Quarterly Report • May 6, 2009
Quarterly Report
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Key fi gures
| Q 1 2008 restated |
Q 1 2009 | + / – % | ||
|---|---|---|---|---|
| Revenue | € m | 13,209 | 11,505 | – 12.9 |
| Profi t from operating activities (EBIT) before non-recurring items | € m | 539 | 312 | – 42.1 |
| Non-recurring items | € m | 0 | – 285 | – |
| EBIT | € m | 539 | 27 | – 95.0 |
| Return on sale 2) | % | 4.1 | 0.2 | |
| Consolidated net profi t for the period 3) | € m | 383 | 944 | 146.5 |
| Operating cash fl ow | € m | 141 | –275 | – |
| Net debt / net liquidity 4) | € m | 2,412 | –1,481 | – |
| Earnings per share 5) | € | 0.32 | 0.78 | 143.8 |
| Number of employees 6) | 456,716 | 446,100 | – 2.3 |
1) Excluding Postbank. 2) EBIT/revenue. 3) Excluding minorities, including Postbank. 4) As at 31 December 2008 and 31 March 2009; adjusted for the mandatory exchangeable bond and fi nancial liabilities to Williams Lea shareholders. 5) Including Postbank. 6) Average FTE.
operations.
2) Segment reporting, page 30.
I II
Q1
1
We sold shares of Deutsche Postbank, as planned, to Deutsche Bank, and we exited the domestic US express business. Despite significant restructuring costs, reported Group EBIT was slightly positive. We made further progress with our cost reduction initiatives in order to soften the sharp impact of the economic crisis. We launched our Strategy 2015 and set a new course for Deutsche Post DHL.
Our goal is to safely navigate the economic crisis and to emerge a stronger market leader. To mitigate adverse effects from materially lower business volumes, we plan to make fewer investments and, in a Group-wide costcutting drive, lower indirect costs by €1 billion by 2010. Particularly in times of economic crisis it is critical that we continue to strengthen our already healthy financial capabilities.
| Selected Key Figures | I |
|---|---|
| Review/Preview | 1 |
| Letter to our Shareholders | 3 |
BY THE BOARD OF MANAGEMENT
| Income Statement | 25 |
|---|---|
| Statement of Other Comprehensive Income | 26 |
| Balance Sheet | 27 |
| Cash Flow Statement | 28 |
| Statement of Changes in Equity | 29 |
| Segment Reporting | 30 |
| Selected Explanatory Notes | 31 |
Events and Contacts II
Dr Frank Appel
Chief Executive Officer Deutsche Post AG
29 April 2009 First quarter of 2009
In the first three months of the new year, volumes continued to decline in all products and across all divisions compared with the fourth quarter of 2008. For this reason, we are all taking precautions to prepare for a sustained difficult economic environment.
We are therefore working on our operating costs, and we will lower our indirect costs by at least €1 billion by the end of 2010. Through our Roadmap to Value initiatives, we made encouraging progress in these areas during the reporting period.
The restructuring measures in the US express business are proceeding according to plan. We have not offered any domestic products in the US since February. We have also reached a clear decision with regard to our remaining transports of international express shipments within North America: Negotiations with UPS have been terminated. We will co-operate for the foreseeable future with two other air freight carriers, ABX Air and ASTAR Air Cargo.
Although first-quarter earnings were not outstanding, given the circumstances we consider them satisfactory. Moreover, shipment rates stabilised in March, suggesting that the decline could be close to bottoming out.
Our financial position is extremely good, thanks in part to the sale of Postbank. Consolidated net profit reached nearly €1 billion in the first quarter – a marked improvement on the prior-year period. This was largely due to the positive impact that the market valuation of the put options on Postbank shares had on our net financial income.
I am certain that Deutsche Post DHL will not only safely navigate the economic crisis, but emerge from it stronger than before. We have done our homework and set a new strategic course. Together with the new management team, I plan to implement Strategy 2015: We want to remain Die Post für Deutschland (The Postal Service for Germany) and become The Logistics Company for the World.
In the mail business, we set the standard in quality, above all in Germany. Our task is to strive to maintain our strong position in a shrinking market. The logistics industry is and will remain a growth sector in which we have outstanding prospects once the current economic crisis has been overcome.
Yours faithfully,
Postal address Deutsche Post AG Headquarters 53250 Bonn, GERMANY Business address Deutsche Post AG Headquarters Charles-de-Gaulle-Straße 20 53113 Bonn, GERMANY
Visitors' address Deutsche Post AG Headquarters Platz der Deutschen Post 53113 Bonn, GERMANY
Phone +49 228182-9000 Fax +49 228182-70 60
www.dp-dhl.com
4
The following changes were made to the Board of Management in the first quarter: On 26 February 2009, Ken Allen replaced John Mullen as the head of the EXPRESS Division. At the beginning of the year, our Chief Financial Officer, John Allan, gave notice that he would be leaving the Group on 30 June 2009.
On 11 March 2009, Frank Appel unveiled the strategy aimed at making the company fit for the future. The Group is now called Deutsche Post DHL and builds upon the two central pillars of our business: We want to remain "Die Post für Deutschland" (The Postal Service for Germany) and become "The Logistics Company for the World". The new name stands for clear structures, increased co-operation and mobility within the Group and integrated solutions for customers.
Consistent with this approach, we are reorganising human resources and also establishing a business department called DHL Solutions & Innovation.
As part of our new brand architecture, we renamed the SUPPLY CHAIN/CORPO-RATE INFORMATION SOLUTIONS Division. It is now called the SUPPLY CHAIN Division and houses the Supply Chain and Williams Lea (previously Corporate Information Solutions) business units.
In the first quarter of 2009, reduced demand around the world and severe problems in the financing of foreign trade caused global trade to fall dramatically. Exportoriented economies suffered the most from these developments.
In the United States, companies drastically reduced capital expenditure. In addition, exports fell heavily, whilst private consumption remained stable. In light of the severity of the financial and economic crisis, the US Federal Reserve kept its key interest rate between 0% and 0.25%.
The Asian economies were also caught up in the turbulence of the global economic crisis. Japan was hit hardest, exporting in the first quarter of 2009 only about half of what it had exported during the same period last year. Chinese exports were also down, falling 19.7% below their prior-year level. Yet China remained well ahead of the international community.
In the euro zone, where GDP had already dropped considerably in the fourth quarter of 2008, the deep recession continued during the reporting period. Exports fell substantially once again, and companies made noticeably fewer investments. The European Central Bank reduced its key interest rate to a record low of 1.25% in order to support the economy.
The drop in world trade had a greater impact on Germany than on the euro zone as a whole. Foreign orders fell by more than 40%, and industrial production was cut back drastically. The weak economy was reflected in rising unemployment rates and a very low Ifo Business Climate Index.
1) Rebased on the closing price of Deutsche Post shares on 30 December 2008.
Last year's downward stock market trend continued in the first quarter of 2009. The DAX lost 15.1% of its value since the beginning of the year, and the EURO STOXX 50 fell by 15.5%. Early cyclicals such as transport sector stocks suffered in general, with our stock being particularly hard hit. Initially, Deutsche Post shares significantly underperformed the DAX, though they recovered somewhat midway through the first quarter. After we announced our dividend proposal for 2008 at the end of February, our shares dropped to a record low of €6.65 on 9 March 2009. Our stock closed the first quarter down 31.9%. Average daily trading volumes decreased by 15.3% to approximately 6.6 million shares.
| 30 Dec. 2008 31March 2009 | |||
|---|---|---|---|
| Number of shares | millions | 1,209.0 | 1,209.0 |
| Closing price | € | 11.91 | 8.11 |
| Market capitalisation | €m | 14,399 | 9,805 |
| Q1 2008 | Q1 2009 | ||
| High | € | 24.18 | 11.91 |
| Low | € | 19.09 | 6.65 |
| Average trading volume per day | shares | 7,788,490 | 6,595,323 |
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| 30 Dec. 2008 31March 2009 | +/– % 31March 2008 31March 2009 | +/– % | |||||
|---|---|---|---|---|---|---|---|
| Deutsche Post | € | 11.91 | 8.11 | −31.9 | 19.35 | 8.11 | −58.1 |
| TNT | € | 13.55 | 12.88 | −4.9 | 23.53 | 12.88 | −45.3 |
| FedEx | US-\$ | 62.22 | 44.49 | −28.5 | 92.67 | 44.49 | −52.0 |
| UPS | US-\$ | 54.18 | 49.22 | −9.2 | 73.02 | 49.22 | −32.6 |
| Kuehne + Nagel | CHF | 67.55 | 66.45 | −1.6 | 95.79 | 66.45 | −30.6 |
Our Roadmap to Value capital markets programme is currently focused on initiatives geared towards continuing to strengthen our already healthy financial capabilities. With the help of a Group-wide cost-cutting drive, we are aiming rigorously to reduce indirect costs by €1 billion by 2010. In the first quarter of 2009, indirect costs were already €130 million lower than the prior-year figure. We have made noticeably fewer investments and improved working capital year-on-year by €800 million.
7
On 7 January 2009, we entered into a services agreement worth nearly €350 million with Spanish telecommunications provider Telefónica. The telecommunications company will provide mobile, fixed voice and data services to 125,000 company employees at 2,400 sites in 28 European countries outside Germany, starting in spring 2009. We expect to save more than €150 million over the five-year term of the agreement.
On 25 February 2009, Deutsche Post AG and Deutsche Bank AG completed the transaction regarding the sale of shares in Deutsche Postbank AG as agreed on 14 January 2009 as planned. The contract comprises three tranches. As agreed, the volume of the two initial tranches amounts to €3.8 billion; however, Deutsche Post has already received a further €1.1 billion in cash on the closing date of 25 February 2009 in addition to the €3.1 billion on 2 January 2009. The difference to the cash amounts originally expected on closing is due to hedging effects. The cash value of the entire transaction remains unchanged at €4.9 billion.
