter with a slight increase.
Since February 2009, we have no longer been off ering a domestic express product in the United States, and we have massively reduced our cost basis there. Restructuring in the US continued on schedule in the year under review and resulted in a total expense of € 495 million. Revenue in the Americas region, which includes the USA, and the other regions of the Americas (Latin America, Canada and the Caribbean), slipped by 58.6 % to € 1,473 million (previous year: € 3,559 million). Th is fi gure includes exchange rate losses of € 3 million. Measured in local currencies, revenue fell by 58.5 %. Outside of the USA, revenue fell organically by 12.0 % compared with the prior year. Th e daily shipment volumes for TDI in the USA dropped by 25.3 % on account of the recession and our restructuring initiatives, a smaller reduction than anticipated.
Including exchange rate gains of € 42 million, revenue in the Asia Pacifi c region decreased by 6.0 % to € 2,580 million (previous year: € 2,746 million). Revenue declined organically by 9.4 %, mainly attributable to lower fuel surcharge revenues and the lower volumes resulting from the economic downturn. Th is fi gure has been adjusted for currency eff ects and acquisitions, particularly in the domestic Chinese express business and in Australia. Daily shipment volumes in 2009 in the TDI and TDD product lines were slightly below the previous year's level. Th e trend in the fourth quarter reversed for these products as well, with TDI and TDD volumes rising year-on-year.
In the EEMEA region (Eastern Europe, the Middle East and Africa), revenue decreased by 10.4 %, from € 1,176 million in 2008 to € 1,054 million in 2009. Th is fi gure contains exchange rate losses of € 40 million. Th e revenue decline amounted to 7.0 % in local currencies. Whilst daily shipment volumes for TDI faded in line with the economy in the reporting year, domestic volumes in 2009 remained stable year-on-year boosted by business growth in the Middle East and Africa.
Th e prior-year fi gures for profi t from operating activities (EBIT) were adjusted because we no longer report the return on plan assets in connection with pension obligations as part of EBIT. It is now reported under the Group's net fi nance costs / net fi nancial income.
Th e division's EBIT improved in the year under review, rising by 63.2 % to €–807 million for full-year 2009 (previous year: €–2,194 million) and by 83.0 % to €–375 million for the fourth quarter (previous year: €–2,206 million). Adjusted for restructuring costs (€ 1,045 million; fourth quarter: € 537 million), EBIT in 2009 was € 238 million (previous year: € 164 million) and € 162 million in the fourth quarter (previous year: € 66 million), up € 96 million year-on-year.
Th e restructuring of our business is continuing to make progress, resulting in an encouraging improvement in earnings despite the poor economic climate. In the United States in particular, we were able to sharply reduce our loss before non-recurring items. US earnings for the year as a whole were in line with projections. In the fourth quarter, we largely achieved our goal of reducing the annualised loss in the USA to less than US \$ 400 million.
Outside the USA, EBIT before non-recurring items decreased from € 1,118 million to € 692 million due to a decline in international and domestic shipment volumes. We were able to compensate for this trend in part through strict cost management.
We improved payment terms with our suppliers and customers via consistent working capital management. However, the costs for restructuring the US business off set the improvements in EBIT before non-recurring items, in working capital and through lower capital expenditure.
Operating cash fl ow, which includes net cash used for restructuring and the losses in the US, fell accordingly year-on-year from € 263 million to €–459 million.
With its Global Forwarding and Freight business units, DHL is the world's largest provider of air and ocean freight services and one of the leading overland freight forwarders in Europe and the Middle East. We develop global and individual transport solutions for our customers, provide capacity and co-ordinate the dispatch of goods and information in more than 150 countries. To do so, we rely on the competence of around 39,000 employees along with reliable partners.
We broker between our customers and freight carriers and combine their orders in order to reach a volume that allows us to secure cargo space and charter capacity from airlines, shipping companies and freight carriers at competitive prices. We also make use of the air freight capacity of our EXPRESS division. Since we purchase transport services rather than providing them ourselves, we are able to operate our business with a very low level of fi xed assets.
DHL Global Forwarding is the industry leader in air and ocean freight. Around 29,000 employees work to ensure that shipments of all kinds are transported to their destination by air or by sea. We also support our customers by providing special transport-related services: we store, collect and deliver the goods, handle customs formalities, insure the load and supply information. In this way, we ensure safety and reliability even across national borders. Our customers come from companies of all sizes. Th ey operate primarily in the technology, pharmaceutical, automotive, manufacturing / mechanical engineering, fashion and consumer goods sectors. We also plan and implement industrial projects worldwide, in particular for the oil and energy industry. To an increasing extent, we also contract for transport management services in order to combine all means of transport for our customers with the goal of reducing complexity, improving quality and lowering costs.
61
Economic parameters, page 20 Glossary, page 224
Market volume for forwarding: 31.7 million teu1),2)
1) Estimated part of overall market controlled by forwarders.
2) Twenty-foot equivalent units.
Source: Global Insight, Global Trade Navigator, annual reports, press releases and company estimates.
Market volume: € 169.4 billion1)
1) Country base: total for 20 European countries, excluding bulk and specialties transport.
Source: mrsc market studies in 2008 and 2009, Eurostat 2008, annual reports, press releases, company websites, estimates and analyst reports.
Th e decline in global trade volume had an especially serious eff ect on the air freight market. iata reports a 10.1 % decline in market volume measured in freight tonne kilometres, whilst DHL registered a decline of approximately 13 %. A direct comparison of these two fi gures, however, cannot be made because the IATA fi gures do not include data on charter fl ights and non-IATA carriers like CargoLux. DHL remains the market leader in both cases.
We are the global leader in both less-than-container-load (LCL) and full-containerload (FCL) shipments. However, the ocean freight business also suff ered from the sharp drop in world trade. According to our estimations, the market volume decreased between 12 % and 13 % in 2009. By contrast, our volumes only declined by roughly 9 %, which allowed us to increase our market share.
DHL Freight is the second-largest overland freight forwarder in Europe and the Middle East, with approximately 10,000 employees and services in more than 53 countries. We see ourselves as a broker of freight capacity. In the overland transport business, we provide full-truckload, part-truckload and less-than-truckload services. We also off er intermodal services with other carriers, especially rail transport companies. Moreover, our range of services includes handling customs formalities and providing insurance.
DHL is also one of the leading providers of trade fair, exhibition and event logistics. Our range of services includes trade fair transport and customised full-service solutions for exhibitors, event organisers, event management and staging companies and event agencies.
In 2008, the European market for road transport grew by 1.3 % (previous year: approximately 4.2 %) even though the fi nancial crisis had begun aff ecting the entire transport industry in the fourth quarter of 2008. Th e decline in demand continued in the fi rst half of 2009, amounting to an average of 20 % to 25 % on the previous year. Overcapacity also put pressure on freight rates, although conditions began easing in mid-2009. Still, total quantities transported dropped by nearly one-sixth during the year under review. We were able to stabilise our market share at 2.1 % according to our calculations.
We measure the quality of our services by the level of satisfaction of our customers. During the reporting year we again focused our attention on customers, surveying more than 15,000 of them in over 50 countries. We then generated some 600 measures based on the results. We oft en work out improvements in conjunction with our cus-
63
tomers, using the Six Sigma method upon which our First Choice programme is based. With one of our key ocean freight customers, for instance, we co-operated to reduce its lead time by 63 %, from 45 to 16.5 days. More than 1,000 of our executives have become certifi ed in the First Choice methodology which allows us to increase quality even more rapidly.
Th e various awards we have received testify once again to the success of our endeavours for even better quality. One of these was received from a key account in the technology sector, Huawei, which presented us with the Excellent Core Partner Award for outstanding cross-sector services for the second time in a row. We were the only logistics company to be given this award. Supply Chain Asia, a logistics magazine, once again named us Air Freight Forwarder of the Year and Best Logistics Provider of the Year in India. All in all, our customers attest to the fact that the quality of our product off ering has improved. Customer satisfaction increased on average compared with the previous year.
We are well positioned in our markets thanks to our product off ering in air, ocean and road transport. Our goal is to achieve steady, organic growth in excess of the market average. To this end, we pursue three approaches:
We are fi ne tuning our network in areas where we see the greatest growth opportunities, particularly in Asia, the Middle East, Africa and Latin America. In 2009, for instance, we added four countries to our African network and opened 19 new locations in China and our own offi ces in Pakistan. We are also adding transport and charter agreements to our range of services on the expanding trade lanes that connect these regions. In our ocean freight business, we are enlarging our tightly woven LCL network, which at present off ers approximately 1,000 routes per week.
We develop transport solutions that meet the needs of specifi c industries. In the year under review, these mostly focused on the fashion and apparel, oil and gas, wine and spirits, pharmaceuticals and technology industries. Together with industry experts, we have set up competence centres for the fashion and apparel industry in key Asian markets such as India, Vietnam, Cambodia and Hong Kong. We maintain similar facilities for the oil and gas industry in Singapore and Houston.
We are investing in a networked IT infrastructure and new technologies. We off er customers in the retail sector and consumer goods industry a complete overview of their procurement and ordering processes at every link of the supply chain.
Th e GLOBAL FORWARDING, FREIGHT division generated revenue of € 10,870 million in 2009, a year-on-year decline of 23.3 % (previous year: € 14,179 million). Th e total was impaired by exchange rate losses of € 97 million. Revenue shrank organically by 22.7 % in the reporting period. We are satisfi ed with our business performance in 2009 in view of the diffi cult sector environment.
Th e Global Forwarding Business Unit generated revenue of € 7,891 million, down 25.5 % year-on-year (previous year: € 10,585 million). Th e decrease was 25.0 % aft er adjustment for exchange rate losses of € 45 million. As a result of the global recession, air and ocean freight rates fell to historic lows in the fi rst half of 2009. We were therefore able to purchase lower-cost transport and in turn limit the decrease in our gross profi t, which fell a total of 12.6 % year-on-year to € 1,943 million (previous year: € 2,222 million).
Although cumulative transport volumes for 2009 were below the prior-year level, volumes stabilised in the third and fourth quarters.
Air freight volumes (exports) in the reporting year were down 13.2 % on the prior year. In the fourth quarter, however, they registered an increase of 12.5 %, or 20 % more than in the third quarter of 2009, which had also seen an improvement. Air freight revenue for 2009 fell by 26.6 % year-on-year due to lower fuel surcharges and freight rates in the fi rst half of the year. In particular, results on trade lanes from northern Asia were weaker than in the previous year. Our business in the Middle East and Africa remained robust.
| € m | ||||||
|---|---|---|---|---|---|---|
| 2008 | 2009 | + / – % | Q 4 2008 | Q 4 2009 | + / – % | |
| Air freight | 5,388 | 3,957 | −26.6 | 1,341 | 1,209 | −9.8 |
| Ocean freight | 3,418 | 2,450 | −28.3 | 924 | 621 | −32.8 |
| Other | 1,779 | 1,484 | −16.6 | 479 | 378 | −21.1 |
| Total | 10,585 | 7,891 | −25.5 | 2,744 | 2,208 | −19.5 |
| thousands | |||||||
|---|---|---|---|---|---|---|---|
| 2008 | 2009 | + / – % | Q 4 2008 | Q 4 2009 | + / – % | ||
| Air freight | tonnes | 4,291 | 3,734 | −13.0 | 1,007 | 1,135 | 12.7 |
| of which exports | tonnes | 2,437 | 2,116 | −13.2 | 569 | 640 | 12.5 |
| Ocean freight | teu1) | 2,882 | 2,615 | −9.3 | 754 | 687 | –8.9 |
1) Twenty-foot equivalent units.
In ocean freight, we outperformed the market in a year-on-year comparison. Our volume declined 9.3 % compared with the 12 % to 13 % drop in the market. As a result of the rate decrease, our revenue dropped 28.3 % in the reporting year. In the Middle East, Africa and the South Asia Pacifi c region, our business trend was encouraging.
Th e industrial project business continued to perform well in the reporting period, eff ectively matching the strong level of the prior year.
Transport capacity was reduced substantially in the last few months of the year, which resulted in air and ocean freight transport services becoming signifi cantly more expensive. However, we have not yet been able to pass on all of these higher costs to our customers. Th e increase in freight rates, particularly for air freight, impacted our gross profi t margin in the fourth quarter. Profi t from operating activities (EBIT) fell year-onyear in line with the diffi cult economic situation.
Th e Freight Business Unit reported revenue of € 3,065 million in the year under review, down 17.4 % year-on-year from € 3,710 million. Adjusted for exchange rate losses of € 54 million, revenue shrank organically by 15.9 %. Gross profi t was € 846 million and thereby below the previous year (€ 955 million). Countries that rely extensively on the automotive sector registered especially sharp declines.
Th e prior-year fi gures for EBIT were adjusted because we no longer report the return on plan assets in connection with pension obligations as part of EBIT. It is now reported under the Group's net fi nance costs / net fi nancial income.
Division EBIT was € 191 million in the year as a whole (previous year: € 362 million) and € 23 million in the fourth quarter (previous year: € 73 million). Adjusted for restructuring costs (€ 81 million; fourth quarter: € 44 million), EBIT before non-recurring items was € 272 million in full-year 2009 (previous year: € 403 million) and € 67 million in the fourth quarter (previous year: € 114 million). We have continuously reduced operating and indirect costs by means of restructuring and cost reduction programmes. Moreover, our sales team was successful in generating new business.
Th anks to strict cost management, we maintained operating cash fl ow at a high level in 2009 (€ 528 million; previous year: € 630 million). In the fourth quarter, however, operating cash fl ow was impacted by restructuring costs.
Net working capital performed very well in 2009, amounting to € 271 million (previous year: € 514 million). Th is allowed us to compensate in part for the eff ect of the decline in earnings on operating cash fl ow.
In the fi rst quarter of 2009, we renamed the SUPPLY CHAIN / CORPORATE INFOR-MATION SOLUTIONS division in order to provide a consistent branding for all DHL units. It is now called the SUPPLY CHAIN division and houses the Supply Chain and Williams Lea business units.
We provide many industry sectors with customer-focused solutions that span the entire supply chain. By off ering warehousing, distribution, managed transport and value-added services, we ensure that products and information reach markets faster and more effi ciently, and create competitive advantage for our customers.
Our Supply Chain business is organised into four geographic regions. With local insight and global scale, we serve customers in more than 60 countries providing support for complex business transformations.
Our Williams Lea Business Unit is an expert in outsourcing corporate information management. Solutions include Offi ce Document Solutions, Marketing Solutions and Customer Correspondence Management. We off er these solutions for customers in the fi nancial, retail, consumer goods, pharmaceutical, publishing and public sectors. For example, we provide printing services for Wal-Mart in the USA, readying much of the company's circular advertising inserts for distribution in newspapers or as direct mailings. Th is four-year contract, signed in mid-2009, covers most of their circular print needs and related logistics services.
We have defi ned seven key strategic industry sectors for our Supply Chain business: Consumer, Retail, Technology, Life Science & Healthcare, Automotive, Energy and Airline Business Solutions. Each sector is managed by a dedicated sector head who is supported by a global team of experts that handle customer projects and develop sector-specifi c supply chain solutions.
Consumer and Retail are our highest revenue sectors and remain our priority growth areas. Here we manage customer supply chains from the source of supply to the retail shelves. Flexibility, reliability and cost effi ciency are key value drivers for our services in these sectors, which range from international inbound to warehouse and transport management to packaging and other value-added services.
Customers in the Technology sector require fast, fl exible and effi cient supply chains, and the demand for integrated product and service parts logistics is increasing. We help our customers improve their cost structures, especially in these diffi cult economic times. Our product portfolio ranges from inbound-to-manufacturing services to warehousing and distribution to integrated packaging, returns management and technical service solutions.
We see good business opportunities in the Life Science & Healthcare sector because the supply chains and business processes in many parts of the world are immature and the pressure to increase effi ciency in this industry sector whilst reducing costs is constantly on the rise. We developed, for example, a successful supply chain model for the British National Health Service (NHS) that aims to generate savings for the NHS of approximately € 1 billion over 10 years. Our services include the procurement and distribution of medical supplies in the UK.
Th e global fi nancial crisis hit the automotive industry harder than most. It is because of this that our Automotive sector team focuses primarily on adapting our services to the changed structural environment and on enhancing our unique services.
In the fast-growing Energy sector, we team up with other DHL units to provide integrated logistics solutions for both the build and run phases of major energy projects. For example, we operate one of the world's largest fourth-party logistics services in Oman, transporting cargo and water and co-ordinating the movement of about 40 land-based oil rigs a month. We anticipate a strong increase in demand for energy as well as more regulation in terms of sustainability, both of which will most likely drive demand for our services.
A new sector we are focusing on is Airline Business Solutions, which we defi ned based on our activities in the aviation industry with customers such as airlines, airport operators and aircraft manufacturers. In 2009, we won a new contract with British Airways to provide catering and logistics for short-haul fl ights from Heathrow Airport, a contract that positions us at the innovative forefront of this sector.
Glossary, page 224
Market volume: € 147 billion1)
| 1.4 % ups scs | |
|---|---|
| 1.6 % Penske Logistics | |
| 1.8 % Wincanton | |
| 1.8 % cat Logistics | |
| 2.1 % Kuehne + Nagel | |
| 2.4 % ceva 8.5 % dhl |
1) These figures cannot be compared with those of previous years because the institute compiling the data and the compiling method have changed. Source: Transport Intelligence.
Corporate responsibility, page 76 f.
DHL Supply Chain is the global market leader in contract logistics with a market share of 8.5 % (2008). In this highly fragmented market the top 10 players only make up about 23 % of the overall market, the size of which is estimated to be € 147 billion. Whilst we are the leading contract logistics provider in our largest markets, North America and Europe, we face strong competition from local suppliers in all regions, especially in the fast-growing Asia Pacifi c market. We are confi dent that we can leverage our global expertise and good relationships with multinational corporations in order to expand our business in these markets.
Our Williams Lea Business Unit leads the market in outsourcing information management. Th is market is also highly fragmented and consists largely of specialists off ering either a very limited set of services or occupying exclusive niches. Th anks to our broad range of international services and long-lasting customer relationships, we were able to build on our market leading position. In addition, we are leveraging DHL's excellent customer relationships to win new business for Williams Lea.
Our goal is to lead the supply chain industry in quality practices and methodologies that are recognised as providing the highest level of service and value to our customers. Our First Choice initiatives are the approach to achieving those goals.
We have developed globally consistent processes which underpin our eff orts to deliver standard, replicable solutions and service standards to our customers around the world. Th ese leading industry practices work to ensure that customer experience is at a consistent, high level.
Dedicated teams of project managers in each of our regions are trained in leading project management methodologies and employ a standard set of tools. Our process improvement advisors held approximately 1,300 workshops in 2009. Oft en working together with customers, action plans were developed to reduce costs and improve performance in these workshops, which were documented and put into practice throughout the year.
We have defi ned a number of key indicators which we use to measure the performance and quality of our warehouse and transport management operations including safety, productivity and inventory accuracy. Carbon effi ciency is one of those key performance indicators we measure at all sites globally on a monthly basis in an eff ort to achieve our goal of improving carbon effi ciency as part of our systematic climate protection programme, GoGreen. Carbon effi ciency projects have been implemented and tracked across the business, including energy-effi cient lighting in all regions, GoGreen offi ce implementation at 24 offi ces globally, and the Switch Off employee engagement campaign. We have focussed on road fl eet performance, for example in the UK, where we have introduced speed limits, aerodynamics, driver training and other programmes to reduce fuel consumption.
69
In the future we will continue to take advantage of our capabilities and competencies to build on our leading market position. Our goal is to achieve long-term profi table growth in all of our markets and to supply high-quality services. In order to improve our profi tability, we will continue the 5 to Th rive programme which was launched in early 2009 and which aims to reduce costs and enhance operational excellence.
We strive to build lasting partnerships with our customers, and we intend to position ourselves as a leading innovator in contract logistics. Th e end-to-end outsourcing solutions we off er for the NHS and British Airways are examples of how we will accomplish this.
We aim to develop and launch new products in each sector we focus on. We strive for operational excellence by continuously examining and improving our processes and by applying our best practice project management methodologies. We are always looking to improve the performance of our sales organisation and our operational platform. For instance, in 2009 we launched a rationalisation programme to reduce the number of IT systems and thereby lower maintenance, installation and training costs.
SUPPLY CHAIN division revenue for full-year 2009 declined by 8.8 % to € 12,507 million (previous year: € 13,718 million). Fourth-quarter revenue decreased by 8.8 % to € 3,223 million (previous year. € 3,535 million). Organically, the drop in revenue amounted to approximately 6 % for both the year as a whole and the fourth quarter. Th is fi gure excludes currency translation eff ects of €–399 million for the reporting year and €–103 million in the fourth quarter. We declined to renew, or exited, a number of underperforming contracts, which will help us to improve our EBIT margin. Around 21 % of the organic revenue decline was attributable to these measures to streamline the portfolio, which had little impact on EBIT.
Th e Supply Chain Business Unit generated revenue of € 11,302 million (previous year: € 12,469 million). Th is represented a reduction of 9.4 %, or 6.6 % on an organic basis. Most regions and sectors were impacted by lower customer volumes due to the economic downturn. In the Americas region, the largest impacts were seen in the Automotive, Technology, Home Delivery and Transport Management sectors. In Germany, revenue fell in the second half of 2009 following the Arcandor insolvency. By contrast, in the United Kingdom the revenue trend was positive due, above all, to growth in the Healthcare sector.
Total revenue: € 12,507 million
1) Sectors as reported in 2009.
Williams Lea revenue was € 1,206 million in 2009 (previous year: € 1,243 million). Th is represented a reduction of 3.0 %, which was due to exchange rate movements. Organically, revenue increased by 0.6 %. Reductions in revenue from volume decreases were mitigated by new business wins and the successful diversifi cation from the Financial Services sector.
Additional contracts with existing and new customers totalling € 1.1 billion in annualised revenue were signed by the Supply Chain Business Unit in 2009 despite the turbulent market conditions. Airline Business Solutions is a new sector we are focussing on following the contract won with British Airways. Th e contract renewal rate remained constant at above 90 % throughout the year.
Williams Lea also had a number of encouraging large new business wins including contracts with Wal-Mart in the USA and a major European electronics company, both sizeable existing DHL customers.
Th e prior-year EBIT fi gures were adjusted as we no longer report the return on plan assets in connection with pension obligations as part of EBIT. It is now reported under the Group's net fi nance costs / net fi nancial income.
Th e division reported a loss from operating activities (EBIT) of € 208 million for full-year 2009 (previous year: loss of € 920 million). Th e fourth quarter loss amounted to € 171 million (previous year: loss of € 1,069 million). In 2009 restructuring costs of € 87 million were incurred across the business units in the division, € 73 million of which in the fourth quarter alone. As a result, the loss from operating activities (EBIT) before non-recurring items amounted to € 121 million for full-year 2009 and € 98 million for the fourth quarter. Th e insolvency of Arcandor resulted in a charge of € 213 million for full-year 2009 (fourth quarter: € 48 million). EBIT before non-recurring items has not been adjusted for this charge. Further costs of € 97 million were incurred in Europe for employee termination, other liabilities and impairment charges relating to legacy properties in 2009. Th e year 2008 had been impacted by write-downs on the value of the Exel brand, on goodwill and by restructuring, which altogether totalled € 1,116 million. Return on sales improved to –1.7 % (previous year: –6.7 %). Th e diffi cult trading conditions were mitigated by restructuring initiatives and savings in indirect costs.
Strong operating cash fl ow of € 432 million (previous year: € 481 million) was generated, in part thanks to a reduction in working capital of € 98 million.
71
Our employees, working in over 220 countries and territories, represent the success of Deutsche Post DHL. As at 31 December 2009, we employed 424,686 full-time equivalents, 5.9 % fewer than in the previous year. Th e decrease was primarily due to our restructuring activities in the wake of the recession and resulted in a decline in staff costs of 7.4 % to € 17,021 million (previous year: € 18,389 million).
| 2008 | 2009 | + / – % | |
|---|---|---|---|
| At year-end | |||
| Headcount1) | 512,536 | 477,280 | –6.9 |
| Full-time equivalents2) | 451,515 | 424,686 | −5.9 |
| of which mail | 142,674 | 143,042 | 0.3 |
| express | 108,275 | 96,520 | −10.9 |
| global forwarding, freight | 41,499 | 38,859 | –6.4 |
| supply chain | 143,786 | 132,367 | –7.9 |
| Corporate Center / Other | 15,281 | 13,898 | −9.0 |
| of which Germany | 167,816 | 166,880 | –0.6 |
| Europe (excluding Germany) | 136,649 | 120,074 | –12.1 |
| Americas | 78,212 | 66,833 | −14.5 |
| Asia Pacifi c | 55,182 | 57,897 | 4.9 |
| Other regions | 13,656 | 13,002 | –4.8 |
| Average for the year | |||
| Headcount | 511,292 | 488,518 | –4.5 |
| of which hourly workers and salaried employees | 456,149 | 435,072 | –4.6 |
| Civil servants | 51,304 | 49,691 | −3.1 |
| Trainees | 3,839 | 3,755 | –2.2 |
| Full-time equivalents | 456,716 | 436,651 | –4.4 |
1) Including trainees. 2) Excluding trainees.
In the MAIL division, the number of employees grew by 0.3 % to 143,042. Th e increase was due to our employing additional temporary workers in order to reduce overtime amongst our core staff and the associated costs. Civil servants seconded to public authorities are now also included in the fi gure. Th ese two factors more than off set the decrease that resulted from additional productivity increases and the reorganisation of our retail outlet network.
Compared with the previous year, the number of employees in the EXPRESS division fell by 10.9 % to 96,520. Th is was primarily related to the restructuring of our US business. In addition, we were forced to reduce the number of employees as a consequence of the recession, particularly in Europe. In Asia, new employees joined the Group as a result of an acquisition in China.
1) Full-time equivalents as at 31 December.
In the GLOBAL FORWARDING, FREIGHT division, the number of full-time equivalents dropped by 6.4 % to 38,859. Th e SUPPLY CHAIN division improved its competitive position by reducing the number of employees by 7.9 % to 132,367.
In the Corporate Center / Other segment, staff levels continued to decline, dropping by 9.0 % to 13,898. Our cost reduction programme is beginning to take eff ect, particularly in the indirect functions such as IT and accounting.
Th e majority of our employees work in Germany, where the workforce has remained stable. In the rest of Europe, the Americas and the remaining regions, staff levels have declined because of the economy and the reorganisation of our US express business. In Asia, the number of employees has increased as a result of an acquisition.
Having dedicated, skilled employees is crucial to the success of Deutsche Post DHL. For this reason, we want to be regarded as a preferred employer wherever we operate. Our new human resources organisation, which we introduced in the middle of the year, will allow us to meet the Group's requirements even more eff ectively. We have defi ned fi ve cornerstones for our eff orts in human resources: to establish a leadership culture based on our principle of Respect and Results; to motivate our employees even more; to strengthen co-operation within the Group; to promote the growth of our business; and to increase the effi ciency of our human resources processes by fi nding simplifying and sustainable solutions.
On 30 October 2009, we reached agreement with the Verdi trade union on extensive measures to relieve our cost burden and secure the jobs of the approximately 130,000 employees of Deutsche Post AG. According to the agreement, there will be no pay increases in 2010 or 2011. We have also reduced paid breaks during night shift s, suspended payment of overtime premiums and agreed upon additional cost-cutting measures. In return, layoff s have been ruled out until the end of 2011, extending the previous agreement by another six months and securing jobs.
Th e health and safety of our employees is of great importance to us. To ensure this, we have put a Group-wide system into place, which includes, for example, our Corporate Health Award, with which we recognise exemplary health initiatives each year. In 2009 – as in 2008 – our corporate health management system was awarded the German Corporate Health Award by the European Commission and the BKK Bundesverband (German federal association of company health insurance funds). Th anks to our thorough preparations for a potential fl u pandemic, we have minimised the risk of our employees contracting the infl uenza A (H1N1) virus ("swine fl u"). At 6.9 %, the illness rate in Germany remains at a low level (previous year: 6.6 %).
We expanded our Group-wide network of occupational safety experts. Some 200 specialists in 61 countries are able to share their experiences and discuss proven methods and products via an intranet platform. In the year under review, the certifi cation of our occupational health and safety organisation's quality management system was renewed.
1) According to a survey of organisational units in Germany.
73
| 2008 | 20093) | |
|---|---|---|
| Number of workplace accidents2) | 11,987 | 12,954 |
| Accident rate (number of accidents per 1,000 employees per year) | 66 | 71 |
| Number of working days lost due to accidents (in calendar year) | 255,590 | 273,978 |
| Working days lost per accident | 21.3 | 21.2 |
| Number of workplace-related deaths4) | 2 | 1 |
1) Includes employees of Deutsche Post ag.
2) If at least one working day is lost; including accidents on the way to the workplace.
3) As at 5 February 2010, since accidents on the way to the workplace may also be reported after the balance sheet date.
4) Excluding accidents on the way to the workplace.
By training young people, we not only secure our future cadres of qualifi ed specialists, we also make a key contribution to society. In 2009, we took on approximately 1,600 trainees and college students in Germany. Our more than 20 traineeships range from courier, express and postal services to air traffi c specialists and studies at Duale Hochschulen (German universities of co-operative education). We hired nearly 70 % of eligible trainees, thus substantially exceeding the fi gure of 30 % of trainees in the classes of 2007 to 2009 stipulated in the training pact made with Verdi.
We foster particularly capable trainees in our top trainee programme. Th is guarantees the top 5 % of all our trainees in Germany (approximately 3,600) a permanent job aft er successfully completing the programme, which adds incentive for trainees to do their best.
Perspektive Gelb is our programme to give a chance to young people who might not otherwise be off ered a traineeship. In 2009, we took on nearly 90 % of the 212 participants in the class of 2008, and we off ered another 300 openings.
As part of our Group-wide Graduate Opportunities Worldwide (GrOW) programme, we hired 31 university graduates in 2009.
We take advantage of the latest technologies to attract and develop people. Our online career portal was again ranked amongst the top three in Germany and in Europe in the Top Employer Web Benchmark 2009 put out by Potentialpark Communications, a market research institute. Each year, we advertise more than 12,000 jobs online. Our online simulator – part of our Discover Logistics initiative – has received a lot of attention. A total of 8,500 participants from 122 countries have signed up for it. Th is initiative has enabled us to spark the interest of qualifi ed young talent in our sector.
Our online training platform mylearningworld.net is an important part of our education and development concept. 50,000 employees around the world are currently taking advantage of the more than 2,000 courses we off er. In 2009, we introduced language training to the platform. Th e DHL Freight Forwarding Academy is intended for staff members at the GLOBAL FORWARDING, FREIGHT division. Our employees completed more than 48,000 online courses in 2009 – three times as many as in the previous year. We plan to expand both of these opportunities in 2010.
a.60 Gender distribution in top management1)
1) Based on first and second-level executives.
Corporate strategy, page 25 f.
We make a special eff ort to foster qualifi ed and dedicated young talent in order to fi ll management positions from our own ranks. Our internal placement rate rose to 89.9 % in the reporting year, up from 86.9 % in the previous year. Th is rate is based on the grades B to F in our internal performance evaluation system. We off er selected young talent the chance to earn an MBA degree from external business schools alongside their employment. Our programmes, such as Women in Leadership and Inter national Mentoring Programme, foster young female talent in particular. In our International Business Leadership Programme, 100 executives worked on business strategies and enhanced their leadership qualities during the year under review.
We encourage our employees to gather experience in diff erent divisions. In this way, we intend to improve co-operation within the Group as stated in our corporate strategy. In 2009, 19.1 % of internal job placements involving top executives were crossdivisional. Our goal is for every second executive at the top two management levels to take advantage of this opportunity to expand their expertise by 2015.
Our new variable incentive and share matching scheme for executives creates substantial leverage for bolstering the performance of our organisation in the long term. It focuses incentives on Group performance, makes executive remuneration more performance based and honours outstanding achievements. We also provide our executives with company shares, thus enabling them to have a direct stake in the success of our company.
Th e motto of our corporate culture – Living Diversity – is anchored in the Group's code of conduct and is specifi cally promoted as part of diversity management. Our human resources policy has been repeatedly awarded the rating of TOTAL E-QUALITY by the association of the same name, which aims to ensure that equal opportunity for women and men is incorporated fi rmly into the business world. One of our goals is for people with a disability to enjoy equal treatment in terms of being able to take part in working life. At Deutsche Post AG, the average annual employment rate is 7.5 % of people with a disability (as at 25 January 2010), well above the national average in the German private sector.
Demographic change is putting the spotlight on older workers. Since we know that ageing populations will aff ect the Group's employment structure in many countries, we are currently identifying areas for potential action and initiating suitable measures. Another of our goals is to off er all employees a discrimination-free work environment, regardless of their sexual orientation or sexual identifi cation.
75
| Headcount | ||
|---|---|---|
| 2008 | 2009 | |
| State-regulated parental leave | 2,721 | 2,302 |
| Unpaid holiday for family reasons | 2,673 | 2,559 |
| Part-time employees | 71,934 | 67,0102) |
| Share of part-time employees (%) | 40.0 | 38.4 |
1) Includes employees of Deutsche Post ag.
2) Excluding employees in partial retirement in the release phase.
We aim to be the fi rst choice for our customers, our employees and our shareholders. To achieve this, we need to know what our employees think of us and where we can make improvements. In September, we conducted our third Group-wide employee opinion survey for this purpose. Th e response rate remained stable at 76 %. In light of the persistent economic crisis, we were pleased to fi nd that 68 % of all those surveyed were satisfi ed with their jobs (previous year: 65 %). Th e fi gures for our customer promise (70 %) and co-operation (72 %) were also high. We continue to see room for improvement in the areas of employee survey follow-up measures (45 %), communication (56 %) and strategy (56 %). Based on the results of the survey, we are developing measures to be implemented jointly by executives and staff .
Our executives also rely heavily on our "360-degree feedback". During the year under review, all senior-level executives allowed themselves to be rated anonymously by their superiors, colleagues and staff . We then established rules of conduct for treating each other with respect based on our principle of Respect and Results.
In the reporting period, Group employees again submitted many suggestions for streamlining workfl ows, reducing repair and energy costs, and improving environmental protection, the latter being once again a main focal point. As part of the Save Fuel Idea 2009 competition, employees came up with nearly 7,000 ideas for reducing fuel consumption. In 2010, we would like to integrate our idea management programme even more fi rmly in our global Group.
| Cost1) | € m | 12.5 | 12.0 |
|---|---|---|---|
| Benefi t | € m | 265.0 | 262.6 |
| Accepted suggestions for improvements | number | 162,471 | 178,303 |
| Suggestions for improvements | number | 218,711 | 226,993 |
| Savings per employee | € | 499.98 | 550.24 |
| 2008 | 2009 |
1) Based in part on estimates.
As the largest company in our industry, we take our environmental and social responsibility seriously. Th is is why we have chosen Living Responsibility as our motto, which embodies our many initiatives in the areas of environmental protection, disaster management and education that are designed to increase our employees' motivation and their identifi cation with the company as well as to make the Group more wellknown and respected and to improve its competitive position.
Our GoGreen programme was developed to establish a systematic approach to achieving our climate protection target. By 2020, we want to improve our carbon effi ciency by 30 % in comparison with 2007. Th is also includes emissions generated by the transport services of our sub-contractors, which make up approximately 80 % of the Group's total carbon footprint. We are the fi rst globally operating company in our sector to have set a measurable climate protection target. Improving carbon effi ciency will also minimise our dependency on limited fossil fuels, reduce cost risks associated with energy and fuels and prepare the Group for a future in which CO2 emissions will increasingly be subject to pricing.
We determine and calculate our carbon emissions based on the internationally recognised Greenhouse Gas Protocol (GHG Protocol), which distinguishes between direct emissions from sources owned or controlled by an entity (Scope 1) and indirect emissions resulting from the consumption of purchased energy (Scope 2).
In the year under review, our Scope 1 and Scope 2 carbon emissions were approximately 5.6 million tonnes (previous year, according to the Sustainability Report 2009, as at April 2009: approximately 6.7 million tonnes). Th ese emissions resulted from our direct use of roughly 520 million litres of fuel (diesel, petrol etc.) and some 1,300 million litres of kerosene. Furthermore, our facilities consumed approximately 3,500 million kilowatt hours of energy (electricity, natural gas etc.).
Th e decline in emissions was a product of CO2 reduction and effi ciency measures as well as the economic crisis. We also improved the quality of CO2 data, which we now record via our fi nancial system. Carbon emissions from sub-contracted transport services will be detailed in the next Corporate Responsibility Report, which will also include a statement on our carbon effi ciency in 2009.
1) Scopes 1 and 2.
77
GoGreen is basically the Group's umbrella programme for our environmental activi ties. Th e following examples show our progress in the reporting year in our fi ve key areas:
We take advantage of our logistics expertise and global presence to provide disaster relief together with strong partners. Th e partnership with the United Nations is an expression of our social commitment, which we support in numerous projects all over the world.
We work in close co-operation with the Offi ce for the Co-ordination of Humanitarian Aff airs (OCHA) to provide logistics support in the aft ermath of natural disasters. To save lives, relief goods must be distributed quickly and properly. Our global network of Disaster Response Teams can be deployed within 72 hours to deliver help at airports free of charge. Aft er the earthquake in Haiti in January 2010, our regional DHL Disaster Response Team was in place just two days aft er the disaster struck. In September 2009, we set up operations at airports in three diff erent locations in Asia following the tropical storms in the Philippines, the Samoan tsunami and the Indonesian earthquake. In November 2009, we provided logistics advice to the local authorities in El Salvador to set up relief operations logistics aft er Hurricane Ida.
Together with the United Nations Development Programme (UNDP), we operate the programme GARD (Get Airports Ready for Disaster) to prepare local authorities and airport staff for emergency situations. In the year under review, we successfully completed two pilot projects in Indonesia. Further training in high-risk areas of Asia and Latin America are to follow.
Since 2006, we have been supporting the United Nations Children's Fund (UNICEF) in relief projects in Peru, Kenya and India. Our partnership focuses on child survival with an emphasis on healthcare, early child development, diet and hygiene initiatives. By the end of 2009, Deutsche Post DHL had collected suffi cient donations equalling funding of 50,000 vaccinations, protecting children against deadly and preventable diseases such as tetanus, diphtheria and polio.
Education is the third focus area of our commitment to society. With our GoTeach programme, we are striving for improved equality and fair opportunities in education. As founding partner of Teach First Deutschland in Germany, we are promoting the education of less privileged children and young people. Beyond this partnership, we want to strengthen and enhance our educational commitment all over the world.
In 2009, Deutsche Post DHL was honoured with the German Sustainability Award in the category of Most Sustainable Strategy. In addition, our performance in terms of sustainability was reviewed by qualifi ed agencies. Sustainable management and visible attention to corporate responsibility are becoming more and more important as criteria for making investment decisions on fi nancial markets as well. According to oekom Research AG, the volume of retail funds oriented towards sustainability in 2009 was € 29 billion in Germany and even € 53 billion in Europe. Sustainable Asset Management gave us a rating of 91 out of 100 points (previous year: 65 points). We scored the highest in the categories of environment, corporate citizenship, social reporting and occupational health and safety. Th e average score for transport and logistics companies
79
was 61 points. Th e FTSE4Good Index confi rmed our company's membership. We are again listed in the Advanced Sustainability Performance Index Eurozone maintained by the French rating agency Vigeo and are also listed in the FTSE KLD Global Climate 100 Index along with other indices of the FTSE KLD index series. Th e Carbon Disclosure Project gave us a rating of 63 out of 100 points (previous year: 66 points).
In our third Sustainability Report published in April 2009, we provided supplementary information on sustainability and performance indicators that are not included in the Group Management Report. Th e report was again prepared on the basis of the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines in conjunction with the GRI Sector Supplement for the Logistics and Transport Sector. Based on our own assessment as stipulated by GRI, the Sustainability Report achieved a GRI level of B +, i.e., it fulfi ls key requirements and provides information that has been verifi ed by independent experts. Our next report – the Corporate Responsibility Report – will be published in the second quarter of 2010 and for the fi rst time will only be available online in electronic form.
In 2009, the Group centrally purchased goods and services having a total value of approximately € 7.7 billion (previous year: € 9.0 billion). Th is fi gure does not include transport services, which the divisions generally procure themselves. Corporate Procure ment is now increasingly involved in these purchases, however. Procurement expenditure has decreased in nearly all areas, with the exception of real estate due to the fact that the approximately 1,300 buildings sold to US investor Lone Star have been leased back.
Against the backdrop of the global recession, Procurement has intensifi ed its eff orts to reduce Group expenses even further. New guidelines for business trips and corporate hospitality have contributed to the success of these endeavours. As in previous years, we have bundled products and services and purchased all-inclusive packages from high-performance partners, thus obtaining better conditions both internationally and regionally.
We entered into a co-operation agreement with AT & T in the USA and in Puerto Rico for telephone and network services. Th e result is lower costs and improved service. In addition, we signed a fi ve-year agreement with T-Systems aimed at enhancing communication between our international data centres. Both of these agreements are part of a global programme to increase effi ciency in the area of telecommunications. Our savings should be more than € 190 million over the next fi ve years.
We also plan to combine certain facility management services – an approach that has been tested in Germany and Singapore. All types of services, from cleaning to security and maintenance, are being put out to tender and awarded in bundles. Pilot projects have shown that integrated facility management off ers signifi cant potential for cost savings.
dp-dhl.com/en/investors.html
Procurement is a centralised function in the Group. Th e heads of Global Sourcing and their 16 category managers work closely with regional procurement managers and report to Corporate Procurement. Th is allows us to pool our needs worldwide whilst satisfying the service and quality requirements of internal customers.
In order to streamline our regional organisation, we merged North and South America into a single procurement region, thus reducing the number of procurement regions to fi ve. Now the regional competence centres take more responsibility for strategic procurement and the relevant processes.
In the year under review, we opened the DHL Procurement Offi ce China in Shanghai. Th is offi ce follows the principle of best cost country sourcing, which aims for an optimum balance between cost, quality and risk. Th e new procurement offi ce will work closely together with all regions to better meet our international requirements.
Our procurement success depends on the skills and calibre of our employees. We therefore continued our Fit4Procurement programme in the reporting year, which put us amongst the 10 best companies to be nominated for the international Talents in Supply Chain Management prize. Th is prize is awarded by the European Business School and the Supply Chain Management Institute, both private institutions.
Together with these two organisations, we bestowed the ProLog Award for procurement and logistics in 2009 for the third time. Th is award is given for scientifi c research with signifi cant practical results. One of the research projects honoured was a study of the ecological aspects of procurement.
Our Green Team, made up of procurement managers from various regions and product groups, takes care of the environmental aspects of procurement. One of the achievements of the Green Team has been to introduce a globally standardised form that suppliers can use to furnish information on how well they meet environmental requirements. Entrenching ecological indicators into the strategic procurement process is also planned. Calculation of the total cost of ownership, for example, now also includes energy and carbon effi ciency. Th is is intended to help us gauge the maturity of our procurement markets in terms of environmental friendliness so that if necessary, we can switch to more environmentally friendly procurement sources.
In many cases, environmental aspects are already being taken into account in procurement. We are one of Deutsche Bahn's fi rst key accounts to use its new, climatefriendly Umwelt Plus Ticket (environment plus ticket) for all business trips. Th is means that 100 % of the electricity used comes from renewable energy sources. Th e agreement with Deutsche Bahn was concluded with retroactive eff ect as of 1 January 2009. Th erefore, the 74,319 tickets used in 2009 resulted in savings of around 2,134 tonnes of CO2 emissions.
Another example is the new, eco-friendly mail sorting machines we purchased from Siemens AG. Siemens will deliver 288 sorting machines for standard and compact letters and up to 97 sorting systems for fl ats and maxi fl ats by 2012. Th e new sorting machines for standard and compact letters alone will reduce our CO2 emissions by nearly 5,000 tonnes per year, and they also use 55 % less energy.
81
During the reporting year, we increased our use of IT applications to enable more effi cient procurement of goods and services. Previously, the GeT electronic ordering system was used mainly in Germany and the USA and to some extent in France, Mexico, Poland and Switzerland. Since 2009, this system has also been in use in Denmark, Finland, the Netherlands and Norway.
In addition, we have increased our use of eSourcing for procurement projects. eSourcing allows all major steps in the tender procedure to be performed electronically, including bidding auctions. Th is makes procurement processes more effi cient and transparent for internal customers. It also makes it easier to track and analyse procurement markets.
As a service provider, the Group does not engage in research and development activities in the strict sense, and therefore has no signifi cant expenses to report in this connection.
| Deutsche Post DHL | |||||
|---|---|---|---|---|---|
| Division | express | global forwarding, freight |
supply chain | ||
| Brand | Deutsche Post | dhl | dhl | dhl | dhl |
| Brand area | Mail • Communication Dialogue • Marketing • Press Services Philately• • Pension Service |
• Global Mail • Parcel Germany |
Express • | Global • Forwarding Freight• |
• Supply Chain |
| Sub-brand | • Williams Lea |
As a globally operating service company, well-managed brands are amongst the central elements of our strategy. In hotly contested markets, our brands contribute to the fi nancial success of the Group. High brand recognition and a good reputation make us more attractive to shareholders, employees, customers and suppliers.
In the fi rst half of 2009, we changed the name of the Group to Deutsche Post DHL as part of our Strategy 2015 and following the sale of Postbank. Th e new name underscores our strategy, which involves the two pillars of mail and logistics. Over the course of the year we repeatedly communicated our main customer promise: simplifying services and sustainable solutions.
Corporate strategy, page 25
Brand manuals give detailed descriptions of how Deutsche Post and DHL are positioned and how our brands support our strategy. Of key importance to our brand image is how customers experience their interactions with our approximately 500,000 employees worldwide. In order to make a good impression, we have provided our employees who have direct customer contact with high-quality corporate clothing and given our vehicles and buildings as well as our promotional and informational materials a uniform and memorable design. We have also implemented internal measures aimed at motivating our entire staff to be active brand ambassadors at all times.
DHL employees have had a multilingual internet platform since 2008. We plan to make this state-of-the-art, interactive approach available to customers and prospective customers in 2010 under the name of DHL Brand World. Deutsche Post launched a motivational platform – the Deutsche Post Brand Fan Club – to strengthen brand awareness amongst the workforce. It conveys the main brand messages to them via sporting events, group activities and an interactive portal.
Our brands face tough competition both domestically and internationally. Clear positioning and a lasting impression facilitate purchasing and investment decisions for existing and potential customers. Guided by market research, we invested some € 70 million in the year under review (previous year: € 80 million) in building our brands. Our print and online campaign for the DHL brand appeared in renowned international fi nancial publications. Deutsche Post's domestic brand campaign focused on service quality. Along with online, print and poster themes, a survey was conducted of approximately 34 million households in Germany, who were invited to comment on the quality of Deutsche Post's services. In addition to traditional advertising, we enhance our brand image by sponsoring various events, appearing at trade fairs, conducting press relations and implementing measures to support sales.
Our success is measurable: in 2009, consulting fi rm Semion Brand Broker calculated a brand value of € 12,614 million for Deutsche Post, putting us in sixth place in a ranking of the most valuable German brands. Factors analysed included fi nancial value, brand protection, brand image and brand strength. DHL appeared in a list of the 100 most valuable brands for the fi rst time in 2009. Market researcher Millward Brown computed a value of US \$ 9,719 million for the DHL brand, which put us in 68th place in the world rankings.
Opportunity and risk management is a key component of any successful business activity. Our aim is to identify both opportunities and risks at an early stage and to manage them such as to achieve a sustained increase in enterprise value. Our Groupwide opportunity and risk control system facilitates this. We systematically survey our managers all over the world to fi nd out how they rate future scenarios, and we evaluate this information. An integrated approval process ensures that the results fl ow into management control processes and that opportunities and risks are systematically communicated.
a.66 Opportunity and risk management process
Th e most important steps in the process are as follows:
2 Aggregate and report: Th e competent control units collect the results, evaluate them and review them for plausibility. If individual fi nancial eff ects overlap, they are noted in our database and accounted for in the subsequent aggregation. Aft er being approved by the department head, all results are passed on to the next level in the hierarchy. Th e aggregate and report step is complete when Corporate Controlling reports to the Group Board of Management on the signifi cant opportunities and risks as well as any overall impact each division might experience.
3 Overall strategy: Th e Group Board of Management determines which fundamental opportunities and risks the divisions are exposed to and how these can be managed successfully. Th e reports made by Corporate Controlling provide a regular basis of information for the overall management of opportunities and risks.
Deutsche Post DHL uses an internal accounting control system to ensure that Group accounting adheres to generally accepted accounting principles. Th is system is intended to make sure that statutory provisions are complied with and that both internal and external accounting provide a valid depiction of business processes in fi gures. All fi gures are to be entered and processed accurately and completely. Accounting mistakes are to be avoided in principle and signifi cant assessment errors uncovered promptly.
Th e control system design comprises organisational and technical measures that extend to all companies in the Group. Centrally standardised accounting guidelines govern the reconciliation of the single-entity fi nancial statements and ensure that international fi nancial reporting standards (IFRS) are applied in a uniform manner throughout the Group. All Group companies are required to use a standard chart of accounts. Oft en, accounting processes are pooled in a shared services centre in order to centralise and standardise them. Th e IFRS fi nancial statements of the separate Group companies are recorded in a standard, SAP-based system and then processed at a central location where one-step consolidation is performed. Other components of our control system include automatic plausibility reviews and system validations of the accounting data. In addition, manual checks are carried out regularly at a de-central level by those responsible locally (i. e., a CFO) and at a central level by Corporate Accounting, Taxes and Treasury at the Corporate Center. Beyond the aforementioned internal accounting control system and risk management structures, Corporate Internal Audit is an essential component of the Group's controlling and monitoring system. Using risk-oriented auditing procedures, Corporate Internal Audit examines the processes related to fi nancial reporting and reports its results to the Board of Management. Upstream and downstream checks and analyses of the reported data are performed under chronological aspects. If necessary, we call in outside experts, for instance, in the case of pension provisions. Finally, the Group's standardised process for preparing fi nancial statements using a centrally administered fi nancial statements calendar guarantees a structured and effi cient accounting process.
Th e risks set out in the following are those which we presently consider to have a signifi cant potential negative impact on our earnings, fi nancial position and assets and liabilities. Th ey are not necessarily the only risks to which the Group is exposed. Our business activities could also be adversely aff ected by risks of which we are currently unaware or which we do not yet consider to be material.
Risks associated with the general business environment primarily arise from the fact that both the Group and its subsidiaries provide some of their services in a regulated market. Our statutory exclusive licence was abolished in Germany on 1 January 2008. However, the Postgesetz (German postal act) has allowed exceptions enabling competitors to operate within the weight and price ceilings laid down in our exclusive licence from January 1998 onwards. By the end of the year, the regulatory authority (Bundesnetzagentur – German federal network agency) had issued licences to around 1,500 competitors, around 840 of which operate in the market.
On 7 November 2007, the regulatory authority announced a benchmark decision specifying the conditions that would apply from 2008 until the end of 2011 to regulation under the price-cap procedure for mail prices requiring approval. Th is stipulates the general rate of infl ation and the expected productivity growth rate for Deutsche Post AG as the key factors applicable to mail prices subject to approval. Prices have to be lowered if the infl ation rate in the reference period is less than the productivity growth rate specifi ed by the regulatory authority. Mail prices requiring approval will remain largely unchanged in 2010. Th e regulatory authority accepted an application from Deutsche Post AG to this eff ect on 17 November 2009.
Th e third EU Postal Directive came into force on 27 February 2008. Th e Directive requires most EU member states to open up their markets by 2011, although the nine most recent members plus Greece and Luxembourg have the option to defer the opening of their markets until 2013. Until then, the previous limits continue to apply across the EU, with reservable services restricted to a maximum of 50g or two-and-a-half times the standard letter price. It is now possible to plan with certainty for the future regarding the date by which all national monopolies in Europe must fall.
Whilst liberalisation of postal markets entails risks for Deutsche Post AG due to increased competition in Germany, it also opens up new opportunities in other European postal markets. In 2009, cross-border mail in Europe between Deutsche Post AG and 13 other western European postal operators was governed by the REIMS III agreement and with another nine Eastern European postal companies by the REIMS EAST agreement. REIMS IV came into force on 1 January 2010 as the successor to these two agreements.
Discussions continue regarding the extent to which postal services should be exempt from value added tax (VAT). An amendment to the Umsatzsteuergesetz (German value added tax act) currently in preparation will reduce the VAT exemption for Deutsche Post AG. A bill to this eff ect was adopted by the German cabinet on 16 December 2009 and is set to become law on 1 July 2010. Under the new rules, the VAT exemption will only apply to specifi c universal services pursuant to the EU Postal Directive that are not subject to individually negotiated agreements or provided on special terms (discounts etc.). Any enterprise that off ers some or all of these services nationwide in Germany will qualify for the VAT exemption.
Glossary, page 224
Th e German legislative process will have to take account of the European Court of Justice (ECJ) decision of 23 April 2009 that pertained to the VAT exemption for postal services in the United Kingdom. Europe's highest court ruled conclusively that universal postal services, which a company undertakes to provide, must be exempt from value added tax even in a liberalised postal market. According to the ECJ, the only exceptions to this are services rendered under individually negotiated conditions. Th e German bill has yet to be passed by the Bundestag and Bundesrat.
Concurring with Deutsche Post AG, the regulatory authority considers that the prices it approved are net prices not including VAT. VAT could therefore be added to the approved prices. However, it cannot be ruled out that the application of VAT would lead to a decrease in revenue and earnings.
At the European level, the scope of the VAT exemption for postal services is also the subject of infringement proceedings initiated against the Federal Republic of Germany by the European Commission on 10 April 2006. Th e Commission announced in its decision at the proceedings on 24 July 2007 that the VAT exemption for postal universal services provided by Deutsche Post AG was too broad and called on the German government to amend the applicable law. Germany responded to the European Commission at the proceedings that it considered the current VAT exemption to be in compliance with applicable law and that it would subject the German legal provisions regarding value added tax on postal services to another detailed review. Th e infringement proceedings have not been pursued to date in view of the aforementioned proceedings before the ECJ pertaining to the VAT exemption for postal services in the United Kingdom.
German tax authorities have announced their intention to qualify a VAT-exempt mail product retroactively as subject to VAT. We assume that amended tax assessments will be re-issued for all open tax periods. Th e VAT exemption for postal services is based on European law (postal services directive, VAT directive) and national German law (Postgesetz (postal act), Post-Universaldienstleistungsverordnung (postal universal service ordinance), Umsatzsteuergesetz (value added tax act)). Based on these laws, Deutsche Post AG classifi es its postal services either as VAT exempt or VAT liable. Th e German tax authorities have reviewed this assessment over the years and have not objected to it. We intend to take appropriate legal action against these amended tax assessments. Despite our view that the product's exemption complies with current European and German law, we cannot entirely exclude the possibility of additional tax payments.
Should the political or regulatory framework change, this could have considerable fi nancial consequences for the Group, particularly with respect to the mail business in Germany. Since this is basically a political decision, we can make no reliable estimation as to the likelihood of occurrence.
In addition to the regulatory environment, market and sector-specifi c conditions have a signifi cant eff ect on the business performance of the Group.
Th e demand for logistics services depends greatly on the global economy. In the year under review, revenue fell substantially on the previous year as shipment volumes dropped in all divisions due to the economic crisis. If the economic situation does not improve, this could have a considerable impact on our projected earnings. On the other hand, an economic upswing beyond the anticipated level could result in our earnings exceeding expectations. Due to uncertainty regarding further developments and the end of the economic crisis, the probability of occurrence of risk or opportunity for our Group cannot be specifi ed more precisely at the present time.
We are also exposed to risk as a result of customer insolvencies because the fi nancial strength of our customers is a key factor in determining the success of our business activities. In the reporting year, the insolvency of Arcandor AG in Germany had a severe impact on consolidated earnings. We do not anticipate any additional risk of this magnitude based on the current outlook. Our goal is to identify critical developments amongst our customers at an early stage and to ensure that our cost structure is fl exible enough to limit any potential fi nancial consequences.
We off er our products and services in a competitive market. In the mail and logistics business, customers are gained and retained by off ering quality at competitive prices. Th anks to our high quality and the savings generated in the year under review, we consider ourselves able to keep any potential risk to our projected earnings from competition at a fairly low level. As described above, a number of political and regulatory factors are additionally applicable to the MAIL division.
During the economic crisis, which endured the entire year under review, the Group focused greater attention on its core competencies and on organic growth. We want to grow profi tably and improve our competitive standing through optimum integration of our divisions and processes.
In the past, the MAIL division made a substantial contribution to consolidated earnings. Now, however, the division can increasingly expect to see sales volume declines in its German mail business based on the general economic slowdown, increased competition and continuing substitution of physical communication with electronic communication. Our corporate planning takes into account declining revenues in the Mail Communication Business Unit in Germany. We regard the risk of a signifi cant deviation from the projected fi gures as low. Moreover, we also see opportunities in digitalisation and are developing new electronic products for our mail business.
In the EXPRESS division, revenue dropped in all regions during the reporting year due to the recession. Th is eff ect was intensifi ed by our exit from the domestic US express business. Network, price and administrative structures had to be adapted to these circumstances. In addition, we are selling unprofi table units in Europe. Th e restructuring of the express business, which has been underway since the end of 2008, is aimed at strengthening the EBIT margin in Europe. At present, we believe that the expenditures budgeted for restructuring will suffi ce. We are furthermore looking for new possibilities to increase revenues and earnings in economically attractive markets.
Divisions, pages 48, 56, 62 and 68
In the GLOBAL FORWARDING, FREIGHT division, we agreed on fi xed transport rates with certain customers. Due to lower demand for transport services, freight carriers recently reduced transport capacities in order to keep prices high. When prices rise, margins shrink. Freight carriers additionally made a general price adjustment in the year under review. In this regard, we are subject to the risk that we will not be able to pass on higher prices to our customers in full. If and to what extent our profi t margin is endangered depends to a great extent on how the world economy will fare. Both upward and downward deviations from projections are possible.
In the SUPPLY CHAIN division, we enjoy close, long-term business relationships with our customers. Th is leads to a certain dependency on the fi nancial situation of our customers and the sector risks to which they are exposed. As mentioned above, the situation with Arcandor showed how seriously the insolvency of a major customer can impact our company fi nancially, although we do not expect exposure on such a scale going forward. On the whole, we are optimistic that cost pressures will persuade companies to increasingly outsource key logistics processes and that we will be able to benefi t from this, even in a time of crisis.
Reliability and speed are key indicators of the quality of our logistics services. Quality can be compromised by any problems that may arise in our complex operating infrastructure with regard to posting and collection, sorting, transport, warehousing or delivery. We want to prevent interruptions in operations by taking preventive measures. Th ese include a detailed emergency plan with fi re prevention measures and backup operations in the event of malfunctions or damage. Moreover, since we render our services de-centrally in more than 200 countries, we regard the probability that the Group will experience signifi cant downtime as low. Our insurance policies reduce potential fi nancial impacts.
As early as 2005 we began formulating pandemic emergency plans and setting up an international crisis team. We want to minimise the risk of infection for our employees in the event of a pandemic and maintain our business operations.
Under our First Choice programme, we are rigorously aligning internal processes to customer needs. At the same time, we are also aiming to improve cost effi ciency, which in some instances requires capital expenditure. Investment decisions on amounts in excess of € 10 million are made by Board of Management committees. A lower threshold of € 5 million applies to capital expenditure in Global Business Services and the Corporate Center. Th e Board of Management members are regularly informed of investment decisions so that they can identify signifi cant risk early and take any necessary countermeasures.
As a service provider, we do not conduct research and development in the narrower sense. Th ere are therefore no material risks to report in this area.
89
We have taken all the necessary steps to be able to eff ectively identify and counter IT risks. Th ese risks are monitored across the Group by Risk Management, IT Audit, Data Protection and Corporate Security. Th e Information Security Committee provides for secure IT in the divisions. At a minimum, we aim to meet the ISO 27002 industrial safety standard.
Our logistics and service processes can only function smoothly if the necessary IT is available. Complete failure of one or more systems could cause a signifi cant disruption to operational processes and lead to loss of data. For this reason we want to avoid malfunctions entirely.
We take the following measures to reduce the probability of IT risk materialising: we have two main data centres, in the Czech Republic and Malaysia. Additional processing capacity is provided by T-Systems, a service provider with which we have agreed on standards for outsourced services and which has likewise distributed its capacity amongst several data centres. In addition, we have established emergency procedures throughout the Group for business-critical applications.
We continuously improve our security mechanisms to protect against unauthorised access to, and manipulation of, data, and this includes mobile devices. Persons with access authorisation are required to encrypt critical data as a standard procedure and to change passwords every eighty to ninety days. Critical data are secured by means of back-ups, either on a case-by-case basis or in real time in several data centres depending on relevance.
Our services require the use of frequently updated and newly developed soft ware. Th is involves not only a general cost risk in the case of complex IT systems in particular, but also the risk of development delays and functional defi ciencies when putting the new soft ware into operation. Th is risk is reduced by an effi cient project management system spanning the entire process from soft ware planning and design to implementation.
Th e precautions we take lower the probability of occurrence of IT risks having grave consequences. We are prepared to minimise the impact of any risk that does materialise such that customers are not, or only minimally, aff ected. However, an element of risk involving medium to high fi nancial consequences cannot be fully ruled out.
Our Group-wide risk management system also monitors environmental policy developments. For example, the EU has decided to introduce an emissions trading system for air traffi c starting in 2012. Th e fi nancial implications of this will depend heavily on the results of the EU surveys on emissions for the 2004 – 2006 base period. Th ese data will determine the quantities of free emissions rights that will be allocated to the airlines we use and the extent to which we will have to purchase emissions rights at auction to meet our needs. In addition, it is not yet possible to estimate the prices at which emissions rights will trade on the market. However, we believe that the Group is well equipped to limit any fi nancial risk thanks to our GoGreen programme. We fi nd the risk of deviation from projections to be fairly low.
Our employees are critical to our future success. For this reason, we want to become the most popular employer in our sector. In general, there is the risk that we will not fi nd the right employees for the right positions at the right time. Moreover, we have to compete for qualifi ed international executives.
We monitor this risk using internal and external measurement parameters. US consulting fi rm Universum, for instance, regularly surveys 120,000 students in 26 countries to fi nd out who the most popular employers are. DHL is the only logistics company to rank in the top fi ft y. Internally, we measure employee satisfaction on an annual basis in a survey of all Group employees. Th e survey fi ndings indicate that the dedication of our employees has steadily improved over recent years. Given the fact that 2009 was a recession year, these fi ndings were particularly encouraging.
We want to hire qualifi ed employees, use them to their full potential and foster loyalty amongst them. Th us, vocational training in Germany will remain a key investment in the future for us, even in economically diffi cult times and especially in light of demographic change. With regard to employee motivation, managers who are familiar with the challenges of our sector and deal with their staff based on the principle of Respect and Results play an important role. We support our managers with a number of programmes, pay them fairly for their work, including providing performance-based incentives, and off er them career opportunities in their home countries and abroad. By doing this, we limit the risk of losing expertise and customer relationships to employee turnover.
Although we fi nd the fi nancial impact of these risks to be moderate, we see the probability of occurrence as low thanks to the measures we have implemented. Th is risk has declined from the previous years based on the economic situation alone.
On 14 January 2009, Deutsche Post AG and Deutsche Bank AG agreed to restructure the transaction to sell the shares in Deutsche Postbank AG held by Deutsche Post AG. Th e contract now comprises three tranches.
Th e fi rst tranche provided for the sale of 50 million Postbank shares via contribution as a non-cash capital increase in return for 50 million new shares in Deutsche Bank AG and via the rendering of payments and non-cash benefi ts on the part of Deutsche Bank AG in connection with hedging transactions. Th ereby any claim to payment of a purchase price for the shares was waived. Th e fi rst tranche was carried out in the period from April to July 2009. Mechanisms designed to avoid possible market disturbances were applied to the sale of the Deutsche Bank shares.
As at 31 December 2009, Deutsche Post AG was still in possession of 86,417,432 Postbank shares. It will sell an additional 60 million Postbank shares in exchange for a mandatory exchangeable bond with a cash value at the time of closing of € 2,568 million and a 4 % accrued interest per year that will mature in three years (second tranche). Th e bond was underwritten by Deutsche Bank AG and will be exchanged for 60 million Postbank shares on 25 February 2012.
For the third tranche, Deutsche Post AG and Deutsche Bank AG have agreed on put and call options, which are in place for transferring the remaining 26,417,432 Postbank shares. Th e exercise periods are set between the third and fourth year aft er the closing on 25 February 2009. Th e derivatives agreed for the second and third tranches could lead to considerable volatility on the balance sheet. Th is risk is explained in greater detail in the Notes, where you will also fi nd information on other balance sheet and fi nancial risks.
Information on legal risk is provided in the Notes.
Our insurance strategy separates insurable risks into two groups. Th e fi rst group comprises risks with a high probability of occurrence and low individual cost. Th ese risks are insured via what is known as a captive, an insurance company owned by the Group that is able to insure such risks at a lower cost than commercial insurers. Th e majority of our insurance expenditure is incurred for this risk group, which along with lower costs off ers other advantages. Costs remain stable as the Group is less aff ected by changes in the availability and price of outside insurance. We receive reliable data on the basis of which we can analyse risk with a high probability of occurrence and low individual cost. We can then set minimum standards and targets for such risk. Th e second group consists of risks that have a low probability of occurrence but could entail high losses, such as air transport risks. Th ese risks are transferred to commercial insurers.
We saved nearly € 97 million in 2009 using this fi nancing and insurance strategy. At the annual World Captive Forum, the Group received the Award of Excellence for its global captive insurance strategy.
Audits are currently underway at DHL Express (USA) and Airborne Inc. in line with the unclaimed property laws in the United States. Under these laws, unclaimed property must either be returned to its rightful owner or the home country of the most recent owner or, if this is not known, the country in which the company is domiciled. Th e probability of a signifi cant fi nancial impact on the Group is fairly low.
At present, we see the main risk for our business performance in the economic and regulatory environment, particularly the future general economic trend and changed conditions on the German mail market. Based on the Group's early warning system and in the estimation of the Board of Management of the Group, in the past fi nancial year there were no identifi able risks for the Group which, individually or collectively, cast doubt upon the Group's ability to continue as a going concern, nor are any such risks apparent in the foreseeable future.
Note 53
Note 50
Th ere were no reportable events aft er the balance sheet date.
At the start of 2010, the global economy fi nds itself in a period of recovery. However, the rebound is still being bolstered by extremely expansive monetary policies with low interest rates and extensive government initiatives. For this reason, the upward trend cannot yet be said to be self-sustaining and it is possible that the economic recovery could soon lose momentum. Nevertheless, economic growth forecasts are cautiously optimistic. Th e International Monetary Fund (IMF) is predicting an increase of 3.9 % in global economic output in 2010. Against this backdrop, global trade can be expected to see moderate expansion (IMF: 5.8 %, OECD: 6.0 %).
| a.67 Global economy: growth forecasts | |||||
|---|---|---|---|---|---|
| -- | -- | -- | --------------------------------------- | -- | -- |
| % | ||
|---|---|---|
| 2008 | 2009 | |
| Global trade volume | −12.3 | 5.8 |
| Real gross domestic product | ||
| Global | −0.8 | 3.9 |
| Industrial nations | −3.2 | 2.1 |
| Emerging markets | 2.1 | 6.0 |
| Central and Eastern Europe | −4.3 | 2.0 |
| Former cis countries | −7.5 | 3.8 |
| Emerging markets in Asia | 6.5 | 8.4 |
| Middle East | 2.2 | 4.5 |
| Latin America and the Caribbean | −2.3 | 3.7 |
| Africa | 1.9 | 4.3 |
Source: International Monetary Fund (imf) world economic outlook, October 2009, update January 2010.
In the United States, the economy should recover but private consumption is likely to remain weak. Forecasts call for solid GDP growth overall (IMF: 2.7 %, OECD: 2.5 %, Postbank Research: 2.3 %).
