Annual Report • Mar 10, 2011
Annual Report
Open in ViewerOpens in native device viewer
| Deutsche Post DHL ITEM WEIGHT: 1,139G |
NUMBER OF PRGES: 234 PUBLISHED ON 10 MARCH 2011 BEING YOUR CHOICE |
|---|---|
| WWW.DP-DHL.COM | × Provider of choice $\times$ Investment of choice × Employer of choice |
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 470,000 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
| 01.1 Selected key fi gures (continuing operations) | |||||||
|---|---|---|---|---|---|---|---|
| 2009 | 2010 | + / – % | Q 4 2009 | Q 4 2010 | + / – % | ||
| Profi t from operating activities (ebit) | |||||||
| before non-recurring items | € m | 1,473 | 2,205 | 49.7 | 526 | 593 | 12.7 |
| Non-recurring items | € m | 1,242 | 370 | –70.2 | 662 | 68 | – 89.7 |
| Profi t / loss from operating activities (ebit) | € m | 231 | 1,835 | > 100 | –136 | 525 | – |
| Revenue | € m | 46,201 | 51,481 | 11.4 | 12,389 | 13,871 | 12.0 |
| Return on sales1) | % | 0.5 | 3.6 | – | –1.1 | 3.8 | – |
| Consolidated net profi t / loss 2) | € m | 644 | 2,541 | > 100 | –283 | 487 | – |
| Operating cash fl ow | € m | 1,244 | 1,927 | 54.9 | 974 | 1,025 | 5.2 |
| Net liquidity (–) / net debt (+) 3) | € m | –1,690 | –1,382 | –18.2 | – | – | – |
| Return on equity before taxes | % | 3.0 | 29.8 | – | – | – | |
| Earnings per share4) | € | 0.53 | 2.10 | > 100 | – 0.24 | 0.40 | – |
| Dividend per share | € | 0.60 | 0.655) | 8.3 | – | – | – |
| Number of employees6) | 436,651 | 421,274 | –3.5 | – | – | – | |
1) ebit / revenue. 2) Excluding non-controlling interests, including Postbank. 3) For the calculation please refer to page 49 of the Group Management Report. 4) Including Postbank. 5) Proposal. 6) Average fte s.
MAIL EXPRESS GLOBAL FORWARDING, FREIGHT SUPPLY CHAIN
WWW.DP-DHL.COM/EN/INVESTORS.HTML
Our Strategy 2015 has gained a foothold and we are on course to becoming the provider, investment and employer of choice. In all of our divisions, we offer customers services that make their lives easier and have lasting value. Investors can rely on our transparency, improved profi tability and organic growth and our employees receive attractive career development opportunities, a safe and healthy working environment and an inspiring exchange of ideas. We strive to be your choice on all counts.
| Provider of choice | |
|---|---|
| Investment of choice | |
| Employer of choice |
Corporate Center
| Board department | Chief Executive Offi cer | Finance, Global Business Services |
Personnel |
|---|---|---|---|
| Board member | Dr Frank Appel | Lawrence Rosen | Walter Scheurle |
| Functions | Corporate Offi ce Corporate Legal Corporate Executives Corporate Communications Corporate Development Corporate Regulation Management Corporate First Choice Corporate Public Policy and Responsibility Global Customer Solutions (gcs) hr dhl International dhl Solutions & Innovations (dsi) |
Corporate Controlling Corporate Accounting and Reporting Investor Relations Corporate Finance Corporate Internal Audit / Security Taxes Global Business Services (Group-wide services: Procurement, Real Estate, Finance Operations etc.) |
hr Standards Germany hr Guidelines Personnel and Labour Management hr mail |
| Board department | express | global forwarding, freight |
supply chain | ||
|---|---|---|---|---|---|
| Board member | Jürgen Gerdes | Ken Allen | Hermann Ude | Bruce Edwards | |
| Brand | Deutsche Post | dhl | dhl | dhl | dhl |
| Business units / regions | Mail Commu nication Dialogue Marketing Press Services Value-Added Services Retail Outlets Pension Service |
Global Mail Parcel Germany |
Europe Americas Asia Pacifi c eemea (Eastern Europe, the Middle East and Africa) |
Global Forwarding Freight |
Supply Chain Williams Lea |
Increase investments from € 1.17 billion (2009) to no more than € 1.3 billion.
Cash outfl ow due to measures implemented in 2009 of approximately € 1 billion.
1) Forecast increased over the course of the year.
ebit before non-recurring items Group: € 2.2 billion. mail division: € 1.15 billion.
dhl divisions: € 1.45 billion.
Corporate Center / Other: approximately €– 0.4 billion.
Net profi t excluding non-controlling interests: € 2.54 billion.
| Capital expenditure (capex) | |
|---|---|
| Invested: € 1.26 billion. |
Restructuring Cash outfl ow due to measures implemented in the previous year: € 0.8 billion.
Group: € 2.2 billion to € 2.4 billion. mail division: € 1.0 billion to € 1.1 billion. dhl divisions: € 1.6 billion to € 1.7 billion.
Corporate Center / Other: approximately € – 0.4 billion.
Continue to improve net profit before effects from the measurement of the Postbank instruments, in line with operating business.
Increase to no more than € 1.6 billion.
Revenue, particularly that of the dhl divisions, to increase by our expected mid-term growth rate of approximately 7 % to 9 %.
III
A GROUP MANAGEMENT REPORT 19
B CORPORATE GOVERNANCE 111
C CONSOLIDATED FINANCIAL STATEMENTS 137
Detailed table of contents
| The Group | I |
|---|---|
| Group Structure | II |
| Target-Performance Comparison | III |
| Being your Choice | 2 |
| Letter to our Shareholders | 15 |
| A | ||
|---|---|---|
| GROUP MANAGEMENT REPORT | 19 | |
| Business and Environment | 21 | |
| Deutsche Post Shares | 34 |
| Economic Position | 37 |
|---|---|
| Divisions | 50 |
| Non-Financial Performance Indicators | 70 |
| Further Developments | 87 |
| Outlook | 88 |
| B | CORPORATE GOVERNANCE | 111 |
|---|---|---|
| Report of the Supervisory Board | 113 | |
| Supervisory Board | 117 | |
| Board of Management | 118 | |
| Mandates held by the Board | ||
| of Management | 122 | |
| Mandates held by the Supervisory Board | 123 | |
| Corporate Governance Report | 124 |
| Index | 231 |
|---|---|
| Glossary | 232 |
| Graphs and Tables | 233 |
| Contacts | 234 |
| Multi-Year Review | IV |
| Events | VI |
The 66 million mail items delivered each working day in Germany make Deutsche Post the largest postal company in Europe. Every day, we win over customers with reliable quality, a formidable network, decades of experience and proximity. Innovative products round off our portfolio.
The e-Postbrief product, which we launched successfully in 2010 in Germany, is one of these innovations. The e-Postbrief brings secure, confidential and reliable communication to the internet.
| Security |
|---|
| Trust |
| Reliability |
Provided your mobile phone has Quick Recognition software, you can photograph this code to directly access further information on our website.
FURTHER INFORMATION: WWW.DP-DHL.COM/EN/MEDIA_RELATIONS/EVENTS/ PRESS_CONFERENCE_E-POSTBRIEF_LAUNCH.HTML
A consumer wishes to accept an offer from her insurance company and purchase household insurance.
She sends an e-Postbrief online to the insurance company.
By using e-Postbrief, the insurance company can be absolutely certain of the customer's identity. Both parties save time and benefit from simplified handling processes.
Even consumers use the e-Postbrief product to send documents quickly, securely, confidentially and reliably.
As the world's leading logistics company, dhl streamlines complex processes, making our customers' lives easier. We're the world's largest provider of air freight and the number two in ocean freight and we work to ensure that all kinds of shipments are transported from the factory to the shop fl oor by air or sea.
In the freight forwarding business, we develop customised transport solutions, provide capacity and co-ordinate the transport of goods and information for our customers in more than 150 countries. All this requires a global network, a dedicated workforce and innovative transport solutions.
| Customer proximity |
|---|
| Dedication |
| Innovation |
Provided your mobile phone has Quick Recognition software, you can photograph this code to directly access further information on our website.
FURTHER INFORMATION: WWW.DHL.COM/EN.HTML
7
A European retail chain wants to import electronic parts from Asia. It needs transit times shorter than what ocean freight can deliver but wants to avoid high air freight costs.
A multimodal solution that combines ocean and air freight is developed using dhl seair, which offers lower transport costs with faster transit times.
Importers gain a considerable competitive edge with this reliable and cost-effective solution and reduce co 2 emissions compared with pure air transport.
Business customers fi nd personal dedication and tailored logistics solutions at dhl that are all-around satisfying.
Deutsche Post DHL is striving to be an attractive investment and therefore to become the industry's profitability leader. With this in mind, we took extensive action to increase our efficiency over the past few years. We are now setting our sights on organic growth in revenue and earnings.
We have optimised our business portfolio and placed the changing needs of our customers more at the centre of our business. We are also helping the different areas in the Group meet their targets for growth and drawing attention to the future potential of an investment in Deutsche Post DHL by nurturing a transparent leadership culture and investing significantly in the development of our business model.
| Being your choice because of: |
|---|
| Profitability |
| Growth |
| Future potential |
Provided your mobile phone has Quick Recognition software, you can photograph this code to directly access further information on our website.
FURTHER INFORMATION: WWW.DP-DHL.COM/EN/INVESTORS.HTML
Deutsche Post DHL wants to be an attractive investment to investors that offers solid potential return.
The company streamlined its portfolio, set clear strategic goals and developed a new finance strategy. One of Deutsche Post DHL's goals is to pay dividends equal to 40 % to 60 % of net profits.
Investors enjoy a high level of reliability and continuity and expected dividends are more predictable.
Sustainable investing requires an open dialogue between investors, analysts and Deutsche Post DHL. This mutual trust is based on a prompt, comprehensive and continuous flow of information for investors.
With some 470,000 employees in more than 220 countries and territories, Deutsche Post DHL is one of the largest employers in the world. Qualifi ed and dedicated employees are essential to long-term success. Our People Strategy therefore aims to position the Group as the employer of choice.
To achieve this goal, we invest in training and professional development, make efforts to provide for a safe and healthy working environment and promote both diversity and the international exchange of ideas. The results of our annual employee opinion survey are an indicator of the progress we are making on our way to becoming the employer of choice.
| Training and professional development |
|---|
| Health and safety |
| Diversity and creativity |
Provided your mobile phone has Quick Recognition software, you can photograph this code to directly access further information on our website.
FURTHER INFORMATION: WWW.DP-DHL.COM/EN/CAREER.HTML
Your choice – a case study MY CHOICE, FOR GOOD REASON.
A student studying business administration would like to work for a diverse, international company upon graduation.
She applies to participate in the Group's graduate trainee programme for potential future leaders at Deutsche Post DHL.
Young people are given responsibility and have the opportunity to apply their strengths right from the start in an international company with many career options.
We attract young people for specialist and leadership positions with our Graduate Opportunities Worldwide programme. The class of 2010 completed a challenging and multifaceted development programme that opened a wide range of opportunities at one of the world's largest employers.
DR FRANK APPEL Chief Executive Officer
1 March 2011 Financial year 2010
1 March 2011 Financial year 2010
To become the company of choice for customers, employees and investors is a logical but also an ambitious goal. Th at's why I'm quite pleased that we have made good progress towards this goal.
In 2010, the economy in many parts of the world saw a notable recovery. Transport volumes and the demand for logistics services grew noticeably. By taking strategic and operating measures, we made clear progress in nearly all divisions, taking full advantage of the economic recovery, some thing I never doubted.
Our consolidated revenue saw double-digit growth, rising by 11.4 % to € 51.5 billion. Th e savings generated in the previous year improved profi tability in almost all divisions, coupled in some cases with signifi cantly higher margins. Over the course of the year we raised our original forecast for earnings before non-recurring items twice. In the end, we exceeded our expectations by € 100 million, closing the year at € 2.2 billion. With substantial net liquidity, we fi nd ourselves in a very stable fi nancial position.
In our mail business, we have been required to apply value added tax to revenues generated with business customers since mid-2010. Revenue and earnings in the second half of the year suff ered as a result. By contrast, our parcel business performed particularly well due to the brisk e-commerce market, which allowed us to more than compensate for the loss of the Quelle business.
Our DHL divisions are growing, especially in booming markets such as Asia. Restructuring in these divisions is now largely complete. For the fi rst time the DHL divisions made the largest contribution to consolidated net profi t.
Overall, your company achieved all the fi nancial targets we had set for fi nancial year 2010. I'd like to thank you, our shareholders, again for your trust in me and my colleagues on the Board of Management. Based on this year's earnings, we shall propose to the Annual General Meeting an increase in the dividend to € 0.65 per share.
I'd like to sincerely thank our around 470,000 employees, who received a special bonus at the end of the year in appreciation for their service.
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 +49 228 182-0 Fax +49 228 182-7099
www.dp-dhl.com
Our Strategy 2015 has three objectives: we want to become the provider of choice for customers, the investment of choice for investors and as an employer our ambition is to attract and retain an exceptional number of highly qualifi ed employees.
We strive to off er our customers solutions that make their lives easier. One of the best examples of this is our E-Postbrief. With the introduction of this product, we successfully launched a secure, confi dential and reliable form of electronic communication onto the market. At DHL, we are getting better and better at developing integrated solutions for regions, industries and customer groups.
Th e results of our annual employee opinion survey indicate that we have made great progress along the path to becoming the employer of choice. Th is is one of my primary concerns. At 79 %, the response rate for the last survey was very high. Improvements were achieved in all areas.
Aft er talking with many of you, I know that as investors you count above all on reliability and continuity in addition to profi tability and returns. Our fi nance strategy calls for distributing 40 % to 60 % of our net profi ts as dividends and for making our reporting more transparent in the future. Now that our restructuring is largely complete, we shall no longer report earnings adjusted for non-recurring items starting in the fi rst quarter of 2011.
We anticipate that consolidated EBIT will reach between € 2.2 billion and € 2.4 billion in the current fi nancial year. Th e MAIL division is expected to contribute € 1.0 billion to € 1.1 billion to this fi gure. In our DHL divisions, we expect an additional improvement of 10 % to 17 % in overall earnings to between € 1.6 billion and € 1.7 billion. Consolidated net profi t is also likely to continue to improve in line with our operating business.
I am convinced that we shall outperform the market, even in the medium term, so long as we keep our eye on the key drivers of our business success: satisfi ed customers, dedicated employees and loyal investors.
Yours faithfully,
Deutsche Post delivers 66 million mail items each day, six days a week, making us number one in the German mail market. One reason is our reliability: people who send mail with Deutsche Post trust that it will reach its destination quickly and securely. To make communication efficient, we also offer innovative solutions for buying postage via mobile phone, the internet or for ordering pre-stamped envelopes. Our e-Postbrief product combines the many advantages of traditional mail with the speed of electronic mail.
| BUSINESS AND ENVIRONMENT | 21 |
|---|---|
| Business activities and organisation Disclosures required by takeover law Remuneration of the Board of Management |
21 23 |
| and the Supervisory Board Economic parameters |
26 27 |
| Group management | 32 |
| DEUTSCHE POST SHARES | 34 |
| Overall assessment by the Board of Management | 37 |
|---|---|
| Signifi cant events | 37 |
| Earnings | 37 |
| Financial position | 40 |
| Assets and liabilities | 48 |
| Overview | 50 |
|---|---|
| mail division | 51 |
| express division | 57 |
| global forwarding, freight division | 62 |
| supply chain division | 66 |
| INDICATORS | 70 |
|---|---|
| Employees | 70 |
| Corporate responsibility | 75 |
| Procurement | 79 |
| Research and development | 82 |
| Customers and quality | 82 |
| Brands | 85 |
| OUTLOOK | 88 |
|---|---|
| Overall assessment of expected performance | 88 |
| Opportunities and risks | 88 |
| Strategic focus | 99 |
| Future economic parameters | 106 |
Revenue and earnings forecast 109 Projected fi nancial position 109
Deutsche Post DHL maintains a global network that off ers our customers everything they need for transporting, storing and processing goods and information, from standard products to customised solutions. We place great value on service, quality and sustainability and we demonstrate social responsibility through our climate protection, disaster management and education programmes.
Our MAIL division is the only provider of universal postal services in Germany. We deliver domestic and international mail and parcels and we are specialists in dialogue marketing, nationwide press distribution services and all the electronic services associated with mail delivery. Furthermore, with our e-Postbrief product, we were the fi rst on the market to off er secure, user-identifi ed written communication on the internet.
Our EXPRESS division off ers courier and express services to business customers and consumers in more than 220 countries and territories, the most comprehensive network in the world.
Our GLOBAL FORWARDING, FREIGHT division handles the carriage of goods by rail, road, air and sea. We are the world's number one air freight operator, number two 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 corporate information and communications management.
We consolidate the internal services that support the entire Group, including Finance, IT and Procurement, in our Global Business Services. 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 is under the control of its own divisional headquarters and is subdivided into business units for reporting purposes. Group management functions are centralised in the Corporate Center.
Glossary, page 232 Glossary, page 232
| mail • Mail Communication • Dialogue Marketing • Press Services • Value-Added Services • Parcel Germany • Retail Outlets |
express • Europe • Americas • Asia Pacifi c • eemea (Eastern Europe, the Middle East and Africa) |
global forwarding, freight • Global Forwarding • Freight |
supply chain • Supply Chain • Williams Lea |
|---|---|---|---|
| • Global Mail • Pension Service |
|||
| Global Business Services |
Corporate governance structure Management responsibility Legal structure Brand names Structure pursuant to corporate governance duties and responsibilities (boards and committees) • Corporate Center • Corporate Divisions • Global Business Services Structure pursuant to decision-making responsibility and reporting lines • Board departments • Corporate departments • Business departments
Structure based on the Group's legal entities • Deutsche Post ag
Structure pursuant to the brand names used in customer communication • Deutsche Post • dhl
As announced last year, we consolidated the central functions in the EXPRESS division responsible for the Europe region at our locations in Germany during the fi rst half of 2010. Th is also improved co-operation with the division's global functions.
As at 1 July 2010, we changed the management structure at Williams Lea Germany and essentially merged it into the MAIL division. Th e two businesses, which have a lot in common, especially when it comes to value-added services related to mail delivery (printing, scanning, mailroom services), are now managed consistently.
Furthermore, in the fourth quarter of 2010 we consolidated all e-Postbrief activities into a separate business department. Th is established an organisational structure consistent with the strategic signifi cance of the product, which is an important part of the MAIL division's portfolio.
22
Disclosures required under sections 289 (4) and 315 (4) of the Handelsgesetzbuch (German commercial code) and explanatory report
As at 31 December 2010, 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.
Members of the Board of Management receive Stock Appreciation Rights (SAR s) each year as a long-term remuneration component under the Long-Term Incentive Plan provided that they each invest cash or Deutsche Post AG shares for each tranche of the plan. If a Board of Management member sells the shares included in his personal investment for the tranche or disposes of his personal cash investment before the scheduled lock-up period of four years (three-year lock-up period for the 2008 tranche), all SAR s from that tranche will be forfeited.
Eligible Group executives receive shares from the company as part of the Share Matching Scheme. Shares received under the scheme are subject to a four-year lock-up period.
KfW Bankengruppe (KfW), Frankfurt am Main, is 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 (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 codetermination 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.
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 (1) of the AktG, such amendments generally require a simple majority of the votes cast and a simple majority of the share capital represented on the date of the resolution. 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 author ity 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 and /or in the case of non-use of the contingent capital following the expiry of the periods for exercising warrant or conversion rights. Th e AGM resolution on Contingent Capital III further authorises the Supervisory Board to make all other amendments to the Articles of Association associated with the issue of new shares in cases where the amendments aff ect the wording only. In addition, the AGM resolutions passed on 28 April 2010 (authorisation to acquire and use own shares as well as to acquire own shares through derivatives) authorise the Supervisory Board to amend the wording of the Articles of Association if the purchased own shares are redeemed to refl ect the redemption of shares and the reduction of share capital. Th e Board of Management is authorised to amend the information on the number of shares in the Articles of Association if it determines that the proportion of the other shares in the share capital is increased due to the redemption.
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.
On 25 May 2011, the Board of Management and the Supervisory Board will make a proposal to the Annual General Meeting of Deutsche Post AG to adopt a new authorisation to issue bonds with warrants, convertible bonds and /or income bonds as well as profi t participation certifi cates with a maturity date of 24 May 2016.
Finally, the AGM of 28 April 2010 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 27 April 2015. 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 53a of the AktG. Th e authorisation 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 28 April 2010.
To supplement this authorisation, on 28 April 2010 the AGM also authorised the Board of Management – within the scope resolved by the AGM of 28 April 2010 in agenda item 6 – to acquire own shares, including the use of derivatives, namely by servicing options that, upon their exercise, require the company to acquire own shares (put options), by exercising options that, upon their exercise, grant the company the right to acquire own shares (call options) or 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 may not be more than 18 months, must expire by no later than 27 April 2015 and be selected such that the acquisition of own shares by exercising the options cannot occur aft er 27 April 2015. Details may be found in the motion adopted by the AGM under agenda item 7 of the agm of 28 April 2010.
dp-dhl.com/en/investors.html
25
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.
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.
Deutsche Post AG took out a syndicated credit line with a volume of € 2 billion with a consortium of banks. If a takeover occurs, each member of the bank consortium is entitled under certain conditions to cancel its share of the credit line as well as its share of outstanding loans and require repayment.
In the event of a change in control, any member of the Board of Management is entitled to resign his offi ce for good cause within a period of six months following the change in control, aft er giving three months' notice as at the end of the month, and to terminate his Board of Management contract (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 within nine months of the takeover, 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 section 4.2.3 of the German Corporate Governance Code as amended on 26 May 2010. Th e agreements are outlined in the remuneration report.
Corporate Governance, page 128 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.
Corporate Governance, page 128 f.
In 2010, the global economy recovered from the severe recession of the previous year. Th e fi rst half of the year in particular saw high growth rates; the trend was more moderate in the second half of the year. Asia's emerging economies demonstrated robust growth. Th e signs of recovery were also prevalent in most industrial nations, although they varied widely from region to region. Overall, global economic output expanded by 5 % in 2010 aft er having shrunk by 0.6 % in 2009. Global trade made an even more signifi cant recovery, gaining approximately 12 % (IMF: 12.0 %, OECD: 12.3 %).
| % | Gross domes tic product |
Domestic | |
|---|---|---|---|
| (gdp) | Exports | demand | |
| China | 10.3 | 31.3 | n / a |
| Japan | 4.0 | 24.2 | 2.1 |
| usa | 2.9 | 11.7 | 3.2 |
| Euro zone | 1.7 | 9.9 | 1.7 |
| Germany | 3.6 | 14.2 | 2.6 |
Some fi gures are estimates, as at 15 February 2011.
Source: Postbank Research, national statistics.
Asia led the global recovery in the reporting year, although the growth rate ( approximately 9.3 %) was not as high as before the economic crisis.
China again set a record with 10.3 % growth in GDP. Th e industrial sector benefi ted from the recovery of global trade as well as growing demand in the domestic market. Exports were up year-on-year by 31.3 %, imports by as much as 38.7 %. As a result, China's trade surplus decreased slightly from US\$ 196 billion to approximately US\$ 183 billion. Th e country remains attractive to foreign investors, whose direct investments amounted to almost US\$ 106 billion, eclipsing the already high level of investment seen in the previous year.
Th e Japanese economy even gained momentum in 2010. Compared with the prior year, exports were up by nearly a quarter. Consumer spending also saw a noticeable increase. As a result, GDP grew by 4.0 % despite the fact that capital expenditure remained virtually the same.
In the United States, the economy initially came out of the recession at a rapid pace at the beginning of 2010 only to noticeably slow again as the year unfolded. Investments in machinery and equipment saw the sharpest rise (approximately 15 %), albeit from the very low level investments had reached. By contrast, there was only a moderate rise in consumer spending and construction spending was down again considerably. Foreign trade also slowed growth as imports outpaced exports. As a result, GDP only grew by 2.9 %; domestic demand was up 3.2 %.
Th e euro zone recovered from the deep recession of the previous year, although GDP only grew by 1.7 %. Gross fi xed capital formation fell slightly again and private consumption saw a moderate rise. Both exports and imports increased sharply. Th e trend fl uctuated considerably from country to country: Germany recorded very strong growth; France and Italy, by contrast, experienced considerably lower growth rates. Spain and Greece even saw their economic output continue to shrink. Th ese imbalances can be explained by the strong growth of export-orientated industries, from which Germany profi ted greatly, and by the vast structural problems and high national debt that some countries faced. Th is situation led to massive cuts in public spending and tax increases, which had a further impact on growth.
Th e German economy grew robustly in the reporting year, especially the capital goods industry, which profi ted from the booming demand around the world for all types of equipment. As a result, we saw an unusually sharp rise in production and exports. Over the course of the year we also observed a serious increase in investments in machinery and equipment. Construction and consumer spending was also higher. In the end, Germany's GDP growth was 3.6 %, the highest rate since reunifi cation. Furthermore, the average annual number of unemployed workers in Germany fell by approximately 179,000 to 3.244 million.
At the end of 2010, a barrel of Brent Crude was US\$ 94.70 (previous year US\$ 77.70). Amidst severe price fl uctuations throughout the year, the annual average oil price was approximately US\$ 80, 28.5 % higher than in 2009. Th e price climbed on account of robust economic growth in emerging markets and the increasing demand for energy that accompanied this growth. OPEC provided a counterweight by continuously exceeding its production quotas.
Th e leading central banks maintained their very expansive monetary policy in 2010. Th e US Federal Reserve retained its key interest rate at 0 % to 0.25 %. Th e Fed also decided in the autumn to buy US\$ 600 billion in government bonds. Th e European Central Bank kept its key interest rate at 1 %. In May the bank also began for the fi rst time to purchase government bonds from debt-ridden European Union member states.
Th e trend in the euro/US dollar exchange rate was shaped by national debt in Europe and economic forecasts in the United States. Th e euro traded at around US\$ 1.43 at the beginning of 2010 but fell to just under US\$ 1.20 at the height of the debt crisis in Greece. Fears of a downturn in the United States temporarily returned the euro to just over US\$ 1.40, before it came under pressure again. By the end of the year, the euro was at around US\$ 1.34, a year-on-year loss of 6.7 %. Measured against pound sterling, the euro posted a 3.4 % loss.
Th e yield on the German 10-year federal government bonds fell to a low of 2.12 % by the end of the summer before making noticeable gains again due to increasing US returns, ending the year at 2.96 % (previous year: 3.39 %). Th e return on 10-year US govern ment bonds decreased by 0.54 percentage points to 3.29 % in 2010. Corporate bonds were aff ected by this tense environment fl anked by economic recovery and national debt crisis. Th e risk premiums saw little change over the course of the year 2010.
Th e global economic upswing had a positive impact on international trade in the reporting year. Global trade volumes, for instance, were up roughly 9 %. Th e upwards trend was seen particularly in exports coming out of Europe, Latin America and North America. Th e Asia Pacifi c region, which suff ered much less from the crisis, further solidifi ed its position as the global trade leader.
a.05 Trade volumes: compound annual growth rate 2009 – 2010
| % Imports Exports |
Africa | Asia Pacifi c | Europe | Latin America | Middle East | North America |
|---|---|---|---|---|---|---|
| Africa | 4.5 | 13.1 | 5.0 | 9.7 | 4.5 | 9.1 |
| Asia Pacifi c | 7.9 | 11.5 | 7.2 | 9.5 | 6.9 | 9.9 |
| Europe | 6.9 | 12.8 | 8.2 | 10.2 | 9.5 | 5.6 |
| Latin America | 8.7 | 19.6 | 11.2 | 5.5 | 17.8 | 1.0 |
| Middle East | 5.1 | 7.5 | 1.2 | 6.3 | 0.0 | 1.3 |
| North America | 4.8 | 11.1 | 15.4 | 11.5 | 6.6 | 7.9 |
Source: Copyright © Global Insight (Deutschland) GmbH, 2010. All rights reserved, as at 21 December 2010.
a.06 Major trade fl ows: 2010 volumes1)
1) Excluding price-related effects.
Source: Copyright © Global Insight (Deutschland) GmbH, 2010. All rights reserved, as at 21 December 2010.
Deutsche Post DHL is represented in more than 220 countries and territories. Th e table below provides an overview of the most important markets. Th e regions shown refl ect our business structure. Th e relevant market parameters and our market shares are detailed in the Divisions chapter.
| Global | Europe | Americas | Asia Pacifi c, Eastern Europe, Africa and the Middle East |
|---|---|---|---|
| • Cross-border mail market (outbound, 2010): € 6.4 bn1) • Air freight (2009): 18.5 m tonnes 2) • Ocean freight (2009): 25.3 m teu s 3) • Contract logistics (2009): € 135 bn 4) |
• German mail communi cation market (2010): € 6.0 bn1) • German dialogue marketing market (2010): € 18.7 bn1) • International express market (2009): € 5.3 bn 5) • Road transport (2009): € 148.4 bn 6) |
• Domestic mail market usa (2010): € 43.5 bn 7) • International express market (2009): € 4.0 bn 8) |
• International express market Asia Pacifi c (2009): € 4.4 bn 9) • International express market Eastern Europe, Africa and the Middle East (2009): € 0.4 bn 9) |
1) Company estimates. 2) Data based solely on export freight tonnes. Source: includes content provided by copyright © Global Insight (Deutschland) GmbH, 2010. All rights reserved, annual reports, press releases and company estimates. 3) Twenty-foot equivalent units; estimated part of overall market controlled by forwarders. Source: includes content provided by copyright © Global Insight ( Deutschland) GmbH, 2010. All rights reserved, annual reports, press releases and company estimates. 4) Source: Transport Intelligence. 5) Includes express product Time Defi nite International. Country base: be, ch, de, es, fr, it, nl, pl, se, uk. Source: Market Intelligence 2010. 6) Country base: total for 20 European countries, excluding bulk and specialties transport. Source: mrsc mi freight reports 2008 / 2009 and forecasts for 2009, Eurostat 2009. 7) Source: usps product revenue, 2010. 8) Includes express product Time Defi nite International. Country base: ca, mx, br, us. Source: Market Intelligence 2010. 9) Includes express product Time Definite Inter national. Country base: au, cn, hk, id, in, jp, kr, sg as well as ae, ru, za. Source: Market Intelligence 2010.
Th e corporate and economic environment has changed considerably in recent years. Many factors have had an impact on our mail and logistics business. As part of our Strategy 2015, we systematically and continuously review the key factors aff ecting our business. We continue to believe that our business is substantially impacted by four long-term trends:
In view of our leading market position, a large number of our services are subject to sector-specifi c regulation under the Postgesetz (German postal act). Further information on this issue and legal risk is contained in the Notes to the consolidated fi nancial statements.
Note 53
Asset charge = Net asset base × Weighted average cost of capital
ebit after asset charge
Since 2008, Deutsche Post DHL has used EBIT aft er asset charge (EAC) as a key performance indicator. EAC is calculated by subtracting a cost of capital component, or asset charge, from reported EBIT.
By including the cost of capital in our business decisions, we encourage all divisions to use resources effi ciently and organise our operating business to sustainably increase value and generate cash fl ow. In the reporting year, EAC served as a key performance indicator in addition to EBIT, which was also used as a basis to determine management remuneration.
To calculate the asset charge, the net asset base is multiplied by the weighted average cost of capital (WACC). Th e asset charge calculation is based on unconsolidated fi gures and is performed each month so that we can also take fl uctuations in the net asset base into account during the year.
All of our divisions use a standard calculation for the net asset base. Th e key components of operating assets are intangible assets, including goodwill, property, plant and equipment and net working capital. Provisions and operating liabilities are subtracted and reduce the net asset base accordingly.
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.
In order to optimise the gearing ratio and thus decrease WACC, two factors must be weighed against each other:
In 2008, we determined a standard WACC of 8.5 % across the divisions, which also represents a minimum target for projects and investments within the Group. Although the currently low interest rate on the capital market would allow us to reduce the WACC, we left it as is in the reporting year in order to prevent our internal resource allocation to be infl uenced by short-term fl uctuations in capital market interest rates and at the same time keep EAC comparable with previous years.
In 2010, EAC increased from €–959 million to € 666 million. Th is was primarily a result of the considerable increase in profi tability of our DHL divisions. In addition, higher non-recurring restructuring items put pressure on EBIT in the prior year.
| eac | – 959 | 666 | >100 |
|---|---|---|---|
| Asset charge | –1,190 | –1,169 | 1.8 |
| Reported ebit | 231 | 1,835 | >100 |
| 2009 | 2010 | + / – % | |
| € m |
Th e asset charge in the reporting year decreased slightly by € 21 million, whilst the net asset base exceeded the prior-year closing balance by € 900 million. Th e opposite trends in asset charge and net asset base were due to a diff erent trend in the level of the asset base during the reporting years. Th e net asset base was reduced in 2009, ending the year at a particularly low level. However, the average asset base was higher.
An increase in net working capital was the primary reason for the year-on-year rise in the net asset base: trade receivables climbed by 23.2 % over the prior year. Th e increase in intangible assets is mostly attributable to currency eff ects, which raised goodwill. Another reason for the increase in the asset base was the use of provisions for restructuring in the United States, which as operating liabilities reduced the net asset base accordingly in the prior year.