The acquisition of the 50 million Postbank shares – corresponding to a 22.9% stake – as part of the first tranche was carried out upon entry in the commercial register of the non-cash capital increase of 50 million Deutsche Bank shares in favour of Deutsche Post. As of the entry of the capital increase in the commercial register, Deutsche Post held around 8% of the shares in Deutsche Bank. As planned, these shares are substantially hedged. The Group may dispose of half of these shares as from the end of April 2009. The other half may be sold as from mid-June. In accordance with the agreement, mechanisms designed to avoid market disturbances will be applied to any such sales.
In a second tranche, Deutsche Bank subscribed for a mandatory exchangeable bond issued by Deutsche Post. After three years, this bond – including interest payments accrued – will be exchanged for 60 million Postbank shares, or a 27.4% stake.
In addition, net finance costs/net financial income for the past quarter contains non-recurring income of €944 million from the measurement of the third tranche of the overall transaction. In this tranche, Deutsche Post DHL and Deutsche Bank agreed on options for the sale/purchase of a further 12.1% of the Postbank shares. These options can be exercised at the earliest in February 2012.
Deutsche Post AG ordered a new generation of mail sorting machines from Siemens AG. Siemens will deliver a total of 288 sorting machines for standard and compact letters and up to 97 sorting systems for flats and maxi flats by 2012. The investment value amounts to around €420 million.
Postbank's activities were reported as "discontinued operations" until the sale of Postbank at the end of February. The Pension Service had already been reallocated from the former FINANCIAL SERVICES Division to the MAIL Division in financial year 2008. We report our other 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 finance costs/net financial income. The prior-year amounts have been restated accordingly.
Due to the deconsolidation of Postbank, which is now accounted for under the equity method, we no longer prepare additional consolidated financial statements including the Deutsche Postbank Group on an equity-accounted basis.
As of 6 February 2009, we increased our stake in Selekt Mail Nederland C.V., a Dutch company, from 51% to 100%.
Consolidated revenue from continuing operations fell by 12.9% year-on-year to €11,505 million (previous year: €13,209 million), partly due to negative currency effects in the amount of €114 million. Our exit from the domestic US express business contributed in particular to the decrease in the share of revenue generated abroad, which fell from 68.2% to 64.7%.
Profit from continuing operations was reduced due to non-recurring expenses of €245 million for restructuring the US express business in the reporting period. Additional restructuring costs of €40 million were incurred in the other divisions. There was no non-recurring income or expense in the prior-year period.
Other operating income decreased from €481 million to €393 million year-on-year, in part because last year's figure included higher income from the sale of land and buildings and from currency translation differences.
The lower sales volumes were reflected in materials expense, which declined from €7,436 million to €6,388 million. In addition, the lower price of oil contributed to the reduction in transport costs.
Staff costs also decreased slightly; this item declined 3.3% to €4,246 million.
By contrast, depreciation, amortisation and impairment losses increased slightly from €359 million to €368 million. Further impairment losses were recognised on additions to non-current assets in the US express business in the first quarter of 2009.
Other operating expenses declined by €95 million to €869 million, amongst other things due to lower expenses from currency translation differences and lower external consulting costs.
Consolidated revenue for continuing operations, Q1
| €m | ||||
|---|---|---|---|---|
| 7,447 | 4,058 | 11,505 | ||
| 2009 | ||||
| 9,012 | 4,197 | 13,209 | ||
| 2008 | ||||
| Abroad Germany |
Note 5
8
Note 6
Profit from operating activities (EBIT) from continuing operations amounted to €27 million, a drop of €512 million or 95.0% compared with the prior-year period. This figure includes the aforementioned non-recurring expenses of €285 million. Adjusted for these expenses, EBIT decreased by 42.1% to €312 million.
Primarily the measurement of derivatives from the sale of Postbank led to a rise in net finance costs/net financial income of €765 million to a net financial income of €618 million.
Profit before income taxes from continuing operations improved by 64.5%, or €253 million, to €645 million. As a result, income taxes rose from €53 million in Q1 2008 to €129 million in Q1 2009. All in all, profit from continuing operations amounted to €516 million, an increase of €177 million or 52.2%.
Profit from discontinued operations rose by €314 million year-on-year to €432 million. This figure includes the net loss generated by Postbank in the first two months of 2009 and the deconsolidation gain of €444 million. Details are presented in the Notes.
Profit from continuing and discontinued operations resulted in a consolidated net profit for the period of €948 million, a rise of 107.4% over the prior-year figure of €457 million. An amount of €944 million is attributable to shareholders of Deutsche Post and €4 million to minorities. Both basic and diluted earnings per share rose significantly from €0.32 to €0.78. Earnings per share increased to €0.42 for continuing operations and €0.36 for discontinued operations.
The principles and aims of financial management presented in the 2008 Annual Report starting on page 43 are being pursued unchanged.
In the first quarter of 2009, the euro was again the Group's most important currency in which debt is denominated. Its share of our financial debt rose, especially because of the mandatory exchangeable bond issued as part of the sale of Postbank and the collateralisation of the put option. The other basic financial data outlined in the Annual Report are still valid.
The effects of the current financial and economic crisis are minimal for our financing requirements and refinancing options because our credit quality is rated as adequate and our liquidity is extraordinarily high – in part because of the sale of Postbank.
As a result, only an average of around 7.1% (previous year: 10.7%) of our unsecured committed credit lines were used. The total volume of these is currently €2.8 billion, €200 million of which had been used by 31 March. Our commercial paper programme, which we launched at the beginning of 2008, was not used in the first quarter of 2009.
9
Note 9
investors.dp-dhl.com
Intangible assets (excluding goodwill)
The Group's aggregate capital expenditure (capex) amounted to €241 million in total in the period to the end of March 2009 (previous year: €344 million). Of this figure, €194 million was attributable to property, plant and equipment and €47 million to intangible assets excluding goodwill. As planned, we significantly reduced investments – by a total of 30% as against Q1 2008 – especially in the EXPRESS and SUPPLY CHAIN divisions. Investments in property, plant and equipment related mainly to advanced payments and assets under development (€59 million), IT equipment (€47 million), transport equipment (€23 million), technical equipment and machinery (€23 million), and other operating and office equipment (€20 million).
Our regional investments focused mainly on Europe, the Americas and Asia. In Europe, our investment activities were centred in Germany, the UK and Belgium. In Asia, we concentrated on Malaysia, India and China.
| €m | Global | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Forwarding | , | Corporate Center/ | Continuing | Discontinued | ||||||||||||
| Express | Freight | Supply | Chain | Other | Consolidation | operations | operations | |||||||||
| 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | |
| Capex | 26 | 47 | 150 | 74 | 17 | 18 | 118 | 60 | 33 | 42 | 0 | 0 | 344 | 241 | 17 | 7 |
| Depreciation on assets | 88 | 84 | 104 | 111 | 23 | 27 | 81 | 80 | 63 | 66 | 0 | 0 | 359 | 368 | 34 | 0 |
| Capex versus depreciation ratio |
0.30 | 0.56 | 1.44 | 0.67 | 0.74 | 0.67 | 1.46 | 0.75 | 0.52 | 0.64 | − | − | 0.96 | 0.65 | 0.50 | − |
Investments in the MAIL Division increased from €26 million to €47 million. This was mainly due to projects planned for 2008 being deferred to the current financial year. Projects started in the previous year were continued in the first quarter of 2009: We acquired mail sorting machines, upgraded IT, replaced transport equipment, installed 300 further Packstations and reorganised the retail outlet network. In the international mail business we are continuing to work on a uniform software platform.
We invested significantly less in the EXPRESS Division – €74 million (previous year: €150 million) in the first quarter of 2009 – reflecting the economic situation. The focus remains on our worldwide network of aircraft, and on establishing and expanding hubs in the Asia Pacific region. In Europe, we modernised the vehicle fleet, especially in the Benelux countries. In the Americas region, the focus was on the restructuring of the US express business.
In the GLOBAL FORWARDING, FREIGHT Division, capital expenditure in the first quarter was around the same as in the previous year at €18 million (previous year: €17 million), of which €11 million related to the Global Forwarding Business Unit. As in 2008, the focus was on building equipment and a modern IT infrastructure. We invested €6 million in the Freight Business Unit, mainly to replace transport equipment, primarily in the UK.
In the SUPPLY CHAIN Division, we halved investments from €118 million to €60 million. Most of this went into customer projects: In the United Kingdom we invested in transport equipment, warehouses and related equipment for new and existing customers. The focus in the Americas region was business with new customers and warehouse solutions. In continental Europe, significant amounts were invested in IT equipment as well as in technical equipment and machinery.
In the first quarter of 2009, cross-divisional investments rose year-on-year from €33 million to €42 million and consisted mainly of vehicle and IT procurement. This increase was the result of investments in IT that were necessary as part of the restructuring.
Selected cash flow indicators (continuing operations)
| €m | ||
|---|---|---|
| Q1 2008 | Q1 2009 | |
| Cash and cash equivalents as at 31 March | 1,237 | 3,511 |
| Change in cash and cash equivalents | −65 | 1,892 |
| Net cash from/used in operating activities | 141 | −275 |
| Net cash used in investing activities | −137 | −1,123 |
| Net cash used in/from financing activities | −69 | 3,290 |
Net cash used in operating activities amounted to €275 million in the first quarter of 2009. In the prior-year period, net cash of €141 million had been generated from operating activities. The main reason for the decrease in net cash was the drop in EBIT of €512 million and a higher utilisation of provisions, primarily due to restructuring measures in the domestic US express business. The net outflow of working capital, on the other hand, fell by €337 million, predominantly as a result of the decrease in receivables and other assets.