Th e Japanese economy is expected to experience a sharp growth in exports as it benefi ts from the upswing in global trade. Th e country should again register solid GDP growth (IMF: 1.7 %, OECD: 1.8 %, Postbank Research: 2.0 %). In China, growth will continue to accelerate but will not fully reach the record levels of past years (IMF: 10.0 %).
Th e euro zone is thought to be on the road to recovery, with the economy stimulated by exports and gross fi xed capital formation. However, the forces driving the economy could lose momentum if government economic initiatives are scaled back. Growth is forecasted to remain low (ECB: 0.8 %, Postbank Research: 1.7 %).
Th e export-based German economy is likely to benefi t from the global upturn, with exports expected to increase sharply and investment in machinery and equipment expected to rise from their current low levels. Moreover, the full impact of the government infrastructure programme should be felt eventually. However, private consumption is not expected to provide stimulus given that unemployment will likely keep rising. GDP growth is projected to be higher than in the euro zone (Th e German Council of Economic Experts: 1.6 %, Postbank Research: 2.2 %).
It is unlikely that the price of oil will reach the lows of 2009 or the highs of 2008. We estimate that the average price of oil for the year will be higher than in 2009.
For the time being, it is expected that the US Federal Reserve will leave its key interest rate at the current extremely low level. Should the economy recover, interest rates could rise slightly starting this summer. Th e ECB will presumably leave its key interest rate at 1 % for a longer period. Later in the year, it could tighten its monetary policy depending on the economic trend.
Capital market interest rates are likely to rise on the whole. However, yield spreads are expected to remain tight assuming that price stability remains high.
Demand for mail in Germany depends on the economic climate and the extent to which electronic media continue to take the place of the physical letter. We expect the market for mail communication to continue shrinking whilst demand for communication in general continues to rise. Our aim is to take advantage of our expertise in physical communications to off er competent electronic communications and generate new business. We have also prepared ourselves for continued, intense competition.
Th e German advertising market likewise takes its cue from the economy. According to forecasts by the Zentralverband der deutschen Werbewirtschaft (German Advertising Federation), the market will shrink in 2010. Th e trend towards targeted advertising and combinations with internet off ers is likely to continue, with companies increasingly resorting to the more economical forms of advertising that we off er. We intend to consolidate our position in the liberalised market for paper-based advertising and to expand our share in the advertising market as a whole.
Th e press services market is likely to keep contracting slightly because of the increasing use of new media. Th e economic trend will aff ect subscriber numbers and average weights, thus impacting our future revenue.
Th e economic trend will also aff ect the international mail market. Th is is an area in which we want to tap into new business fi elds related to our core competency, mail.
In the parcel market, two trends will continue: in the business customer segment, pressure on traditional mail-order companies will persist with shipment volumes expected to drop, whilst the private customer segment will benefi t from e-commerce, an area in which we intend to expand our position.
Th e international express market is expected to increase by 0.5 % to 1.5 % in 2010 (Datamonitor Consulting, August 2009). Over the medium term, experts are predicting slight growth of between 0.1 % and 0.5 % for Europe, and stronger growth of between 1.5 % and 2.0 % within Asia. In Europe and the United States, private demand is still quite slow, which in turn is depressing the export activities of Asian countries. On the whole, however, we are confi dent that we will be able to leverage market growth opportunities.
Th e same applies to our earnings performance. Th e savings realised in the reporting year together with a rigid focus on costs will make a crucial contribution to continued improvement in our earnings, even if market conditions remain diffi cult. In such case, our programmes for increasing effi ciency and quality and streamlining our portfolio will kick in. We are the market leader, and we are well-prepared to defend this position and to strengthen it further.
Following the sharp drop in ocean and air freight volumes at the start of 2009, the market began recovering in the fourth quarter and we are gaining market share. In 2010, we expect the market to continue picking up slightly. Given that air and ocean freight capacity has been reduced considerably in recent months, we anticipate sharp increases in procurement and sales prices for transport services.
Based on economic fundamentals, we expect to see growth in intra-Asian traffi c and on trade lanes between Asia, the Middle East and Africa as well as between Asia and Latin America. As the market leader, we will participate in this growth by investing in infrastructure and innovation.
During the economically challenging year of 2009, we convinced small and medium-sized businesses in particular of our competence as a reliable logistics service provider. Th is enabled us to keep the impact of the recession in check and gain market share. We intend to build on this success in the coming year and make our portfolio of transport products even more attractive to this target group as well as our other customers. We also plan to enhance our product off ering for certain industry sectors in 2010, particularly for the fashion, oil and energy, perishable goods transport, pharmaceuticals and technology sectors.
Based on suggestions by customers, business partners and employees, we have introduced a uniform "scorecard" for our branches. Now all teams have direct access to information showing their contribution to the company's overall performance as well as potential areas of improvement. We plan to implement this system in all branches of the Global Forwarding Business Unit by the end of 2010.
Consistent with leading economic research institutes, we are projecting a moderate upturn in global economic output for the coming year, driven by rising consumer spending and an improved investment climate. Th is should also result in a slight upward trend in the contract logistics market.
In our main markets of Europe and North America, we anticipate growth in the low single digits, whereas in the Asian and Latin American markets we think it is likely to be in the high single digits. We intend to foster business growth in all regions through targeted sales, marketing and communications initiatives.
However, the market for contract logistics is infl uenced by the economy as a whole, and should economic recovery be delayed, this would aff ect our business accordingly.
95
We will be continuing our successful 5 to Th rive programme to optimise our operations further. We are also holding workshops together with our customers, which have proven eff ective and are therefore being extended. We want to improve our services on an ongoing basis. Th is is our highest priority.
At the same time, we want to improve the success rate of our activities as well as the earnings power of our new business. Accordingly, we plan to reinforce the expertise, performance and proactive work ethic of our sales team.
In product development, our sector teams are working on joint services that will be even easier to standardise.
At Williams Lea, we expect the business to continue experiencing double-digit growth, driven by our unique product off ering and by increasingly tapping into our broad DHL customer base.
At the start of 2010, the moderate recovery trend seen in the second half of 2009 continued. For planning and budgeting purposes, we have fi gured in a modest recovery in overall trade volumes in 2010. However, uncertainty remains with regard to the extent and durability of this recovery.
Against this backdrop, we expect full-year consolidated EBIT before non-recurring items to reach € 1.6 billion to € 1.9 billion in 2010. Th e MAIL division is likely to make up around € 1.0 billion to € 1.2 billion of this. Compared with the previous year, we expect a strong improvement in earnings to between € 1.0 billion and € 1.1 billion in the DHL divisions. Th e Corporate Center / Other segment should come in just below the prior year with a loss of around € 0.4 billion. Given that 2009 saw high non-recurring expenses for restructuring the express business, full-year 2010 is likely to see a solid improvement in consolidated EBIT.
We will maintain our conservative fi nancial policy in 2010, raising our capital expenditure to approximately € 1.4 billion aft er having reduced it in 2009 to just under € 1.2 billion. Following our corporate strategy, we are focusing on organic growth. We anticipate only a few small acquisitions in 2010 as in the previous year. Planned restructuring measures taken in the previous year on the order of € 1 billion will reduce operating cash fl ow in 2010. Consolidated net profi t is expected to continue to improve in 2010 in line with our operating business.
Provided that the global economy continues to recover, the positive trend in our earnings that we are anticipating for 2010 is likely to continue into 2011. Th e cost reduction measures initiated in the MAIL division are expected to stabilise EBIT even if mail volumes continue to lose out to electronic means of communication. We expect EBIT to improve in the DHL divisions as volumes continue to recover.
Starting in 2010, the mark-to-market measurement now required in accordance with IFRS for all fi nancial instruments associated with the Postbank transaction results in a positive – albeit non-cash – eff ect on net fi nance cost / net fi nancial income. As the year progresses, this eff ect – as already in the previous year for some of these instruments – will be reviewed and, if necessary, adjusted at the end of each quarter based on the trend in Postbank's fair value.
In the EXPRESS division, we plan to start reorganising our central functions for the Europe region in 2010. We will also be combining our various climate protection activities into the Corporate Public Policy and Responsibility Department to allow us to operate even more effi ciently in this key area.
Although our liquidity position will decline in 2010 due to restructuring expenditure, it will remain strong. Th e Group is currently developing a comprehensive fi nance strategy that will take account of our credit rating, gearing ratio and future liquidity, amongst other things.
Since all forecasts are calling for cautious optimism, we have decided, contrary to our previous planning, to step up capital expenditure to approximately € 1.4 billion in 2010. Th e majority of this will be allocated to property, plant and equipment and to the MAIL, EXPRESS and SUPPLY CHAIN division. In the named divisions more funds will be made available for property, plant and equipment and intangible assets.
Funds apportioned to the MAIL division will be considerably higher than in the previous year and will be earmarked predominantly for the domestic mail and parcel business. We want to continue the investments started in the year under review and equip additional mail centres with sorting machines for standard and compact letters. In addition, we plan to purchase equipment for processing fl at mail more effi ciently. We also want to set up an internet platform for sending letters, update our IT systems in the Parcel Germany Business Unit and continue restructuring our network of retail outlets.
In the EXPRESS division, capex will be higher than in the reporting year. In 2010, we will again concentrate on maintaining and modernising our aircraft fl eet as prescribed by law. We also plan to inject funds into our hubs, gateways and terminals, including those in Leipzig and northern Asia. Capital expenditure will once again focus on the regions of Europe, the Americas and Asia Pacifi c.
In the GLOBAL FORWARDING, FREIGHT division, we plan to maintain capital expenditure at approximately the previous year's level. In the Global Forwarding Business Unit, we plan to put competence centres into operation, particularly for the pharmaceuticals industry, and invest in systems to improve the transparency of shipment processes. In the Freight Business Unit, we want to invest in our branch network, in IT and in transport equipment. Th ese investments will focus primarily on Germany, Scandinavia and the Middle East.
In the SUPPLY CHAIN division, we plan to increase capital expenditure somewhat. Th e majority of investments will be made in the Supply Chain Business Unit, where we will be developing customised solutions for establishing and expanding business with new and existing customers in all sectors, with a focus on the United Kingdom and the Americas. In the Williams Lea Business Unit, we will invest primarily in Germany. We plan to implement customer-specifi c solutions in the printing services and document business.
We also intend to increase cross-divisional investments in 2010. As in the previous year, capital expenditure will focus on vehicles and IT. Moreover, we want to promote new environmental technologies as part of our GoGreen climate protection programme.
Glossary, page 224
Increased electronic procurement
At Deutsche Post DHL, opportunity management is supported by the opportunity and risk controlling processes we have implemented throughout the Group. Th e way in which this process is organised is illustrated in the Risk Report.
Over the coming year, we aim to increase our use of IT applications capable of making the procurement of goods and services more effi cient. Our GeT electronic procurement system is to be extended to users in additional European countries. We also want
We see signifi cant opportunities in continuing to develop our markets as well as in our strategic positioning. We want to expand our services, improve our processes and take greater advantage of internal synergies. We also want to devote more attention to meeting the needs of our customers whilst improving our cost structure. Our idea management programme is expected to provide additional stimulus.
In connection with our corporate strategy, we have outlined the four main factors that infl uence our business. Th ese factors provide the following opportunities:
Globalisation means that the growth of the logistics industry will continue to outpace the growth of national economies. Since we operate all over the world, we will have the opportunity to share in this growth, especially in rapidly growing regions such as Asia, where we are better represented than our competition.
Outsourcing logistics services is becoming increasingly popular with companies, which are asking for integrated solutions at every link in the supply chain. As the global market leader in contract logistics, we are in a better position than most to benefi t from this trend.
Online communication and e-business are creating demand for the transport of documents and goods. Th is results in growth opportunities for us.
Environmental awareness on the part of customers brings opportunities for additional, above-average growth. Our customers want to reduce their carbon emissions permanently, which is why they are increasingly requesting energy-effi cient transport and climate-neutral products. We lead our sector in this area, having been the fi rst logistics company to off er our customers carbon-neutral mail, parcel and express products plus air and ocean freight transport.
We are positioned to take advantage of all types of growth, whether global, regional, cross-sector or industry specifi c. Moreover, a key component of our corporate strategy is our promise to off er customers services that will make their lives easier and have lasting value. Th e following Group-wide initiatives are aimed at securing our organic growth in the coming years:
Our First Choice programme is geared towards improving our processes and aligning our services even more closely than before to the needs of our customers. Page 83 f.
Group Management Report Further Developments and Outlook
Opportunities
We see an opportunity here to increase customer satisfaction and foster greater loyalty amongst them.
Our new DSI unit pools the innovative activities within DHL with an eye towards developing new solutions using existing sector expertise. Here, we see an opportunity to make better use of our resources.
Sector Management, which is also new, gives us the opportunity to meet specifi c customer demands better in certain sectors and thus create additional synergies.
Our innovative capacity assures our success. A particularly rich source of ideas for new products and improved processes are our employees. Th anks to their input, we have achieved considerable cost savings in past years, and we intend to continue doing so in the future.
In the MAIL division, we are continuously optimising the costs for our transport and delivery network and making cost structures more fl exible, which allow us to respond faster to changes in volumes. In addition, starting in 2010 we will begin off ering the letter on the internet – a binding, confi dential and reliable form of written electronic communication. Our intention is to win the interest of key accounts, and we are certain that we will be able to launch this product successfully.
Our EXPRESS division is directing its attention to its high-yield core business now that the US business has been restructured. Th e division's portfolio will be further streamlined through planned sales of European parcel services. Strict cost controls support the fi nancial targets we have set. We are therefore well equipped to improve our earnings situation, especially once the economic crisis has passed.
In the GLOBAL FORWARDING, FREIGHT division, we are continuing to improve our modular service portfolio by off ering more fl exible combinations and sustainable solutions for customers. We see this as an opportunity to raise productivity, increase customer satisfaction, strictly limit costs and kick off new sales activities.
Our SUPPLY CHAIN division will continue to benefi t from companies' willingness to outsource logistics services given the cost pressures that still persist everywhere. We will use our resources and our expertise to keep growing profi tably and to provide our customers with high-quality services. Williams Lea won new contracts in the year under review, which will not only sharpen its profi le, but also attest to the capability of the business unit with regard to potential new customers and thus paves the way for gaining additional long-term outsourcing contracts with key clients.
Any internet sites referred to in the Group Management Report do not form part of the report.
This Annual Report contains forward-looking statements that relate to the business, fi nancial performance and results of operations of Deutsche Post ag. Forward-looking statements are not historical facts and may be identifi ed by words such as "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets" and similar expressions. As these statements are based on current plans, estimates and projections, they are subject to risks and uncertainties that could cause actual results to be materially different from the future development, performance or results expressly or implicitly assumed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as at the date of this presentation. Deutsche Post ag does not intend or assume any obligation to update these forward-looking statements to refl ect events or circumstances after the date of this Annual Report.
Our GoGreen programme was developed to establish a systematic approach to achieving our climate protection target. By 2020, we want to improve our carbon efficiency by 30 % over 2007 levels through efficient transport, optimised planning as well as the use of alternative energy sources and innovative technologies. This is how we do our part to reduce not only our carbon emissions but also our energy costs and, in turn, make a positive contribution to the environment. All of this makes us and our customers more competitive in the long term.
Our aim: For every letter mailed, every container shipped and every square metre of space used, the Group aims to improve its carbon efficiency by 30 % over 2007 levels by 2020.
Our approach: We plan to hit our interim target of a 10 % improvement in carbon effi ciency by 2012.
More information is available at www.dp-dhl.com / en / responsibility.html
| REPORT OF THE SUPERVISORY BOARD | 101 | ||
|---|---|---|---|
| 101 | |||
| SUPERVISORY BOARD | 105 | ||
| 105 Members of the Supervisory Board Committees |
105 105 |
||
| BOARD OF MANAGEMENT | 106 | ||
| 106 | |||
| MANDATES HELD BY THE BOARD OF MANAGEMENT | 108 | ||
| 108 | |||
| MANDATES HELD BY THE SUPERVISORY BOARD | 109 | ||
| 109 | |||
| CORPORATE GOVERNANCE REPORT | 110 | ||
| 110 Remuneration Report |
113 |
Wulf von Schimmelmann, Chairman
As part of the Group's new Strategy 2015, Deutsche Post DHL has set clear goals for itself: to remain Die Post für Deutschland (Th e Postal Service for Germany) and become Th e Logistics Company for the World. To achieve these goals, we intend to intensify our focus on customers, employees and investors, and we have set ambitious growth and profi tability targets for 2015.
Despite this period of economic crisis, the Group succeeded in shoring up liquidity and stabilising earnings in 2009 thanks to strict cost management.
In addition, we implemented the strategic initiatives decided on in autumn 2008 and exited both the fi eld of fi nancial services and the domestic express business in the US.
In 2009, the Supervisory Board devoted close attention to Strategy 2015. We also held detailed discussions on and monitored the Group's business performance, particularly with respect to the impact of the economic crisis. Other important topics included the restructuring of the US express business and the insolvency of Arcandor, a major customer in Germany.
All signifi cant decisions were discussed in detail with the Board of Management, which reported to us regularly on the company's direction and focus, strategic initiatives and all key issues related to planning and implementation. It also informed us in a timely and comprehensive manner about business performance, key business transactions and projects in the divisions as well as the company's risk exposure and risk management. Th e Board of Management also provided the chairman of the Supervisory Board with continuous updates between Supervisory Board meetings.
Measures requiring the consent of the Supervisory Board were discussed in even greater depth. Such measures were deliberated in advance in the relevant committees, and the results of the deliberations were presented by the respective committee chairs at the Supervisory Board meetings.
Five meetings were held in the fi rst half of the year and two in the second half. All members participated in at least half of the meetings.
In a special meeting held on 14 January 2009, the Supervisory Board resolved on the changed transaction conditions for selling the company's stake in Deutsche Postbank AG to Deutsche Bank.
At the fi nancial statements meeting on 25 February 2009, we discussed and approved the annual and consolidated fi nancial statements for 2008 and approved the updated planning for fi nancial year 2009. We also reviewed the effi ciency of the Supervisory Board's work based on an updated questionnaire. Th e resignation from the Board of Management of John Mullen was accepted at this meeting, and the appointment of Ken Allen as a member of the Board of Management with responsibility for the EXPRESS division was resolved.
Following John Allan's decision at the start of the year to make use of his contractual right to resign his seat on the Board of Management as at 30 June 2009, we resolved in a special meeting held on 10 March 2009 to appoint Lawrence Rosen to the Board of Management with responsibility for Finance, Global Business Services. He took up this position on 1 September 2009. Th e Supervisory Board also took advantage of this special meeting to discuss the Group's new strategy in detail with the Board of Management and to approve it.
Th e committee appointments were resolved at the Supervisory Board meeting directly following the Annual General Meeting (AGM) of Deutsche Post AG on 21 April 2009. Please refer to page 105 for the current composition of the committees.
At the meeting held on 18 June 2009, the Supervisory Board resolved to renew Walter Scheurle's seat on the Board of Management and his Board of Management contract. It also resolved to have Dr Frank Appel assume interim responsibility for Finance from 1 July 2009 until Lawrence Rosen took up his position.
At the Supervisory Board meeting held on 11 September 2009, we discussed the implementation status of the strategy presented in March and resolved to renew Jürgen Gerdes' seat on the Board of Management for three years until 1 July 2010.
At the Supervisory Board's last meeting of the year on 7 December 2009, we approved the business plan for 2010 and decided on the future structure of the remuneration system for the Board of Management, amongst other things. More information on this can be found in the Remuneration Report starting on page 113. We also extended Jürgen Gerdes' seat on the Board of Management to fi ve years and submitted our Declaration of Conformity with the 2009 German Corporate Governance Code.
Th e Executive Committee met nine times during the year under review. Th e agenda focused primarily on Board of Management and Supervisory Board business, the development of a new remuneration system for the Board of Management and the appointment / reappointment of Board of Management members.
Th e Personnel Committee met twice, dealing mainly with human resources matters related to Strategy 2015 and the status of training and professional development within the Group.
Th e Finance and Audit Committee met eight times, with meetings chaired by Prof. Dr Ralf Krüger until 21 April and by Hero Brahms from 22 April. Hero Brahms is a fi nancial expert on the Bilanzrechtsmodernisierungsgesetz (German act to modernise accounting law). At its February meeting, the committee examined the annual and consolidated fi nancial statements for 2008 and reviewed the updated planning for fi nancial year 2009. It discussed the interim reports and addressed the review of the interim fi nancial report for the fi rst half of the year. Th e auditors attended the committee's fi nancial statements meeting and the meeting to discuss the interim fi nancial report for the fi rst half of the year.
Th e committee held regular discussions on the Group's business performance, particularly in view of the overall economic situation, the insolvency of Arcandor, the restructuring of the US express business and the downward trend on the mail market. It also occupied itself with the internal control system, especially internal auditing and compliance management in the Group. Th e committee approved the Audit Plan 2010 and also agreed that pension risk was being properly managed. Accounting and risk monitoring as well as co-operation with the auditors were also discussed in detail. Following the AGM, the Finance and Audit Committee hired the auditors to perform an audit of the annual and consolidated fi nancial statements and to review the interim fi nancial report for the fi rst half of the year. Th e focal points of the audit were also determined.
Th e Nomination Committee met once in 2009 to recommend a successor to Prof. Dr Ralf Krüger to the Supervisory Board.
Th e Mediation Committee, which must be formed pursuant to Section 27 (3) of the Mitbestim mungs gesetz (German co-determination act), met twice in 2009 to discuss Board of Manage ment matters.
Th e chairs of the committees reported on the committees' deliberations in the subsequent plenary meetings.
Th e Annual General Meeting of 21 April 2009 elected the following shareholder representatives to a fi ve-year term: Prof. Dr Henning Kagermann, who had been appointed a member of the Supervisory Board by the court on 18 February 2009, Dr Ulrich Schröder, who had previously been appointed a member of the Supervisory Board by the court as at 1 September 2008, and Dr Stefan Schulte. Prof. Dr Ralf Krüger left the Supervisory Board with eff ect from the end of the AGM on 21 April 2009. Th e employee representatives remained the same in 2009.
Th e following changes occurred on the company's Board of Management: John Mullen resigned his seat on the Board of Management eff ective 25 February 2009. As his successor, Ken Allen was appointed to the Board of Management with eff ect from 26 February 2009 to head up the EXPRESS division. John Allan resigned his seat on the Board of Management on 30 June 2009. Lawrence Rosen was appointed to the Board of Management on 10 March 2009 and took up his position as CFO of the company on 1 September 2009.
In December 2009, the Board of Management and the Supervisory Board submitted an unqualifi ed Declaration of Conformity pursuant to Section 161 of the Aktiengesetz (German stock corporation act) and published it on the company's website. Th e previous declarations can also be viewed on this website. In fi nancial year 2009, Deutsche Post AG complied with all recommendations of the German Corporate Governance Code as amended on 6 June 2008. Th e company plans to continue complying with the recommendations of the Code as amended on 18 June 2009. Th e Corporate Governance Report on page 110 contains further information on corporate governance within the company as well as the Remuneration Report.
Th e auditors appointed by the AGM, PricewaterhouseCoopers Aktiengesellschaft Wirtschaft sprüfungsgesellschaft (PwC), Düsseldorf, audited the annual and consolidated fi nancial statements for fi nancial year 2009, including the respective management reports, and issued unqualifi ed audit opinions. PwC also conducted the review of the interim fi nancial report for the fi rst half of the year.
Following a detailed preliminary assessment by the Finance and Audit Committee, the Supervisory Board reviewed the annual and consolidated fi nancial statements and the management reports for fi nancial year 2009 at the fi nancial statements meeting held on 8 March 2010. Th e review included the Board of Management's proposal for the appropriation of the unappropriated surplus. Th e auditors' reports were made available to all Supervisory Board members and were discussed in detail with the Board of Management and the auditors in attendance. Th e Supervisory Board concurred with the results of the audit and approved the annual and consolidated fi nancial statements for fi nancial year 2009. Based on the fi nal outcome of the examination of the annual and consolidated fi nancial statements, the management reports and the proposal for the appropriation of the unappropriated surplus by the Supervisory Board and the Finance and Audit Committee, there are no objections to be raised. Th e Supervisory Board endorses the Board of Management's proposal for the appropriation of the unappropriated surplus and the payment of a dividend of € 0.60 per share.
We would like to thank the Board of Management and all the employees of the Group for their commitment and successful eff orts throughout this diffi cult year. It is thanks to them that the Group was able to stand its ground so well during the economic crisis.
Bonn, 8 March 2010 Th e Supervisory Board
Wulf von Schimmelmann Chairman
Shareholder Representatives Employee Representatives Executive Committee
Prof. Dr Wulf von Schimmelmann (Chairman)
Management Consultant
Willem G. van Agtmael Managing Partner, E. Breuninger GmbH & Co.
Hero Brahms Management Consultant
Werner Gatzer State Secretary, Federal Ministry of Finance
(since 18 February 2009) Former ceo of sap ag
Roland Oetker
Managing Partner, roi Verwaltungsgesellschaft mbH
Dr Ulrich Schröder
Chairman of the Board of Management of KfW Bankengruppe
Dr Stefan Schulte (since 21 April 2009) Deputy Chairman of the Board of Management of Fraport ag (until 31 August 2009) Chairman of the Board of Management of Fraport ag (since 1 September 2009)
Elmar Toime ceo of E Toime Consulting Ltd.
Prof. Dr Ralf Krüger (until 21 April 2009) Management Consultant
Andrea Kocsis (Deputy Chairwoman) Deputy Chair of the ver.di National Executive Board and Head of the Federal Postal Services, Forwarding Companies and Logistics section, ver.di National Executive Board
District Chairman for Postal Services, Freight Forwarding and Logistics of the ver.di district of Hamburg
Chairman for Postal Services, Co-determination and Youth and National Chairman for the Postal Services Section, ver.di National Headquarters
Heinrich Josef Busch Chairman of the Deutsche Post ag
Executive Staff Representation Committee
Annette Harms Chairwoman of the Works Council, Deutsche Postbank ag, Hamburg
Thomas Koczelnik Chairman of the Group Works Council of Deutsche Post ag
Anke Kufalt Member of the Works Council of dhl Global Forwarding GmbH, Hamburg
Andreas Schädler
Chairman of the General Works Council
of Deutsche Post ag Helga Thiel
Deputy Chairwoman of the General Works Council of Deutsche Post ag
Stefanie Weckesser Member of the Works Council, Parcel Expert, Mail Branch Augsburg
Prof. Dr Wulf von Schimmelmann (Chairman) Andrea Kocsis (Deputy Chairwoman) Roland Oetker Rolf Bauermeister Werner Gatzer Stefanie Weckesser
Hero Brahms (Chairman) Wolfgang Abel (Deputy Chairman) Werner Gatzer Thomas Koczelnik Dr Stefan Schulte Helga Thiel
Andrea Kocsis (Chairwoman) Prof. Dr Wulf von Schimmelmann (Deputy Chairman) Roland Oetker Thomas Koczelnik
Mediation Committee
(pursuant to Section 27 (3) of the German co-determination act) Prof. Dr Wulf von Schimmelmann (Chairman) Andrea Kocsis (Deputy Chairwoman) Roland Oetker Rolf Bauermeister
Prof. Dr Wulf von Schimmelmann (Chairman) Roland Oetker Werner Gatzer
Born in 1961, member of the Board of Management since 2002, appointed until October 2012, CEO with responsibility for the Corporate Offi ce, Corporate Legal Departments, Corporate Executives, Corporate Communications, Corporate Development, Corporate Regulation Management, Corporate First Choice, Corporate Public Policy and Responsibility, as well as HR DHL International and DHL Solutions & Innovations. He is also responsible for the cross- divisional sales organisation for the Group's major customers (Global Customer Solutions). From 1 July to 30 August 2009, he was also interim head of Finance, Global Business Services.
Born in 1952, member of the Board of Management since 26 February 2009, appointed until February 2012, responsible for the EXPRESS division.
Born in 1955, member of the Board of Management since 2008, appointed until March 2016, responsible for the SUPPLY CHAIN division.
Born in 1964, member of the Board of Management since 2007, appointed until June 2015, responsible for the MAIL division.
Finance, Global Business Services Born in 1957, member of the Board of Management since 1 September 2009, appointed until August 2012, responsible for Finance, including Controlling, Corporate Accounting and Reporting, Investor Relations, Corporate Finance, Corporate Audit / Security and Taxes, as well as Global Business Services.
Born in 1952, member of the Board of Management since 2000, appointed until March 2013, responsible for Personnel, including HR Standards, HR Guidelines, Personnel & Labor Management and HR Mail.
global forwarding, freight
Born in 1961, member of the Board of Management since 2008, appointed until March 2016, responsible for the GLOBAL FORWARDING, FREIGHT division.
Dr Frank Appel Chief Executive Offi cer
John Allan (until 30 June 2009) Finance, Global Business Services
Ken Allen (since 26 February 2009) express
Bruce Edwards supply chain
Jürgen Gerdes mail
John Mullen (until 25 February 2009) express
Lawrence Rosen (since 1 September 2009) Finance, Global Business Services
Walter Scheurle Personnel
Hermann Ude global forwarding, freight
107
Ashtead plc (Board of Directors)
Bruce Edwards
Deutsche Postbank ag1) (Supervisory Board, Chair)
Deutsche Postbank ag, since 10 September 20091) (Supervisory Board)
Left in fi nancial year 2009:
John Allan (until 30 June 2009) Deutsche Postbank ag1) Deutsche Lufthansa ag
Exel Automocion, s. a. de c. v.1) (Board of Directors) Exel Investments Limited (Board of Directors) Exel Limited 1) (Board of Directors) Exel Logistics, s. a. de c. v.1) (Board of Directors) Exel North American Logistics, s. a. de c. v.1) (Board of Directors) Exel Servicios, s. a. de c. v.1) (Board of Directors) Exel Supply Chain Services de México, s. a. de c. v.1) (Board of Directors) Greif, Inc. (Board of Directors) Hyperion Inmobiliaria, s. a. de c. v.1) (Board of Directors) Tibbett & Britten Group Limited1) (Board of Directors) Williams Lea Group Limited1) (Board of Directors) Williams Lea Holdings plc1) (Board of Directors, Chair)
Jürgen Gerdes Global Mail, Inc. (Board of Directors)1)
Bundesanstalt für Post und Telekommu nikation (Administrative Board)
Deutsches Verkehrsforum (Presidium)
Left in fi nancial year 2009:
John Allan (until 30 June 2009) National Grid plc (Non-Executive Director) iss a / s (Board of Directors)
John Mullen (until 25 February 2009) Embarq Corp. (usa, Non-Executive Director) Telstra Corp. Ltd. (usa, Non-Executive Director)
1) Group mandate
Prof. Dr Wulf von Schimmelmann (Chairman) Maxingvest ag
Deutsche Telekom ag, until 31 December 2009
Georgsmarienhütte Holding GmbH (Deputy Chair) Wincor Nixdorf ag Live Holding ag Telefunken Holding ag (Chair), since 1 May 2009
KfW ipex-Bank GmbH g. e. b. b. mbH Bundesdruckerei GmbH, since 10 December 2009 öpp Deutschland ag
Prof. Dr Henning Kagermann
(since 18 February 2009) Deutsche Bank ag Münchener Rückversicherungs-Gesellschaft ag
Roland Oetker
Dr Ulrich Schröder
ProHealth ag, until 1 September 2009 Deutsche Telekom ag KfW ipex-Bank GmbH, since 1 October 2009 deg – Deutsche Investitions- und Entwicklungsgesellschaft mbH, since 1 October 2009
Delvag Luftfahrtversicherungs-ag, until 8 May 2009 Delvag Rückversicherungs-ag, until 8 May 2009
Prof. Dr Ralf Krüger (until 21 April 2009) Deutsche Postbank ag diamos ag (Chair) kms ag (Chair), until 4 June 2009 kms Asset Management ag (Chair), until 4 June 2009
Prof. Dr Wulf von Schimmelmann (Chairman) Accenture Corp., usa (Board of Directors) bawag p. s. k., Österreich (Supervisory Board, Chair), until 15 October 2009 Western Union Company, usa (Board of Directors), since 24 April 2009
Energie Baden-Württemberg ag (Advisory Board) Landesbank Baden-Württemberg (Advisory Board) L-Bank (Advisory Board)
m. m. Warburg & co KGaA (Shareholders' Committee) Zumtobel ag (Supervisory Board, Deputy Chair)
Bundesanstalt für Immobilienaufgaben (Administrative Board, Chair) Bundesdruckerei GmbH (Advisory Board), since 10 December 2009
(since 18 February 2009) Nokia Corporation, Finland (Board of Directors) Wipro Ltd., India (Board of Directors), since 27 October 2009
Dr. August Oetker kg (Advisory Board, Deputy Chair) rag-Stiftung (Board of Trustees)
Allianz ag (Advisory Board) Deutsches Stiftungszentrum GmbH (Administrative Board)
Blackbay Ltd., United Kingdom (Non-Executive Director) skycity Entertainment Group Ltd., New Zealand (Non-Executive Director), until 30 October 2009 message ag (Non-Executive Chairman) Postea Inc. (Non-Executive Chairman)
Prof. Dr Ralf Krüger (until 21 April 2009) sireo real estate asset management GmbH (Advisory Board)
Annette Harms (Deputy Chairwoman ) Deutsche Postbank ag
Rolf Bauermeister Deutsche Postbank ag
Andreas Schädler psd Bank Köln eG (Chair)
Helga Thiel psd Bank Köln eG
Andreas Schädler Bundesanstalt für Post- und Telekommunikation (Administrative Board)
Deutsche Post DHL Annual Report 2009
dp-dhl.com/en/investors.html
In this Annual Corporate Governance Statement, Deutsche Post DHL presents the main components of its corporate governance structure. Th ese include the Declaration of Conformity from the Board of Management and Supervisory Board, information on corporate governance practices that signifi cantly exceed the legal requirements, information on the working methods of the Board of Management and the Supervisory Board and details regarding the composition and working methods of their committees.
In December 2009, the Board of Management and the Supervisory Board again submitted an unqualifi ed Declaration of Conformity pursuant to Section 161 of the Aktiengesetz (German stock corporation act), which reads as follows:
"Th e Board of Management and the Supervisory Board of Deutsche Post AG declare that the recommendations made by the Government Commission on the German Corporate Governance Code as amended on 6 June 2008 have been complied with since the last Declaration of Conformity in December 2008, and that Deutsche Post AG intends to comply with all recommendations of the Code as amended on 18 June 2009 in the future. Pursuant to section 3.8 (3), the deductible for members of the Supervisory Board will be raised to the required level upon the next adjustment of insurance policies in the fi rst half of 2010."
We also implemented the suggestions set forth in the Code, with one exception: the Annual General Meeting will only be broadcast on the internet until the start of the general debate.
Our guiding principle in corporate management is Respect and Results. Th is has evolved from the daily challenges of achieving fi rst-class results whilst adhering to our sense of responsibility for the needs of our employees and customers. We show respect towards our shareholders by making our challenges public and clearly stating how we intend to overcome them. We are well aware of the eff ect our corporate activities have on society. Th erefore, we respect everyone with whom we interact and the environment in which we live. From this guiding principle, we derive our three most important leadership values: openness, responsibility and passion. Th ese help us to fi nd a balance between respect and results.
As a globally operating company and corporate citizen, we bear great responsibility for the environment and the living conditions in the regions in which we operate. Th is is a responsibility that we take seriously. Our sustainability strategy rests on the core competencies of the company and the experience of our employees. Our goal is to achieve demonstrable benefi ts for society and to keep any negative impact our business has on the environment to a minimum. We want to lead the way in innovative and sustainable logistics solutions. Th e idea of sustainability drives innovations and opens up new business opportunities, which gives us competitive advantages.
Our sustainability strategy focuses on three areas: the Group's GoGreen programme is aimed at achieving the Group's climate protection targets. Our second focus is GoHelp. Here we apply our expertise towards improving living conditions for people in disaster areas. Th e third expression of our commitment to society is our support of education. We created the GoTeach project to further this purpose.
In 2009, Deutsche Post DHL was honoured with the German Sustainability Award in the category of Most Sustainable Strategy, recognising our comprehensive strategy for economic, ecological and social responsibility.
Deutsche Post DHL has developed a Code of Conduct that has been applicable in all regions and in all divisions since mid-2006. Th e Code of Conduct lays down guidelines for day-to-day workplace conduct for our approximately 500,000 employees.
Its cornerstones are respect, tolerance, honesty, openness, integrity vis-à-vis employees and customers and willingness as a company to assume social responsibility. Th e guidelines apply to employees at all hierarchical levels and in all divisions.
Th e compliance organisation at Deutsche Post DHL comprises the Compliance Committee, the Global Compliance Offi ce – including the Regional Compliance Offi ces – and the Integrity Board. Th e Compliance Committee makes decisions on the fundamental requirements of compliance management and any necessary measures. It is supported by the Global Compliance Offi ce and currently 14 Regional Compliance Offi ces, and it reports directly to the Board of Management. An Integrity Board, which is made up of both internal and external specialists, advises the Compliance Committee. Compliance management at Deutsche Post DHL is reviewed and improved on an ongoing basis.
To supplement the Code of Conduct, two guidelines were issued in 2009. An anticorruption guideline gives specifi c guidance on avoiding corruption in accordance with the provisions of the Code of Conduct, including clear instructions on how to handle gift s, benefi ts and off ers of hospitality. A competition guideline gives specifi c guidance on the prohibition of agreements with competitors.
Th e Code of Conduct for suppliers obligates them to adhere to ethical and ecological standards. Since the reporting year, these have expressly included a ban on child and forced labour as well as discrimination. Wages and working hours must correspond with national laws and regulations, and unlawful payments (bribery) are prohibited. Th e Code of Conduct for suppliers has been included in all new procurement contracts and added to existing long-term framework agreements since 2007.
In addition, we provide various obligatory online training programmes for specifi c target groups. Th e sustainability of our compliance processes is regularly reviewed by Internal Audit.
As a German listed public limited company, Deutsche Post follows a dual management system. Th e Board of Management is responsible for the management of the company. It is appointed, overseen and advised by the Supervisory Board.
In addition to the board departments of the CEO, CFO and the Board Member for Personnel, the Board of Management also includes the operating board departments of MAIL, GLOBAL FORWARDING, FREIGHT, EXPRESS and SUPPLY CHAIN.
With the consent of the Supervisory Board, the Board of Management has established rules of procedure that lay down objectives for structure, management and cooperation within the Board of Management. Within this framework, each member of the Board of Management manages his board department independently and informs the rest of the Board on key developments at regular intervals. Th e Board of Management as a whole decides on matters of particular signifi cance for the company or the Group. In addition to tasks that it is prohibited by law from delegating, these include all decisions that must be presented to the Supervisory Board for approval. Th e entire Board of Management also decides on matters brought forth by one member of the Board of Management for decision by the Board of Management as a whole.
In making their decisions, the members of the Board of Management may not pursue personal interests or exploit business opportunities due to the company for their own benefi t. Th ey are required to disclose any confl icts of interest to the Supervisory Board without delay.
Th e Supervisory Board advises and oversees the Board of Management and appoints the members of the Board of Management. It has established rules of procedure that include the fundamental principals of its internal structure, a catalogue of Board of Management transactions requiring its approval and rules for the Supervisory Board committees. It meets at least twice every six months based on the calendar year. Special meetings are held whenever signifi cant events so dictate. In fi nancial year 2009, the Supervisory Board met for seven plenary meetings and 21 committee meetings, as described in the Report of the Supervisory Board starting on page 102.
Th e Board of Management and the Supervisory Board are in regular contact regarding strategic measures, planning, business development, risk exposure and risk management as well as company compliance. Th e Board of Management informs the Supervisory Board promptly and comprehensively on all topics of signifi cance.
All Supervisory Board decisions, particularly those concerning transactions that require its approval, are deliberated extensively in the relevant committees. At each plenary meeting, the Supervisory Board is informed in detail about the work of its committees.
In making their decisions, the members of the Supervisory Board may not pursue personal interests or exploit business opportunities due to the company for their own benefi t. Th ey are required to disclose any confl icts of interest to the Supervisory Board. Any signifi cant confl icts of interest on the part of a Supervisory Board member that are not merely temporary in nature lead to that member's resignation from the Board.
Below the Board of Management level, important decisions are taken in so-called executive committees, which also prepare decisions to be made by the Board of Management as a whole. Th e executive committees are responsible for strategy, acquisitions and major board department investments, amongst other things.
Th e MAIL Steering Committee is responsible for the MAIL division, and the cross divisional DHL Executive Committee is in charge of the EXPRESS, GLOBAL FORWARDING, FREIGHT and SUPPLY CHAIN divisions. Th e CEO, the CFO and the respective board members are represented on the committees. In addition, the Board Member for Personnel is a member of the MAIL Steering Committee. Along with the relevant members of the Board of Management, the executive committees also include second-tier executives, in some cases on a permanent basis – for example those responsible for the operating business – and in some cases to assist with special topics. Procurement and Controlling are called in to consult on capital expenditure, for instance, and Finance, Corporate Development and Legal Services in the case of acquisitions.
Th e DHL Executive Committee generally meets twice per month and the MAIL Steering Committee once.
Furthermore, business review meetings take place once per quarter. Th ese meetings are part of the strategic performance dialogue between the divisions, the CEO and the CFO. Th ey comprise discussions on strategic measures, operating topics and the budget situation of the operating board departments.
Th e Supervisory Board has formed fi ve committees to ensure effi cient discharge of its duties. Th e Report of the Supervisory Board starting on page 102 gives details on the composition and working methods of the committees.
Th e Supervisory Board committees prepare the resolutions of the plenary meetings of the Supervisory Board. Decisions on certain topics are delegated by the Supervisory Board to the individual committees for fi nal decision.
Th e remuneration report also forms part of the Group Management Report.
Th e total remuneration paid to the individual Board of Management members for fi nancial year 2009 was determined by the Supervisory Board or, more specifi cally, by its Executive Committee, which is headed by the chairman of the Supervisory Board. Aft er holding consultations, the Supervisory Board resolved on the remuneration system for the Board of Management – including the main contractual elements – based on the recommendations submitted by the Executive Committee. Th e remuneration of the Board of Management refl ects the size and global reach of the company, its economic and fi nancial situation and the roles fulfi lled by the individual members. It is set to ensure competitiveness with comparable German and international companies, thus incentivising the Board of Management members to deliver maximum performance and achieve results.
Th e remuneration of the Board of Management for 2009 is in line with standard market practice, appropriate to the tasks involved and designed to reward performance; it comprises fi xed and variable elements as well as long-term incentives.
Non-performance-related components are the fi xed annual remuneration (annual base salary), fringe benefi ts and pension commitments. Th e fi xed annual remuneration is paid in 12 equal monthly instalments retroactively at the end of each month. Fringe benefi ts mainly comprise the use of company cars and supplements for insurance premiums as well as special allowances and benefi ts for assignments outside the home country.
Th e variable remuneration components for 2009 comprise one component linked to the company's annual profi ts (annual performance-related remuneration) and one long-term incentive component (the Long-Term Incentive Plan).
Th e amount of the annual performance-related component (the annual bonus) is set at the due discretion of the Supervisory Board on the basis of the company's performance. Th e individual bonus amounts refl ect the extent to which predefi ned targets are achieved, missed or exceeded. Th e Group's EBIT aft er asset charge performance metric is the main parameter used in this calculation. For the Board of Management members in charge of the MAIL, GLOBAL FORWARDING, FREIGHT, EXPRESS and SUPPLY CHAIN divisions, the EBIT aft er asset charge of their respective division is also a key parameter. Achievement of the upper target for the fi nancial year is rewarded with the maximum annual performance-related remuneration (annual bonus). Th e maximum annual bonus opportunity is 100 % of the fi xed annual remuneration. In addition, the Supervisory Board may elect to award an appropriate special bonus for extraordinary achievement.
Th e remuneration component linked to the company's annual profi ts now also includes a sustainability component in line with the provisions of the Gesetz zur Angemessenheit der Vorstandsvergütung (VorstAG – Act on the appropriateness of management board remuneration), which came into force on 5 August 2009. It will be taken into account in employment contracts and contract renewals entered into aft er 5 August 2009, increasing the emphasis on sustainable company development in determining management board remuneration. For such contracts, the annual performancerelated remuneration will in future no longer be paid in full for the year on the basis of having reached the agreed targets. Instead, 50 % of the annual performance-related remuneration will fl ow into a new medium-term component with a three-year calculation period (performance phase of one year, sustainability phase of two years). Th is medium-term component will be paid out aft er expiry of the sustainability phase subject to the condition that the targets related to reported EBIT aft er asset charge (including the asset charge on goodwill and before goodwill impairment) have been reached during the sustainability phase. If the sustainability criteria are not met, the payment is forfeited without compensation. Th is demerit system puts greater emphasis on sustainable company development in determining management board remuneration.
Stock appreciation rights (SAR) are granted as a long-term remuneration component based on the Long-Term Incentive Plan resolved by the Supervisory Board in 2006 (2006 LTIP).
Each SAR entitles the holder to receive a cash settlement equal to the diff erence between the average closing price of Deutsche Post shares for the fi ve trading days preceding the exercise date and the exercise price of the SAR. In 2009, the members of the Board of Management each invested 10 % of their annual target salary per tranche in Deutsche Post shares. When the stock appreciation rights were granted as part of the allocation procedure in 2009, the lock-up period was increased from three to four years. Aft er expiration of the lock-up period, the stock appreciation rights can be exercised wholly or partially for a period of two years, provided an absolute or relative performance target has been achieved. Any stock appreciation rights not exercised during this two-year period will lapse.
To determine how many – if any – of the stock appreciation rights granted can be exercised, the average share price or the average index value is compared for the reference period and for the performance period. Th e reference period comprises the last 20 consecutive trading days prior to the issue date. Th e performance period is the last 60 trading days prior to the end of the lock-up period. Th e average share price (closing price) is calculated as the average closing price of Deutsche Post shares in Deutsche Börse AG's Xetra electronic trading system.
A maximum of four out of every six stock appreciation rights can be "earned" via the absolute performance target and a maximum of two via the relative performance target. If neither an absolute nor a relative performance target is met by the end of the lock-up period, the stock appreciation rights of the related tranche will lapse and no replacement or compensation of any kind will be provided.
One SAR is earned each time the closing price of Deutsche Post shares exceeds the issue price by at least 10 %, 15 %, 20 % or 25 %. Th e relative performance target is tied to the performance of the shares in relation to the performance of the Dow Jones STOXX 600 Index (SXXP; ISIN EU0009658202). Th e target is met if the share price is not outperformed by the index during the performance period or if it outperforms the index by at least 10 %.
Th e Long-Term Incentive Plan is being continued in contracts entered into aft er 5 August 2009 and in contract renewals, although the amount to be invested by individual Board members is now 10 % of their annual base salary. Remuneration from stock appreciation rights is limited to 300 % of the targeted cash remuneration (annual base salary plus the targeted annual performance-related remuneration).
In accordance with the recommendation of Section 4.2.3 of the German Corporate Governance Code as amended on 6 June 2008, the Board of Management contracts newly concluded since fi nancial year 2008 contain a provision stipulating that in the event of premature termination of a Board of Management member's contract without good cause, the severance payment may compensate no more than the remaining term of the contract. Th e severance payment is limited to a maximum value of two years' remuneration including fringe benefi ts (severance payment cap).
In the event of a change in control, the members of the Board of Management are entitled to resign their offi ces for good cause within a period of six months following the change in control, aft er giving three months' notice to the end of the month, and to terminate their Board of Management contract (right to early termination).
Th e contractual provisions stipulate that a change of control exists if a shareholder has acquired control within the meaning of Section 29 (2) of the Wertpapiererwerbsund Übernahmegesetz (German securities acquisition and takeover act) via possession of at least 30 % of the voting rights, including the voting rights attributable to such shareholder by virtue of acting in concert with other shareholders as set forth in Section 30 of the German securities acquisition and takeover act, or if a control agreement has been concluded with the company as a dependent entity in accordance with Section 291 of the Aktiengesetz (German stock corporation act) and such agreement has taken eff ect, or if the company has merged with another legal entity outside of the Group pursuant to Section 2 of the Umwandlungsgesetz (German reorganisation and transformation act), unless the value of such other legal entity as determined by the agreed conversion rate is less than 50 % of the value of the company.
In the event that the right to early termination is exercised or a Board of Management contract is terminated by mutual consent within nine months of the change in control, the Board of Management member is entitled to payment to compensate the remaining term of his Board of Management contract. Such payment is limited to 150 % of the severance payment cap pursuant to the recommendation of the Germany Corporate Governance Code. Th e amount of the payment is reduced by 25 % if the Board of Management member has not reached the age of 60 upon leaving the company. If the remaining term of the Board of Management contract is less than two years and the Board of Management member has not reached the age of 62 upon leaving the company, the payment will correspond to the severance payment cap. Th e same applies if a Board of Management contract expires prior to the Board of Management member's reaching the age of 62 because less than nine months remained on the term of the contract at the time of the change in control and the contract was not renewed.
A non-compete clause eff ective for two years aft er the end of the contract is also stipulated for Board of Management members. During the non-compete period, they receive 50 % (or 75 % in the case of Lawrence Rosen) of their last contractually stipulated fi xed annual remuneration (annual base salary) on a pro rata basis as compensation each month. Any other earned income is generally deducted from the compensation paid during the non-compete period, provided such other income – together with the compensation payment – exceeds the last fi xed remuneration paid on a monthly basis. Th e amount of the compensation payment itself is deducted from any severance payments or pension payments. Prior to or concurrent with cessation of the Board of Management contract, the company may declare its waiver of adherence to the noncompete clause. In such case, the company will be released from the obligation to pay compensation due to a restraint on competition six months aft er receipt of such declaration. Th e contract with Lawrence Rosen does not provide for such a unilateral waiver option.
Lawrence Rosen will receive payments in 2010, 2011 and 2012 amounting to a total of € 2.55 million to compensate him for rights that have lapsed as a result of his transfer to Deutsche Post AG.
In accordance with a provision contained in his contract of employment, John Allan is subject to a two-year non-compete clause aft er leaving the company. For the duration of this two-year period, he will receive 50 % of his last pro-rata fi xed annual remuneration (€ 47,031 per month). If any other income is received exceeding half of the fi xed annual remuneration, the compensation paid during the non-compete period will be deducted by such amount.
Th e employment contract with John Mullen was terminated eff ective 28 February 2010. His remuneration will be paid until such date. He will then receive severance payment equal to the remaining entitlement from his contract, which originally extended until 31 December 2010. Beyond this, no other severance payments have been agreed on in connection with the cessation of his contract.
Apart from the aforementioned arrangements, no member of the Board of Management has been promised any further benefi ts aft er leaving the company.
Th e remuneration paid to active members of the Board of Management in fi nancial year 2009 totalled € 14.92 million (previous year: € 11.89 million). Th is amount comprised € 9.81 million in non-performance-related components (previous year: € 9.01 million) and € 5.11 million in performance-related components (previous year: € 2.88 million). Th e members of the Board of Management were granted a total of 1,800,000 stock appreciation rights in fi nancial year 2009 with a total value of € 7.25 million (previous year: € 4.78 million) at the time of issue (1 July 2009).
Th e following table presents the total remuneration paid to active Board of Management members:
| € | Non-performance-related | |||
|---|---|---|---|---|
| Board members | Fixed annual remuneration |
Fringe benefi ts | Annual perfor mance-related remuneration |
Total |
| Dr Frank Appel, Chairman | 1,582,831 | 27,969 | 1,376,430 | 2,987,230 |
| John Allan (until 30 June 2009) | 564,375 | 353,658 | 490,781 | 1,408,814 |
| Ken Allen (since 26 Feb. 2009) | 602,217 | 84,677 | 562,953 | 1,249,847 |
| Bruce Edwards | 860,001 | 141,851 | 373,928 | 1,375,780 |
| Jürgen Gerdes | 787,500 | 27,972 | 639,529 | 1,455,001 |
| John Mullen (until 24 Feb. 2009) | 161,832 | 160,594 | 218,416 | 540,842 |
| Walter Scheurle | 860,000 | 22,656 | 747,856 | 1,630,512 |
| Hermann Ude | 715,000 | 15,322 | 455,670 | 1,185,992 |
| Lawrence Rosen (since 1 Sep. 2009) | 286,667 | 8,001 | 249,285 | 543,953 |
| € | Value of SAR on grant date |
Change in value of total SAR granted from 2006 to 2009 on 31 Dec. 2009 |
|
|---|---|---|---|
| Active board members | Number of SAR | (1 July 2009) | compared with value on grant date |
| Dr Frank Appel, Chairman | 360,000 | 1,450,800 | −1,685,900 |
| Ken Allen (since 26 Feb. 2009) | 240,000 | 967,200 | 145,919 |
| Bruce Edwards | 240,000 | 967,200 | −229,829 |
| Jürgen Gerdes | 240,000 | 967,200 | −656,270 |
| Walter Scheurle | 240,000 | 967,200 | −1,738,900 |
| Hermann Ude | 240,000 | 967,200 | −122,943 |
| Lawrence Rosen (since 1 Sep. 2009) | 240,000 | 967,200 | 446,400 |
| € Non-performance-related |
Performance related |
||||
|---|---|---|---|---|---|
| Board members | Fixed annual remuneration |
Fringe benefi ts | Annual perfor mance-related remuneration |
Total | |
| Dr Frank Appel (Chairman since 18 Feb. 2008) | 1,429,205 | 28,387 | 0 | 1,457,592 | |
| John Allan | 1,046,580 | 593,906 | 0 | 1,640,486 | |
| Bruce Edwards (since 4 March 2008) | 715,760 | 40,331 | 0 | 756,910 | |
| Jürgen Gerdes | 715,000 | 37,222 | 0 | 752,222 | |
| John Mullen | 1,139,871 | 767,765 | 0 | 1,907,636 | |
| Walter Scheurle | 860,000 | 23,891 | 0 | 883,891 | |
| Hermann Ude (since 4 March 2008) | 590,067 | 12,603 | 0 | 602,670 | |
| € | Value of SAR on grant date |
Change in value of total SAR granted from 2006 to 2008 on 31 Dec. 2008 |
|
|---|---|---|---|
| Board members | Number of SAR | (1 July 2008) | compared with value on grant date |
| Dr Frank Appel (Chairman since 18 Feb. 2008) | 360,000 | 955,650 | −1,955,050 |
| John Allan | 240,000 | 637,100 | − 420,650 |
| Bruce Edwards (since 4 March 2008) | 240,000 | 637,100 | − 527,064 |
| Jürgen Gerdes | 240,000 | 637,100 | − 895,664 |
| John Mullen | 230,000 | 637,100 | −1,895,000 |
| Walter Scheurle | 240,000 | 637,100 | −1,895,000 |
| Hermann Ude (since 4 March 2008) | 240,000 | 637,100 | −422,076 |
Th e members of the Board of Management have direct pension commitments on the basis of their individual contracts, providing for benefi ts in case of permanent disability, death or retirement. If the contract of a member ends aft er at least fi ve years of service on the Board of Management, the entitlements he has acquired will vest. Members become entitled to benefi ts due to permanent disability aft er at least fi ve years of service. Eligibility for retirement benefi ts begins at the earliest at the age of 55, or at the age of 62 in the case of Jürgen Gerdes. Th e members of the Board of Management may choose between regular pension payments and a lump sum. Th e benefi t amount depends on the pensionable income and the pension level derived from the years of service.
Pensionable income consists of the fi xed annual remuneration (annual base salary) computed on the basis of the average salary of the last 12 months of employment. Members of the Board of Management appointed for the fi rst time between 2002 and 2007 attain a pension level of 25 % aft er fi ve years of service on the Board of Management. Th e maximum pension level of 50 % is attained aft er ten years of service. For active Board of Management members appointed prior to 2002, the maximum pension level is 60 %. Depending on the individual contractual arrangements, the pension level increases gradually based on either the period of service or the periods of appointment on the Board of Management. Subsequent pension benefi ts increase or decrease to refl ect changes in the consumer price index in Germany.
| Pension commitments | ||||
|---|---|---|---|---|
| Pension level on 31 Dec. 2009 % |
Maximum pension level % |
Service cost for pension obligation Financial year 2009 € |
||
| Dr Frank Appel, Chairman | 25 | 50 | 415,539 | |
| Jürgen Gerdes1) | 0 | 50 | 117,912 | |
| John Mullen (until 24 Feb. 2009) | 45 | 50 | 674,2112) | |
| Walter Scheurle | 30 | 60 | 506,408 | |
Total 1,714,070
1) Minimum period not yet complete. In the event of benefi ts being paid, the provisions of the previous system will apply. 2) Cost for the entire year.
| Pension commitments | ||||
|---|---|---|---|---|
| Pension level on 31 Dec. 2008 % |
Maximum pension level % |
Service cost for pension obligation Financial year 2008 € |
||
| Dr Frank Appel (Chairman since 18 Feb. 2008) | 25 | 50 | 444,8971) | |
| Jürgen Gerdes2) | 0 | 50 | 112,312 | |
| John Mullen | 35 | 50 | 546,824 | |
| Walter Scheurle | 30 | 60 | 528,795 |
1) Increase in benefi ts due to assumption of chairmanship of the Board of Management.
2) Minimum period not yet complete. In the event of benefi ts being paid, the provisions of the previous system will apply.
Th e pension commitment system was restructured in fi nancial year 2008. Starting on 4 March 2008, newly appointed Board of Management members will receive pension commitments based on a defi ned contribution plan rather than the previous commitments, which were based on fi nal salary.
Under the new defi ned contribution pension plan, the company has credited an annual amount of 25 % of the fi xed annual remuneration to a virtual pension account for the Board of Management members concerned. Th e maximum contribution period is 15 years. Interest is paid on the pension capital at the rate applicable to pension provisions recognised for tax purposes until the pension is drawn or the Board of Management member leaves the company. Th e pension benefi ts are paid out in a lump sum in the amount of the value accumulated in the pension account. Th e benefi ts fall due when the Board of Management member reaches the age of 62 or in the case of invalidity or death whilst being employed. Th e pension benefi ciary may opt to receive a pension in lieu of a lump-sum payment. If this option is exercised, the capital is converted to a pension on the basis of the relevant tax base, taking into account the individual data of the surviving dependents and a future pension increase of 1 %. If the Board of Management member leaves the company before the benefi ts fall due, the pension account will be maintained at the balance existing at the time the member left the company. Th e account will no longer accrue interest and no further contributions will be paid.
Th e new pension system is applicable to Board of Management members Ken Allen, Bruce Edwards, Lawrence Rosen and Hermann Ude. Th e pension commitment made to Hermann Ude contains an arrangement guaranteeing him a minimum benefi t in the amount of the benefi ts payable to him had his former pension commitment been continued using the assessment basis applicable at the time of his appointment to the Board of Management.
| € | Total contribution for 2009 |
Pension account balance as at 31 Dec. 2009 |
Service cost for pension obligation Financial year 2009 |
|---|---|---|---|
| Ken Allen1) | 148,9583) | 156,370 | 150,5976) |
| Bruce Edwards | 215,000 | 406,460 | 221,591 |
| Lawrence Rosen2) | 871,6674) | 888,763 | 70,2346) |
| Hermann Ude | 178,750 | 704,7935) | 177,182 |
| Total | 619,604 |
1) Member of the Board of Management since 26 February 2009. 2) Member of the Board of Management since 1 September 2009. 3) Pro-rata amount for 10 months. 4) Pro-rata amount for four months plus start-up capital of € 800,000. 5) Minimum payment in the event of death: € 929,765; minimum payment in the event of invalidity: € 1,606,058 (as at 31 December 2009). 6) Notional amount as at 1 January 2009, calculated at an interest rate of 5.75 %.
| € | Pension account | ||
|---|---|---|---|
| Total contribution | balance as | Service cost for pension obligation | |
| for 2008 | at 31 Dec. 2008 | Financial year 2008 | |
| Hermann Ude1) | 465,3612) | 486,149 | 133,647 |
| Bruce Edwards1) | 134,063 | 140,052 | 137,565 |
1) Member of the Board of Management since 4 March 2008.
2) Including starting balance of € 331,298 to replace his previous pension commitment.
Benefi ts paid to former members of the Board of Management or their surviving dependants amounted to € 8.1 million in fi nancial year 2009 (previous year: € 43.1 million). Th e defi ned benefi t obligations (DBO) for current pensions calculated under IFRS amount to € 26.1 million (previous year: € 25.3 million).
In accordance with Article 17 of the Articles of Association of Deutsche Post AG as adopted by the AGM, the annual remuneration of the members of the Supervisory Board comprises a fi xed component, a short-term performance-related component and a performance-related component with a long-term incentive eff ect.
Th e fi xed component amounts to € 20,000, and the short-term performance-related component to € 300 for every € 0.03 by which the consolidated net profi t per share exceeds the amount of € 0.50 in the fi nancial year in question. In 2009, the consolidated net profi t per share was € 0.53 and therefore exceeded the amount of € 0.50 once by € 0.03. For fi nancial year 2009, the members of the Supervisory Board are entitled to annual performance-related remuneration with a long-term incentive eff ect of € 300 for every 3 % by which the consolidated net profi t per share for fi nancial year 2011 exceeds the consolidated net profi t per share for fi nancial year 2008. Th e amount received may not exceed € 20,000. Th e remuneration will fall due for payment at the end of the 2012 AGM.
Th e chairman of the Supervisory Board receives double the remuneration, and his deputy one and half times the remuneration. Th e chairman of a Supervisory Board committee also receives double the remuneration, whilst a member of a committee receives one and a half times the remuneration. Th is does not apply to members of the Mediation and Nomination Committee. Persons who only serve on the Supervisory Board and its committees for part of the year receive corresponding compensation on a pro rata basis. Th e members of the Supervisory Board are entitled to claim out-ofpocket expenses incurred in the exercise of their offi ce. Any value added tax on the Supervisory Board remuneration and out-of-pocket expenses is reimbursed. In addition, each member of the Supervisory Board attending a meeting receives an attendance allowance of € 500 for each plenary meeting of the Supervisory Board or committee meeting.
In 2009, the non-performance-related remuneration (fi xed component and attendance allowance) totalled € 747,500 in 2009 (previous year: € 766,833) and performance-related remuneration € 9,263 (previous year: € 0). Th e following table presents the total remuneration paid to each Supervisory Board member:
| Fixed component |
Short-term performance related component |
Attendance allowance |
Total | Remuneration in previous year (2008)1) |
|
|---|---|---|---|---|---|
| Prof. Dr Wulf von Schimmelmann | |||||
| (Chairman since 1 Jan. 2009) | 70,000 | 1,050 | 11,000 | 82,050 | 25,000 |
| Andrea Kocsis (Deputy Chairwoman) | 60,000 | 900 | 10,000 | 70,900 | 72,500 |
| Wolfgang Abel | 30,000 | 450 | 8,000 | 38,450 | 32,667 |
| Willem van Agtmael | 20,000 | 300 | 3,500 | 23,800 | 24,000 |
| Rolf Bauermeister | 30,000 | 450 | 9,000 | 39,450 | 31,667 |
| Hero Brahms | 40,000 | 600 | 9,500 | 50,100 | 50,500 |
| Heinrich Josef Busch | 20,000 | 300 | 3,500 | 23,800 | 15,833 |
| Werner Gatzer | 40,000 | 600 | 11,000 | 51,600 | 54,500 |
| Annette Harms | 20,000 | 300 | 4,000 | 24,300 | 25,000 |
| Prof. Dr Henning Kagermann | |||||
| (since 18 Feb. 2009) | 17,500 | 263 | 3,500 | 21,263 | – |
| Thomas Koczelnik | 40,000 | 600 | 9,000 | 49,600 | 33,667 |
| Prof. Dr Ralf Krüger (until 21 April 2009) | 11,667 | 175 | 3,000 | 14,842 | 50,000 |
| Anke Kufalt | 20,000 | 300 | 4,000 | 24,300 | 16,333 |
| Roland Oetker | 37,083 | 556 | 7,000 | 44,640 | 39,000 |
| Harry Roels | 20,000 | 300 | 4,000 | 24,300 | 24,500 |
| Andreas Schädler | 20,000 | 300 | 4,000 | 24,300 | 16,333 |
| Dr Ulrich Schröder | 20,000 | 300 | 3,000 | 23,300 | 8,667 |
| Dr Stefan Schulte (since 21 April 2009) | 21,250 | 319 | 4,000 | 25,569 | – |
| Helga Thiel | 30,000 | 450 | 8,000 | 38,450 | 26,500 |
| Elmar Toime | 20,000 | 300 | 3,500 | 23,800 | 24,500 |
| Stefanie Weckesser | 30,000 | 450 | 7,500 | 37,950 | 34,167 |
1) Pro-rata fi xed component plus attendance allowance. No short-term variable remuneration was paid for fi nancial year 2008.
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| INCOME STATEMENT | 125 | |
|---|---|---|
| 125 | ||
| STATEMENT OF COMPREHENSIVE INCOME | 126 | |
| 126 | ||
| BALANCE SHEET | 127 | |
| 127 | ||
| CASH FLOW STATEMENT | 128 | |
| 128 | ||
| STATEMENT OF CHANGES IN EQUITY | 129 | |
| 129 | ||
| SEGMENT REPORTING | 130 | |
| 130 | ||
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ||
| OF DEUTSCHE POST AG | 131 | |
| Basis of preparation 1 Basis of accounting |
131 | |
| 131 | 2 Consolidated group | 131 |
| 3 Signifi cant transactions | 133 | |
| 4 New developments in international accounting | ||
| under the ifrs | 134 | |
| 5 Adjustment of prior-period amounts | 136 | |
| 6 Currency translation | 137 | |
| 7 Accounting policies 8 Exercise of judgement in applying |
137 | |
| the accounting policies | 143 | |
| 9 Consolidation methods | 145 | |
| Segment reporting disclosures | ||
| 10 Segment reporting disclosures | 145 | |
| Income statement disclosures | ||
| 11 Revenue | 147 | |
| 12 Other operating income | 147 | |
| 13 Materials expense | 148 | |
| 14 Staff costs / employees | 148 | |
| 15 Depreciation, amortisation and impairment losses |
148 | |
| 16 Other operating expenses | 149 | |
| 17 Net income from associates | 149 | |
| 18 Net other fi nance costs / net other fi nancial income |
149 |
20 Profi t / loss from continuing operations 151 21 Profi t / loss from discontinued operations 151
| RESPONSIBILITY STATEMENT 219 |
|---|
| 61 List of shareholdings 196 |
| 60 Miscellaneous 195 |
| 59 Signifi cant events after the balance sheet date 195 |
| Corporate Governance Code 195 |
| 58 Declaration of Conformity with the German |
| 57 Making use of Section 264 (3) hgb 195 |
| 56 Auditors' fees 195 |
| 55 Related-party disclosures 190 |
| 54 Share-based remuneration 189 |
| 53 Litigation 188 |
| 51 Contingent liabilities 187 52 Other fi nancial obligations 187 |
| 50 Risks and fi nancial instruments of the Group 174 |
| Other disclosures |
| 49 Cash fl ow disclosures 173 |
| Cash fl ow disclosures |
| 48 Trade payables 172 |
| 47 Other liabilities 172 |
| 46 Financial liabilities 170 |
| 45 Other provisions 168 |
| benefi ts 162 |
| 44 Provisions for pensions and other employee |
| shareholders 162 43 Minority interest 162 |
| 42 Equity attributable to Deutsche Post ag |
| 41 Retained earnings 162 |
| 40 Other reserves 161 |
| 39 Issued capital 160 |
| 38 Assets held for sale and liabilities associated with assets held for sale 158 |
| 37 Cash and cash equivalents 158 |
| 36 Current fi nancial assets 157 |
| 35 Receivables and other current assets 157 |
| 34 Income tax assets and liabilities 157 |
| 33 Inventories 157 |
| 32 Deferred taxes 156 |
| 31 Other non-current assets 156 |
| 30 Non-current fi nancial assets 156 |
| 29 Investments in associates 155 |
| 28 Investment property 155 |
| 27 Property, plant and equipment 154 |
| 26 Intangible assets 152 |
| Balance sheet disclosures |
| 25 Dividend per share 151 |
| 24 Earnings per share 151 |
| 23 Minorities 151 |
22 Consolidated net profi t / loss for the period 151
AUDITOR'S REPORT 220
220
| € m | Note | 2008 adjusted1) |
2009 |
|---|---|---|---|
| Continuing operations | |||
| Revenue | 11 | 54,474 | 46,201 |
| Other operating income | 12 | 2,736 | 2,141 |
| Total operating income | 57,210 | 48,342 | |
| Materials expense | 13 | –31,979 | –25,774 |
| Staff costs | 14 | –18,389 | –17,021 |
| Depreciation, amortisation and impairment losses | 15 | –2,662 | –1,620 |
| Other operating expenses | 16 | –5,146 | –3,696 |
| Total operating expenses | –58,176 | –48,111 | |
| Profi t/loss from operating activities (ebit) | –966 | 231 | |
| Net income from associates | 17 | 2 | 28 |
| Other fi nancial income | 598 | 1,885 | |
| Other fi nance costs | –714 | –1,857 | |
| Foreign currency result | 14 | –11 | |
| Net other fi nance costs / net other fi nancial income | 18 | –102 | 17 |
| Net fi nance costs / net fi nancial income | –100 | 45 | |
| Profi t / loss before income taxes | –1,066 | 276 | |
| Income taxes | 19 | –200 | –15 |
| Profi t / loss from continuing operations | 20 | –1,266 | 261 |
| Discontinued operations | |||
| Profi t/loss from discontinued operations | 21 | –713 | 432 |
| Consolidated net profi t / loss for the period | 22 | –1,979 | 693 |
| attributable to | |||
| Deutsche Post ag shareholders | –1,688 | 644 | |
| Minorities | 23 | –291 | 49 |
| Basic earnings per share (€) | 24 | –1.40 | 0.53 |
| of which from continuing operations (€) | –1.10 | 0.17 | |
| of which from discontinued operations (€) | – 0.30 | 0.36 | |
| Diluted earnings per share (€) | 24 | –1.40 | 0.53 |
| of which from continuing operations (€) | –1.10 | 0.17 | |
| of which from discontinued operations (€) | – 0.30 | 0.36 | |
1) Note 5.