Th e increase in the net asset base was moderated by a slight decline in property, plant and equipment that resulted from relatively modest investment activities in the reporting year.
| Net asset base | 11,520 | 12,420 | 7.8 |
|---|---|---|---|
| Other operating liabilities | – 4,525 | – 4,676 | –3.3 |
| Trade payables | – 4,848 | – 5,672 | –17.0 |
| Operating provisions | –3,881 | –3,620 | 6.7 |
| Other operating assets | 2,139 | 2,400 | 12.2 |
| Trade receivables | 4,881 | 6,011 | 23.2 |
| Property, plant and equipment | 6,216 | 6,125 | –1.5 |
| Intangible assets including goodwill | 11,538 | 11,852 | 2.7 |
| 2009 | 2010 | + / – % | |
| € m |
Despite the notable economic recovery, stock markets remained sluggish at the start of 2010. Th e Greek debt crisis that emerged in the fi rst quarter served to dampen sentiment and the DAX fell to its annual low of 5,434. Th e markets did not return to optimism until government leaders of the euro zone provided assurance that they would support Greece with bilateral credit lines. State economic incentives and an expansive monetary policy also helped to push the DAX back up. At the middle of the year, fears of a new recession set in and the stock markets responded with uncertainty. Even though many companies presented better half-year results than expected, the sidewards trend in the markets continued until the beginning of September, when share prices began rising again. Th e German economy benefi ted from the global growth, due particularly to the German export industry. By the end of 2010, the DAX had increased 16.1 % year-on-year to 6,914 points. Th e EURO STOXX 50 fell 5.8 % over the course of the year, refl ecting the diff ering trends in the euro zone. By contrast, the Dow Jones improved by 11.0 %.
| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | ||
|---|---|---|---|---|---|---|---|---|
| Year-end closing price | € | 16.90 | 20.48 | 22.84 | 23.51 | 11.91 | 13.49 | 12.70 |
| High | € | 19.80 | 21.23 | 23.75 | 25.65 | 24.18 | 13.79 | 14.46 |
| Low | € | 14.92 | 16.48 | 18.55 | 19.95 | 7.18 | 6.65 | 11.18 |
| Number of shares | millions | 1,112.8 | 1,193.9 | 1,204.01) | 1,208.21) | 1,209.01) | 1,209.0 | 1,209.0 |
| Market capitalisation as at 31 December | € m | 18,840 | 24,425 | 27,461 | 28,388 | 14,399 | 16,309 | 15,354 |
| Average trading volume per day | shares | 2,412,703 | 3,757,876 | 5,287,529 | 6,907,270 | 7,738,509 | 5,446,920 | 5,329,779 |
| Annual performance including dividend | % | 6.4 | 24.1 | 14.9 | 6.9 | – 45.5 | 18.3 | –1.4 |
| Annual performance excluding dividend | % | 3.4 | 21.2 | 11.5 | 2.9 | – 49.3 | 13.3 | – 5.9 |
| Beta factor 2) | 0.84 | 0.75 | 0.80 | 0.68 | 0.81 | 0.91 | 0.95 | |
| Earnings per share 3) | € | 1.44 | 1.99 | 1.60 | 1.15 | –1.40 | 0.53 | 2.10 |
| Cash fl ow per share 4) | € | 2.10 | 3.23 | 3.28 | 4.27 | 1.60 | – 0.48 | 1.59 |
| Price-to-earnings ratio 5) | 11.7 | 10.3 | 14.3 | 20.4 | – 8.5 | 25.5 | 6.0 | |
| Price-to-cash fl ow ratio 4), 6) | 8.1 | 6.4 | 7.0 | 5.5 | 7.4 | –28.1 | 8.0 | |
| Dividend | € m | 556 | 836 | 903 | 1,087 | 725 | 725 | 7867) |
| Payout ratio | % | 34.8 | 37.4 | 47.1 | 78.6 | – | 112.6 | 30.9 |
| Dividend per share | € | 0.50 | 0.70 | 0.75 | 0.90 | 0.60 | 0.60 | 0.657) |
| Dividend yield | % | 3.0 | 3.4 | 3.3 | 3.8 | 5.0 | 4.4 | 5.1 |
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 non-controlling interests 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.
| 2009 | 2010 | + / – % | ||
|---|---|---|---|---|
| Deutsche Post DHL | € | 13.49 | 12.70 | – 5.9 |
| tnt | € | 21.36 | 19.21 | –10.1 |
| FedEx | us \$ | 85.17 | 92.96 | 9.1 |
| ups | us \$ | 58.18 | 72.68 | 24.9 |
| Kuehne + Nagel | chf | 100.50 | 130.00 | 29.4 |
Our shares had already reached their annual high of € 14.46 on 8 January 2010. Th ey then moved downwards in line with the general trend. Aft er we presented our results for 2009 on 9 March 2010, they moved sideways until the Annual General Meeting on 28 April 2010. In this period, the DAX made overall gains but there was scepticism in the market regarding whether our Group would succeed in generating additional profi table growth along with the growth in volume. Th e price of our shares therefore dropped to their annual low of € 11.18 on 7 May 2010. However, we pleasantly surprised the market with our fi rst-quarter fi gures. Due to a good reporting season, our shares made strong gains against the DAX until the start of August, with the € 14 mark nearly being reached at times. Aft er our Capital Markets Day on 23 November, however, Deutsche Post shares declined to their year-end closing price of € 12.70 as the DAX continued to rise. Hence, over the year as a whole, our shares lost 5.9 % in value. Average trading volumes remained stable at 5.3 million shares (previous year: 5.4 million).
a.15 Candlestick graph / 30-day moving average
At the end of 2010, 33 analysts were following Deutsche Post shares. A total of 26 analysts issued a "buy" recommendation on our shares, eight more than a year earlier. Five analysts issued a neutral recommendation regarding Deutsche Post shares and only two to sell. Th e average price target increased signifi cantly over the prior year to € 16.35 at the end of the year.
Th e number of shares held by private investors rose again compared with the previous year, increasing from 6.6 % to 7.5 % of the free fl oat. KfW Bankengruppe continued to hold 30.5 % of our shares. Th e free fl oat remained at 69.5 %, 14.5 % of which were held in the USA, 12.1 % in Germany and 26.5% in the United Kingdom.
At the start of 2010, capital markets participants were primarily interested in the volume trends in our divisions and regions. Another point of interest was our new fi nance strategy, which the Board of Management had introduced on 9 March 2010 together with the results for fi nancial year 2009. Whilst talks with investors in the prior year had revolved around the planned sale of Postbank, the impact of the economic crisis and our restructuring measures, in 2010 the principal topic of interest involved opportunities to achieve further growth and generate higher margins.
In November, we held a Capital Markets Day where we off ered more detail on our fi nance strategy. Members of the Board of Management commented on the developments of the past 12 months, the Group's strategy and the individual divisions. In addition, Board of Management members and our investor relations team cultivated close contact with the capital markets at numerous individual meetings and investor conferences. Our work in the fi eld was ranked the third-best in Europe by Institutional Investor magazine.
1) As at 31 December 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.
As a globally operating logistics provider, Deutsche Post DHL benefi ted from the recovery in the global economy in fi nancial year 2010, recording impressive volume and revenue increases. Th e savings generated in the previous year improved profi tability in almost all divisions, coupled in some cases with signifi cantly higher margins. As a result, overall earnings increased to € 1.8 billion. Operating cash fl ow also saw a signifi cant yearon-year improvement to € 1.9 billion. Our fi nancial position remains very stable due to available net liquidity of € 1.4 billion. Our successful business performance allows us to propose the payment of a dividend per share of € 0.65 for the year under review to our shareholders at the Annual General Meeting on 25 May 2011.
1) ebit / revenue. 2) Excluding non-controlling interests, including Postbank. 3) Including Postbank. 4) Proposal.
a.17 Selected key indicators for results of operations (continuing operations)
Th ere were no signifi cant events with material eff ects on the Group's earnings, fi nancial position and assets and liabilities in the reporting period.
At the beginning of 2010, we transferred DHL Express Sweden's domestic business to DHL Freight Sweden and adjusted the prior-year segment reporting fi gures accordingly.
At the beginning of March, DHL Express UK completed the sale of its day-defi nite domestic business. All assets and liabilities had previously been classifi ed as held for sale.
Note 12
Note 13
Note 14
Note 15
Note 16
In April, DHL Supply Chain Austria sold parts of its contract logistics operations. Th e transaction involved the temperature-controlled logistics and transport business.
At the end of June, DHL Express France sold its day-defi nite domestic business. All assets and liabilities had already been classifi ed as held for sale as at 31 December 2009.
As at 1 July 2010, we transferred signifi cant parts of Williams Lea Germany from the SUPPLY CHAIN division to the MAIL division. Th e two businesses have many strategic and operational elements in common, such as those relating to the E-Postbrief. Th e prior-year segment reporting fi gures were adjusted accordingly.
In August, we acquired the online advertising services provider "nugg.ad AG predictive behavioral targeting", Germany, which has been fully consolidated.
In accordance with the revised IAS 39, the previously unrecognised forward transaction involving 27.4 % of Postbank's shares for Deutsche Bank has been recognised in profi t and loss and included at its fair value in net fi nancial income since 1 January 2010.
Consolidated revenue from continuing operations rose 11.4 % year-on-year to € 51,481 million (previous year: € 46,201 million). Currency eff ects of € 2,081 million contributed to this increase. Th e share of consolidated revenue generated abroad rose from 64.8 % to 67.9 %.
Th e restructuring measures initiated in the previous year led to non-recurring expenses of € 370 million in the reporting year (previous year: € 1,242 million), the majority of which (€ 288 million) was incurred in the EXPRESS division.
At € 2,217 million, other operating income was slightly higher than in the prior-year period (€ 2,141 million).
Volume growth and an increase in the oil price led to a rise in the materials expense for the reporting year from € 25,774 million to € 29,473 million.
In contrast, restructuring measures in the express business in particular led to staff costs declining by a total of € 412 million or 2.4 % to € 16,609 million. Th is was off set by € 70 million for one-time end-of-year bonuses for all Group employees.
At € 324 million, depreciation, amortisation and impairment losses were down by 20.0 % on the prior-year fi gure (€ 1,620 million). Th e restructuring measures implemented in the previous year resulted in prospective recognition of part of this item.
In contrast, other operating expenses were up € 789 million on the fi gure for the previous year to € 4,485 million; this was due in particular to an increase in expenses attributable to asset disposals. Th ese include eff ects relating to the above-mentioned sales in the United Kingdom, France and Austria.
Profi t from operating activities (EBIT) from continuing operations rose by € 1,604 million to € 1,835 million from the previous year's fi gure of € 231 million. Profi t in the previous year was aff ected by non-recurring expenses of € 1,242 million; restructuring activities in the reporting period led to one-time expenses of € 370 million. Adjusted for these items, EBIT rose by € 732 million, from € 1,473 million to € 2,205 million.
Net fi nancial income rose signifi cantly, from € 45 million to € 989 million. Since January 2010, this fi gure has for the fi rst time included the measurement of the forward from the second tranche of the planned Postbank sale in the amount of € 1,653 million.
Profi t before income taxes rose by € 2,548 million to € 2,824 million. Income taxes of € 194 million were incurred (previous year: € 15 million). Th e measurement of the derivatives from the planned Postbank sale had no eff ect on tax. Overall, profi t from continuing operations improved signifi cantly by € 2,369 million to € 2,630 million in the reporting period (previous year: € 261 million).
Since Postbank was deconsolidated at the end of February 2009, the previous year's profi t from discontinued operations contains the net loss generated in the fi rst two months and the deconsolidation eff ect of € 444 million. In the reporting period, the Group's share of Postbank's profi t or loss is contained in net income from associates.
Consolidated net profi t for the period rose from € 693 million to € 2,630 million. € 2,541 million of this amount is attributable to shareholders of Deutsche Post AG and € 89 million to non-controlling interest holders. Both basic and diluted earnings per share rose signifi cantly from € 0.53 to € 2.10.
At the Annual General Meeting on 25 May 2011, the Board of Management and the Supervisory Board will make a proposal to the shareholders to pay a dividend per share of € 0.65 for fi nancial year 2010 (previous year: € 0.60). Th e distribution ratio based on the consolidated net profi t attributable to Deutsche Post AG shareholders amounts to 30.9 %. Th e net dividend yield based on the year-end closing price of our shares is 5.1 %. Th e dividend will be distributed on 26 May 2011 and is tax-free for shareholders resident in Germany.
Th e Group's fi nancial management activities include managing cash and liquidity, 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 in Bonn, 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 Group-wide requirements. Th e guidelines and processes comply with the Gesetz zur Kontrolle und Transparenz im Unternehmensbereich ( German law on control and transparency in business) of 27 April 1998.
Corporate Finance's main task is to minimise fi nancial risk 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 particularly closely the ratio of our operating cash fl ows to our adjusted debt. Adjusted debt refers to the Group's net debt, allowing for unfunded pension obligations and liabilities under operating leases.
Building on the principles and aims of fi nancial management, the Supervisory Board adopted a new fi nance strategy for the Group in March 2010. In addition to the interests of shareholders, the new strategy also takes lender requirements into account. Th e goal is for the Group to maintain its fi nancial fl exibility and low cost of capital by ensuring a high degree of continuity and predictability for investors.
A key component of this strategy is a target rating of "BBB+", which is managed via the dynamic performance metric known as funds from operations to debt (FFO to debt). Th is performance metric is calculated on a rolling 12-month basis. Our strategy also includes a sustained dividend policy and clear priorities regarding the use of excess liquidity, which will initially be used for investing in the operating business. We shall also use liquidity to fund a portion of our pension liabilities. Once this has been achieved, we would aim to improve our rating to "A–" before using liquidity for additional dividend payments or share repurchases.
| Credit rating | Investors |
|---|---|
| • Maintain "bbb+" and "Baa1" ratings, respectively. • ffo to debt introduced as dynamic performance metric. Dividend policy |
• Reliable and consistent informa tion from the company. • Predictability of expected returns. |
| • Pay out 40 % – 60 % of net profi t. • Consider cash fl ow and continuity. Excess liquidity |
Group • Preserve fi nancial and strategic fl exibility. • Assure low costs of capital (wacc )1). |
| 1. Invest in the operating business. 2. Increase plan assets for German pension plans. 3. Aim for credit ratings of "a–" and "a3", respectively. 4. Pay out special dividend or execute share buy-back programme. |
|
| Debt portfolio | |
| • Syndicated credit facility taken out as liquidity reserve. • Bonds could be issued to cover long-term capital requirement. |
Funds from operations (FFO) represents operating cash fl ow before changes in working capital plus interest and dividends received less interest paid and adjusted for operating leases, pensions and non-recurring income or expenses, as shown in the following calculation. In addition to fi nancial liabilities and available cash and cash equivalents, the fi gure for debt also includes operating lease liabilities as well as unfunded pension liabilities. Th e defi nition of FFO to debt and the method used to calculate its individual components correspond to those used by the rating agency Standard & Poor's.
a.22 ffo to debt
1) Weighted average cost of capital Group management, page 32.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Operating cash fl ow before changes in working capital | 763 | 2,109 |
| Interest and dividends received | 103 | 59 |
| Interest paid | 291 | 183 |
| Adjustment for operating leases | 1,082 | 1,055 |
| Adjustment for pensions | 153 | 198 |
| Non-recurring income / expenses | 1,415 | 531 |
| Funds from operations (ffo) | 3,225 | 3,769 |
| Reported fi nancial liabilities1) | 7,439 | 7,022 |
| Financial liabilities related to the sale of Deutsche Postbank ag1) | 3,990 | 4,164 |
| Financial liabilities recognised at fair value through profi t or loss1) | 141 | 115 |
| Adjustment for operating leases1) | 4,933 | 5,527 |
| Adjustment for pensions1) | 5,221 | 5,323 |
| Surplus cash and near-cash investments1), 2) | 3,864 | 2,893 |
| Debt 1) | 9,598 | 10,700 |
| ffo to debt (%) | 33.6 | 35.2 |
1) As at 31 December.
2) Surplus cash and near-cash investments are defi ned as cash and cash equivalents and investment funds callable at sight,
less cash needed for operations.
standardandpoors.com
As a result of the sharp increase in funds from operations, FFO to debt improved on the prior year despite the negative eff ect of restructuring payments on liquidity and the increase in debt due to higher operating lease liabilities. With a value of 35.2 %, this performance metric is within our expectations as well as those of Standard & Poor's.
Th e cash and liquidity of the globally active subsidiaries is managed centrally by Corporate Treasury. A total of 84 % 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' intra-group revenue is also pooled and managed by our in-house 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 to limit market risk. Interest rate risk is managed only with the help of swaps. Currency risk is additionally hedged using forward transactions, cross-currency swaps and options. We pass on most of the risk arising from commodity fl uctuations to our customers and manage the remaining risk by means of commodity swaps. Th e parameters, 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.
During the reporting year, the average drawdown on the Group's committed, unsecured, bilateral credit lines was only around 7 %; the total volume amounted to an annual average of € 2.7 billion. As part of our fi nance strategy, in December 2010 we agreed upon a fi ve-year syndicated credit facility with a volume of € 2 billion that has replaced the previous bilateral loan agreements in full. Th e syndicated credit facility guarantees us the best current market conditions and makes it a secure, long-term liquidity reserve. Th e credit facility does not contain any fi nancial covenants concerning the Group's fi nancial indicators and had not yet been drawn down as at the balance sheet date.
As part of our banking policy, we make certain to spread our business volume widely and maintain long-term relationships with the fi nancial institutions we entrust with our business. In addition to credit lines, we meet our borrowing requirements through other independent sources of fi nancing. Th ese include bonds, structured fi nance products 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.
Note 50
Deutsche Post AG provides security for the loan agreements, leases and supplier contracts entered into by Group companies, associates or joint ventures by issuing letters of comfort, sureties or guarantees as needed. Th is practice allows better conditions to be negotiated locally. Th e sureties are provided and monitored centrally.
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.
In the fi rst half of 2010, Standard & Poor's raised our outlook from "negative" to "stable". It has also issued a long-term credit rating of "BBB+" with respect to our Group's ability to meet its fi nancial commitments, which it regards as appropriate. Moody's has given us an equivalent rating. Th is means that Deutsche Post DHL is well positioned in the transport and logistics sector. Th e following table shows the ratings as at the reporting date and the underlying factors. Th e complete and current analyses by the rating agencies and the rating categories can be found on our website.
standardandpoors.com, moodys.com
dp-dhl.com/en/investors.html
a.23 Ratings awarded by rating agencies
Long-term: bbb+ Short-term: a – 2 Outlook: stable
Long-term: Baa1 Short-term: p – 2 Outlook: stable
As at the balance sheet date, the Group had cash and cash equivalents in the amount of € 3.4 billion (previous year: € 3.1 billion) at its disposal. A large portion of this is accounted for by Deutsche Post AG. Most of the cash is invested centrally on the money market. As at the reporting date, these short-term money market investments had a volume of € 1.9 billion. Cash and cash equivalents are supplemented by investment funds of € 0.4 billion that are callable at sight and are reported as current fi nancial assets in the balance sheet.
Th e share of investment funds declined, particularly due to the extraordinary cash outfl ows incurred for restructuring in the amount of € 0.8 billion during the year under review and the decrease in fi nancial liabilities, for example due to early repayment of a municipal bond that had been issued to fi nance investments at Wilmington airport (€ 0.2 billion). Th e fi nancial liabilities reported in our balance sheet break down as follows:
| a.24 Financial liabilities | |||||
|---|---|---|---|---|---|
| ---------------------------- | -- | -- | -- | -- | -- |
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Bonds | 1,870 | 1,682 |
| Due to banks | 577 | 359 |
| Finance lease liabilities | 269 | 210 |
| Liabilities to Group companies | 126 | 137 |
| Liabilities at fair value through profi t or loss | 141 | 115 |
| Other fi nancial liabilities | 4,456 | 4,519 |
| 7,439 | 7,022 |
Th e largest single items are the two listed bonds of Deutsche Post Finance B. V. as well as 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 transaction regarding Deutsche Postbank AG shares in the form of a mandatory exchangeable bond, cash collateral and a hedging liability. Further information on the recognised financial liabilities is contained in the Notes.
Operating leases remain an important source of funding for the Group. We mainly use operating leases to fi nance real estate as well as aircraft , vehicle fl eets and IT equipment.
| a.25 Operating lease obligations by asset class | ||||||
|---|---|---|---|---|---|---|
| -- | ------------------------------------------------- | -- | -- | -- | -- | -- |
| 6,193 | 7,091 | |
|---|---|---|
| Aircraft | 312 | 951 |
| Other equipment, offi ce and operating equipment, transport equipment, miscellaneous | 416 | 471 |
| Technical equipment and machinery | 106 | 115 |
| Land and buildings | 5,359 | 5,554 |
| 2009 | 2010 | |
| € m |
Note 52
Note 46
Operating lease obligations rose signifi cantly year-on-year to € 7.1 billion. Th e increase was primarily due to the general economic recovery and our investments in our aircraft fl eet.
Th e Group's capital expenditure (capex) totalled € 1,262 million at the end of 2010 (previous year: € 1,171 million), down 10 % on the originally budgeted fi gure of € 1.4 billion. Funds were injected primarily into replacements and growing the business.
At the beginning of the year, we were initially cautious with our investments in light of the uncertain economic trend. As the year progressed, we shift ed from a single focus on replacements to growth-orientated investments. Funds were used mainly to replace and expand assets as follows: € 1,058 million were invested in property, plant and equipment and € 204 million in intangible assets excluding goodwill. Investments in property, plant and equipment related mainly to advance payments and assets under development (€ 279 million), technical equipment and machinery (€ 265 million), transport equipment (€ 212 million), IT equipment (€ 97 million) and aircraft (€ 68 million).
Our initial focus on replacement investments led to investments being made primarily in Europe and the Americas, as shown in the graph on the right. In Europe, investments were centred on Germany and the UK.
| express | global forwarding, freight |
supply chain | Corporate Center / Other |
Continuing operations |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2009 adjusted |
2010 | 2009 adjusted |
2010 | 2009 adjusted |
2010 | 2009 adjusted |
2010 | 2009 adjusted |
2010 | 2009 | 2010 | |
| Capex (€ m) | 338 | 445 | 370 | 286 | 92 | 102 | 195 | 215 | 176 | 214 | 1,171 | 1,262 |
| Depreciation, amortisation and impairment losses (€ m) |
332 | 323 | 483 | 373 | 114 | 98 | 392 | 298 | 299 | 204 | 1,620 | 1,296 |
| Ratio of capex to depreciation, amortisation and impairment losses |
1.02 | 1.38 | 0.77 | 0.77 | 0.81 | 1.04 | 0.50 | 0.72 | 0.59 | 1.05 | 0.72 | 0.97 |
| express | global forwarding, | freight | supply chain | Corporate Center / Other |
Continuing operations |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2009 adjusted |
mail 2010 |
2009 adjusted |
2010 | 2009 adjusted |
2010 | 2009 adjusted |
2010 | 2009 | 2010 | 2009 | 2010 | |
| Capex (€ m) | 133 | 146 | 95 | 134 | 36 | 34 | 60 | 81 | 61 | 104 | 385 | 499 |
| Depreciation, amortisation and impairment losses (€ m) |
79 | 99 | 169 | 87 | 29 | 25 | 89 | 78 | 83 | 48 | 449 | 337 |
| Ratio of capex to depreciation, amortisation and impairment losses |
1.68 | 1.47 | 0.56 | 1.54 | 1.24 | 1.36 | 0.67 | 1.04 | 0.73 | 2.17 | 0.86 | 1.48 |
Capital expenditure in the MAIL division rose in the reporting year from € 338 million (adjusted) to € 445 million. Th ese investments related in particular to technical equipment and machinery (€ 210 million), internally generated soft ware (€ 96 million) and other operating and offi ce equipment (€ 40 million). Th e domestic mail business invested primarily in replacing technical equipment and mail sorting machines. In addition, we developed the platform for the E-Postbrief product.
Investments in the domestic parcel business focused largely on new camera and scanning technology for the parcel centres which we used to automate more of our processes. We expanded our Packstation network and updated the necessary soft ware. We also launched the MeinPaket.de online shop, thereby expanding our online shopping services.
With regard to the retail outlets, we restructured our network and improved the soft ware in use.
In the EXPRESS division, capital expenditure totalled € 286 million (previous year, adjusted: € 370 million), representing a further decline of 23 % compared with the previous year. Investments were driven primarily by regulatory aircraft maintenance and network optimisation. Investments in property, plant and equipment focused on aircraft (€ 68 million), advance payments and assets under development (€ 118 million), technical equipment and machinery (€ 23 million) and IT equipment (€ 20 million).
Investments in intangible assets related mainly to advance payments and intangible assets under development (€ 6 million) as well as soft ware (€ 6 million).
In regional terms, we prioritised upgrading our terminals in Italy and the Netherlands and improving our Network Operation Services in Germany. In the Asia Pacifi c region, we invested mainly in India and China. In the Americas region, capex centred on aircraft conversions in the United States and on technical equipment and machinery in Mexico and Canada.
In the GLOBAL FORWARDING, FREIGHT division, € 102 million was invested in the year under review (previous year, adjusted: € 92 million). Of this fi gure, € 75 million was attributable to the Global Forwarding business unit. As in the prior year, we updated our IT infrastructure and streamlined our processes, particularly in our global applications.
Funds of € 27 million were invested in the Freight business unit, where they were used primarily for property, plant and equipment in the UK, including transport equipment.
In the SUPPLY CHAIN division, capital expenditure increased by 10 % to € 215 million (previous year, adjusted: € 195 million). Of this amount, € 198 million related to the Supply Chain business, € 15 million to Williams Lea and € 2 million to central entities. Investments were stepped up in the second half of the year and related mainly to new business activities in the Americas and Asia Pacifi c regions. Roughly 65 % of the funds went towards new business and 35 % for replacements and renewals in 2010 as a whole. Capex in the Americas region was primarily attributable to new business in the Retail, Consumer and Automotive sectors. Replacement investments focused on customerfunded projects in the Retail and Energy sectors in the Americas region. In the UK, we continued to direct capital towards warehousing and transport solutions for new and existing customers, with major investment projects being carried out in the Life Sciences & Healthcare sector and in Airline Business Solutions. Capex in other parts of Europe was limited to new and existing business solutions as well as essential replacements and saw an overall year-on-year decline of 27 %. In the Williams Lea business unit we invested in developing soft ware and in modernising IT.
Cross-divisional capital expenditure rose from € 176 million in 2009 to € 214 million in 2010. Most of these expenses related to the purchase of vehicles. Capital expenditure had been considerably reduced in this area in the previous year when vehicle operating life was extended and new vehicle orders suspended. Investments in IT equipment went down, primarily as a result of the previous year's restructuring.
Net cash from operating activities rose by € 683 million year-on-year in fi nancial year 2010 to € 1,927 million. Th is increase is mainly due to the € 1,604 million increase in EBIT. In addition, losses on the disposal of assets, which reduced EBIT by € 279 million, have been adjusted in the net income from disposal of non-current assets line item and are instead shown under net cash used in investing activities. Th e depreciation, amortisation and impairment losses contained in EBIT are non-cash expenses and are therefore adjusted. Th ey are down € 324 million year-on-year. Th e rise in working capital led to a net cash outfl ow of € 182 million, mainly due to the increase in receivables and other current assets. Th e change in working capital in the previous year led to a net cash infl ow of € 481 million.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Cash and cash equivalents as at 31 December | 3,064 | 3,415 |
| Change in cash and cash equivalents | 1,456 | 284 |
| Net cash from operating activities | 1,244 | 1,927 |
| Net cash used in / from investing activities | –1,457 | 8 |
| Net cash from / used in fi nancing activities | 1,669 | –1,651 |
Investing activities generated net cash of € 8 million in 2010, whereas the previous year saw an outfl ow of € 1,457 million. Th is was mainly due to the sale of money market funds, which led to an infl ow of cash from current fi nancial assets. Th e sale of the day-defi nite domestic express businesses in the UK and France led to a cash outfl ow. € 1,174 million was also invested in property, plant and equipment and in intangible assets, on a level with the previous year. Cash outfl ows for subsidiaries and other business units related, amongst other things, to the nugg.ad AG acquisition as well as to sub sequent payments for Flying Cargo, which was acquired in 2008.
Taken together, the changes in the cash fl ows from operating activities and investing activities resulted in free cash fl ow of € 1,935 million. Th is corresponds to a € 2,148 million improvement as against the negative prior-year fi gure of €–213 million.
Financing activities resulted in a net cash outfl ow of € 1,651 million in the reporting period. Th e dividend payment to our shareholders was the largest item in this area (€ 725 million). Cash and cash equivalents of € 641 million net were used to reduce fi nancial debt. Th e net cash infl ow seen in the previous year was due to Deutsche Bank's subscription of the mandatory exchangeable bond and to payment of the collateral for the put option for the remaining Postbank shares.
Compared with 31 December 2009, cash and cash equivalents increased from € 3,064 million to € 3,415 million due to the changes in the cash fl ows from our individual activities.
Th e Group's total assets amounted to € 37,763 million as at 31 December 2010, € 3,025 million or 8.7 % more than at 31 December 2009.
Non-current assets rose from € 22,022 million to € 24,493 million, mainly because non-current fi nancial assets increased by € 1,745 million to € 3,193 million particularly as a result of the measurement of the derivatives from the planned Postbank sale. Intangible assets also increased, rising € 314 million to € 11,848 million primarily due to an increase in goodwill that is attributable to currency translation diff erences. In contrast, property, plant and equipment declined by € 90 million to € 6,130 million, as a result of depreciation and impairment losses as well as the reclassifi cation of assets as held for sale. Investments in associates increased from € 1,772 million to € 1,847 million, due to the positive development of Postbank's earnings amongst other things. At € 973 million, deferred tax assets were up € 305 million on the prior-year level.
Current assets rose from € 12,716 million to € 13,270 million. Trade receivables in particular rose as a result of the higher sales volume, climbing by € 1,137 million to € 6,046 million. In contrast, current fi nancial assets fell by € 1,239 million to € 655 million, primarily due to the sale of securities classifi ed as available for sale. Inventories of € 223 million as at the reporting date were almost unchanged year-on-year. Cash and cash equivalents increased by € 351 million or 11.5 % to € 3,415 million. Although the dividend payment to shareholders was one of the factors that reduced this item by € 725 million, the sale of current fi nancial assets increased it. In contrast, assets held for sale decreased by € 66 million to € 113 million following the completion of the sale of the DHL Express day-defi nite domestic businesses in the UK and France.
Equity attributable to Deutsche Post AG shareholders increased by € 2,335 million or 28.6 % compared with 31 December 2009, to € 10,511 million. Th e increase was primarily due to the higher consolidated net profi t for the period and currency translation diff erences, whereas the dividend payment for fi nancial year 2009 reduced this item.
Current and non-current liabilities increased from € 16,788 million to € 17,640 million, primarily because trade payables rose by € 846 million to € 5,707 million. Th e increase in other current liabilities from € 3,674 million to € 4,047 million is mainly due to the abolition of the VAT exemption for business customers in the mail division. Financial liabilities were reduced by € 417 million to € 7,022 million. Th is applies in particular to non-current fi nancial liabilities, in part because we repaid a € 178 million municipal bond in the USa. At € 9,427 million, non-current and current provisions were also slightly below the prior-year level (€ 9,677 million). Th ey were mainly used for restructuring measures, which primarily aff ected the US express business.
Notes 33 to 38
Notes 46 to 48
Divisions, page 54
Net liquidity declined from € 1,690 million as at 31 December 2009 to € 1,382 million as at 31 December 2010 because our dividend payment and restructurings, amongst other things, led to cash outfl ows. In contrast, the equity ratio improved by 4.5 percentage points to 28.3 %.
Net interest cover shows the extent to which net interest obligations are covered by EBIT; it is calculated by dividing EBIT by net interest paid/received. Th is key indicator also improved from 1.2 to 14.3 as a result of the signifi cantly higher EBIT.
Net gearing shows the proportion of net debt to the sum of equity and net debt combined. 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. However, as we have net liquidity, the informative value of these indicators is limited. We therefore decided not to present and comment on them here.
| 2009 | 2010 | ||
|---|---|---|---|
| Equity ratio | % | 23.8 | 28.3 |
| Net liquidity ( – ) /net debt ( + ) | € m | –1,690 | –1,382 |
| Net interest cover | 1.2 | 14.3 | |
| ffo to debt1) | % | 33.6 | 35.2 |
1) For the calculation Financial position, page 41.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Non-current fi nancial liabilities | 6,699 | 6,275 |
| Current fi nancial liabilities | 740 | 747 |
| Financial liabilities | 7,439 | 7,022 |
| Cash and cash equivalents | 3,064 | 3,415 |
| Current fi nancial assets | 1,894 | 655 |
| Long-term deposits1) | 120 | 120 |
| Positive fair value of non-current fi nancial derivatives1) | 805 | 2,531 |
| Financial assets | 5,883 | 6,721 |
| Financial liabilities to Williams Lea minority shareholders | 23 | 28 |
| Mandatory exchangeable bond 2) | 2,670 | 2,796 |
| Collateral for the put option 2) | 1,200 | 1,248 |
| Net effect of the measurement of the Postbank derivatives 3) | 647 | 2,389 |
| Non-cash adjustments | 3,246 | 1,683 |
| Net liquidity ( – ) / net debt ( + ) | –1,690 | –1,382 |
1) Reported in non-current fi nancial assets in the balance sheet. 2) Reported in non-current fi nancial liabilities in the balance sheet.