At €1,123 million, net cash used in investing activities was significantly up on the prior-year period (€–137 million). Net cash used in current financial instruments in the amount of €987 million contributed significantly to this increase: Part of the cash received from the sale of Postbank was invested in short-term capital market instruments. Moreover, proceeds from the disposal of non-current assets fell from €308 million to €97 million. In the previous year these proceeds had stemmed primarily from real estate disposals. Cash paid to acquire non-current assets likewise fell, declining from €449 million in the first quarter of 2008 to €262 million in the period under review.
Combining net cash used in operating activities and net cash used in investing activities results in a negative free cash flow of €1,398 million, a decline of €1,402 million from the previous year.
Net cash from financing activities amounted to €3,290 million, compared with net cash used in financing activities of €69 million in the previous year. This increase was largely due to subscription to the mandatory exchangeable bond by Deutsche Bank in connection with the sale of Postbank and payment of the collateralisation of the put option for the remaining Postbank shares.
Compared with 31 December 2008, cash and cash equivalents fell from €4,662 million to €3,511 million due to the changes in the cash flows from the individual activities in continuing operations and discontinued operations.
The deconsolidation of Postbank led to a drastic reduction in the Group's total assets as at 31 March 2009. Total assets decreased €224,605 million, or 85.4%, compared with 31 December 2008 to €38,359 million.
Non-current assets increased from €20,517 million to €22,800 million, primarily because investments in associates rose by €1,571 million. The remaining shares in Postbank, amongst other things, are reported in this item. The rise in intangible assets from €11,627 million to €11,814 million was largely attributable to currency effects relating to goodwill. Deferred tax assets decreased by €380 million to €653 million as at the reporting date.
By contrast, current assets fell by €226,888 million to €15,559 million, above all due to the deconsolidation of Postbank and the resulting decrease in assets held for sale. Receivables and other assets increased slightly, from €8,715 million to €8,981 million, mainly due to deferral of the prepaid annual contribution to Bundes-Pensions-Service and to derivatives from the sale of Postbank shares. Completion of the sale of Postbank led to a rise in current financial instruments of €2,513 million to €2,563 million. This figure includes the shares in Deutsche Bank received in return for the Postbank shares as well as short-term investments of the cash obtained from the sale of Postbank. Cash and cash equivalents increased from €1,350 million to €3,511 million, especially due to the cash received from the sale of the Postbank shares.
Equity attributable to Deutsche Post AG shareholders rose from €7,826 million to €9,419 million. The increase was primarily due to the consolidated net profit for the period of €944 million and changes in other reserves.
The sale of Postbank was a key factor in the drastic reduction in non-current and current liabilities. As at 31 December 2008, all of Postbank's liabilities and provisions were reported under liabilities associated with assets held for sale. They were fully disposed of upon deconsolidation, resulting in a net decline of €227,736 million. Financial liabilities, however, increased from €4,097 million to €7,463 million. Although we succeeded in reducing current financial liabilities by €479 million to €300 million, noncurrent financial liabilities rose from €3,318 million to €7,163 million, mainly due to Deutsche Bank's subscription to a mandatory exchangeable bond in connection with the sale of Postbank. Non-current and current provisions amounted to €10,355 million, just under the figure as at 31 December 2008, mainly as a result of the decrease of €309 million in deferred tax liabilities. Trade payables fell €565 million to €4,415 million due to the weak economic climate in the first quarter of 2009 compared with the stronger fourth quarter, which had benefitted from year-end seasonal business. Other current and non-current liabilities increased from €5,112 million to €6,241 million, primarily as a result of measurement of the options from the sale of Postbank.
In order to improve the comparability of data, figures as at 31 December 2008 refer to an analysis with Postbank presented on an equity-accounted basis ("Postbank at equity"). Net debt was reduced considerably in connection with the sale of Postbank: First, financial liabilities increased due to subscription to the mandatory exchangeable bond and payment of the collateralisation of the put option for the remaining Postbank shares, and second, cash and cash equivalents as well as financial instruments increased due to the Deutsche Bank shares received in exchange. However, we eliminated the mandatory exchangeable bond, which Deutsche Bank subscribed for, from the calculation because this bond will be settled completely in Postbank shares. As a result, net debt/net liquidity decreased by 161.4%, from €2,412 million to €–1,481 million. The equity ratio rose slightly, from 23.8% as at 31 December 2008 to 24.9%. The decrease in net debt had a positive effect on net gearing, which declined from 23.3% to –18.4% as at 31 March 2009.
| 31 Dec. 2008 1) 31 March 2009 | |||
|---|---|---|---|
| Equity ratio | % | 23.8 | 24.9 |
| Net debt/net liquidity | €m | 2,412 | –1,481 |
| Net gearing | % | 23.3 | –18.4 |
1) Postbank at equity.
| Q1 2008 restated |
Q1 2009 | + / – % | ||
|---|---|---|---|---|
| Revenue | €m | 3,649 | 3,486 | −4.5 |
| of which Mail Communication | €m | 1,544 | 1,508 | −2.3 |
| Dialogue Marketing | €m | 724 | 683 | −5.7 |
| Press Services | €m | 212 | 211 | −0.5 |
| Parcel Germany | €m | 636 | 623 | −2.0 |
| Global Mail | €m | 515 | 433 | −15.9 |
| Retail outlets | €m | 200 | 198 | −1.0 |
| Pension Service | €m | 20 | 20 | 0.0 |
| Consolidation/Other | €m | −202 | −190 | 5.9 |
| Profit from operating activities (EBIT) | €m | 546 | 407 | –25.5 |
| EBIT before non-recurring items | €m | 546 | 407 | –25.5 |
| Return on sales1) | % | 15.0 | 11.7 | |
| EXPRESS | ||||
| Revenue | €m | 3,367 | 2,495 | −25.9 |
| of which Europe | €m | 1,669 | 1,387 | −16.9 |
| Americas | €m | 942 | 360 | −61.8 |
| Asia Pacific | €m | 628 | 586 | −6.7 |
| EEMEA (Eastern Europe, Middle East, Africa) | €m | 263 | 261 | −0.8 |
| Consolidation/Other | €m | −135 | −99 | 26.7 |
| Profit/loss from operating activities (EBIT) | €m | 8 | −392 | – |
| EBIT before non-recurring items | €m | 8 | −120 | – |
| Return on sales1) | % | 0.2 | –15.7 | |
| Global FOrWARDING, FreIGHT |
||||
| Revenue | €m | 3,250 | 2,660 | −18.2 |
| of which Global Forwarding | €m | 2,356 | 1,917 | −18.6 |
| Freight | €m | 925 | 762 | −17.6 |
| Consolidation/Other | €m | −31 | −19 | 38.7 |
| Profit from operating activities (EBIT) | €m | 78 | 45 | −42.3 |
| EBIT before non-recurring items | €m | 78 | 50 | −35.9 |
| Return on sales1) | % | 2.4 | 1.7 | |
| SUPPLY CHAIN | ||||
| Revenue | €m | 3,347 | 3,145 | −6.0 |
| Profit from operating activities (EBIT) | €m | 34 | 34 | 0.0 |
| EBIT before non-recurring items | €m | 34 | 42 | 23.5 |
| Return on sales 1) | % | 1.0 | 1.1 |
1) EBIT/revenue.
In the first quarter of 2009, revenue decreased by 4.5% to €3,486 million (previous year: €3,649 million) despite 0.6 additional working days. In areas sensitive to economic developments, revenue remained below the prior-year figures due to the economic crisis. Exchange rate gains amount to €9 million.
Revenue in the Mail Communication Business Unit declined from €1,544 million to €1,508 million. The market is shrinking steadily as a result of increasing use of electronic means of communication. The economic crisis is most evident amongst private customers, who posted fewer letters. Sales volumes amongst our business customers were on par with last year despite the extra 0.6 working days. In the regulated mail sector, we kept prices stable although the inflation rate underlying the price cap procedure increased. We secured market shares with competitive products and services, and regained lost customers.
| Total | 2,122 | 2,100 | −1.0 |
|---|---|---|---|
| Private customer letters | 328 | 316 | −3.7 |
| Business customer letters | 1,794 | 1,784 | −0.6 |
| Q1 2008 | Q1 2009 | +/– % | |
| mail items (millions) |
In times of economic difficulty, customers change their advertising behaviour. This is becoming apparent at present in the Dialogue Marketing Business Unit. In light of the current climate, mail-order companies in particular are investing less in advertising. Volumes declined for both addressed and unaddressed advertising mail. Quarterly revenues fell from €724 million in Q1 2008 to €683 million in Q1 2009, a decrease of 5.7%.
| Total | 2,974 | 2,766 | −7.0 |
|---|---|---|---|
| Unaddressed advertising mail | 1,282 | 1,201 | −6.3 |
| Addressed advertising mail | 1,692 | 1,565 | −7.5 |
| mail items (millions) | Q1 2008 restated |
Q1 2009 | +/– % |
Revenue in the Press Services Business Unit amounted to €211 million, nearly the same as the prior-year figure of €212 million. Both the number of pages and the weight of newspapers and magazines have decreased due to diminishing advertising content. As a result, the average prices for these items have fallen. We have been able to compensate for this with higher sales volumes, however.
Revenue in the Parcel Germany Business Unit decreased by 2.0% year-on-year, from €636 million to €623 million. Our customers with traditional mail-order businesses are suffering from the economic crisis – their sales volumes are dropping. Growth in online sales has not yet been able to counteract this development.
parcels (millions)
| 190 | 186 | −2.1 |
|---|---|---|
| 27 | 27 | 0.0 |
| 163 | 159 | −2.5 |
| Q1 2008 | Q1 2009 | +/– % |
1) Including intra-Group sales.