1 January to 31 December
| € m | 2008 | 2009 | |
|---|---|---|---|
| Note | |||
| Consolidated net profit/loss for the period | –1,979 | 693 | |
| Currency translation reserve | |||
| Changes from unrealised gains and losses | –502 | 165 | |
| Changes from realised gains and losses | 0 | 31 | |
| Other changes in retained earnings | |||
| Changes from unrealised gains and losses | 0 | 0 | |
| Changes from realised gains and losses | 0 | 0 | |
| Hedging reserve in accordance with ias 39 | |||
| Changes from unrealised gains and losses | –88 | 3 | |
| Changes from realised gains and losses | 153 | –49 | |
| Revaluation reserve in accordance with ias 39 | |||
| Changes from unrealised gains and losses | –1,007 | 366 | |
| Changes from realised gains and losses | 744 | –256 | |
| Revaluation reserve in accordance with ifrs 3 | |||
| Changes from unrealised gains and losses | 8 | 0 | |
| Changes from realised gains and losses | 0 | 0 | |
| Income taxes relating to components of other comprehensive income | 19 | 54 | 0 |
| Share of other comprehensive income of associates (after taxes) | 0 | 123 | |
| Other comprehensive income (after taxes) | –638 | 383 | |
| Total comprehensive income | –2,617 | 1,076 | |
| attributable to | |||
| Deutsche Post ag shareholders | –2,147 | 1,070 | |
| Minorities | –470 | 6 |
| € m | Note | 1 Jan. 2008 adjusted1) |
31 Dec. 2008 adjusted1) |
31 Dec. 2009 |
|---|---|---|---|---|
| assets | ||||
| Intangible assets | 26 | 14,226 | 11,627 | 11,534 |
| Property, plant and equipment | 27 | 8,754 | 6,676 | 6,220 |
| Investment property | 28 | 187 | 32 | 32 |
| Investments in associates | 29 | 203 | 61 | 1,772 |
| Non-current fi nancial assets | 30 | 985 | 718 | 1,448 |
| Other non-current assets | 31 | 369 | 370 | 348 |
| Deferred tax assets | 32 | 1,040 | 1,033 | 668 |
| Non-current assets | 25,764 | 20,517 | 22,022 | |
| Inventories | 33 | 248 | 269 | 226 |
| Income tax assets | 34 | 312 | 191 | 196 |
| Receivables and other current assets | 35 | 9,676 | 8,081 | 7,157 |
| Receivables and other securities from fi nancial services | 193,920 | 0 | 0 | |
| Current fi nancial assets | 36 | 202 | 684 | 1,894 |
| Cash and cash equivalents | 37 | 4,683 | 1,350 | 3,064 |
| Assets held for sale | 38 | 615 | 231,872 | 179 |
| Current assets | 209,656 | 242,447 | 12,716 | |
| Total assets | 235,420 | 262,964 | 34,738 | |
| equity and liabilities | ||||
| Issued capital | 39 | 1,207 | 1,209 | 1,209 |
| Other reserves | 40 | 875 | 439 | 869 |
| Retained earnings | 41 | 8,953 | 6,178 | 6,098 |
| Equity attributable to Deutsche Post AG shareholders | 42 | 11,035 | 7,826 | 8,176 |
| Minority interest | 43 | 2,778 | 2,026 | 97 |
| Equity | 13,813 | 9,852 | 8,273 | |
| Provisions for pensions and other employee benefi ts | 44 | 5,989 | 4,685 | 4,574 |
| Deferred tax liabilities | 32 | 1,569 | 833 | 182 |
| Other non-current provisions | 45 | 3,015 | 2,511 | 2,275 |
| Non-current provisions | 10,573 | 8,029 | 7,031 | |
| Non-current fi nancial liabilities | 46 | 8,838 | 3,452 | 6,699 |
| Other non-current liabilities | 47 | 148 | 233 | 372 |
| Non-current liabilities | 8,986 | 3,685 | 7,071 | |
| Non-current provisions and liabilities | 19,559 | 11,714 | 14,102 | |
| Current provisions | 45 | 1,703 | 2,807 | 2,646 |
| Current fi nancial liabilities | 46 | 1,686 | 1,422 | 740 |
| Trade payables | 48 | 5,453 | 5,016 | 4,861 |
| Liabilities from fi nancial services | 187,787 | 0 | 0 | |
| Income tax liabilities | 34 | 473 | 351 | 292 |
| Other current liabilities | 47 | 4,902 | 4,066 | 3,674 |
| Liabilities associated with assets held for sale | 38 | 44 | 227,736 | 150 |
| Current liabilities | 200,345 | 238,591 | 9,717 | |
| Current provisions and liabilities | 202,048 | 241,398 | 12,363 | |
| Total equity and liabilities | 235,420 | 262,964 | 34,738 | |
1) Note 5.
1 January to 31 December
1) Note 5.
| € m | 2008 | 2009 | |
|---|---|---|---|
| Note | adjusted1) | ||
| Profi t / loss before income taxes | –1,066 | 276 | |
| Net other fi nance costs / net other fi nancial income | 102 | –17 | |
| Net income from associates | –2 | –28 | |
| Profi t / loss from operating activities (ebit) | –966 | 231 | |
| Depreciation / amortisation of non-current assets | 2,662 | 1,620 | |
| Net income from disposal of non-current assets | –76 | 67 | |
| Non-cash income and expense | 202 | 128 | |
| Change in provisions | 1,237 | –890 | |
| Change in other non-current assets and liabilities | –20 | –54 | |
| Income taxes paid | –325 | –339 | |
| Net cash from operating activities before changes in working capital | 2,714 | 763 | |
| Changes in working capital | |||
| Inventories | –58 | 47 | |
| Receivables and other current assets | 472 | 778 | |
| Liabilities and other items | 234 | –344 | |
| Net cash from operating activities due to continuing operations | 3,362 | 1,244 | |
| Net cash used in operating activities due to discontinued operations | –1,423 | –1,828 | |
| Total net cash from/used in operating activities | 49.1 | 1,939 | –584 |
| Proceeds from disposal of non-current assets | |||
| Subsidiaries and other business units | 0 | –8 | |
| Property, plant and equipment and intangible assets | 1,421 | 217 | |
| Other non-current fi nancial assets | 162 | 334 | |
| 1,583 | 543 | ||
| Cash paid to acquire non-current assets | |||
| Subsidiaries and other business units | –1,417 | –53 | |
| Property, plant and equipment and intangible assets | –1,660 | –1,174 | |
| Other non-current fi nancial assets | –92 | –229 | |
| –3,169 | –1,456 | ||
| Interest received | 570 | 103 | |
| Postbank dividend | 103 | 0 | |
| Current fi nancial assets | –1 | –659 | |
| Net cash used in investing activities due to continuing operations | –914 | –1,469 | |
| Net cash from / used in investing activities due to discontinued operations | 473 | –1,253 | |
| Total net cash used in investing activities | 49.2 | –441 | –2,722 |
| Proceeds from issuance of non-current fi nancial liabilities | 176 | 3,981 | |
| Repayments of non-current fi nancial liabilities | –497 | –587 | |
| Change in current fi nancial liabilities | –337 | –548 | |
| Other fi nancing activities | –148 | –115 | |
| Dividend paid to Deutsche Post ag shareholders | –1,087 | –725 | |
| Dividend paid to other shareholders | –80 | –34 | |
| Issuance of shares under stock option plan | 21 | 0 | |
| Interest paid | –434 | –291 | |
| Net cash used in / from fi nancing activities due to continuing operations | –2,386 | 1,681 | |
| Net cash from fi nancing activities due to discontinued operations | 918 | 7 | |
| Total net cash used in / from fi nancing activities | 49.3 | –1,468 | 1,688 |
| Net change in cash and cash equivalents | 30 | –1,618 | |
| Effect of changes in exchange rates on cash and cash equivalents | –53 | 20 | |
| Changes in cash and cash equivalents associated with assets held for sale | 2 | 0 | |
| Changes in cash and cash equivalents due to changes in consolidated group | 0 | 0 | |
| Cash and cash equivalents at beginning of reporting period | 4,683 | 4,662 | |
| Total cash and cash equivalents at end of reporting period | 49.4 | 4,662 | 3,064 |
| Less cash and cash equivalents of discontinued operations at end of reporting period | 3,416 | 0 | |
| Plus cash and cash equivalents of continuing operations at discontinued operations at end of reporting period | 104 | 0 | |
| Cash and cash equivalents of continuing operations at end of reporting period | 1,350 | 3,064 |
128
1 January to 31 December
| € m | Other reserves | Equity | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Capital | ifrs 3 revaluation |
Currency translation |
Retained | attributable to Deutsche Post ag |
Minority interest |
||||
| Issued capital | reserve ias 39 reserves | reserve | reserve | earnings | shareholders | adjusted1) | Total equity | ||
| Note | 39 | 40 | 40 | 40 | 40 | 41 | 42 | 43 | |
| Balance at 1 January 2008 | 1,207 | 2,119 | –347 | 0 | –897 | 8,953 | 11,035 | 2,778 | 13,813 |
| Capital transactions with owner | |||||||||
| Dividend | 0 | 0 | 0 | 0 | 0 | –1,087 | –1,087 | –196 | –1,283 |
| Changes in minoritiy interest due to changes in consolidated group |
0 | 0 | 0 | 0 | 0 | 0 | 0 | –86 | –86 |
| Stock option plans (exercise) | 2 | 19 | 0 | 0 | 0 | 0 | 21 | 0 | 21 |
| Stock option plans (issuance) | 0 | 4 | 0 | 0 | 0 | 0 | 4 | 0 | 4 |
| –1,062 | –282 | –1,344 | |||||||
| Total comprehensive income | |||||||||
| Consolidated net profi t | 0 | 0 | 0 | 0 | 0 | –1,688 | –1,688 | –291 | –1,979 |
| Currency translation differences | 0 | 0 | 0 | 0 | – 500 | 0 | – 500 | –2 | – 502 |
| Other changes | 0 | 0 | 33 | 8 | 0 | 0 | 41 | –177 | –136 |
| –2,147 | – 470 | –2,617 | |||||||
| Balance at 31 December 2008 | 1,209 | 2,142 | –314 | 8 | –1,397 | 6,178 | 7,826 | 2,026 | 9,852 |
| Balance at 1 January 2009 | 1,209 | 2,142 | –314 | 8 | –1,397 | 6,178 | 7,826 | 2,026 | 9,852 |
| Capital transactions with owner | |||||||||
| Dividend | 0 | 0 | 0 | 0 | 0 | – 725 | –725 | –39 | –764 |
| Changes in minoritiy interest due to changes in consolidated group |
0 | 0 | 0 | 0 | 0 | 0 | 0 | –1,896 | –1,896 |
| Share Matching Scheme | 0 | 5 | 0 | 0 | 0 | 0 | 5 | 0 | 5 |
| –720 | –1,935 | –2,655 | |||||||
| Total comprehensive income | |||||||||
| Consolidated net profi t | 0 | 0 | 0 | 0 | 0 | 644 | 644 | 49 | 693 |
| Currency translation differences | 0 | 0 | 0 | 0 | 182 | 0 | 182 | 7 | 189 |
| Other changes | 0 | 0 | 244 | –1 | 0 | 1 | 244 | – 50 | 194 |
| 1,070 | 6 | 1,076 | |||||||
| Balance at 31 December 2009 | 1,209 | 2,147 | –70 | 7 | –1,215 | 6,098 | 8,176 | 97 | 8,273 |
1) Reclassifi cation within minority interest in 2008.
| € m | 1) | 1) express |
global forwarding, 1) freight |
1) supply chain |
Corporate Center / | 1) Other |
1) Consolidation |
Continuing 1) operations |
Discontinued operations |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 Jan. to 31 Dec. | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 |
| External revenue | 14,186 | 13,502 | 13,184 | 10,008 | 13,453 | 10,257 | 13,552 | 12,362 | 99 | 72 | 0 | 0 | 54,474 | 46,201 | 11,226 | 1,634 |
| Internal revenue | 207 | 182 | 453 | 304 | 726 | 613 | 166 | 145 | 1,683 | 1,455 | –3,235 | –2,699 | 0 | 0 | 0 | 0 |
| Total revenue | 14,393 | 13,684 | 13,637 | 10,312 | 14,179 | 10,870 | 13,718 | 12,507 | 1,782 | 1,527 | –3,235 | –2,699 | 54,474 | 46,201 | 11,226 | 1,634 |
| Profi t / loss from operating activities (ebit) |
2,179 | 1,383 | –2,194 | – 807 | 362 | 191 | – 920 | –208 | –393 | –328 | 0 | 0 | – 966 | 231 | – 871 | –24 |
| Net income from associates |
0 | 2 | 2 | –1 | 0 | 8 | 0 | 0 | 0 | 19 | 0 | 0 | 2 | 28 | 0 | 0 |
| Segment assets2) | 3,683 | 3,551 | 8,870 | 8,428 | 6,887 | 6,541 | 6,287 | 5,815 | 1,377 | 1,271 | – 401 | –261 | 26,703 | 25,345 227,364 | 0 | |
| Investments in associates2) |
22 | 24 | 32 | 31 | 6 | 12 | 0 | 0 | 1 | 1,705 | 0 | 0 | 61 | 1,772 | 0 | 0 |
| Segment liabilities2), 3) | 2,384 | 2,287 | 3,150 | 2,880 | 2,275 | 2,198 | 2,903 | 2,784 | 1,244 | 1,123 | – 421 | –319 | 11,535 | 10,953 218,730 | 0 | |
| Capex | 282 | 329 | 727 | 380 | 94 | 82 | 390 | 204 | 234 | 176 | 0 | 0 | 1,727 | 1,171 | 71 | 7 |
| Depreciation, amortisation and write-downs |
346 | 321 | 542 | 489 | 105 | 108 | 1,343 | 403 | 326 | 299 | 0 | 0 | 2,662 | 1,620 | 179 | 0 |
| Other non-cash expenses |
433 | 431 | 1,950 | 1,113 | 91 | 118 | 215 | 344 | 114 | 126 | 0 | 0 | 2,803 | 2,132 | 539 | 114 |
| Employees4) | 146,184 146,021 112,420 | 99,494 | 41,602 | 40,254 141,060 136,135 | 15,450 | 14,747 | 0 | 0 456,716 436,651 | 22,175 | 0 |
| € m Europe excluding 1) Germany Germany |
1) Americas |
1) Asia Pacific |
1) Other regions |
Continuing 1) operations |
Discontinued operations |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 Jan. to 31 Dec. | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 |
| External revenue | 16,882 | 15,847 | 19,856 | 16,689 | 9,630 | 6,340 | 6,303 | 5,661 | 1,803 | 1,664 | 54,474 | 46,201 | 11,226 | 1,634 |
| Non-current assets2) | 3,997 | 3,837 | 7,598 | 7,376 | 3,256 | 3,105 | 2,968 | 2,932 | 584 | 595 | 18,403 | 17,845 | 2,373 | 0 |
| Capex | 716 | 635 | 520 | 300 | 275 | 123 | 148 | 78 | 68 | 35 | 1,727 | 1,171 | 71 | 7 |
1) Notes 5 and 10.
2) As at 31 December.
3) Including non-interest-bearing provisions. 4) Average fte.
As a listed company, Deutsche Post AG prepared its consolidated fi nancial statements in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and the provisions of commercial law to be additionally applied in accordance with Section 315 a (1) of the Handelsgesetzbuch (HGB – German commercial code). Th e fi nancial statements represent an annual fi nancial report within the meaning of the Transparenzrichtlinie-Umsetzungsgesetz (TUG – Transparency directive implementing act) (Section 37 v of the Wertpapierhandelsgesetz (WpHG – German securities trading act)) dated 5 January 2007.
Th e requirements of the Standards applied have been satisfi ed in full, and the consolidated fi nancial statements therefore provide a true and fair view of the Group's net assets, fi nancial position and results of operations.
Th e consolidated fi nancial statements consist of the income statement and the statement of comprehensive income, the balance sheet, the cash fl ow statement, the statement of changes in equity and the Notes. In order to improve the clarity of presentation, various items in the balance sheet and in the income statement have been combined. Th ese items are disclosed and explained separately in the Notes. Th e income statement has been classifi ed in accordance with the nature of expense method.
Th e accounting policies, as well as the explanations and disclosures in the Notes to the IFRS consolidated fi nancial statements for fi nancial year 2009, are generally based on the same accounting policies used in the 2008 consolidated fi nancial statements. Exceptions to this are the changes in international fi nancial reporting under the IFRS described in Note 4 that have been required to be applied by the Group since 1 January 2009 and the adjustment of prior-period amounts cited in Note 5. Th e accounting policies are explained in Note 7.
Th e fi nancial year of Deutsche Post AG and its consolidated subsidiaries is the calendar year. Deutsche Post AG, whose registered offi ce is in Bonn, Germany, is entered in the commercial register of Bonn Local Court.
Th ese consolidated fi nancial statements were authorised for issue by a resolution of the Board of Management of Deutsche Post AG dated 19 February 2010.
Th e consolidated fi nancial statements are prepared in euros (€). Unless otherwise stated, all amounts are given in millions of euros (€ million, € m).
In addition to Deutsche Post AG, the consolidated fi nancial statements for the period ended 31 December 2009 include all German and foreign companies in which Deutsche Post AG directly or indirectly holds a majority of voting rights, or whose activities it can control in some other way. Th e companies are consolidated from the date on which the Group is able to exercise control.
Th e companies listed in the table below are consolidated in addition to the parent company Deutsche Post AG.
| 2008 | 2009 | |
|---|---|---|
| Number of fully consolidated companies (subsidiaries) | ||
| German | 106 | 79 |
| Foreign | 854 | 791 |
| Number of proportionately consolidated joint ventures | ||
| German | 1 | 1 |
| Foreign | 18 | 18 |
| Number of companies accounted for using the equity method (associates) |
||
| German | 3 | 29 |
| Foreign | 12 | 23 |
Th e changes in the consolidated group are due among other things to the deconsolidation of Deutsche Postbank AG and its subsidiaries at the end of February 2009 and their inclusion in the consolidated fi nancial statements as associates as from March 2009.
Th e complete list of the Group's shareholdings in accordance with Section 313 (2) Nos. 1 to 4 and (3) of the HGB is to be found in Note 61.
As a result of contractual arrangements that took eff ect at the end of October 2008, the US company Polar Air Cargo Worldwide, Inc. (Polar Air) has been fully consolidated since November 2008. Prior to that date, Polar Air Cargo was included in the consolidated fi nancial statements as an associate. Th e preliminary purchase price allocation for this acquisition was presented in the consolidated fi nancial statements for the year ended 31 December 2008, as not all the information required for fi nal purchase price allocation was available at that time. Th is resulted in provisional goodwill of € 100 million. Final purchase price allocation was performed as at 30 September 2009 and did not result in any adjustments compared with the preliminary purchase price allocation that was previously published.
| € m | |
|---|---|
| Fair value | |
| assets | |
| Non-current assets | 1 |
| Current assets | 96 |
| Cash and cash equivalents | 41 |
| 138 | |
| equity and liabilities | |
| Non-current liabilities | 1 |
| Current liabilities | 103 |
| 104 | |
| Net assets acquired | 34 |
In fi nancial year 2009, Deutsche Post DHL made acquisitions of subsidiaries that did not have any material eff ect on the Group's net assets, fi nancial position and results of operations either individually or in the aggregate.
| € m | Carrying amount |
Adjustments | Fair value |
|---|---|---|---|
| assets | |||
| Non-current assets | 5 | 4 | 9 |
| Current assets | 9 | 0 | 9 |
| Cash and cash equivalents | 5 | 0 | 5 |
| 19 | 4 | 23 | |
| equity and liabilities | |||
| Non-current liabilities and provisions | 0 | 0 | 0 |
| Current liabilities and provisions | 15 | 0 | 15 |
| 15 | 0 | 15 | |
| Net assets | – | – | 8 |
| € m | |
|---|---|
| Fair value | |
| Acquisition cost | 54 |
| Less net assets | 8 |
| Full goodwill | 46 |
| of which minority interest | –19 |
| Goodwill | 27 |
Th e insignifi cant acquisitions in fi nancial year 2009 contributed a total of € 26 million to consolidated revenue and € –11 million to consolidated EBIT. If all the companies had been fully consolidated as at 1 January 2009, the amounts would have changed only insignifi cantly.
| € m | Carrying amount |
Adjustments | Fair value |
|---|---|---|---|
| assets | |||
| Non-current assets | 54 | 24 | 78 |
| Current assets | 118 | 0 | 118 |
| Cash and cash equivalents | 36 | 0 | 36 |
| 208 | 24 | 232 | |
| equity and liabilities | |||
| Non-current liabilities and provisions | 6 | 0 | 6 |
| Current liabilities and provisions | 125 | 0 | 125 |
| Deferred taxes | 10 | 7 | 17 |
| 141 | 7 | 148 | |
| Net assets (100%) | 84 | ||
| of which due to minorities | – | – | –29 |
| Net assets | – | – | 55 |
| Goodwill | 89 |
|---|---|
| Less net assets | 55 |
| Acquisition cost | 144 |
| Fair value | |
| € m |
Th e insignifi cant acquisitions in fi nancial year 2008 contributed a total of € 208 million to consolidated revenue. Th e companies had signifi cant service relationships with the Group. If all the companies had been fully consolidated as at 1 January 2008, the amounts would have changed only insignifi cantly.
A total of € 58 million was spent in fi nancial year 2009 on acquiring subsidiaries (previous year: € 458 million). Th e purchase prices of the acquired companies were paid by transferring cash and cash equivalents. Further information about cash fl ows can be found in Note 49.
Th e following table shows the disposal and deconsolidation eff ects of fully consolidated companies. Th e following companies were sold or deconsolidated in the period under review: Deutsche Postbank Group, Germany; DHL Global Mail Services SAS, France; DHL Container Logistics UK Ltd., UK; 4C Associates Ltd., UK.
| Disposal and deconsolidation effects of fully consolidated companies | |
|---|---|
| ---------------------------------------------------------------------- | -- |
| € m | 2008 | 2009 | |
|---|---|---|---|
| Deutsche | |||
| Other | Postbank | Other | |
| companies | Group | companies | |
| Disposal effects | |||
| Intangible assets | 0 | – | 4 |
| Property, plant and equipment | 1 | – | 12 |
| Non-current fi nancial assets | 0 | – | 10 |
| Receivables and other assets | 11 | – | 48 |
| Assets held for sale1) | 0 | 243,684 | 0 |
| Cash and cash equivalents | 2 | – | 7 |
| Provisions | –3 | – | – 4 |
| Trade payables and other liabilities | – 8 | – | – 43 |
| Financial liabilities | 0 | – | – 9 |
| Liabilities associated with assets | |||
| held for sale1) | 0 | –238,734 | 0 |
| Total consideration received | 0 | 1,194 | 3 |
| Deconsolidation gains / losses (–) | –1 | 444 | –22 |
1) Data before deconsolidation.
Sale of Deutsche Postbank shares: Th e transaction agreed for the sale of 50 million Postbank shares (fi rst tranche) to Deutsche Bank AG closed on 25 February 2009. Deutsche Bank AG received a 22.9 % interest in Deutsche Postbank AG from Deutsche Post DHL in return for 50 million Deutsche Bank shares from a capital increase. Th e Deutsche Bank AG share package was sold on the market in the period up to the beginning of July. Twenty-fi ve million shares were fully collateralised using a forward and call / put transaction. Th e additional proceeds generated from this transaction are due to Deutsche Bank AG and have been deposited with Deutsche Bank AG as collateral. Settlement for the derivatives and thus the release of the collateral will take place upon exercise of the mandatory exchangeable bond in 2012, see Note 3. Th e sale of the interest in Deutsche Postbank AG aff ected earnings in 2009 by € 571 million. Th is amount is contained in the profi t from discontinued operations and in net fi nance costs / net fi nancial income. Of this amount, € 444 million is due to the deconsolidation gain. Th e remaining 39.5 % interest in Deutsche Postbank AG is reported as an equity-accounted investment under investments in associates. For information on the other tranches, please refer to Note 3.
Th e following table provides information about the balance sheet and income statement items attributable to the signifi cant joint ventures included in the consolidated fi nancial statements:
| € m | ||
|---|---|---|
| 20081) | 20091) | |
| balance sheet | ||
| Intangible assets | 65 | 82 |
| Property, plant and equipment | 13 | 24 |
| Receivables and other assets | 37 | 50 |
| Cash and cash equivalents | 8 | 11 |
| Trade payables, other liabilities | –37 | – 50 |
| Provisions | –2 | – 4 |
| Financial liabilities | – 42 | – 62 |
| income statement | ||
| Revenue2) | 208 | 211 |
| Profi t from operating activities (ebit) | 8 | 8 |
1) Proportionate single-entity fi nancial statement data.
2) Revenue excluding intragroup revenue.
Th e consolidated joint ventures relate primarily to Express Couriers Ltd., New Zealand; Express Couriers Australia Pty Ltd., Australia; AeroLogic GmbH, Germany; and Bahwan Exel LLC, Oman.
In addition to the changes in the consolidated group cited in Note 2, the following signifi cant transactions aff ected the Group's net assets, fi nancial position and results of operations in fi nancial year 2009:
As part of the sale of Deutsche Postbank shares, see Note 2, an additional interest of 27.4 % will be transferred to Deutsche Bank AG aft er three years when a mandatory exchangeable bond on Postbank shares becomes due (second tranche). Th e mandatory exchangeable bond was issued by Deutsche Post AG in February 2009 with a maturity of 36 months and fully subscribed by Deutsche Bank AG. Th e bond will be exercised through transfer of 60 million Deutsche Postbank AG shares. Th e mandatory exchangeable bond consists of an advance payment and a forward transaction and must therefore be recognised as a prepaid forward transaction. As at 31 December 2009, a non-current liability of around € 2.6 billion plus accrued interest expense of € 103 million were recognised in the balance sheet. Th e embedded forward transaction is defi nitely excluded from the scope of IAS 39 and must be recognised as an uncompleted transaction as at the reporting date. Recognition of the forward transaction changes as of 1 January 2010; see Note 50.
In a third tranche, Deutsche Post AG and Deutsche Bank AG have agreed on options for the sale / purchase of a further 12.1 % of the Postbank shares. Th ese derivatives cannot be exercised until February 2012 at the earliest. Th e options are reported under noncurrent fi nancial assets (€ 669 million) and non-current fi nancial liabilities (€ 22 million). Net fi nance costs / net fi nancial income contains gains of € 647 million from changes in the fair value of the options. Th e carrying amount of the options fell by € 297 million due to the increase in the price of Postbank shares between initial recognition of the options and the reporting date. Deutsche Bank AG provided collateral in the amount of around € 1.2 billion for the purchase price of the remaining 12.1 % of Postbank shares, which is recognised in non-current fi nancial liabilities in addition to the interest expense. Deutsche Post AG has received a total of around € 5 billion from the sale of its interest in Postbank.
Th e insolvency proceedings for Karstadt Warenhaus GmbH and Quelle GmbH opened on 1 September 2009. Quelle GmbH has now been liquidated on the basis of a resolution by the Creditors' Meeting on 11 November 2009. In 2005, Deutsche Post acquired the logistics activities of the trading group (then known as KarstadtQuelle), including its warehouses, and entered into a tenyear agreement governing further co-operation. Despite the insolvency proceedings, Deutsche Post DHL had continued to provide all services for Karstadt and Quelle. However, an amended customer master agreement will reduce revenue and earnings projections for 2010 and beyond. Th e insolvency impacted earnings by € – 247 million in the fi nancial year.
Deutsche Post DHL withdrew from the domestic US express business with eff ect from the beginning of February 2009. Th e full range of international products remains on off er. In fi nancial year 2009, expenses were incurred for restructuring measures amounting to € 495 million (previous year: € 2,117 million).
4 New developments in international accounting under the ifrs
Th e following Standards, changes to Standards and Interpretations are required to be applied on or aft er 1 January 2009:
| Signifi cance | |
|---|---|
| ifrs 8 (Operating Segments) | relevant |
| ias 23 (Borrowing Costs) | insignifi cant |
| ifrs 2 (Share-based Payment) | insignifi cant |
| ifric 11 (ifrs 2 Group and Treasury Share Transactions) | insignifi cant |
| ifric 13 (Customer Loyalty Programmes) | insignifi cant |
| ifric 14 (ias 19 – The Limit on a Defi ned Benefi t Asset, | |
| Minimum Funding Requirements and their Interaction) | insignifi cant |
| ias 1 (Presentation of Financial Statements) | relevant |
| ias 32 (Financial Instruments) | insignifi cant |
| ifrs 1 (First-Time Adoption of International Financial Reporting Standards) and ias 27 (Consolidated and |
|
| Separate Financial Statements) | irrelevant |
| Improvements to ifrs (2008) | insignifi cant |
| ifrs 7 (Improved Disclosures Regarding Financial Instruments) | relevant |
| ifric 9 (Reassessment of Embedded Derivatives) | |
| and ias 39 (Financial Instruments: Recognition and Measurement) | irrelevant |
IFRS 8 (Operating Segments), which supersedes the previous IAS 14 (Segment Reporting), contains new provisions relating to the presentation of segment reporting. IFRS 8 requires segment reporting to be based on the management approach. Under this approach, the defi nition of the segments and the disclosures for each segment are based on the information used internally by management for the purposes of allocating resources to the components of the entity and assessing their performance. For information on the eff ects of the application of IFRS 8, please refer to Note 10.
IFRIC 14 (IAS 19 – Th e Limit on a Defi ned Benefi t Asset, Minimum Funding Requirements and their Interaction) supplements the existing provisions of IAS 19 relating to the limit on the measurement of a defi ned benefi t asset known as the asset ceiling (IAS 19.58 ff .). In addition, the Interpretation sets out how the requirement to limit a defi ned benefi t asset should be applied in the event of statutory or contractual minimum funding requirements. Deutsche Post's accounting practice to date already complied with the provisions of this Interpretation, meaning there were no material eff ects on the consolidated fi nancial statements.
Th e revision of IAS 1 (Presentation of Financial Statements) is intended to improve users' ability to analyse and compare the information given in fi nancial statements. Th e changes relate mainly to revised designations for the income statement, balance sheet and cash fl ow statement, the introduction of a statement of certain changes in equity (statement of comprehensive income) and the obligation to publish an opening balance sheet for the earliest period presented that is aff ected by a retrospective change of accounting policy or restatement. Th ese changes have been applied.
On 5 March 2009, the IASB published amendments to IFRS 7 (Improved Disclosures Regarding Financial Instruments). Th ese amendments provide for more extensive disclosures about the measurement of fi nancial instruments at fair value and about liquidity risk. Th e amendments are required to be applied for fi nancial years that begin on or aft er 1 January 2009. However, no comparative prior-year information is required with respect to the additional disclosure requirements on fi rst-time application.
Th e following Standards, changes to Standards and Interpretations have already been endorsed by the European Union. However, they will only be required to be applied in the future.
| Applicable for fi nancial years beginning on or after |
Signifi cance | |
|---|---|---|
| ifric 12 (Service Concession Arrangements) | 30 March 2009 | irrelevant |
| ifric 16 (Hedges of a Net Investment in a Foreign Operation) |
30 June 2009 | applied prior to the effective date |
| ifric 17 (Distributions of Non-cash Assets to Owners) |
31 October 2009 | irrelevant |
| ifrs 3 (Business Combinations) and ias 27 (Con solidated and Separate Financial Statements) |
1 July 2009 | relevant |
| ifric 15 (Agreements for the Construction of Real Estate) |
1 January 2010 | irrelevant |
| ias 39 (Financial Instruments: Recognition and Measurement) |
1 July 2009 | under review |
| ifrs 1 (First-Time Adoption of International Financial Reporting Standards) |
31 December 2009 |
irrelevant |
| ifric 18 (Transfers of Assets from Customers) | 1 July 2009 | irrelevant |
| ias 32 (Financial Instruments: Presentation) | 1 February 2010 | under review |
IFRIC 16 (Hedges of a Net Investment in a Foreign Operation) clarifi es that the foreign currency risk arising between the functional currency of the foreign operation and the functional currency of a parent entity may be designated as a hedged risk. Th e hedging instruments may be held by any entity within the Group. Foreign currency diff erences arising from the measurement of the hedging instrument must be recognised in other comprehensive income in accordance with IAS 39. Th e date at which gains and losses are reclassifi ed from other comprehensive income to profi t or loss is governed by IAS 21. Th e Interpretation must be applied prospectively. IFRIC 16 will have no eff ect on the consolidated fi nancial statements since hedges of a net investment in a foreign operation already comply with the provisions of the Interpretation.
Th e revised versions of IFRS 3 (Business Combinations) and IAS 27 (Consolidated and Separate Financial Statements) contain the following changes: an option is introduced in the case of accounting for acquisitions of less than 100 % of the shares of an entity. Th is allows minority interests to be measured either at their fair value (full goodwill method) or at the fair value of the proportionate net assets identifi ed. In addition, acquisitions and partial disposals of shares where control is retained are accounted for as equity transactions with owners, and gains or losses are not recognised. Th e full amount of the transaction costs associated with the acquisition is recorded as an expense. Application of the amendments is mandatory for business combinations in fi nancial years beginning on or aft er 1 July 2009. As from fi nancial year 2010, business combinations will be treated in accordance with the two amended Standards, which will have a corresponding eff ect on the consolidated fi nancial statements.
In July 2008, amendments to IAS 39 (Financial Instruments: Recognition and Measurement) were published relating to eligible hedged items in the context of hedge accounting. Th e purpose of the amendments was to provide guidance for use in designating hedging instruments, since inconsistencies occur in practice in particular with respect to accounting for one-sided risks and for infl ation as a component of a hedged item. Retrospective application of the amendments is mandatory for fi nancial years beginning on or aft er 1 July 2009. Th e eff ects on the consolidated fi nancial statements are currently being assessed.
On 8 October 2009, the IASB issued an amendment to IAS 32 (Financial Instruments: Presentation) on the classifi cation of rights issues. Th is supplements IAS 32 to the eff ect that rights, options and warrants on a fi xed number of the entity's own equity instruments for a fi xed amount of any currency are equity instruments if they are off ered pro rata to all existing owners of the same class of equity instruments. Th e amendment is required to be applied for fi nancial years beginning on or aft er 1 February 2010. Earlier application is permitted. Th e eff ects on the consolidated fi nancial statements are currently being assessed.
Th e IASB and the IFRIC issued further Standards and Interpretations in 2009 whose application is not yet mandatory for fi nancial year 2009. Th e application of these IFRS is dependent on their adoption by the EU.
| Issue date | Applicable for fi nancial years beginning on or after |
Signifi cance | |
|---|---|---|---|
| Improvements to ifrs (2009) | April 2009 | 1 January 2010 | relevant |
| ifrs 2 (Share-based Payment) | June 2009 | 1 January 2010 | under review |
| ias 24 (Related Party Disclosures) |
November 2009 | 1 January 2011 | relevant |
| ifrs 9 (Financial Instruments) | November 2009 | 1 January 2013 | under review |
| ifric 19 (Extinguishing Financial Liabilities with Equity Instruments) |
November 2009 | 1 July 2010 | under review |
| ifrs for Small and Medium-sized Enterprises (ifrs for sme) |
July 2009 | 1 January 2010 | irrelevant |
| ifrs 1 (First-Time Adoption of International Financial Reporting Standards) |
|||
| (Amendment) | July 2009 | 1 January 2010 | irrelevant |
On 16 April 2009, the IASB issued further additional minor Improvements to IFRS. Th is Standard contains a number of diff erent amendments aff ecting 12 existing IFRS. Th e majority of changes apply for fi nancial years beginning on or aft er 1 January 2010. However, some amendments must be applied for fi nancial years beginning on or aft er 1 July 2009. With the entry into force as at 1 January 2010 of the revised IAS 39, the forward transaction for 27.4 % of Postbank's shares, which was previously not recognised in the exchangeable bond (see Note 3) due to IAS 39.2 (g), will be recognised in income at its fair value of € 1,453 million. Th e volatilities already seen in recent months in Deutsche Post DHL's net fi nance costs / net fi nancial income could increase as a result of the amendments to IAS 39. Th e eff ects of the other amendments are currently being assessed.
On 18 June 2009, the IASB issued amendments to IFRS 2 (Share-based Payment), which clarify the accounting treatment of Group cash-settled share-based transactions. Th e amendments set out basic principles that have amended the scope of, and a number of the defi nitions contained in, IFRS 2. Th e amendments shall be applied retrospectively for annual periods beginning on or aft er 1 January 2010. Th e eff ects on the consolidated fi nancial statements are currently being assessed.
On 4 November 2009, the IASB issued the revised Standard IAS 24 (Related Party Disclosures). Th e amendments primarily comprise a modifi ed defi nition of the term "related party" and the introduction of a partial exemption from the disclosure requirements for government-related entities. In addition, the amendments make clear that executory contracts are also reportable transactions. Th e revised version of IAS 24 is required to be applied for fi nancial years beginning on or aft er 1 January 2011. Earlier application is permitted, either of the whole Standard or of the partial exemption for government-related entities. Th e amendment will result in additional disclosure requirements.
On 12 November 2009, the IASB issued IFRS 9 (Financial Instruments), the objective of which is to lay down principles for the classifi cation and measurement of fi nancial instruments. Publication of the Standard represents the conclusion of the fi rst part of a three-phase project to replace IAS 39 (Financial Instruments: Recognition and Measurement) with a new Standard. IFRS 9 introduces new guidance for the classifi cation and measurement of fi nancial assets. Th is guidance must be applied for the fi rst time for fi nancial years beginning on or aft er 1 January 2013. Earlier application is permitted. Th e IASB aims to extend IFRS 9 in 2010 to include new guidance governing the classifi cation and measurement of fi nancial liabilities, the derecognition of fi nancial instruments, impairment methodology and hedge accounting. IFRS 9 should replace IAS 39 in its entirety by the end of 2010. Developments at the European Commission must be awaited; the corresponding eff ects on the Group are being assessed.
IFRIC 19 (Extinguishing Financial Liabilities with Equity Instru ments) was issued on 26 November 2009. Th is Interpretation addresses the accounting by an entity when the terms of a liability are renegotiated and result in the entity issuing equity instruments to a creditor of the entity to extinguish all or part of the fi nancial liability. Th e guidance is to be applied for fi nancial years beginning on or aft er 1 July 2010. Th e eff ects on the consolidated fi nancial statements are currently being assessed.
Th e revised chart of accounts has improved balance sheet transparency with respect to fi nancial assets and liabilities. Th e prior-period amounts were adjusted accordingly. Further information can be found in the relevant Notes.
| € m | 31 Dec. 2008 Adjustments 31 Dec. 2008 | |||
|---|---|---|---|---|
| adjusted | Note | |||
| Non-current fi nancial assets | 574 | 144 | 718 | 30 |
| Other non-current assets | 514 | –144 | 370 | 31 |
| Receivables and other | ||||
| current assets | 8,715 | – 634 | 8,081 | 35 |
| Current fi nancial assets | 50 | 634 | 684 | 36 |
| Non-current fi nancial | ||||
| liabilities | 3,318 | 134 | 3,452 | 46 |
| Other non-current liabilities | 367 | –134 | 233 | 47 |
| Current fi nancial liabilities | 779 | 643 | 1,422 | 46 |
| Other current liabilities | 4,745 | – 679 | 4,066 | 47 |
| Trade payables | 4,980 | 36 | 5,016 | 48 |
| € m | 1 Jan. 2008 Adjustments | 1 Jan. 2008 | ||
|---|---|---|---|---|
| adjusted | Note | |||
| Non-current fi nancial assets | 857 | 128 | 985 | 30 |
| Other non-current assets | 497 | –128 | 369 | 31 |
| Receivables and other | ||||
| current assets | 9,806 | –130 | 9,676 | 35 |
| Current fi nancial assets | 72 | 130 | 202 | 36 |
| Non-current fi nancial | ||||
| liabilities | 8,625 | 213 | 8,838 | 46 |
| Other non-current liabilities | 361 | –213 | 148 | 47 |
| Current fi nancial liabilities | 1,556 | 130 | 1,686 | 46 |
| Other current liabilities | 5,101 | –199 | 4,902 | 47 |
| Trade payables | 5,384 | 69 | 5,453 | 48 |
Since fi nancial year 2009 the expected return on plan assets has been reported together with the interest component of pension expenses under net fi nance costs / net fi nancial income. Th is revised presentation brings it into line with the generally accepted procedure and thus increases the comparability of the fi nancial statements. Th e prior-period amounts were adjusted accordingly.
In addition, with eff ect from January 2009, the eff ects of currency translation diff erences and related hedging eff ects have been reported separately in net fi nance costs / net fi nancial income, thus increasing transparency. Th e prior-period amounts were adjusted accordingly.
| € m | Reclassi | |||
|---|---|---|---|---|
| Reclassi | fi cation | |||
| fi cation | of currency | |||
| 2008 | of return on | translation | 2008 | |
| plan assets | effects | adjusted | ||
| Staff costs | –17,990 | –399 | – | –18,389 |
| Net other fi nance costs/net | ||||
| other fi nancial income | – 501 | 399 | – | –102 |
| Other fi nancial income | 621 | – | –23 | 598 |
| Other fi nance costs | –1,122 | 399 | 9 | –714 |
| Foreign currency result | – | – | 14 | 14 |
Th e fi nancial statements of consolidated companies prepared in foreign currencies are translated into euros (€) in accordance with IAS 21 using the functional currency method. Th e functional currency of foreign companies is determined by the primary economic environment in which they mainly generate and use cash. Within the Group, the functional currency is predominantly the local currency. In the consolidated fi nancial statements, assets and liabilities are therefore translated at the closing rates, whilst income and expenses are generally translated at the monthly closing rates. Th e resulting currency translation diff erences are recognised in other comprehensive income. In fi nancial year 2009, currency translation diff erences amounting to € 182 million (previous year: € –500 million) were recognised in other comprehensive income (see the statement of comprehensive income and statement of changes in equity).
Goodwill arising from business combinations aft er 1 January 2005 is treated as an asset of the acquired company and therefore carried in the functional currency of the acquired company.
Th e exchange rates for the currencies that are signifi cant for the Group were as follows:
| Closing rates | Average rates | ||||
|---|---|---|---|---|---|
| Currency | Country | 2008 EUR 1 = |
2009 EUR 1 = |
2008 EUR 1 = |
2009 EUR 1 = |
| usd | usa | 1.40920 | 1.440 | 1.47418 | 1.39638 |
| chf | Switzerland | 1.48967 | 1.48486 | 1.57921 | 1.50818 |
| gbp | United Kingdom | 0.97230 | 0.89330 | 0.80463 | 0.89054 |
| sek | Sweden | 10.92292 | 10.26871 | 9.68703 | 10.59062 |
Th e carrying amounts of non-monetary assets recognised at consolidated companies operating in hyperinfl ationary economies are generally indexed in accordance with IAS 29 and thus refl ect the current purchasing power at the balance sheet date.
In accordance with IAS 21, receivables and liabilities in the fi nancial statements of consolidated companies that have been prepared in local currencies are translated at the closing rate as at the balance sheet date. Currency translation diff erences are recognised in other operating income and expenses in the income statement. In fi nancial year 2009, income of € 161 million (previous year: € 269 million) and expenses of € 163 million (previous year: € 269 million) resulted from currency translation diff erences. In contrast, currency translation diff erences relating to net investments in a foreign operation are recognised in other comprehensive income.
Th e consolidated fi nancial statements are prepared on the basis of historical cost, with the exception of specifi c fi nancial instruments to be recognised at their fair value.
Deutsche Post DHL's normal business operations consist of the provision of logistics services. All income relating to normal business operations is recognised as revenue in the income statement. All other income is reported as other operating income. Revenue and other operating income is generally recognised when services are rendered, the amount of revenue and income can be reliably measured and in all probability the economic benefi ts from the transactions will fl ow to the Group. Operating expenses are recognised in income when the service is utilised or when the expenses are incurred.
Intangible assets are measured at amortised cost. Intangible assets comprise internally generated and purchased intangible assets and purchased goodwill.
Internally generated intangible assets are capitalised at cost if it is probable that their production will generate an infl ow of future economic benefi ts and the costs can be reliably measured. In the Group, this concerns internally developed soft ware. If the criteria for capitalisation are not met, the expenses are recognised immediately in income in the year in which they are incurred. In addition to direct costs, the production cost of internally developed soft ware includes an appropriate share of allocable production overhead costs. Any borrowing costs incurred for qualifying assets are included in the production cost. Value added tax arising in conjunction with the acquisition or production of intangible assets is included in the cost if it cannot be deducted as input tax. Capitalised soft ware is amortised using the straight-line method over useful lives of between two to fi ve years.
Intangible assets are amortised using the straight-line method over their useful lives. Licences are amortised over the term of the licence agreement. Capitalised customer relationships are amortised using the straight-line method over a period of 5 to 18 years. Impairment losses are recognised in accordance with the principles described in the section headed "Impairment".
Intangible assets with indefi nite useful lives (e. g. brand names) are not amortised but are tested for impairment annually or whenever there are indications of impairment. Impairment testing is carried out in accordance with the principles described in the section headed "Impairment".
Property, plant and equipment is carried at cost, reduced by accumulated depreciation and valuation allowances. In addition to direct costs, production cost includes an appropriate share of allocable production overheads. Borrowing costs that can be allocated directly to the purchase, construction, or manufacture of property, plant and equipment are capitalised. Value added tax arising in conjunction with the acquisition or production of items of property, plant or equipment is included in the cost if it cannot be deducted as input tax. Depreciation is generally charged using the straight-line method. Th e Group uses the estimated useful lives indicated below for depreciation. If there are indications of impairment, the principles described in the section headed "Impairment" are applied.
| 2008 | 2009 |
|---|---|
| 5 to 50 | 5 to 50 |
| 3 to 10 | 3 to 10 |
| 4 to 6 | 4 to 6 |
| 5 to 8 | 5 to 8 |
| 15 to 20 | 15 to 20 |
| 3 to 8 | 3 to 8 |
| 3 to 8 | 3 to 8 |
| 3 to 10 | 3 to 10 |
At each balance sheet date, the carrying amounts of intangible assets, property, plant and equipment, and investment property are reviewed for indications of impairment. If there are any such indications, an impairment test must be carried out. Th is is done by determining the recoverable amount of the relevant asset and comparing it with the carrying amount.
In accordance with IAS 36, the recoverable amount is the asset's fair value less costs to sell or its value in use, whichever is higher. Th e value in use is the present value of the pre-tax cash fl ows expected to be derived from the asset in future. Th e discount rate used is a pre-tax rate of interest refl ecting current market conditions. If the recoverable amount cannot be determined for an individual asset, the recoverable amount is determined for the smallest identifi able group of assets to which the asset in question can be allocated and which generates independent cash fl ows (cash generating unit – CGU). If the recoverable amount of an asset is lower than its carrying amount, an impairment loss is recognised immediately in respect of the asset. If, aft er an impairment loss has been recognised, a higher recoverable amount is determined for the asset or the CGU at a later date, the impairment loss is reversed up to a carrying amount that does not exceed the recoverable amount. Th e increased carrying amount attributable to the reversal of the impairment loss is limited to the carrying amount that would have been determined (net of amortisation or depreciation) if no impairment loss had been recognised in the past. Th e reversal of the impairment loss is recognised in the income statement. Impairment losses recognised in respect of goodwill may not be reversed.
Since January 2005, goodwill has been accounted for using the impairment-only approach in accordance with IFRS 3. Th is stipulates that goodwill must be subsequently measured at cost, less any cumulative adjustments from impairment losses. Purchased goodwill is therefore no longer amortised and instead is tested for impairment annually in accordance with IAS 36, regardless of whether any indication of possible impairment exists, as in the case of intangible assets with an indefi nite useful life. In addition, the obligation remains to conduct an impairment test if there is any indication of impairment. Goodwill resulting from company acquisitions is allocated to the identifi able groups of assets (CGU or groups of CGU) that are expected to benefi t from the synergies of the acquisition. Th ese groups represent the lowest reporting level at which the goodwill is monitored for internal management purposes. Th e carrying amount of a CGU to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the unit may be impaired. Where impairment losses are recognised in connection with a CGU to which goodwill has been allocated, the existing carrying amount of the goodwill is reduced fi rst. If the amount of the impairment loss exceeds the carrying amount of the goodwill, the diff erence is allocated to the remaining non-current assets in the CGU.
A lease fi nancing transaction is an agreement in which the lessor conveys to the lessee the right to use an asset for a specifi ed period in return for a payment or a number of payments. In accordance with IAS 17, benefi cial ownership of leased assets is attributed to the lessee if the lessee bears substantially all risks and rewards incident to ownership of the leased asset. To the extent that benefi cial ownership is attributable to the Group, the asset is capitalised at the date on which use starts, either at fair value or at the present value of the minimum lease payments if this is less than the fair value. A lease liability in the same amount is recognised under noncurrent liabilities. Th e lease is measured subsequently at amortised cost using the eff ective interest method. Th e depreciation methods and estimated useful lives correspond to those of comparable purchased assets.
For operating leases, the Group reports the leased asset at amortised cost as an asset under property, plant and equipment where it is the lessor. Th e lease payments recognised in the period are shown under other operating income. Where the Group is the lessee, the lease payments made are recognised as lease expense under materials expense. Lease expenses and income are recognised using the straight-line method.
Investments in associates are accounted for using the equity method in accordance with IAS 28 (Accounting for Investments in Associates). Based on the cost of acquisition at the time of purchase of the investments, the carrying amount of the investment is increased or reduced annually to refl ect the share of earnings, dividends distributed and other changes in the equity of the associates attributable to the investments of Deutsche Post AG or its consolidated subsidiaries. Th e goodwill contained in the carrying amounts of the investments is accounted for in accordance with IFRS 3. Investments in companies accounted for using the equity method are impaired if the recoverable amount falls below the carrying amount.
A fi nancial instrument is any contract that gives rise to a fi nancial asset of one entity and a fi nancial liability or equity instrument of another entity. Financial assets include in particular cash and cash equivalents, trade receivables, originated loans and receivables, and derivative fi nancial assets held for trading. Financial liabilities include contractual obligations to deliver cash or another fi nancial asset to another entity. Th ese mainly comprise trade payables, liabilities to banks, liabilities arising from bonds and fi nance leases, and derivative fi nancial liabilities.
Th e Group applied the fair value option for the fi rst time for fi nancial year 2006. Under this option, fi nancial assets or fi nancial liabilities may be measured at fair value through profi t or loss on initial recognition if this eliminates or signifi cantly reduces a measurement or recognition inconsistency (accounting mismatch). Th e Group makes use of the option in order to avoid accounting mismatches.
Financial assets are accounted for in accordance with the provisions of IAS 39, which distinguishes between four categories of fi nancial instruments.
Th ese fi nancial instruments are non-derivative fi nancial assets and are carried at their fair value, where this can be measured reliably. If a fair value cannot be determined, they are carried at cost. Changes in fair value between reporting dates are generally recognised in other comprehensive income (revaluation reserve). Th e reserve is reversed to income either upon disposal or if the fair value falls below cost more than temporarily. If, at a subsequent balance sheet date, the fair value of a debt instrument has increased objectively as a result of events occurring aft er the impairment loss was recognised, the impairment loss is reversed in the appropriate amount. Impairment losses recognised in respect of equity instruments may not be reversed to income. If equity instruments are recognised at fair value, any reversals must be recognised in other comprehensive income. No reversals may be made in the case of equity instruments that were recognised at cost. Available-for-sale fi nancial instruments are allocated to non-current assets unless the intention is to dispose of them within 12 months of the balance sheet date. In particular, investments in unconsolidated subsidiaries, marketable securities and other equity investments are reported in this category.
Financial instruments are assigned to this category if there is an intention to hold the instrument to maturity and the economic conditions for doing so are met. Th ese fi nancial instruments are non-derivative fi nancial assets that are measured at amortised cost using the eff ective interest method.
Th ese are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted on an active market. Unless held for trading, they are recognised at cost or amortised cost at the balance sheet date. Th e carrying amounts of money market receivables correspond approximately to their fair values due to their short maturity. Loans and receivables are considered current assets if they mature not more than 12 months aft er the balance sheet date; otherwise, they are recognised as non-current assets. If the recoverability of receivables is in doubt, they are recognised at amortised cost, less appropriate specifi c or collective valuation allowances. A write-down on trade receivables is recognised if there are objective indications that the amount of the outstanding receivable cannot be collected in full. Th e write-down is recognised in the income statement via a valuation account.
Financial assets at fair value through profi t or loss
All fi nancial instruments held for trading and derivatives that do not satisfy the criteria for hedge accounting are assigned to this category. Th ey are generally measured at fair value. All changes in fair value are recognised in income. All fi nancial instruments in this category are accounted for at the trade date. Assets in this category are recognised as current assets if they are either held for trading or will likely be realised within 12 months of the balance sheet date.
To avoid variations in net profi t resulting from changes in the fair value of derivative fi nancial instruments, hedge accounting is applied where possible and economically useful. Gains and losses from the derivative and the related hedged item are recognised in income simultaneously. Depending on the hedged item and the risk to be hedged, the Group uses fair value hedges and cash fl ow hedges.
Th e carrying amounts of fi nancial assets not carried at fair value through profi t or loss are tested for impairment at each balance sheet date and whenever there are indications of impairment. Th e amount of any impairment loss is determined by comparing the carrying amount and the fair value. If there are objective indications of impairment, an impairment loss is recognised in the income statement under other operating expenses or net fi nance costs / net fi nancial income. Impairment losses are reversed if there are objective reasons arising aft er the balance sheet date indicating that the reasons for impairment no longer exist. Th e increased carrying amount resulting from the reversal of the impairment loss may not exceed the carrying amount that would have been determined (net of amortisation or depreciation) if the impairment loss had not been recognised.
Impairment losses are recognised within the Group if the debtor is experiencing signifi cant fi nancial diffi culties, it is highly probable that the debtor will be the subject of bankruptcy proceedings, there are material changes in the issuer's technological, economic, legal, or market environment, or the fair value of a fi nancial instrument falls below its amortised cost for a prolonged period.
A fair value hedge hedges the fair value of recognised assets and liabilities. Changes in the fair value of both the derivatives and the hedged item are recognised in income simultaneously.
A cash fl ow hedge hedges the fl uctuations in future cash fl ows from recognised assets and liabilities (in the case of interest rate risks), highly probable forecast transactions as well as unrecognised fi rm commitments that entail a currency risk. Th e eff ective portion of a cash fl ow hedge is recognised in the hedging reserve in equity. Ineff ective portions resulting from changes in the fair value of the hedging instrument are recognised directly in income. Th e gains and losses generated by the hedging transactions are initially recognised in equity and are then reclassifi ed to profi t or loss in the period in which the asset acquired or liability assumed aff ects profi t or loss. If a hedge of a fi rm commitment subsequently results in the recognition of a non-fi nancial asset, the gains and losses recognised directly in equity are included in the initial carrying amount of the asset (basis adjustment).
Net investment hedges in foreign entities are treated in the same way as cash fl ow hedges. Th e gain or loss from the eff ective portion of the hedge is recognised in other comprehensive income, whilst the gain or loss attributable to the ineff ective portion is recognised directly in income. Th e gains or losses recognised in other comprehensive income remain there until the disposal or partial disposal of the net investment. Detailed information on hedging transactions can be found in Note 50.2.
Regular way purchases and sales of fi nancial assets are recognised at the settlement date, with the exception of held-for-trading instruments, particularly derivatives. A fi nancial asset is derecognised if the rights to receive the cash fl ows from the asset have expired. Upon transfer of a fi nancial asset, a review is made under the requirements of IAS 39 governing disposal as to whether the asset should be derecognised. A disposal gain / loss arises upon disposal. Th e remeasurement gains / losses recognised in other comprehensive income in prior periods must be reversed as at the disposal date. Financial liabilities are derecognised if the payment obligations arising from them have expired.
In accordance with IAS 40, investment property is property held to earn rentals or for capital appreciation or both, rather than for use in the supply of services, for administrative purposes, or for sale in the normal course of the company's business. It is measured in accordance with the cost model. Depreciable investment property is depreciated over a period of between 5 and 50 years. Th e fair value is determined on the basis of expert opinions. Impairment losses are recognised in accordance with the principles described under the section headed "Impairment".
Inventories are assets that are held for sale in the ordinary course of business, are in the process of production, or are consumed in the production process or in the rendering of services. Th ey are measured at the lower of cost or net realisable value. Valuation allowances are charged for obsolete inventories and slowmoving goods.
In accordance with IAS 20, government grants are recognised at their fair value only when there is reasonable assurance that the conditions attaching to them will be complied with and that the grants will be received. Th e grants are reported in the income statement and are generally recognised as income over the periods in which the costs they are intended to compensate are incurred. Where the grants relate to the purchase or production of assets, they are reported as deferred income and recognised in the income statement over the useful lives of the assets.
Assets held for sale are assets available for sale in their present condition and whose sale is highly probable. Th e sale must be expected to qualify for recognition as a completed sale within one year of the date of classifi cation. Assets held for sale may consist of individual non-current assets, groups of assets (disposal groups), or components of an entity (discontinued operations). Liabilities intended to be disposed of together with the assets in a single transaction form part of the disposal group or discontinued operation and are also reported separately as liabilities associated with assets held for sale. Assets held for sale are no longer depreciated or amortised, but are recognised at the lower of their fair value less costs to sell and the carrying amount. Gains and losses arising from the remeasurement of individual non-current assets or disposal groups classifi ed as held for sale are reported in profi t or loss from continuing operations until the fi nal date of disposal. Gains and losses arising from the measurement to fair value less costs to sell of discontinued operations classifi ed as held for sale are reported in profi t or loss from discontinued operations. Th is also applies to the profi t or loss from operations and the gain or loss on disposal of these components of an entity.
Cash and cash equivalents comprise cash, demand deposits and other short-term liquid fi nancial assets with an original maturity of up to three months and are carried at their principal amount. Overdraft facilities used are recognised in the balance sheet as amounts due to banks.
In accordance with IFRS 2, the stock option plans for executives and the new executive bonus programme are measured using investment techniques based on option pricing models. Th e objective is to determine a fair value for the options. A stochastic simulation model (Monte Carlo simulation) is used for this purpose; this assumes a logarithmic normal distribution of the returns on Deutsche Post shares and the Dow Jones Euro STOXX Total Return Index. Th e options are measured at fair value on the grant date. Th e fair value thus calculated for options that will probably be exercisable is recognised in income under staff costs and allocated over the period until the options vest. Stock appreciation rights issued to members of the Board of Management and executives are measured on the basis of an equivalent option pricing model in accordance with IFRS 2. Th e stock appreciation rights are measured on each reporting date and on the settlement date. Th e amount determined for stock appreciation rights that will probably not lapse is recognised pro rata in income under staff costs to refl ect the services rendered as consideration during the vesting period (lock-up period). A provision is recognised for the same amount.
In a number of countries, the Group maintains defi ned benefi t pension plans based on the pensionable compensation and length of service of employees. Th ese pension plans are funded via external plan assets and provisions for pensions and other employee benefi ts. Pension obligations are measured using the projected unit credit method prescribed by IAS 19 for defi ned benefi t plans. In accordance with IAS 19.92, actuarial gains and losses are recognised only to the extent that they exceed the greater of 10 % of the present value of the obligations or of the fair value of plan assets. Th e excess is allocated over the expected remaining working lives of the active employees and recognised in income. Th e interest expense and expected return on plan assets components of the pension expense have been reported under net fi nance costs / net fi nancial income since January 2009; the prior-period amounts were adjusted accordingly.
Th e Group also contributes to a number of defi ned contribution pension plans. Contributions to these pension plans are recognised as staff costs when they fall due. In 2009, employer contributions amounting to € 189 million were paid in respect of these plans (previous year, adjusted: € 152 million, excluding Deutsche Postbank Group).
Pension plans for civil servant employees in Germany
In addition to the state pension system operated by the statutory pension insurance funds, to which contributions for hourly workers and salaried employees are remitted in the form of non-wage costs, Deutsche Post AG pays contributions to defi ned contribution plans for civil servants in accordance with statutory provisions.
Until 2000, Deutsche Post AG operated a separate pension fund for its active and former civil servant employees. Th is fund was merged with the pension funds of Deutsche Telekom AG and Deutsche Postbank AG to form the joint special pension fund Bundes-Pensions-Service für Post und Telekommunikation e.V. (BPS-PT).
Under the provisions of the Gesetz zur Neuordnung des Postwesens und der Telekommunikation (PTNeuOG – German posts and telecommunications reorganisation act), Deutsche Post AG makes benefi t and assistance payments from a special pension fund to retired employees or their surviving dependants who are entitled to benefi ts on the basis of a civil service appointment. Th e amount of Deutsche Post AG's payment obligations is governed by Section 16 of the Postpersonalrechtsgesetz ( Deutsche Bundespost former employees act). Since 2000, Deutsche Post AG has been legally obliged to pay into this special pension fund an annual contribution of 33 % of the pensionable gross compensation of active civil servants and the notional pensionable gross compensation of civil servants on leave of absence. In the year under review, Deutsche Post AG paid contributions of € 559 million (previous year: € 557 million) to Bundes-Pensions-Service für Post und Telekommunikation e.V.
Under the PTNeuOG, the federal government takes appropriate measures to make good the diff erence between the current payment obligations of the special pension fund on the one hand, and Deutsche Post AG's current contributions or the return on assets on the other, and guarantees that the special pension fund is able at all times to meet the obligations it has assumed in respect of its funding companies. Insofar as the federal government makes payments to the special pension fund under the terms of this guarantee, it cannot claim reimbursement from Deutsche Post AG.
Pension plans for hourly workers and salaried employees
Th e benefi t obligations for the Group's hourly workers and salaried employees relate primarily to pension obligations in Germany and signifi cant funded obligations in the UK, the Netherlands, Switzerland and the USA. Th ere are various commitments to individual groups of employees. Th e commitments usually depend on length of service and fi nal salary (e. g. the UK), are based on the amount of contributions paid (e. g. Switzerland), or take the form of a fl at-rate contribution system (e. g. Germany). Th e obligations for defi ned benefi t plans are measured using the projected unit credit method prescribed by IAS 19. Future obligations are determined using actuarial principles and on the basis of actuarial and economic assumptions. Th e expected benefi ts are built up over the entire length of service of the employees, taking into account changes in key parameters.
A large proportion of the defi ned benefi t obligations in Germany relate to Deutsche Post AG. Deutsche Post AG established a pension fund on 30 December 2009. Pension obligations of Deutsche Post AG were transferred to this fund along with € 650 million worth of assets. Th is measure did not change either the amount of the total obligation or the funded status at Deutsche Post AG.
In the USA, existing defi ned benefi t pension plans were closed as at 31 December 2009 and converted to defi ned contribution pension plans for service periods as from 2010.
Other provisions are recognised for all legal or constructive obligations to third parties existing at the balance sheet date that have arisen as a result of past events, that are expected to result in an outfl ow of future economic benefi ts and whose amount can be measured reliably. Th ey represent uncertain obligations that are carried at the best estimate of the expenditure required to settle the obligation. Provisions with more than one year to maturity are discounted at market rates of interest that refl ect the risk, region and time to settlement of the obligation. Th e discount rates used in the fi nancial year were between 1 % and 12.75 % (previous year: 2 % to 19.50 %).
Provisions for restructurings are only established – in accordance with the above-mentioned criteria for recognition – if a detailed, formal restructuring plan has been drawn up and communicated to those aff ected.
Th e technical reserves (insurance) consist mainly of outstanding loss reserves and IBNR (incurred but not reported claims) reserves. Outstanding loss reserves represent estimates of ultimate obligations in respect of actual claims or known incidents expected to give rise to claims, which have been reported to the company but which have yet to be fi nalised and presented for payment. Outstanding loss reserves are based on individual claim valuations carried out by the company or its ceding insurers. IBNR reserves represent estimates of ultimate obligations in respect of incidents taking place on or before the balance sheet date that have not been reported to the company but will nonetheless give rise to claims in the future. Such reserves also include provisions for potential errors in settling outstanding loss reserves. Th e company carries out its own assessment of ultimate loss liabilities using actuarial methods and also commissions an independent actuarial study of these each year in order to verify the reasonableness of its estimates.
On initial recognition, fi nancial liabilities are carried at fair value less transaction costs. Th e price determined on a price- effi cient and liquid market or a fair value determined using the treasury risk management system deployed within the Group is taken as the fair value. In subsequent periods the fi nancial liabilities are measured at amortised cost. Any diff erences between the amount received and the amount repayable are recognised in income over the term of the loan using the eff ective interest method.
Trade payables and other liabilities are carried at amortised cost. Th e fair value of the liabilities corresponds more or less to their carrying amount.
In accordance with IAS 12, deferred taxes are recognised for temporary diff erences between the carrying amounts in the IFRS fi nancial statements and the tax accounts of the individual entities. Deferred tax assets also include tax reduction claims which arise from the expected future utilisation of existing tax loss carryforwards and which are likely to be realised. In compliance with IAS 12.24 (b) and IAS 12.15 (b), deferred tax assets or liabilities were only recognised for temporary diff erences between the carrying amounts in the IFRS fi nancial statements and in the tax accounts of Deutsche Post AG where the diff erences arose aft er 1 January 1995. No deferred tax assets or liabilities are recognised for temporary diff erences resulting from initial diff erences in the opening tax accounts of Deutsche Post AG as at 1 January 1995. Further details on deferred taxes from tax loss carryforwards can be found in Note 19.
In accordance with IAS 12, deferred tax assets and liabilities are calculated using the tax rates applicable in the individual countries at the balance sheet date or announced for the time when the deferred tax assets and liabilities are realised. Th e tax rate of 29.8 % applied to German Group companies comprises the corporation tax rate plus the solidarity surcharge, as well as a municipal trade tax rate that is calculated as the average of the diff erent municipal trade tax rates. Foreign Group companies use their individual income tax rates to calculate deferred tax items. Th e income tax rates applied for foreign companies amount to up to 41 %.
Income tax assets and liabilities are measured at the amounts for which repayments from or payments to the tax authorities are expected to be received or made.