3) Reported in non-current fi nancial assets and fi nancial liabilities in the balance sheet.
| € m | 2009 adjusted |
2010 | + / – % | Q 4 2009 adjusted |
Q 4 2010 | + / – % |
|---|---|---|---|---|---|---|
| Revenue | 13,912 | 13,821 | – 0.7 | 3,776 | 3,809 | 0.9 |
| of which Mail Communication | 5,820 | 5,597 | –3.8 | 1,554 | 1,487 | – 4.3 |
| Dialogue Marketing | 2,678 | 2,595 | –3.1 | 710 | 713 | 0.4 |
| Press Services | 819 | 797 | –2.7 | 209 | 209 | 0.0 |
| Value-Added Services | 328 | 339 | 3.4 | 95 | 88 | –7.4 |
| Parcel Germany | 2,574 | 2,732 | 6.1 | 768 | 835 | 8.7 |
| Retail Outlets | 806 | 800 | – 0.7 | 218 | 217 | – 0.5 |
| Global Mail | 1,679 | 1,735 | 3.3 | 453 | 480 | 6.0 |
| Pension Service | 98 | 102 | 4.1 | 21 | 24 | 14.3 |
| Consolidation / Other | – 890 | – 876 | 1.6 | –252 | –244 | 3.2 |
| Profi t from operating activities (ebit) before non-recurring items | 1,423 | 1,152 | –19.0 | 515 | 257 | – 50.1 |
| Profi t from operating activities (ebit) | 1,391 | 1,118 | –19.6 | 504 | 227 | – 55.0 |
| Return on sales (%)1) | 10.0 | 8.1 | – | 13.3 | 6.0 | – |
| Operating cash fl ow | 1,156 | 1,044 | – 9.7 | 634 | 608 | – 4.1 |
| express | ||||||
| Revenue | 9,917 | 11,111 | 12.0 | 2,672 | 2,904 | 8.7 |
| of which Europe | 5,207 | 4,960 | – 4.7 | 1,367 | 1,270 | –7.1 |
| Americas | 1,473 | 1,831 | 24.3 | 391 | 478 | 22.3 |
| Asia Pacifi c | 2,580 | 3,374 | 30.8 | 724 | 897 | 23.9 |
| eemea (Eastern Europe, the Middle East and Africa) | 1,054 | 1,216 | 15.4 | 280 | 326 | 16.4 |
| Consolidation / Other | –397 | –270 | 32.0 | – 90 | – 67 | 25.6 |
| Profi t from operating activities (ebit) before non-recurring items | 235 | 785 | >100 | 159 | 239 | 50.3 |
| Proft / loss from operating activities (ebit) | –790 | 497 | – | –358 | 218 | – |
| Return on sales (%)1) | – 8.0 | 4.5 | – | –13.4 | 7.5 | – |
| Operating cash fl ow | – 454 | 904 | >100 | 160 | 251 | 56.9 |
| global forwarding, freight | ||||||
| Revenue | 11,243 | 14,341 | 27.6 | 3,098 | 3,898 | 25.8 |
| of which Global Forwarding | 7,913 | 10,725 | 35.5 | 2,212 | 2,914 | 31.7 |
| Freight | 3,419 | 3,735 | 9.2 | 908 | 1,018 | 12.1 |
| Consolidation / Other | – 89 | –119 | –33.7 | –22 | –34 | – 54.5 |
| Profi t from operating activities (ebit) before non-recurring items | 275 | 390 | 41.8 | 70 | 132 | 88.6 |
| Profi t from operating activities (ebit) | 174 | 383 | >100 | 6 | 131 | >100 |
| Return on sales (%)1) | 1.5 | 2.7 | – | 0.2 | 3.4 | – |
| Operating cash fl ow | 524 | 244 | – 53.4 | 14 | 141 | >100 |
| supply chain | ||||||
| Revenue | 12,183 | 13,301 | 9.2 | 3,129 | 3,568 | 14.0 |
| of which Supply Chain | 11,302 | 12,237 | 8.3 | 2,909 | 3,274 | 12.5 |
| Williams Lea | 881 | 1,062 | 20.5 | 222 | 294 | 32.4 |
| Consolidation / Other | 0 | 2 | – | –2 | 0 | – |
| Profi t / loss from operating activities (ebit) before non-recurring items | –132 | 274 | – | –102 | 59 | – |
| Profi t / loss from operating activities (ebit) | –216 | 233 | – | –172 | 43 | – |
| Return on sales (%)1) | –1.8 | 1.8 | – | – 5.5 | 1.2 | – |
| Operating cash fl ow | 424 | 272 | –35.8 | 204 | 110 | – 46.1 |
1) ebit / revenue.
Deutsche Post DHL is Europe's largest postal company, delivering 66 million letters every working day in Germany. We off er all types of products and services to both consumers and business customers, ranging from standard letters and merchandise to special services such as cash on delivery and registered mail. Customers can now purchase stamps at retail outlets, stamp dispensers, online or right from their mobile telephone via text message.
In July 2010, we launched our new E-Postbrief product, a secure, confi dential and reliable form of electronic communication. One million consumers had opted for it within four months. We have also sealed the fi rst 100 contracts with business customers. Customers initially sign up to receive an address and login information, aft er which they must present valid identifi cation in order to become E-Postbrief users. A unique feature of the E-Postbrief is the hybrid letter, which can reach customers who have not yet signed up to the electronic E-Postbrief portal. Here, electronic letters are printed out and delivered reliably by a postal carrier just like traditional mail.
Our mail business focuses on Germany, where the mail market has been fully liberalised since the beginning of 2008. Competition has become more intense since then and the increasing use of electronic forms of communication has resulted in domestic mail market shrinkage. In the year under review, the market decreased by 4.8 % to around € 6.0 billion (previous year: € 6.3 billion). Our share fell slightly to 86.6 %.
Source: company estimate.
51
a.35 Domestic dialogue marketing market, 2010
Source: company estimate.
Source: company estimate.
We off er companies solutions for designing and printing their advertisements themselves as well as for calculating the best applicable postage rate. For dialogue marketing to work, customers need to be able to update their existing addresses continually and we need to strictly observe all data protection regulations. We provide our customers with online tools and services to ensure the quality of their addresses and effi cient identifi cation of target groups. Where necessary, companies may rent addresses from us from the identifi ed target groups for their own advertising campaigns. We also off er our customers a broad range of digital dialogue marketing solutions to use for cross-media and targeted advertising.
Th e German dialogue marketing market comprises advertising mail along with telephone and e-mail marketing. In the reporting year, this market shrank by 3.1 % yearon-year to a volume of € 18.7 billion. Many companies, especially mail-order companies and fi nancial service providers, have sharply reduced advertising expenditure. 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 post 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. We also partner with news paper and magazine publishers to sell subscriptions to 4,500 newspapers and magazines both online and offl ine as part of our Deutsche Post Leserservice, a service that has seen much success.
According to company estimates, the German press services market had a total volume of 16.4 billion items in 2010, a decline of 3.5 % on the prior year. Newspaper and magazine circulation has decreased although weights have remained the same. Our competitors are mainly companies that deliver regional daily newspapers. In a market shrinking overall, we held our share at 11.4 %.
As at 1 July 2010, we transferred signifi cant parts of Williams Lea Germany from the SUPPLY CHAIN division to the MAIL division. We now report on those parts as the new Value-Added Services business unit. Th is business involves the components of the mail communications value chain that our customers have entrusted us with. We operate their mailrooms and provide them with printing, enveloping and scanning services. Beyond this, Williams Lea employs its cutting-edge information technology to print and envelope the hybrid option of the E-Postbrief product.
We handle approximately 2.6 million parcels within Germany each working day. Our services are available to both consumers and business customers at any time and any place. Th ey can send and collect parcels and small packages at some 20,000 retail outlets and points of sale, more than 2,500 Packstations and around 1,000 Paketboxes. Our Packstations are located in approximately 1,600 towns and cities across Germany. Nearly 90 % of all residents in Germany are just about 10 minutes or less away from the nearest Packstation. Consumers can also go online to purchase shipping boxes, buy postage for parcels, place collection orders and track items.
We are also continually evolving our services for business customers. In the online market place, which continues to see strong growth, both suppliers and customers appreciate that orders are carried out swift ly, simply and securely. Th at is why we do more than merely transport catalogues, goods and returns. We support our customers throughout the entire process, from the moment the order is placed and the purchase is made, to shipping the product and hedging against non-payment. Our new online shop, MeinPaket.de, is a pertinent example. Designed with small and medium-sized retailers in mind, customers can use the shop to position their products online. MeinPaket.de places security for retailers and shoppers at centre stage whilst delivering variety and high entertainment value with editorials and other feature content. Th e site uses a central checkout function that allows customers to make purchases in a secure environment.
In addition to standard parcel exports for cross-border e-commerce, we have also been off ering return services in 10 countries in Europe since November 2010. Our product portfolio is planned to be expanded in 2011.
Th e German parcel market volume totalled around € 6.8 billion in 2010, some 7.9 % more than the prior year. For years now, e-commerce has been a central driver of growth. Growth in mail-order business, a key target market for parcel services, was not slowed by the fi nancial crisis or the insolvency of mail-order company Quelle. An increasing number of Germans are shopping online and consumer confi dence has risen of late, resulting in another year of double-digit growth in e-commerce. Th e business-tobusiness market also benefi ted from the economic upswing. At around 39 %, our overall market share in 2010 remained at the prior-year level.
We carry mail across borders and off er international dialogue marketing services. We also serve business customers in key domestic mail markets, including the USA, the United Kingdom, the Netherlands and Spain.
Our customers receive a high quality of service that ranks us amongst the top postal companies in the world in terms of transit times. Th e innovative products we introduce to respond to customer and market needs set us apart from the competition. Our portfolio therefore includes physical, hybrid and electronic written communications, giving customers the fl exibility to decide what best suits their needs. Customers abroad tap into our expertise in order to do business successfully on the German market. We have also launched a new package for the online shopping marketplace in Asia, which is considered the chief driver of cross-border shipment volumes.
Source: company estimate.
Th e global market volume for outbound international mail was approximately € 6.4 billion in 2010. Our business environment in the reporting year was shaped by lingering economic weakness and tougher competition. However, we braved this diffi cult market and managed to win back market share. We expect our market share for 2010 to be 16.5 %.
As at 1 July 2010, we transferred signifi cant parts of Williams Lea Germany from the SUPPLY CHAIN division to the MAIL division. We now report on those parts as the new Value-Added Services business unit. Th e previous year's segment reporting fi gures were adjusted accordingly.
Revenue in 2010, which had 1.3 additional working days, was € 13,821 million and therefore slightly below the prior year's fi gure of € 13,912 million. Since 1 July 2010, we have been required to apply value added tax (VAT) to revenues generated with business customers. In order to retain this important customer group, we increased our graduated discount scale. Revenue in the second half of the year suff ered as a result. Positive currency eff ects were € 37 million for full-year 2010.
Annual revenue in the Mail Communication business unit fell from € 5,820 million to € 5,597 million. Th e decline primarily refl ects the fact that we increased our discounts for business customers when the VAT requirement went into force. We retained and regained quality-conscious customers; however, some of our more price-sensitive customers turned to competitors.
In the regulated mail sector, we kept prices stable as dictated by the price-cap procedure. According to a comparative study that we conducted, our postage rates still rank amongst the lowest in Europe. Th e survey accounted for 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) | ||||||
|---|---|---|---|---|---|---|
| 2009 | 2010 | + / – % | Q 4 2009 | Q 4 2010 | + / – % | |
| Business customer letters | 6,663 | 6,566 | –1.5 | 1,732 | 1,742 | 0.6 |
| Private customer letters | 1,292 | 1,260 | –2.5 | 386 | 378 | –2.1 |
| Total | 7,955 | 7,826 | –1.6 | 2,118 | 2,120 | 0.1 |
Our customers' advertising expenditure was slightly up again at the end of the year. However, their overall advertising budgets remained limited in the reporting year. It is above all the mail-order companies that invest less in paper-based advertising and more in online advertising to win new customers. Besides, the year 2009 saw an increase in election materials posted in the run-up to Germany's parliamentary elections. All in all, volumes declined for both addressed and unaddressed advertising mail in the reporting year. Revenue fell 3.1 % from € 2,678 million in 2009 to € 2,595 million in 2010.
Glossary, page 232
Earnings, page 38
In the fourth quarter, we saw a slight increase in advertising mail revenue and volumes, above all for our product Einkaufaktuell.
| mail items (millions) | ||||||
|---|---|---|---|---|---|---|
| 2009 | 2010 | + / – % | Q 4 2009 | Q 4 2010 | + / – % | |
| Addressed advertising mail | 6,323 | 6,074 | –3.9 | 1,732 | 1,697 | –2.0 |
| Unaddressed advertising mail | 4,580 | 4,285 | – 6.4 | 1,209 | 1,247 | 3.1 |
| Total | 10,903 | 10,359 | – 5.0 | 2,941 | 2,944 | 0.1 |
Revenue in the Press Services business unit totalled € 797 million in the reporting year, 2.7 % below the prior-year fi gure of € 819 million. Circulations continued their downwards trend and publications were discontinued in the German press services market. Nevertheless, average publication weights remained stable. In the fourth quarter, revenue stabilised near the prior-year level.
Revenue in the new Value-Added Services business unit reached € 339 million, exceeding the previous year's fi gure of € 328 million by 3.4 %. Growth in our document management and mailroom services was the main reason for the increase. In the fourth quarter, revenue fell to € 88 million (previous year: € 95 million) on account of the invoicing process for several large projects being deferred.
Revenue in the Parcel Germany business unit was € 2,732 million in the reporting year, improving on the previous year's high fi gure of € 2,574 million by 6.1 %. Revenue growth was even more pronounced in the fourth quarter, which saw mail-order companies benefi t from the economic upturn, and we more than compensated for the losses incurred as a result of the insolvency of Quelle GmbH, one of our customers. At the same time, mail-order business is growing alongside the expansion of e-commerce, a trend that was refl ected in our higher business customer volumes.
| 2009 | 2010 | + / – % | Q 4 2009 | Q 4 2010 | + / – % |
|---|---|---|---|---|---|
| 648 | 680 | 4.9 | 183 | 202 | 10.4 |
| 113 | 113 | 0.0 | 37 | 37 | 0.0 |
| 761 | 793 | 4.2 | 220 | 239 | 8.6 |
Revenue generated by our approximately 20,000 retail outlets and sales points saw a slight decline from € 806 million to € 800 million, mainly due to lower internal revenues.
In the Global Mail business unit, revenue for 2010 increased by 3.3 % on the previous year, from € 1,679 million to € 1,735 million. Th e rise was attributable to the continuing recovery of the global economy as well as positive currency eff ects. Fourth-quarter revenue was up by as much as 6.0 %. Mail volumes declined, due to the sale of our French subsidiary DHL Global Mail Services SAS in 2009 and lower volumes in the unaddressed mail business in the Netherlands.
a.42 Mail International: volumes
| mail items (millions) | ||||||
|---|---|---|---|---|---|---|
| 2009 | 2010 | +/– % | Q4 2009 | Q4 2010 | +/– % | |
| Global Mail | 6,654 | 6,005 | – 9.8 | 1,705 | 1,497 | –12.2 |
Th e division's full-year 2010 EBIT fell by 19.6 % year-on-year, from € 1,391 million to € 1,118 million. In the fourth quarter EBIT was € 227 million, down from € 504 million in the prior year. In addition to the overall market trend, the impact of VAT and expenses for expanding our digital business especially aff ected our earnings in the second half of the year. Adjusted for non-recurring expenses of € 34 million (previous year: € 32 million), which primarily resulted from closing our subsidiary Interlanden in the Netherlands, EBIT fell by 19.0 % to € 1,152 million in the reporting year (previous year: € 1,423 million). Return on sales was 8.1 % for full-year 2010.
Th e impact of the market trend, the VAT requirement and the expenses for expanding our digital business were also echoed in operating cash fl ow, which amounted to € 1,044 million (previous year: € 1,156 million). Working capital was €–895 million, remaining at the low level of the previous year (€–878 million).
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 some 100,000 employees serve more than 2.8 million customers. Customers can dispatch shipments to 675 cities all over the world for a guaranteed pre-12 delivery.
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 at is why we are constantly optimising our service to keep our customer commitments. In 2010, an independent study by PA Consulting confi rmed that we are the most reliable service provider for express parcels worldwide. DHL is the global market leader in the international express services sector.
International, time-defi nite courier and express shipments are our core business. Our Time Defi nite and Same Day services off er a choice of delivery at either a specifi c time or as quickly as possible. In some markets, our portfolio is complemented by Day Defi nite service as well as special services such as customs brokerage, clinical trials and repair and return.
Our customers usually make use of our customer service numbers or the internet when ordering transport services. However, customers can also leverage our extensive network of Service Points, which in Germany consists primarily of Deutsche Post retail outlets. Since 2010 we have been off ering an international Time Defi nite product called DHL Express Easy at these points of sale. DHL Express Easy is particularly simple to use and facilitates shipping and payment for less experienced customers. We have also made progress in the special industry solutions we off er, for instance by gaining new customers for our DHL Medical Express service.
At a time when the impact of globalisation on climate and nature is a live issue, particularly in the logistics sector, we were the fi rst express service provider to off er climateneutral shipping products in the form of our GoGreen product, which we launched in 2006 and which is now available in more than 30 countries. Moreover, in certain markets our fl eet to some extent already consists of vehicles fuelled by bio-methane.
Glossary, page 232
In 2010, we added another four Boeing 777s to our AeroLogic aircraft fl eet. Th e current intercontinental fl eet now comprises eight 777s, three 767s and nine 747s. We plan to add three more 767 aircraft to the fl eet by 2012. All of these aircraft comply with the latest environ mental standards.
Whilst the average load factor in the sector is approximately 54 %, we have a load factor of around 80 % on our intercontinental routes. Optimum utilisation of the aircraft means that we are supporting the Group's sustainability strategy and contributing to meeting climate protection goals. In addition, by expanding our fl eet of aircraft we have increased our dedicated capacity by 40 %, which allows us to process even greater volumes concurrently.
Furthermore, we have the most extensive coverage compared with the competition, serving more than 450 airports outside of the United States. Our new direct fl ights between Hong Kong and Leipzig, Paris and Cincinnati, and Frankfurt / Leipzig and Cincinnati mean that we can off er next-day delivery to customers in Europe and the United States, respectively.
DHL has enjoyed a strong global positioning in the international express business for many years and is the international express market leader in all regions outside of North America. Moreover, we are continuing to expand our presence and infrastructure in growth markets such as Asia, for example through construction of the Shanghai hub in northern Asia.
During the crisis year of 2009, we maintained our leading position in the international time-defi nite express market with a share of around 37 %. We achieved this by steadily improving our service. Customers praised us for our service when fl ights were severely disrupted by the ash cloud migrating from the Eyjafj allajökull volcano in Iceland. Th e current study by PA Consulting also indicates that we are ahead of our competitors in terms of reliability for shipments to Asia, another reason for the loyalty of our customers.
In 2010, we streamlined our portfolio and sold our day-defi nite domestic express businesses in the United Kingdom and France. Since then, our local teams have been successfully focussing on our core business, the Time Defi nite product line.
Th e Leipzig hub is also gaining in international signifi cance due to the expansion of AeroLogic's express network between Europe and the Asian and emerging market regions. More than 90 % of all international shipments in Europe are now sent via Leipzig.
Market volume: € 5,288 million
16% tnt 23% ups 37% dhl 10% FedEx
1) Includes the tdi express product. 2) Country base: be, ch, de, es, fr, it, nl, pl, se, uk. Source: mrsc, annual reports and desk research.
During the year under review, we kept our service promise in full. DHL is considered to be the most reliable provider of international shipping from North America to Asia and vice versa. Both existing and new customers honour our reliability by showing great loyalty. Our refocus on the international express business and withdrawal from the domestic US express business have thus shown to be successful.
Since October 2010, our US customers have been able to send shipments to Europe, Latin America, the Middle East and Asia for pre-9 or pre-12 delivery. We have also made progress in environmental protection. During the reporting year, we began replacing our fl eet with electric and hybrid vehicles.
We also maintained our position in the other sub-regions of the Americas region, Latin America (Mexico, Central America, Brazil and Spanish-speaking South America), Canada and the Caribbean. By expanding our hub in Panama, we more than doubled capacity and increased the frequency of connections. In the year under review, our Disaster Response Team provided assistance to regions hit by earthquakes in less than 48 hours, for which it received signifi cant external recognition.
Asia remains the growth driver for the express business. We maintained our leading position in the Time Defi nite International product line with a share of 34 % of the market.
According to the aforementioned study by PA Consulting, we are the most reliable provider of courier services for shipments within Asia and on intercontinental routes to and from Asia.
DHL has proved to be the most reliable and fastest international express service provider in China, a key market in Asia Pacifi c. Furthermore, our global leadership team co-operates closely with experienced local managers. For instance, Board of Management member Ken Allen was elected to the board of management of the joint venture between DHL and Sinotrans.
With respect to customer satisfaction, DHL is ahead of the competition overall and in key categories in India and China. Th is is underlined by the numerous awards we have received in this region. Two of the three countries in which we were given the highest marks for the quality of our customer service are in Asia.
We also maintained our market leadership in the international time-defi nite express segment in the EEMEA region (Eastern Europe, the Middle East and Africa) with a share of 46 %, not least due to our long-standing presence and good infrastructure in this region. In addition to an extensive air network, we maintain an effi cient road network that is used across our DHL divisions.
In 2010 we celebrated 30 years in Qatar and our 35-year anniversary in Lebanon, both evidence of our pioneering spirit.
1) Includes the tdi express product. 2) Country base: ca, mx, br, us. Source: mrsc, annual reports and desk research.
Market volume: € 4,361 million
1) Includes the tdi express product. 2) Country base: au, cn, hk, in, jp, kr, sg. Source: mrsc, annual reports and desk research.
1) Includes the tdi express product. 2) Country base: ae, ru, za. Source: mrsc, annual reports and desk research.
59
In fi nancial year 2010, revenue in the EXPRESS division increased by 12.0 % year-onyear to € 11,111 million (previous year: € 9,917 million). We achieved this above all with the help of the continuing recovery of the global economy, improved service quality and our focus on the international express business. Th e rise in revenue was 9.8 % aft er adjustment for positive currency eff ects in the amount of € 612 million, the acquisition of Shanghai Quanyi Express Co. Ltd. and the sale of our day-defi nite domestic businesses in the UK and France.
Th is organic growth can be attributed mainly to the increase of 6.0 % in per-day shipment volumes in our TDI product line as well as higher revenues from fuel surcharges. Weight per shipment in the TDI product line showed a substantial rise of 11.4 % on the prior year to a level signifi cantly above that existing before the economic crisis, evidence that we maintained our position in the international business.
Organic revenue growth in the fourth quarter amounted to 7.5 %. Th is amount was slightly below the full-year fi gure due to the fact that the economy had already begun to recover in the comparative prior-year quarter. Per-day shipment volumes for the TDI product line increased by 6.4 %. Revenue and volumes in our DDD product line declined, mainly due to the sale of our day-defi nite domestic businesses in the UK and France.
| € m per day | 2009 adjusted |
2010 | + / – % | Q 4 2009 adjusted |
Q 4 2010 | + / – % |
|---|---|---|---|---|---|---|
| Time Defi nite International (tdi) | 22.5 | 24.9 | 10.7 | 24.4 | 26.3 | 7.8 |
| Time Defi nite Domestic (tdd) | 4.4 | 4.5 | 2.3 | 4.8 | 4.8 | 0.0 |
| Day Defi nite Domestic (ddd) | 6.2 | 4.5 | –27.4 | 6.4 | 4.0 | –37.5 |
| thousand of items per day | 2009 adjusted |
2010 | + / – % | Q 4 2009 adjusted |
Q 4 2010 | + / – % |
|---|---|---|---|---|---|---|
| Time Defi nite International (tdi) | 463 | 491 | 6.0 | 487 | 518 | 6.4 |
| Time Defi nite Domestic (tdd) | 589 | 643 | 9.2 | 634 | 679 | 7.1 |
| Day Defi nite Domestic (ddd) | 771 | 501 | –35.0 | 827 | 468 | – 43.4 |
Revenue for 2010 dropped by 4.7 % in the Europe region to € 4,960 million (previous year: € 5,207 million). Th e reason for the decline was the sale of our day-defi nite domestic businesses in the UK and France. Adjusted for these sales and the positive currency eff ects of € 93 million, which resulted primarily from our activities in central Europe, the UK and Scandinavia, organic revenue grew by 1.4 %.
Organic revenue also developed positively in the fourth quarter, with a year-onyear rise of 3.1 %. Daily TDI shipment volumes made a signifi cant contribution to this develop ment: at 7.0 %, they outperformed their growth rates of the previous three quarters, exceeding the level prior to the crisis year of 2009.
Revenue in the Americas region surpassed the prior-year fi gure, rising 24.3 % to € 1,831 million in the reporting year (previous year: € 1,473 million). Th is includes positive currency eff ects of € 114 million. Adjusted for these eff ects, revenue still grew organically by a considerable 16.6 %. Th e US business in particular substantially exceeded our expectations with organic revenue growth of 24.7 %. Th is encouraging growth trend continued in the fourth quarter.
In 2010, we benefi ted from the rapid economic rise in the Asia Pacifi c region to signifi cantly boost revenue by 30.8 % to € 3,374 million (previous year: € 2,580 million). Adjusted for positive currency eff ects of € 331 million and the acquisition of Shanghai Quanyi Express Co. Ltd., revenue outperformed the general economic trend in the region with a rise of 16.9 %. Th e increase resulted from signifi cantly higher shipment volumes across all product lines and higher fuel surcharge revenues.
Business in the EEMEA region (Eastern Europe, the Middle East and Africa) continued to improve in 2010, with revenue growth of 15.4 % to € 1,216 million (previous year: € 1,054 million). Adjusted for positive currency eff ects of € 74 million, organic revenue growth amounted to 8.3 %. Daily shipment volumes improved continuously in all product lines.
Th e restructuring of our express business is progressing as planned. Revenue increased signifi cantly on the prior year and the cost savings generated were refl ected in earnings. EBIT for the EXPRESS division rose from €–790 million in 2009 to € 497 million in 2010. Adjusted for restructuring costs, EBIT increased considerably by € 550 million to € 785 million (previous year: € 235 million) with a margin of 7.1 % (previous year: 2.4 %).
EBIT for the fourth quarter of 2010 improved from €–358 million to € 218 million. Adjusted for restructuring costs, EBIT of € 239 million was generated in the fourth quarter (previous year: € 159 million) with a margin of 8.2 % (previous year: 6.0 %).
Operating cash fl ow, which includes cash outfl ows for restructuring, improved signifi cantly, rising from €–454 million to € 904 million for full-year 2010 and from € 160 million to € 251 million in the fourth quarter. Whilst our operating result increased substantially, restructuring costs were reduced compared with the previous year.
With its Global Forwarding and Freight business units, DHL is the world's leader in air and ocean freight services and one of the leading overland freight forwarders in Europe, the Middle East and North Africa. We develop customised transport solutions for our customers, provide capacity and co-ordinate the transport of goods and infor mation in more than 150 countries, using the competence of our approximately 41,000-strong workforce and a team of reliable partners.
We broker between our customers and freight carriers and combine their orders to reach volumes that allow us to secure cargo space and charter capacity from airlines, shipping companies and freight carriers on favourable terms. 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 non-current assets.
In Global Forwarding, DHL is the world leader in air freight services and one of the leading providers of ocean freight services. Around 30,000 employees work to ensure the transport of all kinds of shipments by air or sea. Our logistics solutions span the entire supply chain, from the factory to the shop fl oor. Th ey also include special transport-related services. We store, collect and deliver the goods, handle customs formalities, insure the load and supply product-related information. In this way, we ensure safety and reliability across national borders. Our customers come from companies of all sizes. Th ey operate primarily in the Technology, Pharmaceuticals, Automotive, Engineering & Manufacturing, Consumer and Fashion & Apparel sectors. We also plan and implement industrial logistics projects worldwide, in particular for the 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.
thousand tonnes2)
1) The representation of market shares has changed because the crisis distorted market volume data and because research institutions defi ne market size inconsistently. 2) Data based solely on export freight tonnes.
Source: annual reports, press releases and company estimates.
Th e air freight market improved in 2010 compared with the previous year. Demand was up; however, freight capacity shortages existed, resulting in a substantial rise in freight rates. For this and other reasons, we signifi cantly expanded the charter business of our subsidiary StarBroker. Due to a well-established network, we were able to help our customers overcome the challenge that faced the air freight industry as a result of the eruption of the Eyjafj allajökull volcano in Iceland.
In the ocean freight business, we are the world leader in less-than-container-load services and we are one of the two leading providers of full-container-load services. Th e ocean freight market declined in 2009 compared with the prior year. However, we were able to increase our volumes in 2010 from 2.615 million to 2.772 million TEU s, which brought us back up near pre-crisis levels.
Th e market handled substantial volume increases, especially in the fi rst half of 2010. Market capacities were stretched, particularly on trade lanes between Asia and both Europe and North America, which presented a challenge.
With a workforce of around 11,000 in 53 countries, DHL's Freight business unit is one of the largest overland freight forwarders in Europe, the Middle East and North Africa. In this business, we also see ourselves as a broker of capacity. Our overland transport services include full-truckload, part-truckload and less-than-truckload solutions. We also off er intermodal transport services with other carriers, especially rail transport companies. Our range of services also comprises handling customs formalities and providing insurance.
In 2009, the European market for road transport shrank by around 16 % year-onyear as a result of the fi nancial and economic crisis. Based on our own calculations, we were able to expand our market share slightly. Since the beginning of 2011 a signifi cant volume increase has however again been recorded.
Th e GLOBAL FORWARDING, FREIGHT division increased revenue in the reporting year by 27.6 % to € 14,341 million (previous year: € 11,243 million). Th e total includes positive currency eff ects of € 752 million. Revenue grew organically by 20.9 % in the reporting year. Our freight forwarding business performed well, especially in the second half of the year.
Th e Global Forwarding business unit generated € 10,725 million in revenue, up 35.5 % on the prior-year fi gure of € 7,913 million. Th e increase was 27.3 % aft er adjustment for positive currency eff ects of € 648 million. Despite high freight rates and fuel prices throughout the year 2010, we were able to improve gross profi t by 18.0 % from € 1,948 million to € 2,298 million.
a.50 Ocean freight market, 20091): top 4
1) The representation of market shares has changed because the crisis distorted market volume data and because research institutions define market size inconsistently. 2) Twenty-foot equivalent units.
Source: annual reports, press releases and company estimates.
1) Country base: total for 20 European countries, excluding bulk and specialties transport.
Source: mrsc market studies and forecasts in 2008 to 2010, Eurostat 2009, annual reports, company websites and estimates.
Our fi nancial year 2010 saw a very positive year-on-year trend in transport volumes, especially in the air freight business, although growth in the fourth quarter was slightly less than in the preceding quarters. Freight capacity shortages persist and as a result the prices for transport services have increased. Overall, freight rates were high in the reporting year, falling only slightly in the fourth quarter. Th e high prices primarily aff ected trade lanes between Asia and Europe as well as over the Pacifi c. In the fi rst nine months of the year, we passed on these higher costs to our customers with a short time-lag. Margins stabilised in the fourth quarter. Our gross profi t margin for the year refl ects this.
Year-on-year air freight volumes were up by 18.8 % in 2010, climbing by 5.8 % in the fourth quarter over the already very high fi gures in the third quarter. Volume and revenue increased particularly in our growth markets of South America, North Asia and the Middle East as well as Central Europe. Air freight revenue in the reporting year was up 37.3 % on the prior year.
| 2009 adjusted |
2010 | + / – % | Q 4 2009 adjusted |
Q 4 2010 | + / – % |
|---|---|---|---|---|---|
| 3,957 | 5,431 | 37.3 | 1,209 | 1,500 | 24.1 |
| 2,450 | 3,446 | 40.7 | 621 | 925 | 49.0 |
| 1,506 | 1,848 | 22.7 | 382 | 489 | 28.0 |
| 7,913 | 10,725 | 35.5 | 2,212 | 2,914 | 31.7 |
| a.52 Global Forwarding: revenue | ||
|---|---|---|
| a.53 Global Forwarding: volumes | ||
|---|---|---|
| thousands | |||||||
|---|---|---|---|---|---|---|---|
| 2009 | 2010 | + / – % | Q 4 2009 | Q 4 2010 | + / – % | ||
| Air freight | tonnes | 3,734 | 4,435 | 18.8 | 1,135 | 1,185 | 4.4 |
| of which exports | tonnes | 2,116 | 2,458 | 16.2 | 640 | 656 | 2.5 |
| Ocean freight | teu s1) | 2,615 | 2,772 | 6.0 | 687 | 682 | – 0.7 |
1) Twenty-foot equivalent units.
Our ocean freight business continued to perform well in 2010. Volumes increased by 6.0 % on the prior year. In the fourth quarter, volumes were on a par with the high fi gures recorded in the fi nal quarter of 2009 due to the fact that volumes in that period had already recovered from the economic crisis. Full-year 2010 revenue increased by 40.7 % because we were able to pass on the higher prices resulting from the very high freight rates to our customers mainly in the fi nal months of the year. Th e trend in our business in the growth markets of South America, the Middle East and North Asia was especially encouraging.
In our industrial project business, revenue and gross profi t continued to improve noticeably on the prior-year period, especially in North and South America as well as in North Asia.
Th e Freight business unit generated revenue of € 3,735 million in 2010, exceeding the previous year's fi gure of € 3,419 million by 9.2 %. Revenue increases were seen primarily in Germany and both southern and eastern Europe. When adjusted for positive currency eff ects of € 106 million, organic revenue was up by 6.1 % on the prior year. At € 991 million, gross profi t exceeded the previous year by 1.4 %. We succeeded in returning to profi tability in the reporting year aft er having felt the impact of the restructuring costs in 2009, thanks to a marked increase in overall productivity and the successful turnaround of loss-making national companies.
On 1 January 2010, the EXPRESS division transferred responsibility for the domestic freight business in Sweden to the Freight business unit. Th e prior-year amounts were adjusted accordingly.
Th e division's EBIT improved considerably year-on-year due to strict cost discipline, stabilising margins and positive currency eff ects. It improved in the reporting year by 120.1 % to € 383 million (previous year: € 174 million). Adjusted for restructuring costs (€ 7 million; previous year: € 101 million), EBIT before non-recurring items reached € 390 million, outperforming the prior-year fi gure by 41.8 %. Th e EBIT margin was 2.7 %.
In the fourth quarter alone, EBIT rose from € 6 million to € 131 million. Adjusted for restructuring costs (€ 1 million; previous year: € 64 million), EBIT before non-recurring items was € 132 million. Th e fourth-quarter EBIT margin was 3.4 %.
In 2010 as a whole, we reduced operating and indirect costs relative to volume growth to the point that productivity exceeded pre-crisis levels. We expanded our sales operations and aligned them more closely with individual sectors. As a result, we were able to tap new business and increase existing customer volumes, thereby securing present and future contributions to earnings.
Net working capital in the fourth quarter was up only slightly on the prior quarter as volumes have continued to rise. Nevertheless, the resulting eff ect and cash paid for restructuring reduced operating cash fl ow for full-year 2010 to € 244 million (previous year: € 524 million). Compared with the prior quarter, our cash fl ow in the fourth quarter was up by more than 40 %.
Th e SUPPLY CHAIN division comprises two business units: Supply Chain and Williams Lea. In the Supply Chain business, we provide contract logistics solutions along the entire supply chain for customers from a wide variety of sectors. Williams Lea is a global provider of business process outsourcing and a specialist in corporate infor mation solutions, which involves managing companies' information and communication processes.
We provide customers in many industry sectors with services that span the entire supply chain. From planning, sourcing, production, storage and delivery to returns logistics and end customer service, our customers rely on us to ensure a smooth logistics fl ow. We off er warehousing, distribution, managed transport and value-added services, business process outsourcing, supply chain management and consulting as well as lead logistics provider solutions. We ensure that our customers' products and information reach their markets quickly and effi ciently, thus securing them crucial competitive advantages. With local insight and global scale, we serve customers in more than 60 countries and provide support for complex transformation in their processes.
Our Supply Chain business provides expert solutions in six key strategic sectors: Consumer, Retail, Technology, Life Sciences & Healthcare, Automotive and Energy. Each sector is managed by a dedicated sector head who is supported by a global team of specialists who handle customer projects and develop sector-specifi c supply chain solutions.