With around 14,000 outlets, we have the largest network of fixed-location retail outlets in Germany, where our customers are able to take care of their postal and often banking needs. We are continually expanding our network to make access to our services as simple as possible for customers. Revenue generated by the outlets reached €198 million, which was more or less on a par with the previous year's figure of €200 million.
In the Global Mail Business Unit, revenue decreased from €515 million to €433 million in the reporting period. Aside from exchange rate gains of €9 million, revenues suffered especially from the discontinuation of DHL@home – a product for mail-order companies in the US. We no longer offer this product after having reduced our express transport network. In our international mail business, we optimised our customer portfolio, which also included cutting ties with certain customers.
| mail items (millions) | Q1 2008 restated |
Q1 2009 | +/– % |
|---|---|---|---|
| Global Mail | 1,773 | 1,615 | −9.0 |
Profit from operating activities (EBIT) decreased significantly from Q1 2008, falling from €546 million to €407 million. The prior-year figure was 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 finance costs/net financial income. In addition, there was a change in the deferral of staff costs. Revenue declines arising from the economic crisis and the results of removing Postbank from the VAT group impacted earnings. We were able to partially offset increases in wages and costs through reductions in staff costs and non-staff operating expenses. Operating cash flow amounted to €–96 million (previous year: €143 million); the return on sales was 11.7%.
In the first three months of 2009, revenue in the EXPRESS Division declined by 25.9% to €2,495 million (previous year: €3,367 million). Negative currency effects of €20 million affected this result. Measured in local currencies and adjusted for acquisitions, revenue declined by 26.5%. This was due in large part to lower volumes, lower fuel surcharge revenues and the exit from the domestic express business in the US. Outside the United States, revenue in local currencies also fell – in this case by 11.6%.
Given the global recession, our daily shipment volumes in the Time Definite International product line decreased year-on-year by 13.3%. Outside the US, daily shipment volumes in the Time Definite Domestic product line declined by 7.0%.
| €m per day | |||
|---|---|---|---|
| Q1 2008 | Q1 2009 | +/– % | |
| Total | |||
| Time Definite International | 26.1 | 21.7 | −16.9 |
| Time Definite Domestic | 9.6 | 4.1 | −57.3 |
| Day Definite Domestic | 9.9 | 7.0 | −29.3 |
| Excluding the USA | |||
| Time Definite International | 23.2 | 19.8 | −14.7 |
| Time Definite Domestic | 3.9 | 4.2 | 7.7 |
| Day Definite Domestic | 7.6 | 6.9 | −9.2 |
| thousands of items per day | |||
|---|---|---|---|
| Q1 2008 | Q1 2009 | +/– % | |
| Total | |||
| Time Definite International | 518 | 449 | –13.3 |
| Time Definite Domestic | 1,357 | 559 | –58.8 |
| Day Definite Domestic | 1,395 | 813 | –41.7 |
| Excluding the USA | |||
| Time Definite International | 463 | 414 | –10.6 |
| Time Definite Domestic | 583 | 542 | –7.0 |
| Day Definite Domestic | 832 | 802 | –3.6 |
Revenue dropped by 16.9% in Europe to €1,387 million (previous year: €1,669 million). This included negative currency effects of €72 million, primarily attributable to our UK/Ireland, Scandinavia and Central Europe business. Adjusted for these currency effects and acquisitions in Spain and Romania, organic revenue in the region declined by 13.0%. This was driven by a drop in shipment volumes originating mainly in Scandinavia, the Baltic countries, Iberia, France, the Benelux countries, the UK and Ireland.
Performance in the Americas region in the first quarter of 2009 was burdened by the ailing economy and our exit from the domestic US market. Since February we no longer offer a domestic express product in the US domestic market, a move that has massively reduced our cost basis there. In the period under review, we accrued costs of €243 million for the ongoing restructuring, which is proceeding according to plan. Revenue in this region – which includes the US and the International Americas subregion (Latin America, Canada and the Caribbean) – slipped by 61.8% to €360 million (previous year: €942 million). This figure accounts for exchange rate gains of €22 million. Measured in local currencies, revenue fell by 64.1%. In the International Americas, first quarter organic revenue was 8.8% below last year's level. The difficult economic climate and ongoing changes to the US business resulted in a 35.7% drop in daily volumes in the Time Definite International product line in the US. At the same time, this decline is in line with our expectations.
Including the euro exchange rate gains of €27 million, revenue in the region decreased by 6.7% to €586 million (previous year: €628 million). Organic revenue declined by 13.1%, mainly attributable to lower fuel surcharge revenues and the lower volumes resulting from the economic downturn. Daily shipment volumes in the Time Definite International and Time Definite Domestic product lines shrank year-on-year by 9.3% and 11.3%, respectively.
In the EEMEA region (Eastern Europe, Middle East and Africa), revenue was in line with the first quarter of 2008 but includes exchange rate gains of €4 million. Measured in local currencies, revenue slipped by 2.3% despite continued growth in the Middle East and parts of Africa. Daily volumes grew by 2.4% compared with last year, mainly supported by volume gains in the Time Definite Domestic and Day Definite International products.
The restructuring of our express business continued to make progress, especially in the US where all domestic business was ceased. Restructuring continues on a smaller scale in all other regions. Outside the US, underlying EBIT decreased from €229 million to €66 million. This is largely due to an overall weakening in our high-earning international express product, Time Definite International. We are counteracting this trend in part through cost reduction initiatives. Furthermore, the prior-year figure was 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 finance costs/net financial income. Operating cash flow, which includes net cash used for restructuring and the losses in the US, fell year-on-year from €−20 million to €−385 million.
In the first quarter of 2009, the overall decline in global trade left its mark on our freight forwarding business. Revenue decreased by 18.2% to €2,660 million (previous year: €3,250 million). This figure includes exchange rate gains of €8 million. Organically, our revenue fell by 18.4%.
Revenue in the Global Forwarding Business Unit diminished year-on-year by 18.6%, from €2,356 million to €1,917 million. The decrease was 19.8% after adjustment for currency effects. By optimising transport purchases, we were able to limit the drop in gross profit, which fell 4.8% from €518 million to €493 million. Profit from operating activities (EBIT) declined compared with the previous year in line with the underlying economic situation.
Air freight volumes (exports) were 26.2% lower than in the first quarter of 2008, mainly due to the sharp decline in the technology sector. The significant volume drop was reflected in the market as a whole. Our business volumes in the Middle East and Africa continued to show good results, however.
| Total | 2,356 | 1,917 | −18.6 |
|---|---|---|---|
| Other | 379 | 360 | −5.0 |
| Ocean freight | 758 | 656 | −13.5 |
| Air freight | 1,219 | 901 | −26.1 |
| Q1 2008 | Q1 2009 | +/– % | |
| €m |
| thousands | ||||
|---|---|---|---|---|
| Q1 2008 | Q1 2009 | +/– % | ||
| Air freight | Tonnage | 1,068 | 773 | −27.6 |
| of which exports | Tonnage | 607 | 448 | −26.2 |
| Ocean freight | TEU1) | 639 | 575 | −10.0 |
1) Twenty-foot equivalent units.
In the ocean freight market, volumes continued to decline, falling 16% compared with the first quarter of 2008. All in all, we outperformed the market with a volume decrease of 10% in the reporting period. Revenue fell by 13.5% as a result of lower rates. In spite of this, our business trends in the Middle East, Africa, Latin America and South Asia/Pacific were encouraging.
The industrial project business continued to perform well in the first quarter of 2009, surpassing the prior-year period.
The Freight Business Unit reported a decline in organic revenue of 15.5% to €762 million in the period under review (previous year: €925 million). Gross profit fell year-on-year to €209 million. Countries which depend heavily on the technology and automotive sectors registered especially sharp declines.
Division EBIT amounted to €45 million (previous year: €78 million). This figure includes restructuring costs of around €5 million. The prior-year figure was 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 finance costs/net financial income. We are consistently optimising operating and overhead costs to ensure that gross profit will translate into EBIT gains in the short term.
One of our main focuses of the past year was optimising operating cash flow. Our efforts in this area continued unabated in the initial months of 2009. Operating cash flow increased to €252 million in the period under review (previous year: €170 million). This improvement was largely attributable to the Global Forwarding Business Unit. The very positive trend in working capital also helped to compensate for weak earnings; as a result the cash conversion rate was extremely good.
As part of the new brand architecture, we renamed the SUPPLY CHAIN/CORPO-RATE INFORMATION SOLUTIONS Division. It is now called the SUPPLY CHAIN Division and houses the Supply Chain and Williams Lea (previously Corporate Information Solutions) business units.
In the first quarter of 2009, the division generated revenue of €3,145 million (previous year: €3,347 million), representing a 6% decline. Adjusted for adverse currency effects of €117 million, organic revenue fell by 2.4%. This was caused by declining business in the Supply Chain Business Unit, primarily in the Americas and continental Europe. Williams Lea increased organic revenue by 6% on account of the positive development in service centre and courier logistics in Germany as well as additional business in document solutions and marketing solutions in the UK.
In the Supply Chain Business Unit, we gained new contracts worth around €300 million in annualised revenue with new and existing customers in the first quarter, slightly ahead of the prior year. The contract renewal rate continues to exceed 90%.
Profit from operating activities (EBIT) was €34 million in the period under review (previous year: €34 million). The prior-year figure was 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 finance costs/net financial income. Projects aimed at increasing efficiency as well as restructuring efforts led to overhead savings that helped to offset the modest decline in revenue and keep reported EBIT in line with the first quarter of 2008. The return on sales was 1.1% (previous year: 1.0%). Adjusted for restructuring costs of €8 million, EBIT before non-recurring items in the first quarter improved by 23.5%, which reflects a 1.3% return on sales.
Operating cash flow was €35 million (previous year: €8 million). Working capital was reduced by making a beneficial change to average debtor and creditor days. This led to improved cash flow.