Contingent liabilities represent possible obligations whose existence will be confi rmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise. Contingent liabilities also include certain obligations that will probably not lead to an outfl ow of resources embodying economic benefi ts, or where the amount of the outfl ow of resources embodying economic benefi ts cannot be measured with suffi cient reliability. In accordance with IAS 37, contingent liabilities are not recognised as liabilities, see Note 51.
Th e preparation of IFRS-compliant consolidated fi nancial statements requires the exercise of judgement by management. All estimates are reassessed on an ongoing basis and are based on historical experience and expectations with regard to future events that appear reasonable under the given circumstances. Th is applies to the following matters in particular:
Diff erent options for recognising actuarial gains and losses exist when measuring provisions for pensions and other employee benefi ts. Th e Group applies the corridor method in accordance with IAS 19.92 (10 % corridor). With respect to assets held for sale, it must be determined whether the assets are available for sale in their present condition and whether their sale is highly probable. If this is the case, the assets and the associated liabilities are reported and measured as assets held for sale and liabilities associated with assets held for sale.
Th e preparation of the consolidated fi nancial statements in accordance with IFRS requires assumptions and estimates to be made that aff ect the amounts of the assets and liabilities included in the balance sheet, the amounts of income and expenses, and the disclosures relating to contingent liabilities.
Amongst other things, these assumptions relate to the recognition and measurement of provisions. When determining the provisions for pensions and other employee benefi ts, the discount rate used is an important factor that has to be estimated. It is based on the rate of return on high-quality corporate bonds. Th e risk premiums for corporate bonds compared with government bonds declined substantially again year-on-year. As a result, the market returns on which the calculated rate of interest is based also fell. An increase or a reduction of one percentage point in the discount rate used would result in a reduction or increase of around € 800 million in the pension obligations of pension plans in Germany. A similar change in the discount rate used to measure the pension obligations of the Group companies in the UK would result in a reduction or increase of around € 450 million. Since actuarial gains and losses are only recognised if they exceed 10 % of the higher of the defi ned benefi t obligation and the fair value of the plan assets, changes in the discount rate used for the Group's benefi t plans generally have little or no eff ect on the expense or the carrying amount of the provisions recognised in the following fi nancial year.
Th e Group has operating activities around the globe and is subject to local tax laws. Management can exercise judgement when calculating the amounts of current and deferred taxes in the relevant countries. Although management believes that it has made a reasonable estimate relating to tax matters that are inherently uncertain, there can be no guarantee that the actual outcome of these uncertain tax matters will correspond exactly to the original estimate made. Any diff erence between actual events and the estimate made could have an eff ect on tax liabilities and deferred taxes in the period in which the matter is fi nally decided. Th e amount recognised for deferred tax assets could be reduced if the estimates of planned taxable income or the tax benefi ts achievable as a result of tax planning strategies are revised downwards, or in the event that changes to current tax laws restrict the extent to which future tax benefi ts can be realised.
Goodwill is regularly reported in the Group's balance sheet as a consequence of business combinations. When an acquisition is initially recognised in the consolidated fi nancial statements, all identifi able assets, liabilities and contingent liabilities are measured at their fair values at the date of acquisition. One of the most important estimates this requires is the determination of the fair values of these assets and liabilities at the date of acquisition. Land, buildings and offi ce equipment are generally valued by independent experts, whilst securities for which there is an active market are recognised at the quoted exchange price. If intangible assets are identifi ed in the course of an acquisition, their measurement can be based on the opinion of an independent external expert valuer, depending on the type of intangible asset and the complexity involved in determining its fair value. Th e independent expert determines the fair value using appropriate valuation techniques, normally based on expected future cash fl ows. In addition to the assumptions about the development of future cash fl ows, these valuations are also signifi cantly aff ected by the discount rates used.
Impairment testing for goodwill is based on assumptions with respect to the future. Th e Group carries out these tests annually and also whenever there are indications that goodwill has become impaired. Th e recoverable amount of the CGU must then be calculated. Th is amount is the higher of fair value less costs to sell and value in use. Determining value in use requires adjustments and estimates to be made with respect to forecasted future cash fl ows and the discount rate applied. Although management believes that the assumptions made for the purpose of calculating the recoverable amount are appropriate, possible unforeseeable changes in these assumptions – e. g. a reduction in the EBIT margin, an increase in the cost of capital, or a decline in the long-term growth rate – could result in an impairment loss that could negatively aff ect the Group's net assets, fi nancial position and results of operations.
Pending legal proceedings in which the Group is involved are disclosed in Note 53. Th e outcome of these proceedings could have a signifi cant eff ect on the net assets, fi nancial position and results of operations of the Group. Management regularly analyses the information currently available about these proceedings and recognises provisions for probable obligations including estimated legal costs. Internal and external legal advisers participate in making this assess ment. In deciding on the necessity for a provision, management takes into account the probability of an unfavourable outcome and whether the amount of the obligation can be estimated with suffi cient reliability. Th e fact that an action has been launched or a claim asserted against the Group, or that a legal dispute has been disclosed in the Notes, does not necessarily mean that a provision is recognised for the associated risk.
All assumptions and estimates are based on the circumstances prevailing and assessments made at the balance sheet date. For the purpose of estimating the future development of the business, a realistic assessment was also made at that date of the economic environment likely to apply in the future to the diff erent sectors and regions in which the Group operates. In the event of developments in this general environment that diverge from the assumptions made, the actual amounts may diff er from the estimated amounts. In such cases, the assumptions made and, where necessary, the carrying amounts of the relevant assets and liabilities are adjusted accordingly.
At the date of preparation of the consolidated fi nancial statements, there is no indication that any signifi cant change in the assumptions and estimates made will be required, so that on the basis of the information currently available it is not expected that there will be any signifi cant adjustments in fi nancial year 2010 to the carry ing amounts of the assets and liabilities recognised in the fi nancial statements.
Th e consolidated fi nancial statements are based on the IFRS fi nancial statements of Deutsche Post AG and the subsidiaries, joint ventures and associates included in the consolidated fi nancial statements, prepared in accordance with uniform accounting policies as at 31 December 2009 and audited by independent auditors.
Acquisition accounting for subsidiaries included in the consolidated fi nancial statements uses the purchase method of accounting. Th e cost of the acquisition corresponds to the fair value of the assets given up, the equity instruments issued and the liabilities incurred or assumed at the transaction date, plus any costs directly attributable to the acquisition.
Joint ventures are proportionately consolidated in accordance with IAS 31. Assets and liabilities, as well as income and expenses, of jointly controlled companies are included in the consolidated fi nancial statements in proportion to the interest held in these companies. Proportionate acquisition accounting as well as recognition and measurement of goodwill use the same methods as applied to the consolidation of subsidiaries.
Companies on which the parent can exercise signifi cant infl uence (associates) are accounted for in accordance with the equity method using the purchase method of accounting. Any goodwill is recognised under investments in associates.
Intragroup revenue, other operating income and expenses as well as receivables, liabilities and provisions between consolidated companies are eliminated. Intercompany profi ts or losses from intragroup deliveries and services not realised by sale to third parties are eliminated.
IFRS 8 (Operating Segments) has been required to be applied since fi nancial year 2009. Deutsche Post DHL reports four operating segments; these are managed independently by the responsible segment management bodies in line with the products and services off ered and the brands, distribution channels and customer profi les involved. Components of the entity are defi ned as a segment on the basis of the existence of segment managers with bottomline responsibility who report directly to Deutsche Post DHL's top management.
Th e revised chart of accounts for fi nancial instruments resulted in changes in the allocation of the accounts to the segment assets and liabilities. Th e eff ects were of minor signifi cance. Th e prior-period amounts were adjusted accordingly.
Refl ecting the Group's predominant organisational structure, the primary reporting format is based on the divisions. Th e Group distinguishes between the following divisions:
In addition to the transport and delivery of written communications, the MAIL division is positioned as an end-to-end service provider for the management of written communications. Th e division comprises the following business units: Mail Communication, Dialogue Marketing, Press Services, Parcel Germany, Global Mail, Retail Outlets and the Pension Service.
Th e EXPRESS division off ers international and domestic courier and express services to business and private customers. Th e division comprises the Express Europe, Express Americas, Express Asia Pacifi c and Express EEMEA business units.
Th e activities of the GLOBAL FORWARDING, FREIGHT division comprise the transportation of goods by rail, road, air and sea. Th e division's business units are Global Forwarding and Freight.
Th e division specialises in contract logistics and provides warehousing and transport services as well as sector-based valueadded services along the entire supply chain. Th e division also off ers end-to-end solutions for corporate information and communications management. Th e division's business units are Supply Chain and Williams Lea (formerly Corporate Information Solutions).
In addition to the reportable segments given above, segment reporting comprises the following categories:
Th e collective segment comprises Global Business Services (GBS), the Corporate Center, non-operating activities and other business activities. Th e profi t / loss generated by GBS is allocated to the other operating segments, whilst its assets and liabilities remain with GBS (asymmetrical allocation).
Th e data for the divisions are presented following consolidation of interdivisional transactions. Th e transactions between the divisions are eliminated in the "Consolidation" column.
Th e Deutsche Postbank Group is reported as a discontinued operation for the months of January and February 2009 and for the previous year. Eff ective March 2009, the remaining shares are disclosed under investments in associates and the net income from associates is reported in the column entitled "Corporate Center / Other".
| € m | Total | Reconciliation to Group / | ||||||
|---|---|---|---|---|---|---|---|---|
| for reportable segments | Corporate Center / Other | Consolidation | Consolidated amount | |||||
| 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | |
| External revenue | 54,375 | 46,129 | 99 | 72 | 0 | 0 | 54,474 | 46,201 |
| Internal revenue | 1,552 | 1,244 | 1,683 | 1,455 | –3,235 | –2,699 | 0 | 0 |
| Revenue | 55,927 | 47,373 | 1,782 | 1,527 | –3,235 | –2,699 | 54,474 | 46,201 |
| Other operating income | 2,212 | 1,786 | 1,693 | 1,528 | –1,169 | –1,173 | 2,736 | 2,141 |
| Materials expense | –33,285 | –26,932 | –1,514 | –1,459 | 2,820 | 2,617 | –31,979 | –25,774 |
| Staff costs | –17,391 | –16,099 | –1,009 | – 940 | 11 | 18 | –18,389 | –17,021 |
| Other operating expenses | – 5,700 | – 4,248 | –1,019 | – 685 | 1,573 | 1,237 | – 5,146 | –3,696 |
| Depreciation, amortisation and impairment losses | –2,336 | –1,321 | –326 | –299 | 0 | 0 | –2,662 | –1,620 |
| Profi t / loss from operating activities (ebit) | – 573 | 559 | –393 | –328 | 0 | 0 | – 966 | 231 |
| Net income from associates | 2 | 9 | 0 | 19 | 0 | 0 | 2 | 28 |
| Net other fi nance costs / net other fi nancial income | – | – | – | – | – | – | –102 | 17 |
| Income taxes | – | – | – | – | – | – | –200 | –15 |
| Profi t / loss from discontinued operations | – | – | – | – | – | – | –713 | 432 |
| Consolidated net profi t / loss for the period | – | – | – | – | – | – | –1,979 | 693 |
| of which attributable to | ||||||||
| Deutsche Post ag shareholders | – | – | – | – | – | – | –1,688 | 644 |
| Minorities | – | – | – | – | – | – | –291 | 49 |
External revenue is the revenue generated by the divisions from non-Group third parties. Internal revenue is revenue generated with other divisions. If comparable external market prices exist for services or products off ered internally within the Group, these market prices or market-oriented prices are used as transfer prices (arm's length principle). Th e transfer prices for services for which no external market exists are generally based on incremental costs.
Th e expenses for IT services provided in the IT service centres are allocated to the divisions by cause. Th e additional costs resulting from Deutsche Post AG's universal postal service obligation (nationwide retail outlet network, delivery every working day), and from its obligation to assume the compensation structure as the legal successor to Deutsche Bundespost, are allocated to the MAIL division.
Segment assets are composed of non-current assets (excluding non-current fi nancial assets) and current assets (excluding income tax assets, cash and cash equivalents, and current fi nancial assets). Purchased goodwill is allocated to the divisions.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Total assets | 262,964 | 34,738 |
| Investment property | –32 | –32 |
| Non-current fi nancial assets | ||
| including investments in associates | –779 | –3,220 |
| Other non-current assets | –343 | –323 |
| Deferred tax assets | –1,033 | –668 |
| Income tax assets | –191 | –196 |
| Receivables and other assets | – 50 | –29 |
| Current fi nancial assets | – 659 | –1,861 |
| Cash and cash equivalents | –1,350 | –3,064 |
| Discontinued operations | –231,824 | 0 |
| Segment assets | 26,703 | 25,345 |
| of which Corporate Center / Other | 1,377 | 1,271 |
| Total for reportable segments | 25,727 | 24,335 |
| Consolidation | – 401 | –261 |
Segment liabilities relate to non-interest-bearing provisions and liabilities (excluding income tax liabilities).
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Total equity and liabilities | 262,964 | 34,738 |
| Equity | – 9,852 | –8,273 |
| Consolidated liabilities | 253,112 | 26,465 |
| Non-current provisions | – 8,029 | –7,031 |
| Non-current liabilities | –3,685 | –7,071 |
| Current provisions | –303 | –344 |
| Current liabilities | –1,837 | –1,066 |
| Discontinued operations | –227,723 | 0 |
| Segment liabilities | 11,535 | 10,953 |
| of which Corporate Center / Other | 1,244 | 1,123 |
| Total for reportable segments | 10,712 | 10,149 |
| Consolidation | – 421 | –319 |
In keeping with internal reporting, capital expenditure (capex) is disclosed in place of the segment investments. Th e difference is that intangible assets are reported net of goodwill in the capex fi gure. Depreciation, amortisation and write-downs relate to the segment assets allocated to the individual divisions. Other noncash expenses relate primarily to expenses from the recognition of provisions.
Th e main geographical regions in which the Group is active are Germany, Europe, the Americas, Asia Pacifi c and Other regions. External revenue, non-current assets and capex are disclosed for these regions. Revenue, assets and capex are allocated to the individual regions on the basis of the domicile of the reporting entity. Th e prior-period amounts were adjusted accordingly. Noncurrent assets primarily comprise intangible assets, property, plant and equipment, and other non-current assets.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Revenue | 54,474 | 46,201 |
As in the prior-year period, there was no revenue in fi nancial year 2009 that was generated on the basis of barter transactions. Revenue was down year-on-year in all areas. Th is was due to the global recession and to our exit from the domestic US express business and exchange rate losses.
Th e further classifi cation of revenue by division and the allocation of revenue to geographical regions are presented in the segment reporting.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Income from the reversal of provisions | 253 | 562 |
| Rental and lease income | 178 | 172 |
| Insurance income | 173 | 171 |
| Income from currency translation differences | 269 | 161 |
| Income from work performed and capitalised | 168 | 138 |
| Income from fees and reimbursements | 103 | 124 |
| Income from derivatives | 86 | 90 |
| Reversals of impairment losses on receivables | ||
| and other assets | 64 | 81 |
| Income from the remeasurement of liabilities | 118 | 77 |
| Commission income | 66 | 69 |
| Gains on disposal of non-current assets | 147 | 40 |
| Income from the derecognition of liabilities | 23 | 38 |
| Income from prior-period billings | 626 | 34 |
| Income from loss compensation | 23 | 22 |
| Recoveries on receivables previously written off | 9 | 11 |
| Subsidies | 8 | 7 |
| Miscellaneous | 422 | 344 |
| Other operating income | 2,736 | 2,141 |
Income from the reversal of provisions relates primarily to changes in estimates of the amount of specifi c future payment obligations from the restructuring of the US express business and to renegotiations of the compensation payment obligations assumed as part of the restructuring measures in the USA.
Miscellaneous other operating income includes a large number of smaller individual items.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Cost of raw materials, consumables and supplies, and of goods purchased and held for resale |
||
| Fuel | 968 | 736 |
| Aircraft fuel | 781 | 454 |
| Packaging material | 390 | 317 |
| Goods purchased and held for resale | 1,352 | 1,311 |
| Offi ce supplies | 79 | 68 |
| Spare parts and repair materials | 92 | 83 |
| Other expenses | 100 | 83 |
| 3,762 | 3,052 | |
| Cost of purchased services | ||
| Transportation costs | 19,483 | 14,791 |
| Cost of temporary staff | 2,321 | 1,904 |
| Expenses from non-cancellable leases | 1,735 | 1,820 |
| Expenses from cancellable leases | 469 | 405 |
| Other lease expenses (incidental expenses) | 185 | 145 |
| Maintenance costs | 994 | 957 |
| it services | 764 | 667 |
| Commissions paid | 343 | 341 |
| Expenses for the use of Postbank branches | 484 | 519 |
| Other purchased services | 1,439 | 1,173 |
| 28,217 | 22,722 | |
| Materials expense | 31,979 | 25,774 |
Th e decline in the materials expense is due to lower sales result ing from the general market situation, to our exit from the domestic US express business and to the drop in the oil price.
Other purchased services include a large number of individual items.
| € m | 2008 adjusted1) |
2009 |
|---|---|---|
| Wages, salaries and compensation | 14,104 | 13,160 |
| of which expenses for options under the stock option plans |
4 | 0 |
| of which expenses under Share Matching Scheme | 0 | 5 |
| of which expenses from 2006 sar Plan / ltip | 0 | 11 |
| Social security contributions | 2,382 | 2,638 |
| Retirement benefi t expenses | 1,903 | 1,223 |
| Staff costs | 18,389 | 17,021 |
1) Prior-period amount adjusted, see Note 5.
In particular, our exit from the domestic US express business led to a reduction in staff costs.
Retirement benefi t expenses include € 559 million (previous year: € 557 million) relating to contributions by Deutsche Post AG to Bundes-Pensions-Service für Post und Telekommunikation e.V. Further details can be found in Note 7.
Staff costs relate mainly to wages, salaries and compensation, as well as all other benefi ts paid to employees of the Group for their services in the year under review. Social security contributions relate in particular to statutory social security contributions paid by employers. Th e decrease is mainly attributable to the compensation payment obligations assumed in the previous year as part of the restructuring measures in the USA.
Retirement benefi t expenses relate to current and former employees or their surviving dependants. Th ese expenses consist of additions to pension provisions, employer contributions to supplementary occupational pension plans and retirement benefi t payments by employers for their employees.
Th e average number of Group employees in the year under review, broken down by employee group, was as follows:
| 2008 | 2009 | |
|---|---|---|
| Hourly workers and salaried employees | 456,149 | 435,072 |
| Civil servants | 51,304 | 49,691 |
| Trainees | 3,839 | 3,755 |
| Employees | 511,292 | 488,518 |
Th e employees of companies acquired or disposed of during the year under review were included ratably. Calculated as fulltime equivalents, the number of employees as at 31 December 2009 amounted to 424,686 (31 December 2008: 451,515). Th e number of employees at consolidated joint ventures amounted to 1,589 on a proportionate basis (previous year: 1,709).
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Amortisation of intangible assets, | ||
| excluding the impairment of goodwill | 826 | 421 |
| Depreciation of property, plant and equipment | ||
| Land and buildings | 203 | 282 |
| Technical equipment and machinery | 338 | 287 |
| Other equipment, operating and offi ce equipment, | ||
| vehicle fl eet | 480 | 478 |
| Aircraft | 202 | 151 |
| Advance payments | 3 | 1 |
| 1,226 | 1,199 | |
| 2,052 | 1,620 | |
| Impairment of goodwill | 610 | 0 |
| Depreciation, amortisation and impairment losses | 2,662 | 1,620 |
Depreciation, amortisation and impairment losses includes impairment losses of € 264 million (previous year: € 213 million). € 92 million of this fi gure relates to the insolvency of Arcandor. A further € 23 million relates to impairment losses on property, plant and equipment in the domestic US express business and € 24 million to impairment losses on aircraft .
€ 81 million of the impairment losses relates to intangible assets (previous year: € 79 million) and € 98 million to land and buildings (previous year: € 9 million), whilst € 85 million relates to the remaining property, plant and equipment (previous year: € 125 million).
At segment level, the impairment losses on non-current assets (excluding impairment of goodwill) were as follows:
Impairment losses on non-current assets
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| 4 | 0 | |
| express | 125 | 116 |
| global forwarding, freight | 0 | 0 |
| supply chain | 19 | 91 |
| Corporate Center / Other | 65 | 57 |
| Impairment losses | 213 | 264 |
Impairments of goodwill in the previous year related to DHL Supply Chain (€ 436 million) and Williams Lea (formerly CIS, € 174 million).
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Write-downs of current assets | 321 | 328 |
| Travel and training costs | 450 | 308 |
| Warranty expenses, refunds | ||
| and compensation payments | 326 | 290 |
| Cost of purchased cleaning, transport | ||
| and security services | 302 | 280 |
| Other business taxes | 378 | 273 |
| Telecommunication costs | 269 | 236 |
| Expenses from disposal of assets | 503 | 236 |
| Consulting costs | 272 | 184 |
| Offi ce supplies | 207 | 177 |
| Expenses from currency translation differences | 269 | 163 |
| Voluntary social benefi ts | 132 | 142 |
| Insurance costs | 118 | 112 |
| Entertainment and corporate hospitality expenses | 163 | 110 |
| Other public relations expenses | 163 | 101 |
| Legal costs | 167 | 97 |
| Advertising expenses | 142 | 82 |
| Services provided by the Federal Posts and Telecommunications Agency |
70 | 81 |
| Commissions paid | 64 | 70 |
| Expenses for public relations and customer support | 70 | 56 |
| Additions to provisions | 112 | 51 |
| Contributions and fees | 37 | 49 |
| Expenses from derivatives | 221 | 34 |
| Prior-period other operating expenses | 85 | 32 |
| Audit costs | 36 | 31 |
| Monetary transaction costs | 35 | 24 |
| Donations | 18 | 2 |
| Miscellaneous | 216 | 147 |
| Other operating expenses | 5,146 | 3,696 |
Th e reduction in other operating expenses is primarily attributable to the Group-wide cost reduction programme.
Write-downs of current assets include write-downs of receivables from Arcandor / KarstadtQuelle in the amount of € 51 million.
Miscellaneous other operating expenses include a large number of smaller individual items.
Taxes other than income taxes are either recognised under the related expense item or, if no specifi c allocation is possible, under other operating expenses.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Net income from associates | 2 | 28 |
Investments in companies on which a signifi cant infl uence can be exercised and which are accounted for using the equity method contributed € 28 million (previous year: € 2 million) to net fi nance costs / net fi nancial income. Th e change as against the prioryear fi gure is due to the inclusion of Deutsche Postbank AG as an associate.
| € m | 2008 | 2009 |
|---|---|---|
| Other fi nancial income | adjusted1) | |
| Interest income | 576 | 106 |
| Income from other equity investments | ||
| and fi nancial assets | 15 | 2 |
| Other fi nancial income | 7 | 1,777 |
| 598 | 1,885 | |
| Other fi nance costs | ||
| Interest expenses | – 664 | – 820 |
| of which on discounted provisions for pensions and other provisions |
–290 | – 439 |
| Cost of loss absorption | 0 | 0 |
| Write-downs of fi nancial assets | –30 | –33 |
| Other fi nance costs | –20 | –1,004 |
| –714 | –1,857 | |
| Foreign currency result | 14 | –11 |
| Net other fi nance costs / net other fi nancial income | –102 | 17 |
1) Prior-period amount adjusted, see Note 5.
Net other fi nance costs / net other fi nancial income includes realised gains from the sale of Deutsche Bank shares in the amount of € 127 million. In addition, income of € 505 million comprises on the one hand the interest on the exchangeable bond (€ –103 million) and on the other the gain on the measurement of the options for the third tranche and the interest on the cash collateral (€ 608 million).
Net fi nance costs / net fi nancial income includes interest income from fi nancial assets of € 106 million (previous year: € 576 million) as well as interest expense from fi nancial liabilities of € 820 million (previous year: € 664 million) that was not measured at fair value through profi t or loss.
€ m
| –324 |
|---|
| 40 |
| –284 |
| 172 |
| 97 |
| 269 |
| –15 |
Th e reconciliation to the eff ective income tax expense is shown below, based on consolidated net profi t before income taxes and the expected income tax expense:
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Profi t / loss from continuing operations | ||
| before income taxes | –1,066 | 276 |
| Expected income tax expense | 318 | –82 |
| Deferred tax assets not recognised | ||
| for initial differences | 420 | 304 |
| Deferred tax assets of German Group companies not recognised for tax loss carryforwards |
||
| and temporary differences | –469 | –280 |
| Deferred tax assets of foreign Group companies not recognised for tax loss carryforwards |
||
| and temporary differences | –424 | –130 |
| Effect of current taxes from previous years | 45 | 5 |
| Tax-exempt income and non-deductible expenses | –118 | 143 |
| Differences in tax rates at foreign companies | 30 | 27 |
| Other | –2 | –2 |
| Effective income tax expense from continuing operations |
–200 | –15 |
Th e diff erence between the expected and the eff ective income tax expense is due in particular to temporary diff erences between the carrying amounts in the IFRS fi nancial statements and in the tax accounts of Deutsche Post AG resulting from initial diff erences in the opening tax accounts as at 1 January 1995. In accordance with IAS 12.15 (b) and IAS 12.24 (b), the Group did not recognise any deferred tax assets on these temporary diff erences, which relate mainly to property, plant and equipment as well as to provisions for pensions and other employee benefi ts. Th e remaining temporary diff erences between the carrying amounts in the IFRS fi nancial statements and in the opening tax accounts amounted to € 1.0 billion as at 31 December 2009 (previous year: € 2.0 billion).
Th e eff ects from deferred tax assets of German Group companies not recognised on tax loss carryforwards and temporary differences relate primarily to Deutsche Post AG and members of its consolidated tax group. Eff ects from deferred tax assets of foreign companies not recognised on tax loss carryforwards and temporary diff erences relate primarily to the Americas region.
Eff ects from unrecognised deferred tax assets amounting to € 648 million (previous year: € 585 million, reversal) were due to a write-down of deferred tax assets. Th e income tax expense was reduced by € 128 million (previous year: € 17 million) as a result of the utilisation of tax losses not previously refl ected in the fi nancial statements.
A deferred tax asset for German companies in the amount of € 472 million (previous year: € 332 million) was recognised in the balance sheet as, based on tax planning, realisation of the tax asset is probable.
In fi nancial year 2009, as in the previous year, German Group companies were not aff ected by tax rate changes. Th e change in the tax rate in some foreign tax jurisdictions did not lead to any signifi cant eff ects.
Th e eff ective income tax expense includes prior-period tax income from German and foreign companies in the amount of € 5 million (previous year: € – 45 million).
Th e following table presents the tax eff ects on the components of other comprehensive income:
| € m | |||
|---|---|---|---|
| Before taxes | Income taxes | After taxes | |
| 2009 | |||
| Currency translation reserve | 196 | 0 | 196 |
| Hedging reserve in accordance with ias 39 |
–46 | 29 | –17 |
| Revaluation reserve in accordance with ias 39 |
110 | –29 | 81 |
| Share of other comprehensive income of associates |
123 | 0 | 123 |
| Other comprehensive income | 383 | 0 | 383 |
| 2008 | |||
| Currency translation reserve | –502 | 0 | –502 |
| Hedging reserve in accordance with ias 39 |
65 | –28 | 37 |
| Revaluation reserve in accordance with ias 39 |
–263 | 82 | –181 |
| Revaluation reserve in accordance with ifrs 3 |
8 | 0 | 8 |
| Other comprehensive income | – 692 | 54 | – 638 |
Th e profi t from continuing operations in fi nancial year 2009 amounted to € 261 million (previous year: loss of € 1,266 million). Th e previous year was mainly impacted by restructuring measures in the Group and the impairment losses recognised on intangible assets in the Supply Chain and Williams Lea (formerly CIS) units.
In accordance with IFRS 5, the profi t of the Deutsche Postbank Group for the months of January and February 2009 is reported in the income statement under profi t / loss from discontinued operations.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Income from banking transactions (revenue) | 11,226 | 1,634 |
| Other operating income | – 998 | –27 |
| Total operating income | 10,228 | 1,607 |
| Expenses from banking transactions | ||
| (materials expense) | – 8,270 | –1,190 |
| Staff costs | –1,337 | –219 |
| Depreciation, amortisation and impairment losses | –179 | 0 |
| Other operating expenses | –1,313 | –222 |
| Total operating expenses | –11,099 | –1,631 |
| Loss from operating activities (ebit) | – 871 | –24 |
| Net fi nance costs | –73 | –13 |
| Loss before taxes from discontinued operations | – 944 | –37 |
| Attributable tax income | 150 | 25 |
| Loss after taxes from discontinued operations | –794 | –12 |
| Reversal of negative goodwill (arising from increase | ||
| in equity investment) / deconsolidation effects | 81 | 444 |
| Profi t / loss from discontinued operations | –713 | 432 |
Since March 2009, the remaining shares in the Deutsche Postbank Group have been reported at their equity-method carrying amount under investments in associates, whilst its profi t or loss has been reported under net income from associates.
In fi nancial year 2009, the Group generated a consolidated net profi t for the period of € 693 million (previous year: net loss of € 1,979 million). Of the consolidated net profi t, € 644 million (previous year: net loss of € 1,688 million) was attributable to Deutsche Post AG shareholders.
Th e net profi t of € 49 million attributable to minorities in fi nancial year 2009 represented an increase of € 340 million year-onyear. Th e change is primarily due to the inclusion of the Deutsche Postbank Group as an equity-accounted associate.
Basic earnings per share are computed in accordance with IAS 33 (Earnings per Share) by dividing consolidated net profi t by the average number of shares. Basic earnings per share for fi nancial year 2009 were € 0.53 (previous year: € –1.40).
| 2008 | 2009 | ||
|---|---|---|---|
| Consolidated net profi t / loss attribu table to Deutsche Post ag shareholders |
€ m | –1,688 | 644 |
| Weighted average number | |||
| of shares outstanding | Number | 1,208,617,943 | 1,209,015,874 |
| Basic earnings per share | € | –1.40 | 0.53 |
| of which from continuing operations | € | –1.10 | 0.17 |
To compute diluted earnings per share, the average number of shares outstanding is adjusted for the number of all potentially dilutive shares. Th e exercise phase of the 2004 tranche of the 2003 Stock Option Plan ended on 30 June 2009. Under the terms and conditions of the plan, all options and stock appreciation rights (SAR) belonging to this tranche that were unexercised as at 30 June 2009 expired. As a result, there were no further options for executives outstanding as at the closing date for the 2004 tranche (previous year: 2,726,658). In fi nancial year 2009, the new executive bonus system (Share Matching Scheme) resulted in 389,585 rights to shares, none of which were dilutive.
| 2008 | 2009 | ||
|---|---|---|---|
| Consolidated net profi t / loss attribu table to Deutsche Post ag shareholders |
€ m | –1,688 | 644 |
| Weighted average number of shares outstanding |
Number | 1,208,617,943 | 1,209,015,874 |
| Potentially dilutive shares | Number | 0 | 0 |
| Weighted average number of shares for diluted earnings |
Number | 1,208,617,943 | 1,209,015,874 |
| Diluted earnings per share | € | –1.40 | 0.53 |
| of which from continuing operations | € | –1.10 | 0.17 |
| of which from discontinued operations | € | –0.30 | 0.36 |
A dividend per share of € 0.60 is being proposed for fi nancial year 2009. Based on the 1,209,015,874 shares recorded in the commercial register as at 31 December 2009, this corresponds to a dividend distribution of € 725 million. In the previous year the dividend amounted to € 0.60 per share. Further details on the dividend distribution can be found in Note 42.
€ m
| Internally generated intangible assets |
Purchased brand names |
Purchased customer lists |
Other purchased intangible assets |
Goodwill | Advance payments and intangible assets under development |
Total | |
|---|---|---|---|---|---|---|---|
| Cost | |||||||
| Balance at 1 January 2008 | 1,298 | 858 | 986 | 1,773 | 11,770 | 153 | 16,838 |
| Additions to consolidated group | 0 | 3 | 54 | 4 | 180 | 0 | 241 |
| Additions | 129 | 0 | 0 | 142 | 118 | 74 | 463 |
| Reclassifi cations | 38 | 0 | 0 | 103 | 0 | –120 | 21 |
| Disposals | – 455 | –318 | –176 | – 604 | – 649 | 8 | –2,194 |
| Currency translation differences | 0 | –133 | –73 | –16 | –230 | –7 | – 459 |
| Balance at 31 December 2008 / 1 January 2009 | 1,010 | 410 | 791 | 1,402 | 11,189 | 108 | 14,910 |
| Additions to consolidated group | 0 | 0 | 0 | 0 | 26 | 1 | 27 |
| Additions | 88 | 0 | 0 | 94 | 30 | 59 | 271 |
| Reclassifi cations | 16 | 0 | – 6 | 64 | 0 | – 54 | 20 |
| Disposals | – 80 | 0 | 0 | –155 | – 47 | –109 | –391 |
| Currency translation differences | –1 | 36 | 20 | 12 | 93 | 1 | 161 |
| Balance at 31 December 2009 | 1,033 | 446 | 805 | 1,417 | 11,291 | 6 | 14,998 |
| Amortisation and impairment losses | |||||||
| Balance at 1 January 2008 | 759 | 0 | 178 | 1,205 | 440 | 30 | 2,612 |
| Additions to consolidated group | 0 | 0 | 0 | 1 | 0 | 0 | 1 |
| Amortisation | 113 | 382 | 90 | 213 | 0 | 0 | 798 |
| Impairment losses | 64 | 0 | 0 | 11 | 610 | 4 | 689 |
| Reclassifi cations | –1 | 0 | 0 | –1 | 0 | 0 | –2 |
| Reversal of impairment losses | –2 | 0 | 0 | – 6 | 0 | 0 | – 8 |
| Disposals | –258 | 0 | –28 | – 496 | – 9 | 0 | –791 |
| Currency translation differences | 6 | 0 | –22 | –1 | 0 | 1 | –16 |
| Balance at 31 December 2008 / 1 January 2009 | 681 | 382 | 218 | 926 | 1,041 | 35 | 3,283 |
| Additions to consolidated group | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Amortisation | 93 | 0 | 83 | 164 | 0 | 0 | 340 |
| Impairment losses | 2 | 0 | 0 | 77 | 0 | 2 | 81 |
| Reclassifi cations | 2 | 0 | 0 | 3 | 0 | –1 | 4 |
| Reversal of impairment losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Disposals | – 65 | 0 | 0 | –133 | –33 | – 94 | –325 |
| Currency translation differences | –2 | 34 | 4 | 5 | 40 | 0 | 81 |
| Balance at 31 December 2009 | 711 | 416 | 305 | 1,042 | 1,048 | – 58 | 3,464 |
| Carrying amount at 31 December 2009 | 322 | 30 | 500 | 375 | 10,243 | 64 | 11,534 |
| Carrying amount at 31 December 2008 | 329 | 28 | 573 | 476 | 10,148 | 73 | 11,627 |
Purchased soft ware, concessions, industrial rights, licences and similar rights and assets are reported under purchased intangible assets. Internally generated intangible assets relate to development costs for internally developed soft ware.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Total goodwill1) | 10,148 | 10,243 |
| mail National | 37 | 38 |
| mail International | 543 | 552 |
| express | 4,103 | 4,142 |
| global forwarding, freight | ||
| dhl Global Forwarding | 3,443 | 3,451 |
| dhl Freight Europe | 253 | 253 |
| supply chain | ||
| dhl Supply Chain | 1,550 | 1,581 |
| Williams Lea | 333 | 340 |
1) Goodwill from reconciliation amounts to € –114 million (previous year: € –114 million).
Th e structure of the cash generating units (CGU) was not changed compared with the previous year. Th e Williams Lea CGU shown in the table above corresponds to the Corporate Information Solutions (CIS) CGU shown last year.
For the purposes of annual impairment testing in accordance with IAS 36, the Group determines the recoverable amount of a CGU on the basis of its value in use. Th is calculation is based on projections of free cash fl ows that are initially discounted at a rate corresponding to the post-tax cost of capital. Pre-tax discount rates are then determined iteratively.
Th e cash fl ow projections are based on the detailed EBIT and investment planning adopted by management and take both internal historical data and external macroeconomic data into account. From a methodological perspective, the detailed planning phase covers a three-year planning horizon from 2010 to 2012. It is supplemented by a perpetual annuity representing the value added from 2013 onwards. Th is is calculated using a long-term growth rate, which is determined for each CGU separately and which is shown in the table below. Th e growth rate used refl ects expectations regarding industry growth for the CGU, but does not exceed the estimated long-term growth rate for the countries with the highest contribution to earnings in the relevant CGU. Th e cash fl ow forecasts are based both on historical amounts and on the anticipated future general market trend. In addition, the forecasts take into account growth in the respective national business operations and in international trade, and the ongoing trend towards outsourcing logistics activities. Cost estimates for the transportation network and services also have an impact on value in use.
Th e pre-tax cost of capital is based on the weighted average cost of capital. Th e (pre-tax) discount rates for the individual CGU and the growth rates assumed in each case for the perpetual annuity are shown in the following table:
| % | Discount rates | Growth rates | |||
|---|---|---|---|---|---|
| 2008 | 2009 | 2008 | 2009 | ||
| supply chain | |||||
| dhl Supply Chain | 11.1 | 10.7 | 2.5 | 2.5 | |
| Williams Lea | 11.3 | 11.6 | 2.0 | 2.0 | |
| global forwarding, freight | |||||
| dhl Freight Europe | 11.1 | 10.8 | 2.0 | 2.0 | |
| dhl Global Forwarding | 11.2 | 10.7 | 2.5 | 2.5 | |
| mail National | n / a | 11.2 | n / a | 0.0 | |
| mail International | 11.4 | 10.7 | 1.0 | 1.0 | |
| express | 10.6 | 10.7 | 2.5 | 2.0 | |
As at 31 December 2008, the MAIL National CGU met all of the criteria set out in IAS 36.99 and a detailed recalculation of the recoverable amount was therefore not required. Th ere was no risk of impairment for this CGU as at 31 December 2008.
On the basis of these assumptions and the impairment tests carried out for the individual CGU to which goodwill was allocated, it was established that the recoverable amounts for all CGU exceed their carrying amounts. No impairment losses were recognised on goodwill in any of the CGU as at 31 December 2009.
| € m | Other | ||||||
|---|---|---|---|---|---|---|---|
| Technical | equipment, | Advance | |||||
| equipment | offi ce and | Vehicle fl eet | payments and | ||||
| Land and buildings |
and machinery |
operating equipment |
Aircraft | and transport equipment |
assets under develop ment |
Total | |
| Cost | |||||||
| Balance at 1 January 2008 | 7,268 | 4,076 | 3,431 | 1,367 | 2,046 | 305 | 18,493 |
| Additions to consolidated group | 46 | 15 | 21 | 0 | 25 | 2 | 109 |
| Additions | 141 | 231 | 285 | 94 | 255 | 447 | 1,453 |
| Reclassifi cations | 80 | 169 | 42 | 44 | 31 | –390 | –24 |
| Disposals | –2,597 | –219 | –1,328 | –73 | – 873 | – 55 | – 5,145 |
| Currency translation differences | – 89 | – 91 | – 53 | 4 | – 88 | –13 | –330 |
| Balance at 31 December 2008 / 1 January 2009 | 4,849 | 4,181 | 2,398 | 1,436 | 1,396 | 296 | 14,556 |
| Additions to consolidated group | 1 | 1 | 4 | 0 | 7 | 0 | 13 |
| Additions | 74 | 182 | 230 | 110 | 127 | 207 | 930 |
| Reclassifi cations | 32 | 68 | 26 | 160 | 25 | –332 | –21 |
| Disposals | –316 | –275 | –292 | – 95 | –211 | – 44 | –1,233 |
| Currency translation differences | 37 | 40 | 23 | 1 | 24 | 3 | 128 |
| Balance at 31 December 2009 | 4,677 | 4,197 | 2,389 | 1,612 | 1,368 | 130 | 14,373 |
| Depreciation and impairment losses | |||||||
| Balance at 1 January 2008 | 2,583 | 2,973 | 2,604 | 483 | 1,099 | –3 | 9,739 |
| Additions to consolidated group | 24 | 12 | 15 | 0 | 11 | 0 | 62 |
| Depreciation | 208 | 278 | 293 | 164 | 198 | 0 | 1,141 |
| Impairment losses | 9 | 60 | 21 | 38 | 3 | 3 | 134 |
| Reclassifi cations | 10 | 1 | – 4 | 2 | –3 | – 5 | 1 |
| Reversal of impairment losses | –1 | 0 | 0 | 0 | 0 | 0 | –1 |
| Disposals | – 881 | –127 | –1,152 | – 65 | – 827 | –1 | –3,053 |
| Currency translation differences | –19 | – 40 | –38 | 1 | – 45 | –2 | –143 |
| Balance at 31 December 2008 / 1 January 2009 | 1,933 | 3,157 | 1,739 | 623 | 436 | – 8 | 7,880 |
| Additions to consolidated group | 1 | 1 | 3 | 0 | 3 | 0 | 8 |
| Depreciation | 184 | 247 | 250 | 127 | 208 | 0 | 1,016 |
| Impairment losses | 98 | 40 | 10 | 24 | 10 | 1 | 183 |
| Reclassifi cations | 4 | –2 | 6 | – 5 | 3 | – 9 | –3 |
| Reversal of impairment losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Disposals | –240 | –236 | –270 | –77 | –165 | –1 | – 989 |
| Currency translation differences | 12 | 20 | 16 | –3 | 13 | 0 | 58 |
| Balance at 31 December 2009 | 1,992 | 3,227 | 1,754 | 689 | 508 | –17 | 8,153 |
| Carrying amount at 31 December 2009 | 2,685 | 970 | 635 | 923 | 860 | 147 | 6,220 |
| Carrying amount at 31 December 2008 | 2,916 | 1,024 | 659 | 813 | 960 | 304 | 6,676 |
Advance payments relate only to advance payments on items of property, plant and equipment for which the Group has paid advances in connection with uncompleted transactions. Assets under development relate to items of property, plant and equipment in progress at the balance sheet date for whose production internal or third-party costs have already been incurred. Items of property, plant and equipment pledged as collateral amounted to less than € 1 million, as in the prior year.
Th e following assets are carried as non-current assets resulting from fi nance leases:
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Intangible assets | 3 | 0 |
| Land and buildings | 76 | 57 |
| Technical equipment and machinery | 27 | 24 |
| Other equipment, operating and offi ce equipment | 31 | 30 |
| Aircraft | 444 | 407 |
| Vehicle fl eet and transport equipment | 11 | 3 |
| Finance leases | 592 | 521 |
Th e corresponding liabilities from fi nance leases are included under fi nancial liabilities, see Note 46.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Cost | ||
| As at 1 January | 260 | 45 |
| Additions to consolidated group | 0 | 0 |
| Additions | 1 | 0 |
| Reclassifi cations | 2 | 0 |
| Disposals | –219 | 0 |
| Currency translation differences | 1 | 0 |
| As at 31 December | 45 | 45 |
| Depreciation | ||
| As at 1 January | 73 | 13 |
| Additions to consolidated group | 0 | 0 |
| Depreciation / impairment losses | 1 | 0 |
| Changes in fair value | 0 | 0 |
| Reclassifi cations | 1 | 0 |
| Disposals | – 62 | 0 |
| Currency translation differences | 0 | 0 |
| As at 31 December | 13 | 13 |
| Carrying amount as at 31 December | 32 | 32 |
In fi nancial year 2009 as in the previous year, € 18 million of investment property related to Exel Inc., USA, and € 14 million to Deutsche Post AG. Rental income for this property amounted to € 1 million (previous year: € 1 million), whilst the related expenses also amounted to € 1 million (previous year: € 1 million). Th e fair value amounted to € 77 million (previous year: € 78 million).
Investments in associates developed as follows:
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| As at 1 January | 203 | 61 |
| Additions | 0 | 1,561 |
| Changes in Group's share of equity | ||
| Changes recognised in profi t or loss | 2 | 28 |
| Profi t distributions | –1 | –1 |
| Changes recognised in other comprehensive income | 0 | 123 |
| Disposals | –143 | 0 |
| Carrying amount as at 31 December | 61 | 1,772 |
Th e change reported in investments in associates is primarily due to Deutsche Postbank AG. Since March 2009, the 39.5 % interest in the company remaining following the sale of the 22.9 % stake has been accounted for using the equity method. Since this also accounts for the largest portion of this balance sheet item, the following table only reports the assets, liabilities, income from banking transactions and net profi t of Deutsche Postbank AG (all items 100 %).
Deutsche Postbank AG's fi gures have been based on the last published interim fi nancial statements as at 30 September 2009 and the last published consolidated fi nancial statements as at 31 December 2008 because audited consolidated fi nancial statements from Deutsche Postbank AG for the year ending 31 December 2009 were not available when Deutsche Post AG's consolidated fi nancial statements were prepared. Th is does not apply to the preliminary annual results for 2009 which were taken from a press release.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Assets | 231,2821) | 239,280 |
| Liabilities | 226,2631) | 234,002 |
| Income from banking transactions3) | 11,2321) | 6,963 |
| Profi t (+) / loss (–) | – 8862) | 76 |
1) Amounts not including the restatement by Deutsche Postbank ag.
2) Preliminary amounts including the restatement by Deutsche Postbank ag.
3) Income from banking transactions includes interest income, commission income and net trading income.
Th e equity investment in Deutsche Postbank AG attributable to Deutsche Post AG had a market valuation of € 1,977 million as
at 31 December 2009, based on the price of € 22.88 per share. As at 31 December 2009, Deutsche Post AG held 86,417,432 shares of Deutsche Postbank. All Postbank shares were pledged as collateral in connection with the second and third tranches of the sale of the interest in Postbank, see Notes 2, 3 and 50.
| € m | 1 Jan. 2008 adjusted 1) |
2008 adjusted 1) |
2009 |
|---|---|---|---|
| Available-for-sale fi nancial assets | 301 | 158 | 150 |
| Loans and receivables | 579 | 461 | 353 |
| Assets at fair value through profi t or loss |
95 | 89 | 805 |
| Held-to-maturity fi nancial assets | 10 | 10 | 27 |
| Lease receivables | 0 | 0 | 52 |
| Miscellaneous | 0 | 0 | 61 |
| Non-current fi nancial assets | 985 | 718 | 1,448 |
1) Prior-period amount adjusted, see Note 5.
Following the revision of the chart of accounts, the derivatives previously reported under other non-current assets (2008: € 89 million; 1 January 2008: € 95 million) and the rental deposits provided (2008: € 55 million; 1 January 2008: € 33 million) were reclassifi ed to non-current fi nancial assets, and the accounts within the "loans and receivables" and "fi nancial assets available for sale" categories were rearranged.
Th e assets at fair value through profi t or loss mainly consist of a put option related to the sale of the interest in Deutsche Postbank to Deutsche Bank AG, see Note 50. Th is item also includes derivatives for hedging the currency risk.
Write-downs on fi nancial assets amounting to € 33 million (previous year: € 30 million) were recognised in the income statement because the assets were impaired. A large proportion (€ 26 million) of this amount is attributable to loans and receivables, while € 6 million is attributable to assets at fair value through profi t or loss and € 1 million to available-for-sale fi nancial assets.
Compared with the market rates of interest prevailing at 31 December 2009 for comparable non-current fi nancial assets, most of the housing promotion loans are low-interest or interestfree loans. Th ey are recognised in the balance sheet at a present value of € 21 million (previous year: € 19 million). Th e principal amount of these loans totals € 23 million (previous year: € 24 million).
Details on restraints on disposal are contained in Note 50 (Collateral).
| € m | 1 Jan. 2008 adjusted 1) |
2008 adjusted 1) |
2009 |
|---|---|---|---|
| Pension assets | 247 | 262 | 288 |
| Miscellaneous | 122 | 108 | 60 |
| Other non-current assets | 369 | 370 | 348 |
1) Prior-period amount adjusted, see Note 5.
As part of the revision of the chart of accounts, the derivatives (2008: € 89 million; 1 January 2008: € 95 million) and the rental deposits provided (2008: € 55 million; 1 January 2008: € 33 million) were reclassifi ed to non-current fi nancial assets.
Further information on pension assets can be found in Note 44.
| 2008 | 2009 | |||
|---|---|---|---|---|
| Assets Liabilities | ||||
| 98 | 294 | 57 | 295 | |
| 61 | 38 | 90 | 32 | |
| 47 | 2 | 3 | 0 | |
| 9 | 29 | 33 | 36 | |
| 29 | 41 | 33 | 41 | |
| 338 | 245 | 211 | 14 | |
| 293 | 1 | 412 | 97 | |
| 167 | 250 | 67 | 47 | |
| 58 | – | 142 | – | |
| 1,100 | 900 | 1,048 | 562 | |
| – 67 | – 67 | –380 | –380 | |
| 1,033 | 833 | 668 | 182 | |
| Assets Liabilities |
€ 85 million (previous year: € 2 million) of the deferred taxes on tax loss carryforwards relates to tax loss carryforwards in Germany and € 57 million (previous year: € 56 million) to foreign tax loss carryforwards.
No deferred tax assets were recognised for tax loss carryforwards of around € 16.6 billion (previous year: € 16.3 billion) and for temporary diff erences of around € 3,208 million (previous year: € 696 million), as it can be assumed that the Group will probably not be able to use these tax loss carryforwards and temporary differences in its tax planning. Most of the loss carryforwards are attributable to Deutsche Post AG. It will be possible to utilise them for an indefi nite period of time. In the case of the foreign companies, the signifi cant loss carryforwards will not lapse before 2020.
Deferred taxes have not been recognised for temporary differences of € 464 million (previous year: € 386 million) relating to earnings of German and foreign subsidiaries because these temporary diff erences will probably not reverse in the foreseeable future.
Maturity structure
| € m | |||
|---|---|---|---|
| Short-term | Long-term | Total | |
| 2009 | |||
| Deferred tax assets | 120 | 548 | 668 |
| Deferred tax liabilities | 30 | 152 | 182 |
| 2008 | |||
| Deferred tax assets | 284 | 749 | 1,033 |
| Deferred tax liabilities | 488 | 345 | 833 |
Standard costs for inventories of postage stamps and spare parts in freight centres amounted to € 13 million (previous year: € 12 million). Th ere was no requirement to charge signifi cant valuation allowances on these inventories.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Finished goods and goods purchased | ||
| and held for resale | 57 | 47 |
| Spare parts for aircraft | 6 | 7 |
| Raw materials, consumables and supplies | 187 | 156 |
| Work in progress | 17 | 15 |
| Advance payments | 2 | 1 |
| Inventories | 269 | 226 |
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Income tax assets | 191 | 196 |
| Income tax liabilities | 351 | 292 |
All income tax assets and liabilities are current and have maturities of less than one year.
Following the revision of the chart of accounts, the derivatives (2008: € 475 million; 1 January 2008: € 52 million), lease receivables (2008: € 25 million; 1 January 2008: € 17 million), other fi nancial assets (2008: € 124 million; 1 January 2008: € 39 million) and rental deposits (2008: € 10 million; 1 January 2008: € 22 million) previously accounted for under this item were reclassifi ed into current fi nancial assets.
| € m | 1 Jan. 2008 adjusted1) |
2008 adjusted1) |
2009 |
|---|---|---|---|
| Trade receivables | 6,377 | 5,591 | 4,881 |
| Prepaid expenses | 1,038 | 676 | 620 |
| Deferred revenue | 558 | 462 | 472 |
| Current tax receivables | 461 | 450 | 386 |
| Income from cost absorption | 83 | 71 | 65 |
| Creditors with debit balances | 63 | 51 | 52 |
| Receivables from sales of assets | 196 | 56 | 44 |
| Receivables from Group companies | 53 | 34 | 28 |
| Receivables from employees | 30 | 28 | 26 |
| Receivables from loss compensation (recourse claims) |
19 | 17 | 19 |
| Receivables from cash-on-delivery | 18 | 15 | 18 |
| Receivables from insurance business | 32 | 37 | 15 |
| Receivables from private postal | |||
| agencies | 7 | 13 | 9 |
| Miscellaneous other assets | 741 | 580 | 522 |
| Receivables and other current assets | 9,676 | 8,081 | 7,157 |
1) Prior-period amount adjusted, see Note 5.
Of the tax receivables, € 307 million (previous year: € 341 million) relates to VAT, € 34 million (previous year: € 43 million) to customs and duties and € 45 million (previous year: € 66 million) to other tax receivables. Miscellaneous other assets include a large number of individual items.
Following the revision of the chart of accounts, the derivatives (2008: € 475 million; 1 January 2008: € 52 million), lease receivables (2008: € 25 million; 1 January 2008: € 17 million), other fi nancial assets (2008: € 124 million; 1 January 2008: € 39 million) and rental deposits (2008: € 10 million; 1 January 2008: € 22 million; recognised in loans and receivables), which were all previously accounted for under receivables and other current assets were reclassifi ed into current fi nancial assets.
| € m | 1 Jan. 2008 adjusted1) |
2008 adjusted1) |
2009 |
|---|---|---|---|
| Available-for-sale fi nancial assets | 20 | 13 | 1,618 |
| Loans and receivables | 73 | 45 | 90 |
| Held-to-maturity fi nancial assets | 1 | 1 | 1 |
| Financial asset recognised at fair value through profi t or loss |
52 | 475 | 31 |
| Lease receivables | 17 | 25 | 48 |
| Other | 39 | 125 | 106 |
| Current fi nancial assets | 202 | 684 | 1,894 |
| Cash and cash equivalents | 1,350 | 3,064 |
|---|---|---|
| Other cash and cash equivalents | 270 | 138 |
| Cash equivalents | 56 | 1,982 |
| Bank balances | 658 | 612 |
| Money in transit | 346 | 313 |
| Cash | 20 | 19 |
| 2008 | 2009 | |
| € m |
1) Prior-period amount adjusted, see Note 5.
Of the available-for-sale fi nancial assets, € 1,605 million were measured at fair value. Th e Group received cash fl ows from the sale of Deutsche Bank shares which were invested on the capital market (category: available-for-sale fi nancial assets).
Details on restraints on disposal are contained in Note 50.
Th e amounts recognised in these accounts mainly relate to the following items:
| € m | Assets | Liabilities | |||
|---|---|---|---|---|---|
| 2008 | 2009 | 2008 | 2009 | ||
| dhl Express France sas, France – Day Defi nite Domestic business | 0 | 70 | 0 | 98 | |
| dhl Express uk, uk – Day Defi nite Domestic business | 0 | 51 | 0 | 51 | |
| Deutsche Post ag – real estate | 31 | 18 | 0 | 0 | |
| dhl Supply Chain, Spain – buildings | 15 | 16 | 0 | 0 | |
| dhl Network Operations, usa – aircraft | 2 | 12 | 0 | 0 | |
| Astar AirCargo Inc., usa – aircraft | 0 | 5 | 0 | 0 | |
| Deutsche Postbank Group | 231,824 | 0 | 227,736 | 0 | |
| Other | 0 | 7 | 0 | 1 | |
| Assets held for sale and liabilities associated with assets held for sale | 231,872 | 179 | 227,736 | 150 |
DHL Express France intends to dispose of its Day Defi nite Domestic business. Th e fi nancial investor Caravelle is a potential buyer. Th e assets and liabilities were reclassifi ed into assets held for sale and liabilities associated with assets held for sale in accordance with IFRS 5.
€ m
| 31 Dec. 2009 | |
|---|---|
| assets | |
| Non-current fi nancial assets | 2 |
| Receivables and other current assets | 62 |
| Cash and cash equivalents | 6 |
| Total assets | 70 |
| equity and liabilities | |
| Non-current provisions | 8 |
| Current provisions | 14 |
| Current fi nancial liabilities | 6 |
| Current liabilities | 70 |
| Total equity and liabilities | 98 |
In addition, DHL Express UK sold its Day Defi nite Domestic business to Home Delivery Network (HDN), a British delivery and collection service. Th e sale was still subject to the cartel authorities' approval as at the balance sheet date. Th e agreement is restricted to the Day Defi nite Domestic business of DHL Express. In the UK, DHL Express will focus in the future solely on international and domestic Time Defi nite and Same Day express deliveries. Th e assets and liabilities are recognised as assets held for sale and liabilities associated with assets held for sale in accordance with IFRS 5.
| € m | |
|---|---|
| 31 Dec. 2009 | |
| assets | |
| Inventories | 1 |
| Receivables and other current assets | 50 |
| Total assets | 51 |
| equity and liabilities | |
| Non-current provisions | 6 |
| Current provisions | 11 |
| Current liabilities | 34 |
| Total equity and liabilities | 51 |
Th e following table shows income and expense attributable to DHL Express UK in equity:
Cumulative income and expense recognised in equity
| € m | Equity attributable to Deutsche Post ag shareholders |
Minority interest |
Total equity |
|---|---|---|---|
| 2009 | |||
| Currency translation reserve | 14 | 0 | 14 |
Th e most recent measurement of non-current assets before reclassifi cation into current assets in accordance with IFRS 5 resulted in an impairment loss of € 32 million each at DHL Express UK and DHL Express France. Aft er the reclassifi cation further adjustments to the fair value less costs to sell were made at DHL Express UK in the amount of € 16 million.
As part of restructuring the US express business and due to contractual agreements and the cancellation of an operating lease, aircraft used by ABX Air were acquired by DHL Network Operations, USA and are now available for sale.
Th e reorganisation of the US express business and the eff ects of the recession created excess capacities at Astar AirCargo. It is therefore planned to sell aircraft for € 5 million.
As at 31 December 2008 and until 28 February 2009, the amounts of Deutsche Postbank Group were recognised as assets held for sale and liabilities associated with assets held for sale in accordance with IFRS 5.
| € m | |
|---|---|
| 31 Dec. 2008 | |
| assets | |
| Intangible assets | 1,400 |
| Property, plant and equipment | 900 |
| Investment property | 73 |
| Non-current fi nancial assets | 111 |
| Deferred tax assets | 557 |
| Income tax assets | 162 |
| Current receivables and other current assets | 810 |
| Receivables and other securities from fi nancial services | 224,394 |
| Cash and cash equivalents | 3,417 |
| Total assets | 231,824 |
| equity and liabilities | |
| Non-current provisions | 2,111 |
| Non-current fi nancial liabilities | 5,431 |
| Deferred tax liabilities | 831 |
| Current provisions | 30 |
| Income tax provisions | 186 |
| Current fi nancial liabilities | 310 |
| Current liabilities | 960 |
| Liabilities from fi nancial services | 217,877 |
| Total equity and liabilities | 227,736 |
Deutsche Postbank Group was deconsolidated as at 28 February 2009 due to the sale of 22.9 % of shares and the associated loss of control. Since 1 March 2009, the remaining 39.5 % of the shares in Deutsche Postbank Group have been recognised as an investment in associates and measured using the equity method. Th e following table shows cumulative income and expense attributable to Deutsche Postbank Group, recognised in equity:
| € m | Equity attributable to Deutsche Post ag shareholders |
Minority interest |
Total equity |
|---|---|---|---|
| 2008 | |||
| ias 39 revaluation reserve | –259 | –263 | – 522 |
| Currency translation reserve | –76 | – 55 | –131 |
| –335 | –318 | – 653 |
KfW Bankengruppe (KfW), see Note 55.1, formerly Kreditanstalt für Wiederaufb au, owns approximately 30.5 % of the share capital of Deutsche Post AG. Th e percentage of free-fl oating shares amounts to 69.5 %.
| Share capital as at 31 December | 1,209,015,874 | 1,209,015,874 |
|---|---|---|
| Free fl oat | 840,738,516 | 840,738,516 |
| KfW | 368,277,358 | 368,277,358 |
| 2008 | 2009 | |
| Number of shares |
Th e issued capital did not change in the year ended on 31 December 2008 and amounts to € 1,209 million. It is composed of 1,209,015,874 no-par value registered shares (ordinary shares), with each individual share having a notional interest of € 1 in the share capital; it is fully paid up.
| As at 31 December | 1,209,015,874 | 1,209,015,874 |
|---|---|---|
| Exercise of options from 2004 sop tranche - contingent capital |
1,545,276 | 0 |
| As at 1 January | 1,207,470,598 | 1,209,015,874 |
| 2008 | 2009 | |
| € |
| Amount (€ m) | Purpose | |
|---|---|---|
| Authorised Capital 2009 | To increase share capital against cash / non-cash contri |
|
| 240 | butions (until 20 April 2014) | |
| Contingent capital | Exercise of option / | |
| 56 | conversion rights |
By way of a resolution adopted by the Annual General Meeting on 21 April 2009, the company is authorised to acquire, until 30 September 2010, own shares amounting to up to a total of 10 % of the share capital existing at the date the resolution was adopted. Th e authorisation permits the Board of Management to exercise it for every purpose authorised by law, particularly to pursue the goals mentioned in the resolution of the Annual General Meeting. Deutsche Post AG did not hold any own shares on 31 December 2009.
Th e equity ratio stood at 23.8 % in fi nancial year 2009 (previous year: 23.8 % based on "Postbank at Equity"). Corporate capital is controlled by the net gearing ratio which is defi ned as net debt divided by the total of equity and net debt. Th e ratio in 2009 was –25.7 % (previous year: 23.7 %).
| € m | 2008 | 2009 |
|---|---|---|
| adjusted 1) | ||
| Aggregate fi nancial liabilities | 4,874 | 7,439 |
| Less cash and cash equivalents | –1,350 | –3,064 |
| Less current fi nancial assets | – 684 | –1,894 |
| Less long-term deposits | –256 | –120 |
| Less long-term derivative instruments | – 89 | – 805 |
| Less fi nancial liabilities to minority shareholders | ||
| of Williams Lea | –29 | –23 |
| Less mandatory exchangeable bond | 0 | –2,670 |
| Less cash collateral | 0 | –1,200 |
| Less net effect from derivatives measurement | ||
| in the context of the Postbank sale | 0 | 647 |
| Net debt / net liquidity | 2,466 | –1,690 |
| Plus total equity | 7,937 | 8,273 |
| Total equity | 10,403 | 6,583 |
| Net gearing ratio in % | 23.7 | –25.7 |
1) Prior-period amount adjusted, see Note 5.
| Other reserves | 439 | 869 |
|---|---|---|
| Currency translation reserve | –1,397 | –1,215 |
| Revaluation reserve in accordance with ifrs 3 | 8 | 7 |
| Hedging reserve in accordance with ias 39 | – 60 | –77 |
| Revaluation reserve in accordance with ias 39 | –254 | 7 |
| Capital reserve | 2,142 | 2,147 |
| 2008 | 2009 | |
| € m |
| € m |
|---|
| Capital reserve as at 31 December | 2,142 | 2,147 |
|---|---|---|
| of which issuance of stock option plans | 4 | 0 |
| of which exercise of stock option plans | 19 | 0 |
| of which Share Matching Scheme | 0 | 5 |
| Additions | 23 | 0 |
| Capital reserve as at 1 January | 2,119 | 2,142 |
| 2008 | 2009 | |
Th e exercise period for the 2004 tranche of the 2003 Stock Option Plan ended on 30 June 2009. Under the plan's terms, all options and stock appreciation rights or SAR of this tranche not exercised until 30 June 2009 were forfeited. As such, no options or SAR have been outstanding under the 2003 Stock Option Plan since 1 July 2009.
A new system to grant variable remuneration components for some of the Group's executives was implemented in the reporting year, which is accounted for as an equity-settled share-based payment in accordance with IFRS 2. Accordingly, the amount of € 5 million was recognised in capital reserves as at 31 December 2009. Further details can be found in Note 54.
Th e revaluation reserve contains gains and losses from changes in the fair values of available-for-sale fi nancial instruments that have been taken directly to equity. Th is reserve is reversed to income either when the assets are sold or otherwise disposed of, or if the fair value of the assets falls permanently below their cost.
€ m
| 2008 | 2009 | |
|---|---|---|
| As at 1 January | –251 | –254 |
| Currency translation differences | 2 | – 5 |
| Unrecognised gains / losses | – 484 | 455 |
| Deferred taxes recognised directly in equity | 29 | 32 |
| Share of associates | 0 | 130 |
| Recognised gains / losses | 450 | –351 |
| Revaluation reserve in accordance with ias 39 | ||
| as at 31 December | –254 | 7 |
Th e reclassifi cations of € 351 million recognised in profi t or loss and the addition to the reserve of € 455 million mainly relate to the sale of Deutsche Postbank AG shares.
Th e hedging reserve is adjusted by the eff ective portion of a cash fl ow hedge. Th e hedging reserve is released to income when the hedged item is settled.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| As at 1 January | – 97 | –32 |
| Additions | – 97 | –1 |
| Disposals in balance sheet (basis adjustment) | 9 | 4 |
| Disposals in income statement | 153 | – 49 |
| Hedging reserve as at 31 December | –32 | –78 |
| Deferred taxes | –28 | 1 |
| Hedging reserve as at 31 December | – 60 | –77 |
Th e change in the hedging reserve is mainly the result of the receipt of previously unrecognised gains and losses from hedging future operating currency transactions. Unrecognised gains of € 54 million (previous year: € –148 million) were taken in the fi nancial year from the hedging reserve and recognised in operating profi t in other operating income; unrecognised losses of € 5 million (previous year: € –5 million) were transferred to net fi nance cost/net fi nancial income. Another € 4 million (previous year: € 9 million) relate to recognised losses from hedging transactions to acquire non-current non-fi nancial assets. Th e losses were attributed to the cost of the assets. Deferred taxes on fair values also aff ected the hedging reserve.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| As at 1 January | 0 | 8 |
| Changes not recognised in income | 8 | –1 |
| Revaluation reserve in accordance with ifrs 3 | ||
| as at 31 December | 8 | 7 |
Th e revaluation reserve in accordance with IFRS 3 includes the hidden reserves of DHL Logistics Co. Ltd., China (former Exel Sinotrans Freight Forwarding Co. Ltd.) from the purchase price allocation. Th ey relate to the customer relationships included in the previous 50 % interest and to adjustments to deferred taxes.
Th e currency translation reserve includes the translation gains and losses generated when consolidating subsidiaries reporting in foreign currency.
| Currency translation reserve as at 31 December | –1,397 | –1,215 |
|---|---|---|
| Changes not recognised in income | – 500 | 151 |
| Changes recognised in income | 0 | 31 |
| As at 1 January | – 897 | –1,397 |
| 2008 | 2009 | |
| € m |
Retained earnings contain the undistributed consolidated profi ts generated in prior periods. Changes in the reserves during the fi nancial year are also presented in the statement of changes in equity.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| As at 1 January | 8,953 | 6,178 |
| Dividend payment | –1,087 | –725 |
| Consolidated net profi t or loss for the period | –1,688 | 644 |
| Miscellaneous other changes | 0 | 1 |
| Retained earnings as at 31 December | 6,178 | 6,098 |
Th e equity attributable to Deutsche Post AG shareholders in fi nancial year 2009 amounted to € 8,176 million (previous year: € 7,826 million).
Dividends paid to the shareholders of Deutsche Post AG are based on the unappropriated surplus of € 881 million reported in the annual fi nancial statements of Deutsche Post AG prepared in accordance with the German Commercial Code. Th e amount of € 156 million remaining aft er deduction of the planned total dividend of € 725 million (which is € 0.60 per share) will be carried forward.
In fi nancial year 2009 a dividend of € 725 million was paid for 2008. In the previous year, dividend payments for 2007 amounted to € 1,087 million. Th is was a dividend per share of € 0.60 for 2008, and of € 0.90 for 2007. Th e dividend is tax-exempt for shareholders resident in Germany. No capital gains tax (investment income tax) will be withheld on the distribution.