Consumer and Retail are two of our largest sectors, both of which off er major growth potential for the division. We manage supply chains all the way from the source of supply to the retail shelves for customers in these sectors. Th is calls for fl exibility, reliability and cost effi ciency as the key value drivers for our services in these sectors, which range from international inbound logistics and warehouse and transport services to packaging and other value-added services.
Glossary, page 232
Customers in the Technology sector require fast, fl exible and effi cient supply chains. Demand for integrated product and service logistics is increasing. Our port folio ranges from inbound-to-manufacturing services and warehouse and transport services to integrated packaging, returns management and technical services. Th is is one of the sectors in which customers are increasingly requesting integrated solutions that are being developed across all DHL divisions.
We are also increasingly providing cross-divisional, integrated solutions in the Life Sciences & Healthcare industry, where supply chains and logistics processes are still evolving in many parts of the world. Cost pressure is rising steadily and quality control at the highest possible level is a must for all our customers.
Th e Automotive industry is one of our truly global sectors. In recent years, it has seen a slowdown in growth in the industrial countries, with production shift ing to emerging markets such as China, India and Brazil. For our inbound-to- manufacturing, aftermarket logistics and lead logistics provider solutions, the key factor is our ability to off er lower costs and a high degree of fl exibility and reliability.
Th e fast-growing Energy sector is another sector where the DHL divisions provide integrated logistics solutions for both the build and run phases of major energy projects.
Williams Lea specialises in outsourced corporate communication and infor mation management, ranging from offi ce document and marketing solutions to customer correspondence management. We off er these solutions to customers in the fi nancial, retail, consumer goods, pharmaceutical, publishing and public sectors as well as the legal sector. As at 1 July 2010, parts of Williams Lea Germany were transferred to the MAIL division.
DHL is the global market leader in contract logistics with a market share of 8.4 % (2009). In this highly fragmented market, the top 10 players account for only about 25 % of the overall market, the size of which is estimated to be € 135 billion. Whilst we are the leading provider in our two 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 shall succeed in leveraging 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. Due to our broad range of international services and long-lasting customer relationships, we have been able to build on our leading market position. In addition, we are leveraging DHL's excellent customer relationships to win new business for Williams Lea.
Market volume: € 135 billion
Source: Transport Intelligence.
As at 1 July 2010, we transferred signifi cant parts of Williams Lea Germany from the SUPPLY CHAIN division to the MAIL division. Th e prior-year segment reporting fi gures were adjusted accordingly.
Revenue and earnings in the SUPPLY CHAIN division developed positively in 2010. Revenue for the reporting year rose 9.2 % to € 13,301 million (previous year: € 12,183 million). Adjusted for positive currency eff ects of € 707 million, organic revenue growth amounted to 3.4 %. However, growth was suppressed by two factors: a loss of trading volume with the Arcandor Group in Germany and our withdrawal from under performing contracts in the reporting period.
In the fourth quarter, revenue increased by 14.0 % to € 3,568 million (prior year: € 3,129 million). Adjusted for positive currency eff ects of € 225 million, organic revenue growth amounted to 6.8 %.
In the Supply Chain business unit we generated revenue of € 12,237 million in the year under review (previous year: € 11,302 million). With the exception of the Retail sector, we experienced strong growth in all sectors, particularly Automotive, followed closely by the Consumer, Life Sciences & Healthcare and Energy sectors. Performance in the Retail sector was negatively impacted by the loss of business with the Arcandor Group, the Quelle insolvency and lower Karstadt trading volumes.
In the Americas region, the situation improved in the reporting year, particularly in the Automotive and Consumer sectors and in transport activity, following the previous year's period of economic slowdown and insolvency uncertainty regarding major auto motive customers. Growth also resulted from new contracts in the Consumer and Life Sciences & Healthcare sectors, boosted by the strong US dollar. In the Asia Pacifi c region, new business wins and trading upturns led to substantial revenue growth, especially in Australia, China and Th ailand. In Europe, we benefi ted from additional revenue from new and existing business in the UK Life Sciences & Healthcare sector. Revenue declined in Germany, primarily due to the loss of trading volumes with the Arcandor Group. Revenue growth in Europe as a whole was suppressed by our withdrawal from underperforming contracts.
In the year under review, Williams Lea generated € 1,062 million in revenue, up 20.5 % on the prior-year fi gure of € 881 million. Th is growth primarily refl ected increases in the Marketing Solutions and Legal Services sectors.
Th e Supply Chain business unit concluded additional contracts worth € 1.1 billion in annualised revenue with both new and existing customers. Th is corresponds to the previous year's fi gure. We reviewed all the major new business start-ups in 2010 and overall revenue exceeded expectations by more than 10 %. Th e annualised contract renewal rate remained at a high level, similar to that of 2009.
Earnings, page 38
Total revenue: € 13,301 million
Divisional EBIT improved substantially due to the increase in existing business activity and higher contributions from new business wins, underpinned by cost reductions and favourable exchange rates. In 2009, earnings had been impacted by expenses of € 310 million due to the Arcandor insolvency, our withdrawal from underperforming contracts and impairment charges relating to legacy properties in Europe.
EBIT for the SUPPLY CHAIN division increased by € 449 million to € 233 million (previous year: €–216 million). Restructuring costs totalled € 41 million in the year under review (previous year: € 84 million). Adjusted for these costs, EBIT before non-recurring items amounted to € 274 million (previous year: €–132 million). Th e EBIT margin before non-recurring items for full-year 2010 rose from –1.1 % to 2.1 %.
Fourth-quarter EBIT amounted to € 43 million (previous year: €–172 million). Th is fi gure contains restructuring costs of € 16 million (previous year: € 70 million) and an expenditure of € 21 million for a special end-of-year employee bonus. Th ere were signifi cant expenses impacting EBIT in the fourth quarter of 2009 which amounted to € 144 million.
EBIT before non-recurring items amounted to € 59 million (previous year: €–102 million). Th e EBIT margin before non-recurring items amounted to 1.7 % in the fourth quarter, a drop of 0.5 percentage points due to expenses for the end-of-year bonus.
Operating cash fl ow decreased to € 272 million in the reporting year (previous year: € 424 million) due to the restructuring measures introduced in 2009. We maintained our effi cient working capital position as revenue continued to rise.
Becoming the employer of choice is one of the core objectives of our Strategy 2015. By attracting, nurturing and retaining talented and motivated people, we support the other two core objectives, being the provider of choice and the investment of choice. As at 31 December 2010, we employed 418,946 full-time equivalents in more than 220 countries and territories and therefore 1.4 % fewer than in the previous year. Th e sale of DHL Express' day-defi nite domestic business in the United Kingdom and France was the primary reason for the decline. Staff costs declined as a result by 2.4 % to € 16,609 million (previous year: € 17,021 million).
| 2009 | 2010 | + / – % | |
|---|---|---|---|
| At year-end | |||
| Headcount 1) | 477,280 | 467,088 | –2.1 |
| Full-time equivalents 2) | 424,686 | 418,946 | –1.4 |
| of which mail3) | 144,968 | 144,640 | – 0.2 |
| express 3) | 95,048 | 87,536 | –7.9 |
| global forwarding, freight 3) | 40,331 | 41,359 | 2.5 |
| supply chain 3) | 130,441 | 132,075 | 1.3 |
| Corporate Center / Other | 13,898 | 13,336 | – 4.0 |
| of which Germany | 166,880 | 165,781 | – 0.7 |
| Europe (excluding Germany) | 120,074 | 110,462 | – 8.0 |
| Americas | 66,833 | 68,268 | 2.1 |
| Asia Pacifi c | 57,897 | 61,239 | 5.8 |
| Other regions | 13,002 | 13,196 | 1.5 |
| Average for the year | |||
| Headcount | 488,518 | 464,471 | – 4.9 |
| of which hourly workers and salaried employees | 435,072 | 413,830 | – 4.9 |
| Civil servants | 49,691 | 46,866 | – 5.7 |
| Trainees | 3,755 | 3,775 | 0.5 |
| Full-time equivalents | 436,651 | 421,274 | –3.5 |
| 1) Including trainees. |
2) Excluding trainees.
3) Adjusted.
71
1) Full-time equivalents as at 31 December.
In the MAIL division, the number of employees fell slightly by 0.2 % to 144,640.
Compared with the previous year, the number of employees in the EXPRESS division fell by 7.9 % to 87,536. Th e decline was primarily related to the sale of the DHL Express day-defi nite domestic business in the UK and France as well as further restructuring in Europe.
In the GLOBAL FORWARDING, FREIGHT division, the number of full-time equivalents went up by 2.5 % to 41,359 as a result of organic growth.
Th e SUPPLY CHAIN division increased its staff level by 1.3 % to 132,075. Th is was a result of growth in new and existing business particularly in the Americas and Asia Pacifi c regions. Th e increase more than compensated for the staff reductions that had become necessary as a result of the insolvency of the Arcandor Group in Germany and our withdrawal from underperforming contracts in Europe.
In the Corporate Center/Other segment, staff levels continued to decline, dropping by 4.0 % to 13,336. We were able to reduce costs, particularly through savings in the indirect functions such as IT and accounting.
Th e majority of our employees still work in Germany, where the number has remained stable. Our workforce in the rest of Europe has declined, primarily as a result of the sale of the domestic day-defi nite express business in the UK and France. Staff levels in the Americas, Asia Pacifi c and the other regions, however, have grown.
Our current planning calls for maintaining the total number of employees at the current level in fi nancial year 2011.
Attracting the right person at the right time for the right position is critical for the future of Deutsche Post DHL. We therefore established our People Strategy in 2009 with the prime objective of positioning the Group as the employer of choice in our industry. It identifi es the following fi ve priorities:
Our management sets an example, making a key contribution towards achieving the goals of Strategy 2015. In keeping with the strategy, we launched a set of fi ve leadership competencies in the reporting year: making our customers more successful, shaping direction, driving high performance, developing others and developing themselves.
1) All organisational units in Germany.
We invest in the health and safety of our workforce and we employ a Group-wide system that is closely tied to risk management. Th e system includes, for example, our Corporate Health Award, with which we recognise exemplary health initiatives within the Group each year. In 2010, targeted programmes allowed us to help improve the health of our workforce, from early disease detection to stress prevention. At 7.4 % (previous year: 6.9 %) we again managed to keep the illness rate in Germany at a low level. Th e increase compared with the previous year corresponds to the general development in the country, when the age structure eff ect is taken into consideration.
In the area of occupational safety we implement Group-wide traffi c safety measures, which help to raise awareness amongst employees about dangers and to prevent accidents. In March 2010, we renewed our commitment to the European Road Safety Charter, reinforcing our devotion to this cause.
Our corporate health management system received awards again this year: the European Commission and the BKK Bundesverband (German association of company health insurance funds) presented us with the German Corporate Health Award and the special Mental Health award. Th e German-language business newspaper Handelsblatt and the market research institute EuPD Research gave us the Corporate Health Award for integrating our corporate health management system into all of our principles and processes. Certifi cation and testing organisation TÜV Rheinland renewed the ISO 9001 : 2008 certifi cation of our occupational health and safety organisation's quality management system yet again in the reporting year.
| 2009 | 20104) | |
|---|---|---|
| Number of workplace accidents2) | 13,0143) | 17,283 |
| Accident rate (number of accidents per 1,000 employees per year) | 71 | 96 |
| Number of working days lost due to accidents (calendar days) | 275,3513) | 376,873 |
| Working days lost per accident | 21.2 | 21.8 |
| Number of fatalities due to workplace accidents | 1 | 0 |
1) Includes employees of Deutsche Post ag. 2) Accidents when at least one working day is lost; including accidents on the way to and from work. 3) Adjusted. 4) As at 3 February 2011 since accidents may also be reported after the balance sheet date.
1) Number of trainees, annual average: 3,775.
By training and qualifying young people, we not only secure our future cadres of specialists, we also make a key contribution to society. In 2010, we hired approximately 1,700 trainees and students in Germany. We off ered employment contracts to around 70 % of eligible trainees. We foster the top 5 % of our roughly 3,600 trainees in Germany in our top trainee programme. Th ey are off ered special seminars and permanent contracts upon successfully completing the programme. Perspektive Gelb is our programme to give young people, whose career prospects seem bleak, a chance at a traineeship. In 2010, we took on nearly 80 % of the 221 participants in the class of 2009.
73
We attract young people for specialist and leadership positions with our Groupwide Graduate Opportunities Worldwide programme. We hired 29 university graduates in the reporting year. In an eff ort to be considered an employer of choice amongst students, we created the JOIN internship programme in Germany. Interns are integrated into projects and provided with both responsibility and a personal mentor. Th e programme complements our partnership with AIESEC, the world's largest student-run organisation. We have placed over 600 AIESEC interns across our Group since 2002.
We are increasingly using the internet to reach potential applicants: each year, we advertise more than 12,000 jobs online and receive an average of more than 120,000 applications. Th e Top Employer Web Benchmark 2010 put out by Potentialpark Communications, a market research institute, ranked our online career portal amongst the top fi ve in Germany and Europe.
In 2010, 75,000 employees around the world took advantage of more than 2,000 courses available through our online training platform, mylearningworld.net, to develop their career or themselves personally. We cultivate a select group of top performers by off ering them an MBA programme at a business school or entry into a talent programme such as ACTIVATE. Our goal is to fi ll leadership positions with employees from within our own ranks. Our internal placement rate fell to 88.9 % in the reporting year, down from 89.9 % in the previous year. Th is rate is based on the grades B to F in our internal performance evaluation system. We encourage our employees to gather experience in diff erent company units. In 2010, 24.8 % of internal job placements involving top executives were cross-divisional (2009: 19.1 %).
Our divisions also off er programmes designed to meet their specifi c needs. For instance, the MAIL division introduced its leadership programme Betriebslenkerprogramm in the reporting year. Based on systematic succession planning, 156 employees will receive career development guidance and support as they move from mail carrier to management positions. Th e EXPRESS division launched the Certifi ed International Specialist programme, providing an integrated training curriculum. Th e division's entire 100,000-strong workforce will attend the introductory course, which lays the foundation for further specialised training. Our GLOBAL FORWARDING, FREIGHT division has continued to evolve its DHL Freight Forwarding Academy and saw the number of participants in the global e-learning programme jump from 48,000 to approximately 124,000. Th e SUPPLY CHAIN division focused its eff orts in the reporting year on crossdivisional sales team training.
In 2009, we introduced a new variable incentive and share matching system for executives in an eff ort to bolster the performance of our organisation over the longer term. It focuses incentives on Group performance, makes executive pay more performance- based and honours outstanding achievements. Th e system provides executives with company shares and thus a direct stake in the success of the company. Th e scope of the system was expanded in the reporting year.
a.62 Gender distribution in top management1), 2010
1) Based on fi rst and second-level executives.
We want to be the employer of choice for our entire workforce and all applicants, irrespective of their gender, race, religion, age, disability or sexual orientation. Diversity management is an integral part of the recruiting policy in the Group's Code of Conduct. We are taking part, for instance, in the test project, Anonymous Application Process, applied by the German Federal Anti-Discrimination Agency, in order to test whether we can use this methodology to attract new groups of applicants.
In light of the demographic shift taking place in our society, we are striving to attract the entire range of possible applicants. We know that the population will continue to age and that this will aff ect the Group's employment structure. In a test project, we are analysing in what ways this is changing recruitment processes and the requirements for training and professional development. In co-operation with Münster University in Germany, we are also researching age-related diff erences as regards job motivation and satisfaction. We intend to use the results to develop suitable measures.
One of our top priorities is to increase the share of women in leadership positions. Th e share in top management was 14.6 % in the reporting year (previous year: 15.6 %). We continued to improve the work-family balance environment at Deutsche Post DHL. In Bonn, Germany, we expanded our child day care off ering to include a companysupported nursery school. Across Germany we work with PME Familienservice, which off ers a host of services such as placing day care professionals, providing childcare for our employees' children in emergency situations and school holiday programmes.
We are committed to ensuring that people with a disability enjoy equal treatment when it comes to taking part in working life. At Deutsche Post AG, the average annual employment rate of people with a disability is 7.9 % (as at 18 January 2011), well above the national average in the German private sector (3.7 % in 2008, source: Bundesagentur für Arbeit (German federal employment agency)).
| Headcount | ||
|---|---|---|
| 2009 | 2010 | |
| State-regulated parental leave | 2,302 | 2,036 |
| Unpaid holiday for family reasons | 2,559 | 2,419 |
| Part-time employees 2) | 67,010 | 63,126 |
| Share of part-time employees (%) | 38.4 | 36.9 |
1) Includes employees of Deutsche Post ag.
2) Excluding employees in partial retirement in the release phase.
Th e results of our annual employee opinion survey are an indicator of the progress we are making on our way to becoming the employer of choice. Th e fourth edition of our Group-wide survey in 2010 saw a clear rise in the response rate to 79 % (previous year: 76 %). All 11 key performance indicators saw improvements. Th e highest marks went to customer promise with 77 %, co-operation with 74 % and working conditions with 73 % (previous year: 70 %, 71 % and 67 %, respectively). Although the ratings for measures taken as a result of the survey (53 %, previous year: 44 %) and for implementation of our First Choice Group initiative (59 %, previous year: 51 %) were up considerably, we continue to see room for improvement.
75
Our staff submit ideas and suggestions for improvement to contribute to our company's success. In 2010, their suggestions numbered 227,803. We used many of them to improve processes, reduce repair and energy costs and do our part for the environment. We saved, for example, around € 400,000 just by using more economical container carts to move items around in our mail centres. We have now introduced idea management in other countries in Europe, Asia and North America.
| Cost1) | € m | 12.0 | 9.3 |
|---|---|---|---|
| Benefi t | € m | 262.6 | 219.5 |
| Accepted suggestions for improvements | number | 178,303 | 183,323 |
| Suggestions for improvements | number | 226,993 | 227,803 |
| Savings per employee | € | 550.24 | 470.83 |
| 2009 | 2010 |
1) Based in part on forecasts.
Corporate responsibility is an integral part of our Strategy 2015. Our motto is "living responsibility", which embodies our programmes and initiatives in the areas of environmental protection, disaster management and education that are designed to support our strategic goals.
Our GoGreen programme is aimed at minimising the impact of our business on the environment. Th e central goal of the programme is to improve our carbon effi ciency by 30 % over 2007 levels by the year 2020. Th is also includes emissions generated by the transport services of our sub-contractors, which currently make up approximately 75 % of the Group's total carbon footprint. Improving carbon effi ciency will also diminish our dependency on fossil fuels, reduce cost risks associated with energy and fuels and prepare the Group for a future in which carbon dioxide (CO2) emissions will be subject to pricing and customers increasingly ask for "green" solutions.
We account for and quantify our CO2 emissions based on the internationally recognised Greenhouse Gas 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) or from our subcontractors (Scope 3).
In the year under review, our Scope 1 and Scope 2 carbon emissions were approximately 6.0 million tonnes (previous year: 5.6 million tonnes). Th ese emissions resulted from our direct use of roughly 490 million litres of liquid fuel (diesel, petrol etc.), 15 million kilowatt hours of gaseous fuels (natural gas, biogas) as well as 1,500 million litres of kerosene and 3,600 million kilowatt hours of energy (electricity, natural gas etc.) in our facilities.
1) Scopes 1 and 2.
Th e rise in emissions resulting from our direct use was caused primarily by air freight, which we are transporting ourselves to a greater extent in place of subcontracting.
In order to consistently report our emissions now that air traffi c has also been incorporated into the European Union emissions trading system (EU-ETS), we plan to adapt the dividing line between our own and sub-contracted air transport (Scope 1 and Scope 3) to the rules of the EU-ETS. As a result, we expect a signifi cant quantity of total emissions to shift from Scope 1 to Scope 3.
We shall detail the adjusted emissions information including carbon emissions from sub-contracted transport services in the next Corporate Responsibility Report, which will also include a statement on our carbon effi ciency in 2010.
GoGreen is essentially the Group's umbrella programme for our environmental activities. It is made up of fi ve action areas. Our advances in these areas in the reporting year include:
77
Our GoHelp programme draws on our global presence, logistics expertise and the commitment of our workforce to support logistical eff orts at airports in the aff ected regions in the aft ermath of a natural disaster. In co-operation with the United Nations, we run two global programmes: DHL Disaster Response Teams are deployed to the region when disaster strikes; Get Airports Ready for Disaster is our initiative to help local authorities and airport staff in disaster-prone regions prepare for emergencies.
In order to save lives in the wake of a natural disaster, it is critical to distribute relief aid quickly and properly. Airports are oft en the place where bottlenecks form in these situations. Our Disaster Response Teams are made up of around 300 specially trained DHL logistics experts who co-ordinate the fl ow of arriving relief aid. Th e teams palletise, sort and store the shipments properly for further transport and then hand the goods over to aid organisations. Bottlenecks and other delays that slow the further transport to people in need can be avoided this way. Due to our global network, a DHL Disaster Response Team can be readied for deployment in less than 72 hours. Our teams deployed four times in 2010: to Haiti and Chile aft er the earthquakes and to Guatemala and Pakistan following the fl oods. All told, 105 volunteers spent 83 days on assignment and handled around 7,000 tonnes of relief aid free of charge.
Th e Get Airports Ready for Disaster project held readiness training sessions together with the UN Development Programme at Kathmandu Tribhuvan International airport and four regional airports in Nepal. More training is planned in 2011 in disasterprone regions in Asia.
Deutsche Post DHL and the United Nations Children's Fund, UNICEF, have fought together to reduce infant mortality around the world for the past fi ve years. Our Group supported a host of UNICEF projects during this time, primarily in Kenya, Peru and India. Th is health-based partnership came to a close at the end of the reporting year as we wish in the future to focus on our GoGreen, GoHelp and GoTeach programmes.
With our GoTeach programme, we are striving for improved equality and fair opportunities in education. We are a founding partner and the largest business sponsor of the community educational programme Teach First Deutschland, which we have supported since February 2009. Th e programme attracts outstanding university graduates to under take a two-year fellowship at underprivileged schools. Th ese fellows assist teachers in the classroom and work closely with the children, organising study groups, holding offi ce hours, tutoring and helping with homework. By partnering with this programme, we hope to provide opportunities for less privileged children in Germany. Th e programme also allows us to get to know young people, who as fellows gain valuable social skills over and above their professional qualifi cations, making them attractive potential candidates for work in our company.
In 2010, we developed two mentoring programmes in which our staff members may volunteer to take part. Volunteers initially tutor 25 school children from Teach First Deutschland schools and mentor 23 fellows in their personal and professional development for a period of 15 months. Th e programme is also designed to help selected fellows get their careers off the ground. In addition, since 2009 we have organised two-week summer camps for our employees' children and for children from associated schools. A total of 300 children took part in 2010.
In September 2010, we entered into a partnership with Teach For All, a network of 18 national partner organisations that model themselves on Teach First Deutschland. Together, we wish to expand the network to over 30 partner organisations so that we can promote better education. At the national level, we shall be working with the organisations in Peru, Chile, Argentina, India, Spain and Brazil. GoTeach also includes initiatives to help children of our employees reach higher levels of education. For example, our new programme UPstairs awards scholarships that not only provide fi nancial support but also off er mentoring, internships within the Group and additional courses such as foreign languages and computer skills. UPstairs kicks off in 2011 with 50 scholarship holders in South Africa, Indonesia, Mexico and Romania. We plan to be awarding a total of 600 scholarships by 2014.
Deutsche Post DHL Annual Report 2010
79
In 2010, our performance in the area of sustainability was again evaluated by qualifi ed agencies and institutes. Sustainable management and visible attention to corporate responsibility are becoming increasingly important as criteria for making investment decisions on fi nancial markets as well. Sustainable Asset Management gave us a rating of 85 out of 100 points (previous year: 91 points). We received the highest marks in the categories "operational eco-effi ciency", "fuel effi ciency" and "environmental reporting". Th e average score for transport and logistics companies was 58 points (previous year: 61). 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 we are also listed in the FTSE KLD Global Climate 100 Index along with other indices in the FTSE KLD index series. Th e Carbon Disclosure Project gave us a rating of 97 out of 100 points (previous year: 63 points). Th is makes us the second-best company in the world and puts us in the Carbon Disclosure Leadership Index. Moreover, we are one of only 10 % of the companies ranked by CDP worldwide that received the top mark ("A") for our climate protection eff orts. As a result, we were also added to the Carbon Performance Leadership Index.
In our Corporate Responsibility Report published on our website in April 2010, we provided additional information on sustainability and performance indicators not included in the Group Management Report. Like the preceding Sustainability Reports, the report was 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 the GRI, the Corporate Responsibility Report achieved a GRI level of "B+", meaning it fulfi ls key requirements and provides information that has been verifi ed by independent experts. Our next Corporate Responsibility Report will also be published on our website in the second quarter of 2011.
In 2010, the Group centrally purchased goods and services having a total value of approximately € 8.5 billion (previous year: € 7.7 billion). As in past years, this fi gure does not include transport services because the divisions generally procure these services themselves. However, Procurement is gradually becoming more involved in this process.
Given the fact that the aft er-eff ects of the global recession were still being felt in the reporting year, Procurement continued its eff orts to reduce Group expenses. As in previous years, we have bundled products and services and purchased all-inclusive packages from high-performance suppliers both regionally and internationally.
dp-dhl.com/responsibility
a.66 Procurement expenses, 2010
As part of our global programme to increase our telecommunications effi ciency, we sealed deals with high-capacity partners in three more regions. Vodafone now handles the data services of the DHL divisions in 67 countries in the emerging markets and also takes over our mobile and data services in the Asia Pacifi c region. We also concluded an agreement with British Telecom for data and fi xed voice services in this region. In Latin America, the Mexican provider Telmex will serve the DHL divisions in Argentina, Brazil, Chile, Columbia and Mexico. Our total savings should top € 190 million over the next fi ve years as a result of this worldwide programme.
In Europe and the United States, we signed master agreements with Hewlett Packard which involve the purchase of complete print services rather than printers alone, a move that makes the requirement more transparent and optimises what we need. Th e new arrangement will not only reduce costs, it will also reduce the Group's energy consumption and carbon footprint.
For the fi rst time, we completed a global master agreement for the procurement of transport and loading equipment (e. g., forklift trucks) that involves a new operating concept. Th e agreement created a model for hiring equipment that allows us to operate more fl exibly and optimise the costs of our machinery fl eet. Th e SUPPLY CHAIN division will be the fi rst to use the agreement in the Europe, Middle East and Africa region.
Procurement again focused much of its eff orts on evaluating key suppliers and developing the Group's relationships with them. In the reporting year, we also began co-operating with a bank to test a new fi nancing and payment model in Germany and other European countries. Th e Group will benefi t as the model helps the divisions, for example, to improve their working capital. Suppliers will benefi t from the programme's advantageous fi nancing options.
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 the head of Corporate Procurement. Th is allows us to bundle the Group's worldwide requirements and still meet the local needs of the business units.
In addition, strategic procurement was reorganised into Global Sourcing Operations and Global Sourcing Services. Th is makes it possible to take greater advantage of the synergies between category managers. Regional competence centres are taking more responsibility for strategic procurement and the work associated with it.
Th e DHL Procurement Offi ce China in Shanghai, which was opened in 2009, completed a number of successful projects. Th is offi ce follows the principle of best cost country sourcing, which aims for an optimum balance between cost, quality and risk. Examples of the product categories that can be purchased through the China offi ce are packaging materials, printed materials, corporate wear and advertising materials. Th e offi ce works closely with all regions. Specialised Technology Resources, an independent company, routinely evaluates the suppliers.
81
Procurement is always looking for ways to enhance its internal services and in some cases provides support when divisions are off ering procurement services to customers. We off er this as an integrated procurement and logistics service in countries where we have many years of purchasing experience. Th ese opportunities arise in particular in the supply chain business.
A group of Procurement staff members from various regions and product cat egories, known as the Green Team, take care of the environmental aspects of procurement. One of their responsibilities is to integrate key environmental indicators into the procurement process. For instance, energy and carbon effi ciency was added to the calculation for total cost of ownership as a result of the team's work. In many cases, our purchasing decisions are now made with environmental aspects in mind.
For example, we decided to purchase offi ce supplies for all of our business units in the USA from the supplier Offi ce Depot in the future because they off er a wide range of "green" products. Th e offi ce product supplier also enables its customers to calculate the CO2 emissions generated from using their products. In Germany, we made it easier for internal users to recognise environmentally friendly items in our electronic ordering system.
We instituted a global paper policy stipulating that priority is given to purchasing recycled paper. It applies to purchases of paper, paper products, printed materials and packaging materials. Any external service providers making purchases for the Group must also observe this policy. Th ese measures represent our contribution to resource conservation. Moreover, the Group has made a commitment to use paper and paper products as effi ciently and sparingly as possible.
As in previous years, we continued to retrofi t our warehouses in a number of regions with energy-effi cient lighting. Th e new lights not only reduce energy costs and carbon emissions, they also off er a brighter working environment. We also retrofi tted offi ce spaces in Asia.
We are testing vehicles with environmentally friendly drive systems in a number of test projects. One example is the 10 Iveco Electric Daily vehicles we purchased. Th ese 3.5-tonne delivery vehicles, the fi rst of their kind in Europe, are scheduled to join the German parcel delivery fl eet in the coming year. Other examples include 15 Mercedes-Benz Vito E-Cell vehicles as well as the world's fi rst 18-tonne hybrid lorry, which we are testing in day-to-day operations in the UK together with Volvo Trucks.
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 United States and to some extent in Mexico and several European countries. Since 2010, we now have users in Spain, Portugal, Luxembourg, Italy, Hungary and the Czech Republic.
We have also increased our use of e-sourcing in order to make our procurement processes more effi cient and transparent. E-sourcing allows us to handle all the important steps in the tender process electronically, including bidding auctions. In the reporting year we created the necessary structure and trained approximately 350 internal users. Since then e-sourcing is used wherever practical.
In 2011, we intend to expand our use of electronic procurement processes and also raise the number of bidding auctions. Th is will gradually include more purchasing of transport services and thereby enhance the effi ciency and transparency of our procurement processes.
We also plan to enhance partnerships with key suppliers in order to take early advantage of new products and ideas.
As a service provider, the Group does not engage in research and development activities in the narrower sense and therefore has no signifi cant expenses to report in this connection.
In Germany, we maintain a fi rst-class, effi cient and environmentally friendly nationwide transport and delivery network consisting of 82 mail centres and 33 parcel centres that process 66 million mail items and some 2.6 million parcels each working day. Th e high level of automation in our mail business remained at over 90 %.
Our customers have come to expect us to deliver the highest quality standards. Th ey rate the quality of our services based on whether posted items reach their destinations quickly, reliably and undamaged. Our quality management is based on a system that is certifi ed each year by Technischer Überwachungsverein Nord (TÜV Nord certifi cation and testing organisation). We attained excellent results in letter transit times within Germany again this year. 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 post box collections are delivered to their recipients the next day.
In the parcel business, we again achieved the previous year's excellent transit time results in 2010. Nearly 90 % of the deliveries we collected from business customers reached their destination 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 Cooperation. According to EU specifi cations, 85 % of all cross-border letters posted within the EU must be delivered within three days of posting. We expect to signifi cantly exceed this requirement again, reaching a level of 96 %.
83
Due to our co-operation with retailers, our approximately 20,000 retail outlets and sales points have increased average weekly opening times from 46 to 49 hours. Surveys of our retail outlet customers are conducted annually by Kundenmonitor Deutschland, the largest consumer satisfaction study in Germany, to determine their level of satisfaction with our services. Our overall service quality has been receiving top marks for years. In the reporting year, postal retail outlets in particular saw yet another increase in customer satisfaction. Our partner-operated outlets received their highest satisfaction ratings since the study began in 1997. More than 90 % of customers are served within three minutes as confi rmed by impartial mystery shoppers from TNS Infratest, which we hire to conduct around 30,000 TÜV Rheinland-certifi ed 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 manage ment system in our mail and parcel businesses. As part of our GoGreen initiative, we off er consumers and business customers climate-neutral shipping options. We are also testing vehicles with hybrid and electric drive technology as well as energy saving lighting in our facilities.
A fundamental component of our Focus 2010 initiative is to continuously improve our quality of service. To achieve this goal, we track the ever-changing requirements of our customers and measure our services, for instance using mystery shoppers. In the reporting year, we were able to resolve 90 % of customer complaints within the prescribed period. Our eff orts have been well worth it: in China, for example, we received the Best Call Centre Award 2010 and in the UK we were ranked fi rst in overall e-mail service in 2010 and were amongst the 50 leading call centres.
We are constantly improving our workfl ows in order to work eff ectively and costeffi ciently. Standardising our processes plays a vital role in this. For example, in May 2010 we introduced a globally standardised internet platform that gives customers all over the world simple, uniform access to our services, regardless of whether they are acting as individuals or as organisations which operate worldwide. At the same time, we have continued developing solutions to allow customers to link their own IT systems with ours to provide them with direct access to our delivery services.
We have implemented more than 400 initiatives as part of our First Choice programme. Th e areas in which we made progress include invoicing and customs clearance of shipments upon arrival in the target country. Th is has improved the reliability and shortened end-to-end delivery times.
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. A new study by PA Consulting shows that we are the world's most reliable provider of express services, a testimony to the fact that we are keeping our customer promise.
dhl.com
Th e operational safety, compliance with standards and the quality of service at our facilities are reviewed regularly. In addition, around 170 locations have been certifi ed by the Transported Asset Protection Association (TAPA), one of the world's most renowned safety associations. Th e fi rst facilities in North America were also certifi ed in 2010. Further more, in an audit of the security facilities of our Leipzig hub, US Customs and Border Protection (CBP) referred to them as exemplary in numerous respects. For us, the security of our customers, their shipments and our employees is and will remain a crucial factor.
As a service provider, customer satisfaction is the litmus test of our business. In 2010, we again surveyed more than 19,000 customers in 49 countries, asking them how satisfi ed they were with our products and services. Based on the results, we adopted some 1,000 First Choice measures, 200 of which were put into action together with our customers. We worked together with one key customer in the technology sector to increase their in-plant logistics productivity by 33 % whilst at the same time cutting turnaround times from 10 to two hours, saving the customer around € 50,000 annually at one location alone.
As at November 2010, more than 4,500 staff members, including the entire management team, had been certifi ed in First Choice methodology. We intend to take advantage of this in 2011 and implement even more improvements for our customers.
Th e uniform quality scorecard we implemented for our branches in the previous year has now been all but instituted throughout the Global Forwarding business unit.