SUPPLY CHAIN, Q1 2009: revenue by region
| A | 66 % Europe/Middle East/Africa |
|---|---|
| B | 27 % Americas |
| C | 7 % Asia Pacific |
| Total revenue: €3,145 million | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| A | 24 % Retail and fashion | ||||||||
| B | 23 % Consumer goods | ||||||||
| C | 13 % Technology | ||||||||
| D | 13 % Healthcare | ||||||||
| E | 22 % Chemicals/Williams Lea sectors/ other |
||||||||
| F | 5 % Automotive |
The average number of employees (full-time equivalents) decreased in the first three months of 2009 by 2.3% compared with the previous year's average to 446,100. The restructuring of the US express business was the main reason for this.
As a service provider, Deutsche Post DHL does not undertake any research and development activities in the narrower sense and thus does not report significant expenses in this area.
In times of economic crisis such as these, the Group's risk management grows in importance. The system we use to identify, measure and manage opportunities and risks at an early stage is an integral part of our controlling processes. Managers in all divisions and regions provide an estimate of our opportunities and risks on a quarterly basis and document relevant actions. Information on the fundamentals of our risk management system and the significant risks affecting our earnings, financial position, and assets and liabilities are found in the 2008 Annual Report beginning on page 85.
The global economic crisis is having a marked effect on our business activities. We anticipate declines in revenue and margins in our divisions depending on the cyclical nature of their business. As described in our 2008 Annual Report, we are reducing any resulting financial impacts with our extensive cost-cutting programme.
On 23 April 2009, the European Court of Justice handed down its ruling on the case of Royal Mail in the United Kingdom and its value-added tax exemption. Europe's highest court ruled conclusively that universal postal services, which a company is obligated to provide, must be exempt from value-added tax even in a liberalised postal market.
In the first quarter of 2009, no further significant risks arose apart from those described in detail in the 2008 Annual Report. In our estimation, neither the sum of all risks nor any individual risk represents a threat to the company's ability to continue as a going concern.
At the Annual General Meeting of Deutsche Post AG held on 21 April 2009, around 2,000 shareholders approved the resolutions proposed by the Board of Management and the Supervisory Board by large majorities. Amongst other issues, the shareholders resolved to pay a dividend of €0.60 per share for financial year 2008. The total dividend therefore amounts to €725 million. Based on the year-end closing price of our shares, the net dividend yield is 5%. The dividend was distributed on 22 April 2009 and is tax-free for shareholders living in Germany. The Board of Management was authorised to buy back own shares totalling as much as 10% of the existing share capital. For the first time, shares may also be purchased using derivatives. In addition, shareholders authorised the company to increase its share capital by up to €240 million by issuing up to 240 million shares. The Annual General Meeting further provided its vote of confidence in the Board of Management and the Supervisory Board in financial year 2008 by a wide majority. Finally, the Annual General Meeting elected the following persons to the Supervisory Board: Dr Ulrich Schröder, Chairman of the Board of Managing Directors of KfW Bankengruppe; Prof. Dr Henning Kagermann, CEO of SAP AG; and Dr Stefan Schulte, Vice Chairman of the Executive Board of Fraport AG.
The International Monetary Fund (IMF) is forecasting a decline in global economic output of 1.3% in 2009. Global trade will be affected by the recession to an even greater extent: The World Trade Organisation is projecting a decrease in trade volume of 9% compared with 2008.
In the United States, economic output is expected to decrease perceptibly in the first half of the year. Forecasts range from a moderate economic recovery in the second half of the year to a sustained weak phase. The IMF anticipates a GDP decline of 2.8% year-on-year.
Japan is one of the countries most affected by the global recession. GDP is likely to drop massively in 2009 (IMF: –6.2%). In China, whilst the pace of growth is expected to slow considerably in the current year, in comparison with other countries and regions economic momentum will remain high (IMF: 6.5%).
Economic output in the euro zone will likewise shrink markedly in 2009 (IMF: –4.2%). A notable strain on output will presumably come from exports. However, the economic recovery programmes initiated in many countries – in combination with the expansive monetary policy of the ECB – offer prospects of a stabilisation of the economy or even a moderate recovery in the second half of the year.
German GDP is likely to see a sharp decrease of almost 5% to 6% (German Institute for Economic Research, DIW: –4.9%; IMF: –5.6%; economic research institutes: –6%) in 2009. Exports, which are suffering heavily from the collapse in world trade, will represent the greatest drain on the economy. Private consumption, on the other hand, could remain stable.
For the remainder of 2009 we intend to continue the investment projects already begun as well as those specified in the 2008 Annual Report (see Outlook). As outlined there, we plan substantially lower capital expenditure in 2009.
In the first quarter of 2009, we saw a significant drop in volumes around the Group. We may now be reaching the bottom in terms of volume decline and, if this is the case, we would expect to see increasing benefit in the second half of the year and in 2010 from our cost reduction programme. In particular in the EXPRESS Division, the good progress in the US express business will support the improvement in the second half of the year. This should lead to underlying Group EBIT showing significantly lower reductions relative to 2008 than we have seen in the first quarter of 2009 and expect to see also in the second quarter.
The positive effects from the Postbank transaction should lead to a return to a positive net profit in 2009 as a whole – a substantial improvement on 2008.
We describe the Group's economic opportunities in the 2008 Annual Report starting on page 98.
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This interim report contains forward-looking statements that relate to the business, financial performance and results of operations of Deutsche Post AG. Forward-looking statements are not historical facts and may be identified 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 reflect events or circumstances after the date of this interim report.
| 2008 | 2009 | ||
|---|---|---|---|
| restated1) | |||
| Continuing operations | |||
| Revenue | €m | 13,209 | 11,505 |
| Other operating income | €m | 481 | 393 |
| Total operating income | €m | 13,690 | 11,898 |
| Materials expense | €m | –7,436 | –6,388 |
| Staff costs | €m | –4,392 | –4,246 |
| Depreciation, amortization and impairment losses | €m | –359 | –368 |
| Other operating expenses | €m | –964 | –869 |
| Total operating expenses | €m | –13,151 | –11,871 |
| Profit from operating activities (EBIT) | €m | 539 | 27 |
| Net income from associates | €m | 2 | 20 |
| Other financial income | €m | 22 | 1,105 |
| Other finance costs | €m | –167 | –512 |
| Foreign currency result | €m | –4 | 5 |
| Net other finance costs/net other financial income | €m | –149 | 598 |
| Net finance costs/net financial income | €m | –147 | 618 |
| Profit before income taxes | €m | 392 | 645 |
| Income tax expense | €m | –53 | –129 |
| Profit from continuing operations | €m | 339 | 516 |
| Discontinued operations | |||
| Profit from discontinued operations | €m | 118 | 432 |
| Consolidated net profit for the period | €m | 457 | 948 |
| attributable to | |||
| Deutsche Post AG shareholders | €m | 383 | 944 |
| Minorities | €m | 74 | 4 |
| Basic earnings per share | € | 0.32 | 0.78 |
| of which from continuing operations | € | 0.27 | 0.42 |
| of which from discontinued operations | € | 0.05 | 0.36 |
| Diluted earnings per share | € | 0.32 | 0.78 |
| of which from continuing operations | € | 0.27 | 0.42 |
| of which from discontinued operations | € | 0.05 | 0.36 |
1) Note 4.
€m
| 2008 | 2009 | |
|---|---|---|
| Consolidated net profit for the period | 4571) | 948 |
| Currency translation reserve | ||
| Changes from unrealised gains and losses | –344 | 290 |
| Changes from realised gains and losses | 0 | –31 |
| Other changes in retained earnings | ||
| Changes from unrealised gains and losses | –7 | 0 |
| Changes from realised gains and losses | 0 | 0 |
| Hedging reserve | ||
| Changes from unrealised gains and losses | –16 | 15 |
| Changes from realised gains and losses | 0 | 0 |
| Revaluation reserve in accordance with IAS 39 | ||
| Changes from unrealised gains and losses | –840 | 641 |
| Changes from realised gains and losses | –15 | –278 |
| Revaluation reserve in accordance with IFRS 3 | ||
| Changes from unrealised gains and losses | 0 | 1 |
| Changes from realised gains and losses | 0 | 0 |
| Income tax relating to components of other comprehensive income | 217 | –20 |
| Total other comprehensive income (after tax) | –1,005 | 618 |
| Total comprehensive income | –548 | 1,566 |
| attributable to | ||
| Deutsche Post AG shareholders | –282 | 1,593 |
| Minorities | –266 | –27 |
1) Note 4.