Minority interest includes adjustments for the interests of non-Group shareholders in the consolidated equity from acquisition accounting, as well as their interests in profi t or loss. Th e interests relate primarily to the following companies:
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Deutsche Postbank Group | 1,914 | 0 |
| dhl Sinotrans International Air Courier Ltd., China | 67 | 53 |
| Other companies | 45 | 44 |
| Minority interest | 2,026 | 97 |
Th e information below on pension obligations is broken down into the following areas: Germany, UK, Other and the Deutsche Postbank Group. Since March 2009, the Deutsche Postbank Group has been included as an associate. Its amounts were reclassifi ed as at 31 December 2008 in accordance with IFRS 5 and were excluded from the disclosures on pension obligations in 2009.
| € m | |||||
|---|---|---|---|---|---|
| Deutsche Postbank |
|||||
| Germany | uk | Other | Group | Total | |
| 31 December 2009 | |||||
| Provisions for pensions and other employee benefi ts | 4,204 | 187 | 183 | – | 4,574 |
| Pension assets | 0 | 128 | 160 | – | 288 |
| Net pension provisions | 4,204 | 59 | 23 | – | 4,286 |
| 31 December 2008 | |||||
| Provisions for pensions and other employee benefi ts | 4,299 | 183 | 203 | 1,149 | 5,834 |
| Pension assets | 0 | –120 | –142 | 0 | –262 |
| Net pension provisions | 4,299 | 63 | 61 | 1,149 | 5,572 |
| Reclassifi cation in accordance with ifrs 5 | 0 | 0 | 0 | –1,149 | –1,149 |
| Net pension provisions | 4,299 | 63 | 61 | 0 | 4,423 |
Th e majority of the Group's defi ned benefi t obligations relate to plans in Germany and the UK. In addition, signifi cant pension plans are provided in other euro zone countries, Switzerland and the US. Th e actuarial measurement of the main benefi t plans was based on the following assumptions:
| % | Other | ||||
|---|---|---|---|---|---|
| Germany | uk | euro zone | Switzerland | United States | |
| 31 December 2009 | |||||
| Discount rate | 5.25 | 5.75 | 5.25 | 3.00 | 5.75 |
| Future salary increase | 2.50 | 3.84 | 2.63 | 3.00 | – |
| Future infl ation rate | 2.00 | 2.75 | 2.00 | 1.50 | – |
| 31 December 2008 | |||||
| Discount rate | 5.75 | 6.50 | 5.75 | 2.75 | 6.00 |
| Future salary increase | 2.50 | 3.00 – 4.75 | 2.00 – 4.00 | 3.00 | 4.00 |
| Future infl ation rate | 2.00 | 3.25 | 2.00 | 1.50 | 2.50 |
For the German Group companies, longevity was calculated using the Richttafeln 2005 G mortality tables published by Klaus Heubeck. For the British benefi t plans longevity was based on the mortality rates used in the current funding valuation. Th ese are based on mortality analyses specifi c to the plan and include a premium for an expected increase in future life expectancy. Other countries used their own mortality tables.
Th e following average expected return on plan assets was used to compute the expenses for the period:
| % | Germany | uk | Other euro zone |
Switzerland | United States |
|---|---|---|---|---|---|
| 31 December 2009 | |||||
| Average expected return on plan assets | 4.22 | 6.74 | 6.20 | 4.25 | 7.50 |
| 31 December 2008 | |||||
| Average expected return on plan assets | 3.75 – 4.25 | 4.50 – 7.25 | 5.00 – 7.00 | 4.25 | 7.50 |
Th e average expected return on plan assets was determined by taking into account current long-term rates of return on bonds (government and corporate). In this process, suitable risk premiums were applied on the basis of historical market returns and current market expectations taking into account plan asset structures.
| € m | Deutsche Postbank |
||||
|---|---|---|---|---|---|
| Germany | uk | Other | Group | Total | |
| 2009 | |||||
| Present value of defi ned benefi t obligations at 31 December for wholly or partly funded benefi ts | 3,879 | 2,996 | 1,368 | – | 8,243 |
| Present value of defi ned benefi t obligations at 31 December for unfunded benefi ts | 3,251 | 8 | 162 | – | 3,421 |
| Present value of total defi ned benefi t obligations at 31 December | 7,130 | 3,004 | 1,530 | – | 11,664 |
| Fair value of plan assets at 31 December | –2,073 | –3,060 | –1,339 | – | – 6,472 |
| Unrecognised gains (+) / losses (–) | – 852 | 114 | –184 | – | – 922 |
| Unrecognised past service cost | –1 | 0 | 0 | – | –1 |
| Asset adjustment for asset limit | 0 | 1 | 16 | – | 17 |
| Net pension provisions at 31 December | 4,204 | 59 | 23 | – | 4,286 |
| Pension assets at 31 December | 0 | 128 | 160 | – | 288 |
| Provisions for pensions and other employee benefi ts at 31 December | 4,204 | 187 | 183 | – | 4,574 |
| 2008 | |||||
| Present value of defi ned benefi t obligations at 31 December for wholly or partly funded benefi ts | 3,558 | 2,677 | 1,301 | 660 | 8,196 |
| Present value of defi ned benefi t obligations at 31 December for unfunded benefi ts | 3,123 | 7 | 187 | 733 | 4,050 |
| Present value of total defi ned benefi t obligations at 31 December | 6,681 | 2,684 | 1,488 | 1,393 | 12,246 |
| Fair value of plan assets at 31 December | –1,992 | –2,594 | –1,257 | –392 | – 6,235 |
| Unrecognised gains (+) / losses (–) | –388 | –28 | –171 | 148 | – 439 |
| Unrecognised past service cost | –2 | 0 | 0 | 0 | –2 |
| Asset adjustment for asset limit | 0 | 1 | 1 | 0 | 2 |
| Net pension provisions at 31 December | 4,299 | 63 | 61 | 1,149 | 5,572 |
| Pension assets at 31 December | 0 | 120 | 142 | 0 | 262 |
| Provisions for pensions and other employee benefi ts at 31 December | 4,299 | 183 | 203 | 1,149 | 5,834 |
| Reclassifi cation in accordance with ifrs 5 | 0 | 0 | 0 | –1,149 | –1,149 |
| Provisions for pensions and other employee benefi ts at 31 December | 4,299 | 183 | 203 | 0 | 4,685 |
| € m | Deutsche | ||||
|---|---|---|---|---|---|
| Postbank | |||||
| Germany | uk | Other | Group | Total | |
| 2009 | |||||
| Present value of defi ned benefi t obligations at 1 January | 6,681 | 2,684 | 1,488 | – | 10,853 |
| Current service cost, excluding employee contributions | 69 | 40 | 48 | – | 157 |
| Employee contributions | 8 | 18 | 13 | – | 39 |
| Interest cost | 373 | 188 | 72 | – | 633 |
| Benefi t payments | – 487 | –161 | –104 | – | –752 |
| Past service cost | 16 | 0 | 1 | – | 17 |
| Curtailments | 0 | 0 | –23 | – | –23 |
| Settlements | 0 | 0 | 0 | – | 0 |
| Transfers | –1 | 5 | – 6 | – | –2 |
| Acquisitions / divestitures | 0 | 0 | –2 | – | –2 |
| Actuarial gains (–) / losses (+) | 471 | –7 | 36 | – | 500 |
| Currency translation effects | 0 | 237 | 7 | – | 244 |
| Present value of total defi ned benefi t obligations at 31 December | 7,130 | 3,004 | 1,530 | – | 11,664 |
| 2008 | |||||
| Present value of defi ned benefi t obligations at 1 January | 6,923 | 3,752 | 1,427 | 1,427 | 13,529 |
| Current service cost, excluding employee contributions | 77 | 65 | 52 | 25 | 219 |
| Employee contributions | 14 | 21 | 13 | 3 | 51 |
| Interest cost | 366 | 197 | 70 | 78 | 711 |
| Benefi t payments | – 504 | –163 | –74 | – 84 | – 825 |
| Past service cost | 29 | –12 | 1 | –2 | 16 |
| Curtailments | 0 | 0 | –14 | 0 | –14 |
| Settlements | 0 | 0 | 0 | 0 | 0 |
| Transfers | 19 | 38 | – 4 | –1 | 52 |
| Acquisitions / divestitures | 0 | 0 | – 5 | 0 | – 5 |
| Actuarial gains (–) / losses (+) | –243 | –335 | –15 | – 53 | – 646 |
| Currency translation effects | 0 | – 879 | 37 | 0 | – 842 |
| Present value of total defi ned benefi t obligations at 31 December | 6,681 | 2,684 | 1,488 | 1,393 | 12,246 |
| Reclassifi cation in accordance with ifrs 5 | 0 | 0 | 0 | –1,393 | –1,393 |
| Present value of total defi ned benefi t obligations at 31 December | 6,681 | 2,684 | 1,488 | 0 | 10,853 |
| € m | Deutsche | ||||
|---|---|---|---|---|---|
| Germany | uk | Other | Postbank Group |
Total | |
| 2009 | |||||
| Fair value of plan assets at 1 January | 1,992 | 2,594 | 1,257 | – | 5,843 |
| Employer contributions | 203 | 62 | 57 | – | 322 |
| Employee contributions | 0 | 4 | 13 | – | 17 |
| Expected return on plan assets | 76 | 188 | 71 | – | 335 |
| Gains (+) / losses (–) on plan assets | 9 | 138 | 27 | – | 174 |
| Benefi t payments | –207 | –160 | – 90 | – | – 457 |
| Transfers | 0 | 5 | 1 | – | 6 |
| Acquisitions | 0 | 0 | 0 | – | 0 |
| Settlements | 0 | 0 | 0 | – | 0 |
| Currency translation effects | 0 | 229 | 3 | – | 232 |
| Fair value of plan assets at 31 December | 2,073 | 3,060 | 1,339 | – | 6,472 |
| 2008 | |||||
| Fair value of plan assets at 1 January | 1,914 | 4,048 | 1,418 | 392 | 7,772 |
| Employer contributions | 215 | 56 | 44 | 7 | 322 |
| Employee contributions | 0 | 21 | 13 | 0 | 34 |
| Expected return on plan assets | 74 | 243 | 82 | 16 | 415 |
| Gains (+) / losses (–) on plan assets | – 8 | –760 | –273 | – 6 | –1,047 |
| Benefi t payments | –203 | –162 | – 62 | –17 | – 444 |
| Transfers | 0 | 36 | 0 | 0 | 36 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
| Settlements | 0 | 0 | –11 | 0 | –11 |
| Currency translation effects | 0 | – 888 | 46 | 0 | – 842 |
| Fair value of plan assets at 31 December | 1,992 | 2,594 | 1,257 | 392 | 6,235 |
| Reclassifi cation in accordance with ifrs 5 | 0 | 0 | 0 | –392 | –392 |
| Fair value of plan assets at 31 December | 1,992 | 2,594 | 1,257 | 0 | 5,843 |
Following the negative returns in the previous year due to the crisis on the fi nancial markets, all major plans generated positive returns in fi nancial year 2009. Th e total return (before exchange gains) was at approximately 9 % (around € 510 million). Exchange gains in the British benefi t plans in particular increased the plan assets expressed in euros additionally by around 4 % (around € 230 million). An equally large loss is, however, recognised on the benefi t obligations.
Th e plan assets are composed of fi xed-income securities (37 %; previous year: 33 %), equities and investment funds (29 %; previous year: 28 %), real estate (20 %; previous year: 20 %), cash and cash equivalents (11 %; previous year: 11 %), insurance contracts (1 %; previous year: 6 %) and other assets (2 %; previous year: 2 %). 83 % (previous year: 84 %) of the real estate has a fair value of € 1,050 million (previous year: € 1,041 million) and is owner-occupied by Deutsche Post AG.
Until fi nancial year 2008, the funded status is recognised with the amounts of Deutsche Postbank Group included.
| € m | 2005 | 2006 | 2007 | 2008 | 2009 |
|---|---|---|---|---|---|
| Total | Total | Total | Total | Total | |
| Present value of defi ned benefi t obligations at 31 December |
14,501 | 15,205 | 13,529 | 12,246 | 11,664 |
| Fair value of plan assets | |||||
| at 31 December | –7,049 | –7,784 | –7,772 | – 6,235 | – 6,472 |
| Funded status | 7,452 | 7,421 | 5,757 | 6,011 | 5,192 |
Excluding the amounts of Deutsche Postbank Group would have resulted in a present value of defi ned benefi t obligations of € 10,853 million as at 31 December 2008, a fair value of plan assets of € 5,843 million and a funded status of € 5,010 million in total.
Until fi nancial year 2008, the gains and losses are recognised with the amounts of Deutsche Postbank Group included.
| € m | 2005 Total |
2006 Total |
2007 Total |
2008 Total |
2009 Total |
|---|---|---|---|---|---|
| Actual return on plan assets | 187 | 448 | 473 | – 632 | 509 |
| Expected return on plan assets | 129 | 391 | 439 | 415 | 335 |
| Experience gains (+) / losses (–) on plan assets |
58 | 57 | 34 | –1,047 | 174 |
Excluding the amounts of Deutsche Postbank Group would have resulted, in fi nancial year 2008, in an actual return on plan assets of € –642 million, an expected return on plan assets of € 399 million and experience gains (+) / losses (–) on plan assets of € – 1,041 million.
Total actuarial gains and losses on defi ned benefi t obligations are recognised until fi nancial year 2008 with the amounts of Deutsche Postbank Group included.
| € m | 2005 Total |
2006 Total |
2007 Total |
2008 Total |
2009 Total |
|---|---|---|---|---|---|
| Experience gains (+) / losses (–) on defi ned benefi t obligations |
12 | –226 | 116 | 11 | 61 |
| Gains (+) / losses (–) on defi ned benefi t obligations arising from changes in assumptions |
–1,080 | 488 | 1,298 | 635 | – 561 |
| Total actuarial gains (+) / losses (–) on defi ned benefi t obligations |
–1,068 | 262 | 1,414 | 646 | – 500 |
Excluding the amounts of Deutsche Postbank Group would have resulted, in fi nancial year 2008, in experience gains on defi ned benefi t obligations of € 11 million, gains on defi ned benefi t obligations of € 582 million arising from changes in assumptions and € 593 million of total actuarial gains on defi ned benefi t obligations.
| € m | Deutsche | ||||
|---|---|---|---|---|---|
| Postbank | |||||
| Germany | uk | Other | Group | Total | |
| 2009 | |||||
| Net pension provisions at 1 January | 4,299 | 63 | 61 | – | 4,423 |
| Pension expense | 381 | 40 | 40 | – | 461 |
| Benefi t payments | –280 | –1 | –14 | – | –295 |
| Employer contributions | –203 | – 62 | – 57 | – | –322 |
| Employee contributions | 8 | 14 | 0 | – | 22 |
| Acquisitions / divestitures | 0 | 0 | –2 | – | –2 |
| Transfers | –1 | 0 | –7 | – | – 8 |
| Currency translation effects | 0 | 5 | 2 | – | 7 |
| Net pension provisions at 31 December | 4,204 | 59 | 23 | – | 4,286 |
| 2008 | |||||
| Net pension provisions at 1 January | 4,383 | 140 | 76 | 1,143 | 5,742 |
| Pension expense | 399 | 3 | 57 | 78 | 537 |
| Benefi t payments | –301 | –1 | –12 | – 67 | –381 |
| Employer contributions | –215 | – 56 | – 44 | –7 | –322 |
| Employee contributions | 14 | 0 | 0 | 3 | 17 |
| Acquisitions / divestitures | 0 | 0 | – 5 | 0 | – 5 |
| Transfers | 19 | 2 | – 4 | –1 | 16 |
| Currency translation effects | 0 | –25 | –7 | 0 | –32 |
| Net pension provisions at 31 December | 4,299 | 63 | 61 | 1,149 | 5,572 |
| Reclassifi cation in accordance with ifrs 5 | 0 | 0 | 0 | –1,149 | –1,149 |
| Net pension provisions at 31 December | 4,299 | 63 | 61 | 0 | 4,423 |
Payments amounting to € 641 million are expected with regard to net pension provisions in 2010 (€ 288 million of this relates to the Group's expected direct pension payments and € 353 million to expected employer contributions to pension funds).
| € m | Deutsche | ||||
|---|---|---|---|---|---|
| Postbank | |||||
| Germany | uk | Other | Group | Total | |
| 2009 | |||||
| Current service cost, excluding employee contributions | 69 | 40 | 48 | – | 157 |
| Interest cost | 373 | 188 | 72 | – | 633 |
| Expected return on plan assets | –76 | –188 | –71 | – | –335 |
| Recognised past service cost | 17 | 0 | 1 | – | 18 |
| Recognised actuarial gains (–) / losses (+) | –2 | 0 | –3 | – | – 5 |
| Effects of curtailments | 0 | 0 | –20 | – | –20 |
| Effects of settlements | 0 | 0 | 0 | – | 0 |
| Effects of asset limit | 0 | 0 | 13 | – | 13 |
| Pension expense from continuing operations | 381 | 40 | 40 | – | 461 |
| 2008 | |||||
| Current service cost, excluding employee contributions | 77 | 65 | 52 | 25 | 219 |
| Interest cost | 366 | 197 | 70 | 78 | 711 |
| Expected return on plan assets | –74 | –243 | – 82 | –16 | – 415 |
| Recognised past service cost | 31 | –12 | 1 | –2 | 18 |
| Recognised actuarial gains (–) / losses (+) | –1 | – 4 | 42 | –7 | 30 |
| Effects of curtailments | 0 | 0 | 16 | 0 | 16 |
| Effects of settlements | 0 | 0 | 0 | 0 | 0 |
| Effects of asset limit | 0 | 0 | – 42 | 0 | – 42 |
| Pension expense | 399 | 3 | 57 | 78 | 537 |
| Pension expense from discontinued operations | 0 | 0 | 0 | –78 | –78 |
| Pension expense from continuing operations | 399 | 3 | 57 | 0 | 459 |
€ 163 million (previous year: € 225 million, adjusted) of the entire pension expense from continuing operations were included in staff costs in 2009, € 298 million (previous year: € 234 million, adjusted) were included in net other fi nance cost / net other fi nancial income.
| € m | Non-current | Current | Total | |||
|---|---|---|---|---|---|---|
| 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | |
| Other employee benefi ts | 1,006 | 815 | 276 | 307 | 1,282 | 1,122 |
| Restructuring provisions | 902 | 743 | 1,045 | 840 | 1,947 | 1,583 |
| Technical reserves (insurance) | 311 | 330 | 186 | 198 | 497 | 528 |
| Postage stamps | 0 | 0 | 500 | 500 | 500 | 500 |
| Miscellaneous provisions | 292 | 387 | 800 | 801 | 1,092 | 1,188 |
| 2,511 | 2,275 | 2,807 | 2,646 | 5,318 | 4,921 |
| € m | Other employee |
Restructuring | Technical reserves |
Postage | Miscellaneous | |
|---|---|---|---|---|---|---|
| As at 1 January 2009 | benefi ts 1,282 |
provisions 1,947 |
(insurance) 497 |
stamps 500 |
provisions 1,092 |
Total 5,318 |
| Changes in consolidated group | – 6 | – 8 | 0 | 0 | – 8 | –22 |
| Utilisation | – 626 | –1,091 | – 95 | – 500 | –758 | –3,070 |
| Currency translation differences | 1 | 7 | 7 | 0 | 25 | 40 |
| Reversal | –241 | – 474 | 0 | 0 | – 60 | –775 |
| Interest cost added back | 62 | 45 | 22 | 0 | 12 | 141 |
| Reclassifi cation | 3 | –35 | 0 | 0 | 32 | 0 |
| Additions | 647 | 1,192 | 97 | 500 | 853 | 3,289 |
| As at 31 December 2009 | 1,122 | 1,583 | 528 | 500 | 1,188 | 4,921 |
Th e provision for other employee benefi ts primarily covers workforce reduction expenses (severance payments, transitional benefi ts, partial retirement etc.).
Th e restructuring provisions comprise all expenses resulting from the restructuring measures within the US express business as well as in other areas of the Group. Th ese are measures which relate primarily to termination benefi t obligations to employees (partial retirement programmes, transitional benefi ts) and expenses from the closure of terminals, for instance.
Th e technical reserves (insurance) mainly consist of outstanding loss reserves and IBNR reserves; further details can be found in Note 7.
Th e provision for postage stamps covers outstanding obligations to customers for letter and parcel deliveries from postage stamps sold but still unused by customers, and is based on studies by market research companies. It is measured at the nominal value of the stamps issued.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Tax provisions | 328 | 315 |
| Litigation costs | 117 | 136 |
| Risks from business activities | 95 | 147 |
| Postal Civil Service Health Insurance Fund | 31 | 22 |
| Welfare benefi ts for civil servants | 25 | 22 |
| Staff-related provisions | 22 | 22 |
| Miscellaneous other provisions | 474 | 524 |
| Miscellaneous provisions | 1,092 | 1,188 |
Of the tax provisions, € 218 million (previous year: € 227 million) relates to VAT, € 9 million (previous year: € 15 million) to customs and duties and € 88 million (previous year: € 86 million) to other tax provisions.
Risks from business activities comprise obligations such as expected losses and warranty obligations. Miscellaneous other provisions include a large number of individual items, none of which exceeds € 30 million.
Th e maturity structure of the provisions recognised in fi nancial year 2009 is as follows:
| € m | Less | More | |||||
|---|---|---|---|---|---|---|---|
| than 1 year | 1 to 2 years | 2 to 3 years | 3 to 4 years | 4 to 5 years | than 5 years | Total | |
| 2009 | |||||||
| Other employee benefi ts | 307 | 159 | 169 | 110 | 100 | 277 | 1,122 |
| Restructuring provisions | 840 | 124 | 62 | 33 | 41 | 483 | 1,583 |
| Technical reserves (insurance) | 198 | 129 | 81 | 45 | 33 | 42 | 528 |
| Postage stamps | 500 | 0 | 0 | 0 | 0 | 0 | 500 |
| Miscellaneous provisions | 801 | 114 | 49 | 54 | 12 | 158 | 1,188 |
| 2,646 | 526 | 361 | 242 | 186 | 960 | 4,921 |
Following the revision of the chart of accounts, the derivatives (2008: € 652 million; 1 January 2008: € 157 million) formerly recognised in other liabilities, were reclassifi ed to fi nancial liabilities "Liabilities recognised at fair value through profi t or loss"; additional fi nancial liabilities (2008: € 125 million; 1 January 2008: € 186 million) were reclassifi ed from miscellaneous other liabilities into other fi nancial liabilities, see Notes 46.4 and 46.5. Th e priorperiod amounts were adjusted accordingly. Th e fi nancial liabilities comprise all interest-bearing obligations of the Group.
| € m | Non-current | Current | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 Jan. 2008 adjusted 1) |
2008 adjusted1) |
2009 1 Jan. 2008 adjusted1) |
2008 adjusted1) |
2009 1 Jan. 2008 adjusted1) |
2008 adjusted1) |
2009 | ||||
| Bonds | 1,950 | 2,019 | 1,870 | 2 | 0 | 0 | 1,952 | 2,019 | 1,870 | |
| Due to banks | 616 | 450 | 197 | 362 | 630 | 380 | 978 | 1,080 | 577 | |
| Finance lease liabilities | 551 | 499 | 241 | 74 | 32 | 28 | 625 | 531 | 269 | |
| Liabilities to Group companies | 42 | 121 | 98 | 23 | 63 | 28 | 65 | 184 | 126 | |
| Liabilities recognised at fair value through profi t or loss | 97 | 103 | 84 | 60 | 549 | 57 | 157 | 652 | 141 | |
| Other fi nancial liabilities | 5,582 | 260 | 4,209 | 1,165 | 148 | 247 | 6,747 | 408 | 4,456 | |
| Financial liabilities | 8,838 | 3,452 | 6,699 | 1,686 | 1,422 | 740 | 10,524 | 4,874 | 7,439 |
1) Prior-period amount adjusted, see Note 5.
Th e following table contains further details on the company's major bonds. Th e bonds issued by Deutsche Post Finance B.V. are fully guaranteed by Deutsche Post AG.
| 2008 | 2009 | |||||||
|---|---|---|---|---|---|---|---|---|
| Carrying amount |
Fair value | Carrying amount |
Fair value | |||||
| Nominal coupon | Issue volume | Issuer | € m | € m | € m | € m | ||
| Bond 2002 / 2012 | 5.125 % | € 679 million | Deutsche Post Finance b. v. | 712 | 710 | 721 | 723 | |
| Bond 2003 / 2014 | 4.875 % | € 926 million | Deutsche Post Finance b. v. | 958 | 933 | 957 | 981 |
Th e following table contains the terms and conditions of signifi cant individual contracts reported under amounts due to banks. Th e liabilities due to banks mentioned are fully guaranteed by Deutsche Post AG.
| Carrying amount 2008 |
Carrying amount 2009 |
||||
|---|---|---|---|---|---|
| Bank | Interest rate | End of term | € m | € m | |
| Deutsche Post International b. v., Netherlands | European Investment Bank Luxembourg | 4.923 | 12 / 2011 | 117 | 114 |
| Deutsche Post International b. v., Netherlands | European Investment Bank Luxembourg | 3-month fl oater | 06 / 2011 | 40 | 24 |
| Deutsche Post International b. v., Netherlands | European Investment Bank Luxembourg | 5.81 | 02 / 2011 | 19 | 14 |
| Deutsche Post ag, Germany | dz Bank | 4.565 | 12 / 2010 | 201 | 201 |
| Deutsche Post ag, Germany | seb ag | 3.100 | 01 / 2009 | 249 | 0 |
| Other | 454 | 224 | |||
| 1,080 | 577 |
Finance lease liabilities mainly relate to the following items:
| € m | ||||||
|---|---|---|---|---|---|---|
| Leasing partner | Interest rate | End of term | Asset | 2008 | 2009 | |
| dhl Aviation (Netherlands) b. v., Netherlands | Barclays Mercantile Business Financing Limited, London |
3.745 % | 2027 / 2028 | 16 aircraft | 289 | 34 |
| Deutsche Post Immobilien GmbH, Germany | Lorac Investment Management sarl |
6 % | 2016 | Real estate | 17 | 15 |
| dhl Express (us) Inc., usa | Wachovia Financial Services; Wells Fargo |
6.739 % | 2019 / 2022 | Sorting system software |
37 | 35 |
| scm Supply Chain Management Inc., Canada | Bank of Nova Scotia | 1.35 – 1.55 % | 2012 / 2013 | Warehouse, offi ce equipment |
51 | 41 |
| Deutsche Post ag, Germany | t-Systems Enterprise Services GmbH, Germany |
5 % | 2011 | it equipment | 13 | 19 |
Th e liabilities of DHL Aviation were settled prematurely in fi nancial year 2009. Th e leased assets are recognised in property, plant and equipment at carrying amounts of € 521 million (previous year: € 592 million). Th e diff erence between the carrying amounts of the assets and the liabilities results from longer economic useful lives of the assets compared with a shorter repayment period for the rental. Th e notional amount of the minimum lease payments totals € 319 million (previous year: € 869 million).
| € m | Present value (finance lease liabilities) |
Minimum lease payments notional amount |
||||
|---|---|---|---|---|---|---|
| 2008 | 2009 | 2008 | 2009 | |||
| Less than 1 year | 32 | 28 | 34 | 29 | ||
| 1 to 5 years | 137 | 155 | 168 | 180 | ||
| More than 5 years | 362 | 86 | 667 | 110 | ||
| Total | 531 | 269 | 869 | 319 |
46.4 Financial liabilities recognised at fair value through profi t or loss Th e amounts recognised in this account relate to the negative fair values of derivative instruments:
| € m | 1. Jan. 2008 adjusted 1) |
2008 adjusted 1) |
2009 |
|---|---|---|---|
| Financial liabilities recognised at fair value through profi t or loss |
157 | 652 | 141 |
1) Prior-period amount adjusted, see Note 5.
Further details on the changes can be found in Note 50.
| € m | 1 Jan. 2008 adjusted 1) |
2008 adjusted 1) |
2009 | |
|---|---|---|---|---|
| Mandatory exchangeable | Deutsche | |||
| bond (with accrued interest) | Post ag | 0 | 0 | 2,670 |
| Other liabilities related to the | ||||
| sale of Deutsche Postbank | Deutsche | |||
| shares | Post ag | 0 | 0 | 1,320 |
| Loan notes due to Exel's | Deutsche | |||
| existing shareholders | Post ag | 126 | 77 | 61 |
| Subordinated debt | Deutsche | |||
| Postbank | ||||
| Group | 5,603 | 0 | 0 | |
| Miscellaneous fi nancial | Other Group | |||
| liabilities | companies | 1,018 | 331 | 405 |
| Other fi nancial liabilities | 6,747 | 408 | 4,456 |
1) Prior-period amount adjusted, see Note 5.
Th e increase in other fi nancial liabilities mainly results from the sale of Deutsche Postbank shares. Financial liabilities consist of a mandatory exchangeable bond on 60 million Postbank shares, cash collateral on the purchase of another 26 million Postbank shares and a payment on settled hedging transactions signed to hedge Deutsche Bank shares, see Note 2.
| € m | Non-current | Current | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 Jan. 2008 adjusted1) |
2008 adjusted1) |
2009 1 Jan. 2008 adjusted1) |
2008 adjusted1) |
2009 1 Jan. 2008 adjusted1) |
2008 adjusted1) |
2009 | ||||
| Other liabilities | 148 | 233 | 372 | 4,902 | 4,066 | 3,674 | 5,050 | 4,299 | 4,046 |
1) Prior-period amount adjusted, see Note 5.
| € m | 1 Jan. 2008 | 2008 | 2009 |
|---|---|---|---|
| adjusted1) | adjusted1) | ||
| Tax liabilities | 841 | 672 | 661 |
| Incentive bonuses | 391 | 430 | 477 |
| Compensated absences | 420 | 440 | 410 |
| Payable to employees and members | |||
| of executive bodies | 486 | 345 | 288 |
| Liabilities from the sale of residential building loans, of which non-current: |
|||
| 281 (2008: 113; 1 January 2008: 106) | 234 | 222 | 287 |
| Deferred income, of which non-current; | |||
| 41 (2008: 48; 1 January 2008: 40) | 453 | 313 | 266 |
| Wages, salaries, severance | 312 | 244 | 229 |
| Social security liabilities | 223 | 195 | 159 |
| Debtors with credit balances | 71 | 95 | 105 |
| Overtime claims | 98 | 93 | 88 |
| Other compensated absences | 65 | 57 | 71 |
| cod liabilities | 78 | 51 | 47 |
| Insurance liabilities | 41 | 29 | 25 |
| Liabilities from cheques issued | 8 | 20 | 19 |
| Accrued rentals | 25 | 20 | 19 |
| Accrued insurance premiums | |||
| for damages and similar liabilities | 17 | 18 | 15 |
| Liabilities for damages, of which non | |||
| current: 0 (2008: 3; 1 January 2008: 2) | 20 | 17 | 15 |
| Other liabilities to customers | 5 | 2 | 0 |
| Settlement offered to bhw minority | |||
| shareholders | 39 | 0 | 0 |
| Liabilities to Bundes-Pensions-Service | |||
| für Post und Telekommunikation e. V. | 4 | 0 | 0 |
| Miscellaneous other liabilities, of which non-current: 50 |
|||
| (2008: 69; 1 January 2008: 0) | 1,219 | 1,036 | 865 |
| 5,050 | 4,299 | 4,046 | |
1) Prior-period amount adjusted, see Note 5.
Following the revision of the chart of accounts, the derivatives (2008: € 652 million; 1 January 2008: € 157 million) and various other fi nancial liabilities (2008: € 125 million; 1 January 2008: € 186 million) were reclassifi ed from other liabilities into fi nancial liabilities; liabilities to Group companies (2008: € 36 million; 1 January 2008: € 69 million) were reclassifi ed into trade payables. Th e prior-period amounts were adjusted accordingly.
Of the tax liabilities, € 318 million (previous year: € 349 million) relates to VAT, € 214 million (previous year: € 199 million) to customs and duties and € 129 million (previous year: € 124 million) to other tax liabilities.
Th e liabilities from the sale of residential building loans relate to obligations of Deutsche Post AG to pay interest subsidies to borrowers to off set the deterioration in borrowing terms in conjunction with the assignment of receivables in previous years, as well as pass-through obligations from repayments of principal and interest for residential building loans sold.
Other liabilities include a large number of individual items.
| € m | 1 Jan. 2008 | 2008 | 2009 |
|---|---|---|---|
| adjusted1) | adjusted1) | ||
| Less than 1 year | 4,902 | 4,066 | 3,674 |
| 1 to 2 years | 22 | 30 | 36 |
| 2 to 3 years | 12 | 27 | 13 |
| 3 to 4 years | 11 | 26 | 7 |
| 4 to 5 years | 1 | 25 | 34 |
| More than 5 years | 102 | 125 | 282 |
| Maturity structure of other liabilities | 5,050 | 4,299 | 4,046 |
1) Prior-period amount adjusted, see Note 5.
Th ere is no signifi cant diff erence between the carrying amounts and the fair values of the other liabilities due to their short maturities and the marked-to-market interest rates. Th ere is no signifi cant interest rate risk because most of these instruments bear fl oating rates of interest at market rates.
Following the revision of the chart of accounts, the liabilities to Group companies (2008: € 36 million; 1 January 2008: € 69 million) formerly recognised in other liabilities, were reclassifi ed into trade payables. Th e prior-period amounts were adjusted accordingly.
| € m | 1 Jan. 2008 adjusted1) |
2008 adjusted1) |
2009 |
|---|---|---|---|
| Trade payables | 5,453 | 5,016 | 4,861 |
1) Prior-period amount adjusted, see Note 5.
€ 862 million of the trade payables (previous year: € 986 million) relate to Deutsche Post AG. Trade payables primarily have a maturity of less than one year. Th e reported carrying amount of trade payables corresponds to their fair value.
Th e cash fl ow statement of the continuing operations is prepared in accordance with IAS 7 (Cash Flow Statements) and discloses the cash fl ows in order to present the source and application of cash and cash equivalents. It distinguishes between cash fl ows from operating, investing and fi nancing activities. Cash and cash equivalents are composed of cash, cheques and bank balances with a maturity of not more than three months, and correspond to the cash and cash equivalents reported on the balance sheet. Th e eff ects of currency translation and changes in the consolidated group are adjusted when calculating cash and cash equivalents. As Deutsche Postbank Group ceased to be part of the continuing operations, the changes in cash and cash equivalents from its diff erent activities were recognised separately.
Th e transaction agreed in January on the sale of Postbank shares to Deutsche Bank was completed on 25 February 2009 as scheduled. As a result of the ensuing deconsolidation, the cash fl ow statement of the discontinued operations comprises only January and February of the reporting period. Since the reporting period and the prior period are therefore not comparable, we do not present further details on the cash fl ows relating to discontinued operations.
Cash fl ows from operating activities are calculated by adjusting net profi t before taxes for net fi nancial income / net fi nance costs and non-cash factors, as well as taxes paid, changes in provisions and in other non-current assets and liabilities (net cash from operating activities before changes in working capital). Adjustments for changes in working capital (excluding fi nancial liabilities) result in net cash from or used in operating activities.
Net cash from operating activities due to continuing operations before changes in working capital amounts to € 763 million, thus being signifi cantly below the previous year's level (previous year: € 2,714 million). Th is is mainly due to provisions utilised primarily for restructuring the US express business. Th e working capital reduction resulted in an overall cash infl ow of € 481 million. Net cash used for liabilities and other items of € 344 million compares with net cash from changes in receivables and other current assets of € 778 million. On balance, at € 1,244 million, net cash from operating activities is by € 2,118 million below the previous year's level.
| € m | 2008 adjusted1) |
2009 |
|---|---|---|
| Expense from remeasurement of assets | 271 | 236 |
| Income from remeasurement of liabilities | –137 | –107 |
| Staff costs relating to stock option plan | 4 | 0 |
| Miscellaneous | 64 | –1 |
| Other non-cash income and expense | 202 | 128 |
1) Prior-period amount adjusted, see Note 5.
Cash fl ows from investing activities mainly result from cash received from disposals of non-current assets and cash paid for investments in non-current assets. Interest and dividends received from investing activities as well as cash fl ows from changes in current fi nancial assets are included as well. At € 1,469 million, net cash used in investing activities exceeds the previous year's amount by € 555 million. Th is increase is the result of last year's sale of the real estate package to Lone Star investment company leading to cash infl ows of € 942 million as well as of the refund of € 495 million in interest from the repayment of EU state aid. Th ere was a signifi cant decline in cash paid to acquire non-current assets. Cash payments for property, plant and equipment and intangible assets relate among other items to the modernisation of mail centres and IT as well as to the maintenance of the global aircraft network. Large amounts were used last year particularly for the construction of the European and Asian air hubs. On balance, the change in current fi nancial assets resulted in cash outfl ows of € 659 million. Cash was received from the sale of Deutsche Bank shares which was invested on the capital market. Cash paid for investments in subsidiaries and other business units dropped signifi cantly from € 1,417 million in the previous year to € 53 million. Cash was required in the previous year mainly for the capital increase of Deutsche Postbank AG.
Th e following assets and liabilities were acquired on the acquisition of companies (see also Note 2):
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Non-current assets | 23 | 5 |
| Current assets (excluding cash and cash equivalents) | 174 | 9 |
| Provisions | –1 | 0 |
| Other liabilities | –305 | –16 |
Free cash fl ow is a combination of net cash provided by operating activities and net cash used in investing activities. Free cash fl ow is considered to be an indicator of how much cash is available to the company for dividend payments or the repayment of debt. Since net cash from operating activities fell and net cash used in investing activities rose, free cash fl ow deteriorated dropping from € 2,448 million in the previous year to € –225 million in the reporting year.
Cash infl ows from fi nancing activities amounted to € 1,681 million in the reporting year. Contributing to this development were the Deutsche Bank AG subscribing to the mandatory exchangeable bond as part of the Postbank sale and the payment of the collateral for the put option for the remaining Postbank shares, refl ected in the non-current fi nancial liabilities in the amount of € 3,981 million. At € 587 million, the repayment of non-current fi nancial liabilities resulted in a slight increase in cash outfl ows as against 2008, whereas cash used for changes in current fi nancial liabilities in the amount of € 548 million clearly exceeded the previous year's amount by € 211 million. Th e dividend payment to shareholders (€ 725 million) accounts for the largest share of cash paid for fi nancing activities. Th e decline in current fi nancial liabilities accounts for lower interest payments, which dropped by € 143 million to € 291 million. € 2,386 million of cash was used in fi nancing activities in the previous year.
Th e cash infl ows and outfl ows described above produced cash and cash equivalents due to continuing operations of € 3,064 million, see Note 37. Th is is a signifi cant year-on-year increase by € 1,714 million. Currency translation diff erences of € 20 million contributed to this increase.
Th e Group faces fi nancial risks from its operating activities that may arise from changes in exchange risks, commodity prices and interest rates. Th e Group uses both primary and derivative fi nancial instruments to manage these fi nancial risks. Th e use of derivatives is limited to the management of primary fi nancial risks. Any use for speculative purposes is therefore not intended under the Group's internal guidelines.
Th e fair values of the derivatives used may be subject to significant fl uctuations depending on changes in exchange rates, interest rates or commodity prices. Th ese fl uctuations in fair value should not be assessed separately from the hedged underlying transactions, since derivatives and hedged transactions form a unity with regard to their off setting value development.
Th e range of actions, responsibilities and controls necessary for using derivatives has been clearly established in the Group's internal guidelines. Suitable risk management soft ware is used to record, assess and process fi nancing transactions as well as to regularly assess the eff ectiveness of the hedging relationships. To limit counterparty risk from fi nancial transactions, the Group only enters into transactions with prime-rated banks. Each counterparty is assigned a counterparty limit, the use of which is regularly monitored. Th e Group's Board of Management receives regular internal information on the existing fi nancial risks and the hedging instruments deployed to limit them. Th e fi nancial instruments used are accounted for in accordance with IAS 39.
Liquidity in the Group is managed in a largely centralised system to ensure a continuous supply of cash for the Group companies. Central liquidity reserves consist of central short-term money market investments and money market funds in a total volume of € 3.5 billion (previous year: € 0 billion). Th ere are also bilateral credit lines committed by banks in the amount of € 2.7 billion (previous year: € 3.1 billion), of which a mere € 200 million had been used by the balance sheet date. In addition, the Group issued an unused commercial paper programme in the amount of € 1 billion. Th us, the Group continues to have suffi cient funds to fi nance necessary investments.
Th e maturity structure of primary fi nancial liabilities to be applied within the scope of IFRS 7 based on cash fl ows is as follows:
| € m | Less | More | ||||
|---|---|---|---|---|---|---|
| than 1 year | 1 to 2 years | 2 to 3 years | 3 to 4 years | 4 to 5 years | than 5 years | |
| As at 31 December 2009 | ||||||
| Non-current fi nancial liabilities | 87 | 522 | 5,223 | 118 | 1,010 | 481 |
| Other liabilities | 0 | 46 | 44 | 42 | 41 | 283 |
| Non-current liabilities | 87 | 568 | 5,267 | 160 | 1,051 | 764 |
| Current fi nancial liabilities | 683 | 0 | 0 | 0 | 0 | 0 |
| Trade payables | 4,861 | 0 | 0 | 0 | 0 | 0 |
| Other liabilities | 236 | 0 | 0 | 0 | 0 | 0 |
| Current liabilities | 5,780 | 0 | 0 | 0 | 0 | 0 |
| As at 31 December 20081) | ||||||
| Non-current fi nancial liabilities | 126 | 543 | 457 | 906 | 145 | 2,020 |
| Other liabilities | 0 | 64 | 11 | 15 | 15 | 109 |
| Non-current liabilities | 126 | 607 | 468 | 921 | 160 | 2,129 |
| Current fi nancial liabilities | 873 | 0 | 0 | 0 | 0 | 0 |
| Trade payables | 5,016 | 0 | 0 | 0 | 0 | 0 |
| Other liabilities | 355 | 0 | 0 | 0 | 0 | 0 |
| Current liabilities | 6,244 | 0 | 0 | 0 | 0 | 0 |
1) Prior-period amount adjusted, see Note 5.
Th e non-current liabilities "2 to 3 years" include the mandatory exchangeable bond (zero bond) of € 2,568 million plus interest in fi nancial year 2009. It was issued in February 2009 and fully subscribed to by Deutsche Bank, see Note 3. Th e settlement of the liability does not result in cash fl ows. In February 2012, Deutsche Post AG is required to transfer 60 million shares of Deutsche Postbank AG to Deutsche Bank AG. Th is position also includes the cash collateral of € 1,161 million plus interest which was issued by Deutsche Bank AG in February 2009 as an advance paid on the written put option on another 26,417,432 Postbank shares. Th e exercise period for the option commences on the fi rst working day aft er the exercise of the mandatory exchangeable bond and ends in February 2013. Along with the put option, there is a call option requiring Deutsche Post AG to transfer 26,417,432 shares of Deutsche Postbank AG to Deutsche Bank AG at a fi xed price. Th e exercise period is the same as for the put option. One of the options will most likely be exercised. Th e transaction is performed as soon as 26,417,432 shares of Deutsche Postbank AG are transferred.
In addition, liabilities to Deutsche Bank AG are recognised in the amount of € 120 million relating to transactions settled to hedge Deutsche Bank shares, see Note 2. Collateral was provided in the same amount.
Th e maturity structure of the derivative fi nancial instruments based on cash fl ows is as follows:
| € m | Less | More | ||||
|---|---|---|---|---|---|---|
| than 1 year | 1 to 2 years | 2 to 3 years | 3 to 4 years | 4 to 5 years | than 5 years | |
| As at 31 December 2009 | ||||||
| Derivative receivables – gross settlement | ||||||
| Cash outfl ows | –2,421 | – 44 | – 54 | –20 | –149 | 0 |
| Cash infl ows | 2,474 | 63 | 66 | 20 | 180 | 0 |
| Net settlement | ||||||
| Cash infl ows | 6 | 0 | 0 | 0 | 0 | 0 |
| Derivative liabilities – gross settlement | ||||||
| Cash outfl ows | –1,733 | –129 | –72 | –12 | – 8 | –172 |
| Cash infl ows | 1,670 | 104 | 58 | 9 | 6 | 158 |
| Net settlement | ||||||
| Cash outfl ows | –10 | 0 | 0 | 0 | 0 | 0 |
| As at 31 December 2008 | ||||||
| Derivative receivables – gross settlement | ||||||
| Cash outfl ows | – 4,332 | –111 | – 43 | – 50 | –21 | –153 |
| Cash infl ows | 4,763 | 128 | 54 | 56 | 21 | 180 |
| Net settlement | ||||||
| Cash infl ows | 40 | 0 | 0 | 0 | 0 | 0 |
| Derivative liabilities – gross settlement | ||||||
| Cash outfl ows | – 5,461 | –72 | – 69 | – 47 | –12 | –193 |
| Cash infl ows | 4,914 | 52 | 51 | 35 | 9 | 123 |
| Net settlement | ||||||
| Cash outfl ows | –13 | 0 | 0 | 0 | 0 | 0 |
Derivative fi nancial instruments entail both rights and obligations. Th e contractual arrangement defi nes whether these rights and obligations can be off set against each other, thus resulting in a net settlement or whether both parties to the contract will have to fully perform under their obligations (gross settlement).
Th e options on shares of Deutsche Postbank AG signed with Deutsche Bank AG are not included in the overview, since they do not result in cash fl ows.
Th e Group's global activities expose it to currency risks from planned and completed transactions in foreign currencies. All currency risks are recognised and managed centrally in Corporate Treasury. For this purpose, all Group companies report their foreign-currency risks to Corporate Treasury, which calculates a net position per currency on the basis of these reports, hedging it externally, where applicable. Currency forwards, swaps and currency options are used to manage the risk. Th e notional amount of outstanding currency forwards and swaps was € 4,502 million as at the balance sheet date (previous year: € 10,531 million). Th e corresponding fair value was € –44 million (previous year: € –101 million). Th ese transactions were used to hedge planned and recorded operational risks and to hedge internal and external fi nancing and investments.
In addition, currency options with a notional amount of € 275 million (previous year: € 460 million) and a fair value of € 1 million (previous year: € 11 million) were used to hedge operational currency risks. Th e Group also held cross-currency swaps with a notional amount of € 240 million (previous year: € 269 million) and a fair value of € –11 million (previous year € –28 million) to hedge long-term foreign currency fi nancing.
Currency risks resulting from translating assets and liabilities of foreign operations into the Group's currency (translation risk) were not hedged as at 31 December 2009.
Th e fair value of currency forwards was measured on the basis of discounted future cash fl ows, taking forward rates on the foreign exchange market into account. Th e currency options were measured using the Black & Scholes option pricing model. Of the unrealised gains or losses from currency derivatives that were recognised in equity as at 31 December 2009 in accordance with IAS 39, € –15 million (previous year: € 77 million) is expected to be recognised in income in the course of 2010.
IFRS 7 requires a company to disclose a sensitivity analysis, showing how profi t or loss and equity are aff ected by hypothetical changes in exchange rates at the reporting date. In this process, the hypothetical changes in exchange rates are analysed in relation to the portfolio of fi nancial instruments not denominated in their functional currency and being of a monetary nature. It is assumed that the portfolio as at the reporting date is representative for the whole year.
Eff ects of hypothetical changes in exchange rates on the translation risk do not fall within the scope of IFRS 7. Th e following assumptions are taken as a basis for the sensitivity analysis:
Primary monetary fi nancial instruments used by Group companies were either denominated directly in the functional currency or the currency risk was transferred to Deutsche Post AG via its inhouse bank at the exchange rates Deutsche Post AG has guaranteed. Exchange-rate-induced changes have therefore no eff ect on profi t or loss and equity of the Group companies. Some isolated Group companies are not legally entitled to participate in in-house banking. Th ese companies hedge their currency risks from primary monetary fi nancial instruments linked with Deutsche Post AG by using derivatives. Th e internal derivatives are consolidated in the Group. Th e risk remaining at Group level is taken into account when computing the net position.
Hypothetical changes in exchange rates aff ect the fair values of the external derivatives used by Deutsche Post AG with changes in fair value reported in profi t or loss; they also aff ect the foreign currency results from the measurement at closing date of the in-house bank balances denominated in foreign currency, balances from external bank accounts as well as internal and external loans extended by Deutsche Post AG. In addition, hypothetical changes in exchange rates aff ect equity and the fair values of those derivatives used to hedge off -balance sheet obligations and highly probable future currency transactions – designated as cash fl ow hedges.
A 10 % revaluation of the euro against all currencies as at 31 December 2009 would have reduced profi t by € –7 million (previous year: € –1 million). Th ese hypothetical eff ects on profi t or loss are mainly the result of the euro's sensitivity to the Singapore dollar (€ –10 million; previous year: € –15 million), the Pakistan Rupee (€ –3 million; previous year: € –2 million), the Bahrein Dinar (€ 5 million; previous year: € 3 million) and the Chinese Yuan (€ 5 million; previous year: € 5 million). A devaluation of the euro would have approximately the opposite sensitivities.
A revaluation of the euro by 10 % would have increased the hedging reserve recognised in equity by € 17 million (previous year: € 17 million). Th e hypothetical change in equity is mainly the result of the euro's sensitivity to the US Dollar (€ –33 million; previous year: € –48 million), the British Pound (€ 12 million; previous year: € 18 million) and the Japanese Yen (€ 10 million; previous year: € 13 million). A currency devaluation would adversely aff ect equity in the amount of € –16 million (previous year: € –11 million).
As in the previous year, most of the risks arising from commodity price fl uctuations, in particular fl uctuating prices for kerosene, diesel and marine diesel fuels, were passed on to customers via operating measures. In addition, a small number of commodity swaps for diesel and marine diesel fuels was used to control residual risks. Th e notional amount of commodity swaps was € 16 million (previous year: no swaps outstanding) with a fair value of € 1 million (previous year: € 0 million).
IFRS 7 requires a company to disclose a sensitivity analysis, presenting the eff ects of hypothetical commodity price changes on profi t or loss and equity. Changes in commodity prices would aff ect the fair value of the derivatives used to hedge commodity purchases which are highly probable in the future (cash fl ow hedges) and the hedging reserve in equity. Since all commodity-price derivatives are accounted for as cash fl ow hedges, changes to the commodity prices would not aff ect profi t or loss.
A 10 % increase by the balance sheet date in the commodity prices underlying the derivatives would have increased fair values and equity by € 1 million. Th e corresponding decline in commodity prices would have had the opposite eff ect.
Note 46 contains an overview of the outstanding fi nancial liabilities. Th e use of interest rate derivatives allows the Group to establish an adequate proportion between variable-interest and fi xed-income fi nancial instruments.
Th e fair value of interest rate hedging instruments was calculated on the basis of the discounted expected future cash fl ows, using the Group's treasury risk management system.
As at 31 December 2009 the Group had entered into interest rate swaps at a notional volume of € 1,182 million (previous year: € 1,197 million). Th e fair value of this interest rate swap position was € 51 million (previous year: € –8 million). As in the previous year, there were no interest options at the reporting date.
Th e Group did not materially change the share of instruments with short-term interest lock-ins in the course of 2009. Th e proportion between notional volumes of instruments with short-term and with long-term interest rate lock-ins remained largely well balanced. Th e eff ect of interest rate changes on the Group's fi nancial position continues to be immaterial. Not included in this consideration are fi xed-income fi nancial liabilities in connection with the Postbank sale, since these liabilities are paid with Postbank shares which does not create any interest rate risk.
A sensitivity analysis is performed to present the interest-rate risks in accordance with IFRS 7. Th is method is used to determine the eff ects hypothetical changes in market interest rates have on interest income, interest expense and on equity at the reporting date. Th e following assumptions are taken as a basis for the sensitivity analysis:
Primary variable interest fi nancial instruments are subject to interest rate risks and will therefore have to be included in the sensitivity analysis. Primary variable-interest fi nancial instruments which were transformed into fi xed-interest fi nancial instruments in a cash fl ow hedge are not included. Changes in market interest rates in derivative fi nancial instruments used as a cash fl ow hedge aff ect equity by a change in fair values and must therefore be included in the sensitivity analysis. Fixed-interest fi nancial instruments measured at amortised cost are not subject to interest rate risk.
Designated fair value hedges of interest rate exposures are not included in the sensitivity analysis, because the interest-related changes in fair value of the hedged item and the hedging transaction almost fully off set each other in profi t or loss for the period. Only the variable portion of the hedging instrument aff ects net fi nance costs / net fi nancial income and must be included in the sensitivity analysis.
Interest-rate derivatives outside the scope of a hedging relationship which would aff ect net fi nance costs / net fi nancial income due to changes in market rates were not in the portfolio as at 31 December 2009.
If the market interest rate level as at 31 December 2009 had been 100 basis points higher, profi t would have increased by € 6 million (previous year: € –12 million). Th e change of sign from the previous year refl ects the cash infl ows from the Postbank sale. A market rate level 100 basis points lower would have had the opposite eff ect. A change in the market interest rate level by 100 basis points would aff ect the fair values of the interest rate derivatives recognised in equity. A rise in interest rates would have increased equity by € 24 million (previous year: € 38 million); a reduction would have reduced equity by € 30 million (previous year: € 38 million).
As part of the "Amendment Agreement Regarding the Acquisition of Shares in Deutsche Postbank AG", Deutsche Post AG acquired derivative fi nancial instruments relating to the transfer of Postbank shares. Th ese are conditional put and call options on 26,417,432 Deutsche Postbank shares and an unconditional forward sale on 60,000,000 Deutsche Postbank AG shares. Contractual partner in both cases is Deutsche Bank AG.
Th e put and call options were recognised at fair value through profi t or loss at the conclusion of the contract. Th is resulted in income of € 944 million recognised in net fi nance cost / net fi nancial income. Th e put option was recognised at a fair value of € 961 million, the call option was to be recognised under liabilities at € –17 million. Changes in the options' fair value are included in net fi nance costs / net fi nancial income until the time they are exercised or forfeited. Had the fair value of the Postbank share been 10 % lower by the balance sheet date, the fair value of the put and call options would have increased on the asset side by € 61 million, net. An increase in the Postbank share would have had the opposite eff ect and would have resulted in a charge to net fi nance costs / net fi nancial income.
Th e forward transaction embedded in the mandatory exchangeable bond must be separated in accordance with IAS 39 and be treated as an uncompleted transaction as it is defi nitely excluded from the scope of IAS 39. Since no consideration was paid upon the conclusion of the transaction, the cost of the forward transaction is zero.
Eff ective 1 January 2010, the IASB clarifi ed the scope exemption in IAS 39.2 (g), with regard to the maturities for the settlement of required transactions related to the sale of shares. Forward transactions no longer fall under the exemption provided by IAS 39.2 (g) if it is clear upon the conclusion of a contract that the settlement of such transactions exceeds the time required. In the present case, the forward's term exceeds usual maturities.
Th us, eff ective 1 January 2010, the forward transaction must now also be recognised in profi t or loss at its fair value of € 1,453 million along with the options (third tranche). Changes in the fair value on the following reporting dates aff ect net fi nance costs / net fi nancial income. Th is may increase the volatilities of Deutsche Post AG's and the Group's net fi nance costs / net fi nancial income. Future changes in fair value of derivative fi nancial instruments refl ect the performance of the Postbank share. A positive trend of the Postbank share will adversely impact net fi nance costs / net fi nancial income.
A fair value measurement of the Postbank shares still owned aft er deconsolidation would largely off set the eff ect on profi t or loss from the derivative fi nancial instruments. Th is is not permitted under IFRS. Th e remaining Postbank shares are to be recognised and measured as an equity-accounted investment until the mandatory exchangeable bond is exercised. Most of the eff ects from the disposal of the equity-accounted carrying amount and the measurement of the derivative fi nancial instruments will have been off set by 25 February 2012.
Upon conclusion of the contract, the income from the transfer of the Postbank shares for tranche 2 and tranche 3 was fi xed already. Th e gains and losses from the recognition and measurement of the derivative fi nancial instruments refl ect the fair value trend of the Postbank shares. Th e gain or loss on the disposal of the Postbank investment also depends on the fair value of the Postbank share, since on the investment's disposal the respective derivative fi nancial instruments are derecognised with eff ect on profi t or loss. If the fair value approximates the forward sales price and / or the fi xed price of the options, the deconsolidation eff ect increases accordingly, since the values of the derivative fi nancial instruments decrease in largely the same amount. If the fair value of the Postbank share decreases, the fair value of the derivatives increase, which may result in a loss on disposal. Th e eff ects from the measurement of derivative fi nancial instruments would then have anticipated the income on disposal.
Th e remaining 26,417,432 Postbank shares (third tranche) are to be measured at fair value upon the exercise of the mandatory exchangeable bond. Th ey are recognised in the category "Financial assets recognised at fair value through profi t or loss". From that point of time, fair value changes in the shares and options are off set in net fi nance costs / net fi nancial income.
Th e credit risk incurred by the Group is the risk that counterparties fail to meet their obligations arising from operating activities and from fi nancial transactions. To minimise credit risk from fi nancial transactions, the Group only enters into transactions with
prime-rated counterparties. Given the Group's heterogeneous customer structure, there is no risk concentration. Each counterparty is assigned a counterparty limit, the use of which is regularly monitored. An impairment test is performed at the balance sheet dates to see whether, due to the individual counterparties' credit rating, an impairment loss is to be recognised for the positive fair values. Th is was not the case for any of the counterparties as at 31 December 2009.
Default risks are continuously monitored in the operating business. Th e aggregate carrying amounts of fi nancial assets represent the maximum default risk. Trade receivables amounting to € 4,881 million (previous year: € 5,591 million) are due within one year. Th e following table gives an overview of past-due receivables:
| € m | Past due at reporting date and not impaired | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Carrying amount before impairment loss |
Neither impaired nor due as at the reporting date |
Less than 30 days |
31 to 60 days |
61 to 90 days |
91 to 120 days |
121 to 150 days |
151 to 180 days |
> 180 days | |
| As at 31 December 2009 | |||||||||
| Trade receivables | 5,135 | 3,304 | 727 | 534 | 166 | 86 | 29 | 20 | 15 |
| As at 31 December 2008 | |||||||||
| Trade receivables | 5,788 | 3,594 | 1,196 | 401 | 125 | 63 | 31 | 17 | 32 |
Trade receivables developed as follows:
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Gross receivables | ||
| As at 1 January | 6,595 | 5,788 |
| Changes | – 807 | – 653 |
| As at 31 December | 5,788 | 5,135 |
| Valuation allowances | ||
| As at 1 January | –218 | –197 |
| Changes | 21 | – 57 |
| As at 31 December | –197 | –254 |
| Carrying amount as at 31 December | 5,591 | 4,881 |
All other fi nancial instruments are neither past due nor impaired. Th e heterogeneous structure of the contractual partners prevents risk concentration. Th e miscellaneous other assets are expected to be collectible at any time.
€ 289 million (previous year: €323 million) of collateral is recognised in non-current fi nancial assets as at the balance sheet date, which, among other things, relates to the sale of Postbank shares. Deutsche Post AG is required to deposit payments from hedging transactions already settled as part of the sale of Deutsche Bank shares as collateral with Deutsche Bank AG. Th e collateral deposited is released upon the exercise of the mandatory exchangeable bond in February 2012. Other collateral relates to the settlement of residential building loans and existing tenancies.
€ 40 million are recognised in current fi nancial assets (previous year: €10 million). Th e major part concerns collateral as part of QTE leases.
In addition, Deutsche Post AG pledged 86,417,432 shares of Deutsche Postbank AG to Deutsche Bank AG. Th e collateral for 60 million shares is released upon the exercise of the mandatory exchangeable bond; for the remaining 26,417,432 shares it is released upon the exercise of one of the options (see market price risk).
Th e following table gives an overview of the derivatives used in the Group and their fair values. Derivatives with amortising notional volumes are reported in the full amount at maturity.
| € m | Fair values 2009 according to maturity | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 | 2009 | Assets | Liabilities | |||||||||||||||
| Less | Less | |||||||||||||||||
| Fair | than | Up | Up | Up | Up | than | Up | Up | Up | Up | ||||||||
| Notional amount |
Fair value | Notional amount |
Fair value of assets |
value of liabilities |
Total fair value |
1 year |
to 2 years |
to 3 years |
to 4 years |
to 5 years |
> 5 years |
1 year |
to 2 years |
to 3 years |
to 4 years |
to 5 years |
> 5 years |
|
| Interest rate products | ||||||||||||||||||
| Interest rate swaps | 1,197 | – 8 | 1,182 | 75 | –24 | 51 | 0 | 0 | 49 | 0 | 26 | 0 | 0 | 0 | 0 | 0 | 0 | –24 |
| of which cash fl ow hedges | 354 | – 42 | 340 | 18 | –24 | – 6 | 0 | 0 | 0 | 0 | 18 | 0 | 0 | 0 | 0 | 0 | 0 | –24 |
| of which fair value hedges | 843 | 34 | 842 | 57 | 0 | 57 | 0 | 0 | 49 | 0 | 8 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which held for trading | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 1,197 | – 8 | 1,182 | 75 | –24 | 51 | 0 | 0 | 49 | 0 | 26 | 0 | 0 | 0 | 0 | 0 | 0 | –24 | |
| Currency derivatives | ||||||||||||||||||
| Currency forwards | 5,927 | –284 | 2,423 | 9 | – 49 | – 40 | 9 | 0 | 0 | 0 | 0 | 0 | –35 | – 9 | – 4 | –1 | 0 | 0 |
| of which cash fl ow hedges | 961 | 27 | 737 | 3 | –31 | –28 | 3 | 0 | 0 | 0 | 0 | 0 | –17 | – 9 | – 4 | –1 | 0 | 0 |
| of which net investment | ||||||||||||||||||
| hedges | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which held for trading | 4,966 | –311 | 1,686 | 6 | –18 | –12 | 6 | 0 | 0 | 0 | 0 | 0 | –18 | 0 | 0 | 0 | 0 | 0 |
| Currency options | 460 | 11 | 275 | 4 | –3 | 1 | 4 | 0 | 0 | 0 | 0 | 0 | –3 | 0 | 0 | 0 | 0 | 0 |
| of which cash fl ow hedges | 460 | 11 | 275 | 4 | –3 | 1 | 4 | 0 | 0 | 0 | 0 | 0 | –3 | 0 | 0 | 0 | 0 | 0 |
| Currency swaps | 4,604 | 183 | 2,079 | 17 | –21 | – 4 | 17 | 0 | 0 | 0 | 0 | 0 | –19 | –2 | 0 | 0 | 0 | 0 |
| of which cash fl ow hedges | 261 | 23 | 169 | 0 | – 4 | – 4 | 0 | 0 | 0 | 0 | 0 | 0 | –2 | –2 | 0 | 0 | 0 | 0 |
| of which held for trading | 4,343 | 160 | 1,910 | 17 | –17 | 0 | 17 | 0 | 0 | 0 | 0 | 0 | –17 | 0 | 0 | 0 | 0 | 0 |
| Cross-currency swaps | 269 | –28 | 240 | 10 | –21 | –11 | 0 | 0 | 0 | 0 | 10 | 0 | 0 | –7 | –14 | 0 | 0 | 0 |
| of which cash fl ow hedges | 193 | – 9 | 183 | 10 | –7 | 3 | 0 | 0 | 0 | 0 | 10 | 0 | 0 | –7 | 0 | 0 | 0 | 0 |
| of which fair value hedges | 76 | –19 | 57 | 0 | –14 | –14 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | –14 | 0 | 0 | 0 |
| of which held for trading | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 11,260 | –118 | 5,017 | 40 | – 94 | – 54 | 30 | 0 | 0 | 0 | 10 | 0 | – 57 | –18 | –18 | –1 | 0 | 0 | |
| Transactions based on commodity prices |
||||||||||||||||||
| Commodity swaps | 0 | 0 | 16 | 1 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which cash fl ow hedges | 0 | 0 | 16 | 1 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Transactions based on share price |
||||||||||||||||||
| Stock options | 0 | 0 | 2,596 | 669 | –22 | 647 | 0 | 0 | 669 | 0 | 0 | 0 | 0 | 0 | –22 | 0 | 0 | 0 |
| of which held for trading | 0 | 0 | 2,596 | 669 | –22 | 647 | 0 | 0 | 669 | 0 | 0 | 0 | 0 | 0 | –22 | 0 | 0 | 0 |
Some of the hedging transactions entered into in 2008 for internal fi nancing and investments were extended in 2009. As only the net positions were extended, the notional volume of the corresponding currency-related hedging transactions signifi cantly dropped against 31 December 2008.
Th e put and call options on the shares of Deutsche Postbank AG are recognised in the stock option account. Due to IAS 39.2 (g) the forward was not to be recognised.
Fair value hedges
Interest rate swaps were used to hedge the fair value risk of fi xed-interest euro-denominated liabilities. Th e fair values of these interest rate swaps amount to € 57 million (previous year: € 34 million). Th e signifi cant increase in the fair values compared with 2008 is explained by the change in market rate levels. As at 31 December 2009, there was also a € 24 million (previous year: € 30 million) adjustment to the carrying amount of the underlying hedged item arising from an interest rate swap unwound in the past. Th e adjustment to the carrying amount is amortised over the remaining term of the liability using the eff ective interest method, and reduces future interest expense.
In addition, cross-currency swaps were used to hedge liabilities in foreign currency against negative changes in the market, with the liability being transformed into a variable-interest eurodenominated liability. Th is hedged the fair value risk of the interest and currency component. Th e fair value of this interest rate swap position was € –14 million as at 31 December 2009 (previous year: € –19 million).
Th e following table gives an overview of the gains and losses arising from the hedged items and the respective hedging transactions:
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Gains (–) / losses (+) on hedged items | 56 | 16 |
| Gains (–) / losses (+) on hedging transactions | – 56 | –17 |
| Balance (ineffective portion) | 0 | –1 |
Th e Group uses currency forwards and currency swaps to hedge the future cash fl ow risks from foreign currency revenue and expenses. Th e fair values of currency forwards and currency swaps amounted to € –7 million (previous year: € 74 million). In addition, there were currency options at a fair value of € 1 million (previous year: € 13 million) at the reporting date for operating receivables and liabilities. Th e hedged items will be recognised in the income statement in 2010.
Currency forwards with a fair value of € –21 million (previous year: € –26 million) as at the reporting date were entered into to hedge the currency risk of future lease payments and annuities denominated in foreign currencies. Th e payments for the hedged items are made in instalments, with the fi nal payment due in 2013.
Cash fl ow risks are arising for the Group from contracted aircraft purchases in connection with future payments in US dollars. Th ese risks were hedged using forward transactions. Th e fair value of these cash fl ow hedges amounted to € –3 million as at 31 December 2009 (previous year: € 3 million). Th e aircraft will be added in 2012. Gains or losses on hedges are off set against cost and recognised in profi t or loss upon the amortisation of the asset.
Risks arising from fi xed-interest foreign currency investments were hedged using synthetic cross-currency swaps, with the investments being transformed into fi xed-interest euro investments. Th ese synthetic cross-currency swaps hedge the currency risk, and their fair values at the reporting date amounted to € 28 million (previous year: € 15 million). Th e investments relate to internal Group loans which mature in 2014.
Th e Group is exposed to cash fl ow risks arising from a variable interest rate liability. Th ese risks were hedged using an interest rate swap which off sets the interest rate risk in the hedged item. Th e respective cash fl ow hedge had a fair value of € –24 million as at 31 December 2009 (previous year: € –53 million). Th e hedged liability becomes due in 2037. In addition, a fi xed-interest currency liability was transformed into a fi xed-interest euro-denominated liability using a cross-currency swap. Th e fair value of the derivative was € –7 million (previous year: € –12 million).
Some of the risks from the purchase of diesel and marine diesel fuels, which cannot be passed on to customers, were hedged using commodity swaps. Th e fair value of these cash fl ow hedges amounted to € 1 million as at year-end (previous year: € 0 million). Th ere were minor ineffi ciencies.