Our customers are recognising our eff orts to improve quality. Amongst them Huawei, a technology group, presented us with the Excellent Core Partner Award for outstanding cross-sector services for the third time in a row. We were the only logistics company to be given this award. We also won the Phoenix Trophy of Effi ciency for improved customs clearance services in Brazil, an award that for 10 years had been won by a local competitor. All in all, our customers attest to the fact that the quality of our products and services has improved. Customer satisfaction was up in many countries compared with the previous year.
Our goal is to lead the supply chain industry in practices and methodologies that guarantee our customers the highest level of service and the most added value. We use globally consistent processes in order to deliver replicable solutions and uniform high service standards to our customers around the world. Our relentless drive to improve our processes has paid off : customer satisfaction showed signifi cant improvement based on a customer survey in 2010. Eight out of 10 customers confi rm DHL as their provider of choice in the supply chain business.
Strategic focus, page 100
85
We have defi ned a number of performance indicators, such as safety, productivity and inventory accuracy, which enable us to measure and monitor the quality of our service. In 2010, we achieved more than 95 % of our service standards worldwide.
A critical factor of sustainable success is consistent and high quality of service, particularly during the fi rst 12 months of a new customer project. In order to meet customer expectations during this early phase, dedicated teams of project managers in all the regions where we do business are trained in the leading methods of project management and equipped with a set of standard tools.
Another key to long-term success is to constantly improve the quality and effi ciency of our existing business. We completed more than 1,400 improvement projects in the reporting year, many in co-operation with our customers. Guided by our Process Improvement Advisors, measures were developed and planned for improving performance, simplifying processes and reducing costs. Th ese eff orts saved more than € 100 million, which we shared with our customers.
| Deutsche Post DHL | |||||
|---|---|---|---|---|---|
| Division Brand |
mail Deutsche Post |
dhl | express dhl |
global forwarding, freight dhl |
supply chain dhl |
| Brand area | • Mail Communication • Dialogue Marketing • Value-Added Services • Press Services • Philately • Pension Services |
• Global Mail • Parcel Germany |
• Express | • Global Forwarding • Freight |
• Supply Chain |
| Sub-brand | • Williams Lea |
As a globally operating service company, eff ective brand management is amongst the central elements of our strategy. High brand recognition and the good reputation of our Deutsche Post and DHL brands make us more attractive to shareholders, employees, customers and suppliers and these qualities contribute to the fi nancial success of the Group. According to a survey we conducted in December 2010, the DHL brand has already achieved very high brand recognition (89 %) amongst international express and logistics decision makers.
Strategic focus, page 99
dhl-brandworld.com
mail division, page 51
epost.de
Th e DHL brand introduced a new slogan in 2010: "Excellence. Simply Delivered". Direct and to the point, it eff ectively sums up our promise to be easily accessible for service and make our customers more successful. Th e slogan and its underlying promise help to advance our Strategy 2015 and our goal to become the number one logistics company for the world.
How customers experience their interactions with our approximately 470,000 employees worldwide is critical to our brand image. We outfi t staff members who have direct customer contact with corporate wear and give our vehicles and buildings as well as our promotional and informational materials a uniform and memorable look. We want all our staff to continue to play an active role as our brand ambassadors.
In 2010, the internet platform dhl Brand World went online, giving customers, employees and anyone interested a peek behind the scenes of the world of DHL. Th e site off ers brand news, customer success stories and other DHL activities, from advertisements to partnerships to our commitment to social responsibility. Despite very little advertising, aft er only a few months the site already receives up to 80,000 visits each month. DHL Brand World was awarded the Annual Multimedia Award 2011.
Our brands face tough competition both domestically and internationally. Clear positioning and a lasting impression facilitate purchasing and investment decisions. Guided by market research, we invested over € 100 million in the year under review in developing and promoting our brand performance.
Based on our One DHL approach, we systematically reinforced our branding work. In April, we started the fi rst advertising campaign based on our global, integrated advertising concept. More than 1,600 advertisements were placed in over 250 publications in 21 countries and 16 languages.
Representing an important innovation for Deutsche Post, the e-Postbrief product was launched in 2010 and a broad-based nationwide media campaign was put in motion from July to September to promote it. Using television and other advertisements, billboards, internet banners, advertisements in our retail outlets, unaddressed mail and promotions, the population in Germany was encouraged to secure their personal address. Customers have been able to register directly online since November.
By the end of October, one million customers had already registered their personal address. Our associated routine customer survey indicates that product recognition is growing continuously. In early November, 62 % of the population in Germany was aware of the E-Postbrief, making the campaign a huge success and giving Deutsche Post a competitive edge.
For years, we have strengthened our corporate image through partnerships with high-class brands and events, in which we act as the offi cial logistics partner and provide demanding logistics services, along with our traditional advertising campaigns. Th ese partnerships include Formula 1, the Leipzig Gewandhaus Orchestra and IMG Fashion Week, which takes place in cities such as Berlin, London, New York, Miami and Moscow. Deutsche Post is an offi cial partner of Deutscher Fussballbund (the German football federation) and DTM, German Touring Car Championships.
Expo Shanghai 2010 was the most visited world exposition of all time. More than 73 million people visited exhibits from 240 countries and organisations in an area of 5.4 km2. Th e expo's central attraction, the China Pavilion, alone received more than eight million visitors and was therefore one of the most popular showpieces. DHL was one of the organisations that contributed ideas to Urban Planet, which illuminated the "Better City. Better Life" theme of the expo.
We have become partners in two major sporting events for 2011. During the Rugby World Cup in New Zealand, DHL will transport the equipment for the 20 participating teams between the 48 training facilities and 13 match locations. For the Volvo Ocean Race, DHL will ensure that the sailing equipment is safely transported between all 10 harbours spread across fi ve continents.
Our success is measurable: in 2010, the consulting company Semion Brand Broker calculated Deutsche Post's brand value to be € 12,692 million, putting us again this year 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. In 2011, we aim to continue our success ful branding work. We shall continue our One DHL approach and establish a uniform image that will clearly set the DHL brand apart from the competition. We are determined to raise aided awareness of DHL to over 90 % in all segments of the logistics sector and unaided awareness to over 70 % in the logistics sector and in key markets. By the end of 2011, 60 % of those who purchase logistics services should be considering DHL as a potential supplier. Our goal is to be amongst the world's 50 most valuable brands.
Th ere were no reportable events aft er the balance sheet date.
Our strong position as the market leader in the German mail business and in almost all logistics operations is the best prerequisite for further growth. Assuming that the world economy will grow by 3 % to 4 % and world trade will exceed this growth by a factor of 1.5 to 2, we anticipate that consolidated EBIT for full-year 2011 will reach between € 2.2 billion and € 2.4 billion. Th e MAIL division is expected to contribute € 1.0 billion to € 1.1 billion to this fi gure, whilst the DHL divisions should deliver € 1.6 billion to € 1.7 billion. At around €–0.4 billion, the Corporate Center / Other result should be on a par with the previous year. Consolidated net profi t before eff ects from the measurement of the Postbank instruments is expected to continue to improve in 2011 in line with our operating business.
As an internationally operating logistics company, we are faced with numerous changes and uncertainties. Our aim is to identify the resulting opportunities and risks at an early stage and to manage them with the aim of achieving a sustained increase in enterprise value. Our Group-wide opportunity and risk control system facilitates this aim. Each quarter, our managers estimate the possible impact of future scenarios and evaluate the opportunities and risks in their departments. Risks can also be reported at any time on an ad hoc basis. Th e approvals required by the risk management process ensure that management is closely involved.
Our early identifi cation process leads to uniform reporting standards for risk manage ment in the Group. To achieve this, we have made constant improvements to the relevant IT application. We also have stochastic models such as Monte Carlo simulations at our disposal for the purpose of aggregating risk during standard evaluations.
89
Th e most important steps in the process are as follows:
Internal accounting control and risk management system (disclosures required under section 315 (2), number 5 of the Handelsgesetzbuch (German commercial code) and explanatory report)
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 (EU-IFRS s) 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 (a chief fi nancial offi cer, for example) 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-based 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.
Some of the Group's primary opportunities lie in continuing to develop our markets as well as in our strategic positioning. We want to be the provider of choice, which is why we are aligning our services even more closely to the needs of our customers. We are also improving our cost structures and processes.
A number of key factors have a strong impact on our business and open up numerous opportunities.
Th e most important of these are our prospects for further growth. Advancing globalisation means that the logistics industry will continue to grow much faster than national economies. We therefore anticipate attractive growth rates in all of the logistics sectors in which we operate. Th is is especially true of Asia, where trade fl ows will continue to increase both within the continent and to other regions. We shall benefi t from this more than most given that our DHL divisions are better positioned in Asia than our competitors. Th is also applies to regions such as South America and the Middle East, which continue to see robust growth.
Further growth prospects result from closer co-operation between the DHL divisions. We are succeeding to an ever-increasing extent in off ering integrated logistics and transport solutions from a single source, a major competitive advantage, and we have established a number of initiatives designed to take advantage of this position. DHL Solutions & Innovations pools expertise within DHL and uses it to develop new solutions, such as in the areas of temperature-controlled transport, return logistics and city logistics, logistics solutions for metropolises. Sector Management is our targeted method of developing sector-specifi c solutions for our customers. We are currently focussing our attention on the sectors of Life Sciences & Healthcare, Technology and Energy. In addition, we are targeting growth sectors for selected customer groups.
Online communication and e-business are creating demand for transporting documents and goods. Our E-Postbrief is designed to increase our growth in the mail sector and our parcel business will also benefi t from growth opportunities based on e-commerce.
Finally, environmental awareness on the part of customers brings opportunities for above-average growth. Customers want to reduce their carbon emissions permanently, which is why they are increasingly requesting energy-effi cient transport and climateneutral products. We lead our sector in this area, off ering carbon-neutral mail, parcel and express products plus air and ocean freight transport.
Our Idea Management programme promotes corporate innovation and generates sustained cost savings. Over the past years, our employees have proven to be a particularly rich source of ideas for new products and improved processes.
In the strategic focus section, we have described the market opportunities we see in the various divisions and the strategies and goals we are pursuing to take advantage of these opportunities.
Employees, page 75
Page 101 ff.
91
Th e risks set out in the following are those which we presently consider to have a signifi cant, potentially 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 additional factors 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) had 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 2010, the regulatory authority (Bundesnetzagentur – German federal network agency) had issued licences to approximately 1,500 competitors, around 650 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 must be lowered if the infl ation rate in the reference period is lower than the productivity growth rate specifi ed by the regulatory authority. Individual mail prices requiring approval had to be lowered for 2011 to meet these specifi cations. Th e regulatory authority accepted an application from Deutsche Post AG to this eff ect on 27 October 2010. Th e regulatory authority will establish the conditions eff ective from January 2012 for regulating mail prices requiring approval in a price-cap procedure during the course of 2011.
Th e third European Union (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 2010, Deutsche Post AG participated in cross-border mail exchange with 22 European postal operators on the basis of the REIMS agreement.
Glossary, page 232 Glossary, page 232
Glossary, page 232
93
Th e German tax authorities have announced their intention to qualify several VATexempt mail products 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 (the Postgesetz (postal act), the Post-Universaldienstleistungsverordnung (postal universal service ordinance) and the Umsatzsteuergesetz (value added tax act)). Based on these laws, Deutsche Post AG classifi es its postal services either as VAT-exempt or VATliable. 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 products' exemption complies with current European and German law, we cannot rule out the possibility of additional tax payments.
As a result of the revision of the relevant tax exemption provisions, since 1 July 2010 the VAT exemption has only applied to specifi c universal services in Germany that are not subject to individually negotiated agreements or provided on special terms ( discounts etc.). Deutsche Post AG does not believe that the legislative amendment fully complies with the applicable specifi cations of European Community law. Due to the legal uncertainty resulting from the new legislation, Deutsche Post AG is endeavouring to clarify certain key issues with the tax authorities. Although Deutsche Post AG has implemented the required measures to a large extent, in the event of diff ering legal opinions on the part of Deutsche Post AG and the tax authorities Deutsche Post AG will consider pursuing the matter in court.
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.
Following the economic crisis, which peaked in 2009, the general economic climate has signifi cantly improved and demand for logistics services has risen. Th is resulted in increased revenue in the year under review, which leads us to expect a positive trend in the coming year. In light of the positive growth forecasts, especially for Germany and Asia, we currently do not consider it likely that the economy will soft en again in the near future with a signifi cant impact on our projected earnings. Some of our customers were economically weakened by the crisis. However, the upswing in the economy means that the probability of customer insolvencies is falling back to its normal low level. Th erefore, we do not anticipate any additional notable losses due to insolvency on the part of customers.
Key factors for success in the mail and logistics business are quality, customers' confi dence in their business partners and competitive prices. Due to our high quality and the savings generated in recent years, we consider ourselves in a position to keep any potential risk to our projected earnings from competition at a fairly low level. Our various Group initiatives also play a key role in securing our strong competitive position.
Th e global security situation became progressively worse towards the end of the reporting year. According to security agencies, terrorism presents a particularly high risk for the western world. However, the authorities have assured the public that there are currently no specifi c threats against people, institutions or enterprises.
We share the assessment of the authorities and take the heightened security risk seriously. For this reason, we analyse global threat levels on an ongoing basis and conduct regular reviews of our security concepts, adapting them where necessary.
Aft er package bombs were posted from Yemen and Greece, the companies aff ected and government authorities all over the world agreed to increase air traffi c security. Deutsche Post DHL's security concepts already fulfi l the statutory requirements, as confi rmed by numerous reviews by the authorities. Moreover, we shall continue to work together with all relevant security agencies, air traffi c authorities, government representatives and industry associations in order to ensure a high level of security. Not only shall we comply in full with all security guidelines and regulations enacted globally or by individual countries or authorities, we shall also add our own high standards to them. We intend to make a contribution to further improving security aspects and the sustainability of security measures, particularly so that our customers, business partners and employees will benefi t.
Over the past two years, the Group has responded to key strategic issues. We initiated the disposal of Deutsche Postbank AG, a Group subsidiary, and restructured the express business. We also implemented an extensive cost reduction programme, thus laying the foundation for our company to emerge from the global crisis stronger than before and to achieve sustainable and profi table growth, once the economic downturn has fully reversed. We are therefore now focussing on our core competencies in the mail and logistics businesses, with an eye towards growth and simplifi cation. Since we intend the main part of our growth to be organic, we assess the risk arising from future acquisitions as relatively low from a Group perspective.
In the MAIL division, we are aiming to remain profi table and are responding to the challenges presented by structural change. We are therefore expanding our range of services, including in electronic communications, securing our standing as the quality leader, reinforcing our position abroad and, where possible, making the prices and costs of our transport and delivery service more fl exible. We want customers to be able to access our services simply and easily. We keep a close eye on market trends and respond accordingly, so that we view the risk of a signifi cant deviation from our projections to be low.
In the EXPRESS division, we want to increase profi tability and organic growth in all product lines and regions. We are currently bolstering our presence in growth markets by investing in infrastructures. Our success will depend on general factors such as trends in business, costs and transport volumes. In the past two years we have restructured our business and reduced costs substantially, making us well-equipped to face the oncoming competition. In terms of strategy, we do not see any signifi cant, unusual risk for the division.
In the GLOBAL FORWARDING, FREIGHT division, we purchase transport services from airlines, shipping companies and freight carriers rather than providing them ourselves. As a result, in a worst-case scenario there is a risk that we shall not be able to pass on all price increases to our customers and will be forced to absorb these costs and cut into our own margins. Th e extent of the risk essentially depends on the trend in the supply, demand and price of transport services as well as the duration of our contracts.
Our SUPPLY CHAIN division provides customers in a variety of industries with solutions along the entire logistics chain. Our success is linked closely to our customers' business trends. Since we off er our customers a widely diversifi ed range of products in diff erent sectors all over the world, the incumbent risks are balanced out on the whole. Moreover, our future success also depends on our ability to continuously improve our existing business and to grow in our most important market segments and customer solutions.
Th e mark of the quality of logistics services is the extent to which they are supplied reliably and on time. To ensure that these criteria are met, we provide a complex operational infrastructure. Quality can be compromised by any problems that may arise with regard to posting and collection, sorting, transport, warehousing or delivery. We take preventive measures to guard against disruptions or malfunctions in our operational processes. Should disruptions nonetheless occur, we have drawn up emergency plans to minimise the consequences.
As an example, back in 2005 we began formulating plans in all divisions to provide for a pandemic emergency, including setting up an international crisis team. In the event of a pandemic, we want to minimise the risk of infection for our employees and maintain our business operations.
Given that emergency preparations have been made as well as the fact that 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. Potential fi nancial impacts are reduced by our insurance policies.
In addition, we use our First Choice methodology to continuously improve our processes and align them even more closely to the requirements of our customers. Should this involve capital expenditure, the Board of Management decides on any investments in excess of € 25 million. Board of Management committees make decisions on investments of more than € 10 million, with a lower threshold of € 5 million applying to 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.
Th e Information Security Committee is tasked with our Group-wide information system security. To fulfi l this responsibility, it has defi ned standards, procedures and guidelines based on ISO 27001, the international standard for information security management. In addition, Group Risk Management, IT Audit, Data Protection and Corporate Security assess and monitor IT risk on an ongoing basis.
Our operations can only run seamlessly if our essential IT systems are always available. To ensure this, we design our systems to prevent complete system failures. In addition to data centres in Germany, we also operate two central data centres in the Czech Republic and Malaysia, which allow us geographical separation and local replication of systems.
Access to our systems and data is limited. Employees only receive rights to access the data they need to do their job. Access is provided for this purpose only. All systems and data are backed up on a regular basis and critical data are replicated across data centres.
All soft ware is updated frequently to address bugs, close gaps in security and increase functionality. We employ a patch management process, a defi ned procedure for managing soft ware upgrades, to control risks that could arise from out-dated soft ware or from soft ware upgrades.
We make all eff orts to reduce the probability of a signifi cant IT incident and to guarantee the high level of service that our customers have come to expect. Despite these measures, an element of risk involving medium to high fi nancial consequences can never be ruled out entirely.
Our central pledge to E-Postbrief customers is security. E-Postbrief relies on cutting-edge encryption technology and security infrastructure. To date, all attacks on our E-Postbrief platform could be repelled without diffi culty. In order to eliminate any potential future risk, Deutsche Post invited security experts and hackers to compete to expose new ways to attack the system. Th e E-Postbrief platform was also not hacked into as part of this competition. In addition, the E-Postbrief has been certifi ed by the German Federal Offi ce for Information Security, as part of fundamental IT security.
Our Group-wide risk management system also monitors environmental policy develop ments. 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 on the results of the EU surveys on emissions for the 2004 – 2006 base periods. 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 shall have to purchase emissions rights at auction to meet our needs.
97
However, we believe that the Group is well equipped to limit any fi nancial risk due to our GoGreen programme, which aims to improve our carbon effi ciency by 30 % by 2020 compared with 2007 levels. We have also initiated further measures designed to save fuel and reduce our carbon credit requirement. Th ese include a plan to revamp our aircraft fl eet as well as continuous optimisation of our network and load factor. We consider the fi nancial impact of the related risks to be fairly low.
Our employees are essential to our future success. For this reason, we want to become the employer of choice in our sector. Now that the economy has revived in many of the countries and regions in which we operate, competition for qualifi ed employees and executives is again on the rise. Demographic change means that our staff are aging, particularly in Germany, our largest market, and the pool of potential young talent is becoming smaller. Th e risk therefore exists that we shall not succeed in recruiting and retaining suitable employees.
In order to reduce this risk, we aim to create a motivating work environment for our employees and off er them opportunities to take part in professional and employee development programmes. Th e results of our annual employee survey show that we are making progress in this area: compared with the previous year, employee approval ratings for "working conditions" improved by six percentage points to 73 %, and the ratings for "learning and development" rose by fi ve percentage points to 63 %.
In 2010, we also began introducing career paths for success-critical positions and job families. Th is secures for us the necessary young talent and creates supply and demand transparency on the human resources market.
In Germany, we are analysing the way in which personnel requirements are changing due to demographic transformation and are taking action accordingly. To guard against a lack of qualifi ed specialists, we have hired more trainees and students than in previous years. We also present ourselves to young talent as an employer at an early stage, for example by means of our join internship programme.
Although we fi nd the fi nancial impact of these risks to be moderate, we see the probability of occurrence as low due to the measures we have implemented.
Th e transaction to sell the shares in Deutsche Postbank AG held by Deutsche Post AG was restructured on 14 January 2009. Th e amended agreement provides for sale of the shares in three tranches.
In the fi rst tranche, 50 million Postbank shares were sold 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. Any claim to payment of a purchase price for the shares was thereby waived. Th e Deutsche Bank shares were held by Deutsche Post AG for a short period and were sold between April and July of 2009.
Corporate responsibility, page 75
Employees, page 73
As at 31 December 2010, Deutsche Post AG was still in possession of 86,417,432 Postbank shares. In the second tranche, an additional 60 million Postbank shares were transferred in exchange for a mandatory exchangeable bond subscribed to by Deutsche Bank AG with a cash value at the time of closing of € 2,568 million. Th e bond will be fully exchanged aft er three years. It accrues interest at a rate of 4 % per year and will mature on 25 February 2012.
Th e remaining 26,417,432 Postbank shares will be transferred via the exercise of call and put options agreed between Deutsche Post AG and Deutsche Bank AG. Both the call and the put options can be exercised between the third and fourth years aft er the date on which the agreement was concluded (25 February 2009).
Th e changes in the fair value of the forward transaction (second tranche) and the call and put options (third tranche) led to considerable volatility on the balance sheet in the past fi nancial year. In the following fi nancial years, changes in the fair value of the derivatives will continue to substantially impact net fi nance costs/net fi nancial income. To some extent, this impact will be negated by off setting changes in the fair value of the remaining shareholding in Postbank. 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 fi nancing and insurance strategy, which saved us nearly € 97 million in 2010, separates insurable risk 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.
Audits are currently underway at DHL Express (USA) and Airborne Inc. under the unclaimed property laws in the United States. According to 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.
Note 50
Note 53
99
During the past fi nancial year, risk exposure relating to the general business environment has been signifi cantly reduced due to the overall upwards economic trend. Even if it is not possible to make a reliable estimation of the extent to which the positive trend on the global logistics market will continue, we continue to assume upwards movement. Our future corporate earnings could be aff ected in particular by the economic trend in Germany as well as changes in the regulatory framework in the domestic mail market. On the whole, 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.
Deutsche Post DHL is the market leader in the German mail business and in nearly all of our logistics activities. We operate all over the world and are able to off er our customers comprehensive services that extend to all modes of transport and links in the supply chain. Our strong competitive position is the best prerequisite for further growth.
In 2009, we presented our Strategy 2015, which involves three core objectives: we want to be the provider of choice for customers, an attractive investment for shareholders and the employer of choice for our staff . Th ese goals are all closely related: satisfi ed employees lead to satisfi ed customers, on whose loyalty the economic success of the company rests. Our Group strategy continues to apply and is now closely intertwined with the business strategies of the divisions. We measure the success of our strategy by the progress we make towards our three core objectives. In this regard, we particularly measure progress in terms of our customers' satisfaction, employee satisfaction and our divisions' growth and profi tability.
We want to maintain our position as Die Post für Deutschland (the postal service for Germany). At the same time we intend to become the logistics company for the world by making use of the global strength of our logistics 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. Our goal is to continue operating highly profi tably in the MAIL division and to enhance our range of services by adding more communications products.
Th e DHL brand stands for a wide product spectrum and a global logistics presence. Our EXPRESS, GLOBAL FORWARDING, FREIGHT and SUPPLY CHAIN divisions operate in attractive market segments. We want to continue taking advantage of the excellent growth opportunities in the logistics industry.
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 share holders 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 off er our customers in all divisions services that make their lives easier and have sustained value. To this end, we have implemented a Group-wide initiative known as First Choice. Th e First Choice programme is designed to ensure a constant focus on the customer, improve the processes necessary for this and increase customer satisfaction. In the year under review, we successfully completed some 4,400 projects with these objectives in mind. In addition, our motto of "simplifi cation" means that we seek to fi nd ways to simplify our interactions with customers. Th is involves cross-divisional measures intended to facilitate customer access to our services, such as becoming more friendly, fl exible and effi cient in our contact with customers.
As the largest company in our industry, we take our environmental and social responsibility seriously. Our sustainability strategy focuses on three areas. First is the Group's GoGreen programme, which was developed to establish a systematic approach to improving our carbon effi ciency. 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 GoTeach, where we show our commitment to education.
Our Strategy 2015 is intended to help us to unlock our full potential. We are aiming for growth in our operating divisions that exceeds the annual growth of their respective markets by one to two percentage points. In order to reach this ambitious goal, in 2010 we launched a comprehensive growth programme for our logistics business that comprises the following four fi elds of activity:
Th is cross-divisional growth programme is supplemented by additional initiatives in all divisions, as described in the following sections.
We have three strategic approaches aimed at meeting the challenges of our business, both today and in the future.
Opportunities, page 91
Glossary, page 232
• Growing in digital markets 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, allowing them to calculate and purchase postage and also locate retail outlets and Packstations online and by mobile telephone. Since the middle of the year, we have also been off ering our new E-Postbrief product, a secure, confi dential and reliable form of electronic communication. To send an E-Postbrief, users pay for the specifi c service that they use. For instance, they pay € 0.55 to send a standard electronic or hybrid E-Postbrief. Th e E-Postbrief has the potential to save companies and public authorities a signifi cant portion of their costs for processing written communication. In addition to evolving the product's main features, we shall also develop new user-friendly functions. We plan to continue participating in the growing internet advertising market. In August, we acquired the German company nugg.ad AG, Europe's largest advertisement targeting platform, and with it added expertise in the online advertising market. Th is acquisition complements our online platform for local off ers, allesnebenan.de, and our Werbemanager (advertising manager), an easy-to-use tool for calculating costs and placing advertisements in a variety of media. In October, we also became the fi rst parcel delivery service in Germany to open our own online shop, MeinPaket.de.
As part of our Strategy 2015, we work towards the four objectives comprising our Focus 2010 initiative:
103
We are well positioned in our markets due to our global product off ering in air and ocean freight and in overland transport. Our goal is to achieve steady, organic growth that exceeds the market average. To achieve this goal, we pursue three approaches:
• Developing and engaging our staff Our business operates with a low level of noncurrent assets. Th e high quality of our workforce is what gives us a decisive competitive edge. Th at is why we feel it is our duty to broaden our employees' horizons and provide them with opportunities for training and professional development. For instance, talented trainees can gain international experience in one of our strategic markets by taking part in the CEO Trainee Awards. We also provide our staff members with a comprehensive programme of online courses to help them learn about new products and services or expand their overall skills base. In the year under review, 28,000 employees completed approximately 124,000 courses. Th e DHL Freight Forwarding Academy goes one step further to off er personalised develop ment planning intended to encourage continuous learning. Th e most recent employee opinion survey demonstrates that our staff appreciate these eff orts. Employee dedication in the division saw another signifi cant year-on-year improvement, jumping three percentage points to 70 %.
Brands, page 85
105
Th e SUPPLY CHAIN division withstood the economic crisis of 2008 and 2009 largely due to the successful "5 to Th rive" initiative, comprising fi ve areas for improvement. Th e initiative was focussed on increasing overall returns and profi tability.
Now that the economy has regained momentum, our operating business is again focussing more strongly on growth. As part of this process, we are building on the effi ciency gains that we have achieved over the past two years. We call our new strategy Growth Th rough Excellence and it is based on two pillars:
We are thus supporting our corporate objectives of becoming the provider, employer and investment of choice.
1 Continuous improvement We intend to keep improving in the areas of performance, effi ciency and capability and have established three initiatives to support this aim: Operations Excellence, Cost Leadership and Organisational Capability. Operations Excellence aims to ensure consistent service quality worldwide as we build on our achievements in purchasing, carbon effi ciency and ongoing quality measurement. We promote operational and technical standards aimed at guaranteeing the sustainability of our performance. We also apply the proven First Choice methodology to sustain the achievements we have realised and improve on them even further. Our Cost Leadership initiative is intended to signifi cantly reduce both direct and indirect costs and manage them eff ectively in order to increase our overall profi tability. We achieve this by leveraging purchasing effi ciency, operating discipline and best practices. Organisational Capability seeks to develop leadership qualities and enhance employee commitment. We want to attract new talent and retain and develop our existing talent to support the growth of our business.
2 Profi table growth Our Profi table Growth pillar also consists of three initiatives: Sector Focus, Strategic Products Replication and Sales Eff ectiveness. In the Sector Focus programme, we continuously deepen our expertise in our key sectors of Consumer, Retail, Technology, Life Sciences & Healthcare, Automotive and Energy. For each of these sectors, we have established dedicated global sector teams to strengthen our sales approach and to ensure knowledge exchange on best practices across regions and business units. In our Strategic Products Replication initiative, we develop and reproduce logistics solutions aimed at simplifying our customers' business processes. In doing so, we take our cue from best operating standards and proven practices from all over the world. In our Sales Eff ectiveness programme, we continuously improve the performance of our sales organisation by bolstering sales processes and customer support. We are learning to better understand our customers' business objectives and strategies, which enables us to off er them true added value. Feedback from customers and customer surveys also assist us in continuously enhancing the eff ectiveness of our sales activities.
Strategic focus, page 100
Th e global economic upturn is expected to be sustained in 2011, though the economy will be susceptible to setbacks. Uncertainty continues to prevail on the fi nancial markets. Moreover, fi scal impetus is expected to let up in the industrial nations in particular. Growth will therefore most likely fall somewhat below the fi gures for 2010. Th e International Monetary Fund (IMF) is predicting an increase of 4.4 % in global economic output in 2011. Global trade is also likely to continue rising, albeit with somewhat less momentum than in 2010 (IMF: 7.1 %, OECD: 8.3 %).
| a.69 Global economy: growth forecasts | ||||
|---|---|---|---|---|
| -- | -- | --------------------------------------- | -- | -- |
| % | ||
|---|---|---|
| 2010 | 2011 | |
| Global trade volume | 12.0 | 7.1 |
| Real gross domestic product | ||
| Global | 5.0 | 4.4 |
| Industrial nations | 3.0 | 2.5 |
| Emerging markets | 7.1 | 6.5 |
| Central and Eastern Europe | 4.2 | 3.6 |
| cis countries | 4.2 | 4.7 |
| Emerging markets in Asia | 9.3 | 8.4 |
| Middle East and North Africa | 3.9 | 4.6 |
| Latin America and the Caribbean | 5.9 | 4.3 |
| Africa south of the Sahara | 5.0 | 5.5 |
Source: International Monetary Fund (imf) world economic outlook, October 2010, updated January 2011.
In China, the government is working to keep the economy from overheating. Th e economy is therefore expected to grow somewhat more slowly (IMF: 9.6 %).
In Japan, the economic upturn is likely to weaken perceptibly. Exports will lose momen tum based on the slowdown in global trade and it is unlikely that domestic demand will be able to compensate for this defi cit. GDP growth is therefore expected to be low (IMF: 1.6 %, OECD: 1.7 %, Postbank Research: 1.3 %).
Th e economy in the United States will remain divided. Private consumption and investment in machinery and equipment will pick up, whilst no notable stimulus is expected from construction spending or foreign trade. On the whole, GDP growth is expected to be similar to that of the previous year (IMF: 3.0 %, OECD: 2.2 %, Postbank Research: 2.9 %).
In the euro zone, the economy is expected to remain on a slow upwards trajectory. Th e outlook is positive for private consumption and investment in machinery and equipment. Exports could outpace imports if the global economy sees solid growth and domestic demand rises somewhat. However, total GDP is likely to increase only marginally (ECB: 1.4 %, Postbank Research: 1.7 %).
Th e broad basis on which the German economy was resting at the start of 2011 promises a sustained upswing. Exports are expected to continue increasing, as is domestic demand. Gross fi xed capital formation is likely to rise again, which will benefi t the labour market. Against this backdrop, private consumption should increase sharply. Whilst GDP is forecast to be lower than in 2010, it is still projected to outperform the euro zone as a whole (German Council of Economic Experts: 2.2 %, Postbank Research: 2.4 %).
107
Th e price of crude oil will presumably continue increasing on an annual average. Should the economic upturn be signifi cantly stronger than anticipated, it is even possible that trading prices will rise measurably over the course of the year.
Th e US Federal Reserve is expected to maintain the key interest rate at its current extremely low level in 2011. Th e ECB is also likely to leave the key rate at 1 % for an extended period and only raise it slightly later in the year, provided the economic recovery continues and the European national debt crisis abates.
Interest rates on the capital markets are likely to experience a slight increase. However, yield spreads are expected to remain very tight, assuming that infl ation pressure stays low.
Compared with the reporting year, the growth prospects for global trade in 2011 are estimated to be dampened; however, Asia, as a global growth engine, will again develop above average.
Demand for mail in Germany depends on the trend in the way our customers communicate and the extent to which electronic media continue to replace the physical letter. We expect the market for mail communication to continue shrinking, although demand for communication in general will continue to rise. By introducing the E-Postbrief, we have taken the fi rst step towards utilising our expertise in physical communication to off er competent electronic communications and generate new business in the process. We have also prepared ourselves for continued, intense competition.
According to forecasts by the Zentralverband der deutschen Werbewirtschaft ( German advertising federation), the German advertising market will grow marginally in 2011. Th is market is cyclical and currently fi nds itself in transition. Th e trend towards targeted advertising and combinations with internet off ers is likely to continue. Overall, however, we are seeing a shift in advertising expenditures as companies budget more for digital media and less for traditional advertising. Moreover, we expect companies to increasingly resort to more economical forms of advertising. 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 by integrating online marketing.
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. We plan to develop ideas for new digital products in this business unit.
Th e international mail market takes its cue from how business customers communicate. Th is is an area in which we aim to tap into new business related to our core competency, mail.
In the parcel market, we expect to benefi t from business customer and consumer activities in the online marketplace and we intend to expand our position in this market.
Experience shows that growth of the international express market is highly dependent on the general economic trend. In light of the latest economic indicators and the trend in our shipment volumes, we are optimistic regarding the current year.
Th is also applies to our earnings situation. Th e savings realised in the reporting year together with a continuing focus on costs will make a crucial contribution to improving earnings. Our initiatives for increasing effi ciency and quality and streamlining our portfolio will likewise contribute to earnings. We are confi dent that we are able to keep the express business on a growth path and further strengthen or defend our leading market position.
Th e freight forwarding business has faced extreme volume fl uctuations in the past two years. For 2011, we anticipate a more stable trend and moderate market growth. More specifi cally, we expect a weaker economy in the fi rst half of the year followed by a progressively stronger second half. Freight rates should remain steady as airlines, shipping companies and freight carriers manage transport capacities in accordance with demand.