€m
| 31 Dec. 2008 31 March 2009 | ||
|---|---|---|
| ASSETS | ||
| Intangible assets | 11,627 | 11,814 |
| Property, plant and equipment | 6,676 | 6,586 |
| Investment property | 32 | 33 |
| Investments in associates | 61 | 1,632 |
| Other non-current financial assets | 574 | 538 |
| Non-current financial assets | 635 | 2,170 |
| Other non-current assets | 514 | 1,544 |
| Deferred tax assets | 1,033 | 653 |
| Non-current assets | 20,517 | 22,800 |
| Inventories | 269 | 251 |
| Income tax assets | 191 | 204 |
| Receivables and other assets | 8,715 | 8,981 |
| Financial instruments | 50 | 2,563 |
| Cash and cash equivalents | 1,350 | 3,511 |
| Assets held for sale | 231,872 | 49 |
| Current assets | 242,447 | 15,559 |
| Total assets | 262,964 | 38,359 |
| EQUITY AND LIABILITIES | ||
| Issued capital | 1,209 | 1,209 |
| Other reserves | 439 | 1,088 |
| Retained earnings | 6,178 | 7,122 |
| Equity attributable to Deutsche Post AG shareholders | 7,826 | 9,419 |
| Minority interest | 2,026 | 122 |
| Equity | 9,852 | 9,541 |
| Provisions for pensions and other employee benefits | 4,685 | 4,680 |
| Deferred tax liabilities | 833 | 524 |
| Other non-current provisions | 2,511 | 2,541 |
| Non-current provisions | 8,029 | 7,745 |
| Non-current financial liabilities | 3,318 | 7,163 |
| Other non-current liabilities | 367 | 351 |
| Non-current liabilities | 3,685 | 7,514 |
| Non-current provisions and liabilities | 11,714 | 15,259 |
| Current provisions | 2,807 | 2,610 |
| Current financial liabilities | 779 | 300 |
| Trade payables | 4,980 | 4,415 |
| Income tax liabilities | 351 | 344 |
| Other current liabilities | 4,745 | 5,890 |
| Liabilities associated with assets held for sale | 227,736 | 0 |
| Current liabilities | 238,591 | 10,949 |
| Current provisions and liabilities | 241,398 | 13,559 |
| Total equity and liabilities | 262,964 | 38,359 |
| €m | 2008 | 2009 |
|---|---|---|
| restated1) | ||
| Net profit before taxes | 392 | 645 |
| Net other finance costs/net other financial income | 149 | –598 |
| Net income from associates | –2 | –20 |
| Profit from operating activities (EBIT) | 539 | 27 |
| Depreciation/amortization of non-current assets | 359 | 368 |
| Net income from disposal of non-current assets | –26 | –9 |
| Non-cash income and expense | 14 | 20 |
| Change in provisions | –106 | –343 |
| Change in other assets and liabilities | –2 | –7 |
| Income taxes paid | –52 | –83 |
| Net cash from/used in operating activities before changes in working capital | 726 | –27 |
| Changes in working capital | ||
| Inventories | –10 | 24 |
| Receivables and other assets | –359 | 259 |
| Liabilities and other items | –216 | –531 |
| Net cash from/used in operating activities due to continuing operations | 141 | –275 |
| Net cash used in operating activities due to discontinued operations | –1,610 | –1,828 |
| Total net cash used in operating activities | –1,469 | –2,103 |
| Proceeds from disposal of non-current assets | ||
| Subsidiaries and other business units | 0 | 0 |
| Property, plant and equipment and intangible assets | 267 | 63 |
| Other non-current financial assets | 41 | 34 |
| 308 | 97 | |
| Cash paid to acquire non-current assets | ||
| Subsidiaries and other business units | –93 | –17 |
| Property, plant and equipment and intangible assets | –345 | –231 |
| Other non-current financial assets | –11 | –14 |
| –449 | –262 | |
| Interest received | 15 | 29 |
| Postbank dividend | 0 | 0 |
| Current financial instruments | –11 | –987 |
| Net cash used in investing activities due to continuing operations | –137 | –1,123 |
| Net cash from/used in investing activities due to discontinued operations | 542 | –1,253 |
| Total net cash from/used in investing activities | 405 | –2,376 |
| Proceeds from issuance of non-current financial liabilities | 14 | 3,960 |
| Repayments of non-current financial liabilities | –137 | –45 |
| Change in current financial liabilities | 144 | –535 |
| Other financing activities | 41 | 20 |
| Dividend paid to Deutsche Post AG shareholders | 0 | 0 |
| Dividend paid to other shareholders | –5 | 0 |
| Issuance of shares under stock option plan | 10 | 0 |
| Interest paid | –136 | –110 |
| Net cash used in/from financing activities due to continuing operations | –69 | 3,290 |
| Net cash from financing activities due to discontinued operations | 128 | 7 |
| Total net cash from financing activities | 59 | 3,297 |
| Net change in cash and cash equivalents | –1,005 | –1,182 |
| Effect of changes in exchange rates on cash and cash equivalents | –37 | 31 |
| Changes in cash and cash equivalents associated with assets held for sale | 0 | 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 | 3,641 | 3,511 |
| Less cash and cash equivalents of discontinued operations at end of reporting period | 2,414 | 0 |
| Plus cash and cash equivalents of continuing operations at discontinued operations at end of reporting period | 10 | 0 |
| Cash and cash equivalents of continuing operations at end of reporting period | 1,237 | 3,511 |
28
| €m | Other reserves | Equity | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Currency | attributable to | ||||||||
| Issued | Capital | IAS 39 | Revaluation | translation | Retained | Deutsche Post | Minority | ||
| capital | reserves | reserves | reserve | reserve | earnings | AG shareholders | interest | Total equity | |
| Balance at 1 January 2008 | 1,207 | 2,119 | –347 | 0 | –897 | 8,953 | 11,035 | 2,778 | 13,813 |
| Capital transactions with owner | |||||||||
| Capital contribution from retained earnings | 0 | 0 | |||||||
| Dividend | 0 | –5 | –5 | ||||||
| Changes in minority interest due | |||||||||
| to changes in consolidated group | 0 | 0 | |||||||
| Stock option plans (exercise) | 1 | 9 | 10 | 10 | |||||
| Stock option plans (issuance) | 2 | 2 | 2 | ||||||
| 12 | –5 | 7 | |||||||
| Other comprehensive income | |||||||||
| Consolidated net profit 1) | 383 | 383 | 74 | 457 | |||||
| Currency translation differences | –322 | –322 | –22 | –344 | |||||
| Other changes | –336 | –7 | –343 –282 |
–318 –266 |
–661 –548 |
||||
| Balance at 31 March 2008 | 1,208 | 2,130 | –683 | 0 | –1,219 | 9,329 | 10,765 | 2,507 | 13,272 |
| 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 | |||||||||
| Capital contribution from retained earnings | 0 | 0 | |||||||
| Dividend | 0 | –8 | –8 | ||||||
| Changes in minority interest due | |||||||||
| to changes in consolidated group Stock option plans (exercise) |
0 0 |
–1,869 | –1,869 0 |
||||||
| Stock option plans (issuance) | 0 | 0 | |||||||
| 0 | –1,877 | –1,877 | |||||||
| Other comprehensive income | |||||||||
| Consolidated net profit | 944 | 944 | 4 | 948 | |||||
| Currency translation differences | 246 | 246 | 13 | 259 | |||||
| Other changes | 402 | 1 | 403 | –44 | 359 | ||||
| 1,593 | –27 | 1,566 | |||||||
| Balance at 31 March 2009 | 1,209 | 2,142 | 88 | 9 | –1,151 | 7,122 | 9,419 | 122 | 9,541 |
1) Note 4.
| €m | Forwarding | Global , |
Corporate Center/ | Continuing | Discontinued | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MAIL1) | Express 1) |
Freight 1) |
Supply | Chain 1) |
Other1) | Consolidation1) | operations1) | operations | ||||||||
| 1 January to 31 March | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 |
| External revenue | 3,592 | 3,443 | 3,230 | 2,422 | 3,056 | 2,502 | 3,308 | 3,117 | 23 | 21 | 0 | 0 13,209 11,505 | 2,749 | 1,634 | ||
| Internal revenue | 57 | 43 | 137 | 73 | 194 | 158 | 39 | 28 | 368 | 376 | –795 | –678 | 0 | 0 | 0 | 0 |
| Total revenue | 3,649 | 3,486 | 3,367 | 2,495 | 3,250 | 2,660 | 3,347 | 3,145 | 391 | 397 | –795 | –678 13,209 11,505 | 2,749 | 1,634 | ||
| Profit/loss from operating activities (EBIT) |
546 | 407 | 8 | –392 | 78 | 45 | 34 | 34 | –127 | –67 | 0 | 0 | 539 | 27 | 188 | –24 |
| Net income from associates | 0 | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 20 | 0 | 0 | 2 | 20 | 0 | 0 |
| Segment assets 2) | 3,683 | 4,083 | 8,878 | 8,658 | 6,887 | 6,675 | 6,460 | 6,295 | 1,345 | 1,311 | –401 | –282 26,852 26,740 227,364 | 0 | |||
| Investments in associates 2) | 22 | 22 | 32 | 34 | 6 | 6 | 0 | 0 | 1 | 1,570 | 0 | 0 | 61 | 1,632 | 0 | 0 |
| Segment liabilities 2),3) | 2,412 | 2,394 | 3,149 | 2,892 | 2,305 | 2,185 | 2,900 | 2,657 | 1,294 | 1,215 | –421 | –324 11,639 11,019 218,730 | 0 | |||
| Capex | 26 | 47 | 150 | 74 | 17 | 18 | 118 | 60 | 33 | 42 | 0 | 0 | 344 | 241 | 17 | 7 |
| Depreciation, amortization and write-downs |
88 | 84 | 104 | 111 | 23 | 27 | 81 | 80 | 63 | 66 | 0 | 0 | 359 | 368 | 34 | 0 |
| Other non-cash expenses | 38 | 80 | 46 | 202 | 14 | 17 | 27 | 24 | 40 | 26 | 0 | 0 | 165 | 349 | 117 | 114 |
| Employees 4) | 146,184 145,493 112,420 103,753 | 41,602 41,407 141,060 140,175 15,450 15,272 | 0 | 0 456,716 446,100 22,175 | 0 |
| €m | Europe excluding | Continuing | Discontinued | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany1) | Germany1) | Americas1) | Asia Pacific1) | Other regions1) | operations1) | operations | ||||||||
| 1 January to 31 March | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 |
| External revenue | 4,197 | 4,058 | 4,903 | 4,106 | 2,328 | 1,668 | 1,416 | 1,260 | 365 | 413 | 13,209 | 11,505 | 2,749 | 1,634 |
| Non-current assets 2) | 3,997 | 3,927 | 7,598 | 7,585 | 3,294 | 3,395 | 2,968 | 3,034 | 584 | 598 | 18,441 | 18,539 | 2,373 | 0 |
| Capex | 90 | 91 | 140 | 85 | 53 | 40 | 48 | 16 | 13 | 9 | 344 | 241 | 17 | 7 |
1) Prior-period amounts restated, Notes 4 and 12.