Th e Group classifi es fi nancial instruments equivalent to the respective balance sheet accounts. Th e following table reconciles the classes to the categories given in IAS 39 and the respective fair values:
€ m Carrying amount Carrying amount measured in accordance with IAS 39 Financial assets and liabilities recognised at fair value through profit or loss Available-for-sale financial assets Trading Fair value option assets Non-current fi nancial assets 1,448 at cost 576 0 0 83 at fair value 872 669 51 67 Other non-current assets 348 Outside ifrs 7 348 0 0 0 Receivables and other current assets 7,157 at cost 6,012 0 0 0 Outside ifrs 7 1,145 0 0 0 Current fi nancial assets 1,894 at cost 258 0 0 13 at fair value 1,636 23 0 1,605 Outside ifrs 7 0 0 0 0 Cash and cash equivalents 3,064 0 0 0 Total assets 13,911 692 51 1,768 equity and liabilities Non-current fi nancial liabilities1) –6,699 at cost –6,615 0 0 0 at fair value –84 –22 0 0 Outside ifrs 7 0 0 0 0 Other non-current liabilities –372 at cost –281 0 0 0 Outside ifrs 7 –91 0 0 0 Current fi nancial liabilities –740 at cost –683 0 0 0 at fair value –57 –35 0 0 Trade payables –4,861 0 0 0 Other current liabilities –3,674 at cost –236 0 0 0 Outside ifrs 7 –3,438 0 0 0 Total equity and liabilities –16,346 – 57 0 0
1) Some of the bonds included in fi nancial liabilities were designated as a hedged item in a fair value hedge and are thus subject to a basis adjustment.
Accounting is therefore neither fully at fair value nor at amortised cost.
| Other financial instruments outside the scope of IAS 39 |
Fair value of financial instruments under IFRS 7 |
|||
|---|---|---|---|---|
| Loans and receivables / Other financial liabilities | Held-to-maturity assets | Derivatives designated as hedging instruments |
Finance lease receivables / Finance lease liabilities |
|
| 414 | 27 | 0 | 52 | 576 |
| 0 | 0 | 85 | 0 | 872 |
| 0 | 0 | 0 | 0 | 0 |
| 6,012 | 0 | 0 | 0 | 6,012 |
| 0 | 0 | 0 | 0 | 0 |
| 196 | 1 | 0 | 48 | 258 |
| 0 | 0 | 8 | 0 | 1,636 |
| 0 | 0 | 0 | 0 | 0 |
| 3,064 | 0 | 0 | 0 | 3,064 |
| 9,686 | 28 | 93 | 100 | – |
| –6,374 | 0 | 0 | –241 | –6,841 |
| 0 | 0 | – 62 | 0 | –84 |
| 0 | 0 | 0 | 0 | 0 |
| –281 0 |
0 0 |
0 0 |
0 0 |
–281 0 |
| –655 | 0 | 0 | –28 | –683 |
| 0 | 0 | –22 | 0 | –57 |
| –4,861 | 0 | 0 | 0 | –4,861 |
| –236 | 0 | 0 | 0 | –236 |
| 0 | 0 | 0 | 0 | 0 |
| –12,407 | 0 | – 84 | –269 | – |
| € m |
|---|
| Carrying amount | Carrying amount measured in accordance with IAS 39 | ||||
|---|---|---|---|---|---|
| Financial assets and liabilities recognised at fair value through profit or loss |
Available-for-sale financial assets |
||||
| Trading | Fair value option | ||||
| assets | |||||
| Non-current fi nancial assets | 718 | ||||
| at cost | 629 | 0 | 0 | 129 | |
| at fair value | 89 | 0 | 38 | 29 | |
| Other non-current assets | 370 | ||||
| Outside ifrs 7 | 370 | 0 | 0 | 0 | |
| Receivables and other current assets | 8,081 | ||||
| at cost | 5,767 | 0 | 0 | 0 | |
| Outside ifrs 7 | 2,314 | 0 | 0 | 0 | |
| Current fi nancial assets | 684 | ||||
| at cost | 199 | 0 | 0 | 13 | |
| at fair value | 475 | 353 | 0 | 0 | |
| Outside ifrs 7 | 10 | 0 | 0 | 0 | |
| Cash and cash equivalents | 1,350 | 0 | 0 | 0 | |
| Total assets | 11,203 | 353 | 38 | 171 | |
| equity and liabilities | |||||
| Non-current fi nancial liabilities1) | –3,452 | ||||
| at cost | –3,246 | 0 | 0 | 0 | |
| at fair value | –103 | 0 | 0 | 0 | |
| Outside ifrs 7 | –103 | 0 | 0 | 0 | |
| Other non-current liabilities | –233 | ||||
| at cost | –116 | 0 | 0 | 0 | |
| Outside ifrs 7 | –117 | 0 | 0 | 0 | |
| Current fi nancial liabilities | –1,422 | ||||
| at cost | – 873 | 0 | 0 | 0 | |
| at fair value | – 549 | – 504 | 0 | 0 | |
| Trade payables | – 5,016 | 0 | 0 | 0 | |
| Other current liabilities | – 4,066 | ||||
| at cost | –355 | 0 | 0 | 0 | |
| Outside ifrs 7 | –3,711 | 0 | 0 | 0 | |
| Total equity and liabilities | –14,189 | – 504 | 0 | 0 |
1) Some of the bonds included in fi nancial liabilities were designated as a hedged item in a fair value hedge and are thus subject to a basis adjustment.
Accounting is therefore neither fully at fair value nor at amortised cost.
2) Prior-period amount adjusted: in 2008, €61 million were recognised under non-current fi nancial assets. The asset related to investments in associates.
Recognised in a separate balance sheet account in these fi nancial statements.
| Fair value of financial instruments under IFRS 7 |
Other financial instruments outside the scope of IAS 39 |
|||
|---|---|---|---|---|
| Finance lease receivables / Finance lease liabilities |
Derivatives designated as hedging instruments |
Held-to-maturity assets | Loans and receivables / Other financial liabilities | |
| 600 | 0 | 0 | 10 | 461 |
| 118 | 0 | 51 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| 5,767 | 0 | 0 | 0 | 5,767 |
| 0 | 0 | 0 | 0 | 0 |
| 199 | 25 | 0 | 1 | 160 |
| 475 | 0 | 122 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| 1,350 | 0 | 0 | 0 | 1,350 |
| – | 25 | 173 | 11 | 7,738 |
| –3,293 | – 499 | 0 | 0 | –2,747 |
| –103 | 0 | –103 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 |
| –116 | 0 | 0 | 0 | –116 |
| 0 | 0 | 0 | 0 | 0 |
| – 873 | –32 | 0 | 0 | – 841 |
| – 549 | 0 | – 45 | 0 | 0 |
| – 5,016 | 0 | 0 | 0 | – 5,016 |
| –355 | 0 | 0 | 0 | –355 |
| 0 | 0 | 0 | 0 | 0 |
| – | – 531 | –148 | 0 | – 9,075 |
If there is an active market for a fi nancial instrument (e. g. stock exchange), the fair value is expressed by the market or quoted exchange price at the balance sheet date. If no market price is available in an active market, the quoted prices in an active market of similar instruments or recognised valuation techniques are used to determine fair value. Th e valuation techniques used incorporate the major factors establishing a fair value for the fi nancial instruments using valuation parameters which are derived from the market conditions as at the balance sheet date. Counterparty risk is analysed on the basis of the currently existing credit default swaps signed by the counterparties.
Th e fair values of other non-current receivables and fi nancial investments held to maturity with remaining maturities of more than one year equal the present values of the payments related to the assets, taking into account the current interest rate parameters.
Most of the cash and cash equivalents, trade receivables and other receivables have short remaining maturities. Th us, their carrying amounts at the reporting date are largely equivalent to their fair values. Trade payables and other liabilities generally have short maturities; the amounts carried in the balance sheet are similar to their fair values.
Available-for-sale fi nancial assets include shares in partnerships and corporations in the amount of € 97 million (previous year € 158 million). Th ere is no active market for these instruments. Since no future cash fl ows can be reliably determined, the fair value cannot be determined using valuation techniques. Th e shares of these entities are recognised at cost. Th ere are no plans to sell or derecognise a material number of the available-for-sale fi nancial assets recognised as at 31 December 2009 in the near future. As in the previous year, no signifi cant shares measured at cost were sold in the fi nancial year. Th e available-for-sale fi nancial assets measured at fair value relate to debt- and equity instruments.
Th e fi nancial assets measured at fair value through profi t or loss include securities to which the fair value option was applied. Th ese are instruments not acquired for the purpose of nearterm profi t-making. Th ere is an active market for these assets. Th e amounts are recognised at fair value.
Th e following table presents the methods used to determine the fair value for each class:
| Financial assets and liabilities: 2009 | |||
|---|---|---|---|
| ---------------------------------------- | -- | -- | -- |
| € m | |||
|---|---|---|---|
| Level | 1 | 2 | 3 |
| Measurement by reference to major inputs based |
Measurement by reference to major inputs not based |
||
| Quoted | on observable | on observable | |
| Class | market prices | market data | market data |
| Non-current fi nancial assets | |||
| at fair value | 118 | 754 | 0 |
| Current fi nancial assets at fair value |
1,605 | 31 | 0 |
| Non-current fi nancial liabilities at fair value |
0 | – 84 | 0 |
| Current fi nancial liabilities at fair value |
0 | – 57 | 0 |
As part of selling the shares of Deutsche Postbank AG, Deutsche Post AG entered into a forward transaction with Deutsche Bank AG which falls within the scope of IAS 39.2 (g) applicable as of 31 December 2009 and was therefore not accounted for at its positive fair value. Th e fair value of € 1,453 million was determined using signifi cant market data (Level 2).
No assets were reclassifi ed in the fi nancial years 2009 and 2008.
Th e net gains and losses from fi nancial instruments classifi ed in accordance with the measurement categories of IAS 39 are composed as follows:
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Loans and receivables | 214 | 184 |
| Held-to-maturity fi nancial assets | 0 | 0 |
| Financial assets and liabilities recognised at fair value through profi t or loss |
||
| Trading | –181 | –146 |
| Fair value option | 18 | –10 |
| Other fi nancial liabilities | –26 | 46 |
Th e net gains and losses mainly include the eff ects of valuation allowances, fair-value measurement, and disposals (disposal gains / losses). Dividends and interest are not taken into account for the fi nancial instruments recognised at fair value in profi t or loss. Details of net gains or losses on the fi nancial assets available for sale can be found in Note 40. Income and expense from interest and commission agreements of the fi nancial instruments not measured at fair value through profi t or loss are explained in the income statement disclosures.
Cumulative costs for loans and receivables include writedowns of trade receivables from Arcandor AG in the amount of € 51 million.
Th e Group's contingent liabilities total € 2,310 million (previous year: € 1,828 million). € 63 million of the contingent liabilities relate to guarantee obligations (previous year: € 84 million), € 246 million to warranties (previous year: € 279 million) and € 114 million to liabilities from litigation risks (previous year: € 87 million). Th e other contingent liabilities amounting to € 1,887 million (previous year: € 1,378 million) mainly relate to obligations from formal state aid proceedings, see also Note 53.
In addition to provisions, liabilities, and contingent liabilities, there are other fi nancial obligations amounting to € 6,193 million (previous year: € 7,274 million) from non-cancellable operating leases as defi ned by IAS 17.
Th e Group's future non-cancellable payment obligations under leases are attributable to the following asset classes:
| Leases | 7,274 | 6,193 |
|---|---|---|
| Miscellaneous | 10 | 15 |
| Aircraft | 194 | 312 |
| Transport equipment | 501 | 376 |
| Other equipment, operating and offi ce equipment | 49 | 25 |
| Technical equipment and machinery | 68 | 106 |
| Land and buildings | 6,452 | 5,359 |
| 2008 | 2009 | |
| € m |
Th e decrease in operating leases is due to the decline in the US express business (previous year: € 404 million). Th e increase in the aircraft item is mainly due to the fl eet expansion at AeroLogic GmbH. In the previous year, € 139 million of the leasing obligations related to the Deutsche Postbank Group.
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Year 1 after reporting date | 1,452 | 1,357 |
| Year 2 after reporting date | 1,174 | 1,023 |
| Year 3 after reporting date | 994 | 800 |
| Year 4 after reporting date | 717 | 600 |
| Year 5 after reporting date | 533 | 478 |
| Year 6 after reporting date and thereafter | 2,404 | 1,935 |
| Maturity structure of minimum lease payments | 7,274 | 6,193 |
Th e present value of discounted minimum lease payments is € 4,773 million (previous year: € 5,554 million), based on a discount factor of 6.00 % (previous year: 6.00 %) Overall, rental and lease payments of € 2,370 million (previous year: € 2,389 million) arose, of which € 1,820 million (previous year: € 1,735 million) relate to non-cancellable leases. € 2,747 million (previous year: € 3,006 million) of the future lease obligations from non-cancellable leases relates primarily to Deutsche Post Immobilien GmbH.
Th e purchase obligation for investments in non-current assets amounted to € 234 million (previous year: € 150 million).
Due to the market-leading position of Deutsche Post AG, a large number of its services are subject to sectoral regulation under the Postgesetz (German postal act). Th e regulatory authority approves or reviews prices in particular, formulates the terms of downstream access and conducts general checks for market abuse. Any proceedings resulting therefrom may lead to a drop in revenue and earnings.
Legal risks arise from, amongst other things, appeals from a competitor against the price approvals granted under the price cap procedure for the years 2003, 2004 and 2005, and from an association against the price approvals as part of the price cap procedure for 2008. Legal risks arise also from appeals of Deutsche Post against other price approval decisions handed down by the regulatory authority.
European Commission competition proceedings were initiated on the basis of a complaint made by the Deutsche Verband für Post und Telekommunikation (German association for posts and telecommunications) about allegedly excessive mail prices. In these proceedings, Deutsche Post AG has presented detailed evidence to support its argument that the prices are reasonable.
Conditions determined by the regulator oblige Deutsche Post AG to allow customers and competitors downstream access to its network. Proceedings are still pending before the administrative courts against the relevant rulings by the regulatory authority. Depending on the outcome of the proceedings, the Group could be faced with further losses of revenue and earnings.
In response to a complaint from a third party, the European Commission made requests for information to the German government concerning an allegation by the Monopolkommission (German monopoly commission). Th e allegation is that Deutsche Post AG contravenes the prohibition of state aid under the EC Treaty by allowing Deutsche Postbank AG to use Deutsche Post outlets at below-market rates. In the opinion of Deutsche Post AG and Deutsche Postbank AG, this allegation is incorrect and the fee paid by Deutsche Postbank AG complies with the provisions on competition and state aid stipulated in European law. Th e EU Commission also asked the Federal Republic of Germany to comment on the sale of its entire interest in Deutsche Postbank AG to Deutsche Post AG in 1999. However, the EU Commission has already investigated the acquisition of Deutsche Postbank AG as part of the state aid proceedings that were concluded with the ruling dated 19 June 2002. At the time, it explicitly concluded that the acquisition of Postbank involved "no grant of state aid".
Th e German government has already argued before the EU Commission that the allegations are in its opinion unfounded. Never theless, with regard to the two allegations relating to the requests for information, no assurance can be given that the EU Commission will not fi nd that the facts of the case constitute state aid.
On 12 September 2007, the EU Commission initiated a formal investigation against the Federal Republic of Germany concerning possible subsidies. Th e investigation focused on whether the Federal Republic of Germany, using state resources, overcompensated Deutsche Post AG or its legal predecessor Deutsche Bundespost POSTDIENST for the cost of providing universal services between 1989 and 2007 and whether the company was thereby granted state aid incompatible with EU law. According to the decision opening the investigation, the Commission intends to examine all public transfers, public guarantees, statutorily granted exclusive rights, the price regulation of letter services and the public funding of civil servants' pensions during the period in question. Also to be investigated is the cost allocation within Deutsche Post AG and its predecessor between the regulated letter service, the universal service and competitive services. Th is also relates to co-operation agreements between Deutsche Post AG and Deutsche Postbank AG as well as between Deutsche Post AG and the business parcel service marketed by DHL Vertriebs GmbH.
Deutsche Post AG and Deutsche Postbank AG hold that the new investigation lacks any factual basis. All public transfers associated with the privatisation of Deutsche Bundespost, the public guarantees and the funding of pension obligations formed part of the subject matter of the state aid proceedings closed by the decision of 19 June 2002. Th at decision did not identify the measures concerned as incompatible state aid. Deutsche Post AG and Deutsche Postbank AG are further of the opinion that the statutorily granted exclusive rights and the regulated letter prices do not fulfi l the legal criteria to be considered a form of state aid in the fi rst place. Deutsche Post AG also considers the internal allocation of costs with its subsidiaries to be consistent with EU state aid rules and the case law of the European Court of Justice. Nonetheless, based on an overall appraisal, the possibility of the Commission fi nding a case of incompatible state aid cannot be ruled out.
Th e Court of First Instance ruled on 1 July 2008 that the ruling of the EU Commission made on 19 June 2002, obliging Deutsche Post AG to repay state aid allegedly received, was void. As a result of the EU Commission's decision, Deutsche Post AG had to pay to the Federal Republic of Germany a total of € 907 million in January 2003 (€ 572 million of alleged state aid plus interest), although it had immediately appealed against this decision. In accordance with the ruling of the Court of First Instance, Germany repaid this amount plus interest to Deutsche Post AG; Deutsche Post AG received the total amount of € 1,067 million from Germany on 1 August 2008.
Th e EU Commission appealed against the decision of the Court of First Instance before the European Court of Justice. Deutsche Post AG expects the appeal to off er only little prospect of success. It cannot be ruled out, however, that the European Court of Justice allows the appeal, with the Court of First Instance having to decide the issue again. Despite the continuing litigation, the 2002 ruling of the EU Commission could possibly become eff ective again; the total amount received as a result of the decision by the Court of First Instance dated 1 July 2008, plus interest, would have to be paid again to the Federal Republic of Germany.
In October 2007 DHL Global Forwarding, along with all other major players in the freight forwarding industry, received a request for information from the Competition Directorate of the European Commission, a subpoena from the United States Department of Justice's Antitrust Division and information requests from competition authorities in other jurisdictions in connection with a formal investigation into the setting of surcharges and fees in the international freight forwarding industry. In January 2008, an antitrust class action law suit was initiated in the New York district court on behalf of purchasers of freight forwarder services in which Deutsche Post AG and DHL are named as defendants. Th is civil law suit appears to be based on the fact that anti-trust investigations are on-going, but not on any known outcome or quantifi ed loss. Deutsche Post DHL is not able to predict or comment on the outcome of the investigations or the merits of the class action law suit, but believes its fi nancial exposure in relation to both is limited and has not, therefore, taken any provision in its accounts.
A new system to grant variable remuneration components for some of the Group's executives was implemented in 2009, which is accounted for as an equity-settled share-based payment in accordance with IFRS 2. According to this system, the Group's executives concerned receive part of their variable 2009 salary in the form of shares of Deutsche Post AG in 2010 with each executive being able to increase this obligatory share component individually by converting another portion of the variable 2009 remuneration. If certain conditions are met, the executive will be awarded the same amount of Deutsche Post AG shares aft er four years (matching shares). Hence, the programme for the 2009 tranche will expire in 2014. Th e fair value of these matching shares equals the stock price of Deutsche Post AG as at the grant date (€ 11.48). For the grant of variable remuneration portions, € 5 million were recognised in equity in the consolidated fi nancial statements as at 31 December 2009. In 2010, this system will be applied to other Group executives as well.
Th e exercise period for the 2004 tranche of the 2003 Stock Option Plan (SOP) ended on 30 June 2009. Under the plan's terms, all options and stock appreciation rights or SAR of this tranche not exercised by 30 June 2009 were forfeited. As such, no options or SAR have been outstanding under the 2003 Stock Option Plan since 1 July 2009.
| Tranche 2004 | |
|---|---|
| Grant date | 1 July 2004 |
| Stock options granted | 9,328,296 |
| of which to Board of Management | 841,350 |
| of which to other senior executives | 8,486,946 |
| sar granted1) | 1,116,374 |
| of which to Board of Management | 0 |
| of which to other senior executives | 1,116,374 |
| Exercise price | € 17.00 |
| Lock-up expires | 30 June 2007 |
| Dividend yield Deutsche Post ag | 3.05 % |
| Dividend yield Dow Jones Euro stoxx Index | 1.7 % |
| Yield volatility of Deutsche Post ag share | 28.9 % |
| Yield volatility of Dow Jones Euro stoxx Index | 14.8 % |
| Number | |
| Outstanding stock options as at 1 January 2009 | 2,726,658 |
| Outstanding sar as at 1 January 2009 | 232,568 |
| Stock options lapsed | 2,726,658 |
| sar lapsed | 232,568 |
| Stock options exercised | 0 |
| sar exercised | 0 |
Outstanding sar as at 31 December 2009 0 1) Due to legal restrictions sar were granted instead of stock options in some countries. Due to the fair value determined for the sar no amounts were added to the provisions in 2009.
Outstanding stock options as at 31 December 2009 0
Th e SOP has been measured using investment techniques by applying option pricing models (fair value measurement). No staff costs were recognised for the options forfeited in fi nancial year 2009 (previous year: € 4 million). As in the previous year, no staff costs were recognised for SAR under this plan, either. Further details on share-based remuneration of members of the Board of Management can be found in Note 55.
Th e SAR Plan supersedes the 2003 SOP, under which options could last be issued in 2005. As at 3 July 2006, selected executives received stock appreciation rights under the new plan. Th is gives executives the chance to receive a cash payment within a defi ned period in the amount of the diff erence between the respective price of Deutsche Post shares and the fi xed issue price, if demanding performance targets were met.
Th e 2006 LTIP supersedes the 2003 SOP, under which options could last be issued in 2005. As at 1 July 2006, the members of the Board of Management received stock appreciation rights under the new plan. Each SAR under the 2006 LTIP entitles the holder to receive a cash settlement equal to the diff erence between the average of closing prices of the Deutsche Post share during the last fi ve trading days before the exercise date and the issue price of the SAR.
As in the past, the members of the Board of Management must each personally invest 10 % of their annual target salary for each tranche. Th e number of SAR issued to the members of the Board of Management will be determined by the Supervisory Board or its Executive Committee as each tranche is issued. Th e other essential features of the stock option plan have been retained. For example, following a three-year lock-up period that begins on the issue date, the SAR granted until 2008 can be fully or partly exercised within a period of two years only if an absolute or relative performance target is achieved at the end of the lock-up period. Any SAR not exercised during this two-year period will be forfeited. Pursuant to the Gesetz zur Angemessenheit der Vorstandsvergütung (German act on the appropriateness of management board remuneration) the lock-up period for SAR issued in 2009 was extended to four years.
To determine how many – if any – of the granted SAR can be exercised, the average share price or the average index is compared for the reference period and the performance period. Th e reference period comprises the last 20 consecutive trading days before the issue date. Th e performance period is the last 60 trading days before the end of the lock-up period. Th e average (closing) price is calculated as the average closing price of Deutsche Post shares in Deutsche Börse AG's Xetra trading system.
Th e absolute performance target is met if the closing price of the Deutsche Post share is at least 10, 15, 20 or 25 % above the issue price. Th e relative performance target is tied to the performance of the shares in relation to the Dow Jones STOXX 600 Index (SXXP, ISIN EU0009658202). It is met if the share price equals the index performance during the performance period or if it outperforms the index by at least 10 %.
A maximum of four out of every six SAR can be "earned" via the absolute performance target, and a maximum of two via the relative performance target. If neither an absolute nor a relative performance target is met by the end of the lock-up period, the SAR of the related tranche will expire, and no replacement or compensation of any form will be provided. More details on the 2006 LTIP tranches are shown in the following table:
| Stock options | Tranche 2006 | Tranche 2007 | Tranche 2008 | Tranche 2009 |
|---|---|---|---|---|
| Grant date | 1 July 2006 | 1 July 2007 | 1 July 2008 | 1 July 2009 |
| Issue price | € 20.70 | € 24.02 | €18.40 | € 9.52 |
| Lock-up expires | 30 June 2009 | 30 June 2010 | 30 June 2011 | 30 June 2013 |
Th e fair value of the 2006 SAR Plan and the Long Term Incentive Plan for members of the Board of Management (2006 LTIP) was determined using a stochastic simulation model. As a result, an expense of € 2 million had to be recognised for fi nancial year 2009 (previous year: € 0 million). For further disclosures on share based remuneration of members of the Board of Management see Note 55.2.
For the 2006 LTIP and the 2006 SAR Plan (Board of Management and executives) a provision was recognised as at the balance sheet date in the amount of € 16 million (previous year: € 9 million).
All companies classifi ed as related parties that are controlled by the Group or on which the Group can exercise signifi cant infl uence are recorded in the list of shareholdings together with information on the equity interest held, their equity and their net profi t or loss for the period, broken down by geographical areas.
Deutsche Post AG maintains a variety of relationships with the Federal Republic of Germany and other companies controlled by the Federal Republic of Germany.
Th e federal government is a customer of Deutsche Post AG and as such uses the company's services. Deutsche Post AG's business relationships are entered into with the individual public authorities and other government agencies as independent individual customers. Th e services provided to the respective individual customers are immaterial to the overall revenue of Deutsche Post AG.
KfW Bankengruppe (KfW) supports the federal government in continuing to privatise companies such as Deutsche Post AG or Deutsche Telekom AG. In 1997, KfW, together with the federal government, developed a "placeholder model" as a tool to privatise government-owned companies. Under this model, the government sells all or part of its investments to KfW intending to fully privatise these state-owned companies. On this basis, KfW has purchased shares of Deutsche Post AG several times since 1997 from the federal government and carried out various transactions on the capital markets with these shares. KfW's current share in the share capital of Deutsche PostAG is 30.5 %.
Th e Federal Republic of Germany manages its interest in Deutsche Post AG and exercises its shareholder rights via the Bundesanstalt für Post und Telekommunikation ("Bundesanstalt") which has legal capacity and falls under the supervision of the German Federal Ministry of Finance. Th e Gesetz über die Errichtung einer Bundesanstalt für Post und Telekommunikation or Bundesanstalt Post Gesetz (BAnstG – German act to establish a Deutsche Bundes post Federal Posts and Telecommunications Agency or Federal Posts and Telecommunications Agency act) transferred specifi c legal rights and duties to the Bundesanstalt that relate to matters jointly aff ecting Deutsche Post AG, Deutsche Postbank AG and Deutsche Telekom AG. In addition, the Bundesanstalt manages the Postal Civil Service Health Insurance Fund, the recreation programme, the Versorgungsanstalt der Deutsche Bundespost ("VAP") and the welfare service for Deutsche Post AG, Deutsche Postbank AG, Deutsche Telekom AG and the Bundesanstalt. Th e co-ordination and administration tasks are performed on the basis of agency agreements. In 2009, Deutsche Post AG was invoiced for € 68 million (previous year: € 64 million) in instalment payments relating to services provided by the Bundesanstalt.
Relationships with the German Federal Ministry of Finance
In fi nancial year 2001, the German Federal Ministry of Finance and Deutsche Post AG entered into an agreement that governs the terms and conditions of the transfer of income received by Deutsche Post AG from the levying of the settlement payment under the Gesetze über den Abbau der Fehlsubventionierung im Wohnungs wesen (German acts on the reduction of misdirected housing subsidies) relating to housing benefi ts granted by Deutsche Post. In fi nancial year 2009 Deutsche Post AG paid to the federal govern ment the aggregate amount of approximately € 0.1 million for fi nancial year 2008 and € 0.61 million for fi nancial year 2009. As agreed, the fi nal settlement for fi nancial year 2009 will be made by 1 July 2010.
Deutsche Post AG also entered into an agreement with the Federal Ministry of Finance dated 30 January 2004 relating to the transfer of civil servants to German federal authorities. Under this agreement, civil servants are seconded with the aim of transferring them initially for six months, and are then transferred permanently if they successfully complete their probation. Once a permanent transfer is completed, Deutsche Post AG contributes to the cost incurred by the federal government by paying a fl at fee. In 2009, this initiative resulted in eight permanent transfers (previous year: 6) and 18 secondments with the aim of a permanent transfer in 2010 (previous year: 2).
Relationships with Deutsche Telekom ag and its subsidiaries
Th e federal government holds directly and indirectly (via KfW Bankengruppe) 31.70 % of the shares in Deutsche Telekom AG (as at 31 December 2009). Since the federal government, despite its minority interest, has a solid majority in the Annual General Meeting due to its average presence there, a dependent relationship exists between Deutsche Telekom and the federal government. Th erefore, Deutsche Telekom is a related party to Deutsche Post AG. In fi nancial year 2009, the Group provided goods and services for Deutsche Telekom AG amounting to € 0.31 billion (previous year: € 0.35 billion). Th ese were mainly transportation services for letters and parcels. In the same period, the Group purchased goods and services (including IT products and services) worth € 0.4 billion (previous year: € 0.4 billion) from Deutsche Telekom.
Due to the federal government's stock investment of 25 % plus one share, Commerzbank AG is a related party. Commerzbank AG and Deutsche Post AG have signed a loan facility of € 200 million which had not been used by the reporting date.
Bundes-Pensions-Service für Post und Telekommunikation e. V. Information on the Bundes-Pensions-Service für Post- und Telekommunikation e.V. can be found in Note 7.
Th e real estate, with a fair value of € 1,050 million (previous year: € 1,041 million), of which Deutsche Post Betriebsrenten Service e.V. (DPRS) and / or Deutsche Post Pensions-Treuhand GmbH & Co. KG, Deutsche Post Betriebsrenten-Service e.V. & Co. Objekt Gronau KG and Deutsche Post Grundstücks Vermietungsgesellschaft beta mbH Objekt Leipzig KG are the legal or benefi cial owners, is exclusively let to Deutsche Post Immobilien GmbH. Rental expense for Deutsche Post Immobilien GmbH amounted to € 66 million in 2009 (previous year: € 58 million). Th e rent was always paid on time. Deutsche Post Pensions-Treuhand GmbH & Co. KG owns 100 % of the Deutsche Post Pensionsfonds AG established at the end of 2009. No receivables or liabilities were due as at 31 December 2009. Th ere were no sales relationships between external authorities and a Group company of Deutsche Post AG in 2009.
In addition to the consolidated subsidiaries, the Group has direct and indirect relationships with a large number of unconsolidated subsidiaries and associates deemed to be related parties to the Group, in the course of its ordinary business activities. In the course of these activities, all transactions for the provision of goods and services entered into with unconsolidated companies were conducted on an arm's length basis at standard market terms and conditions. Transactions were conducted in fi nancial year 2009 with major related parties, resulting in the following items in the consolidated fi nancial statements:
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Receivables | 4 | 25 |
| Loans | 12 | 15 |
| Receivables from in-house banking | 2 | 3 |
| Financial liabilities | – 45 | – 46 |
| Liabilities | –3 | –10 |
| Liabilities from in-house banking | – 9 | –3 |
In accordance with IAS 24, the Group also reports on transactions between the Group and related parties or members of their families. Related parties are defi ned as the Board of Management, Supervisory Board, heads of corporate departments or business departments (second-level executives) and the members of their families.
Th ere were no reportable transactions between members of the Board of Management and their families and the Group in fi nancial year 2009. In some cases, members of the Supervisory Board were involved in legal transactions with Deutsche Post AG. Th ese primarily involved services rendered in a volume of € 1 million. In one case, a second-level executive and / or family members maintained business relations with Deutsche Post AG which ended, however, in fi nancial year 2008. Th e payment was made in 2009. Th e volume of these transactions was below € 0.5 million.
Th e remuneration of key management personnel of the Group requiring disclosure under IAS 24 comprises the remuneration of the active Board of Management and Supervisory Board members. Th e active members of the Board of Management and the Supervisory Board were remunerated as follows:
| € m | ||
|---|---|---|
| 2008 | 2009 | |
| Short-term employee benefi ts | ||
| (less share-based remuneration) | 13 | 16 |
| Post-employment benefi ts | 2 | 2 |
| Termination benefi ts | 0 | 4 |
| Share-based remuneration | 1 | 2 |
| Total | 16 | 24 |
Th e post-employment benefi ts are recognised as the service cost resulting from the pension provisions for active members of the Board of Management.
Th e share-based remuneration amount relates to the sharebased remuneration expense recognised in fi nancial years 2008 and 2009. It is itemised in the following table:
| thousands of € | 2008 | 2009 | ||||
|---|---|---|---|---|---|---|
| Stock options | SAR | Total | Stock options | SAR | Total | |
| Dr Frank Appel, Chairman | 43 | 167 | 210 | 0 | 421 | 421 |
| Ken Allen (since 26 February 2009) | – | – | – | – | 177 | 177 |
| Bruce Edwards | 0 | 73 | 73 | 0 | 276 | 276 |
| Jürgen Gerdes | 11 | 96 | 107 | 0 | 280 | 280 |
| Lawrence Rosen (since 1 September 2009) | – | – | – | – | 177 | 177 |
| Walter Scheurle | 43 | 131 | 174 | 0 | 284 | 284 |
| Hermann Ude | 11 | 73 | 84 | 0 | 276 | 276 |
| John Allan (until 30 June 2009) | 0 | 84 | 84 | 0 | 101 | 101 |
| John Mullen (until 24 February 2009) | 43 | 131 | 174 | 0 | 0 | 0 |
| Dr Wolfgang Klein (until 9 November 2008) | 0 | 0 | 0 | – | – | – |
| Dr Klaus Zumwinkel (until 17 February 2008) | 9 | 11 | 20 | – | – | – |
| Share-based remuneration | 160 | 766 | 926 | 0 | 1,992 | 1,992 |
Further details on the share-based remuneration of the Board of Management in fi nancial years 2008 and 2009 are presented in the following tables:
| number | Dr Frank | Bruce | Lawrence | Walter | |||||
|---|---|---|---|---|---|---|---|---|---|
| Appel | Ken Allen | Edwards Jürgen Gerdes | Rosen | Scheurle | Hermann Ude | 1) John Mullen |
2) John Allan |
||
| sop | |||||||||
| Outstanding stock options | |||||||||
| as at 1 January 2009 | 65,988 | 0 | 0 | 17,272 | 0 | 25,988 | 16,316 | 17,272 | 0 |
| Stock options granted | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock options lapsed | 65,988 | 0 | 0 | 17,272 | 0 | 25,988 | 16,316 | 17,272 | 0 |
| Stock options exercised | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Outstanding stock options as at 31 December 2009 |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Exercisable stock options as at 31 December 2009 |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Weighted average settlement price in € | Not exercised | ||||||||
| Weighted average exercise price in € Weighted average term to maturity in years |
Not exercised | 0 | |||||||
| sar | |||||||||
| Outstanding sar as at 1 January 2009 | 775,000 | 176,244 | 400,508 | 474,172 | 0 | 660,000 | 337,262 | 660,000 | 285,000 |
| sar granted | 360,000 | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | 0 | 0 |
| sar lapsed | 210,000 | 45,348 | 116,946 | 95,466 | 0 | 210,000 | 53,700 | 660,000 | 0 |
| sar exercised | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Outstanding sar as at 31 December 2009 |
925,000 | 370,896 | 523,562 | 618,706 | 240,000 | 690,000 | 523,562 | 0 | 285,000 |
| Exercisable sar as at 31 December 2009 |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Weighted average settlement price in € | Not exercised | ||||||||
| Weighted average exercise price in € | Not exercised | ||||||||
| Weighted average term to maturity in years |
2.04 | 2.67 | 2.31 | 2.03 | 3.50 | 1.87 | 2.31 | 0 | 1.30 |
1) Until 24 February 2009. 2) Until 30 June 2009.
| number | Dr Frank Appel |
John Allan | Bruce | Edwards Jürgen Gerdes | Dr Wolfgang Klein 1) |
John Mullen | Walter Scheurle |
Hermann Ude | Dr Klaus Zumwinkel 2) |
|---|---|---|---|---|---|---|---|---|---|
| sop | |||||||||
| Outstanding stock options | |||||||||
| as at 1 January 2008 | 163,560 | 0 | 0 | 42,814 | 17,272 | 114,844 | 138,560 | 40,376 | 245,342 |
| Stock options granted | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock options lapsed | 97,572 | 0 | 0 | 25,542 | 0 | 97,572 | 97,572 | 24,060 | 146,358 |
| Stock options exercised | 0 | 0 | 0 | 0 | 17,272 | 0 | 15,000 | 0 | 0 |
| Outstanding stock options as at 31 December 2008 |
65,988 | 0 | 0 | 17,272 | 0 | 17,272 | 25,988 | 16,316 | 98,984 |
| Exercisable stock options as at 31 December 2008 |
65,988 | 0 | 0 | 17,272 | 0 | 17,272 | 25,988 | 16,316 | 98,984 |
| Weighted average settlement price in € | Not exercised Not exercised Not exercised Not exercised | 22.68 Not exercised | 23.33 Not exercised Not exercised | ||||||
| Weighted average exercise price in € | Not exercised Not exercised Not exercised Not exercised | 17.00 Not exercised | 17.00 Not exercised Not exercised | ||||||
| Weighted average term to maturity in years |
0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | |||
| sar | |||||||||
| Outstanding sar as at 1 January 2008 | 430,000 | 55,000 | 170,508 | 244,172 | 0 | 430,000 | 430,000 | 107,262 | 645,000 |
| sar granted | 345,000 | 230,000 | 230,000 | 230,000 | 0 | 230,000 | 230,000 | 230,000 | 0 |
| sar lapsed | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| sar exercised | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Outstanding sar as at 31 December 2008 |
775,000 | 285,000 | 400,508 | 474,172 | 0 | 660,000 | 660,000 | 337,262 | 645,000 |
| Exercisable sar as at 31 December 2008 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Weighted average settlement price in € | All SAR granted are still in their lock-up period | ||||||||
| Weighted average exercise price in € | All SAR granted are still in their lock-up period | ||||||||
| Weighted average term to maturity in years |
1.67 | 2.30 | 1.78 | 1.78 | n / a | 1.53 | 1.53 | 2.02 | 1.01 |
1) Until 9 November 2008. 2) Until 17 February 2008.
Board of Management remuneration
Th e total remuneration paid to the active members of the Board of Management in fi nancial year 2009 including the components with long-term incentive eff ect totalled € 22.2 million (previous year: € 16.7 million). Of this amount, € 9.8 million (previous year: € 9.0 million) relates to components not linked to performance (fi xed salary and fringe benefi ts), € 5.1 million (previous year: € 2.9 million) to performance-linked components (variables) and € 7.3 million (previous year: € 4.8 million) to components with longterm incentive eff ect (stock appreciation rights or SAR). Th e SAR amounted to a number of 1,800,000 (previous year: 1,725,000).
Th e remuneration of former members of the Board of Management or their surviving dependants amounted to € 8.1 million in the year under review (previous year: € 43.1 million). Th e defi ned benefi t obligations (DBO) for current pensions calculated under IFRS amounted to € 26.1 million (previous year: € 25.3 million).
Remuneration of the Supervisory Board
Th e total remuneration of the Supervisory Board in fi nancial year 2009 amounted to approximately € 0.7 million (previous year: € 0.8 million); € 0.6 million of this amount was attributable to a fi xed component (previous year: € 0.6 million), € 0 million to performance-related remuneration (previous year: € 0 million) and € 0.1 million to attendance allowances (€ 0.2 million).
Further information on the itemised remuneration of the Board of Management and the Supervisory Board can be found in the Corporate Governance Report. Th e Remuneration Report contained in the Corporate Governance Report also forms part of the Group management report.
Eff ective 31 December 2009, shares held by the Board of Management and the Supervisory Board of Deutsche Post AG amounted to less than 1 % of the company's share capital.
For the transactions of Board of Management and Supervisory Board members involving securities of the company notifi ed to Deutsche Post AG in accordance with Section 15 a of the Wertpapierhandelsgesetz (WpHG – German securities trading act), please refer to the website of the company at www.dp-dhl.com.
Th e following fees for services rendered by the auditor of the consolidated fi nancial statements, PricewaterhouseCoopers Aktiengesellschaft Wirtschaft sprüfungsgesellschaft , in fi nancial year 2009 and in the fi nancial year before, were recognised as expense:
| 2008 | 2009 | |
|---|---|---|
| Audits of the fi nancial statements | 14 | 6 |
| Other assurance or valuation services | 8 | 1 |
| Tax advisory services | 1 | 0 |
| Other services | 12 | 1 |
| Auditors' fees | 35 | 8 |
For fi nancial year 2009, Deutsche Post AG has exercised the simplifi cation options allowed by Section 264 (3) of the HGB for the following companies:
DHL International GmbH
DHL Logistics GmbH
On 7 December 2009, the Board of Management and the Super visory Board of Deutsche Post AG together submitted the Declaration of Conformity with the German Corporate Governance Code for fi nancial year 2009 required by Section 161 of the Aktiengesetz (AktG – German stock corporation act). Th is Declaration of Confor mity can be accessed online at www.corporate-governancecode.de and at www.dp-dhl.com.
With the amended IAS 39 eff ective as at 1 January 2010, the forward which had so far not been accounted for in the mandatory exchangeable bond, will be recognised in the balance sheet at fair value through profi t or loss; see Notes 3 and 4.
Th ere were no other reportable events aft er the balance sheet date.
At the end of January 2009 the Federal Administrative Court in Leipzig rejected the minimum wage regulation of the Federal Ministry of Labour on formal grounds. Th e Federal Administrative Court, in its press release, referred to procedural errors in the preparation of the regulation by the Federal Ministry of Labour.
Affi liated companies included in the consolidated fi nancial statements
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Europe | |||||
| abis GmbH | Germany, Frankfurt / Main | 35.70 | eur | 350 | 842 |
| Aerocar b. v. | Netherlands, Amsterdam | 100.00 | eur | 7,181 | 813 |
| Albert Scheid GmbH | Germany, Cologne | 100.00 | eur | 990 | 146 |
| Applied Distribution Group Ltd. | United Kingdom, Bracknell | 100.00 | eur | 5,570 | 0 |
| asg uk Ltd.5) | United Kingdom, Staines | 100.00 | eur | 224 | 0 |
| Axial s. a.5) | Belgium, Seneffe | 100.00 | eur | 2,765 | 0 |
| Blue Funnel Bulkships Ltd.5) | United Kingdom, Bracknell | 100.00 | eur | –2,475 | 0 |
| BürgTrans GmbH | Germany, Düsseldorf | 100.00 | eur | 240 | –3 |
| Cargus Express Curier SrL. | Romania, Bucharest | 99.91 | eur | –5,232 | –4,863 |
| Cargus International SrL. | Romania, Bucharest | 100.00 | eur | –3,244 | 1,521 |
| Cassin Air Transport (Shannon) Ltd.5) | Ireland, Dublin | 100.00 | eur | 9,264 | 0 |
| Clepa sarl | France, Vitry-sur-Seine | 100.00 | eur | 1,390 | –62 |
| Container Services (Amsterdam) b. v. | Netherlands, Amsterdam | 100.00 | eur | 245 | 1 |
| Cormar Ltd.5) | United Kingdom, Bracknell | 100.00 | eur | 2,299 | 0 |
| cpj Travel Ltd. | United Kingdom, Hounslow | 100.00 | eur | 151 | –10 |
| d. h. l. International ab | Sweden, Stockholm | 100.00 | eur | 3,564 | 0 |
| danmar Lines ag | Switzerland, Basel | 100.00 | eur | 16,467 | –1,392 |
| danzas (Oss) b. v. | Netherlands, Tiel | 100.00 | eur | 4,754 | 22 |
| danzas (uk) Ltd.5) | United Kingdom, Staines | 100.00 | eur | 1,120 | 0 |
| danzas aei (uk) Ltd. | United Kingdom, Staines | 100.00 | eur | 8,460 | 0 |
| danzas aei GmbH | Germany, Kelsterbach | 100.00 | eur | 7,805 | 56 |
| Danzas Chemicals GmbH5) | Germany, Düsseldorf | 100.00 | eur | –1,267 | 0 |
| Danzas Deutschland Holding GmbH | Germany, Frankfurt / Main | 100.00 | eur | 5,326 | –220,240 |
| danzas Fashion b. v. | Netherlands, Venlo | 100.00 | eur | –25,773 | –6,442 |
| Danzas Fashion n. v. | Belgium, Grimbergen | 100.00 | eur | –1,209 | –23 |
| danzas Fashion Service Centers b. v. | Netherlands, Waalwijk | 100.00 | eur | 732 | 83 |
| Danzas Grundstücksverwaltung Düsseldorf GmbH | Germany, Düsseldorf | 100.00 | eur | 16,009 | 172 |
| Danzas Grundstücksverwaltung Frankfurt GmbH | Germany, Frankfurt / Main | 100.00 | eur | 31,260 | 652 |
| Danzas Grundstücksverwaltung Gross-Gerau GmbH | Germany, Hamburg | 100.00 | eur | 28 | –30 |
| Danzas Holding ag | Switzerland, Basel | 100.00 | eur | 231,048 | 42,988 |
| Danzas Kiev Ltd.1) | Ukraine, Kiev | 100.00 | eur | –1,471 | –274 |
| Danzas Odessa Ltd.1) | Ukraine, Odessa | 100.00 | eur | – | – |
| Danzas Lebensmittelverkehre GmbH | Germany, Frankfurt / Main | 100.00 | eur | –214 | –1,674 |
| Danzas Polska Sp. z o. o. | Poland, Warsaw | 100.00 | eur | 24 | 0 |
| danzas Services (Oss) b. v. | Netherlands, Tiel | 100.00 | eur | 45 | 0 |
| Danzas Verwaltungs GmbH | Germany, Frankfurt / Main | 100.00 | eur | 20,888 | –891 |
| Danzas, s. l.1) | Spain, San Sebastián | 100.00 | eur | 235,329 | 46,048 |
| Union Aduanera Española s. a.1) | Spain, Barcelona | 100.00 | eur | – | – |
| Darshaan Properties Ltd. (D) | Ireland, Dublin | 100.00 | eur | 8,023 | –655 |
| Deutsche Post Adress Beteiligungsgesellschaft mbH | Germany, Bonn | 100.00 | eur | 416 | 8,539 |
| Deutsche Post Adress Geschäftsführungs GmbH | Germany, Bonn | 51.00 | eur | 27 | –16 |
| Deutsche Post Adress GmbH & Co. kg | Germany, Bonn | 51.00 | eur | 9,380 | 16,437 |
| Deutsche Post Assekuranz Vermittlungs GmbH | Germany, Bonn | 55.00 | eur | 51 | –3 |
| Deutsche Post Bankbeteiligungsgesellschaft mbH | Germany, Bonn | 100.00 | eur | 1,329,361 | 2,782 |
| Deutsche Post Beteiligungen Holding Bankbeteiligungsgesellschaft mbH |
Germany, Bonn | 100.00 | eur | 4,014,185 | 1,113 |
| Deutsche Post Beteiligungen Holding GmbH | Germany, Bonn | 100.00 | eur | 9,077,243 | –149,543 |
| Deutsche Post Com GmbH | Germany, Bonn | 100.00 | eur | 1,150 | –71 |
| Deutsche Post Consult GmbH | Germany, Bonn | 100.00 | eur | 3,833 | 582 |
| Deutsche Post Customer Service Center GmbH | Germany, Monheim | 100.00 | eur | –803 | –29,315 |
| Deutsche Post DHL Inhouse Consulting GmbH | Germany, Bonn | 100.00 | eur | –1 | 7,510 |
| Deutsche Post DHL Market Research | |||||
| and Innovation GmbH | Germany, Bonn | 100.00 | eur | 7,426 | –2,724 |
| Deutsche Post Direkt GmbH | Germany, Bonn | 100.00 | eur | 60 | 7,422 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Deutsche Post Finance b. v. | Netherlands, Amersfoort | 100.00 | eur | 11,778 | 552 |
| Deutsche Post Fleet GmbH | Germany, Bonn | 100.00 | eur | 511,119 | 1,011 |
| Deutsche Post Global Mail (Belgium) n. v. | Belgium, Brussels | 100.00 | eur | 1,070 | 68 |
| Deutsche Post Global Mail (France) sas | France, Vincennes | 100.00 | eur | 2,480 | –1,503 |
| Deutsche Post Global Mail (Netherlands) b. v. | Netherlands, Utrecht | 100.00 | eur | 7,845 | 1,571 |
| Deutsche Post Global Mail (Switzerland) ag | Switzerland, Basel | 100.00 | eur | 958 | 839 |
| Deutsche Post Global Mail (uk) Ltd. | United Kingdom, Croydon | 100.00 | eur | 7,724 | 0 |
| Deutsche Post Immobilien GmbH | Germany, Bonn | 100.00 | eur | 2,793 | 2,468 |
| Deutsche Post Immobilienentwicklung | |||||
| Grundstücks gesellschaft mbH | Germany, Bonn | 100.00 | eur | 59 | –339 |
| Deutsche Post Immobilienentwicklung Grundstücks gesellschaft mbH & Co. Logistikzentren kg |
Germany, Bonn | 100.00 | eur | –28,818 | –28,169 |
| Deutsche Post Insurance Ltd. | Ireland, Dublin | 100.00 | eur | 7,547 | 2,631 |
| Deutsche Post International b. v.1) | Netherlands, Amersfoort | 100.00 | eur | 3,086,452 | 213,588 |
| TheNetherlands622009 b. v.1) | Netherlands, Apeldoorn | 100.00 | eur | – | – |
| Deutsche Post it brief GmbH | Germany, Bonn | 100.00 | eur | 13,455 | –7,467 |
| Deutsche Post it Services GmbH | Germany, Bonn | 100.00 | eur | 40,175 | 114 |
| Deutsche Post Mail Distribution (Netherlands) b. v. | Netherlands, Apeldoorn | 100.00 | eur | –8,145 | –166 |
| Deutsche Post Real Estate Germany GmbH | Germany, Bonn | 100.00 | eur | 13,408 | –15,545 |
| Deutsche Post Reinsurance s. a. | Luxembourg, Luxembourg | 100.00 | eur | 2,240 | 461 |
| Deutsche Post Selekt Mail Nederland c. v. | Netherlands, Utrecht | 100.00 | eur | –37,834 | –9,269 |
| Deutsche Post Shop Essen GmbH | Germany, Essen | 100.00 | eur | 25 | 18 |
| Deutsche Post Shop Hannover GmbH | Germany, Hanover | 100.00 | eur | 25 | 60 |
| Deutsche Post Shop München GmbH | Germany, Munich | 100.00 | eur | 25 | 91 |
| Deutsche Post Technischer Service GmbH | Germany, Bonn | 100.00 | eur | 49 | –1,339 |
| dhl (Cyprus) Ltd. | Cyprus, Nikosia | 100.00 | eur | 2,807 | 176 |
| dhl Air Ltd. | United Kingdom, Hounslow | 100.00 | eur | 19,226 | 747 |
| dhl AirWays GmbH | Germany, Cologne | 100.00 | eur | –3,187 | 1,584 |
| dhl Automotive GmbH | Germany, Hamburg | 100.00 | eur | 4,549 | –614 |
| dhl Automotive Offenau GmbH | Germany, Bonn | 100.00 | eur | 60 | –509 |
| dhl Automotive s. r. o. | Czech Republic, Prague | 100.00 | eur | 9,991 | 1,867 |
| dhl Aviation (France) sas | France, Roissy-en-France | 100.00 | eur | 1,892 | –98 |
| dhl Aviation (Italy) SrL. | Italy, Milan | 100.00 | eur | 3,624 | 2,085 |
| dhl Aviation (Netherlands) b. v. | Netherlands, Amersfoort | 100.00 | eur | 8,915 | –10 |
| dhl Aviation (uk) Ltd. | United Kingdom, Hounslow | 100.00 | eur | 16,871 | 2,007 |
| dhl Aviation n. v. / s. a. | Belgium, Zaventem | 100.00 | eur | 97,789 | 75,784 |
| dhl Bwlog GmbH | Germany, Bonn | 100.00 | eur | 20,949 | 29 |
| dhl Container Logistics (uk) Ltd. | United Kingdom, Hounslow | 100.00 | eur | 0 | 11,409 |
| dhl Distribution Holdings (uk) Ltd. | United Kingdom, Hounslow | 100.00 | eur | 390,302 | –10,867 |
| dhl Ekspres (Slovenija) d. o. o. | Slovenia, Trzin | 100.00 | eur | –25 | –665 |
| dhl Estonia as | Estonia, Tallinn | 100.00 | eur | 5,597 | 93 |
| dhl Exel Central Services | France, Roissy-en-France | 100.00 | eur | –4,168 | 14,419 |
| dhl Exel Supply Chain (Denmark) a / s | Denmark, Kastrup | 100.00 | eur | –21,088 | –9,001 |
| dhl Exel Supply Chain (Italy) Spa. | Italy, Milan | 100.00 | eur | 28,083 | 132 |
| dhl Exel Supply Chain (Norway) as | Norway, Oslo | 100.00 | eur | 1,105 | –2,654 |
| dhl Exel Supply Chain (Poland) Sp. z o. o. | Poland, Warsaw | 100.00 | eur | –1,419 | –1,861 |
| DHL Exel Supply Chain (Spain) s. l. | Spain, Madrid | 100.00 | eur | 48 | –3 |
| dhl Exel Supply Chain (Sweden) ab | Sweden, Stockholm | 100.00 | eur | 13,995 | –3,348 |
| dhl Exel Supply Chain Euskal-Log, s. l. u. | Spain, Barcelona | 100.00 | eur | 6 | –4 |
| dhl Exel Supply Chain Hungary Ltd. | Hungary, Ullo | 100.00 | eur | –1,274 | –1,678 |
| dhl Exel Supply Chain Portugal Lda. | Portugal, Alverca | 100.00 | eur | 7,095 | 1,292 |
| dhl Exel Supply Chain Trade (Poland) Sp. z o. o. | Poland, Warsaw | 100.00 | eur | 448 | 9 |
| dhl Exel Supply Chain Trollhättan ab | Sweden, Stockholm | 100.00 | eur | 4,152 | 1,338 |
| dhl Express (Austria) Ges. m. b. H | Austria, Guntramsdorf | 100.00 | eur | 4,096 | –4,639 |
| dhl Express (Belgium) n. v. | Belgium, Ternat | 100.00 | eur | 8,376 | –4,896 |
| dhl Express (Czech Republic) s. r. o. | Czech Republic, Ostrava | 100.00 | eur | 8,047 | 784 |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Express (Denmark) a / s | Denmark, Broendby | 100.00 | eur | 69,614 | 2,438 |
| dhl Express (France) sas | France, Roissy-en-France | 100.00 | eur | –5,690 | –107,140 |
| dhl Express (Hellas) s. a. | Greece, Athens | 100.00 | eur | 465 | –359 |
| dhl Express (Hungary) Ltd. | Hungary, Budapest | 100.00 | eur | 13,250 | 1,235 |
| dhl Express (Iceland) ehf | Iceland, Reykjavik | 100.00 | eur | –40 | –5 |
| dhl Express (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | –22,442 | –18,940 |
| dhl Express (Italy) SrL. | Italy, Milan | 100.00 | eur | 19,641 | –3,559 |
| dhl Express (Luxembourg) s. a. | Luxembourg, Contern | 100.00 | eur | 4,635 | 353 |
| dhl Express (Netherlands) b. v. | Netherlands, Amersfoort | 100.00 | eur | –18,758 | 14,280 |
| dhl Express (Norway) as | Norway, Oslo | 100.00 | eur | 4,005 | –9,509 |
| dhl Express (Poland) Sp. z o. o. | Poland, Warsaw | 100.00 | eur | 59,774 | 24,860 |
| dhl Express (Schweiz) ag | Switzerland, Basel | 100.00 | eur | 15,330 | 10,624 |
| dhl Express (Slovakia) Spol Sro | Slovakia, Bratislava | 100.00 | eur | 7,019 | 764 |
| dhl Express (Sweden) ab | Sweden, Stockholm | 100.00 | eur | –3,739 | –24,548 |
| dhl Express (uk) Ltd. | United Kingdom, Hounslow | 100.00 | eur | –416,909 | –124,298 |
| dhl Express Bulgaria eood | Bulgaria, Sofi a | 100.00 | eur | 3,827 | 1,685 |
| dhl Express Germany GmbH | Germany, Bonn | 100.00 | eur | 1,710 | 20,904 |
| dhl Express Iberia s. l.1) | Spain, San Sebastián | 100.00 | eur | 201,576 | 27,336 |
| Denalur spe, s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express a Coruna Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Alacant Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Araba Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Barcelona Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Bizkaia Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Cantabria Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Castello Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Ciudad Real Spain s. l.1) | Spain, Ciudad Real | 100.00 | eur | – | – |
| dhl Express Girona Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Guipuzkona Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Huelva Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Iles Baleares Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Jaén Spain s. l.1) | Spain, Ciudad Real | 100.00 | eur | – | – |
| dhl Express Lugo Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Madrid Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Malaga Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Navarra Spain s. l.1) | Spain, Navarra | 100.00 | eur | – | – |
| dhl Express Pontevedra Spain s. l.1) | Spain, Pontevedra | 100.00 | eur | – | – |
| dhl Express Servicios s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Sevilla Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Tarragona Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Valencia Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Valladolid Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Zaragoza Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Ltd.1) | United Kingdom, Hounslow | 100.00 | eur | 5,932 | 0 |
| dhl Pony Express Ltd.1) | United Kingdom, Hounslow | 100.00 | eur | – | – |
| dhl @ home Ltd.1) | United Kingdom, Hounslow | 100.00 | eur | – | – |
| Rosier Distribution Ltd.1) | United Kingdom, Hounslow | 100.00 | eur | – | – |
| Russel Davies Properties Ltd.1) | United Kingdom, Hounslow | 100.00 | eur | – | – |
| Russell Davies Ltd.1) | United Kingdom, Hounslow | 100.00 | eur | – | – |
| dhl Express Macedonia d. o. o. e. l. | Macedonia, Skopje | 100.00 | eur | 1,595 | 362 |
| dhl Express Portugal Lda. | Portugal, Moreira da Maia | 100.00 | eur | 19,742 | 3,329 |
| dhl Express Services (France) sas | France, Roissy-en-France | 100.00 | eur | –717 | 375 |
| dhl Fashion (France) sas | France, Roissy-en-France | 100.00 | eur | –1,423 | –3,072 |
| dhl Finance Services b. v. | Netherlands, Maastricht | 100.00 | eur | 21,554 | 1,576 |
| dhl Food Logistics, s. r. o. | Czech Republic, Říčany | 100.00 | eur | 401 | 21 |