Based on the economic fundamentals, we expect to see persistent 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 shall participate in this growth by investing in infrastructure and innovation.
In contrast to the year under review, we are projecting a more moderate upwards trend in the air freight market in 2011 and are anticipating overcapacities.
In the ocean freight market, we are looking ahead to uninterrupted growth in 2011. We have our sights set on signifi cantly boosting volumes again, especially in the lessthan-container-load business. Due to DHL Global Forwarding's acquisition history, some ocean freight business areas compile transport volumes (TEU s) in diff erent ways. Since we are aligning these systems, it will be necessary to adapt DHL Global Forwarding's transport volumes and market shares to the uniform calculation method, eff ective the fi rst quarter of 2011, and to adjust them slightly retroactively.
Th e growth rate in the road transport market is likely to weaken in 2011 in line with the macroeconomic trend. However, we expect it to remain at an acceptable level.
Th e contract logistics market was severely aff ected by the signifi cant reduction in our customers' volumes as a result of the economic crisis. However, since the start of 2010 the market has improved, a development that is likely to accelerate in the coming years according to economic research institutes. Th erefore, a return to pre-crisis levels is expected.
In our main markets of Europe and North America we anticipate growth in the moderate to high single digits, whereas in the Asian Pacifi c markets we think it is likely to be in the low double digits. At Williams Lea, we expect double-digit growth due to our unique product off ering and increasing development of our broad DHL customer base.
To capture these opportunities, we shall continue our Growth Through Excellence strategy with the objectives of continuously improving existing business and profi tably growing new business.
109
Th e strong recovery of the global economy in 2010 is expected to remain intact in 2011. We have based our projections on growth rates of 3 % to 4 %. Th e international trading volumes relevant for our business are likely to exceed the projected growth of the global economy by a factor of 1.5 to 2. We expect our revenue, especially in the DHL divisions, to increase more or less in line with our forecast medium-term growth rates of 7 % to 9 % in each of the three divisions.
Against this backdrop, we anticipate that consolidated EBIT for full-year 2011 will reach between € 2.2 billion and € 2.4 billion. Th e MAIL division is expected to contribute € 1.0 billion to € 1.1 billion to this fi gure. Compared with the previous year, we expect an additional improvement in overall earnings to between € 1.6 billion and € 1.7 billion in the DHL divisions. Th is corresponds to an increase of 10 % to 17 % on the prior-year fi gure. At around €–0.4 billion, the Corporate Center / Other result should be on a par with the previous year. Th e restructuring measures decided on and implemented in recent years have been completed for the most part, meaning that future earnings will no longer be impacted by such expenses. For this reason, starting in 2011 we shall no longer report EBIT before non-recurring items as a separate line item.
We plan to maintain our fi nance policy in 2011 and raise our capital expenditure to no more than € 1.6 billion aft er having increased it to just under € 1.3 billion in 2010. Following our corporate strategy, we are focusing on organic growth. We anticipate only a few small acquisitions in 2011, as in the previous year. In 2011, cash fl ow will be impacted by the restructuring measures resolved in 2009 to a much lesser extent than in the previous year.
Provided that the global economy continues to recover, the positive trend in our earnings that we are anticipating for 2011 is likely to continue into 2012. 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 at an annual average of 13 % to 15 % until 2015 as trading volumes continue to recover.
Th e mark-to-market measurement of certain fi nancial instruments required under IFRS s in connection with the Postbank transaction will be reviewed at the end of each quarter until early 2012, and adjusted if necessary, based on the change in the fair value of Postbank. Any adjustments made will not impact liquidity and will be reported under net fi nance costs /net fi nancial income. To some extent, the related eff ects will be negated by off setting changes in the fair value of the remaining shareholding in Postbank. Consolidated net profi t before eff ects from the measurement of the Postbank instruments is expected to continue to improve in 2011 in line with our operating business.
Based on the projected earnings trend for 2011 and the planned increase in capital expenditure, we expect the FFO to debt performance metric to remain at approximately the prior-year level and the rating agencies to continue to rank our credit quality as appropriate.
Due to our substantial liquidity position, no major funding initiatives are currently planned. Since we pass on most of the commodity price risk to our customers, we do not expect potential fl uctuations in the price of crude oil to impact our earnings.
In the wake of the economic recovery, we expect to be able to raise our investments to no more than € 1.6 billion in 2011, 27 % more than in 2010. Th e majority of new investments will go into property, plant and equipment in the EXPRESS and MAIL divisions.
Investments in the MAIL division will be higher than in the previous year and will be earmarked predominantly for the domestic mail business. Additional mail centres will be equipped with new mail sorting machines. In our parcel business, we plan to expand production capacities in order to accommodate higher shipment volumes and to update our IT equipment. Moreover, our retail outlet network is scheduled for additional restructuring, which will primarily consist of updating the soft ware used in the retail outlets.
In the EXPRESS division, we intend to step up capital expenditure in 2011. Investments will relate mainly to the maintenance and expansion of our global network in order to sustain our high quality level in light of increasing volumes. We also plan to selectively enhance our footprint in a number of countries and regions based on our strategy of growth and profi tability.
In the GLOBAL FORWARDING, FREIGHT division, we are planning somewhat higher investments for 2011 than in 2010. We want to improve the IT solutions of our Global Forwarding business unit. In regional terms, we shall focus on the growth regions of Africa & South Asia Pacifi c and North Asia Pacifi c. In the Freight business unit, we intend to invest in our branch network.
We also plan to increase capital expenditure in the SUPPLY CHAIN division. With no major projects planned, investments will centre on new and existing business. Th e main focus of the additional investments will be on supporting our Growth Th rough Excellence strategy, in particular growth in the Americas and Asia Pacifi c regions.
Cross-divisional capital expenditure will see a slight year-on-year increase in 2011. As in the reporting year, investments will focus on our vehicle fl eet and IT.
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 forwardlooking statements to refl ect events or circumstances after the date of this Annual Report.
dhl is a partner of both business customers and consumers for routine parcel shipping to destinations in Germany, Europe and the world as well as for time-definite courier and express services to over 120,000 destinations. We offer many convenient and flexible options for sending parcels and packages, purchasing postage online and tracking shipments. dhl takes urgent documents and parcels door to door no matter if delivery is required the same day, at a specified time or on a specified day.
| REPORT OF THE SUPERVISORY BOARD | 113 |
|---|---|
| SUPERVISORY BOARD | 117 |
| Members of the Supervisory Board Committees of the Supervisory Board |
117 117 |
| BOARD OF MANAGEMENT | 118 |
| MANDATES HELD BY THE BOARD OF MANAGEMENT |
122 |
| MANDATES HELD BY THE SUPERVISORY BOARD |
123 |
| CORPORATE GOVERNANCE REPORT | 124 |
| Remuneration report | 128 |
WULF VON SCHIMMELMANN Chairman
Deutsche Post DHL has overcome the eff ects of the global economic crisis: it successfully concluded the fi nancial year 2010 with double-digit revenue growth in the DHL divisions, whilst the performance of the MAIL division, although slightly down, was in line with expectations on the whole.
In 2010, the Supervisory Board scrutinised Group and divisional strategy at a closed meeting. At each meeting, the Board of Management provided us with detailed information on the situation and direction of the company and the Group, on strategic initiatives and all key issues related to planning and implementation and on opportunities and risks for business performance. We also regularly discussed developments in the economic climate, progress in implementing the planned restructuring activities, the impact of the takeover of the Karstadt department stores by an investor and the eff ects of changes to value added tax legislation. All signifi cant decisions were discussed in detail with the Board of Management. It also informed us in a timely and comprehensive manner regarding business performance, key business transactions and projects in the divisions, compliance organisation and compliance management, 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 considered in advance by the relevant committees and the results of their deliberations were presented by the respective committee chairs to the Supervisory Board meetings.
Two meetings were held in the fi rst half and two in the second half of the year. All members participated in at least two meetings.
At the fi nancial statements meeting on 8 March 2010, with the auditors in attendance, we discussed and approved the annual and consolidated fi nancial statements for 2009. We also renewed the seats on the Board of Management of Bruce Edwards and Hermann Ude for a further fi ve years to March 2016 and discussed issues relating to the remuneration of the Board of Management. In addition, we discussed the Group's fi nance strategy, particularly with reference to signifi cant fi nancial control parameters, its credit rating and the use of liquidity. We also reviewed the results of the effi ciency review of the work of the Supervisory Board.
At the Supervisory Board meeting held on 15 June 2010, the Board of Management informed us that the sale of the day-defi nite express business in France was shortly due to be concluded. Following the meeting, we held a one-and-a-half-day closed meeting during which we discussed the Group's Strategy 2015 in detail, as well as the strategies of the divisions. Th e introduction of the E-Postbrief product formed the focus for the MAIL division. On the subject of the DHL divisions, we discussed the programmes aimed at achieving greater effi ciency and growth. We discussed the results of the annual employee opinion survey and the implementation of Strategy 2015 in our fi nance area. We also addressed the way in which the Group is perceived externally and invited representatives from an investment bank and a management consulting company as renowned guest speakers for this purpose.
In the meeting held on 16 September 2010, we discussed the remuneration of the Board of Management, including retirement pensions. As a result, we extended the Long-Term Incentive Plan by three years, essentially preserving the current structure. In addition, the repurchase of shares in the cargo airline Astar Air Cargo and the outsourcing of the airline operations to a new company outside the Group were approved. Th e restructuring of the US express business in 2009 and the associated decline in volume made an adjustment of the agreement with the cargo airline Astar necessary on cost grounds.
At the Supervisory Board's last meeting of the year on 10 December 2010, we adopted the business plan for 2011. We also discussed again the remuneration of the Board of Management, including agreement of targets for 2011 and retirement pensions. Furthermore, we discussed the amendments to the German Corporate Governance Code. We set targets for the composition of the Supervisory Board and resolved to continue to comply with all recommendations of the Government Commission on the German Corporate Governance Code. We also submitted our Declaration of Conformity with the 2010 German Corporate Governance Code.
Th e Executive Committee met four times during the year under review. Th e agenda focused primarily on Board of Management and Supervisory Board business, such as the reappointment of Board of Management members and the remuneration and retirement pensions for the Board of Management.
Th e Personnel Committee also met four times, dealing mainly with the employee opinion survey, strategic development projects in the area of human resources, the executive remuneration structure, the objectives and structure of the subsidiary First Mail, corporate health management and the Group's commitment to education.
Th e Finance and Audit Committee met eight times, with meetings chaired by Hero Brahms. Hero Brahms, the committee's chairman, is a fi nancial expert pursuant to section 100 (5) and section 107 (4) of the Aktiengesetz (AktG – German stock corporation act). At its March meeting, the committee examined the annual and consolidated fi nancial statements for 2009. Th e auditors attended this meeting. Following the Annual General Meeting (AGM), the Finance and Audit Committee hired the auditors to perform an audit of the 2010 annual and consolidated fi nancial statements and the focal points of the audit were also determined. Th e auditors were likewise charged with reviewing the quarterly fi nancial reports and the interim fi nancial report for the fi rst half of the year. Th e quarterly fi nancial reports and the interim fi nancial report for the fi rst half of the year were discussed by the committee together with the Board of Management and the auditors.
Th e committee also dealt at regular intervals with the Group's business development and the internal control and risk management system. Discussions related above all to risk management across the Group together with the main risk factors for the Group. Th e committee discussed compliance organisation and compliance management, as well as the fi ndings of the reviews carried out by Internal Audit. It also approved the Audit Plan 2011. With regard to accounting, the committee discussed with the auditors the main features of the internal control system and the risk management system. Co-operation with the auditors was also discussed in detail.
Th e Nomination Committee met once in 2010 and recommended that the Supervisory Board propose the re-election of Roland Oetker to the AGM.
Th e chairs of the committees reported on the committees' deliberations in the subsequent plenary meetings.
Th ere were no meetings of the Mediation Committee, which must be formed pursuant to section 27 (3) of the Mitbestimmungsgesetz (German co-determination act).
Th e shareholder representatives remained the same in 2010. Employee representative Annette Harms left the Supervisory Board on 6 October 2010. As her successor and an employee representative, Sabine Schielmann was appointed a member of the Supervisory Board by the court on 27 October 2010.
Th e company's Board of Management remained the same.
In December 2010, the Board of Management and the Supervisory Board submitted an unqualifi ed Declaration of Conformity pursuant to section 161 of the AktG and published it on the company's website. Th e declarations from previous years can also be viewed on this website. In fi nancial year 2010, Deutsche Post AG complied with all recommendations of the German Corporate Governance Code as amended on 18 June 2009. Th e company plans to continue complying with the recommendations of the code as amended on 26 May 2010. Th e Corporate Governance Report (page 124 ff .) 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 2010, including the respective management reports, and issued unqualifi ed audit opinions. PwC also conducted the review of the quarterly fi nancial reports and the interim 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 2010 at the fi nancial statements meeting held on 9 March 2011. 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 2010. 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 € 0.65 per share.
We would like to thank the Board of Management and all the employees of the Group for their particularly hard work this year. We are delighted that, following the 2009 economic crisis, the Group is experiencing growth once more and is successfully implementing the objectives of Strategy 2015.
Bonn, 9 March 2011 Th e Supervisory Board
Wulf von Schimmelmann Chairman
Shareholder representatives Employee representatives Executive Committee
Prof. Dr Wulf von Schimmelmann (Chair) Former ceo of Deutsche Postbank ag
Willem G. van Agtmael Managing Partner, E. Breuninger GmbH & Co.
Management consultant
Werner Gatzer State Secretary, Federal Ministry of Finance
Former ceo of sap ag
Roland Oetker Managing Partner,
roi Verwaltungsgesellschaft mbH
Dr Ulrich Schröder Chief Executive Offi cer, KfW Bankengruppe
Dr Stefan Schulte
Chair of the Executive Board of Fraport ag
Managing Director, E Toime Consulting Ltd.
Deputy Chair of ver.di National Executive Board and Head of Postal Services, Forwarding Companies and Logistics on the ver.di National Executive Board
Head of Postal Services, Forwarding Companies and Logistics, ver.di Regional District of Hamburg
Head of Postal Services, Co-determination and Youth and Head of National Postal Services Group at ver.di national administration
Chair of the Group and Company Executive Representation Committee, Deutsche Post ag
Anke Kufalt Member of the Works Council, dhl Global Forwarding GmbH, Hamburg
Chair of the General Works Council, Deutsche Post ag
Deputy Chair of the General Works Council, Deutsche Post ag
Deputy Chair of the Works Council, Deutsche Post ag, mail Branch, Augsburg (since 17 May 2010)
Annette Harms (until 6 October 2010) Chair of the Works Council, Deutsche Postbank ag, Hamburg
Prof. Dr Wulf von Schimmelmann (Chair) Andrea Kocsis (Deputy Chair) Roland Oetker Rolf Bauermeister Werner Gatzer Stefanie Weckesser
Hero Brahms (Chair) Wolfgang Abel (Deputy Chair) Werner Gatzer Thomas Koczelnik Dr Stefan Schulte Helga Thiel
Andrea Kocsis (Chair) Prof. Dr Wulf von Schimmelmann (Deputy Chair) Roland Oetker Thomas Koczelnik
(pursuant to section 27 (3) of the German co-determination act) Prof. Dr Wulf von Schimmelmann (Chair)
Andrea Kocsis (Deputy Chair) Roland Oetker Rolf Bauermeister
Prof. Dr Wulf von Schimmelmann (Chair) Roland Oetker Werner Gatzer
Deutsche Post DHL Annual Report 2010
Born in 1961 Member since November 2002, ceo since February 2008 Appointed until October 2012
Born in 1957 Member since September 2009 Appointed until August 2012
Born in 1952 Member since April 2000 Appointed until March 2013
Born in 1964 Member since July 2007 Appointed until June 2015
Born in 1955 Member since February 2009 Appointed until February 2012
Born in 1961 Member since March 2008 Appointed until March 2016
Born in 1955 Member since March 2008 Appointed until March 2016
| Membership of supervisory boards required by law |
Membership of comparable bodies |
|---|---|
| Dr Frank Appel | Ken Allen |
| Deutsche Postbank ag (Chair), until 31 December 2010 |
dhl-Sinotrans International Air Courier Ltd1) (Board of Directors), since 18 September 2010 |
| Lawrence Rosen | Bruce Edwards |
| Deutsche Postbank ag | Ashtead plc (Board of Directors) |
| Exel Automocion, s. a. de c. v.1) | |
| (Board of Directors) | |
| Exel Investments Limited1) | |
| (Board of Directors) | |
| Exel Limited1) (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 Immobiliaria, 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.1) (Board of Directors) |
1) Group mandate.
Georgsmarienhütte Holding GmbH (Deputy Chair) Wincor Nixdorf ag Live Holding ag (Chair, since 31 August 2010) Telefunken Holding ag (Chair)
KfW ipex-Bank GmbH, until 31 January 2010 g. e. b. b. mbH Bundesdruckerei GmbH öpp Deutschland ag
bmw ag, since 18 May 2010 Deutsche Bank ag Münchener Rückversicherungs-Gesellschaft ag
Volkswagen ag, until 22 April 2010
Deutsche Telekom ag KfW ipex-Bank GmbH deg – Deutsche Investitions- und Entwicklungsgesellschaft mbH
message ag (Chair)
Prof. Dr Wulf von Schimmelmann (Chair) Accenture Corp., usa (Board of Directors) Western Union Company, usa (Board of Directors)
Charlottenklinik für Augenheilkunde (Board of Trustees)
m. m. Warburg & Co. KGaA (Shareholders' Committee ) Zumtobel ag, Austria (Supervisory Board, Deputy Chair)
Nokia Corporation, Finland (Board of Directors) Wipro Ltd., India (Board of Directors)
Dr. August Oetker kg (Advisory Board, Deputy Chair), until 31 December 2010
Deutsches Stiftungszentrum GmbH (Administrative Board)
"Marguerite 2020": European Fund for Energy, Climate Change and Infrastructure (Supervisory Board)
Blackbay Ltd., United Kingdom (Non-Executive Director) Postea Inc., usa (Non-Executive Chairman)
Membership of supervisory boards required by law
Rolf Bauermeister Deutsche Postbank ag
Andreas Schädler psd Bank Köln eG (Chair)
Helga Thiel psd Bank Köln eG (Deputy Chair)
Annette Harms (until 6 October 2010) Deutsche Postbank ag
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 regarding signifi cant corporate governance practices that exceed the legal requirements, information concerning the working methods of the Board of Management and the Supervisory Board and details regarding the composition and working methods of the executive committees and other committees, as well as the targets for the composition of the Supervisory Board.
In December 2010, the Board of Management and the Supervisory Board again submitted an unqualifi ed Declaration of Conformity pursuant to section 161 of the Aktiengesetz (AktG – 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 18 June 2009 have been complied with since the last Declaration of Conformity in December 2009 and that Deutsche Post AG intends to comply with all recommendations of the Code as amended on 26 May 2010 in the future. Pursuant to section 3.8, the deductible for members of the Supervisory Board was raised to the required level upon the 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 (AGM) 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. 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 competencies of the company and the experience of our employees. Our goal is to achieve 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. Th e fi rst is the Group's GoGreen programme, which is aimed at achieving our climate protection targets. Our second focus is GoHelp. Here, we apply our expertise towards improving living conditions for people in disaster areas. In 2010, our Disaster Response Team provided particular support to those aff ected in the disaster areas of Chile, Haiti and Pakistan. Th e third expression of our commitment to society is our support of education. We created the GoTeach project to further this purpose. Deutsche Post DHL is the founding partner and largest sponsor of Teach First Deutschland, an educational initiative designed to encourage disadvantaged school children in Germany. In 2010, Deutsche Post DHL, through its partnership with the umbrella organisation Teach for All, furthered its commitment to improving the quality of education and education systems at a global level.
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 470,000 employees.
Our principles are respect, tolerance, honesty, openness, integrity towards employees and customers and willingness as a company to assume social responsibility.
Th e Code of Conduct also sets out our commitment to equal opportunities and to ensuring the health and well-being of our employees. Th rough its participation in the Anonymised Application Procedures test project, Deutsche Post DHL intends to test whether a greater level of equality of opportunity can be achieved in the job application process by a change in procedures. Managerial posts within the Group are fi lled according to suitability, aptitude and professional performance, with the Board of Management taking care to ensure diversity and seeking to give women appropriate consideration. During the fi nancial year, the Group was awarded the German Corporate Health Award by the Bundesverband der Betriebskrankenkassen (German association of occupational health insurance funds) and the European Commission for its health management policy, as well as the Corporate Health Award under the aegis of the German Federal Ministry of Labour and Social Aff airs.
Th e Code of Conduct is substantiated by two guidelines: the anti-corruption guideline gives 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 is included in all new procurement contracts and has been added to existing long-term framework agreements. It obligates them to adhere to ethical and ecological standards. A ban on child and forced labour is in place. Wages and working hours must correspond with national laws and regulations, and unlawful payments (bribery) are prohibited.
Deutsche Post DHL reviews and develops its compliance management system on an ongoing basis. In 2010, the corresponding administrative team was strengthened. Th e Chief Compliance Offi cer reports directly to the Chief Financial Offi cer (CFO) and heads the Global Compliance Offi ce, which develops compliance management standards throughout the Group and supports the corresponding activities undertaken by the divisions. Th e Compliance Committee, which is comprised of representatives from the divisions, advises the Chief Compliance Offi cer on the ongoing development of compliance management.
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 Chief Executive Offi cer (CEO), the 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 co-operation within the Board of Management. Within this framework, each board member manages his 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 principles 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 2010, the Supervisory Board met for four plenary meetings, 17 committee meetings and a closed meeting, as described in the Report of the Supervisory Board.
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 and discussed 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.
Executive committees prepare decisions to be made by the Board of Management as a whole and make decisions on matters assigned to them. 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 of the divisions 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 Manage ment, the executive committees also include fi rst-tier executives below the Board of Management level, in some cases on a permanent basis (those, for example,
Page 113
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 Corporate Finance, Corporate Development and Legal Services in the case of acquisitions. Th e DHL Executive Committee and the MAIL Steering Committee each meet at least once a month.
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 divisions.
Th e Supervisory Board has formed fi ve committees to ensure effi cient discharge of its duties. Th e Report of the Supervisory Board 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 chairman of the Finance and Audit Committee, Hero Brahms, is a fi nancial expert as defi ned by sections 100 (5) and 107 (4) of the AktG.
In its meeting on 10 December 2010, the Supervisory Board determined the following specifi c goals with regard to its composition:
Th e current composition of the Supervisory Board meets the abovementioned targets.
Specifi c details of stock option plans and similar share-based incentive schemes off ered by the company are given in the remuneration report and in the Notes to the Consolidated Financial Statements of Deutsche Post AG.
Page 113
Th e remuneration report also forms part of the Group Management Report.
On the recommendation of the Executive Committee, the Supervisory Board in December 2009 held consultations on the remuneration system for the Board of Manage ment, including the main contractual elements, and adapted it to the specifi cations of the Gesetz zur Angemessenheit der Vorstandsvergütung (VorstAG – German act on the appropriateness of management board remuneration). Th e Annual General Meeting of Deutsche Post AG approved the new remuneration system for members of the Board of Management on 28 April 2010 with 98.27 % of the votes cast.
Th e Board of Management remuneration refl ects the size and global reach of the company, its economic and fi nancial situation and the roles fulfi lled by and achievements of 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 paid to the Board of Management for 2010 is in line with standard market practice, appropriate to the tasks involved and designed to reward performance; it comprises non-performance-related, i. e., fi xed, elements and variable, i. e., performance-related, elements, which include short, medium and long-term incentives.
Non-performance-related components are the annual base salary (fi xed annual remuneration), fringe benefi ts and pension commitments. Th e annual base salary is paid in twelve equal monthly instalments retroactively at the end of each month. Fringe benefi ts mainly comprise the use of company cars, supplements for insurance premiums and special allowances and benefi ts for assignments outside the home country.
Th e variable remuneration components comprise one element linked to the company's annual performance (annual bonus), a portion of which is being converted to a medium-term component, and one long-term incentive component (the Long-Term Incentive Plan).
Th e amount of the component linked to the company's annual performance (the annual bonus) is set at the due discretion of the Supervisory Board on the basis of the company's performance. Th e individual annual bonus amounts refl ect the extent to which predefi ned targets are achieved, missed or exceeded.
For all Board of Management members, the Group's EBIT aft er asset charge performance metric, including the asset charge on goodwill before goodwill impairment (EAC), 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 EAC of their respective division is also a key parameter. Furthermore, an employee-related target is agreed on with all Board of Management members based on the annual employee opinion survey, as are additional targets.
Achievement of the upper targets for the fi nancial year is rewarded with the maximum annual bonus, which may not exceed 100 % of the annual base salary. If the targets specifi ed for the fi nancial year are only partially reached or completely missed, the annual bonus will be paid on a pro-rata basis or not at all. Th e Supervisory Board may also elect to award an appropriate special bonus for extraordinary achievement.
Th e annual bonus is not paid in full in a single instalment on the basis of having reached the agreed targets. Instead, 50 % of the annual bonus fl ows into a mediumterm 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 EAC, as an indicator of sustainability, is reached during the sustainability phase. Otherwise, payment of the medium-term component is forfeited without compensation. Th is demerit system puts greater emphasis on sustainable company development in determining management board remuneration and sets long-term incentives.
Th e medium-term component is applicable to all employment contracts and contract renewals entered into aft er the eff ective date of the VorstAG (5 August 2009). Moreover, all Board of Management members have approved amendments to their current Board of Management contracts stipulating that 25 % of the annual bonus be transferred to the new medium-term components from 1 January 2010 until the cessation of the term of the respective contract.
Stock appreciation rights (SAR s) 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 2010, the members of the Board of Management each invested 10 % of their annual base salary as a personal fi nancial investment. Th e waiting period for the stock appreciation rights is four years from the date they were granted. Aft er expiration of the waiting period and provided an absolute or relative performance target has been achieved, the SAR s can be exercised wholly or partially for a period of two years. Any SAR not exercised during this two-year period will be forfeited.
To determine how many, if any, of the SAR s granted can be exercised, the average share price or the average index value for the reference period is compared with that of 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 before the end of the waiting 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 SAR s 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 waiting period, the SAR s of the related tranche will expire and no replacement or compensation in any form 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 STOXX Europe 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 %.
Remuneration from stock appreciation rights is limited to 300 % of the annual target cash compensation (annual base salary plus the annual target bonus). Moreover, it may be limited by the Supervisory Board in the event of extraordinary circumstances.
In accordance with the recommendation of section 4.2.3 of the German Corporate Governance Code as amended on 26 May 2010, Board of Management contracts 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 amount of two years' remuneration including fringe benefi ts (severance payment cap).
In the event of a change in control, any member of the Board of Management is entitled to resign his offi ce for good cause within a period of six months following the change in control, aft er giving three months' notice as at the end of the month, and to terminate his 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 Wertpapiererwerbs- und Übernahmegesetz (WpÜG – 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 WpÜG 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 of 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 German Corporate Governance Code. Th e amount of the payment is reduced by 25 % if the Board of Manage ment 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 of control and the contract was not renewed.
Board of Management members are also subject to a non-compete clause eff ective upon the cessation of their contracts. Th e previous two-year non-compete clause was reduced to one year starting in fi nancial year 2010. During the non-compete period, former Board of Management members receive 100 % (previously 50 %) of their last contractually stipulated annual base salary on a pro rata basis as compensation each month. Any other income earned during the non-compete period is subtracted from the compensation paid. 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 non-compete 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. A non-compete clause eff ective for two years aft er the end of his contract was agreed with Lawrence Rosen. During this period, he will receive 75 % of his last contractually stipulated annual base salary on a pro rata basis each month. Any other earned income will generally be deducted from the compensation paid during the noncompete period, provided such other income, together with the compensation payment, exceeds the last base salary paid on a monthly basis. No provisions have been made that would allow the company to unilaterally waive the non-compete clause.
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 2010 totalled € 11.97 million (previous year: € 14.92 million). Th is amount comprised € 7.07 million in non-performance-related components (previous year: € 9.81 million) and € 4.90 million in the performance-related component paid out (previous year: € 5.11 million). An additional € 1.79 million of the performance-related component was transferred to the medium-term component for payment in 2013 subject to the condition that the required EAC, as an indicator of sustainability, is reached.
Th e members of the Board of Management were granted a total of 1,875,000 SAR s in fi nancial year 2010 with a total value of € 4.99 million (previous year: € 7.25 million) at the time of issue (1 July 2010). Th e following table presents the total remuneration paid to active Board of Management members:
| € | Performance | ||||
|---|---|---|---|---|---|
| Non-performance-related | related | ||||
| Share of annual bonus transferred |
|||||
| Annual | Annual | to medium-term | |||
| Board members | base salary | Fringe benefi ts | bonus paid | Total | 2) component |
| Dr Frank Appel, Chairman | 1,661,973 | 48,452 | 1,246,480 | 2,956,905 | 415,493 |
| Ken Allen | 715,000 | 105,542 | 525,096 | 1,345,638 | 175,032 |
| Bruce Edwards | 860,000 | 94,898 | 643,646 | 1,598,544 | 214,549 |
| Jürgen Gerdes | 895,000 | 23,191 | 555,000 | 1,473,191 | 340,000 |
| Lawrence Rosen1) | 860,000 | 20,476 | 645,000 | 1,525,476 | 215,000 |
| Walter Scheurle | 912,500 | 17,697 | 670,140 | 1,600,337 | 223,380 |
| Hermann Ude | 834,664 | 15,036 | 612,977 | 1,462,677 | 204,326 |
1) In fi nancial year 2010, an additional € 1,869,000 was paid out as part of the compensation for rights that lapsed as a result of his transfer to Deutsche Post ag. The compensation payment totalling € 2.55 million is described in the remuneration report 2009.
2) This amount will be paid out in 2013 provided the sustainability indicator is fulfi lled.
| € Active board members |
Number of sar s | Value of sar s on grant date (1 July 2010) |
Change in value of total sar s granted from 2007 to 2010 on 31 Dec. 2010 compared with value on grant date |
|---|---|---|---|
| Dr Frank Appel, Chairman | 375,000 | 997,500 | –2,166,250 |
| Ken Allen | 250,000 | 665,000 | –378,930 |
| Bruce Edwards | 250,000 | 665,000 | – 909,182 |
| Jürgen Gerdes | 250,000 | 665,000 | –1,378,519 |
| Lawrence Rosen | 250,000 | 665,000 | –130,300 |
| Walter Scheurle | 250,000 | 665,000 | –1,783,700 |
| Hermann Ude | 250,000 | 665,000 | – 909,182 |
| € | Non-performance-related | Performance related |
||
|---|---|---|---|---|
| Annual | ||||
| Board members | base salary | Fringe benefi ts | Annual bonus | 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 Sept. 2009) | 286,667 | 8,001 | 249,285 | 543,953 |
| € | Value of sar s on grant date |
Change in value of total sar s granted from 2006 to 2009 on 31 Dec. 2009 |
|
|---|---|---|---|
| Active board members | Number of sar s | (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 Sept. 2009) | 240,000 | 967,200 | 446,400 |
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 annuity payments and a lump sum payment. 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 over the last 12 calendar 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 | Maximum | Service cost for pension | Present value (dbo) as at |
||
| 31 Dec. 2010 | pension level | obligation, fi nancial year 2010 | 31 Dec. 2010 | ||
| % | % | € | € | ||
| Dr Frank Appel, Chairman | 25 | 50 | 495,558 | 5,898,215 | |
| Jürgen Gerdes1) | 0 | 50 | 139,017 | 2,798,820 | |
| Walter Scheurle | 60 | 60 | 615,154 | 7,212,421 | |
| Total | 1,249,729 | 15,909,456 |
1) Minimum period not yet complete. In the event of benefi ts being paid, the provisions of the previous system will apply.
| Pension commitments | |||||
|---|---|---|---|---|---|
| Pension level on 31 Dec. 2009 |
Maximum pension level |
Service cost for pension obligation, fi nancial year 2009 |
Present value (dbo) as at 31 Dec. 2009 |
||
| % | % | € | € | ||
| Dr Frank Appel, Chairman | 25 | 50 | 415,539 | 4,787,292 | |
| Jürgen Gerdes1) | 0 | 50 | 117,912 | 2,200,185 | |
| John Mullen (until 24 Feb. 2009) | 45 | 50 | 674,2112) | 9,648,1042) | |
| Walter Scheurle | 30 | 60 | 506,408 | 6,085,266 | |
| Total | 1,714,070 | 22,540,847 |
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.
Th e pension commitment system was restructured in fi nancial year 2008. Since 4 March 2008, newly appointed Board of Management members have received pension commitments based on a defi ned contribution plan rather than the previous commitments, which were based on fi nal salary.
Under the defi ned contribution pension plan, the company credits an annual amount of 35 % of the annual base salary (since 1 January 2010, previously 25 %) to a virtual pension account for the Board of Management member 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. In the event of benefi ts falling due, the pension benefi ciary may opt to receive an annuity payment in lieu of a lump sum payment. If this option is exercised, the capital is converted to an annuity payment on the basis of the relevant tax base, taking into account the individual data of the surviving dependants 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 is 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 | 3,770,798 | 1,173,274 | |
|---|---|---|---|
| Hermann Ude | 250,250 | 1,140,262 | 267,532 |
| Lawrence Rosen | 301,000 | 1,367,910 | 321,947 |
| Bruce Edwards | 301,000 | 804,427 | 320,152 |
| Ken Allen | 250,250 | 458,199 | 263,643 |
| Total contribution for 2010 |
(dbo) as at 31 Dec. 2010 |
Service cost for pension obligation, fi nancial year 2010 |
|
| € | Present value |
| € | Total contribution for 2009 |
Present value (dbo) as at 31 Dec. 2009 |
Service cost for pension obligation, fi nancial year 2009 |
|---|---|---|---|
| Ken Allen1) | 148,9583) | 164,744 | 150,5975) |
| Bruce Edwards | 215,000 | 432,345 | 221,591 |
| Lawrence Rosen2) | 871,6674) | 950,626 | 70,2345) |
| Hermann Ude | 178,750 | 787,389 | 177,182 |
| Total | 2,335,104 | 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) Notional amount as at 1 January 2009, calculated at an interest rate of 5.75 %.
Benefi ts paid to former members of the Board of Management or their surviving dependants amounted to € 5.7 million in fi nancial year 2010 (previous year: € 8.1 million). Th e defi ned benefi t obligations (DBO) for current pensions calculated under IFRS s amounted to € 42.9 million (previous year: € 26.1 million).