2) As at 31 December 2008 and 31 March 2009.
3) Including non-interest-bearing provisions.
4) Average FTE.
Deutsche Post AG is a listed corporation domiciled in Germany.
The accompanying condensed consolidated interim financial statements as at 31 March 2009 were prepared in accordance with the International Financial Reporting Standards (IFRS) and related interpretations issued by the International Accounting Standards Board (IASB) for interim financial reporting, as adopted by the European Union. These interim financial statements thus include all information and disclosures required by IFRS to be presented in condensed interim financial statements.
Preparation of the condensed consolidated interim financial statements for interim financial reporting in accordance with IAS 34 requires the Board of Management to exercise judgement and make estimates and assumptions that affect the application of accounting policies in the Group and the presentation of assets, liabilities, income and expenses. Actual amounts may differ from these estimates. The results obtained thus far in financial year 2009 are not necessarily an indication of the further development of the course of business.
The accounting policies applied to the condensed consolidated interim financial statements are generally based on the same accounting policies used in the consolidated financial statements for financial year 2008, with the exception of the new/amended accounting pronouncements required to be applied since financial year 2009.
With the application of IAS 1 (Presentation of Financial Statements) (revised 2007), the consolidated interim financial statements contain, in addition to the income statement, a statement beginning with profit or loss and displaying components of other comprehensive income.
IFRS 8 (Operating Segments) was applied for the first time; further details can be found in Note 12.
The following Standards, Amendments to Standards, and Interpretations are also required to be applied as of 1 January 2009, but do not have any material effect on the consolidated interim financial statements:
For further information on the accounting policies applied, please refer to the 2008 Annual Report, Note 7, on which these interim financial statements are based.
This interim report has not been audited.
In addition to Deutsche Post AG as the Group parent, the consolidated group generally includes all German and foreign entities in which Deutsche Post AG directly or indirectly holds a majority of voting rights, or whose activities it is otherwise able to control.
| 31 Dec. 2008 31 March 2009 | ||
|---|---|---|
| Number of fully consolidated companies (subsidiaries) | ||
| German | 106 | 79 |
| Foreign | 854 | 832 |
| Number of proportionately consolidated joint ventures |
||
| German | 1 | 1 |
| Foreign | 18 | 18 |
| Number of equity-accounted companies (associates) | ||
| German | 3 | 30 |
| Foreign | 12 | 30 |
The changes in the consolidated group are the result of the discontinuation of full consolidation of the Deutsche Postbank Group as of the end of February 2009 and its inclusion as an equityaccounted associate as of March 2009.
The final purchase price allocation of Polar Air Cargo Worldwide Inc. (Polar Air), USA, which has been fully consolidated since November 2008, will be presented in a later period as not all necessary information is available at present (see also 2008 Annual Report, Note 2).
No significant acquisitions were made in the first quarter of 2009. In February 2009, Deutsche Post DHL acquired Wegener Post B.V. (Wegener Post), the Netherlands, which exclusively holds a 49% interest in Deutsche Post Selekt Mail Nederland C.V. (Selekt Mail). The purchase price was €4 million. Following the purchase, Deutsche Post DHL's interest in Selekt Mail increased to 100%. Wegener Post B.V. is not included in consolidation. Since Selekt Mail was already fully consolidated, the purchase did not have any effect on consolidated revenue and consolidated EBIT. Goodwill for Selekt Mail rose by €6 million.
In the period ended 31 March 2009, €17 million was spent on acquiring subsidiaries, less the cash and cash equivalents acquired (previous year: €93 million). Of this amount, €4 million was attributable to the acquisition of Wegener Post, €8 million to the final instalment for the acquisition of Polar Air and €5 million to an advance payment for the planned acquisition of a Chinese company. The purchase prices of the acquired companies were paid by transferring cash and cash equivalents.
At the end of February 2009, Deutsche Post DHL and Deutsche Bank AG completed the transaction they agreed regarding the sale of shares in Deutsche Postbank AG as planned. As agreed, the volume of the two initial tranches amounts to €3.8 billion; however, Deutsche Post has already received a further €1.1 billion in cash in addition to the €3.1 billion transferred in January. The difference to the cash amounts originally expected on closing is due to hedging effects. The cash value of the entire transaction remains unchanged at €4.9 billion.
As part of the first tranche of the overall transaction (acquisition of 50 million Postbank shares – corresponding to a 22.9% stake – by Deutsche Bank), Deutsche Post DHL received 50 million Deutsche Bank shares from a non-cash capital increase by Deutsche Bank. As of the entry of the capital increase in the commercial register, Deutsche Post AG held around 8% of the shares in Deutsche Bank. This first tranche affected earnings in the first quarter of 2009 by €231 million; this amount is contained in the profit from discontinued operations and in net finance costs/net financial income. Additional earnings effects from the disposal of the Deutsche Bank shares belonging to the first tranche of the overall transaction will be recognised in the second quarter of 2009.
As part of the overall transaction, and in a second tranche, Deutsche Bank fully subscribed for a mandatory exchangeable bond issued by Deutsche Post. After three years, this bond – including interest payments accrued – will be exchanged for 60 million Postbank shares, or a 27.4% stake. This mandatory exchangeable bond is recognised under non-current financial liabilities in the amount of €2.6 billion. In addition, interest expense of €11 million was charged in the past quarter on the amount received. In accordance with IAS 39.2 (g), the forward sale of 27.4% of the shares of Postbank contained in the mandatory exchangeable bond was not recognised or measured.
In addition, net finance costs/net financial income for the past quarter contains non-recurring income (at the time of initial recognition) of €944 million from the measurement of the third tranche of the overall transaction. In this tranche, Deutsche Post DHL and Deutsche Bank agreed on options for the sale/purchase of a further 12.1% of the Postbank shares. These options cannot be exercised until February 2012 at the earliest.
The restructuring costs for the domestic US express business in the first quarter of 2009 amounted to €245 million.
The following table gives an overview of the impact of significant non-recurring items on profit from operating activities (EBIT) in the first quarter of 2009:
| Q1 2009 |
|---|
| 312 |
| –245 |
| –40 |
| 27 |
The sale of the shares in Deutsche Postbank to Deutsche Bank was completed at the end of February 2009. The profit attributable to Deutsche Postbank Group, which until that time had been reported in accordance with IFRS 5 as assets held for sale and discontinued operations, is still reported separately in the income statement for the months of January and February 2009 as profit from discontinued operations. Effective March 2009, the profit attributable to the remaining 39.5% interest in Postbank is reported under net income from associates.
Moreover, since January 2009 the expected return on plan assets has been reported together with the interest component of pension expenses under net finance costs/net financial income. The prior-year figures were adjusted accordingly.
Effective January 2009, the effects of currency translation differences and related hedging effects are reported separately in net finance costs/net financial income. The prior-year figures were restated accordingly.
In addition, the carrying amount of interperiod deferred staff costs was changed. This did not have any effect on net income for the full year. The prior-year figures were restated accordingly.
| €m | Reclassification | Reclassifica | ||||
|---|---|---|---|---|---|---|
| of Deutsche | Reclassifica | tion of current | ||||
| Postbank | tion of return | Deferred | translation | 2008 | ||
| 2008 | Group 1) |
on plan assets | staff costs | effects | restated | |
| Total revenue | 15,748 | –2,539 | – | – | – | 13,209 |
| Other operating income | 479 | 2 | – | – | – | 481 |
| Materials expense | –9,191 | 1,755 | – | – | – | –7,436 |
| Staff costs | –4,583 | 324 | –103 | –30 | – | –4,392 |
| Depreciation, amortisation and impairment losses | –393 | 34 | – | – | – | –359 |
| Other operating expenses | –1,209 | 245 | – | – | – | –964 |
| Net other finance costs | –265 | 13 | 103 | – | – | –149 |
| Foreign currency result | – | – | – | – | –4 | –4 |
| Other financial income | 474 | – | – | – | –452 | 22 |
| Other finance costs | –739 | 13 | 103 | – | 456 | –167 |
| Income taxes | –108 | 50 | – | 5 | – | –53 |
| Profit/ loss from continuing operations | 480 | –116 | – | –25 | – | 339 |
| Profit from discontinued operations | – | 118 | – | – | – | 118 |
1) The reclassification of the amounts attributable to the Deutsche Postbank Group in accordance with IFRS 5 also contains the adjustment of the prior-year figure due to a restatement, see 2008 Annual Report, Note 5.
| €m | Q1 2008 | Q1 2009 |
|---|---|---|
| restated 1) | ||
| Income from currency translation differences | 96 | 66 |
| Rental and lease income | 37 | 43 |
| Insurance income | 38 | 38 |
| Income from derivatives | 9 | 37 |
| Income from fees and reimbursements | 32 | 32 |
| Income from work performed and capitalised | 20 | 22 |
| Reversals of impairment losses on receivables | ||
| and other assets | 13 | 20 |
| Income from the reversal of provisions | 27 | 19 |
| Income from prior-period billings | 14 | 11 |
| Income from the derecognition of liabilities | 23 | 11 |
| Gains on disposal of non-current assets | 43 | 11 |
| Income from loss compensation | 5 | 5 |
| Commission income | 5 | 2 |
| Recoveries on receivables previously written off | 2 | 2 |
| Subsidies | 3 | 1 |
| Miscellaneous | 114 | 73 |
| Total | 481 | 393 |
1) Reclassification of the amounts attributable to the Deutsche Postbank Group in accordance with IFRS 5, see 2008 Annual Report, Note 5.