| dhl Freight (Belgium) n. v. | Belgium, Grimbergen | 100.00 | eur | 4,240 | –2,742 |
| dhl Freight (France) sas | France, Roissy-en-France | 100.00 | eur | 6,236 | –16,962 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Freight (Netherlands) b. v. | Netherlands, Amersfoort | 100.00 | eur | 3,961 | 426 |
| dhl Freight and Contract Logistics (uk) Ltd. | United Kingdom, Milton Keynes | 100.00 | eur | –344 | –28,201 |
| dhl Freight Finland Oy | Finland, Vantaa | 100.00 | eur | 14,307 | –2,220 |
| dhl Freight Germany Holding GmbH | Germany, Düsseldorf | 100.00 | eur | –54,282 | –23,113 |
| dhl Freight GmbH | Germany, Düsseldorf | 100.00 | eur | 2,469 | –18,388 |
| dhl Freight Hungary Forwarding and Logistics Ltd. | Hungary, Budapest | 100.00 | eur | –179 | –162 |
| dhl Freight Spain s. l. | Spain, San Sebastián | 100.00 | eur | 7,054 | 541 |
| dhl gbs (uk) Ltd. | United Kingdom, Feltham | 100.00 | eur | 6,042 | 2,734 |
| dhl Global Forwarding (Austria) Ges. m. b. H | Austria, Vienna | 100.00 | eur | 15,684 | –1,344 |
| dhl Global Forwarding (Belgium) n. v. | Belgium, Zaventem | 100.00 | eur | 32,956 | –469 |
| dhl Global Forwarding (cz) s. r. o. | Czech Republic, Prague | 100.00 | eur | 18,974 | 2,809 |
| dhl Global Forwarding (Denmark) a / s | Denmark, Kastrup | 100.00 | eur | 12,271 | 527 |
| dhl Global Forwarding (Finland) Oy | Finland, Vantaa | 100.00 | eur | 4,218 | 470 |
| dhl Global Forwarding (France) sas | France, Roissy-en-France | 100.00 | eur | 46,549 | 1,739 |
| dhl Global Forwarding (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 8,032 | 2,792 |
| dhl Global Forwarding (Italy) Spa. | Italy, Milan | 100.00 | eur | 50,646 | 19,297 |
| dhl Global Forwarding (Luxembourg) s. a. | Luxembourg, Luxembourg | 100.00 | eur | 761 | 153 |
| dhl Global Forwarding (Netherlands) b. v. | Netherlands, Luchthaven Schiphol | 100.00 | eur | 29,726 | –3,426 |
| dhl Global Forwarding (Norway) as | Norway, Gardemoen | 100.00 | eur | –9,108 | –3,417 |
| dhl Global Forwarding (Senegal) s. a. | Senegal, Dakar | 100.00 | eur | 93 | 55 |
| dhl Global Forwarding (sweden) ab | Sweden, Kista | 100.00 | eur | 12,271 | –276 |
| dhl Global Forwarding (uk) Ltd.1) | United Kingdom, Staines | 100.00 | eur | 167,607 | 17,262 |
| Baker Britt & Co. Ltd.1) | United Kingdom, Staines | 100.00 | eur | – | – |
| dhl Global Forwarding GmbH | Germany, Frankfurt / Main | 100.00 | eur | –686 | 18,821 |
| dhl Global Forwarding Hellas s. a. | |||||
| of International Transportation and Logistics | Greece, Piraeus | 100.00 | eur | 5,423 | –578 |
| dhl Global Forwarding Hungary Kft | Hungary, Vecses | 100.00 | eur | 3,586 | –684 |
| dhl Global Forwarding Managament GmbH | Germany, Bonn | 100.00 | eur | 25 | –1,661 |
| dhl Global Forwarding Portugal, Lda. | Portugal, Moreira da Maia | 100.00 | eur | 3,301 | 829 |
| dhl Global Forwarding Sp. z o. o. | Poland, Lodz | 100.00 | eur | 13,338 | 3,409 |
| dhl Global Forwarding Spain s. l. | Spain, Madrid | 100.00 | eur | 17,547 | 4,195 |
| dhl Global Forwarding Tasimacilik a. s. | Turkey, Istanbul | 100.00 | eur | 8,762 | 1,231 |
| dhl Global Mail (uk) Ltd. | United Kingdom, Bracknell | 100.00 | eur | –12,883 | 3,001 |
| dhl Global Mail Nordic ab | Sweden, Stockholm | 100.00 | eur | 973 | 836 |
| dhl Global Management GmbH | Germany, Bonn | 100.00 | eur | 1,353,003 | 86 |
| dhl Group Services n. v. / s. a. | Belgium, Zaventem | 100.00 | eur | 1,367 | 16 |
| dhl Holding (France) sas | France, Roissy-en-France | 100.00 | eur | 363,467 | 6,493 |
| dhl Holding (Italy) SrL. | Italy, Milan | 100.00 | eur | 262,260 | 9,652 |
| dhl Holdings (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 93 | 0 |
| dhl Home Delivery GmbH | Germany, Hamburg | 100.00 | eur | 8,263 | –22,985 |
| dhl Hub Leipzig GmbH | Germany, Schkeuditz | 100.00 | eur | –51 | 2,032 |
| dhl Information Services (Europe) s. r. o. | Czech Republic, Prague | 100.00 | eur | 86,361 | 5,420 |
| dhl Inter Ltd.5) | United Kingdom, Moss End | 100.00 | eur | 0 | 1 |
| dhl International (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 1,048 | 4 |
| dhl International (Romania) SrL. | Romania, Bucharest | 99.00 | eur | 7,978 | 5,018 |
| dhl International (uk) Ltd. | United Kingdom, Hounslow | 100.00 | eur | 42,770 | –1,149 |
| dhl International (Ukraine) zat | Ukraine, Kiev | 100.00 | eur | 1,625 | 363 |
| dhl International b. v. | Netherlands, Amersfoort | 100.00 | eur | 26,664 | 0 |
| dhl International d. o. o. | Croatia, Zagreb | 100.00 | eur | 2,138 | 651 |
| dhl International Express (France) sas | France, Roissy-en-France | 100.00 | eur | 17,232 | –2,318 |
| dhl International GmbH | Germany, Bonn | 100.00 | eur | 2,038,142 | –250,268 |
| dhl International n. v. / s. a. | Belgium, Diegem | 100.00 | eur | 16,048 | 1,791 |
| dhl Investments Ltd. | United Kingdom, St. Helier | 100.00 | eur | –24,579 | –3,634 |
| dhl Latvia sia | Latvia, Riga | 100.00 | eur | –562 | –1,259 |
| dhl Lebensmittel Logistik GmbH | Austria, Vienna | 100.00 | eur | 948 | –4,526 |
| dhl Logistika d. o. o. | Slovenia, Brnik | 100.00 | eur | 693 | –61 |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Logistics (Hungary) Ltd. | Hungary, Budapest | 100.00 | eur | 15,401 | 26 |
| dhl Logistics (Schweiz) ag | Switzerland, Basel | 100.00 | eur | 21,623 | 3,465 |
| dhl Logistics (Slovakia) spol. s r. o. | Slovakia, Senec | 100.00 | eur | 1,280 | –415 |
| dhl Logistics (Ukraine) Ltd.1) | Ukraine, Kiev | 100.00 | eur | 132 | – |
| dp Air Cargo Service Ukraine Ltd.1) | Ukraine, Kiev | 100.00 | eur | – | – |
| ooo asg Rad Transport Russia1) | Russia, Moscow | 100.00 | eur | – | – |
| dhl Logistics GmbH | Germany, Hamburg | 100.00 | eur | 1,483 | –12,764 |
| dhl Logistics SrL. | Romania, Bucharest | 100.00 | eur | 746 | 275 |
| dhl Logistik Service GmbH | Austria, Vienna | 100.00 | eur | 887 | –2,353 |
| dhl Lojistik Hizmetleri a. s. | Turkey, Istanbul | 100.00 | eur | 9,409 | –381 |
| dhl Management (Schweiz) ag | Switzerland, Basel | 100.00 | eur | 21,283 | 20,730 |
| dhl Management Services Ltd. | United Kingdom, Hounslow | 100.00 | eur | 145 | 30 |
| dhl Medjunarodni Vazdusni Ekspres d. o. o. | Serbia, Belgrade | 100.00 | eur | 3,770 | 726 |
| dhl Neutral Services Ltd. | United Kingdom, Bracknell | 100.00 | eur | –4,137 | –2,418 |
| dhl Nordic ab | Sweden, Stockholm | 100.00 | eur | 73,685 | –1,158 |
| dhl Packaging, s. r. o. | Czech Republic, Pohořelice | 70.00 | eur | –273 | 508 |
| dhl Pipelife Logistik GmbH | Austria, Vienna | 100.00 | eur | 1,804 | 58 |
| dhl Quality Cargo as | Norway, Oslo | 100.00 | eur | 2,437 | –142 |
| dhl Rail ab | Sweden, Trelleborg | 100.00 | eur | 116 | 120 |
| dhl Senegal sarl | Senegal, Dakar | 100.00 | eur | 1,233 | 712 |
| dhl Services Ltd. | United Kingdom, Milton Keynes | 100.00 | eur | –1,027 | 6,958 |
| dhl Shoe Logistics s. r. o. | Czech Republic, Pohořelice | 100.00 | eur | 905 | –263 |
| dhl Solutions (Belgium) n. v. | Belgium, Mechelen | 100.00 | eur | 27,323 | –3,519 |
| dhl Solutions (France) sas | France, Roissy-en-France | 100.00 | eur | 1,967 | –22,960 |
| dhl Solutions Fashion GmbH | Germany, Essen | 100.00 | eur | –394 | –92 |
| dhl Solutions GmbH | Germany, Hamburg | 100.00 | eur | 57,578 | –224,655 |
| dhl Solutions Großgut GmbH | Germany, Frankfurt / Main | 100.00 | eur | 21,423 | –75,562 |
| dhl Solutions Retail GmbH | Germany, Unna | 100.00 | eur | 3,604 | –28,993 |
| dhl Solutions s. r. o. | Czech Republic, Ostrava | 100.00 | eur | 5,649 | –343 |
| dhl Stenvreten kb | Sweden, Stockholm | 100.00 | eur | –1,488 | –1,461 |
| dhl Stock Express sas | France, Roissy-en-France | 100.00 | eur | –14,182 | –14,720 |
| dhl Supply Chain (Austria) GmbH | Austria, Vienna | 100.00 | eur | 3,803 | 4,736 |
| dhl Supply Chain (Finland) Oy | Finland, Vantaa | 100.00 | eur | 4,267 | –690 |
| dhl Supply Chain (Netherlands) b. v. | Netherlands, Amersfoort | 100.00 | eur | 132,204 | –5,969 |
| dhl Supply Chain Management (Benelux) b. v. | Netherlands, Amersfoort | 100.00 | eur | –30,507 | 440 |
| dhl Supply Chain Management GmbH | Germany, Bonn | 100.00 | eur | 25 | 321 |
| dhl Supply Chain, s. r. o. | Czech Republic, Pohořelice | 100.00 | eur | 7,838 | –803 |
| dhl Technical Distribution b. v. | Netherlands, Veghel | 100.00 | eur | –2,059 | –75 |
| dhl Trade Fairs & Events GmbH | Germany, Frankfurt / Main | 100.00 | eur | 151 | –154 |
| dhl Transcare Transport GmbH | Austria, Vienna | 100.00 | eur | 5,500 | –37 |
| dhl Vehicle Services (uk) Ltd. | United Kingdom, Hounslow | 100.00 | eur | –1,678 | 303 |
| dhl Vertriebs GmbH & Co. ohg | Germany, Bonn | 100.00 | eur | 52,596 | 14,868 |
| dhl Verwaltungs GmbH | Germany, Bonn | 100.00 | eur | –408 | –260 |
| dhl Voigt International GmbH | Germany, Neumuenster | 51.00 | eur | 1,096 | 833 |
| dhl Wahl International GmbH | Germany, Bielefeld | 51.00 | eur | 940 | 325 |
| dhl Worldwide Express Logistics n. v. / s. a. | Belgium, Diegem | 100.00 | eur | 26,615 | 1,657 |
| dhl Worldwide Express Tasimacilik ve Ticaret a. s. | Turkey, Istanbul | 100.00 | eur | 20,169 | 3,858 |
| dhl Worldwide Network n. v. / s. a. | Belgium, Diegem | 100.00 | eur | 38,425 | 5,069 |
| dz Specialties b. v. | Netherlands, Amersfoort | 100.00 | eur | 62,387 | –902 |
| European Air Transport Leipzig GmbH | Germany, Schkeuditz | 100.00 | eur | 25 | 755 |
| European Air Transport n. v. / s. a. | Belgium, Zaventem | 100.00 | eur | 18,868 | 26,048 |
| Exel (Africa) Ltd. | United Kingdom, Bracknell | 100.00 | eur | –1,583 | 2,018 |
| Exel (Belgium) n. v. | Belgium, Veghel | 100.00 | eur | 5,415 | 2,231 |
| Exel (European Services Centre) Ltd. | Ireland, Dublin | 100.00 | eur | –10,665 | –14 |
| Exel (Mechelen) n. v. | Belgium, Mechelen | 100.00 | eur | 3,499 | –609 |
| Exel (Meinerzhagen) GmbH | Germany, Unna | 100.00 | eur | 199 | –6 |
| Exel (Wommelgem) n. v. | Belgium, Wommelgem | 100.00 | eur | –3,352 | –88 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Exel Beziers eurl | France, Paris | 100.00 | eur | –226 | –871 |
| Exel Bornem n. v. | Belgium, Mechelen | 100.00 | eur | 737 | 123 |
| Exel Chenas eurl | France, Roissy-en-France | 100.00 | eur | 66 | –162 |
| Exel Czech Republic s. r. o. | Czech Republic, Prague | 100.00 | eur | 373 | 76 |
| Exel de Portugal Transitarios Lda. | Portugal, Lisbon | 100.00 | eur | 94 | –4 |
| Exel Eiendom as | Norway, Oslo | 100.00 | eur | 11,116 | 215 |
| Exel Environmental Developments Ltd. | United Kingdom, Bracknell | 100.00 | eur | 1 | 7,882 |
| Exel eurl | France, Erstein | 100.00 | eur | 167 | –781 |
| Exel Europe Ltd. | United Kingdom, Milton Keynes | 100.00 | eur | 323,500 | 114,213 |
| Exel European Management Transport Services n. v. | Belgium, Vilvoorde | 100.00 | eur | 1,927 | –282 |
| Exel Finance (1986) Ltd. | United Kingdom, Bedford | 100.00 | eur | 0 | 6,382 |
| Exel Finance Ltd. | United Kingdom, Bedford | 100.00 | eur | 601 | 659 |
| Exel France s. a. | France, Roissy-en-France | 100.00 | eur | 140,331 | 340 |
| Exel Freight Management (Ireland) Ltd.5) | Ireland, Dublin | 100.00 | eur | 0 | 0 |
| Exel Freight Management (uk) Ltd. | United Kingdom, Bracknell | 100.00 | eur | 7,082 | 0 |
| Exel Freight sas | France, Roissy-en-France | 100.00 | eur | 33,123 | 126 |
| Exel Frigoliner GmbH | Germany, Grosskarolinenfeld | 100.00 | eur | 1,451 | –502 |
| Exel Gallieni | France, Roissy-en-France | 100.00 | eur | –992 | –608 |
| Exel Gironde s. a. | France, Arles | 100.00 | eur | 5,848 | –1,141 |
| Exel Group Holdings (Nederland) b. v. | Netherlands, Veghel | 100.00 | eur | 59,555 | –10,362 |
| Exel Head Offi ce Services Ltd. | United Kingdom, Bedford | 100.00 | eur | 0 | 1,370 |
| Exel Healthcare (Belgium) n. v. | Belgium, Mechelen | 100.00 | eur | 56,887 | –1,711 |
| Exel Holdings Ltd. | United Kingdom, Bedford | 100.00 | eur | 214,670 | 82,082 |
| Exel Insurance Ltd. | United Kingdom, Bedford | 100.00 | eur | 7,352 | 172 |
| Exel International Holdings (Belgium) n. v. | Belgium, Mechelen | 100.00 | eur | 87,538 | –593 |
| Exel International Holdings (Netherlands 1) b. v. | Netherlands, Veghel | 100.00 | eur | 695,862 | 0 |
| Exel International Holdings (Netherlands 2) b. v. | Netherlands, Veghel | 100.00 | eur | 1,141,082 | 18,246 |
| Exel International Holdings (Netherlands 5) b. v. | Netherlands, Veghel | 100.00 | eur | 27,314 | 33,208 |
| Exel International Holdings Ltd. | United Kingdom, Bedford | 100.00 | eur | 258,564 | 1,600 |
| Exel Investments Ltd. | United Kingdom, Bracknell | 100.00 | eur | 303,180 | 2,247 |
| Exel Investments Netherlands b. v. | Netherlands, Veghel | 100.00 | eur | 225 | 0 |
| Exel Lille sarl | France, Roissy-en-France | 100.00 | eur | –391 | –1,009 |
| Exel Ltd. | United Kingdom, Bracknell | 100.00 | eur | 1,543,334 | 443,253 |
| Exel Logistics – Fashionfl ow Ltd. | United Kingdom, Bracknell | 100.00 | eur | 1,008 | 0 |
| Exel Logistics – Management Services Ltd. | United Kingdom, Bracknell | 100.00 | eur | 1,159 | 0 |
| Exel Logistics (Northern Ireland) Ltd. | United Kingdom, Mallusk | 100.00 | eur | 4,843 | –53 |
| Exel Logistics Ltd. | United Kingdom, Milton Keynes | 100.00 | eur | 32,940 | 6,818 |
| Exel Logistics Property Ltd. | United Kingdom, Bedford | 100.00 | eur | 55,624 | 5,173 |
| Exel Loire eurl | France, Roissy-en-France | 100.00 | eur | 2,660 | –956 |
| Exel Management Services No 2 Ltd. | United Kingdom, Bracknell | 100.00 | eur | 0 | 22,456 |
| Exel Overseas Ltd. | United Kingdom, Bracknell | 100.00 | eur | 150,242 | 16,165 |
| Exel Overseas Finance | United Kingdom, Bedford | 100.00 | eur | 343,765 | 15,666 |
| Exel Rhone eurl sarl | France, Roissy-en-France | 100.00 | eur | 1,614 | –164 |
| Exel Roadfreight Services b. v. | Netherlands, Veghel | 100.00 | eur | –7,737 | –518 |
| Exel Rome sarl | France, Roissy-en-France | 100.00 | eur | 304 | –549 |
| Exel Scotland Ltd. | United Kingdom, Glasgow | 100.00 | eur | 2,431 | 568 |
| Exel Seine sarl | France, Roissy-en-France | 100.00 | eur | 1,101 | –459 |
| Exel Services Logistiques sas | France, Roissy-en-France | 100.00 | eur | 5,426 | –8,877 |
| Exel Slovakia, s. r. o. | Slovakia, Bratislava | 100.00 | eur | 1,082 | –596 |
| Exel Supply Chain Solutions Ltd. | Ireland, Dublin | 100.00 | eur | –1,794 | –2,652 |
| Exel Sweden ab | Sweden, Stockholm | 100.00 | eur | 15,302 | 165 |
| Exel Technology Supply Chain Solutions (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 1,861 | –9,373 |
| Exel Transport France sasu | France, Vitry-sur-Seine | 100.00 | eur | –299 | –1,899 |
| Exel uk Ltd. | United Kingdom, Bracknell | 100.00 | eur | 46,249 | 18,514 |
| Express Line n. v. / s. a | Belgium, Diegem | 100.00 | eur | 2,024 | 19 |
| f. x. Coughlin (u. k.) Ltd. | United Kingdom, Bracknell | 100.00 | eur | 2,773 | –14 |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| f. x. Coughlin b. v. | Netherlands, Veghel | 100.00 | eur | 1,617 | 313 |
| fact Denmark a / s | Denmark, Kastrup | 100.00 | eur | 548 | 70 |
| Fashion Logistics Ltd. | United Kingdom, Bracknell | 100.00 | eur | 381 | 202 |
| First Mail Düsseldorf GmbH | Germany, Düsseldorf | 100.00 | eur | –2,077 | –1,398 |
| Formation e-Document Solutions Ltd. | United Kingdom, London | 95.96 | eur | 6,483 | –7,225 |
| Freight Indemnity and Guarantee Company Ltd. | United Kingdom, Bedford | 100.00 | eur | 18 | 0 |
| Fulfi lment Plus GmbH | Germany, Bonn | 51.00 | eur | 403 | 192 |
| Gerlach & Co. Internationale Expediteurs b. v. | Netherlands, Venlo | 100.00 | eur | 3,107 | 346 |
| Gerlach & Co. n. v. | Belgium, Antwerp | 100.00 | eur | 5,170 | –112 |
| Gerlach ag | Switzerland, Basel | 100.00 | eur | 5,461 | 4,327 |
| Gerlach Kft | Hungary, Budapest | 100.00 | eur | 574 | –7 |
| Gerlach Sp. z o. o. | Poland, Gluchowo/Komorniki | 100.00 | eur | 782 | 229 |
| Gerlach Spol s. r. o. | Czech Republic, Rudna u Prahy | 100.00 | eur | 2,023 | 1,213 |
| Gerlach Zolldienste GmbH | Germany, Frankfurt / Main | 100.00 | eur | –141 | –231 |
| Giorgio Gori SrL. | Italy, Collesalvetti (Livorno) | 60.00 | eur | 16,570 | 7,195 |
| Global Mail (Austria) Ges. m. b. H | Austria, Vienna | 100.00 | eur | 1,833 | 430 |
| Gori France sas | France, Châtenoy-le-Royal | 60.00 | eur | 969 | –227 |
| Gori Iberia s. l. | Spain, Barcelona | 60.00 | eur | 1,556 | 539 |
| Gori Iberia Transitarios, Limitada | Portugal, Matosinhos | 45.00 | eur | 622 | 304 |
| Güll GmbH | Germany, Lindau (Bodensee) | 51.00 | eur | 1,847 | 398 |
| Henderson Line Ltd. | United Kingdom, Glasgow | 100.00 | eur | 353 | –5 |
| Higgs International Ltd. | United Kingdom, Bracknell | 100.00 | eur | 12,014 | 990 |
| Historia Sp. z o. o. | Poland, Warsaw | 100.00 | eur | –155 | 0 |
| Hull Blyth (Angola) Ltd. | United Kingdom, Bracknell | 100.00 | eur | –3,653 | –2,111 |
| Hyperion Properties Ltd.5) | United Kingdom, Bedford | 100.00 | eur | –5,016 | 0 |
| Inside Track Automotive Ltd.5) | United Kingdom, Bracknell | 100.00 | eur | 2,911 | 0 |
| Integrated Logistics Management Belgium b. v. | Netherlands, Veghel | 100.00 | eur | 1,576 | –50 |
| Interlanden b. v.1) | Netherlands, Apeldoorn | 100.00 | eur | –183 | –12,603 |
| Wegener Transport b. v.1) | Netherlands, Apeldoorn | 70.00 | eur | – | – |
| InterServ Gesellschaft für Personal | |||||
| und Beratungsdienstleistungen mbH | Germany, Bonn | 100.00 | eur | 14,903 | –40,507 |
| intexo Holding (Deutschland) GmbH | Germany, Huenxe | 100.00 | eur | 3,567 | –2 |
| itg Global Logistics b. v. | Netherlands, Schiphol C | 100.00 | eur | 954 | –575 |
| itg GmbH Internationale Spedition und Logistik | Germany, Schwaig/Oberding | 100.00 | eur | 1,687 | –1,404 |
| itg Internationale Spedition Ges. m. b. H. | Austria, Vienna | 100.00 | eur | 25 | 27 |
| Joint Retail Logistics Ltd.5) | United Kingdom, Bracknell | 100.00 | eur | 846 | 0 |
| Kampton | United Kingdom, Bedford | 100.00 | eur | –54 | –102 |
| Karukera Transit sas | France, Pointe-à-Pitre | 100.00 | eur | 1,407 | 172 |
| Kelpo Kuljetus Fi Oy | Finland, Vantaa | 100.00 | eur | –1,632 | –306 |
| Laible ag Speditionen | Switzerland, Schaffhausen | 100.00 | eur | 418 | 359 |
| Langtexo Logistik Verwaltungs GmbH | Germany, Duisburg | 100.00 | eur | 1,010 | –45 |
| MailMerge Nederland b. v. | Netherlands, Wormerveer | 100.00 | eur | 157 | 0 |
| McGregor Cory Ltd. | United Kingdom, Bracknell | 100.00 | eur | 19,734 | 5,564 |
| McGregor Gow & Holland (1996) Ltd. | United Kingdom, Bracknell | 100.00 | eur | 263 | 0 |
| McGregor Sea & Air Services Ltd. | United Kingdom, Bracknell | 100.00 | eur | 336 | 0 |
| Mercury Airspeed International b. v. | Netherlands, Nieuw Vennep | 100.00 | eur | –822 | –20 |
| Mercury Holdings Ltd. | United Kingdom, Bracknell | 100.00 | eur | 10,682 | 0 |
| msas Global Logistics Ltd. | United Kingdom, Bracknell | 100.00 | eur | 63,790 | 4,290 |
| msas Ltd. | United Kingdom, Bracknell | 100.00 | eur | –3,457 | 0 |
| Multimar Seefrachtenkontor Ges. m. b. H | Austria, Vienna | 100.00 | eur | 278 | –50 |
| National Carriers Ltd. | United Kingdom, Bedford | 100.00 | eur | 5,890 | 207 |
| nfc International Holdings (Ireland) | Ireland, Dublin | 100.00 | eur | 28,584 | 0 |
| Ocean (Shetland) Ltd. | United Kingdom, Glasgow | 100.00 | eur | 195 | 0 |
| Ocean Group (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 3,321 | 0 |
| Ocean Group Investments Ltd. | United Kingdom, Bracknell | 100.00 | eur | 26,484 | 8,001 |
| Ocean Overseas (Luxembourg) sarl | Luxembourg, Luxembourg | 100.00 | eur | 20,194 | 263,611 |
| Ocean Overseas Holdings Ltd. | United Kingdom, Bracknell | 100.00 | eur | 402,226 | 517,742 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Ocean Transport & Trading Ltd. | United Kingdom, Bracknell | 100.00 | eur | 601,233 | 20,275 |
| Orbital Secretaries Ltd.5) | United Kingdom, Hounslow | 100.00 | eur | 0 | 0 |
| Outrack Credit (uk) Ltd.5) | United Kingdom, Hounslow | 100.00 | eur | 1 | 0 |
| Packaging Datastore Ltd. | United Kingdom, Bracknell | 100.00 | eur | 0 | 739 |
| Packaging Management Group Ltd. | United Kingdom, Bracknell | 100.00 | eur | 0 | –75 |
| Performance International n. v. | Belgium, Mechelen | 100.00 | eur | –842 | –976 |
| Pharma Logistics b. v. | Netherlands, Rotterdam | 100.00 | eur | 342 | –13 |
| Pharma Logistics n. v. | Belgium, Mechelen | 100.00 | eur | 32,494 | 1,396 |
| Power Europe (Cannock) Ltd. | United Kingdom, Bracknell | 100.00 | eur | 1,233 | 860 |
| Power Europe (Doncaster) Ltd. | United Kingdom, Bracknell | 100.00 | eur | 929 | 564 |
| Power Europe Development Ltd. | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Power Europe Development No. 3 Ltd. | United Kingdom, Bracknell | 100.00 | eur | –18 | –190 |
| Power Europe Ltd. | United Kingdom, Bracknell | 100.00 | eur | –3,263 | 316 |
| Power Europe Operating Ltd. | United Kingdom, Bracknell | 100.00 | eur | 8,982 | 2,296 |
| ppl cz s. r. o. | Czech Republic, Prague | 100.00 | eur | 72,007 | 5,081 |
| Presse Service Güll GmbH | Switzerland, St. Gallen | 51.00 | eur | 1,847 | 398 |
| rdc Properties Ltd. | United Kingdom, Bracknell | 100.00 | eur | 6,353 | 0 |
| Realcause Ltd. | United Kingdom, Bedford | 100.00 | eur | 473,031 | 26,847 |
| Rosier Tankers Ltd.5) | United Kingdom, Hounslow | 100.00 | eur | –3,005 | 1 |
| Ross House (al) Ltd. | United Kingdom, Bracknell | 100.00 | eur | 336 | 0 |
| Scherbauer Spedition GmbH | Germany, Neutraubling | 50.00 | eur | 3,191 | 925 |
| sci Arcatime – Caudan | France, Brest | 100.00 | eur | 763 | 72 |
| sci Arcatime – St Berthevin | France, Brest | 100.00 | eur | 228 | 161 |
| sci Arcatime – Thouare | France, Brest | 100.00 | eur | 607 | 20 |
| Selektvracht b. v. | Netherlands, Utrecht | 100.00 | eur | 15,034 | 4,088 |
| sermat Services Maritimes Aériens et Transit s. a. | France, La Garenne Colombes | 100.00 | eur | 1,925 | –39 |
| sgb Speditionsgesellschaft mbH | Germany, Munich | 100.00 | eur | 585 | 165 |
| Speedmail International Ltd. | United Kingdom, London | 100.00 | eur | 9,784 | 0 |
| StarBroker ag | Switzerland, Basel | 100.00 | eur | 14,957 | 3,308 |
| Sydney Cooper (Distribution) Ltd. | Ireland, Dublin | 100.00 | eur | 13,337 | 916 |
| t & b Whitwood Holdings Ltd. | United Kingdom, Bracknell | 100.00 | eur | 18,001 | 675 |
| Tankfreight (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 7,174 | 337 |
| tbg usa5) | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| tbmm Holdings Ltd. | United Kingdom, Bracknell | 100.00 | eur | 30 | –2 |
| The Stationery Offi ce Enterprises Ltd. | United Kingdom, London | 95.96 | eur | –42,129 | 11 |
| The Stationery Offi ce Group Ltd. | United Kingdom, London | 95.96 | eur | 28,119 | 0 |
| The Stationery Offi ce Holdings Ltd. | United Kingdom, London | 95.96 | eur | 3,217 | –12,748 |
| The Stationery Offi ce Ltd. | United Kingdom, London | 95.96 | eur | 125,027 | 18,650 |
| Tibbett & Britten (usa) Ltd. | United Kingdom, Bracknell | 99.93 | eur | 0 | 0 |
| Tibbett & Britten Group (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 4,992 | 256 |
| Tibbett & Britten Group Iberia Ltd. | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Tibbett & Britten Group Ltd. | United Kingdom, Bracknell | 100.00 | eur | 30,185 | –27,744 |
| Tibbett & Britten International Holdings Ltd. | United Kingdom, Bracknell | 100.00 | eur | 0 | 8,610 |
| Tibbett & Britten International Ltd. | United Kingdom, Bracknell | 100.00 | eur | 676 | 0 |
| Tradeteam Ltd. | United Kingdom, Bedford | 50.10 | eur | 32,984 | 9,757 |
| Traditrade Holding s. a. | Luxembourg, Luxembourg | 100.00 | eur | 22 | –1 |
| Transfl ash McGregor (Ireland) Ltd. (a) | Ireland, Dublin | 100.00 | eur | –10,470 | 7,147 |
| Transportbedrijf H. de Haan Vianen b. v. | Netherlands, Utrecht | 100.00 | eur | 4,674 | 0 |
| tso Holdings a Ltd. | United Kingdom, London | 95.96 | eur | 29,217 | 0 |
| tso Holdings b Ltd. | United Kingdom, London | 95.96 | eur | 44,447 | 0 |
| tso Property Ltd. | United Kingdom, London | 95.96 | eur | 10,627 | 548 |
| uab dhl Lietuva | Lithaunia, Vilnius | 100.00 | eur | 1,969 | 483 |
| Véron Grauer ag | Switzerland, Basel | 100.00 | eur | 739 | 519 |
| Vetsch ag, Internationale Transporte1) | Switzerland, Buchs | 100.00 | eur | 1,214 | 258 |
| Vetsch Internationale Transporte Ges. m. b. H.1) | Austria, Wolfurt | 100.00 | eur | – | – |
| vgl Direct Load Services b. v. | Netherlands, Tiel | 100.00 | eur | –2,116 | –495 |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Werbeagentur Janssen GmbH | Germany, Düsseldorf | 100.00 | eur | 511 | 43 |
| Williams Lea Belgium b. v. b. a. | Belgium, Ternat | 95.57 | eur | –257 | –12 |
| Williams Lea Czech Republic, s. r. o. | Czech Republic, Brünn | 95.96 | eur | 728 | –1,271 |
| Williams Lea Deutschland GmbH | Germany, Bonn | 100.00 | eur | 1,804 | 4,555 |
| Williams Lea Direct Marketing Solutions GmbH | Germany, Bonn | 100.00 | eur | 43 | –82 |
| Williams Lea Document Solutions GmbH | Germany, Mannheim | 100.00 | eur | 25 | 1,174 |
| Williams Lea Finland Oy | Finland, Vantaa | 95.96 | eur | 29 | 5 |
| Williams Lea France sas | France, Paris | 95.96 | eur | 110 | –265 |
| Williams Lea Group Ltd. | United Kingdom, London | 95.96 | eur | 136,571 | 2,110 |
| Williams Lea Group Management Services Ltd. | United Kingdom, London | 95.96 | eur | 344 | 388 |
| Williams Lea Holdings Plc. | United Kingdom, London | 95.96 | eur | 478,313 | 3,296 |
| Williams Lea Hungary Kft. | Hungary, Budapest | 95.96 | eur | –23 | –22 |
| Williams Lea Inhouse Solutions GmbH | Germany, Bonn | 100.00 | eur | 2,292 | 12,129 |
| Williams Lea Ireland Ltd. | Ireland, Dublin | 95.96 | eur | 1,742 | –14 |
| Williams Lea Italia SrL. | Italy, Rome | 95.96 | eur | –22 | –112 |
| Williams Lea Ltd. | United Kingdom, London | 95.96 | eur | 41,816 | 18,103 |
| Williams Lea Marketing Solutions GmbH | Germany, Munich | 100.00 | eur | 25 | 1,568 |
| Williams Lea Netherlands b. v. | Netherlands, Amsterdam | 95.96 | eur | –474 | –679 |
| Williams Lea Print Solutions GmbH | Germany, Bonn | 100.00 | eur | 25 | –2,825 |
| Williams Lea s. l. | Spain, Barcelona | 95.96 | eur | –276 | –56 |
| Williams Lea Sweden ab | Sweden, Nyköping | 95.96 | eur | 936 | –32 |
| Williams Lea uk Ltd. | United Kingdom, London | 95.96 | eur | 18,112 | 2,384 |
| Williams Lea Ukraine llc | Ukraine, Kiev | 95.96 | eur | 64 | –90 |
| Yorkshire Exhibition Services Ltd. | United Kingdom, Staines | 85.00 | eur | 176 | 79 |
| Americas | |||||
| aei Drawback Services, Inc. | usa, Plantation | 100.00 | eur | 8,119 | 1,088 |
| Aero Express del Acuador (Transam) cia Ltda. Sucursal Colombia |
Colombia, Bogotá | 100.00 | eur | 702 | 698 |
| Aero Express del Ecuador (TransAm) cia Ltda. | Ecuador, Guayaquil | 100.00 | eur | 4,929 | 681 |
| Aerotrans s. a. | Panama, Panama City | 100.00 | eur | 7 | 0 |
| Agencia de Aduanas sia dhl Global Forwarding | |||||
| (Colombia) s. a. Nivel 1 | Colombia, Bogotá | 100.00 | eur | 2,266 | 400 |
| Air Express International usa, Inc. | usa, Plantation | 100.00 | eur | 16,159 | 1,453 |
| astar Air Cargo llc6) | usa, New York | 49.00 | eur | –120,256 | –17,721 |
| Aviation Fuel Inc. | usa, Plantation | 100.00 | eur | –4,092 | –429 |
| Circuit Logistics Inc. | Canada, Toronto | 100.00 | eur | 117 | 250 |
| Connect Logistics Services Inc. | Canada, Toronto | 100.00 | eur | 21,597 | 6,037 |
| d. h. l. International Express Ltd. | Canada, Mississauga | 100.00 | eur | 74,398 | 92 |
| Danzas Corporation | usa, Plantation | 100.00 | eur | –27,789 | –6,328 |
| dhl Global Forwarding (Canada) Inc. | Canada, Mississauga | 100.00 | eur | 46,490 | 2,517 |
| dhl (Bahamas) Ltd. | Bahamas, Nassau | 100.00 | eur | 1,001 | –96 |
| dhl (Barbados) Ltd. | Barbados, St. Michael | 100.00 | eur | 1,484 | –111 |
| dhl (Bolivia) SrL. | Bolivia, Santa Cruz de la Sierra | 100.00 | eur | 4,278 | –250 |
| dhl (bvi) Ltd. | British Virgin Islands, Tortola | 100.00 | eur | 1,503 | –514 |
| dhl (Costa Rica) s. a. | Costa Rica, Cormar | 100.00 | eur | 6,911 | –654 |
| dhl (Honduras) s. a. de c. v. | Honduras, San Pedro Sula | 100.00 | eur | 4,944 | 766 |
| dhl (Jamaica) Ltd. | Jamaica, Kingston | 100.00 | eur | 884 | –855 |
| dhl (Paraguay) SrL. | Paraguay, Asunción | 100.00 | eur | 3,149 | 774 |
| dhl (Trinidad and Tobago) Ltd. | Trinidad and Tobago, Port of Spain | 100.00 | eur | 699 | –795 |
| dhl (Uruguay) SrL. | Uruguay, Montevideo | 100.00 | eur | 6,779 | 1,072 |
| dhl Aero Expresso s. a. | Panama, Panama City | 100.00 | eur | 19,140 | 848 |
| dhl Arwest (panama) s. a.1) | Panama, Panama City | 100.00 | eur | –2,082 | –730 |
| Corporación Arwest de Mexico s. a. de c. v.1) | Mexico, Mexico City | 100.00 | eur | – | – |
| dhl Arwest de Mexico s. a. de c. v.1) | Mexico, Mexico City | 100.00 | eur | – | – |
| dhl Arwest (Guatemamala) s. a.1) | Guatemala, Guatemala City | 100.00 | eur | – | – |
| dhl Avation Americas Inc. | usa, Plantation | 100.00 | eur | 1,299 | 257 |
| dhl Aviation (Costa Rica) s. a. | Costa Rica, San José | 100.00 | eur | 1,710 | 177 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Co Manufacturing Packing sc México | Mexico, Mexico City | 100.00 | eur | –266 | 1,287 |
| dhl Corporate Services sc México | Mexico, Teptzotlán | 100.00 | eur | 5,996 | 1,623 |
| dhl Customer Support (Costa Rica) s. a. | Costa Rica, Real Cariari | 100.00 | eur | –456 | 0 |
| dhl Customs (Costa Rica) s. a. | Costa Rica, Cormar | 100.00 | eur | 1,463 | –958 |
| dhl Customs Brokerage Ltd. | Canada, Mississauga | 100.00 | eur | 27 | 134 |
| dhl de Guatemala s. a. | Guatemala, Guatemala City | 100.00 | eur | 11,004 | 4,810 |
| dhl Dominicana s. a. | Dominican Republic, Santo Domingo | 100.00 | eur | –171 | –418 |
| dhl Exel Supply Chain (Argentina) s. a. | Argentina, Buenos Aires | 100.00 | eur | 938 | –376 |
| dhl Express (Argentina) s. a. | Argentina, Buenos Aires | 100.00 | eur | 12,506 | 976 |
| dhl Express (Brazil) Ltda. | Brazil, São Paulo | 100.00 | eur | 10,978 | 3,739 |
| dhl Express (Canada) Ltd. | Canada, Mississauga | 100.00 | eur | –156,084 | –11,362 |
| dhl Express (Chile) Ltda. | Chile, Santiago de Chile | 100.00 | eur | 15,579 | 9,904 |
| dhl Express (Ecuador) s. a. | Ecuador, Quito | 100.00 | eur | 2,867 | 1,229 |
| dhl Express (El Salvador) s. a. de c. v.1) | El Salvador, San Salvador | 100.00 | eur | 3,257 | 1,521 |
| dhl Logistics de El Salvador s. a. de c. v.1) | El Salvador, San Salvador | 100.00 | eur | – | – |
| Postal One de El Salvador s. a. de c. v.1) | El Salvador, San Salvador | 100.00 | eur | – | – |
| dhl Express (usa) Inc. | usa, Plantation | 100.00 | eur | –2,075,112 | –144,878 |
| dhl Express Colombia Ltda. | Colombia, Bogotá | 100.00 | eur | 11,884 | 5,252 |
| dhl Express México, s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 28,865 | 17,119 |
| dhl Express Peru s. a. c.1) | Peru, Callao | 100.00 | eur | 13,885 | 2,289 |
| dhl Express Aduanas Peru s. a. c.1) | Peru, Callao | 100.00 | eur | – | – |
| dhl Fletes Aereos, c. a. | Venezuela, Caracas | 100.00 | eur | 10,270 | 7,913 |
| dhl Global Customer Solutions (usa) Inc. | usa, Plantation | 100.00 | eur | 711 | 967 |
| dhl Global Forwarding (Argentina) s. a. | Argentina, Buenos Aires | 99.97 | eur | 4,728 | 49 |
| dhl Global Forwarding (Chile) s. a. | Chile, Santiago de Chile | 100.00 | eur | 11,115 | 3,259 |
| dhl Global Forwarding (Colombia) Ltda. | Colombia, Bogotá | 100.00 | eur | 2,005 | –543 |
| dhl Global Forwarding (Ecuador) s. a. | Ecuador, Quito | 100.00 | eur | 34 | 1 |
| dhl Global Forwarding (El Salvador) s. a. | El Salvador, San Salvador | 100.00 | eur | 319 | –79 |
| dhl Global Forwarding (Guatemala) s. a.1) | Guatemala, Guatemala City | 100.00 | eur | 1,795 | 487 |
| Carga Aerea Internacional s. a. (carinter)1) | Guatemala, Guatemala City | 100.00 | eur | – | – |
| dhl Zona Franca (Guatemala) s. a.1) | Guatemala, Guatemala City | 100.00 | eur | – | – |
| Transportes Expresos Internacionales (Interexpreso) s. a.1) |
Guatemala, Guatemala City | 100.00 | eur | – | – |
| dhl s. a. | Guatemala, Guatemala City | 100.00 | eur | 2,470 | 400 |
| dhl Global Forwarding (Mexico) s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 17,573 | 4,441 |
| dhl Global Forwarding (Nicaragua) s. a. | Nicaragua, Managua | 100.00 | eur | –65 | –6 |
| dhl Global Forwarding (Panama) s. a.1) | Panama, Panama City | 100.00 | eur | 3,086 | 509 |
| dhl Holding Panama Inc.1) | Panama, Panama City | 100.00 | eur | – | – |
| dhl Global Forwarding Depósito | |||||
| Aduanero (Colombia) s. s. | Colombia, Bogotá | 100.00 | eur | 1,801 | 279 |
| dhl Global Forwarding Management | |||||
| Latin America Inc. | usa, Coral Gables | 100.00 | eur | 2,931 | 2,374 |
| dhl Global Forwarding Peru s. a. | Peru, Lima | 100.00 | eur | 2,582 | –166 |
| dhl Global Forwarding Venezuela, ca | Venezuela, Caracas | 100.00 | eur | 7,753 | 2,550 |
| dhl Global Forwarding Zona Franca (Colombia) s. a. | Colombia, Bogotá | 100.00 | eur | 2,895 | –381 |
| dhl Holding Central America Inc.1) | Panama, Panama City | 100.00 | eur | 37,174 | 3,180 |
| Lagents & Co. SrL.1) | Costa Rica, San José | 50.00 | eur | – | – |
| dhl In Plant Services sc México | Mexico, Teptzotlán | 100.00 | eur | 919 | –11 |
| dhl Information Services (Americas), Inc. | usa, Plantation | 100.00 | eur | 810 | 3,628 |
| dhl International Antilles sarl | Martinique, Lamentin | 100.00 | eur | –557 | –386 |
| dhl International Haiti s.a. | Haiti, Port-au-Prince | 100.00 | eur | 591 | –66 |
| dhl Logistics (Brazil) Ltda. | Brazil, São Paulo | 100.00 | eur | –38,675 | –24,328 |
| dhl Management Cenam s. a. | Costa Rica, Heredia | 100.00 | eur | 2,279 | 319 |
| dhl Metropolitan Logistics sc México | Mexico, Teptzotlán | 100.00 | eur | –434 | 44 |
| dhl Network Operations (usa) Corp. | usa, Plantation | 100.00 | eur | –486,279 | –258,063 |
| dhl Nicaragua s. a. | Nicaragua, Managua | 100.00 | eur | 1,059 | 167 |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl of Curacao n. v. | Dutch Antilles, Curaçao | 100.00 | eur | 1,187 | –255 |
| dhl Panama s. a. | Panama, Panama City | 100.00 | eur | 2,359 | –70 |
| dhl Regional Logistics sc México | Mexico, Teptzotlán | 100.00 | eur | –2,757 | –337 |
| dhl Regional Services Inc. | usa, Plantation | 100.00 | eur | 1,459 | 973 |
| dhl Solutions (usa), Inc. | usa, Plantation | 100.00 | eur | –13,474 | –4,997 |
| dhl Specialized Services usa, Inc. | usa, Westerville | 100.00 | eur | 0 | 0 |
| dhl St. Maarten n. v. | Dutch Antilles, Philipsburg | 100.00 | eur | 2,047 | –70 |
| dhl Worldwide Express (Aruba) n. v.5) | Aruba, Oranjesta | 100.00 | eur | 4 | 0 |
| Dimalsa Logistics Inc. | Puerto Rico, San Juan (Tacano) | 100.00 | eur | 1,002 | 103 |
| dpwn Financing (usa) 1, llc | usa, Wilmington | 100.00 | eur | 0 | 0 |
| dpwn Financing (usa) 2, llc | usa, Wilmington | 100.00 | eur | 0 | 0 |
| dpwn Financing (usa) lp | usa, Wilmington | 100.00 | eur | 48 | 292 |
| dpwn Holdings (usa), Inc. | usa, Columbus | 100.00 | eur | 4,855,378 | –5,410 |
| Exel Automocion s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 5,563 | 722 |
| Exel Canada Ltd. | Canada, Toronto | 100.00 | eur | –8,543 | –6,013 |
| Exel Chile s.a. | Chile, Santiago de Chile | 99.99 | eur | 1,215 | 149 |
| Exel Direct Inc. | usa, Westerville | 100.00 | eur | 26,907 | 879 |
| Exel Global Logistics do Brasil s. a. | Brazil, São Paulo | 100.00 | eur | 4,092 | 442 |
| Exel Global Logistics Inc. | usa, Palm City | 100.00 | eur | –21 | –3,433 |
| Exel Inc. | usa, Westerville | 100.00 | eur | 86,507 | 50,428 |
| Exel Investments Inc. | usa, Wilmington | 100.00 | eur | 668,885 | 28,912 |
| Exel Logistics Argentina s. a. | Argentina, Buenos Aires | 100.00 | eur | 520 | 139 |
| Exel Logistics do Nordeste Ltda. | Brazil, Camacari | 100.00 | eur | 4,898 | –817 |
| Exel Logistics s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 7,286 | 4,879 |
| Exel Supply Chain Services de Mexico, s. a. de c. v. | Mexico, Teptzotlán | 100.00 | eur | 408 | –7 |
| Exel Transportation Services Inc. | usa, Memphis | 100.00 | eur | –171,769 | –10,957 |
| Exel Transportation Services Inc. (Canadian Branch) | Canada, Mississauga | 100.00 | eur | 377 | –116 |
| Exel Trucking Inc. | usa, Memphis | 100.00 | eur | –1,266 | –33 |
| f. x. Coughlin do Brasil Ltda. | Brazil, São Paulo | 100.00 | eur | –5,451 | 0 |
| Freshlink Canada Ltd. | Canada, Toronto | 100.00 | eur | 655 | 109 |
| Genesis Logistics Inc. | usa, Westerville | 100.00 | eur | 7,482 | 3,137 |
| Giorgio Gori usa, Inc. | usa, Baltimore | 60.00 | eur | 4,197 | 2,282 |
| Global Mail Inc. | usa, Columbus | 100.00 | eur | 105,347 | –5,106 |
| Gori Argentina s. a. | Argentina, Mendoza | 57.00 | eur | 89 | –72 |
| Gori Chile s. a. | Chile, Santiago | 59.40 | eur | 4,061 | 342 |
| Harmony Logistics Canada Inc. | Canada, Toronto | 100.00 | eur | 7,215 | 1,911 |
| Heartland Logistics Inc. | usa, Westerville | 100.00 | eur | 1,984 | 355 |
| Hyperion Inmobilaria s. a. de c. v. | Mexico, Teptzotlán | 100.00 | eur | 2,447 | 141 |
| Ibryl Inc. | Cayman Islands, George Town | 100.00 | eur | –10,876 | –7,424 |
| Integracion Aduanera s. a. | Costa Rica, Barrio Tournon | 51.00 | eur | 460 | 12 |
| itg International Transports, Inc. | usa, Chelsea | 100.00 | eur | 400 | 25 |
| Llano Logistics lp | usa, Westerville | 100.00 | eur | 5,031 | 439 |
| Marias Falls Insurance Co. Ltd. | Bermuda, Hamilton | 100.00 | eur | 31,397 | –3,762 |
| Matrix Logistics Services Ltd. | Canada, Toronto | 100.00 | eur | –369 | –3 |
| Mercury Airfreight International Inc. | usa, Avenel | 100.00 | eur | 585 | 64 |
| Mercury Holdings Inc. | usa, Avenel | 100.00 | eur | 241 | 0 |
| mts Holdings llc1) | usa, Weston | 100.00 | eur | 0 | 0 |
| Mail Terminal Services of California, llc (ca) | |||||
| (sfo & lac)1) | usa, Weston | 100.00 | eur | – | – |
| Mail Terminal Services of Illinois, llc (il) (ord)1) | usa, Weston | 100.00 | eur | – | – |
| Mail Terminal Services of New Jersey, llc (nj) (ewr)1) | usa, Weston | 100.00 | eur | – | – |
| Mail Terminal Services, llc (de) Series1) | usa, Weston | 100.00 | eur | – | – |
| Polar Air Cargo Worldwide Inc. | usa, Purchase | 49.00 | eur | 8,863 | 596 |
| Relay Logistics Inc. | Canada, Toronto | 100.00 | eur | 12 | 0 |
| Saturn Integrated Logistics Inc. | Canada, Toronto | 100.00 | eur | 181 | 179 |
| scm Supply Chain Management Inc. | Canada, Toronto | 100.00 | eur | –344 | –699 |
| Sky Courier, Inc. | usa, Sterling | 100.00 | eur | 4,855 | 1,400 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| SmartMail llc4) | usa, Delaware | 100.00 | – | – | |
| South Bay Terminals llc | usa, Westerville | 100.00 | eur | –4,503 | –2,844 |
| Summit Logistics Inc. (Canada) | Canada, Toronto | 100.00 | eur | 11,036 | 1,150 |
| Tafi nor s. a.5) | Uruguay, Montevideo | 100.00 | eur | –26 | 0 |
| Tibbett & Britten Group Canada Inc. | Canada, Toronto | 100.00 | eur | 13,588 | 5 |
| Tibbett & Britten Group North America, llc | usa, Westerville | 99.93 | eur | –21,055 | 4,962 |
| TomAir llc | usa, Dover | 100.00 | eur | 4,824 | –400 |
| Tracker Logistics Inc. | Canada, Toronto | 100.00 | eur | 1,372 | 165 |
| Transcare Supply Chain Management Inc. | Canada, Toronto | 100.00 | eur | 353 | 52 |
| Transguard Insurance Ltd. | Bermuda, Bedford | 100.00 | eur | 653 | 26 |
| Unidock's Assessoria e Logistica de Materiais Ltda. | Brazil, Barueri | 100.00 | eur | 27,674 | 5,907 |
| Vensecar Internacional c. a. sucursal Colombia | Colombia, Bogotá | 100.00 | eur | 225 | 63 |
| Vensecar Internacional, c. a. | Venezuela, Maiquitia | 100.00 | eur | 15,930 | 4,710 |
| Venture Logistics s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 1,875 | 611 |
| Western Distribution Centers Alberta Inc. | Canada, Toronto | 100.00 | eur | 860 | 0 |
| Williams Lea (Brazil) Assessoria Em Solucoes | |||||
| Empresariais Ltda. | Brazil, Rio de Janeiro | 95.96 | eur | 259 | 320 |
| Williams Lea (Canada), Inc. | Canada, Montréal | 95.96 | eur | 222 | 54 |
| Williams Lea Argentina s. a. | Argentina, Buenos Aires | 95.96 | eur | –213 | –106 |
| Williams Lea Holdings, Inc. | usa, Chicago | 95.96 | eur | 25,670 | 0 |
| Williams Lea Inc. | usa, Chicago | 95.96 | eur | 71,720 | 527 |
| Williams Lea México, s. de r. l. de c. v. | Mexico, Mexico City | 95.96 | eur | –269 | –101 |
| Wilmington Air Park, llc | usa, Plantation | 100.00 | eur | –225,417 | –15,844 |
| Zenith Logistics Inc. | Canada, Toronto | 100.00 | eur | 1,711 | –10 |
| Asia Pacific | |||||
| Air Express International (Malaysia) Sdn. Bhd. | Malaysia, Puchong | 100.00 | eur | 1,885 | 141 |
| asg (Australia) Pty. Ltd. | Australia, Tullamarine Victoria | 100.00 | eur | 28 | 0 |
| Asia Overnight (Thailand) Ltd. | Thailand, Bangkok | 48.71 | eur | 498 | 63 |
| Asia-Pacifi c Information Services Sdn. Bhd. | Malaysia, Puchong | 100.00 | eur | 16,305 | 1,400 |
| Beijing Sinotrans Express Co. Ltd. | China, Beijing | 51.67 | eur | –1,912 | –2,172 |
| Blue Dart Aviation Ltd.6) | India, Chennai | 39.71 | eur | 4,486 | –105 |
| Blue Dart Express Ltd. | India, Mumbai | 81.03 | eur | 76,512 | 7,553 |
| Capitol aei Pte. Ltd. | Sri Lanka, Colombo | 70.00 | eur | 330 | –612 |
| Danzas (China) Ltd. | China, Hongkong | 100.00 | eur | 4,433 | 3,085 |
| danzas aei (hk) Ltd.5) | China, Hongkong | 100.00 | eur | 64 | –12 |
| Danzas aei Logistics (Shanghai) Co. Ltd. | China, Shanghai | 100.00 | eur | 3,200 | 472 |
| danzas Freight (India) Pvt Ltd. | India, Mumbai | 100.00 | eur | 67 | 0 |
| danzas Intercontinental Inc. | Philippines, Manila | 40.00 | eur | –1,154 | 0 |
| Danzas Pty. Ltd. | Australia, Melborne | 100.00 | eur | 3,193 | 0 |
| Danzas Zhong Fu Freight Agency Co. Ltd. | China, Shanghai | 49.00 | eur | 61,539 | 4,352 |
| danzasmal Domestic Logistics Services Sdn. Bhd. | Malaysia, Kuala Lumpur | 49.00 | eur | 1,034 | 422 |
| Deutsche Post Global Mail (Australia) Pty. Ltd. | Australia, Mascot | 100.00 | eur | –6,551 | 714 |
| dhl (Chengdu) Service Ltd. | China, Chengdu | 100.00 | eur | 566 | –120 |
| dhl Air Freight Forwarder Sdn. Bhd. | Malaysia, Kuala Lumpur | 48.85 | eur | 1,831 | 300 |
| dhl Asia Pacifi c Shared Services Sdn. Bhd. | Malaysia, Kuala Lumpur | 100.00 | eur | –3,118 | 189 |
| dhl Aviation (Asia Pacifi c) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 1,258 | 0 |
| dhl Aviation (Hong Kong) Ltd. | China, Hongkong | 75.00 | eur | 8,137 | 1,014 |
| dhl Aviation (Philippines), Inc. | Philippines, Makati City | 100.00 | eur | 0 | 15 |
| dhl Aviation Services (Shanghai) Co. Ltd. | China, Shanghai | 100.00 | eur | 4,806 | –258 |
| dhl Danzas Air & Ocean (Cambodia) Ltd. | Cambodia, Phnom Penh | 100.00 | eur | 24 | 0 |
| dhl Exel Logistics (Malaysia) Sdn. Bhd. | Malaysia, Shah Alam & Penang Selangor | 100.00 | eur | 1,920 | 163 |
| dhl Exel Supply Chain (Bangladesh) Pte. Ltd. | Bangladesh, Dhaka | 100.00 | eur | 26 | 51 |
| dhl Exel Supply Chain (Korea) Ltd. | South Korea, Seoul | 100.00 | eur | 2,284 | –974 |
| dhl Exel Supply Chain (Taiwan) Co. Ltd. | Taiwan, Taipeh | 100.00 | eur | 609 | –146 |
| dhl Exel Supply Chain Management Phils., Inc. | Philippines, Manila | 100.00 | eur | 1,061 | 167 |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Exel Supply Chain Phils., Inc. | Philippines, Manila | 100.00 | eur | 1,218 | –924 |
| dhl Express (Australia) Pty. Ltd. | Australia, Sydney | 100.00 | eur | 14,929 | 3,463 |
| dhl Express (Brunei) Sdn. Bhd. | Brunei, Brunei Dar | 90.00 | eur | 463 | 236 |
| dhl Express (Cambodia) Ltd. | Cambodia, Phnom Penh | 100.00 | eur | 192 | 100 |
| dhl Express (Fiji) Ltd. | Fiji, Suva | 100.00 | eur | 473 | 56 |
| dhl Express (Hong Kong) Ltd. | China, Hongkong | 100.00 | eur | 18,961 | 2,609 |
| dhl Express (India) Pte. Ltd. | India, Mumbai | 100.00 | eur | 19,625 | 3,356 |
| dhl Express (Macau) Ltd. | Macau, Macau | 100.00 | eur | 400 | 75 |
| dhl Express (Malaysia) Sdn. Bhd. | Malaysia, Kuala Lumpur | 70.00 | eur | 8,814 | 2,186 |
| dhl Express (New Zealand) Ltd. | New Zealand, Auckland | 100.00 | eur | 4,456 | 1,343 |
| dhl Express (Papua New Guinea) Ltd. | Papua New Guinea, Port Moresby | 100.00 | eur | 323 | –28 |
| dhl Express (Philippines) Cor. | Philippines, Makati City | 100.00 | eur | 5,925 | –926 |
| dhl Express (Singapore) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 121,745 | 927 |
| dhl Express (Taiwan) Corp. | Taiwan, Taipeh | 100.00 | eur | 9,429 | 2,842 |
| dhl Express (Thailand) Ltd. | Thailand, Bangkok | 49.00 | eur | 3,231 | 188 |
| dhl Express International (Thailand) Ltd. | Thailand, Bangkok | 100.00 | eur | 5,418 | 1,157 |
| dhl Express Lda. | East Timor, Dili | 100.00 | eur | 342 | 10 |
| dhl Express Nepal Pvt Ltd. | Nepal, Kathmandu | 100.00 | eur | 507 | 379 |
| dhl Global Forwarding (Philippines), Inc. | Philippines, Manila | 100.00 | eur | 2,169 | 590 |
| dhl Global Forwarding (Australia) Pty. Ltd. | Australia, Tullamarine | 100.00 | eur | 62,123 | 10,792 |
| dhl Global Forwarding (Fiji) Ltd. | Fiji, Lautoka | 100.00 | eur | 300 | 0 |
| dhl Global Forwarding (Hong Kong) Ltd. | China, Hongkong | 100.00 | eur | –67,325 | 3,708 |
| dhl Global Forwarding (Korea) Ltd. | South Korea, Seoul | 100.00 | eur | 11,740 | 2,551 |
| dhl Global Forwarding (Kuwait) Company wll | Kuwait, Safat | 49.00 | eur | 4,549 | 3,317 |
| dhl Global Forwarding (Malaysia) Sdn. Bhd. | Malaysia, Kuala Lumpur | 100.00 | eur | 15,272 | 2,921 |
| dhl Global Forwarding (New Zealand) Ltd. | New Zealand, Auckland | 100.00 | eur | 14,056 | 3,398 |
| dhl Global Forwarding (png) Ltd. | Papua New Guinea, Port Moresby | 100.00 | eur | –88 | 0 |
| dhl Global Forwarding (Singapore) Pte. Ltd. | |||||
| Taiwan Branch | Taiwan, Taipeh | 100.00 | eur | 2,290 | 2,156 |
| dhl Global Forwarding (Singapore) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 57,253 | 19,322 |
| dhl Global Forwarding (Thailand) Ltd. | Thailand, Bangkok | 100.00 | eur | 21,632 | 3,867 |
| dhl Global Forwarding (Vietnam) Corporation | Vietnam, Ho Chi Minh City | 49.00 | eur | 1,476 | 1,283 |
| dhl Global Forwarding Caledonie | New Caledonia, Noumea | 100.00 | eur | 2,923 | 397 |
| dhl Global Forwarding Japan k. k. | Japan, Tokyo | 100.00 | eur | 19,168 | 3,387 |
| dhl Global Forwarding Management | |||||
| (Asia Pacifi c) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 175,159 | 31,777 |
| dhl Global Forwarding Polynesie sarl | French Polynesia, Faaa | 100.00 | eur | 3,511 | 494 |
| dhl Global Mail (Japan) k. k. | Japan, Tokyo | 100.00 | eur | –526 | –124 |
| dhl Global Mail (Singapore) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 401 | 227 |
| dhl Holdings (New Zealand) Ltd. | New Zealand, Auckland | 100.00 | eur | 11,457 | 2,706 |
| dhl Incheon Hub Ltd. (Korea) | South Korea, Incheon | 100.00 | eur | 5,252 | 1,025 |
| dhl International Guinea Ecuatorial SrL. | Guam, Malabo | 100.00 | eur | –216 | 92 |
| dhl International Transportation Co. wll6) | Kuwait, Safat | 0.00 | eur | 141 | 0 |
| dhl isc (Hong Kong) Ltd. | China, Hongkong | 100.00 | eur | 4,064 | 2,659 |
| dhl Japan Inc. | Japan, Tokyo | 100.00 | eur | 47,505 | 4,150 |
| dhl Keells Pte. Ltd. | Sri Lanka, Colombo | 50.00 | eur | 2,645 | 242 |
| dhl Korea Ltd. | South Korea, Seoul | 95.00 | eur | 25,681 | 2,463 |
| dhl Lao Ltd. | Laos, Skihottabong | 100.00 | eur | 334 | 133 |
| dhl Lemuir Logistics Pte. Ltd. | India, Mumbai | 76.00 | eur | 53,120 | 6,943 |
| dhl Logistics (Beijing) Co. Ltd. | China, Beijing | 100.00 | eur | –11,051 | –3,647 |
| dhl Logistics (Cambodia) Ltd. | Cambodia, Phnom Penh | 100.00 | eur | 1,137 | 267 |
| dhl Logistics (China) Co. Ltd. | China, Beijing | 100.00 | eur | 8,941 | 7,367 |
| dhl Pakistan Pte. Ltd. | Pakistan, Karachi | 100.00 | eur | 4,427 | 552 |
| dhl Project & Chartering (China) Ltd. | China, Hongkong | 100.00 | eur | 12 | –1 |
| dhl Properties (M) Sdn. Bhd. | Malaysia, Shah Alam & Penang Selangor | 100.00 | eur | 4,414 | 517 |
| dhl scm k. k. | Japan, Saitama | 100.00 | eur | –642 | –273 |
| dhl Sinotrans Bonded Warehouse (Beijing) Co. Ltd. | China, Beijing | 51.68 | eur | 717 | 381 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Sinotrans International Air Courier Ltd. | China, Beijing | 51.68 | eur | 153,571 | 49,462 |
| dhl Supply Chain (Australia) Pty. Ltd. | Australia, Mascot | 100.00 | eur | 10,180 | 2,776 |
| dhl Supply Chain (Hong Kong) Ltd. | China, Hongkong | 100.00 | eur | 52,243 | 16,912 |
| dhl Supply Chain (Malaysia) Sdn. Bhd. | Malaysia, Shah Alam & Penang Selangor | 100.00 | eur | 5,856 | –130 |
| dhl Supply Chain (New Zealand) Ltd. | New Zealand, Auckland | 100.00 | eur | 23,881 | 2,374 |
| dhl Supply Chain (Vietnam) Ltd. | Vietnam, Ho Chi Minh City | 100.00 | eur | 153 | 307 |
| dhl Supply Chain Ltd. | Japan, Shinagawa | 100.00 | eur | –20,567 | 1,478 |
| dhl Supply Chain Services k. k. | Japan, Shinagawa | 100.00 | eur | 705 | 56 |
| dhl Supply Chain Singapore Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 39,149 | –677 |
| dhl Worldwide Express (Bangladesh) Pte. Ltd. | Bangladesh, Dhaka | 90.00 | eur | 647 | 668 |
| dhl-vnpt Express Ltd. | Vietnam, Ho Chi Minh City | 51.00 | eur | 2,009 | –239 |
| Dongguan DHL Supply Chain Co. Ltd. | China, Dongguan | 100.00 | eur | 310 | 5 |
| Exel (Australia) Pty. Ltd. | Australia, Victoria | 100.00 | eur | 4,546 | 0 |
| Exel Consolidation Services Ltd. | China, Hongkong | 100.00 | eur | 8,804 | –4,103 |
| Exel Distribution (Thailand) Ltd. | Thailand, Nonthaburi | 100.00 | eur | 16,354 | 1,785 |
| Exel Freight Forwarding (Shenzhen) Co. Ltd. | China, Shenzhen | 100.00 | eur | 1,054 | 180 |
| Exel Japan (Finance) Ltd. | Japan, Shinagawa | 100.00 | eur | 9,968 | 170 |
| Exel Logistics (Shanghai) Co. Ltd. | China, Shanghai | 100.00 | eur | –1,514 | –1,951 |
| Exel Logistics far East Ltd. | Thailand, Bangkok | 49.00 | eur | 4,624 | 1,606 |
| Exel Logistics Services (M) Sdn. Bhd. | Malaysia, Shah Alam & Penang Selangor | 100.00 | eur | 24 | 0 |
| Exel Logistics Services Lanka Pte. Ltd. | Sri Lanka, Colombo | 100.00 | eur | 461 | 405 |
| Exel Pakistan Pte. Ltd. | Pakistan, Karachi | 60.00 | eur | 1,092 | 361 |
| Exel Taiwan Logistics Co. Ltd. | Taiwan, Taipeh | 100.00 | eur | –257 | 0 |
| Exel Thailand Ltd.5) | Thailand, Bangkok | 100.00 | eur | 726 | 0 |
| Gori Australia Pty. Ltd. | Australia, Brighton-Le-Sands | 60.00 | eur | 2,529 | 1,389 |
| msas Global Logistics (Far East) Ltd. | China, Hongkong | 100.00 | eur | 1,149 | 6,218 |
| pt. Cargorama Multi Servisindo | Indonesia, Jakarta | 100.00 | eur | 25 | 0 |
| pt. Birotika Semesta6) | Indonesia, Jakarta | 0.00 | eur | 816 | 1,170 |
| pt. Danzas Sarana Perkasa | Indonesia, Jakarta | 100.00 | eur | –211 | 99 |
| pt. dhl Exel Supply Chain Indonesia | Indonesia, Jakarta | 100.00 | eur | –2,622 | –254 |
| pt. dhl Global Forwarding Indonesia | Indonesia, Jakarta | 100.00 | eur | 5,424 | 1,910 |
| Shanghai Danzas Freight Agency Co. Ltd. | China, Shanghai | 100.00 | eur | 975 | 45 |
| Shanghai Quanyi Express Ltd. | China, Shanghai | 51.67 | eur | 1,975 | 142 |
| Shanghai Quanyi Express Company Ltd. | China, Shanghai | 51.67 | eur | 1,863 | 0 |
| Singha Sarn Co. Ltd. | Thailand, Bangkok | 100.00 | eur | –14 | –5 |
| Star Broker (Hong Kong) Ltd. | China, Hongkong | 100.00 | eur | 41 | –1 |
| Tibbett & Britten Asia Pte. Ltd. | Singapore, Singapore | 100.00 | eur | –763 | –22 |
| Trade Clippers Cargo Ltd. | Bangladesh, Dhaka | 85.00 | eur | 94 | 98 |
| Williams Lea Asia Ltd.1) | China, Hongkong | 95.96 | eur | 2,258 | 471 |
| mdf Australia Pty. Ltd. t / a creatis1) | Australia, Sydney | 95.96 | eur | – | – |
| Williams Lea Pty. Ltd.1) | Australia, Sydney | 95.96 | eur | – | – |
| Williams Lea (Beijing) Ltd.1) | China, Beijing | 95.96 | eur | – | – |
| Williams Lea (Hong Kong) Ltd.1) | China, Hongkong | 95.96 | eur | – | – |
| Williams Lea Japan Ltd.1) | Japan, Tokyo | 95.96 | eur | – | – |
| Williams Lea Pte. Ltd.1) | Singapore, Singapore | 95.96 | eur | – | – |
| Williams Lea India Pte. Ltd. | India, New Delhi | 62.85 | eur | 1,636 | 425 |
| Other Regions | |||||
| Buddingtrade 33 Pty. Ltd. | South Africa, Benoni | 100.00 | eur | 2,971 | 512 |
| Danzas Abu Dhabi llc | United Arab Emirates, Abu Dhabi | 49.00 | eur | 3,416 | 1,119 |
| Danzas Bahrain wll | Bahrain, Manama | 40.00 | eur | 2,277 | 1,911 |
| dhl (Ghana) Ltd. | Ghana, Accra | 100.00 | eur | 1,588 | –154 |
| dhl (Israel) Ltd. | Israel, Airport City | 100.00 | eur | 7,656 | 2,079 |
| dhl (Mauritius) Ltd. | Mauritius, Port Louis | 100.00 | eur | 1,238 | 403 |
dhl (Namibia) Pty. Ltd. Namibia, Windhuk 100.00 eur 1,054 469 dhl (Tanzania) Ltd. Tanzania, Daressalam 100.00 eur 871 296
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Air Freight Forwarder (Egypt) wll | Egypt, Cairo | 100.00 | eur | 0 | 0 |
| dhl Aviation (Nigeria) Ltd. | Nigeria, Lagos | 100.00 | eur | 141 | 18 |
| dhl Aviation Pte. Ltd. | Zimbabwe, Harare | 100.00 | eur | 0 | 0 |
| dhl Aviation Pty. Ltd. | South Africa, Johannesburg | 100.00 | eur | 4,067 | 652 |
| dhl Aviation Kenya Ltd. | Kenya, Nairobi | 100.00 | eur | 16 | 0 |
| dhl Aviation Maroc s. a. | Morocco, Casablanca | 100.00 | eur | 1,676 | 722 |
| dhl Aviation Other Regions b. s. c. (c) | Bahrain, Manama | 100.00 | eur | 7,261 | 6,972 |
| dhl Burkina Faso sarl | Burkina Faso, Ouagadougou | 100.00 | eur | 658 | 135 |
| dhl Egypt wll | Egypt, Cairo | 100.00 | eur | 208 | –58 |
| dhl Exel Supply Chain Kenya Ltd. | Kenya, Nairobi | 100.00 | eur | 4,566 | 1,002 |
| dhl Exel Supply Chain Tanzania Ltd. | Tanzania, Daressalam | 100.00 | eur | –113 | 16 |
| dhl Express Maroc s. a. | Morocco, Casablanca | 100.00 | eur | –165 | –158 |
| dhl Global Forwarding & Co. llc | Oman, Muscat | 40.00 | eur | 3,614 | 2,160 |
| dhl Global Forwarding (Angola) – | |||||
| Comércio e Transitários, Ltda. | Angola, Luanda | 99.00 | eur | –2,607 | –3,001 |
| dhl Global Forwarding (Cameroon) | Cameroon, Douala | 62.00 | eur | 0 | 0 |
| dhl Global Forwarding (Kenya) Ltd. | Kenya, Nairobi | 100.00 | eur | 2,041 | 418 |
| dhl Global Forwarding (Uganda) Ltd. | Uganda, Kampala | 100.00 | eur | 284 | 144 |
| dhl Global Forwarding Côte d'Ivoire s. a. | Ivory Coast, Abidjan | 100.00 | eur | 23 | –15 |
| dhl Global Forwarding Gabon s. a. | Gabon, Libreville | 100.00 | eur | –248 | –132 |
| dhl Global Forwarding Lebanon s. a. l | Lebanon, Beirut | 100.00 | eur | 1,298 | 754 |
| dhl Global Forwarding Nigeria Ltd. | Nigeria, Lagos | 100.00 | eur | 848 | 108 |
| dhl Global Forwarding Qatar llc | Qatar, Doha | 49.00 | eur | 262 | 183 |
| dhl Global Forwarding s. a. e. | Egypt, Cairo | 100.00 | eur | 4,285 | 1,768 |
| dhl Global Forwarding sa Pty. Ltd. | South Africa, Boksburg | 74.99 | eur | 18,441 | 1,953 |
| dhl Global Mail ooo | Russia, Moscow | 100.00 | eur | –366 | –398 |
| dhl International (Albania) Ltd. | Albania, Tirana | 100.00 | eur | 829 | 263 |
| dhl International (Algeria) sarl | Algeria, Algiers | 100.00 | eur | 1,583 | 799 |
| dhl International (Bahrain) wll | Bahrain, Manama | 49.00 | eur | 46 | 0 |
| dhl International (Congo) sprl | Congo, Kinshasa | 100.00 | eur | 2,219 | 507 |
| dhl International (Gambia) Ltd. | Gambia, Kanifi ng | 100.00 | eur | 125 | 36 |
| dhl International (Liberia) Ltd. | Liberia, Monrovia | 100.00 | eur | –430 | –83 |
| dhl International Pty. Ltd. | South Africa, Isando | 74.99 | eur | 14,093 | 2,351 |
| dhl International (Pvt) Ltd. | Zimbabwe, Harare | 100.00 | eur | 1,061 | –976 |
| dhl International (sl) Ltd. | Sierra Leone, Freetown | 100.00 | eur | 664 | 100 |
| dhl International (Uganda) Ltd. | Uganda, Kampala | 100.00 | eur | 717 | 156 |
| dhl International Benin sarl | Benin, Cotonou | 100.00 | eur | 564 | 131 |
| dhl International Botswana Pty. Ltd. | Botswana, Gaborone | 100.00 | eur | 158 | 59 |
| dhl International bsc © | Bahrain, Manama | 100.00 | eur | 1,416 | 1,068 |
| dhl International Cameroon sarl | Cameroon, Douala | 100.00 | eur | 1,137 | –258 |
| dhl International Centrafrique sarl | Central African Republic, Bangui | 100.00 | eur | 247 | 54 |
| dhl International Chad sarl | Chad, Ndjamena | 100.00 | eur | –63 | 99 |
| dhl International Congo sarl | Congo, Kinshasa | 100.00 | eur | 3,413 | 1,037 |
| dhl International Côte d'Ivoire sarl | Ivory Coast, Abidjan | 100.00 | eur | 1,026 | 314 |
| dhl International Gabon sarl | Gabon, Libreville | 90.00 | eur | –1,292 | –143 |
| dhl International Guinee sarl | Guinea, Conakry | 100.00 | eur | 685 | 28 |
| dhl International Iran pjsc | Iran, Tehran | 49.00 | eur | 2,727 | 2,103 |
| dhl International Kazakhstan llp | Kazakhstan, Almaty | 100.00 | eur | 2,973 | 1,771 |
| dhl International Ltd. | Malta, Luqa | 100.00 | eur | 342 | –28 |
| dhl International Madagascar s. a. | Madagascar, Antananarivo | 100.00 | eur | 895 | –185 |
| dhl International Malawi Ltd. | Malawi, Blantyre | 100.00 | eur | 388 | 11 |
| dhl International Mali sarl | Mali, Bamako | 100.00 | eur | 476 | 198 |
| dhl International Mauritanie sarl | Mauretania, Tevragh-Zeina Nouakchot | 100.00 | eur | 216 | –63 |
| dhl International Niger sarl | Niger, Niamey | 100.00 | eur | 438 | 35 |
| dhl International Nigeria Ltd. | Nigeria, Lagos | 100.00 | eur | 2,520 | –587 |
| dhl International Reunion sarl | Réunion, Saint Maria | 100.00 | eur | –203 | –382 |
| dhl International Togo sarl | Togo, Lomé | 100.00 | eur | 189 | 119 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl International Zambia Ltd. | Zambia, Lusaka | 100.00 | eur | –716 | –1,159 |
| dhl International zao, Russia | Russia, Moscow | 100.00 | eur | 43,050 | 32,489 |
| dhl International-Sarajevo d. o. o. | Bosnia and Herzegovina, Sarajevo | 100.00 | eur | 526 | –46 |
| dhl Lesotho (Proprietary) Ltd. | Lesotho, Maseru | 100.00 | eur | 360 | 92 |
| dhl Logistics (Kazakhstan) llp | Kazakhstan, Aksai | 100.00 | eur | 1,161 | 681 |
| dhl Logistics Ghana Ltd. | Ghana, Tema | 100.00 | eur | 398 | 452 |
| dhl Logistics Morocco s. a. | Morocco, Casablanca | 100.00 | eur | 39 | –241 |
| dhl Logistics ooo | Russia, Chimki | 100.00 | eur | –951 | –955 |
| dhl Mozambique Lda. | Mozambique, Maputo | 100.00 | eur | 1,855 | –233 |
| dhl Operations bv Jordan Services with Limited Liability |
Jordan, Amman | 100.00 | eur | 246 | 204 |
| dhl Qatar Ltd. | Qatar, Doha | 49.00 | eur | –598 | 0 |
| dhl Regional Services (Indian Ocean) Ltd. | Mauritius, Port Louis | 100.00 | eur | 1 | 0 |
| dhl Regional Services Ltd. | Nigeria, Lagos | 100.00 | eur | 106 | 0 |
| dhl Supply Chain (South Africa) Pty. Ltd. | South Africa, Germiston | 100.00 | eur | –42,192 | –6,284 |
| dhl Swaziland Pty. Ltd. | Swasiland, Mbabane | 100.00 | eur | 254 | 85 |
| dhl Worldwide Express & Company llc | Oman, Ruwi | 70.00 | eur | 317 | 188 |
| dhl Worldwide Express (Abu Dhabi) llc | United Arab Emirates, Abu Dhabi | 49.00 | eur | 57 | 0 |