On 28 April 2010, the Annual General Meeting resolved to amend article 17 of the Articles of Association of Deutsche Post AG, which governs Supervisory Board remuneration, with retroactive eff ect as at 1 January 2010. Th e amendment rescinds the short-term performance-related component of the remuneration, which was based on consolidated net profi t for the fi nancial year in question. Variable remuneration is now based solely on long-term consolidated net profi t and is thus more heavily geared towards sustainable corporate development. Th e fi xed annual non-performance-related remuneration component has been gradually adjusted to the average fi gure for DAX 30 enterprises. For 2010, it amounted to € 30,000 (previous year: € 20,000) and since 1 January 2011, it has amounted to € 40,000.
135
Th e variable remuneration component for fi nancial year 2010, which is geared towards sustainable corporate development, will amount to € 1,000 for each € 0.02 by which the consolidated net profi t per share for fi nancial year 2012 exceeds the consolidated net profi t per share for fi nancial year 2009. Th is variable remuneration component will fall due for payment as at the end of the 2013 AGM. Th e variable remuneration component is subject to a cap equal to 50 % of the fi xed annual remuneration component.
Th e Supervisory Board chairman and the chairmen of Supervisory Board committees receive an additional 100 % of the above remuneration and the deputy Supervisory Board chairman and committee members receive an additional 50 %. Th is does not apply to the Mediation or Nomination Committees. Th ose who only serve on the Supervisory Board or its committees, or act as chairman or deputy chairman, for part of the year are remunerated on a pro-rata basis. Th e members of the Supervisory Board are entitled to compensation for out-of-pocket cash expenses incurred in the exercise of their offi ce. Any value added tax charged on Supervisory Board remuneration or out-of-pocket expenses is reimbursed. In addition, Supervisory Board members receive an attendance allowance of € 1,000 (previous year: € 500) for each plenary meeting of the Supervisory Board or committee meeting that they attend.
Th e remuneration for 2010 totalled € 1,097,000 (previous year: € 756,763). Th e following table shows the remuneration paid to each Supervisory Board member:
b.13 Remuneration paid to Supervisory Board members in 2010
| Fixed | Attendance | ||
|---|---|---|---|
| Board members | component | allowance | Total |
| Prof. Dr Wulf von Schimmelmann (Chairman) | 105,000 | 16,000 | 121,000 |
| Andrea Kocsis (Deputy Chairwoman) | 90,000 | 12,000 | 102,000 |
| Wolfgang Abel | 45,000 | 12,000 | 57,000 |
| Willem van Agtmael | 30,000 | 4,000 | 34,000 |
| Rolf Bauermeister | 45,000 | 8,000 | 53,000 |
| Hero Brahms | 60,000 | 12,000 | 72,000 |
| Heinrich Josef Busch | 30,000 | 4,000 | 34,000 |
| Werner Gatzer | 60,000 | 14,000 | 74,000 |
| Annette Harms (until 6 October 2010) | 23,750 | 3,000 | 26,750 |
| Prof. Dr Henning Kagermann | 30,000 | 4,000 | 34,000 |
| Thomas Koczelnik | 60,000 | 16,000 | 76,000 |
| Anke Kufalt | 30,000 | 3,000 | 33,000 |
| Roland Oetker | 60,000 | 13,000 | 73,000 |
| Harry Roels | 30,000 | 4,000 | 34,000 |
| Andreas Schädler | 30,000 | 4,000 | 34,000 |
| Sabine Schielmann (since 27 October 2010) | 6,250 | 1,000 | 7,250 |
| Dr Ulrich Schröder | 30,000 | 4,000 | 34,000 |
| Dr Stefan Schulte | 45,000 | 10,000 | 55,000 |
| Helga Thiel | 45,000 | 12,000 | 57,000 |
| Elmar Toime | 30,000 | 4,000 | 34,000 |
| Stefanie Weckesser | 45,000 | 7,000 | 52,000 |
For fi nancial year 2008, the former remuneration system provides for 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 2010 exceeds the consolidated net profi t per share for fi nancial year 2007. In order for this remuneration component to increase (previous year: no payment), the consolidated revenue for 2010 would have had to have exceeded the consolidated revenue for 2007. Since this requirement was not met, no performance-related remuneration with long-term incentive eff ect will be paid.
| b.14 Remuneration paid to Supervisory Board members in 2009 | |||||
|---|---|---|---|---|---|
| -- | -- | -- | -- | -- | ------------------------------------------------------------- |
| Fixed | Attendance | Short-term variable |
||
|---|---|---|---|---|
| Board members | component | allowance | remuneration | Total |
| Prof. Dr Wulf von Schimmelmann | ||||
| (Chairman, since 1 January 2009) | 70,000 | 11,000 | 1,050 | 82,050 |
| Andrea Kocsis (Deputy Chairwoman) | 60,000 | 10,000 | 900 | 70,900 |
| Wolfgang Abel | 30,000 | 8,000 | 450 | 38,450 |
| Willem van Agtmael | 20,000 | 3,500 | 300 | 23,800 |
| Rolf Bauermeister | 30,000 | 9,000 | 450 | 39,450 |
| Hero Brahms | 40,000 | 9,500 | 600 | 50,100 |
| Heinrich Josef Busch | 20,000 | 3,500 | 300 | 23,800 |
| Werner Gatzer | 40,000 | 11,000 | 600 | 51,600 |
| Annette Harms | 20,000 | 4,000 | 300 | 24,300 |
| Prof. Dr Henning Kagermann (since 18 February 2009) | 17,500 | 3,500 | 263 | 21,263 |
| Thomas Koczelnik | 40,000 | 9,000 | 600 | 49,600 |
| Prof. Dr Ralf Krüger (until 21 April 2009) | 11,667 | 3,000 | 175 | 14,842 |
| Anke Kufalt | 20,000 | 4,000 | 300 | 24,300 |
| Roland Oetker | 37,083 | 7,000 | 556 | 44,640 |
| Harry Roels | 20,000 | 4,000 | 300 | 24,300 |
| Andreas Schädler | 20,000 | 4,000 | 300 | 24,300 |
| Dr Ulrich Schröder | 20,000 | 3,000 | 300 | 23,300 |
| Dr Stefan Schulte (since 21 April 2009) | 21,250 | 4,000 | 319 | 25,569 |
| Helga Thiel | 30,000 | 8,000 | 450 | 38,450 |
| Elmar Toime | 20,000 | 3,500 | 300 | 23,800 |
| Stefanie Weckesser | 30,000 | 7,500 | 450 | 37,950 |
CONSOLIDATED FINANCIAL STATEMENTS
dhl is the world's largest provider of air freight services, the number two for ocean freight services and one of the leading overland freight forwarders in Europe, the Middle East and North Africa. We develop customised transport solutions, provide capacity and co-ordinate the transport of goods and information in more than 150 countries.
dhl is also the global market leader in contract logistics, offering customers in many industry sectors services that span the entire supply chain. By combining our global network and local expertise, we are able to support customers in more than 60 countries when their operations undergo complex transformations.
| INCOME STATEMENT | 139 |
|---|---|
| STATEMENT OF COMPREHENSIVE INCOME | 140 |
| BALANCE SHEET | 141 |
| CASH FLOW STATEMENT | 142 |
| STATEMENT OF CHANGES IN EQUITY | 143 |
| $\mathcal{L}^{\text{max}}{\text{max}}$ and $\mathcal{L}^{\text{max}}{\text{max}}$ and $\mathcal{L}^{\text{max}}{\text{max}}$ and $\mathcal{L}^{\text{max}}{\text{max}}$ | ||
|---|---|---|
Basis of preparation
| 1 Basis of accounting | 144 |
|---|---|
| 2 Consolidated group | 144 |
| 3 Signifi cant transactions | 147 |
| 4 New developments in international accounting under the ifrs s |
147 |
| 5 Adjustment of prior-period amounts | 149 |
| 6 Currency translation | 150 |
| 7 Accounting policies | 150 |
| 8 Exercise of judgement in applying the accounting policies | 156 |
| 9 Consolidation methods | 157 |
| 10 Segment reporting | 158 | ||||
|---|---|---|---|---|---|
| -- | ---------------------- | -- | ----- | -- | -- |
| 11 Revenue | 161 |
|---|---|
| 12 Other operating income | 161 |
| 13 Materials expense | 161 |
| 14 Staff costs / employees | 161 |
| 15 Depreciation, amortisation and impairment losses | 162 |
| 16 Other operating expenses | 163 |
| 17 Net income from associates | 163 |
| 18 Net other fi nancial income | 163 |
| 19 Income taxes | 164 |
| 20 Profi t from continuing operations | 165 |
| 21 Profi t from discontinued operations | 165 |
| 22 Consolidated net profi t for the period | 165 |
| 23 Non-controlling interests | 165 |
| 24 Earnings per share | 165 |
| 25 Dividend per share | 165 |
| 26 Intangible assets | 166 |
|---|---|
| 27 Property, plant and equipment | 168 |
| 28 Investment property | 169 |
| 29 Investments in associates | 169 |
| 30 Non-current fi nancial assets | 169 |
| 31 Other non-current assets | 170 |
| 32 Deferred taxes | 170 |
| 33 Inventories | 170 |
|---|---|
| 34 Income tax assets and liabilities | 170 |
| 35 Receivables and other current assets | 171 |
| 36 Current fi nancial assets 37 Cash and cash equivalents |
171 171 |
| 38 Assets held for sale and liabilities associated | |
| with assets held for sale | 171 |
| 39 Issued capital | 172 |
| 40 Other reserves | 173 |
| 41 Retained earnings | 174 |
| 42 Equity attributable to Deutsche Post ag shareholders | 174 |
| 43 Non-controlling interests | 174 |
| 44 Provisions for pensions and similar obligations | 174 |
| 45 Other provisions | 180 |
| 46 Financial liabilities | 181 |
| 47 Other liabilities | 183 |
| 48 Trade payables | 184 |
| Cash flow disclosures | |
| 49 Cash fl ow disclosures | 184 |
| Other disclosures | |
| 50 Risks and fi nancial instruments of the Group | 186 |
| 51 Contingent liabilities | 199 |
| 52 Other fi nancial obligations | 199 |
| 53 Litigation | 200 |
| 54 Share-based payment | 201 |
| 55 Related party disclosures | 202 |
| 56 Auditor's fees | 206 |
| 57 Utilisation of options under section 264 (3) of the hgb | 206 |
| 58 Declaration of Conformity with the German Corporate Governance Code |
206 |
| 59 Signifi cant events after the balance sheet date | 206 |
| 60 List of shareholdings | 207 |
| 228 | |
| RESPONSIBILITY STATEMENT | |
| AUDITOR'S REPORT | 228 |
€m
| Note | 2009 | 2010 | |
|---|---|---|---|
| Continuing operations | |||
| Revenue | 11 | 46,201 | 51,481 |
| Other operating income | 12 | 2,141 | 2,217 |
| Total operating income | 48,342 | 53,698 | |
| Materials expense | 13 | –25,774 | –29,473 |
| Staff costs | 14 | –17,021 | –16,609 |
| Depreciation, amortisation and impairment losses | 15 | –1,620 | –1,296 |
| Other operating expenses | 16 | –3,696 | – 4,485 |
| Total operating expenses | – 48,111 | – 51,863 | |
| Profi t from operating activities (ebit) | 231 | 1,835 | |
| Net income from associates | 17 | 28 | 56 |
| Other fi nancial income | 1,885 | 2,251 | |
| Other fi nance costs | –1,857 | –1,335 | |
| Foreign currency result | –11 | 17 | |
| Net other fi nancial income | 18 | 17 | 933 |
| Net fi nancial income | 45 | 989 | |
| Profi t before income taxes | 276 | 2,824 | |
| Income taxes | 19 | –15 | –194 |
| Profi t from continuing operations | 20 | 261 | 2,630 |
| Discontinued operations | |||
| Profi t from discontinued operations | 21 | 432 | 0 |
| Consolidated net profi t for the period | 22 | 693 | 2,630 |
| attributable to Deutsche Post ag shareholders | 644 | 2,541 | |
| attributable to non-controlling interests | 23 | 49 | 89 |
| Basic earnings per share (€) | 24 | 0.53 | 2.10 |
| of which continuing operations (€) | 0.17 | 2.10 | |
| discontinued operations (€) | 0.36 | 0.00 | |
| Diluted earnings per share (€) | 24 | 0.53 | 2.10 |
| of which continuing operations (€) | 0.17 | 2.10 | |
| discontinued operations (€) | 0.36 | 0.00 | |
| €m | ||
|---|---|---|
| Note | 2009 | 2010 |
| Consolidated net profi t for the period | 693 | 2,630 |
| Currency translation reserve | ||
| Changes from unrealised gains and losses | 165 | 522 |
| Changes from realised gains and losses | 31 | 20 |
| Other changes in retained earnings | ||
| Changes from unrealised gains and losses | 0 | 1 |
| Changes from realised gains and losses | 0 | 0 |
| Hedging reserve in accordance with ias 39 | ||
| Changes from unrealised gains and losses | 3 | – 67 |
| Changes from realised gains and losses | – 49 | 109 |
| Revaluation reserve in accordance with ias 39 | ||
| Changes from unrealised gains and losses | 366 | 6 |
| Changes from realised gains and losses | –256 | –16 |
| Revaluation reserve in accordance with ifrs 3 | ||
| Changes from unrealised gains and losses | 0 | –1 |
| Changes from realised gains and losses | 0 | 0 |
| Income taxes relating to components of other comprehensive income 19 |
0 | 1 |
| Share of other comprehensive income of associates (after tax) | 123 | 93 |
| Other comprehensive income (after tax) | 383 | 668 |
| Total comprehensive income | 1,076 | 3,298 |
| attributable to Deutsche Post ag shareholders | 1,070 | 3,197 |
| attributable to non-controlling interests | 6 | 101 |
| €m | |||
|---|---|---|---|
| Note | 31 Dec. 2009 | 31 Dec. 2010 | |
| assets | |||
| Intangible assets | 26 | 11,534 | 11,848 |
| Property, plant and equipment | 27 | 6,220 | 6,130 |
| Investment property | 28 | 32 | 37 |
| Investments in associates | 29 | 1,772 | 1,847 |
| Non-current fi nancial assets | 30 | 1,448 | 3,193 |
| Other non-current assets | 31 | 348 | 465 |
| Deferred tax assets | 32 | 668 | 973 |
| Non-current assets | 22,022 | 24,493 | |
| Inventories | 33 | 226 | 223 |
| Income tax assets | 34 | 196 | 223 |
| Receivables and other current assets | 35 | 7,157 | 8,641 |
| Current fi nancial assets | 36 | 1,894 | 655 |
| Cash and cash equivalents | 37 | 3,064 | 3,415 |
| Assets held for sale | 38 | 179 | 113 |
| Current assets | 12,716 | 13,270 | |
| Total assets | 34,738 | 37,763 | |
| equity and liabilities | |||
| Issued capital | 39 | 1,209 | 1,209 |
| Other reserves | 40 | 869 | 1,535 |
| Retained earnings | 41 | 6,098 | 7,767 |
| Equity attributable to Deutsche Post ag shareholders | 42 | 8,176 | 10,511 |
| Non-controlling interests | 43 | 97 | 185 |
| Equity | 8,273 | 10,696 | |
| Provisions for pensions and similar obligations | 44 | 4,574 | 4,513 |
| Deferred tax liabilities | 32 | 182 | 215 |
| Other non-current provisions | 45 | 2,275 | 2,440 |
| Non-current provisions | 7,031 | 7,168 | |
| Non-current fi nancial liabilities | 46 | 6,699 | 6,275 |
| Other non-current liabilities | 47 | 372 | 401 |
| Non-current liabilities | 7,071 | 6,676 | |
| Non-current provisions and liabilities | 14,102 | 13,844 | |
| Current provisions | 45 | 2,646 | 2,259 |
| Current fi nancial liabilities | 46 | 740 | 747 |
| Trade payables | 48 | 4,861 | 5,707 |
| Income tax liabilities | 34 | 292 | 463 |
| Other current liabilities | 47 | 3,674 | 4,047 |
| Liabilities associated with assets held for sale | 38 | 150 | 0 |
| Current liabilities | 9,717 | 10,964 | |
| Current provisions and liabilities | 12,363 | 13,223 | |
| Total equity and liabilities | 34,738 | 37,763 |
| €m | 2009 | 2010 | |
|---|---|---|---|
| Note | adjusted1) | ||
| Profi t before income taxes | 276 | 2,824 | |
| Net other fi nancial income | –17 | – 933 | |
| Net income from associates | –28 | – 56 | |
| Profi t from operating activities (ebit) | 231 | 1,835 | |
| Depreciation, amortisation and impairment losses | 1,620 | 1,296 | |
| Net loss from disposal of non-current assets | 67 | 279 | |
| Non-cash income and expense | 128 | 27 | |
| Change in provisions | – 890 | – 953 | |
| Change in other non-current assets and liabilities | – 54 | –74 | |
| Income taxes paid | –339 | –301 | |
| Net cash from operating activities before changes in working capital | 763 | 2,109 | |
| Changes in working capital | |||
| Inventories | 47 | 1 | |
| Receivables and other current assets | 778 | –1,258 | |
| Liabilities and other items | –344 | 1,075 | |
| Net cash from operating activities due to continuing operations | 1,244 | 1,927 | |
| Net cash used in operating activities due to discontinued operations | –1,828 | 0 | |
| Total net cash used in / from operating activities | 49.1 | – 584 | 1,927 |
| Subsidiaries and other business units | – 8 | –265 | |
| Property, plant and equipment and intangible assets | 217 | 198 | |
| Other non-current fi nancial assets | 334 | 55 | |
| Proceeds from disposal of non-current assets | 543 | –12 | |
| Subsidiaries and other business units | – 41 | –74 | |
| Property, plant and equipment and intangible assets | –1,174 | –1,174 | |
| Other non-current fi nancial assets | –229 | –28 | |
| Cash paid to acquire non-current assets | –1,444 | –1,276 | |
| Interest received | 103 | 55 | |
| Dividend received | 0 | 4 | |
| Current fi nancial assets | – 659 | 1,237 | |
| Net cash used in / from investing activities due to continuing operations | –1,457 | 8 | |
| Net cash used in investing activities due to discontinued operations | –1,253 | 0 | |
| Total net cash used in / from investing activities | 49.2 | –2,710 | 8 |
| Proceeds from issuance of non-current fi nancial liabilities | 3,981 | 20 | |
| Repayments of non-current fi nancial liabilities | – 587 | – 597 | |
| Change in current fi nancial liabilities | – 548 | – 64 | |
| Other fi nancing activities | –115 | 54 | |
| Proceeds from transactions with non-controlling interests | 0 | 0 | |
| Cash paid for transactions with non-controlling interests | –12 | –73 | |
| Dividend paid to Deutsche Post ag shareholders | –725 | –725 | |
| Dividend paid to non-controlling interest holders | –34 | –73 | |
| Purchase of treasury shares | 0 | –10 | |
| Interest paid | –291 | –183 | |
| Net cash from / used in fi nancing activities due to continuing operations | 1,669 | –1,651 | |
| Net cash from fi nancing activities due to discontinued operations | 7 | 0 | |
| Total net cash from / used in fi nancing activities | 49.3 | 1,676 | –1,651 |
| Net change in cash and cash equivalents | –1,618 | 284 | |
| Effect of changes in exchange rates on cash and cash equivalents | 20 | 67 | |
| 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 | 4,662 | 3,064 | |
| Cash and cash equivalents at end of reporting period | 49.4 | 3,064 | 3,415 |
1 January to 31 December
| € m | Other reserves | Equity | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Issued capital | Capital reserves |
ias 39 reserves |
ifrs 3 revaluation reserve |
Currency translation reserve |
Retained earnings |
attributable to Deutsche Post ag shareholders |
Non controlling interests |
Total equity | |
| Note | 39 | 40 | 40 | 40 | 40 | 41 | 42 | 43 | |
| 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 non-controlling interests | |||||||||
| due to changes in consolidated group | 0 | 0 | 0 | 0 | 0 | 0 | 0 | –1,896 | –1,896 |
| Share Matching Scheme (issuance) | 0 | 5 | 0 | 0 | 0 | 0 | 5 | 0 | 5 |
| –720 | –1,935 | –2,655 | |||||||
| Total comprehensive income | |||||||||
| Consolidated net profi t for the period | 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 |
| Balance at 1 January 2010 | 1,209 | 2,147 | –70 | 7 | –1,215 | 6,098 | 8,176 | 97 | 8,273 |
| Capital transactions with owner | |||||||||
| Dividend | 0 | 0 | 0 | 0 | 0 | –725 | –725 | – 67 | –792 |
| Transactions with non-controlling interests |
0 | 0 | 0 | 0 | 0 | –147 | –147 | 54 | – 93 |
| Changes in non-controlling interests | |||||||||
| due to changes in consolidated group | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of treasury shares | –1 | 0 | 0 | 0 | 0 | – 9 | –10 | 0 | –10 |
| Share Matching Scheme (issuance) | 0 | 20 | 0 | 0 | 0 | 0 | 20 | 0 | 20 |
| Share Matching Scheme (exercise) | 1 | – 9 | 0 | 0 | 0 | 8 | 0 | 0 | 0 |
| – 862 | –13 | – 875 | |||||||
| Total comprehensive income | |||||||||
| Consolidated net profi t for the period | 0 | 0 | 0 | 0 | 0 | 2,541 | 2,541 | 89 | 2,630 |
| Currency translation differences | 0 | 0 | 0 | 0 | 533 | 0 | 533 | 12 | 545 |
| Other changes | 0 | 0 | 123 | –1 | 0 | 1 | 123 | 0 | 123 |
| 3,197 | 101 | 3,298 | |||||||
| Balance at 31 December 2010 | 1,209 | 2,158 | 53 | 6 | – 682 | 7,767 | 10,511 | 185 | 10,696 |
As a listed company, Deutsche Post AG prepared its consolidated fi nancial statements in accordance with the International Financial Reporting Standards (IFRS s) 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 Wertpapier handelsgesetz (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 2010, are generally based on the same accounting policies used in the 2009 consolidated fi nancial statements. Exceptions to this are the changes in international fi nancial reporting under the IFRS s described in Note 4 that have been required to be applied by the Group since 1 January 2010 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 18 February 2011.
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 2010 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.
| 2009 | 2010 | |
|---|---|---|
| Number of fully consolidated companies ( subsidiaries) |
||
| German | 79 | 80 |
| Foreign | 791 | 747 |
| Number of proportionately consolidated joint ventures |
||
| German | 1 | 1 |
| Foreign | 18 | 16 |
| Number of companies accounted for using the equity method (associates) |
||
| German | 29 | 28 |
| Foreign | 23 | 31 |
Th e complete list of the Group's shareholdings in accordance with section 313 (2) nos. 1 to 4 and (3) of the HGB can be found in Note 60.
Purchase price allocation
No signifi cant acquisitions that require separate presentation were made in fi nancial year 2010.
Final purchase price allocation for the US company Polar Air Cargo Worldwide, Inc. (Polar Air) was performed in fi nancial year 2009.
| € 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 |
Initial consolidation resulted in goodwill of € 100 million.
Th e following table presents the acquisitions of subsidiaries in fi nancial year 2010 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 | ||
|---|---|---|---|
| 1 January to 31 December | amount | Adjustments | Fair value |
| assets | |||
| Non-current assets | 0 | – | 0 |
| Current assets | 1 | – | 1 |
| Cash and cash equivalents | 0 | – | 0 |
| 1 | – | 1 | |
| equity and liabilities | |||
| Non-current liabilities and provisions | 0 | – | 0 |
| Current liabilities and provisions | 0 | – | 0 |
| 0 | – | 0 | |
| Net assets | 1 | ||
| Goodwill | 20 |
|---|---|
| Less non-controlling interests1) | 2 |
| Full goodwill | 22 |
| Less net assets | 1 |
| Acquisition cost | 23 |
| Fair value | |
| € m |
1) Non-controlling interests were recognised at the carrying amount.
Th e companies had no material eff ect on consolidated revenue or consolidated EBIT. Th ere would have been no change if the companies had been included as at January 2010.
Th e following table shows the insignifi cant acquisitions in the previous year.
| € m | Carrying | ||
|---|---|---|---|
| 1 January to 31 December | amount | Adjustments | Fair value |
| assets | |||
| Non-current assets | 5 | – | 5 |
| Current assets | 9 | – | 9 |
| Cash and cash equivalents | 5 | – | 5 |
| 19 | – | 19 | |
| equity and liabilities | |||
| Non-current liabilities and provisions | 0 | – | 0 |
| Current liabilities and provisions | 15 | – | 15 |
| 15 | – | 15 | |
| Net assets | 4 |
| € m | |
|---|---|
| Fair value | |
| Acquisition cost | 50 |
| Less net assets | 4 |
| Full goodwill | 46 |
| Less non-controlling interests1) | 19 |
| Goodwill | 27 |
1) Non-controlling interests were recognised at the carrying amount.
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 acquired as at 1 January 2009, the amounts would have changed only insignifi cantly.
A total of € 23 million was spent in fi nancial year 2010 on acquiring subsidiaries and € 51 million for subsidiaries acquired in previous years (previous year (adjusted): € 45 million; see Note 5). Th e purchase prices of the acquired companies were paid in cash. Further information about cash fl ows can be found in Note 49.
Th e following table shows the disposal and deconsolidation eff ects of companies and business areas in fi nancial year 2010. DHL Express (uK) Ltd., UK, sold its day-defi nite domestic business in March. € 12 million in expenses was recognised by DHL Express UK pro rata from the currency translation reserve. In April, DHL Supply Chain Austria sold parts of its contract logistics operations (frozen and chilled food logistics). Th e sale of the day-defi nite domestic business of DHL Express (France) SAS, France, and of the champagne business of DHL Freight France, was completed in June. Th e disposal eff ects attributable to Fulfi lment Plus GmbH, Germany, Exel Delamode Logistics SRL, Romania, and Innogistics LLC, USA, are presented in the Miscellaneous column. Th e deconsolidations resulted in an aggregate loss of € 288 million, which is reported under other operating expenses.
| € m | dhl Express | ||||
|---|---|---|---|---|---|
| dhl Express | France; dhl | dhl Supply | |||
| 1 January to 31 December | uk | Freight France | Chain Austria Miscellaneous | Total | |
| Disposal effects | |||||
| Non-current assets | 0 | 1 | 37 | 1 | 39 |
| Current assets | 0 | 0 | 36 | 0 | 36 |
| Assets held for sale1) | 54 | 69 | 0 | 5 | 128 |
| Cash and cash equivalents | 0 | 0 | 7 | 0 | 7 |
| Non-current liabilities and provisions | 0 | 0 | 19 | 0 | 19 |
| Current liabilities and provisions | 0 | 0 | 47 | 0 | 47 |
| Liabilities associated with assets held for sale1) | 39 | 91 | 0 | 2 | 132 |
| Net assets | 15 | –21 | 14 | 4 | 12 |
| Total consideration received | –26 | –243 | 1 | 4 | –264 |
| Deconsolidation gain (+) / loss (–) | – 53 | –222 | –13 | 0 | –288 |
1) Data before deconsolidation.
In the prior-year period, the sale of the 22.9 % interest in Deutsche Postbank AG resulted in a deconsolidation gain of € 444 million, which is reported under profi t from discontinued operations. Th e expenses reported in other comprehensive income in the amount of € 277 million from the IAS 39 revaluation reserve, the related tax income of € 87 million and expenses in the amount of € 31 million from the currency translation reserve were realised in profi t or loss. DHL Global Mail Services SAS, France, DHL Container Logistics UK Ltd., UK, and 4 C Associates Ltd., UK, were also sold, resulting in an aggregate deconsolidation loss of € 22 million.
| € m | Deutsche | ||
|---|---|---|---|
| Postbank | Other | ||
| 1 January to 31 December | Group | companies | Total |
| Disposal effects | |||
| Non-current assets | 0 | 26 | 26 |
| Current assets | 0 | 48 | 48 |
| Assets held for sale1) | 243,684 | 0 | 243,684 |
| Cash and cash equivalents | 0 | 7 | 7 |
| Provisions | 0 | 4 | 4 |
| Trade payables and other liabilities | 0 | 43 | 43 |
| Financial liabilities | 0 | 9 | 9 |
| Liabilities associated with assets held for sale1) |
238,734 | 0 | 238,734 |
| Net assets | 4,950 | 25 | 4,975 |
| Total consideration received | 1,194 | 3 | 1,197 |
| Deconsolidation gain (+) / loss (–) | 444 | –22 | 422 |
1) Data before deconsolidation.
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 2009. 25 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. 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. Th e eff ects of the planned Postbank sale are as follows:
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| balance sheet | ||
| Investments in associates | 1,705 | 1,797 |
| Non-current fi nancial assets | 789 | 2,509 |
| Financial liabilities | 4,012 | 4,164 |
| income statement | ||
| Net income from associates | 19 | 52 |
| Net other fi nancial income | 632 | 1,517 |
| Profi t from discontinued operations | 432 | 0 |
As part of the planned sale of Deutsche Postbank shares, an additional interest of 27.4 % will be transferred to Deutsche Bank AG aft er three years, in February 2012, 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 and was fully subscribed by Deutsche Bank AG. Th e bond will be exercised through the transfer of 60 million Deutsche Postbank AG shares. As at 31 December 2010, the non-current liability amounted to around € 2.6 billion plus accrued interest expense. In a third tranche, Deutsche Post AG and Deutsche Bank AG have agreed on options for the possible sale / purchase of a further 12.1 % of the Postbank shares. Th e exercise period for the options commences on the fi rst working day aft er the exercise of the mandatory exchangeable bond and ends in February 2013. Th e options are reported under non-current fi nancial assets and non-current fi nancial liabilities. 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 along with the interest expense.
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 | ||
|---|---|---|
| 20091) | 20101) | |
| balance sheet | ||
| Intangible assets | 82 | 97 |
| Property, plant and equipment | 24 | 20 |
| Receivables and other assets | 50 | 64 |
| Cash and cash equivalents | 11 | 16 |
| Trade payables, other liabilities | 50 | 68 |
| Provisions | 4 | 12 |
| Financial liabilities | 62 | 63 |
| income statement | ||
| Revenue2) | 211 | 260 |
| Profi t from operating activities (ebit) | 8 | 13 |
1) Proportionate single-entity fi nancial statement data.
2) Revenue excluding intra-group 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.
Eff ective 1 January 2010, the IASB clarifi ed the scope exemption in IAS 39.2 (g) with regard to the maturity of transactions related to the sale of shares required for settlement. 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. For the presentation of the planned Postbank sale, this means that the forward transaction embedded in the mandatory exchangeable bond, which was previously not recognised, must now be recognised. Th e forward transaction was recognised in profi t or loss as at 1 January 2010 at its fair value of € 1,453 million. Th e value of the forward trans action increased to € 1,653 million as at 31 December 2010. Changes in this fair value at the subsequent reporting dates may continue to aff ect net fi nance costs /net fi nancial income; Note 18. Further details on the accounting treatment of the investment in Deutsche Postbank AG in fi nancial year 2010 can be found in Notes 46, 50.
4 New developments in international accounting under the ifrs s Th e following Standards, changes to Standards and Interpretations are required to be applied on or aft er 1 January 2010:
| Signifi cance | |
|---|---|
| ifrs 3 (Business Combinations) and ias 27 | |
| (Consolidated and Separate Financial Statements) | relevant |
| Improvements to ifrs s (2009) | relevant |
| ias 39 (Financial Instruments: Recognition and Measurement) | relevant |
| ifrs 1 (First-time Adoption of International Financial Reporting | |
| Standards) (Amendment) | irrelevant |
| ifrs 2 (Share-based Payment) | irrelevant |
| ifrs for Small and Medium-sized Enterprises (ifrs for sme s) | irrelevant |
| ifric 12 (Service Concession Arrangements) | irrelevant |
| ifric 15 (Agreements for the Construction of Real Estate) | irrelevant |
| ifric 17 (Distributions of Non-cash Assets to Owners) | irrelevant |
| ifric 18 (Transfers of Assets from Customers) | irrelevant |
Th e revised versions of IFRS 3 (Business Combinations) and IAS 27 (Consolidated and Separate Financial Statements) contain the following key 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 non-controlling interests to be measured either at their fair value (full goodwill method) or at the fair value of the proportionate net assets identifi ed. Once control is acquired, acquisition- related costs are no longer capitalised, but recognised in full as expenses. In addition, increases in majority interests and partial disposals of shares where control is retained are accounted for as equity transactions with owners, and gains or losses are not recognised. In this case, transaction costs must also be recognised exclusively in other comprehensive income. Th e revision of the Standard also amended the treatment of contingent consideration to the extent that it is now recognised at fair value at the date of initial consolidation regardless of its likelihood of occurrence. Application of the amendments is mandatory for business combinations in fi nancial years beginning on or aft er 1 July 2009. Since fi nancial year 2010, business combinations have been treated in accordance with the two amended Standards, with a corresponding eff ect on the consolidated fi nancial statements. In this context, the corresponding provisions of IAS 7 (Statement of Cash Flows) were also amended; Note 5.
As a result of amendments contained in the Annual Improvements to IFRS s that became eff ective as at 1 January 2010, the clarifi cation of the scope exemption in IAS 39.2 (g) in particular had a signifi cant eff ect on Deutsche Post DHL's consolidated fi nan cial statements. Th e forward transaction (planned sale of Postbank shares) embedded in the mandatory exchangeable bond was recognised in profi t or loss eff ective 1 January 2010 and will be measured at fair value in subsequent periods, as the maturity of transactions related to the sale of Postbank shares required for settlement exceeds the time required; Note 3.
On 31 July 2008, amendments to IAS 39 (Financial Instruments: Recognition and Measurement) entitled Eligible Hedged Items were issued. Amongst other things, the amendments clarify how option contracts that are used as hedging instruments must be accounted for in order to be classifi ed as highly eff ective during eff ectiveness testing. Th e amendments must be applied retrospectively for annual periods beginning on or aft er 1 July 2009. Th e eff ects on the consolidated fi nancial statements are insignifi cant.
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.
| Required to be applied for fi nancial years beginning |
||
|---|---|---|
| on or after | Signifi cance | |
| Early application of partial exemp |
||
| ias 24 (Related Party Disclosures) | 1 January 2011 | tion; relevant |
| ifric 19 (Extinguishing Financial Liabilities with Equity Instruments) ifric 14 (Prepayments of a Minimum Funding |
1 July 2010 | relevant |
| Requirement) | 1 January 2011 | relevant |
| ias 32 (Financial Instruments: Presentation) | 1 February 2010 | irrelevant |
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 the fi rst time 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 results in additional disclosure requirements. Deutsche Post DHL applied the partial exemption early as at 31 Decem ber 2010.