Miscellaneous other operating income includes a large number of smaller individual items.
| €m | Q1 2008 restated 1) |
Q1 2009 |
|---|---|---|
| Travel and training costs | 106 | 82 |
| Cost of purchased cleaning, transport | ||
| and security services | 72 | 71 |
| Warranty expenses, refunds and compensation payments |
79 | 70 |
| Other business taxes | 72 | 67 |
| Expenses from currency translation differences | 97 | 65 |
| Telecommunication costs | 67 | 65 |
| Write-downs of current assets | 48 | 62 |
| Office supplies | 47 | 46 |
| Voluntary social benefits | 32 | 36 |
| Consulting costs | 62 | 33 |
| Insurance costs | 28 | 30 |
| Entertainment and corporate hospitality expenses | 38 | 29 |
| Other public relations expenses | 39 | 21 |
| Expenses for public relations and customer support | 19 | 20 |
| Services provided by the Federal Posts | ||
| and Telecommunications Agency | 17 | 19 |
| Legal costs | 13 | 16 |
| Commissions paid | 13 | 15 |
| Advertising expenses | 27 | 15 |
| Contributions and fees | 11 | 13 |
| Expenses from derivatives | 18 | 10 |
| Prior-period other operating expenses | 15 | 10 |
| Audit costs | 7 | 7 |
| Monetary transaction costs | 8 | 6 |
| Donations | 16 | 0 |
| Miscellaneous | 13 | 61 |
| Total | 964 | 869 |
1) Reclassification of the amounts attributable to the Deutsche Postbank Group in accordance with IFRS 5, see 2008 Annual Report, Note 5.
Miscellaneous other operating expenses include a large number of smaller individual items.
Depreciation, amortisation and impairment losses include €7 million of impairment losses on property, plant and equipment in the US express business.
The change in miscellaneous net finance costs/net financial income is due to the measurement of the hedges on the Deutsche Bank shares and the measurement of the options for the third tranche of the agreement entered into by Deutsche Post and Deutsche Bank.
In accordance with IFRS 5, the profit of the Deutsche Postbank Group for the months of January and February 2009 is reported in the income statement under profit from discontinued operations.
| €m | ||
|---|---|---|
| Q1 2008 | Q1 2009 | |
| Revenue and operating income | 2,791 | 1,607 |
| Operating expenses | –2,603 | –1,631 |
| Profit/loss from operating activities (EBIT) | 188 | –24 |
| Net finance costs | –19 | –13 |
| Profit/loss before taxes from discontinued operations |
169 | –37 |
| Attributable tax expense | –51 | 25 |
| Profit/loss after taxes from discontinued operations |
118 | –12 |
| Deconsolidation effects | – | 444 |
| Profit from discontinued operations | 118 | 432 |
The effects resulting from the deconsolidation of the interest of 22.85% are reported under profit from discontinued operations.
Effective March 2009, the remaining shares in the Deutsche Postbank Group are reported at the equity-method carrying amount under financial assets, whilst the profit is reported under net income from associates.
Basic earnings per share in the period under review were €0.78.
| Q1 2008 restated 1) |
Q1 2009 | ||
|---|---|---|---|
| Consolidated net profit for the period attributable to Deutsche Post AG shareholders |
€m | 383 | 944 |
| Weighted average number of shares outstanding |
shares 1,208,045,980 1,209,015,874 | ||
| Basic earnings per share | € | 0.32 | 0.78 |
| of which from continuing operations | € | 0.27 | 0.42 |
| of which from discontinued operations | € | 0.05 | 0.36 |
1) Restatement by the Deutsche Postbank Group and change in deferral of staff costs.
Diluted earnings per share for the reporting period were €0.78. There were 2,700,010 stock options for executives at the reporting date, none of which were dilutive.
| Q1 2008 restated 1) |
Q1 2009 | ||
|---|---|---|---|
| Consolidated net profit for the period attributable to Deutsche Post AG shareholders |
€m | 383 | 944 |
| Weighted average number of shares outstanding |
shares 1,208,045,980 1,209,015,874 | ||
| Potentially dilutive shares | shares | 1,880,545 | 0 |
| Weighted average number of shares for diluted earnings |
shares 1,209,926,525 1,209,015,874 | ||
| Diluted earnings per share | € | 0.32 | 0.78 |
| of which from continuing operations | € | 0.27 | 0.42 |
| of which from discontinued operations | € | 0.05 | 0.36 |
1) Restatement by the Deutsche Postbank Group and change in deferral of staff costs.
11 Assets held for sale, liabilities associated with assets held for sale
| €m | Assets | Liabilities | ||
|---|---|---|---|---|
| 31 Dec. 2008 31March 2009 | 31 Dec. 2008 31March 2009 | |||
| Deutsche Postbank Group |
231,824 | 0 | 227,736 | 0 |
| Deutsche Post AG – real estate |
31 | 30 | 0 | 0 |
| DHL Supply Chain, Spain – buildings |
15 | 16 | 0 | 0 |
| Other | 2 | 3 | 0 | 0 |
| Assets held for sale, liabilities associated with assets held for sale |
231,872 | 49 | 227,736 | 0 |
The amounts attributable to the Deutsche Postbank Group were presented as assets held for sale and liabilities associated with assets held for sale in accordance with IFRS 5 as at 31 December 2008 and in the period up to and including 28 February 2009. As at 28 February 2009, 22.85% of the Deutsche Postbank Group was deconsolidated. Since 1 March 2009, the remaining 39.5% interest in the Deutsche Postbank Group has been reported under investments in associates in the financial assets item and accounted for using the equity method.
IFRS 8 (Segment Reporting) has been required to be applied since financial 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 offered and the brands, distribution channels and customer profiles involved. Components of the entity are defined 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.
The "Consolidation" column and the "Corporate Center/ Other" collective segment are reported separately. The collective segment comprises the activities of Global Business Services (GBS) and the Corporate Center as well as other non-operating activities and other business activities. The profit/loss generated by GBS is allocated to the other operating segments, whilst its assets and liabilities remain with GBS (asymmetrical allocation).
In keeping with internal reporting, capital expenditure (capex) is disclosed in place of the segment investments. The difference is that intangible assets are reported net of goodwill in the capex figure. The prior-year figures were restated because the LOGISTICS Division was reorganised into the GLOBAL FORWARDING, FREIGHT and SUPPLY CHAIN segments in the second quarter of 2008 and the Pension Service was reallocated from the FINANCIAL SERVICES segment to the MAIL Division in the third quarter of 2008.
The main geographical regions in which the Group is active are Germany, Europe, the Americas, Asia Pacific and Other regions. External revenue, non-current assets and capex are disclosed for these regions. Revenue is allocated to the individual regions on the basis of the location of the reporting entity. The prior-year figures were restated accordingly. Non-current assets primarily comprise intangible assets, property, plant and equipment and other noncurrent assets.
The Deutsche Postbank Group is reported as a discontinued operation for the months of January and February. As of March, the remaining shares are disclosed under investments in associates, whilst the net income from associates is reported in the column entitled "Corporate Center/Other". A separate reconciliation of the total profit generated by the reporting segments to consolidated net profit for the period was dispensed with; instead, reference is made to the income statement.
13 Share-based remuneration
The number of stock options and stock appreciation rights (SAR) under the 2003 Stock Option Plan changed as follows:
| Number | SOP 2003 |
|---|---|
| Tranche 2004 | |
| Outstanding options as at 1 January 2009 | 2,726,658 |
| Outstanding SAR as at 1 January 2009 | 232,568 |
| Stock options lapsed | 26,648 |
| SAR lapsed | 0 |
| Stock options exercised | 0 |
| SAR exercised | 0 |
| Outstanding stock options as at 31 March 2009 | 2,700,010 |
| Outstanding SAR as at 31 March 2009 | 232,568 |
As at 31 March 2009, provisions for the 2006 SAR Plan and the 2006 Long-Term Incentive Plan (2006 LTIP for the Board of Management) amounted to €7 million (31 December 2008: €10 million). No stock options were exercised in the first quarter due to the ongoing share price situation. The issed capital was unchanged as against 31 December 2008; it is composed of 1,209,015,874 no-par value registered shares.
There have been no material changes in related party disclosures as against 31 December 2008; see Note 56 in the 2008 Annual Report.
The Group's contingent liabilities have not changed significantly compared with 31 December 2008.
16 Other disclosures/Events after the balance sheet date At the end of April 2009, the Board of Management announced that negotiations with United Parcel Service (UPS) on a potential air freight agreement had been abandoned. DHL will continue to work together with the US air freight companies ABX Air and ASTAR Air Cargo with respect to the remaining transports of international express shipments within North America. In future, the main overnight-sorting facility in the US region will be located in Cincinnati/Northern Kentucky (CVG).
| 23 July 2009 | Press conference and investors conference on the fi rst half of 2009 | |
|---|---|---|
| 31 July 2009 | Interim report on the fi rst half of 2009 | |
| 5 November 2009 | Interim report on the fi rst nine months of 2009, investors conference call | |
| 1) For more information on other events, updates and details of live webcasts, please visit investors.dp-dhl.com. |
| 20 May 2009 | Wolfe Research Conference (New York) |
|---|---|
| 10 – 12 June 2009 | Exane BNP Paribas Conference (Paris) |
| 22 – 23 June 2009 | Goldman Business Services Conference (London) |
| 23 – 24 June 2009 | Deutsche Bank German Corporate Conference (Frankfurt am Main) |
| 14– 15 September 2009 | Sanford C. Bernstein's Strategic Decisions Conference (London) |
| 22 – 24 September 2009 | UniCredit German Investment Conference (Munich) |
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: investors.dp-dhl.com
GeT and DHL Webshop Mat. no. 675- 602- 213
Deutsche Post Foreign Language Services et al.
The English version of the Interim Report January to March 2009 of Deutsche Post AG 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.
Provided your mobile phone 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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