| dhl Worldwide Express (Dubai) llc | United Arab Emirates, Dubai | 49.00 | eur | 0 | 0 |
| dhl Worldwide Express (Sharjah) llc | United Arab Emirates, Sharjah | 49.00 | eur | 95 | 0 |
| dhl Worldwide Express Cargo llc | United Arab Emirates, Dubai | 49.00 | eur | 57 | 0 |
| dhl Worldwide Express Ethiopia Plc. | Ethiopia, Addis Abeba | 100.00 | eur | 43 | –534 |
| dhl Worldwide Express Kenya Ltd. | Kenya, Nairobi | 56.44 | eur | 3,690 | 330 |
| Document Handling (East Africa) Ltd. | Kenya, Nairobi | 51.00 | eur | 55 | 483 |
| Exel (Nigeria) Ltd. | Nigeria, Lagos | 100.00 | eur | –171 | 0 |
| Exel Contract Logistics Nigeria Ltd. | Nigeria, Ikeja | 100.00 | eur | 791 | 141 |
| Exel Middle East (Fze) | United Arab Emirates, Dubai | 100.00 | eur | 128 | 2,189 |
| Exel Supply Chain Services (South Africa) Pty. Ltd. | South Africa, Johannesburg | 100.00 | eur | 15,666 | –53 |
| f. c. (Flying Cargo) International Transportation Ltd. | Israel, Lod | 100.00 | eur | 11,943 | 2,465 |
| Ghanem Clearing & Forwarding Establishment6) | United Arab Emirates, Abu Dhabi | 0.00 | eur | 0 | 0 |
| Giorgio Gori International Freight Forwards Pty. Ltd. | South Africa, Ferndale | 60.00 | eur | 239 | 92 |
| Hull, Blyth (Angola) Ltd. (Angolan branch)1) | Angola, Luanda | 100.00 | eur | 8,090 | 1,287 |
| Hull Blyth Angola Viagens e Turismo Lda.1) | Angola, Luanda | 100.00 | eur | – | – |
| Kinesis Logistics Pty. Ltd. | South Africa, Germiston | 100.00 | eur | –314 | 0 |
| llc Williams Lea | Russia, Moscow | 96.92 | eur | –611 | –354 |
| Misr Freight sarl | Egypt, Cairo | 100.00 | eur | 335 | –28 |
| Sherkate Haml-oNaghl Sarie dhl Kish | Iran, Tehran | 100.00 | eur | 0 | –7 |
| snas Lebanon sarl | Lebanon, Beirut | 45.00 | eur | 425 | 219 |
| snas Trading and Contracting6) | Saudi Arabia, Riyadh | 0.00 | eur | 0 | 0 |
| ssa Regional Services Pty. Ltd. | South Africa, Johannesburg | 100.00 | eur | 1,039 | 103 |
| Thompson Logistic Services Ltd. | Kenya, Nairobi | 50.25 | eur | –319 | 167 |
| Tibbett & Britten (Tanzania Branch) | Kenya, Nairobi | 100.00 | eur | 187 | 129 |
| Trans Care Fashion sarl (Morocco)5) | Morocco, Casablanca | 100.00 | eur | –528 | 0 |
| Ukhozi Logistics Pty. Ltd. | South Africa, Johannesburg | 100.00 | eur | 97 | 17 |
| Uniauto-Organizacoes Technicas e Industriasis sarl | Angola, Luanda | 98.93 | eur | 14 | 0 |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| 4c Trademark Management Ltd.5) | United Kingdom, London | 52.31 | gbp | 0 | 0 |
| 4cx Hellas s. a.4) | Greece, Attiki | 52.31 | – | – | |
| 4cx Import and Export s. a.4) | Turkey, Istanbul | 52.31 | – | – | |
| Airborne Express (Netherlands) b. v.4) | Netherlands, Schiphol | 100.00 | – | – | |
| Airborne Express i Sigtuna ab4) | Sweden, Stockholm | 100.00 | – | – | |
| Alistair McIntosh Trustee Co. Ltd.4) | United Kingdom, London | 63.33 | – | – | |
| Arbuckle Smith Investments Ltd. (Scotland)5) | United Kingdom, Glasgow | 100.00 | gbp | 651 | 0 |
| Arbuckle, Smith & Company Ltd. | United Kingdom, Glasgow | 100.00 | gbp | 5,298 | 0 |
| asg Leasing hb4) | Sweden, Stockholm | 100.00 | – | – | |
| Bernard Brook Transport (Elland) Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 887 | 0 |
| Beteiligungsgesellschaft Privatstraße gvz Eifeltor GbR | Germany, Grafschaft-Holzweiler | 53.54 | eur | 0 | 0 |
| Brantford International Ltd.5) | United Kingdom, Hounslow | 100.00 | gbp | 0 | 0 |
| Calayan Cargo International (bvi) Ltd.4), 5) | United Kingdom, Tortola | 100.00 | – | – | |
| Cassin Air Transport (Cork) Ltd.4), 5) | Ireland, Dublin | 100.00 | – | – | |
| Cassin International Distribution Ltd.4), 5) | Ireland, Dublin | 100.00 | – | – | |
| Cassin Partners Ltd.4), 5) | Ireland, Dublin | 100.00 | – | – | |
| Changescent Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Danzas Euronet GmbH4) | Germany, Düsseldorf | 100.00 | – | – | |
| Danzas Logistics Ltd.4), 5) | United Kingdom, Staines | 100.00 | – | – | |
| Dartford Securities Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| degemolto Grundstücksverwaltungsgesellschaft mbH & Co. Immobilien-Vermietungs kg4) |
Germany, Meinerzhagen | 100.00 | – | – | |
| Deutsche Post Grundstücks-Vermietungsgesellschaft beta mbH |
Germany, Bonn | 100.00 | eur | 26 | 0 |
| Deutsche Post Immobilienentwicklung Grundstücks gesellschaft mbH & Co. Objekt Weißenhorn kg |
Germany, Bonn | 100.00 | eur | 128 | 26 |
| Deutsche Post Pension e. V.4) | Germany, Bonn | 100.00 | – | – | |
| Deutsche Post Pensions-Treuhand GmbH & Co. kg | Germany, Bonn | 100.00 | eur | 0 | 0 |
| Deutsche Post Verwaltungs Objekt GmbH4) | Germany, Bonn | 100.00 | – | – | |
| dhl Employee Benefi t Fund asbl / vzw4) | Belgium, Diegem | 100.00 | – | – | |
| dhl Exel Supply Chain Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| dhl Global Forwarding Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| dhl Pensions Investment Fund Ltd.4), 5) | United Kingdom, Bedford | 100.00 | – | – | |
| dhl Trustees Ltd.4), 5) | United Kingdom, Bedford | 100.00 | – | – | |
| dhl uk Pensions Trustees Ltd.4) | United Kingdom, Hounslow | 100.00 | – | – | |
| Elan International (Ireland) Ltd.4), 5) | Ireland, Dublin | 100.00 | – | – | |
| Elliott Slone Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Excel Logistics Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Exel (Northern Ireland) Ltd.5) | United Kingdom, Mallusk | 100.00 | gbp | 511 | 0 |
| Exel Express Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Exel Holdings (Russia) Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Exel Logistics (Ireland) Ltd.4), 5) | Ireland, Dublin | 100.00 | – | – | |
| Exel Nominee No 2 Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Exel Sand and Ballast Co. Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 189 | 0 |
| Exel Secretarial Services Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Exel Share Scheme Trustee Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Exel Taskforce Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | –48 | 0 |
| Fancode Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Fashionfl ow Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| forum gelb GmbH | Germany, Bonn | 100.00 | eur | 25 | 8 |
| Guardian Card Systems Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Higgs Air Espana s. a. (d)4) | Spain, Barcelona | 100.00 | – | – | |
| Hi-Tech Logistics Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 639 | 0 |
| Ich-zieh-um.de GmbH | Germany, Bonn | 100.00 | eur | 112 | 0 |
| Industrial & Marine Engineering Co. of Nigeria Ltd.4) | United Kingdom, London | 100.00 | – | – | |
| dhl Systems Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| International Garment Services Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 142 | 0 |
| it4logistics ag2) | Germany, Potsdam | 75.10 | eur | 82 | 16 |
| kxc (exel) gp investment ltd.4) | United Kingdom, Bracknell | 100.00 | – | – | |
| kxc (exel) lp investment ltd.4) | United Kingdom, Bracknell | 100.00 | – | – | |
| Letteralter Ltd.4) | United Kingdom, London | 63.48 | – | – | |
| Mail Service GmbH Hannover | Germany, Hanover | 100.00 | eur | 25 | 4 |
| Mail Service GmbH Köln | Germany, Cologne | 100.00 | eur | 25 | 28 |
| Mercury Airfreight Holdings Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 500 | 0 |
| Mexicoblade Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Millsdale | United Kingdom, Bracknell | 100.00 | gbp | 0 | 40 |
| msas Cassin International Ltd.4), 5) | Ireland, Dublin | 100.00 | – | – | |
| msas Hi-Tech Logistics Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | –112 | 0 |
| msas Project Services Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 0 | 406 |
| National Publishing Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Neptune Logistics Ltd.4), 5) | Ireland, Dublin | 100.00 | – | – | |
| Newsround International Airfreight Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 2 | 0 |
| nfc International Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| nfc Investments Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 1 | 0 |
| Ocean (bfl) Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Ocean Group Share Scheme Trustee Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Oceanair International Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 0 | 1,444 |
| Outrack Credit Ireland Ltd.4), 5) | Ireland, Dublin | 100.00 | – | – | |
| Power Europe Development No. 2 Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Print to Post Ltd.4) | United Kingdom, London | 66.15 | – | – | |
| sci Paris – Le Havre4) | France, Roissy-en-France | 100.00 | – | – | |
| sgs Holding ab4), 5) | Sweden, Stockholm | 100.00 | – | – | |
| Siegfried Vögele Institut (svi) – Internationale | |||||
| Gesellschaft für Dialogmarketing mbH | Germany, Koenigstein | 100.00 | eur | 50 | 18 |
| Springboard Creative Solutions Ltd.4) | United Kingdom, London | 63.48 | – | – | |
| sw Post Beheer b. v.4) | Netherlands, Utrecht | 51.00 | – | – | |
| Tankclean (Ireland) Ltd.4), 5) | Ireland, Dublin | 100.00 | – | – | |
| Tankfreight Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 2 | 0 |
| The Stationery Offi ce Bookshop Ltd.4) | United Kingdom, London | 63.48 | – | – | |
| The Stationery Offi ce Pension Trustees Ltd.4) | United Kingdom, London | 63.48 | – | – | |
| The Stationery Offi ce Trustees Ltd.4) | United Kingdom, London | 63.48 | – | – | |
| Tibbett & Britten (n. i.) Ltd.5) | United Kingdom, Ballyclare | 100.00 | gbp | –5 | 0 |
| Tibbett & Britten Applied Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 0 | 2,387 |
| Tibbett & Britten Automotive Assets Ltd.4) | United Kingdom, Bracknell | 100.00 | – | – | |
| Tibbett & Britten Consumer Group Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Tibbett & Britten Consumer Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 10 | 0 |
| Tibbett & Britten Dairy Logistics Sp. z o.o. | Poland, Warsaw | 100.00 | – | – | |
| Tibbett & Britten Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Tibbett & Britten Pension Trust Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Tibbett & Britten Quest Trustees Ltd. | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Track One Logistics Ltd.5) | United Kingdom, Bracknell | 100.00 | gbp | –92 | 0 |
| Transcare Gulf Logistics International Ltd.4), 5) | United Kingdom, Bedford | 100.00 | – | – | |
| Trucks and Child Safety Ltd.5) | United Kingdom, Bedford | 100.00 | gbp | 100 | 0 |
| tso Content Solutions Ltd.4) | United Kingdom, Norwich | 63.48 | – | – | |
| tss Translink Shipping Services Ltd.4), 5) | Ireland, Dublin | 100.00 | – | – | |
| Unitrans Deutschland Gesellschaft für Terminverkehre mbH4) |
Germany, Düsseldorf | 65.39 | – | – | |
| Vetchlane Ltd.4) | Ireland, Dublin | 100.00 | – | – | |
| vzn Konrad-Adenauer-Platz K. d. ö. R. & Co. kg4) | Germany, Düsseldorf | 100.00 | – | – | |
| Williams Lea (No. 1) Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Williams Lea (us Acquisitions) Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Williams Lea Business Forms Ltd.4) | United Kingdom, London | 95.96 | – | – |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
214
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Williams Lea Communications Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Williams Lea Consulting Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Williams Lea Group Quest Trustees Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Williams Lea Group Trustees Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Williams Lea International Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Williams Lea Research Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| Wombleton | Ireland, Dublin | 100.00 | eur | – | –26 |
| Americas | |||||
| 1012244 Ontario Inc.4) | Canada, Toronto | 100.00 | – | – | |
| 4cx Inc.4) | usa, Wilmington | 52.31 | – | – | |
| Advance Logistics Inc.2), 3) | usa, Westerville | 100.00 | usd | –89 | 0 |
| Arcadian Guernsey Ltd.4) | United Kingdom, St. Peter Port | 99.99 | – | – | |
| Axis Logistics Inc.2), 3) | Canada, Toronto | 100.00 | cad | 3 | 0 |
| Brasexpress, Inc.4) | Cayman Islands, George Town | 100.00 | – | – | |
| Compass Logistics Inc.2), 3) | usa, Westerville | 100.00 | usd | –2,383 | 0 |
| Countrywide Logistics Inc.2), 3) | usa, Westerville | 100.00 | usd | 2,978 | 0 |
| Deutsche Post World Net usa Inc.4) | usa, Washington | 100.00 | – | – | |
| dhl Consumer Services sc México4) | Mexico, Teptzotlán | 100.00 | – | – | |
| dhl Express (Belize) Ltd.4) | Belize, Belize City | 100.00 | – | – | |
| dhl Express Aduanas Venezuela c. a.5) | Venezuela, Caracas | 100.00 | 0 | 0 | |
| dhl Global Forwarding Aduanas Peru s. a.4) | Peru, Callao | 100.00 | – | – | |
| dhl International (Antigua) Ltd.4), 5) | Antigua and Barbuda, St. Johns | 100.00 | – | – | |
| dhl Servicios s. a. de c. v.4) | Mexico, Mexico City | 100.00 | – | – | |
| dhl St. Lucia Ltd.4), 5) | St. Lucia, Castries | 100.00 | – | – | |
| Elite Logistics Inc.2), 3) | usa, Westerville | 100.00 | usd | 1,002 | 0 |
| Exel Global Logistics (Canada) Inc.4) | Canada, St. Laurent | 100.00 | – | – | |
| Fast'n Fresh Logistics Inc.2), 3) | Canada, Toronto | 100.00 | cad | 0 | 0 |
| Galaxy Logistics Inc.2), 3) | usa, Westerville | 100.00 | usd | 15,469 | 0 |
| Harvest Logistics Inc.2), 3) | usa, Westerville | 100.00 | usd | 4,211 | 0 |
| Hyperion Properties Inc.4), 5) | usa, Westerville | 100.00 | – | – | |
| Iceworks Logistics Inc.2), 3) | usa, Westerville | 100.00 | usd | 654 | 0 |
| Matrix Logistics Inc.2), 3) | usa, Westerville | 100.00 | usd | –1,956 | 0 |
| Merchants Dispatch Inc.4), 5) | usa, Westerville | 100.00 | – | – | |
| Merchants Home Delivery Service | |||||
| of Washington Inc.4), 5) | usa, Westerville | 100.00 | – | – | |
| Mission Logistics Inc.2), 3) | Canada, Toronto | 100.00 | cad | 1 | 0 |
| Northstar Logistics Inc.2), 3) | usa, Westerville | 100.00 | usd | –1,278 | 0 |
| Pinnacle Logistics Inc.2), 3) | usa, Westerville | 100.00 | usd | 3,447 | 0 |
| Power Packaging (Geneva) llc2), 3) | usa, Westerville | 100.00 | usd | 59,375 | 0 |
| Power Packaging Inc.4) | usa, Westerville | 100.00 | – | – | |
| Radix Group International Inc.4) | usa, Columbus | 100.00 | – | – | |
| Safe Way Argentina s. a.4) | Argentina, Buenos Aires | 100.00 | – | – | |
| sf Capital Corp.2), 3) | Canada, Toronto | 100.00 | cad | 214 | 0 |
| sia dhl Express Colombia Ltda.4) | Colombia, Bogotá | 100.00 | – | – | |
| Skyhawk Transport Ltd.4) | Canada, Mississauga | 100.00 | – | – | |
| Southlake Financial Services l. p.4) | usa, Westerville | 100.00 | – | – | |
| Spectrum Supply Chain Services Inc.4) | usa, Westerville | 100.00 | – | – | |
| Spectrum Supply Chain Services Partnership l.p.2), 3) | usa, Westerville | 100.00 | usd | –5,046 | 0 |
| sscs Inc.4) | usa, Westerville | 100.00 | – | – | |
| Summit Logistics Inc.2), 3) | usa, Westerville | 99.93 | usd | 5,118 | 0 |
| swo Distribution Centers Ltd.2), 3) | Canada, Toronto | 100.00 | cad | 2 | 0 |
| tbg Freightsmart Inc.2), 3) | usa, Westerville | 100.00 | cad | 5,725 | 0 |
| tbg Keller Texas, Inc.2), 3) | usa, Westerville | 100.00 | usd | 2,654 | 0 |
| tbgc Leasing Ltd.4), 5) | Canada, Toronto | 100.00 | – | – | |
| tbgna gp llc4) | usa, Westerville | 100.00 | – | – | |
| tbgna llc4) | Canada, Toronto | 100.00 | – | – | |
| usc Distribution Services llc4) | usa, Westerville | 100.00 | – | – | |
Other disclosures
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Asia Pacific | |||||
| Concorde Air Logistics Ltd. | India, Mumbai | 80.71 | inr | –43,805 | –24,298 |
| dhl China Ltd. | China, Kowloon Bay | 100.00 | 0 | 0 | |
| dhl Customs Brokerage Corp. | Philippines, Pasay City | 100.00 | php | 1,132 | 35 |
| Exel Logistics Delbros Philippines Inc.4) | Philippines, Manila | 60.00 | – | – | |
| f. x. Coughlin Australia Pty. Ltd.4), 5) | Australia, Mascot | 100.00 | – | – | |
| Skyline Air Logistics Ltd. | India, Mumbai | 99.99 | inr | –36,797 | –12,498 |
| Tibbett & Britten Kontena Nasional Sdn. Bhd.5) | Malaysia, Darul Ehsan | 60.00 | myr | –352 | 0 |
| Watthanothai Co. Ltd.2) | Thailand, Bangkok | 100.00 | tbh | 1,346 | –25 |
| Yamato Dialog & Media Co. Ltd. | Japan, Tokyo | 49.00 | jpy | –629,076 | 3,194 |
| Other Regions | |||||
| Blue Funnel Angola Ltda.4) | Angola, Luanda | 100.00 | – | – | |
| Danzas aei Pty. Ltd.4) | Kenya, Nairobi | 100.00 | – | – | |
| Danzas aei Pty. Ltd.4), 5) | Zimbabwe, Harare | 100.00 | – | – | |
| Danzas aei Intercontinental Ltd.4) | Zambia, Lusaka | 100.00 | – | – | |
| Danzas aei Intercontinental Ltd.4) | Malawi, Blantyre | 100.00 | – | – | |
| Danzas Zambia Ltd.4) | Zambia, Lusaka | 100.00 | – | – | |
| dmw-Expo4) | Russia, Moscow | 66.00 | – | – | |
| Elder Dempster Ltda.4) | Angola, Luanda | 100.00 | – | – | |
| Exel Contract Logistics (sa) Pty. Ltd.4), 5) | South Africa, Elandsfontein | 100.00 | – | – | |
| Exel Logistics (Zambia) Ltd.4) | Zambia, Lusaka | 100.00 | – | – | |
| Exel Network Logistics (South Africa) Pty. Ltd.4) | South Africa, Germiston | 100.00 | – | – | |
| Exel South Africa Logistics Pty. Ltd.4) | South Africa, Germiston | 100.00 | – | – | |
| Fashion Logistics Pty. Ltd.4), 5) | South Africa, Germiston | 100.00 | – | – | |
| Fashion Logistics Pty. Ltd.4), 5) | South Africa, Germiston | 100.00 | – | – | |
| International Supply Chain (sa) Pty. Ltd.4), 5) | South Africa, Germiston | 100.00 | – | – | |
| Palmer Womersley Distributors Pty. Ltd.4), 5) | South Africa, Germiston | 100.00 | – | – | |
| sa Warehousing Services Pty. Ltd.4), 5) | South Africa, Germiston | 100.00 | – | – | |
| sta Nurminen4) | Russia, Moscow | 100.00 | – | – | |
| Storecare Pty. Ltd.4), 5) | South Africa, Germiston | 100.00 | – | – | |
| Synergistic Alliance Investments Pty. Ltd.4) | South Africa, Germiston | 100.00 | – | – | |
| Tibbett & Britten (sa) Pty. Ltd.4), 5) | South Africa, Germiston | 100.00 | – | – | |
| Tibbett & Britten Egypt Ltd.4), 5) | Egypt, Cairo | 50.00 | – | – | |
| Unifast Pty. Ltd.4), 5) | South Africa, Germiston | 100.00 | – | – |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Europe | |||||
| AeroLogic GmbH | Germany, Leipzig | 50.00 | eur | 10,679 | –1,889 |
| Exel Delamode Logistic SrL. | Romania, Bucharest | 50.00 | eur | 2,291 | 1,266 |
| Americas | |||||
| ec Logistica s. a. | Argentina, Buenos Aires | 51.00 | eur | 180 | 98 |
| ev Logistics | Canada, Vancouver | 50.00 | eur | –710 | 1,341 |
| Innogistics llc | usa, Westerville | 49.00 | eur | 371 | 70 |
| LifeConEx llc | usa, Plantation | 50.00 | eur | –1,128 | 121 |
| Asia Pacific | |||||
| Parcel Direct Group Pty. Ltd.1) | Australia, Mascot | 50.00 | eur | 19,602 | –4,279 |
| Couriers Please Pty. Ltd.1) | Australia, Victoria | 50.00 | aud | – | – |
| Express Couriers Australia (sub1) Pty. Ltd.1) | Australia, Mascot | 50.00 | aud | – | – |
| Hills Parcel Direct Pty. Ltd.1) | Australia, Victoria | 50.00 | aud | – | – |
| Northern Kope Parcel Express (sa) Pty. Ltd.1) | Australia, Pymble | 50.00 | aud | – | – |
| Northern Kope Parcel Express Pty. Ltd.1) | Australia, Pymble | 50.00 | aud | – | – |
| Parcel Direct Australia Pty. Ltd.1) | Australia, Queensland | 50.00 | aud | – | – |
| Parcel Overnight Direct Pty. Ltd.1) | Australia, Victoria | 50.00 | aud | – | – |
| Express Couriers Ltd.1) | New Zealand, Wellington | 50.00 | eur | 75,701 | 5,490 |
| Roadstar Transport Ltd.1) | New Zealand, Wellington | 50.00 | eur | – | – |
| Other Regions | |||||
| Bahwan Exel llc | Oman, Muscat | 49.00 | eur | 702 | 4,940 |
| Danzas dv. Yuzhno llc | Russia, Yuzhno-Sakhalinsk | 50.00 | eur | 295 | –225 |
| Exel Saudia llc | Saudi Arabia, Al Khobar | 50.00 | eur | 3,100 | 2,570 |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| Betriebs-Center für Banken ag8) | Germany, Frankfurt / Main | 39.498 | eur | 281,834 | 36,957 |
| Betriebs-Center für Banken Processing GmbH8) | Germany, Frankfurt / Main | 39.498 | eur | 2,932 | 1,598 |
| bhw – Gesellschaft für Wohnungswirtschaft mbH & Co. Immobilienverwaltung kg8) |
Germany, Hameln | 39.498 | eur | 92,245 | 4,876 |
| bhw – Gesellschaft für Wohnungswirtschaft mbH8) | Germany, Hameln | 39.498 | eur | 974,950 | –5,656 |
| bhw Bausparkasse ag8) | Germany, Hameln | 39.498 | eur | 1,436,613 | –5,395 |
| bhw Gesellschaft für Vorsorge mbH8) | Germany, Hameln | 39.498 | eur | 236,704 | 2,065 |
| bhw Holding Aktiengesellschaft8) | Germany, Berlin | 39.498 | eur | 805,395 | –27,918 |
| bhw Immobilien GmbH8) | Germany, Hameln | 39.498 | eur | 2,475 | –203 |
| Cargo Center Sweden ab | Sweden, Stockholm | 50.00 | sek | 17,974 | –17,586 |
| Deutsche Fonds Management GmbH & Co. dcm Renditefonds 15 kg |
Germany, Munich | 23.20 | eur | 0 | 0 |
| Deutsche Postbank ag8) | Germany, Bonn | 39.498 | eur | 43,364 | 593 |
| Deutsche Postbank Finance Center Objekt sarl8) | Luxembourg, Munsbach | 35.548 | eur | 2,281 | 917 |
| Deutsche Postbank Financial Services GmbH8) | Germany, Frankfurt / Main | 39.498 | eur | 4,805 | –34 |
| Deutsche Postbank International s. a.8) | Luxembourg, Munsbach | 39.498 | eur | 912,055 | 102,938 |
| Deutsche Postbank Vermögens-Management s. a.8) | Luxembourg, Munsbach | 39.498 | eur | 28,420 | 10,570 |
| dpbi Immobilien s. c. a. (KGaA)8) | Luxembourg, Munsbach | 3.952 | eur | 348 | 120 |
| dsl Portfolio GmbH & Co. kg8) | Germany, Bonn | 39.498 | eur | –1 | –15 |
| dsl Holding ag i. A.8) | Germany, Bonn | 39.498 | eur | 57,042 | 2,342 |
| dsl Portfolio Verwaltungs GmbH8) | Germany, Bonn | 39.498 | eur | 16,843 | 964 |
| pb Consumer 2008-1 GmbH6), 8) | Germany, Frankfurt / Main | 0 | eur | –13,958 | 184 |
| pb Factoring GmbH8) | Germany, Bonn | 39.498 | eur | 16,561 | 1,075 |
| Group Equity Name Headquarters equity share % Currency thousands pb Firmenkunden ag8) Germany, Bonn 39.498 eur 2,023 pb Spezial-Investmentaktiengesellschaft mit Teilgesellschaftsvermögen8) Germany, Frankfurt / Main 39.498 eur 300 Postbank Beteiligungen GmbH8) Germany, Bonn 39.498 eur 325 |
Net income thousands 697 0 300 200 1,288 –21,676 |
|---|---|
| Postbank Direkt GmbH 8) Germany, Leipzig 39.50 eur 21,060 |
|
| Postbank Filialvertrieb ag8) Germany, Bonn 39.498 eur –847 |
|
| Postbank Finanzberatung ag8) Germany, Hameln 39.498 eur 75,082 |
|
| Postbank Immobilien und Baumanagement | |
| GmbH & Co. Objekt Leipzig kg8) Germany, Bonn 35.548 eur –8,493 |
3,724 |
| Postbank Immobilien und Baumanagement GmbH8) Germany, Bonn 39.498 eur 18,874 |
0 |
| Postbank Leasing GmbH8) Germany, Bonn 39.498 eur 5,111 |
–183 |
| Postbank Support GmbH8) Germany, Cologne 39.498 eur 751 |
–9 |
| Postbank Systems ag8) Germany, Bonn 39.498 eur 162,047 |
11,932 |
| Postbank Versicherungsvermittlung GmbH8) Germany, Bonn 39.498 eur 25 |
0 |
| Unipost Servicios Generales s. l. Spain, Barcelona 37.63 eur 18,160 |
2,504 |
| vöb-zvd Bank für Zahlungsverkehrsdienstleistungen | |
| GmbH8) Germany, Bonn 29.624 eur 12,021 |
3,129 |
| Americas | |
| Deutsche Postbank Funding llc i8) usa, Wilmington 39.498 eur 25 |
17 |
| Deutsche Postbank Funding llc ii8) usa, Wilmington 39.498 eur 8 |
8 |
| Deutsche Postbank Funding llc iii8) usa, Wilmington 39.498 eur 29 |
6 |
| Deutsche Postbank Funding llc iv8) usa, Wilmington 39.498 eur 67 |
19 |
| Deutsche Postbank Funding Trust I8) usa, Wilmington 39.498 eur 1 |
0 |
| Deutsche Postbank Funding Trust ii8) usa, Wilmington 39.498 eur 1 |
0 |
| Deutsche Postbank Funding Trust iii8) usa, Wilmington 39.498 eur 1 |
0 |
| Deutsche Postbank Funding Trust iv8) usa, Wilmington 39.498 eur 57 |
3 |
| pb (usa) Holdings, Inc.1), 8) usa, Wilmington 39.498 eur 390,781 |
–45,926 |
| pb Realty Corporation1) usa, New York 39.498 eur – |
– |
| pb Capital Corporation1) usa, Wilmington 39.498 eur – |
– |
| pb Finance (Delaware), Inc.1) usa, Wilmington 39.498 eur – |
– |
| pbc Carnegie llc1) usa, Wilmington 39.498 eur – |
– |
| Asia Pacific | |
| Air Hong Kong Ltd.2) Hongkong, Hongkong 40.00 hkd –268,446 |
–2,228,426 |
| Deutsche Postbank Home Finance Ltd.8) India, New Delhi 39.498 eur 66,509 |
8,833 |
| Tasman Cargo Airlines Pty. Ltd. Australia, Sydney 49.00 aud 5,822 |
217 |
| Other Regions | |
| Danzas aei Emirates lcc (Dubai) United Arab Emirates, Dubai 40.00 aed 167,626 |
53,834 |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| Aerologic Management GmbH | Germany, Frankfurt / Main | 50.00 | eur | 0 | 0 |
| Birkart sgs Poland Sp. z o. o.4) | Poland, Lodz | 50.00 | – | – | |
| ltts Service Distribution Verwaltungs GmbH4) | Germany, Essen | 50.00 | – | – | |
| Malto Grundstücks-Verwaltungsgesellschaft mbH & Co. kg4) |
Germany, Gruenwald | 50.00 | – | – | |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| Airmail Center Frankfurt GmbH4) | Germany, Frankfurt / Main | 20.00 | – | – | |
| Automotive Logistics (uk) Ltd.4) | United Kingdom, Bracknell | 50.00 | – | – | |
| Balsa Grundstücksverwaltungsgesellschaft mbH & Co. | |||||
| Vermietungs kg4), 7) | Germany, Mainz | 24.00 | – | – | |
| bhw Direktservice GmbH2) | Germany, Hameln | 39.50 | eur | 2,364 | 864 |
| bhw Eurofi nance b. v.4) | Netherlands, Amsterdam | 39.50 | – | – | |
| bhw Financial S. r. l.2) | Italy, Verona | 39.50 | eur | 1 | 0 |
| bhw Invest sarl2) | Luxembourg, Luxembourg | 39.50 | eur | 39 | 5 |
| Bike-Logistik GmbH Gesellschaft | |||||
| für Zweiradtransporte4) | Germany, Nuremberg | 25.00 | – | – | |
| Cabochon Grundstücksverwaltungsgesellschaft | |||||
| mbh & Co. Vermietungs kg4), 7) | Germany, Mainz | 24.00 | – | – | |
| Chris Fowler International Ltd.4) | United Kingdom, London | 95.96 | – | – | |
| creda Objektanlage- u. Verwaltungsgesellschaft mbH2) | Germany, Bonn | 39.50 | eur | 1,000 | 0 |
| dcm GmbH & Co. Vermögensaufbau Fonds 2 k4) | Germany, Munich | 23.81 | – | – | |
| Deutsche Fonds Management GmbH & Co. dcm Renditefonds 18 kg |
Germany, Munich | 24.94 | eur | 0 | 0 |
| Diorit Grundstücksverwaltungsgesellschaft mbH & Co. Vermietungs kg4), 7) |
Germany, Mainz | 24.00 | – | – | |
| dsf Deutsche System Finanzplan Gesellschaft | |||||
| für Finanzdienstvermittlung mbH2) | Germany, Bonn | 39.50 | eur | 363 | 6 |
| dvd Gesellschaft für dv-gestützte Dienstleistungen | |||||
| mbH & Co. KG4) | Germany, Cologne | 20.14 | – | – | |
| easyhyp GmbH4) | Germany, Hameln | 39.50 | – | – | |
| European epc Competence Center GmbH | Germany, Cologne | 30.00 | eur | 206 | 7 |
| expo Logistics ood4) | Bulgaria, Sofi a | 50.00 | – | – | |
| Expo-Dan4) | Ukraine, Kiev | 50.00 | – | – | |
| Expo-Sped Sp. z o. o.4) | Poland, Warsaw | 50.00 | – | – | |
| Fünfte sab Treuhand und Verwaltung GmbH & Co. Suhl "Rimbach Zentrum" kg4) |
Germany, Suhl | 29.22 | – | – | |
| Gardermoen Perishable Center as4) | Norway, Gardermoen | 33.33 | – | – | |
| Humit Grundstücksverwaltungsgesellschaft mbH & Co. Vermietungs kg4), 7) |
Germany, Mainz | 24.00 | – | – | |
| Iphigenie Verwaltungs GmbH4) | Germany, Bonn | 39.50 | – | – | |
| Jurte Grundstücksverwaltungsges mbH & Co. | |||||
| Vermietungs kg Kattun Grundstücksverwaltungsgesellschaft mbH & Co. |
Germany, Mainz | 24.00 | eur | 0 | 0 |
| Vermietungs kg4), 7) | Germany, Mainz | 24.01 | – | – | |
| Maxser Holding b. v.4) | Netherlands, Maastricht | 30.00 | – | – | |
| pb EuroTurks Finanzdienstleistungen GmbH4) | Germany, Bonn | 39.50 | – | – | |
| pb Sechste Beteiligungen GmbH 8) | Germany, Frankfurt / Main | 39.50 | eur | 0 | 0 |
| Postbank p. o. s. Transact GmbH4) | Germany, Eschborn | 39.50 | – | – | |
| Postbank Vertriebsakademie GmbH4) | Germany, Hameln | 39.50 | – | – |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| profresh Systemlogistik GmbH4) | Germany, Hamburg | 33.33 | – | – | |
| ralos Verwaltung GmbH & Co. Vermietungs kg2) | Germany, Munich | 37.13 | eur | –2 | 0 |
| sab Real Estate Verwaltungs GmbH4) | Germany, Bonn | 39.50 | – | – | |
| Unipost s. a.4) | Spain, Barcelona | 37.36 | – | – | |
| Americas | |||||
| 2650 Virginia Avenue nw lcc4) | usa, Dover | 39.50 | – | – | |
| bits Ltd. | Bermuda, Hamilton | 40.00 | eur | 696 | –239 |
| dhl International (Cayman) Ltd. | Cayman Islands, George Town | 40.00 | eur | 837 | 172 |
| Diamond Logistics4) | usa, Wilmington | 50.00 | – | – | |
| Inversiones 3340, c. a.4) | Venezuela, Caracas | 49.00 | – | – | |
| Miami mei, llc4) | usa, New York | 39.50 | – | – | |
| pb Hollywood ii Lofts, llc4) | usa, Dover | 39.50 | – | – | |
| Wilmington Commerce Park Partnership3) | usa, Plantation | 50.00 | usd | 4,342 | 2,175 |
| Asia Pacific | |||||
| bhw Financial Consultants Ltd.4) | India, Delhi | 39.50 | – | – | |
| Macxel Pte. Ltd. | Singapore, Singapore | 50.00 | sgd | 0 | 0 |
| Übrige Regionen | |||||
| Danzas aei Int. (Mauritius) Ltd.4) | Mauritius, Port Louis | 35.00 | – | – | |
| dhl Yemen Company Ltd. (Express Courier)4) | Yemen, Sanaa | 49.00 | – | – | |
| Drakensberg Logistics Pty. Ltd.4) | South Africa, Germiston | 50.00 | – | – | |
Reported ias data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2008. 3) Local gaap. 4) Data not available. 5) Dormant. 6) sic 12 entity (spe). 7) Voting rights. 8) Preliminary.
To the best of our knowledge, and in accordance with the applicable accounting principles, the consolidated fi nancial statements give a true and fair view of the assets, liabilities, fi nancial position and profi t or loss of the Group, and the management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.
Bonn, 19 February 2010 Deutsche Post AG Th e Board of Management
Bruce Edwards Lawrence Rosen Hermann Ude
Dr Frank Appel Ken Allen Jürgen Gerdes Walter Scheurle
We audited the consolidated fi nancial statements prepared by Deutsche Post AG, Bonn, comprising the income statement and the statement of comprehensive income, the balance sheet, the cash fl ow statement, the statement of changes in equity and the notes to the consolidated fi nancial statements, together with the group management report for the business year from 1 January to 31 December 2009. Th e preparation of the consolidated fi nancial statements and the group management report in accordance with IFRS s, as adopted by the EU, and the additional requirements of German commercial law pursuant to Section 315 a (1) HGB, ("Handelsgesetzbuch"; German Commercial Code) and supplementary provisions of the Articles of Incorporation are the responsibility of the parent Company's Board of Management. Our responsibility is to express an opinion on the consolidated fi nancial statements and on the group management report based on our audit.
We conducted our audit of the consolidated fi nancial statements in accordance with Section 317 HGB and German generally accepted standards for the audit of fi nancial statements promulgated by the Institut der Wirtschaft sprüfer (Institute of Public Auditors in Germany) (IDW), and additionally observed the International Standards on Auditing (ISA). Th ose standards require that we plan and perform the audit such that misstatements materially aff ecting the presentation of the net assets, fi nancial position and results of operations in the consolidated fi nancial statements in accordance with the applicable fi nancial reporting framework and in the group management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account in the determination of audit procedures. Th e eff ectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the consolidated fi nancial statements and the group management report are examined primarily on a test basis within the framework of the audit. Th e audit includes assessing the annual fi nancial statements of those entities included in consolidation, the determination of the entities to be included in consolidation, the accounting and consolidation principles used and signifi cant estimates made by the Company's Board of Management as well as evaluating the overall presentation of the consolidated fi nan cial statements and the group management report. We believe that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion based on the fi ndings of our audit, the consolidated fi nancial statements comply with the IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315 a (1) HGB and supplementary provisions of the Articles of Incorporation and give a true and fair view of the net assets, fi nancial position and results of operations of the Group in accordance with these requirements. Th e group management report is consistent with the consolidated fi nancial statements and as a whole provides a suitable view of the Group's position and suitably presents the opportunities and risks of future development.
Düsseldorf, 19 February 2010
PricewaterhouseCoopers Aktiengesellschaft (German Stock Corporation) Wirtschaft sprüfungsgesellschaft
| Klaus-Dieter Ruske | Dietmar Prümm |
|---|---|
| Wirtschaft sprüfer | Wirtschaft sprüfer |
| (German Public Auditor) | (German Public Auditor) |
GoTeach is the name of our programme for better education and more equal educational opportunities. Education is the foundation that society needs to move forward. That's why we promote and breathe life into initiatives that help people advance themselves and broaden their skills. They learn to act responsibly, to develop themselves and improve their chances of getting a job. We are committed to a number of initiatives at schools, universities and to vocational training. As founding partner of Teach First Deutschland, for instance, we are putting our full support behind the education of less privileged children and young people.
More information is available at www.dp-dhl.com / en / responsibility.html
Our aim: In the interest of children and young people as well as our own future as one of the largest employers in the world, we want to reinforce and build upon our commit ment to education.
Our approach: Beyond our commitment to Teach First Deutschland, the GoTeach programme offers our employees the oppor tunity to get involved in education and supports selected global initiatives.
| INDEX | 223 |
|---|---|
| 223 | |
| GLOSSARY | 224 |
| 224 | |
| GRAPHS AND TABLES | 225 |
| 225 | |
| CONTACTS | 226 |
| 226 | |
| IV | |
| MULTI-YEAR REVIEW | |
| IV | |
| EVENTS | VI |
| adr programme 30 |
|---|
| Advertising mail 51 |
| Air freight 23, 61 ff., 94 |
| Annual General Meeting 17 ff., 35, 102 ff., 110, 160 |
| Article of Association 17 ff., 121, 220 |
| Auditor's report 220 |
| Authorised capital 18, 160 |
| Balance sheet 42 f., 127, 136, 143 ff., 152 ff. |
|---|
| Board of Management |
| 7 ff., 16 ff., 32, 35, 83 f., 88, 91, 101 ff., 106 f., 110 ff., 189 ff., 219 |
| Board of Management remuneration 102, 113 ff., 141, 189 f., 192 ff. |
| Bonds 36, 38, 170 |
| Brands 16, 55, 66, 81 f., 145, 152 |
| Capital expenditure 39 ff., 96 f. |
|---|
| Cash fl ow 41 f., 45, 173 f., 181 f. |
| Cash fl ow statement 41, 128, 173 f. |
| Change in control 19, 115 f. |
| Consolidated net profi t/loss 32, 35, 125, 126, 129, 151 |
| Consolidated revenue 33 |
| Contingent capital 18, 160 |
| Continuing operations 33, 125 |
| Contract logistics 15, 23, 41, 68 f., 94, 97, 145 |
| Corporate governance 16, 19, 99 ff., 110 ff., 195 |
| Cost of capital 27, 153 |
| Credit lines 36, 174 |
| Credit rating 35, 37, 96 |
| Declaration of Conformity 102, 104, 110, 195 |
|---|
| Dialogue Marketing 15, 47, 51, 81, 145 |
| Discontinued operations 33, 35, 145, 151, 173 |
| Dividend 28, 31 f., 35, 104, 151, 162 |
| Dividend 28, 31, 35, 151, 162 |
| Earnings per share 28, 32, 35, 125, 151 |
|---|
| ebit after asset charge 27, 144 |
| Equity ratio 44, 160 |
| express 15, 40, 53 ff., 71, 81, 93 f., 95 ff., 130, 145 |
| F | |
|---|---|
| First Choice 26, 57, 63, 68, 88, 97 | |
| Free fl oat 30, 160 | |
| Freight 15, 40, 61 ff., 96, 145 | |
| Freight forwarding business 64, 94 |
| Global Business Services 15, 145 |
|---|
| Global economy 20 ff., 92 f., 95 |
| Global Forwarding 15, 40, 61 ff., 94, 96, 145, 189 |
| global forwarding, freight |
| 15, 26, 40, 61 ff., 72 f., 81, 88, 96, 98, 130, 145 |
| Global Mail 15, 48, 52, 81, 145 |
| GoGreen 26, 49, 53, 68, 76 f., 89, 96, 111 |
| GoHelp 26, 78, 111 |
| GoTeach 26, 78, 111 |
| Guarantees 36 |
| Illness rate 72 |
|---|
| Income statement 125, 136 ff., 147 |
| IndEx programme 31, 32 |
| Investments 131 ff., 139, 145, 149, 155, 196 ff. |
| Investments |
| 31, 32, 38, 39 ff., 56, 60, 77, 88, 96, 113, 147, 173 f. |
L
I
| Letters of comfort 35, 36 |
|---|
| Liquidity management 36, 174 |
| Living Responsibility 76 |
| mail 15, 40, 46 ff., 71, 81, 92, 95 f., 98, 130, 145 |
|---|
| Mail Communication 15, 46, 50, 81, 92, 145 |
| Mandates 108 f. |
| Market shares 46 ff., 53 ff., 61 ff., 66 ff. |
| Market volumes 23 |
| Ocean freight 15, 23, 61 ff., 94, 97 |
|---|
| Oil price 21, 34, 36, 92, 148 |
| Operating cash fl ow 35, 41, 45,65, 70 |
| Opportunities 83 ff., 97 ff. |
| Outlook 92 ff. |
| Parcel Germany 15, 47, 51, 81, 96, 145 |
|---|
| Pension Service 15, 46, 81, 145 |
| Press Services 15, 47, 51, 81, 145 |
Quality 48 ff., 56 f., 62 f., 68
| Rating 35, 37, 96 |
|---|
| Regulation 24, 85 f., 188 f. |
| Responsibility statement 219 |
| Retail outlets 40, 46, 49, 51, 145 |
| Return on sales 32, 45, 52, 70 |
| Revenue 32, 33, 45, 50 ff., 58 ff., 64 f., 69 f. |
| Risk management 83 ff., 174, 177 |
| Road transport 23, 62 f., 76 f. |
| Roadmap to Value 31, 37 |
| Segment reporting 130, 145 f. |
|---|
| Share capital 17 ff., 160, 194 |
| Share price 29 f. |
| Shareholder structure 30 |
| Staff costs 34, 71, 125, 137, 141, 148 |
| Strategy 2015 25 f., 81, 101 |
| Supervisory Board |
| 17 ff., 101 ff., 105, 109, 110 ff., 121 f., 192 ff. |
| Supervisory Board committees 102 f., 105, 113 |
| Supervisory Board remuneration 121 f., 194 |
| supply chain |
| 15, 26, 39, 41, 66 ff., 72, 81, 88, 94, 96, 98, 130, 145 |
Trade volumes 22 f. Training 73
| wacc 27 |
|---|
| Wage agreement 72 |
| Williams Lea 15 f., 41, 66 ff., 81, 95 f., 98, 145, 149, 151, 153 |
| Working capital 27, 31, 41, 52, 60, 65, 70, 173 |
Sealed, reusable metal box for carrying goods by ship or rail.
Involves complex logistics and logistics-related services along the value chain that are performed by a contract logistics service provider. Long-term contracts allow services to be tailored to a particular industry and customer.
All international mail.
Involves the clearing of goods through customs barriers for importers and exporters, which includes the preparation of documents and/or electronic submissions as well as the calculation of taxes, duties and excises on behalf of the client.
Delivery of shipments on a specifi ed day.
New unit that brings together the Group's existing innovation drivers – including the dhl Innovation Centre – develops innovative solutions and promotes cross-divisional co-operation.
Market-orientated activities which draw on direct communications to selectively reach target groups through a personal, individualised approach and to enter into dialogue.
Process fl ows in the sales channel from producers via wholesalers / retailers to consumers.
Legal framework for the postal markets in the member states of the European Union.
In accordance with the German postal act, Deutsche Post ag had the exclusive licence until the end of 2007 to commercially transport certain items. The exclusive licence expired with effect from 1 January 2008.
National regulator for electricity, gas, telecommunications, post and railway.
Group-wide programme aimed at improving service quality and enhancing customer focus.
Shipments which completely fi ll a container.
Collection centre for the consolidation of fl ows of goods in one direction.
Customer relationship management organisation for the Group's largest and most important global clients.
Collection centre for the transhipment and consolidation of fl ows of goods.
The procurement of goods and their transport from the place of origin/manufacture to the production line.
Transport chain integrating different modes of transport, often combining road and rail.
International Air Transport Association (iata) International trade body for commercial air transport.
Independent agent that puts together the most effective and economical complete logistics package for customers and co-ordinates the different service providers along the complete supply chain.
Complete capacity of truck is utilised from sender to receiver.
Loads that will not fi ll a container by themselves and are therefore consolidated for ocean transport.
Shipment that is smaller than a full truckload that is consolidated with other senders and/or receivers into one load for transport.
Worldwide Medical Express. Express service using a modular packaging system that facilitates the delivery of temperature-sensitive goods.
The subcontracting of tasks to external service providers.
Parcel machine where parcels and small packets can be deposited and collected around the clock.
Postbox for franked parcels and small packets ( maximum dimensions: 50 × 40 × 30 cm).
Postal retail outlets operated primarily by merchants in the retail sector who offer postal services in addition to the core businesses.
Shipment that does not constitute a full truckload but is transported from point of departure to destination without transhipment.
The purpose of the German postal act, which took effect on 1 January 1998, is to promote postal competition through regulation and ensure the nationwide provision of appropriate and suffi cient postal services. It includes regulations on licensing, price control and the universal service.
Identity check of the recipient using one of three pre selected methods: by the retail outlet, by the mail carrier or through signatures on original documents.
A press product of which more than 30 % consists of journalistic reporting.
Procedure whereby the Federal Network Agency approves prices for certain mail products. The agency approves prices on the basis of parameters it stipulates in advance, which set the average changes in these prices within baskets of services defi ned by the agency.
Goods are picked up from the end user at variable addresses, transported to the pre-defi ned repair vendor, collected after repair and returned to the end user.
Same-day delivery of shipments.
A press product of which no more than 30 % consists of journalistic reporting.
Letter measuring max. 235 × 125 × 5 mm and weighing up to 20 g.
A series of connected resources and processes from sourcing materials to delivering goods to consumers.
Twenty-foot equivalent unit. Standardised container unit measuring 20 feet in length (1 foot = approximately 30 cm).
Shipments in which the day or time of delivery has been specifi ed or guaranteed.
A forum that unites manufacturers, logistics providers, freight carriers, law enforcement authorities and other stakeholders with the common aim of reducing losses from international supply chains.
| 01 | Selected key fi gures (continuing operations) | I |
|---|---|---|
| 02 | Corporate Structure | II |
| 03 | Target-performance comparison | III |
| 04 | Multi-year review | IV |
| 05 | Events | VI |
| a.01 Organisational structure of Deutsche Post DHL 15 | |
|---|---|
| a.02 Group structure from different perspectives | 16 |
| a.03 Global economy: growth indicators for 2009 | 20 |
| a.04 Brent Crude spot price and euro / us dollar exchange rate, 2009 |
21 |
| a.05 Trade volumes: compound annual growth rate 2008 – 2009 |
22 |
| a.06 Major trade fl ows: volumes 2009 | 23 |
| a.07 Market volumes | 23 |
| a.08 Calculating eac | 27 |
| a.09 Calculating net asset base | 27 |
| a.10 ebit after asset charge (eac) | 27 |
| a.11 Deutsche Post shares, multi-year review | 28 |
|---|---|
| a.12 Peer group comparison: closing price on 30 December |
28 |
| a.13 Share price performance | 29 |
| a.14 Candlestick graph / 30-day moving average | 29 |
| a.15 Shareholder structure | 30 |
| a.16 Progress on the Roadmap to Value | 31 |
| a.17 Selected key indicators for results of operations (continuing operations) |
32 |
|---|---|
| a.18 Consolidated revenue for continuing operations |
33 |
| a.19 Consolidated ebit for continuing operations | 34 |
| a.20 Total dividend and dividend per no-par value share |
35 |
| a.21 Rating agencies' ratings | 37 |
| a.22 Financial liabilities | 38 |
| a.23 Operating lease obligations by asset class | 38 |
| a.24 Investments by region | 39 |
| a.25 Capex and depreciation, full year | 39 |
| a.26 Capex and depreciation, q 4 | 39 |
| a.27 Operating cash fl ow by division, 2009 | 41 | |
|---|---|---|
| a.31 Key fi gures by operating division | |||||
|---|---|---|---|---|---|
| a.32 Domestic mail communication market, 2009 | 46 | ||||
| a.33 Domestic dialogue marketing market, 2009 | 47 | ||||
| a.34 Domestic press services market, 2009 | 47 | ||||
| a.35 Domestic parcel market, 2009 | 47 | ||||
| a.36 Cross-border mail market, 2009 (outbound) | 48 | ||||
| a.37 Mail Communication: volumes | 50 | ||||
| a.38 Dialogue Marketing: volumes | 51 | ||||
| a.39 Parcel Germany: volumes | 51 |
a.40 Mail International: volumes 52
| a.41 American international express market, 2008: top 4 |
54 |
|---|---|
| a.42 European international express market, 2008: top 5 |
55 |
| a.43 Asia Pacifi c international express market, 2008: top 4 |
55 |
| a.44 International express market in the eemea region, 2008: top 5 |
56 |
| a.45 express: revenue by product | 59 |
| a.46 express: volumes by product | 59 |
| a.47 Air freight market, 2008: top 5 | 61 |
|---|---|
| a.48 Ocean freight market, 2008: top 5 | 62 |
| a.49 European road transport market, 2008: top 5 | 62 |
| a.50 Global Forwarding: revenue | 64 |
| a.51 Global Forwarding: volumes | 64 |
| a.52 Contract logistics market, 2008: top 7 | 68 |
|---|---|
| a.53 supply chain, 2009: revenue by region | 69 |
| a.54 supply chain, 2009: revenue by sector | 70 |
| a.55 Number of employees (continuing operations) |
71 |
|---|---|
| a.56 Employees by region, 2009 | 72 |
| a.57 Illness rate | 72 |
| a.58 Occupational safety | 73 |
| a.59 Traineeships | 73 |
| a.60 Gender distribution in top management | 74 |
| a.61 Work-life balance | 75 |
| a.62 Idea management | 75 |
| a.63 co2 emissions, 2009 | 76 |
| a.64 Procurement expenses, 2009 | 79 |
| a.65 Brands and business units | 81 |
| a.66 Opportunity and risk management process | 83 | |
|---|---|---|
| a.67 Global economy: growth forecasts | 92 | |
|---|---|---|
| b.01 Members of the Supervisory Board | 118 |
|---|---|
| b.02 Committees of the Supervisory Board | 118 |
| b.03 Mandates held by the Board of Management 118 | |
| b.04 Mandates held by the Supervisory Board | 118 |
| b.05 Remuneration of the Group Board | ||
|---|---|---|
| of Management, 2009: cash components | 117 | |
| b.06 Remuneration of the Group Board of Management, 2009: components with long-term incentive effect |
118 | |
| b.07 Remuneration of the Group Board of Management, 2008: cash components |
118 | |
| b.08 Remuneration of the Group Board of Management, 2008: components with long-term incentive effect |
118 | |
| b.09 Individual pension commitments under the previous system in fi nancial year 2009 |
119 | |
| b.10 Individual pension commitments under the previous system in 2008 |
119 | |
| b.11 Individual pension commitments under the new system in fi nancial year 2009 |
120 | |
| b.12 Individual pension commitments under the new system in 2008 |
121 | |
| b.13 Remuneration paid to individual Supervisory Board members |
122 | |
| C | Consolidated Financial Statements |
| c.01 Income Statement | 125 |
|---|---|
| c.02 Statement of Comprehensive income | 126 |
| c.03 Balance Sheet | 127 |
| c.04 Cash Flow Statement | 128 |
| c.05 Statement of Changes in Equity | 129 |
| c.06 Segment reporting | 130 |
Tel.: +49 (0) 228 182-6 36 36 Fax: +49 (0) 228 182-6 31 99 e-mail: ir @ deutschepost.de
Tel.: +49 (0) 228 182-99 44 Fax: +49 (0) 228 182-98 80 e-mail: pressestelle @ deutschepost.de
e-mail: ir @ deutschepost.de Online: dp-dhl.com/en/investors.hml
GeT and dhl Webshop Mat. no. 675-601-522
Deutsche Post Corporate Language Services et al.
The English version of the Annual Report 2009 of Deutsche Post DHL constitutes a translation of the original German version. Only the German version is legally binding, in so far as this does not conflict with legal provisions in other countries.
| € m | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2002 adjusted |
2003 adjusted |
2004 adjusted |
2005 adjusted |
2006 adjusted |
2007 adjusted |
2008 adjusted |
2009 | |
| Revenue | ||||||||
| 12,129 | 12,495 | 12,747 | 12,878 | 15,290 | 14,569 | 14,393 | 13,684 | |
| express | 14,637 | 15,293 | 17,557 | 16,831 | 13,463 | 13,874 | 13,637 | 10,312 |
| logistics | 5,817 | 5,878 | 6,786 | 9,933 | 24,405 | – | – | – |
| global forwarding, freight | – | – | – | – | – | 12,959 | 14,179 | 10,870 |
| supply chain | – | – | – | – | – | 14,317 | 13,718 | 12,507 |
| financial services | 8,676 | 7,661 | 7,349 | 7,089 | 9,593 | – | – | – |
| services | – | – | – | 3,874 | 2,201 | – | – | – |
| Divisions total | 41,259 | 41,327 | 44,439 | 50,605 | 64,952 | 55,719 | 55,927 | 47,373 |
| Corporate Center / Other (until 2004: Other / Consolidation; until 2006: Consolidation; until 2007: Corporate Center / Other and Consolidation) |
–2,004 | –1,310 | –1,271 | –6,011 | –4,407 | –1,676 | 1,782 | 1,527 |
| Consolidation | – | – | – | – | – | – | –3,235 | –2,699 |
| Continuing operations | – | – | – | – | – | 54,043 | 54,474 | 46,201 |
| Discontinued operations | – | – | – | – | – | 10,335 | 11,226 | 1,634 |
| Total | 39,255 | 40,017 | 43,168 | 44,594 | 60,545 | – | – | – |
| Profit / loss from operating activities before goodwill amortisation (ebita) |
||||||||
| 2,144 | 2,082 | 2,085 | 2,030 | 2,094 | 1,976 | 2,179 | 1,383 | |
| express | 270 | 365 | 373 | 411 | 288 | –272 | –2,194 | –807 |
| logistics | 173 | 206 | 281 | 346 | 751 | – | – | – |
| global forwarding, freight | – | – | – | – | – | 409 | 362 | 191 |
| supply chain | – | – | – | – | – | 577 | –310 | –208 |
| financial services | 679 | 568 | 716 | 869 | 1,004 | – | – | – |
| services | – | – | – | 679 | –229 | – | – | – |
| Divisions total | 3,266 | 3,221 | 3,455 | 4,335 | 3,908 | 2,690 | 37 | 559 |
| Corporate Center / Other (until 2004: Other / Consolidation; until 2006: Consolidation; until 2007: Corporate Center / Other and Consolidation) |
–297 | –246 | –84 | –131 | –36 | –557 | –393 | –328 |
| Consolidation | – | – | – | – | – | – | 0 | 0 |
| Continuing operations | – | – | – | – | – | 2,133 | –356 | 231 |
| Discontinued operations | – | – | – | – | – | 1,060 | –871 | –24 |
| Total | 2,969 | 2,975 | 3,371 | 4,204 | 3,872 | – | – | – |
| Profit / loss from operating activities (ebit) | ||||||||
| 2,138 | 2,067 | 2,072 | 2,030 | 2,094 | 1,976 | 2,179 | 1,383 | |
| express | –79 | 152 | 117 | –23 | 288 | –272 | –2,194 | –807 |
| logistics | 80 | 116 | 182 | 346 | 751 | – | – | – |
| global forwarding, freight | – | – | – | – | – | 409 | 362 | 191 |
| supply chain | – | – | – | – | – | 577 | –920 | –208 |
| financial services | 678 | 567 | 714 | 863 | 1,004 | – | – | – |
| services | – | – | – | 679 | –229 | – | – | – |
| Divisions total | 2,817 | 2,902 | 3,085 | 3,895 | 3,908 | 2,690 | –573 | 559 |
| Corporate Center / Other (until 2004: Other / Consolidation; until 2006: Consolidation; until 2007: Corporate Center / Other |
||||||||
| and Consolidation) | –297 | –246 | –84 | –131 | –36 | –557 | –393 | –328 |
| Consolidation | – | – | – | – | – | – | 0 | 0 |
| Continuing operations | – | – | – | – | – | 2,133 | –966 | 231 |
| Discontinued operations | – | – | – | – | – | 1,060 | –871 | –24 |
| Total | 2,520 | 2,656 | 3,001 | 3,764 | 3,872 | – | – | – |
| Consolidated net profi t / loss for the period | 1,590 | 1,342 | 1,740 | 2,448 | 2,282 | 1,873 | –1,979 | 693 |
| 2002 adjusted |
2003 adjusted |
2004 adjusted |
2005 adjusted |
2006 adjusted |
2007 adjusted |
2008 adjusted |
2009 | ||
|---|---|---|---|---|---|---|---|---|---|
| Cash fl ow / investments / depreciation, amortisation and impairment losses |
|||||||||
| Total cash fl ow from operating activities | €m | 2,967 | 3,006 | 2,336 | 3,624 | 3,922 | 5,151 | 1,939 | –584 |
| Total cash fl ow from investing activities | €m | –2,226 | –2,133 | –385 | –5,052 | –2,697 | –1,053 | –441 | –2,722 |
| Total cash fl ow from fi nancing activities | €m | 147 | –304 | –493 | –1,288 | –865 | –1,787 | –1,468 | 1,688 |
| Investments | €m | 3,100 | 2,846 | 2,536 | 6,176 | 4,066 | 2,343 | 3,169 | 1,456 |
| Depreciation, amortisation and impairment losses |
€m | 1,893 | 1,693 | 1,821 | 1,961 | 1,771 | 2,196 | 2,662 | 1,620 |
| Assets and capital structure | |||||||||
| Non-current assets1) | €m | 14,536 | 15,957 | 17,027 | 25,223 | 26,074 | 25,764 | 20,517 | 22,022 |
| Current assets (until 2003: including deferred tax assets)1) |
€m | 148,111 | 138,976 | 136,369 | 147,417 | 191,624 | 209,656 | 242,447 | 12,716 |
| Equity (excluding minority interest) | €m | 5,095 | 6,106 | 7,242 | 10,624 | 11,220 | 11,035 | 7,826 | 8,176 |
| Minority interest | €m | 117 | 59 | 1,623 | 1,791 | 2,732 | 2,778 | 2,026 | 97 |
| Current and non-current provisions | €m | 12,684 | 12,673 | 12,441 | 12,161 | 14,233 | 12,276 | 10,836 | 9,677 |
| Current and non-current liabilities2) | €m | 11,900 | 12,778 | 15,064 | 19,371 | 20,850 | 21,544 | 242,276 | 16,788 |
| Total assets | €m | 162,647 | 154,933 | 153,396 | 172,640 | 217,698 | 235,420 | 262,964 | 34,738 |
| Employees/staff costs (from 2007: Continuing operations) |
|||||||||
| Total number of employees | |||||||||
| (headcount including trainees) | at 31 Dec. | 371,912 | 383,173 | 379,828 | 502,545 | 520,112 | 512,147 | 512,536 | 477,280 |
| Full time equivalents (excluding trainees)3) | at 31 Dec. | 334,952 | 348,781 | 340,667 | 455,115 | 463,350 | 453,626 | 451,515 | 424,686 |
| Average number of employees (headcount) | 375,890 | 375,096 | 381,492 | 393,463 | 507,641 | 500,252 | 511,292 | 488,518 | |
| Staff costs | €m | 13,313 | 13,329 | 13,840 | 14,337 | 18,616 | 17,169 | 18,389 | 17,021 |
| Staff cost ratio4) | % | 33.9 | 33.3 | 32.1 | 32.2 | 30.7 | 31.8 | 33.8 | 36.8 |
| Key figures revenue / income / assets and capital structure |
|||||||||
| Return on sales5) | % | 7.6 | 7.4 | 7.0 | 8.4 | 6.4 | 3.9 | –1.8 | 0.5 |
| Return on equity (roe) before taxes6) | % | 35.5 | 34.2 | 29.2 | 28.7 | 21.6 | 8.6 | –9.0 | 3.0 |
| Return on assets7) | % | 1.6 | 1.7 | 1.9 | 2.3 | 2.0 | 0.9 | –0.4 | 0.2 |
| Tax rate8) | % | 14.3 | 29.9 | 20.2 | 19.8 | 19.7 | 14.0 | – | 5.4 |
| Equity ratio9) | % | 3.1 | 3.9 | 5.8 | 7.2 | 6.4 | 5.9 | 3.7 | 23.8 |
| Net debt/net liquidity (Postbank at equity)10) | €m | 1,494 | 2,044 | –32 | 4,193 | 3,083 | 2,858 | 2,466 | –1,690 |
| Net gearing (Postbank at equity)11) | % | 22.7 | 25.1 | –0.4 | 28.1 | 21.4 | 20.4 | 23.7 | –25.7 |
| Dynamic gearing (Postbank at equity)12) | years | 0.5 | 0.8 | 0.0 | 2.4 | 1.4 | 1.0 | 0.7 | –1.4 |
| Key stock data | |||||||||
| (Diluted) earnings per share13) | € | 0.59 | 1.18 | 1.44 | 1.99 | 1.60 | 1.15 | –1.40 | 0.53 |
| Cash fl ow per share13), 14) | € | 2.67 | 2.70 | 2.10 | 3.23 | 3.28 | 4.27 | 1.60 | –0.48 |
| Dividend distribution | €m | 445 | 490 | 556 | 836 | 903 | 1,087 | 725 | 72515) |
| Payout ratio (distribution to consolidated net profi t) |
% | 67.5 | 37.4 | 34.8 | 37.4 | 47.1 | 78.6 | – | 112.6 |
| Dividend per share | € | 0.40 | 0.44 | 0.50 | 0.70 | 0.75 | 0.90 | 0.60 | 0.6015) |
| Dividend yield | |||||||||
| (based on year-end closing price) | % | 4.0 | 2.7 | 3.0 | 3.4 | 3.3 | 3.8 | 5.0 | 4.4 |
| (Diluted) price / earnings ratio16) | 7.1 | 13.9 | 11.7 | 10.3 | 14.3 | 20.4 | –8.5 | 25.5 | |
| Number of shares carrying dividend rights | millions | 1,112.8 | 1,112.8 | 1,112.8 | 1,193.9 | 1,204.0 | 1,208.2 | 1,209.0 | 1,209.0 |
| Year-end closing price | € | 10.00 | 16.35 | 16.90 | 20.48 | 22.84 | 23.51 | 11.91 | 13.49 |
1) From 2004 balance sheet presented in accordance with the new ias 1 as explained in item 5 of the Notes to the 2005 consolidated fi nancial statements. 2) Excluding liabilities from fi nancial services. 3) Until 2004 including trainees. 4) Staff costs / revenue. 5) ebita / revenue; from 2004: ebit / revenue (from 2007: Continuing operations). 6) Profi t before income taxes (from 2007 Continuing operations) / average equity (from 2004 including minority interest). 7) ebit (from 2007: Continuing operations) / average total assets. 8) Income tax expense / profi t before income taxes; including discontinued operations. 9) Equity (from 2004 including minority interest) / total assets. 10) Financial liabilities excluding cash and cash equivalents, current fi nancial assets and long-term deposits. From 2006: excluding fi nancial liabilities to minority shareholders of Williams Lea. From 2008: see management report, page 44. 11) Net debt / net debt and equity (from 2004 including minority interest). 12) Net debt / cash fl ow from operating activities. 13) The weighted average number of shares for the period was used for the calculation. 14) Cash fl ow from operating activities. 15) Proposal. 16) Year-end closing price / earnings per share (2002: before extraordinary expense).
| 28 April 2010 | Annual General Meeting (Frankfurt / Main) |
|---|---|
| 11 May 2010 | Interim Report on the fi rst quarter of 2010, investors conference call |
| 3 August 2010 | Interim Report on the fi rst half of 2010, half-year press conference and investors conference |
| 9 November 2010 | Interim Report on the fi rst nine months of 2010, investors conference call |
1) Further dates, updates as well as information on live webcasts dp-dhl.com / en / investors.html.
| 25 March 2010 | Nomura Business Leisure Transport Conference (London) | |
|---|---|---|
| 20 – 21 May 2010 | Deutsche Bank German & Austrian Corporate Conference (Frankfurt / Main) | |
| 25 – 26 May 2010 | Wolfe Research Global Transport Conference (New York) | |
| 16 – 17 June 2010 | Credit Suisse Business Services Conference (London) | |
| 21 June 2010 | Goldman Sachs Business Services Conference (London) | |
| 23 – 24 June 2010 | Deutsche Bank Industrials Conference (Chicago) | |
| 13 – 14 September 2010 | ubs Transport Conference (London) | |
| 21 – 22 September 2010 | Sanford C. Bernstein's Strategic Decisions Conference (London) | |
| 30 September 2010 | Nordea Markets's Transport Seminar (Copenhagen) | |
| 7 October 2010 | Goldman Sachs Shipping & Freight Forwarding Symposium (London) | |
1) Further dates, updates as well as information on live webcasts dp-dhl.com / en / investors.html.
Provided your mobile telephone has Quick Recognition (qr) software, you can photograph this code to directly access the investors portal on our website.
Deutsche Post ag Headquarters Investor Relations 53250 Bonn Germany www.dp-dhl.com
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