IFRIC 19 (Extinguishing Financial Liabilities with Equity Instruments) clarifi es how to account for equity instruments if an entity renegotiates the terms of a fi nancial liability and issues equity instruments to fully or partially extinguish the fi nancial liability. Th e guidance is required 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 insignifi cant.
Th e amendments to IFRIC 14 (Prepayments of a Minimum Funding Requirement) are relevant if a pension plan provides for a minimum funding requirement and the entity makes prepayments towards this. In comparison with the existing rules, the economic benefi t of prepayments by an entity that reduce future contributions due to the minimum funding requirement is recognised as an asset. Th e amendments are required to be applied from the beginning of the earliest comparative period presented in the fi rst fi nancial statements in which the entity applies this Interpretation. Adjustments resulting from the application of the amendments must be recognised in retained earnings in the opening balance sheet for this comparative period. Th e amendments are required to be applied for fi nancial years beginning on or aft er 1 January 2011. Voluntary earlier application is permitted. Th e application of the amended Interpretation will have no eff ect on the consolidated fi nan cial statements.
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 amendments have no eff ects on the consolidated fi nancial statements.
Th e IASB and the IFRIC issued further Standards and Interpretations in fi nancial year 2010 and in previous years whose application is not yet mandatory for fi nancial year 2010. Th e application of these IFRS s is dependent on their adoption by the EU.
| Required to be applied for fi nancial |
|||
|---|---|---|---|
| Issue date | years beginning on or after |
Signifi cance | |
| ifrs 9 (Financial Instruments) 12 November 2009 | 1 January 2013 | under review | |
| ifrs 7 (Financial Instruments: Disclosures) (Amendments) |
7 October 2010 | 1 July 2011 | under review |
| Improvements to ifrs s (2010) | 6 May 2010 | 1 July 2010 | under review |
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. IFRS 9 initially introduces new guidance for the classifi cation and measurement of fi nancial assets. Additional guidance on the recognition, classifi cation and measurement of liabilities was issued by the IASB on 28 November 2010. Th e exposure draft s on Amortised Cost and Impairment dated 5 November 2009 and Hedge Accounting dated 9 December 2010 are currently being discussed with the aim of including both draft s in IFRS 9 following fi nal discussion and hence of replacing IAS 39. Th is guidance is required to be applied retrospectively for the fi rst time for fi nancial years beginning on or aft er 1 January 2013. Earlier application is permitted. Th e EU has not yet decided whether to endorse this Standard. Th e corresponding eff ects on the Group of the parts of IFRS 9 that have already been issued are being assessed.
On 7 October 2010, the IASB issued amendments to IFRS 7 (Financial Instruments: Disclosures). Th ese relate to disclosure requirements in connection with transfers of fi nancial assets. Th e amendment of this Standard will lead to extensive disclosures on rights and obligations that may be retained or assumed in a transaction. Th e amendments to IFRS 7 are required to be applied for fi nancial years beginning on or aft er 1 July 2011. No comparative fi gures are necessary in the fi rst year of application. Th e eff ects on the Group are currently being assessed.
On 6 May 2010, the IASB issued its minor annual Improvements to IFRS s. A large proportion of the changes are required to be applied retrospectively for the fi rst time for fi nancial years beginning on or aft er 1 January 2011. However, the following amendment to IFRS 3 (Business Combinations) is required to be applied for fi nancial years beginning on or aft er 1 July 2010, although voluntary earlier application is permitted. Th e revision of IFRS 3 (Business Combinations) signifi cantly amended the treatment of contingent consideration to the extent that this is now recognised at fair value at the date of initial consolidation regardless of its likelihood of occurrence. For this reason, contingent consideration is no longer exempted from the scope of IFRS 7 (Finan cial Instruments: Disclosures), IAS 32 (Financial Instruments: Presentation) and IAS 39 (Financial Instruments: Recognition and Measurement). However, in order to clarify that these IFRS s are not applicable to contingent purchase price payments in business combinations whose acquisition date is before the initial application date of the revised IFRS 3, the rules governing the eff ective date of the amendments resulting from the revision of IFRS 3 were adjusted to this eff ect. In addition, the transitional provisions in IFRS 3 were extended to include the accounting requirements in the superseded IFRS 3 that remain applicable to these contingent purchase price payments. Overall, therefore, the amendments clarify that the new rules on contingent consideration in the revised IFRS 3 are not required to be applied retrospectively to legacy cases. Th e EU has not yet endorsed the amendments.
In connection with the amendments to IAS 27 and IFRS 3 eff ective 1 January 2010 and required to be applied prospectively, IAS 7 was also amended with regard to the presentation of proceeds from disposals of non-current assets or cash paid to acquire noncurrent assets (in this case: subsidiaries and other companies) in the cash fl ow statement. However, the IAS 7 amendment is required to be applied retrospectively. Th e prior-year fi gures were adjusted accordingly.
| € m | 2009 | Adjustments | 2009 adjusted |
|---|---|---|---|
| Net cash used in investing activities | |||
| Cash paid to acquire non-current assets |
|||
| Subsidiaries and other business units | – 53 | 12 | – 41 |
| Net cash from fi nancing activities | |||
| Cash paid for transactions with non-controlling interests |
0 | –12 | –12 |
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 periodic 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 2010, currency translation diff erences amounting to € 533 million (previous year: € 182 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 | 2009 EUR 1 = |
2010 EUR 1 = |
2009 EUR 1 = |
2010 EUR 1 = |
| usd | usa | 1.44 | 1.34 | 1.40 | 1.32 |
| chf | Switzerland | 1.48 | 1.25 | 1.51 | 1.37 |
| gbp | United Kingdom | 0.89 | 0.86 | 0.89 | 0.86 |
| sek | Sweden | 10.27 | 8.97 | 10.59 | 9.49 |
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 2010, income of € 197 million (previous year: € 161 million) and expenses of € 195 million (previous year: € 163 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 fi ve 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 overhead costs. 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.
| years | ||
|---|---|---|
| 2009 | 2010 | |
| Buildings | 5 to 50 | 5 to 50 |
| Technical equipment and machinery | 3 to 10 | 3 to 10 |
| Passenger vehicles | 4 to 6 | 4 to 6 |
| Trucks | 5 to 8 | 5 to 8 |
| Aircraft | 15 to 20 | 15 to 20 |
| Other vehicles | 3 to 8 | 3 to 8 |
| it systems | 3 to 8 | 3 to 8 |
| Other operating and offi ce equipment | 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 s) 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 as the lessee, 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 non-current 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 (Investments in Associates). Based on the cost of acquisition at the time of purchase of the invest ments, 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 invest ments 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 nan cial 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.
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 carry ing 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-fortrading 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 slow-moving 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.
Assumptions regarding the price of Deutsche Post AG's shares and assumptions regarding employee fl uctuation are taken into account when measuring the value of share-based payments for executives (Share Matching Scheme, SMS), which are required to be accounted for as equity-settled share-based payment transactions pursuant to IFRS 2. Assumptions are also made regarding the conversion behaviour of executives with respect to their relevant bonus portion. Share-based payment arrangements are entered into each year, with 1 January of the respective year being the grant date for that year's tranche. All assumptions are reviewed on a quarterly basis. Th e resulting staff costs are recognised pro rata in profi t or loss to refl ect the services rendered as consideration during the vesting period (lock-up period). Obligations that in future are settled by issuing shares in Deutsche Post AG and do not provide the executives with a choice of settlement are recognised in equity pursuant to IFRS 2.
Stock appreciation rights issued to members of the Board of Management and executives are measured on the basis of an 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 be exercised 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 similar obliga tions. Pension obligations are measured using the projected unit credit method prescribed by IAS 19 for defi ned benefi t plans. Th is involves making certain actuarial assumptions. 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 (10 % corridor). 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; the other components are reported under staff costs.
Th e Group also contributes to a number of defi ned contribution pension plans. Contributions to these pension plans are recognised as staff costs.
Deutsche Post AG pays contributions to defi ned contribution plans for civil servants in accordance with statutory provisions.
Under the provisions of the Gesetz zum Personalrecht der Beschäft igten der früheren Deutschen Bundespost ( PostPersRG – Deutsche Bundespost former employees act), introduced as article 4 of the Gesetz zur Neuordnung des Postwesens und der Tele kommunikation (PTNeuOG – German posts and telecommunications reorganisation act), Deutsche Post AG makes benefi t and assistance payments from a special pension fund for postal civil servants operated jointly by the Deutsche Bundespost successor companies, the Bundes-Pensions-Service für Post und Telekommunikation e. V. (BPS-PT), 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 PostPersRG. Since 2000, this Act has obliged Deutsche Post AG to pay into this special pension fund for postal civil servants an annual contribution of 33 % of the gross compensation of its active civil servants and the notional gross compensation of civil servants on leave of absence who are eligible for a pension.
In the year under review, expenses resulting from Deutsche Post AG's contributions to the BPS-PT amounted to € 541 million (previous year: € 559 million).
Under section 16 of the PostPersRG, the federal government takes appropriate measures to make good the diff erence between the current payment obligations of the special pension fund for postal civil servants on the one hand, and the funding companies' current contributions or other return on assets on the other, and guarantees that the special pension fund for postal civil servants 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 for postal civil servants under the terms of this guarantee, it cannot claim reimbursement from Deutsche Post AG.
Th e obligations under defi ned benefi t pension plans 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).
A large proportion of the defi ned benefi t obligations in Germany relate to Deutsche Post AG. Deutsche Post AG established Deutsche Post Pensionsfonds AG 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.
In 2010, employer contributions totalling € 237 million were paid in respect of defi ned contribution pension plans for the Group's hourly workers and salaried employees (previous year: € 189 million).
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 0.5 % and 11.5 % (previous year: 1 % to 12.75 %).
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. For example, this applies to assets held for sale. In this case, 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 s 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 similar obligations, the discount rate used is an important factor that has to be estimated. An increase or a reduction of one percentage point in the discount rate used would result in a reduction or increase of around € 930 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 € 490 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 assessment. 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 circum stances 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 environ ment 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 2011 to the carrying 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 2010 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. Acquisitionrelated costs are recognised as expenses. Contingent consideration is recognised at fair value at the date of initial consolidation.
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 nan cial 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.
Intra-group revenue, other operating income and expenses as well as receivables, liabilities and provisions between consolidated companies are eliminated. Intercompany profi ts or losses from intra-group deliveries and services not realised by sale to third parties are eliminated.
| € m | express | global forwarding, freight |
supply chain | Corporate Center / Other |
Consolidation | Continuing operations |
Discontinued operations |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 Jan. to 31 Dec. | 20091) | 2010 | 20091) | 2010 | 20091) | 2010 | 20091) | 2010 | 2009 | 2010 | 20091) | 2010 | 2009 | 2010 | 2009 | 2010 |
| External revenue | 13,777 | 13,700 | 9,635 | 10,788 | 10,630 | 13,738 | 12,087 | 13,184 | 72 | 71 | 0 | 0 | 46,201 | 51,481 | 1,634 | 0 |
| Internal revenue | 135 | 121 | 282 | 323 | 613 | 603 | 96 | 117 | 1,455 | 1,231 | –2,581 | –2,395 | 0 | 0 | 0 | 0 |
| Total revenue | 13,912 | 13,821 | 9,917 | 11,111 | 11,243 | 14,341 | 12,183 | 13,301 | 1,527 | 1,302 | –2,581 | –2,395 | 46,201 | 51,481 | 1,634 | 0 |
| Profi t / loss from oper ating activities (ebit) |
1,391 | 1,118 | –790 | 497 | 174 | 383 | –216 | 233 | –328 | –395 | 0 | –1 | 231 | 1,835 | –24 | 0 |
| Net income from associates |
2 | 0 | –1 | 0 | 8 | 4 | 0 | 0 | 19 | 52 | 0 | 0 | 28 | 56 | 0 | 0 |
| Segment assets | 3,665 | 3,891 | 8,295 | 8,323 | 6,665 | 7,727 | 5,706 | 6,030 | 1,271 | 1,191 | –257 | –132 | 25,345 | 27,030 | 0 | 0 |
| Investments in associates |
24 | 8 | 31 | 28 | 12 | 15 | 0 | 0 | 1,705 | 1,796 | 0 | 0 | 1,772 | 1,847 | 0 | 0 |
| Segment liabilities2) | 2,334 | 2,436 | 2,795 | 2,525 | 2,288 | 2,777 | 2,743 | 2,942 | 1,123 | 1,177 | –330 | –187 | 10,953 | 11,670 | 0 | 0 |
| Capex | 338 | 445 | 370 | 286 | 92 | 102 | 195 | 215 | 176 | 214 | 0 | 0 | 1,171 | 1,262 | 7 | 0 |
| Depreciation and amortisation |
332 | 306 | 367 | 349 | 114 | 98 | 301 | 294 | 242 | 191 | 0 | 0 | 1,356 | 1,238 | 0 | 0 |
| Impairment losses | 0 | 17 | 116 | 24 | 0 | 0 | 91 | 4 | 57 | 13 | 0 | 0 | 264 | 58 | 0 | 0 |
| Total depreciation, amortisation and impairment losses |
332 | 323 | 483 | 373 | 114 | 98 | 392 | 298 | 299 | 204 | 0 | 0 | 1,620 | 1,296 | 0 | 0 |
| Other non-cash | ||||||||||||||||
| expenses | 433 | 365 | 1,089 | 792 | 142 | 73 | 342 | 152 | 126 | 58 | 0 | 0 | 2,132 | 1,440 | 114 | 0 |
| Employees3) | 147,897 146,365 | 97,985 | 88,384 | 41,763 | 41,729 134,259 131,032 | 14,747 | 13,764 | 0 | 0 436,651 421,274 | 0 | 0 |
| € m | Germany | Europe excluding Germany |
Americas | Asia Pacific | Other regions | Continuing operations |
Discontinued operations |
|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 Jan. to 31 Dec. | 20091) | 2010 | 20091) | 2010 | 20091) | 2010 | 20091) | 2010 | 20091) | 2010 | 2009 | 2010 | 2009 | 2010 |
| External revenue1) | 16,269 | 16,527 | 15,968 | 16,951 | 7,099 | 8,888 | 5,272 | 7,147 | 1,593 | 1,968 | 46,201 | 51,481 | 1,634 | 0 |
| Non-current assets | 3,837 | 4,085 | 7,672 | 7,198 | 3,105 | 3,261 | 2,932 | 3,231 | 299 | 329 | 17,845 | 18,104 | 0 | 0 |
| Capex | 635 | 733 | 300 | 174 | 123 | 210 | 78 | 94 | 35 | 51 | 1,171 | 1,262 | 7 | 0 |
1) Prior-period amounts adjusted.
2) Including non-interest-bearing provisions.
3) Average fte s.
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 bottom-line responsibility who report directly to Deutsche Post DHL's top management.
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.
In keeping with internal reporting, capital expenditure (capex) is disclosed. Additions to intangible assets net of goodwill and to property, plant and equipment are reported in the capex fi gure. Depreciation, amortisation and impairment losses relate to the segment assets allocated to the individual divisions. Other non-cash expenses relate primarily to expenses from the recognition of provisions.
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, Value-Added Services, Parcel Germany, Retail Outlets, Global Mail and the Pension Service. Eff ective 1 July 2010, signifi cant parts of Williams Lea Germany were transferred from the SUPPLY CHAIN division to the MAIL division. Th ese parts are reported in the newly created Value-Added Services business unit. Th e prior-year fi gures were adjusted accordingly.
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. To more appropriately refl ect the diff erent requirements of Express and Freight customers, the domestic freight business was transferred from DHL Express Sweden to DHL Freight Sweden eff ective 1 January 2010. Th e prior-year fi gures were adjusted accordingly.
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. To more appropriately refl ect the diff erent requirements of Express and Freight customers, the domestic freight business was transferred from DHL Express Sweden to DHL Freight Sweden eff ective 1 January 2010. Th e prior-year fi gures were adjusted accordingly.
Th e division specialises in contract logistics and provides warehousing and transport services as well as value-added services along the entire supply chain in the diff erent sectors. 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. Eff ective 1 July 2010, signifi cant parts of Williams Lea Germany were transferred from the SUPPLY CHAIN division to the MAIL division. Th e prior-year fi gures were adjusted accordingly.
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 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. 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.
Th e main geographical areas 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. To enhance transparency, the management allocations previously contained in the external revenue fi gures were removed from the areas. Th e allocation of non-current assets by geo graphical area was also adjusted. Th ese adjustments did not aff ect the amounts presented for the Group. Th e prior-period amounts were adjusted accordingly. Revenue, assets and capex are allocated to the individual regions on the basis of the domicile of the reporting entity. Non-current assets primarily comprise intangible assets, property, plant and equipment and other noncurrent assets.
Reconciliation of segment amounts to consolidated amounts
| € m | Total for reportable | Reconciliation to Group / | |||||||
|---|---|---|---|---|---|---|---|---|---|
| segments | Corporate Center / Other | Consolidation | Consolidated amount | ||||||
| 20091) | 2010 | 2009 | 2010 | 20091) | 2010 | 2009 | 2010 | ||
| External revenue | 46,129 | 51,410 | 72 | 71 | 0 | 0 | 46,201 | 51,481 | |
| Internal revenue | 1,126 | 1,164 | 1,455 | 1,231 | –2,581 | –2,395 | 0 | 0 | |
| Revenue | 47,255 | 52,574 | 1,527 | 1,302 | –2,581 | –2,395 | 46,201 | 51,481 | |
| Other operating income | 1,766 | 1,859 | 1,528 | 1,509 | –1,153 | –1,151 | 2,141 | 2,217 | |
| Materials expense | –26,815 | –30,464 | –1,459 | –1,408 | 2,500 | 2,399 | –25,774 | –29,473 | |
| Staff costs | –16,099 | –15,726 | – 940 | – 902 | 18 | 19 | –17,021 | –16,609 | |
| Other operating expenses | – 4,227 | – 4,920 | – 685 | – 692 | 1,216 | 1,127 | –3,696 | – 4,485 | |
| Depreciation, amortisation and impairment losses | –1,321 | –1,092 | –299 | –204 | 0 | 0 | –1,620 | –1,296 | |
| Profi t / loss from operating activities (ebit) | 559 | 2,231 | –328 | –395 | 0 | –1 | 231 | 1,835 | |
| Net income from associates | 9 | 4 | 19 | 52 | 0 | 0 | 28 | 56 | |
| Net other fi nancial income | – | – | – | – | – | – | 17 | 933 | |
| Income taxes | – | – | – | – | – | – | –15 | –194 | |
| Profi t from discontinued operations | – | – | – | – | – | – | 432 | 0 | |
| Consolidated net profi t for the period | – | – | – | – | – | – | 693 | 2,630 | |
| of which attributable to | |||||||||
| Deutsche Post ag shareholders | – | – | – | – | – | – | 644 | 2,541 | |
| Non-controlling interests | – | – | – | – | – | – | 49 | 89 |
1) Prior-period amounts adjusted.
Th e following table shows the reconciliation of Deutsche Post DHL's total assets to the segment assets. Financial assets, income tax assets, deferred taxes, cash and cash equivalents as well as additional interest-bearing asset components are deducted.
| € m | ||
|---|---|---|
| 20091) | 2010 | |
| Total assets | 34,738 | 37,763 |
| Investment property | –32 | –37 |
| Non-current fi nancial assets including investments | ||
| in associates | –3,220 | – 5,040 |
| Other non-current assets | –323 | –387 |
| Deferred tax assets | – 668 | – 973 |
| Income tax assets | –196 | –223 |
| Receivables and other assets | –29 | –35 |
| Current fi nancial assets | –1,861 | – 623 |
| Cash and cash equivalents | –3,064 | –3,415 |
| Segment assets | 25,345 | 27,030 |
| of which Corporate Center / Other | 1,271 | 1,191 |
| Total for reportable segments | 24,331 | 25,971 |
| Consolidation | –257 | –132 |
Th e following table shows the reconciliation of Deutsche Post DHL's total liabilities to the segment liabilities. Th e interest-bearing components of the provisions and liabilities as well as income tax liabilities and deferred taxes are deducted.
| € m | ||
|---|---|---|
| 20091) | 2010 | |
| Total equity and liabilities | 34,738 | 37,763 |
| Equity | – 8,273 | –10,696 |
| Consolidated liabilities | 26,465 | 27,067 |
| Non-current provisions | –7,031 | –7,168 |
| Non-current liabilities | –7,071 | – 6,676 |
| Current provisions | –344 | –298 |
| Current liabilities | –1,066 | –1,255 |
| Segment liabilities | 10,953 | 11,670 |
| of which Corporate Center / Other | 1,123 | 1,177 |
| Total for reportable segments | 10,160 | 10,680 |
| Consolidation | –330 | –187 |
1) Prior-period amounts adjusted.
1) Prior-period amounts adjusted.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Revenue | 46,201 | 51,481 |
As in the prior-year period, there was no revenue in fi nancial year 2010 that was generated on the basis of barter transactions. Revenue was up year-on-year in almost all areas.
Th e further classifi cation of revenue by division and the allocation of revenue to geographical regions are presented in the segment reporting.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Income from the reversal of provisions | 562 | 509 |
| Income from currency translation differences | 161 | 197 |
| Rental and lease income | 172 | 173 |
| Insurance income | 171 | 169 |
| Income from fees and reimbursements | 124 | 142 |
| Income from work performed and capitalised | 138 | 124 |
| Income from the remeasurement of liabilities | 77 | 111 |
| Commission income | 69 | 93 |
| Reversals of impairment losses on receivables | ||
| and other assets | 81 | 81 |
| Gains on disposal of non-current assets | 40 | 55 |
| Income from prior-period billings | 34 | 49 |
| Income from the derecognition of liabilities | 38 | 42 |
| Income from loss compensation | 22 | 21 |
| Income from derivatives | 90 | 16 |
| Recoveries on receivables previously written off | 11 | 11 |
| Subsidies | 7 | 10 |
| Income from trade-related insurance deductions | 7 | 4 |
| Miscellaneous | 337 | 410 |
| Other operating income | 2,141 | 2,217 |
Other operating income was up slightly on the prior-year level. As in the previous year, income from the reversal of provisions relates primarily to the restructuring of the US express business.
Miscellaneous other operating income includes a large number of smaller individual items.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Cost of raw materials, consumables and supplies, and of goods purchased and held for resale |
||
| Fuel | 736 | 744 |
| Aircraft fuel | 454 | 690 |
| Packaging material | 317 | 308 |
| Goods purchased and held for resale | 1,311 | 1,512 |
| Offi ce supplies | 68 | 72 |
| Spare parts and repair materials | 83 | 93 |
| Other expenses | 83 | 91 |
| 3,052 | 3,510 | |
| Cost of purchased services | ||
| Transportation costs | 14,791 | 17,823 |
| Cost of temporary staff | 1,852 | 1,871 |
| Expenses from non-cancellable leases | 1,820 | 1,693 |
| Expenses from cancellable leases | 405 | 453 |
| Other lease expenses (incidental expenses) | 145 | 184 |
| Maintenance costs | 957 | 969 |
| it services | 667 | 652 |
| Commissions paid | 341 | 411 |
| Expenses for the use of Postbank branches | 519 | 484 |
| Other purchased services | 1,225 | 1,423 |
| 22,722 | 25,963 | |
| Materials expense | 25,774 | 29,473 |
Th e increase in the materials expense is due on the one hand to higher aircraft fuel prices, and on the other hand to higher transportation costs as a result of the expansion of business activities. Other expenses include a large number of individual items.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Wages, salaries and compensation | 13,160 | 13,271 |
| of which expenses under Share Matching Scheme | 5 | 20 |
| of which expenses from 2006 sar Plan / ltip | 11 | 21 |
| Social security contributions | 2,040 | 1,973 |
| Retirement benefi t expenses | 911 | 947 |
| Expenses for other employee benefi ts | 312 | 275 |
| Expenses for severance payments | 598 | 143 |
| Staff costs | 17,021 | 16,609 |
Th e decrease in staff costs is mainly attributable to lower expenses for severance payments. Th e previous year was materially impacted by the restructuring provisions in the United States and as a result of the insolvency of Arcandor.
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.
Retirement benefi t expenses consist of additions to provisions for pensions and similar obligations as well as contributions to defi ned contribution pension plans. Detailed information can be found in Notes 7 and 44.
Th e average number of Group employees in the year under review, broken down by employee group, was as follows:
| Employees | 488,518 | 464,471 |
|---|---|---|
| Trainees | 3,755 | 3,775 |
| Civil servants | 49,691 | 46,866 |
| Hourly workers and salaried employees | 435,072 | 413,830 |
| 2009 | 2010 |
Th e employees of companies acquired or disposed of during the year under review were included rateably. Calculated as fulltime equivalents, the number of employees as at 31 December 2010 amounted to 418,946 (31 December 2009: 424,686). Th e number of employees at consolidated joint ventures amounted to 1,622 on a proportionate basis (previous year: 1,589).
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Amortisation of intangible assets, excluding the impairment of goodwill |
421 | 288 |
| Depreciation of property, plant and equipment | ||
| Land and buildings | 282 | 190 |
| Technical equipment and machinery | 287 | 228 |
| Other equipment, operating and offi ce equipment, vehicle fl eet |
478 | 432 |
| Aircraft | 151 | 158 |
| Advance payments | 1 | 0 |
| 1,199 | 1,008 | |
| 1,620 | 1,296 | |
| Impairment of goodwill | 0 | 0 |
| Depreciation, amortisation and impairment losses | 1,620 | 1,296 |
Depreciation, amortisation and impairment losses declined by € 324 million year-on-year to € 1,296 million. Th e reduction is related, amongst other things, to the restructuring of the US express business in the previous year, which recognised part of the depreciation, amortisation and impairment losses prospectively.
Depreciation, amortisation and impairment losses include impairment losses of € 58 million (previous year: € 264 million). At segment level, the impairment losses on non-current assets ( excluding the impairment of goodwill) were as follows:
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| 0 | 17 | |
| Intangible assets | 0 | 4 |
| Property, plant and equipment | 0 | 13 |
| of which technical equipment and machinery | 0 | 10 |
| express | 116 | 24 |
| Intangible assets | 6 | 1 |
| Property, plant and equipment | 110 | 23 |
| of which land and buildings | 36 | 1 |
| of which aircraft | 24 | 21 |
| supply chain | 91 | 4 |
| Intangible assets | 75 | 1 |
| Property, plant and equipment | 16 | 3 |
| of which land and buildings | 6 | 2 |
| Corporate Center / Other | 57 | 13 |
| Property, plant and equipment | 57 | 13 |
| of which land and buildings | 57 | 13 |
| Impairment losses | 264 | 58 |
€ 92 million of the impairment losses in the previous year were due to the insolvency of Arcandor. A further € 23 million related to impairment losses on property, plant and equipment in the US express business and € 24 million to impairment losses on aircraft .
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Expenses from disposal of assets | 236 | 421 |
| Other business taxes | 273 | 376 |
| Travel and training costs | 308 | 323 |
| Cost of purchased cleaning, transport | ||
| and security services | 280 | 287 |
| Telecommunication costs | 236 | 249 |
| Warranty expenses, refunds and compensation payments |
290 | 228 |
| Write-downs of current assets | 328 | 217 |
| Legal costs | 97 | 207 |
| Expenses from currency translation differences | 163 | 195 |
| Consulting costs | 184 | 192 |
| Offi ce supplies | 177 | 183 |
| Advertising expenses | 82 | 164 |
| Voluntary social benefi ts | 142 | 140 |
| Entertainment and corporate hospitality expenses | 110 | 132 |
| Insurance costs | 112 | 124 |
| Other public relations expenses | 101 | 117 |
| Additions to provisions | 51 | 116 |
| Services provided by the Federal Posts and | ||
| Telecommunications Agency | 81 | 78 |
| Expenses from derivatives | 34 | 71 |
| Commissions paid | 70 | 65 |
| Expenses for public relations and customer support | 56 | 65 |
| Contributions and fees | 49 | 41 |
| Audit costs | 31 | 30 |
| Monetary transaction costs | 24 | 30 |
| Donations | 2 | 19 |
| Prior-period other operating expenses | 32 | 17 |
| Miscellaneous | 147 | 398 |
| Other operating expenses | 3,696 | 4,485 |
Th e increase in expenses attributable to asset disposals is primarily attributable to the deconsolidation losses on the sale of business activities in France, the UK and Austria; Note 2.
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 | ||
|---|---|---|
| 2009 | 2010 | |
| Net income from associates | 28 | 56 |
Investments in companies on which a signifi cant infl uence can be exercised and which are accounted for using the equity method contributed € 56 million (previous year: € 28 million) to net fi nancial income. € 52 million (previous year: € 19 million) of this amount is attributable to Deutsche Postbank AG, which has been accounted for as an associate since March 2009.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Other fi nancial income | ||
| Interest income | 106 | 52 |
| Income from other equity investments | ||
| and fi nancial assets | 2 | 7 |
| Other fi nancial income | 1,777 | 2,192 |
| 1,885 | 2,251 | |
| Other fi nance costs | ||
| Interest expenses | – 820 | –712 |
| of which on discounted provisions for pensions | ||
| and other provisions | – 439 | –362 |
| Write-downs of fi nancial assets | –33 | –102 |
| Other fi nance costs | –1,004 | – 521 |
| –1,857 | –1,335 | |
| Foreign currency result | –11 | 17 |
| Net other fi nancial income | 17 | 933 |
Net other fi nancial income was primarily impacted by the eff ects of the planned Postbank sale and includes interest expenses on the exchangeable bond (€ 125 million, previous year: € 103 million) and the cash collateral (€ 48 million, previous year: € 39 million), the result of the recognition of the forward relating to the sale of the Postbank interest amounting to € 1,653 million, as well as the gains on the measurement of the options relating to the third tranche amounting to € 89 million (previous year: € 647 million); Note 3.
Write-downs of fi nancial assets also contain impairments of € 52 million in the Corporate Center / Other unit of the equity interest in Deutsche Postbank AG due to the decline in the share price as well as a further € 16 million impairment in the MAIL segment of the equity-accounted company Unipost Servicios Generales S. L., Spain.
Net fi nancial income includes interest income of € 52 million (previous year: € 106 million) as well as interest expense of € 712 million (previous year: € 820 million). Th ese result from fi nan cial assets and liabilities that were not measured at fair value through profi t or loss.
| Income taxes | –15 | –194 |
|---|---|---|
| 269 | 268 | |
| Deferred tax income from tax loss carryforwards | 112 | 362 |
| Deferred tax expense (previous year: tax income) from temporary differences |
157 | – 94 |
| –284 | – 462 | |
| Current recoverable income tax | 40 | 5 |
| Current income tax expense | –324 | – 467 |
| 2009 | 2010 | |
| € m |
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:
| 2009 | 2010 |
|---|---|
| 276 | 2,824 |
| – 82 | – 842 |
| 304 | 27 |
| –280 | 430 |
| –77 | |
| –75 | |
| 143 | 311 |
| 27 | 32 |
| –2 | 0 |
| –15 | –194 |
| –130 5 |
Th e diff erence between the expected and the eff ective income tax expense is due 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 similar obligations. Th e remaining temporary diff erences between the carrying amounts in the IFRS fi nancial statements and in the opening tax accounts amounted to € 0.9 billion as at 31 December 2010 (previous year: € 1.0 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 extended intra-group loans were netted in the amount of € 733 million in the German and foreign eff ects from deferred tax assets not recognised on tax loss carryforwards and temporary diff erences.
€ 714 million (previous year: € 128 million) of the eff ects from deferred tax assets not recognised on tax loss carryforwards and temporary diff erences relates to the reduction of the eff ective income tax expense due to the utilisation of tax loss carryforwards and temporary diff erences for which deferred tax assets had previously not been recognised. In addition, the recognition of deferred taxes previously not recognised on tax loss carryforwards and of deductible temporary diff erences from a prior period reduced the deferred tax expense by € 399 million (previous year: € 164 million). Eff ects from unrecognised deferred tax assets amounting to € 634 million (previous year: € 648 million, write-down) were due to a valuation allowance recognised for a deferred tax asset. Other eff ects from unrecognised deferred tax assets primarily relate to loss carryforwards for which no deferred taxes were recognised.
A deferred tax asset in the amount of € 759 million (previous year: € 472 million) was recognised in the balance sheet for companies that reported a loss in the previous year as, based on tax planning, realisation of the tax asset is probable.
Tax-exempt income and non-deductible expenses mainly include the eff ect from the planned sale of Postbank.
In fi nancial year 2010, 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 expenses from German and foreign companies in the amount of € 75 million (previous year: income of € 5 million).
Th e following table presents the tax eff ects on the components of other comprehensive income:
| € m | |||
|---|---|---|---|
| Before taxes | Income taxes | After taxes | |
| 2010 | |||
| Currency translation reserve | 542 | 0 | 542 |
| Other changes in retained earnings | 1 | 0 | 1 |
| Hedging reserve in accordance with ias 39 |
42 | 2 | 44 |
| Revaluation reserve in accordance with ias 39 |
–10 | –1 | –11 |
| Revaluation reserve in accordance with ifrs 3 |
−1 | 0 | −1 |
| Share of other comprehensive income of associates |
93 | 0 | 93 |
| Other comprehensive income | 667 | 1 | 668 |
| 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 |
Th e profi t from continuing operations in fi nancial year 2010 amounted to € 2,630 million (previous year: € 261 million).
In accordance with IFRS 5, the profi t of the Deutsche Postbank Group until February 2009 was reported in the income statement under profi t from discontinued operations. Th e net income attributable to the remaining interest in the Deutsche Postbank Group has been presented in net income from associates since March 2009.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Total operating income | 1,607 | 0 |
| Total operating expenses | –1,631 | 0 |
| Loss from operating activities (ebit) | –24 | 0 |
| Net fi nance costs | –13 | 0 |
| Loss before taxes from discontinued operations | –37 | 0 |
| Attributable tax income | 25 | 0 |
| Loss after taxes from discontinued operations | –12 | 0 |
| Deconsolidation effects | 444 | 0 |
| Profi t from discontinued operations | 432 | 0 |
In fi nancial year 2010, the Group generated a consolidated net profi t for the period of € 2,630 million (previous year: € 693 million). Of this fi gure, € 2,541 million (previous year: € 644 million) was attributable to Deutsche Post AG shareholders.
Th e net profi t attributable to non-controlling interest holders increased by € 40 million to € 89 million.
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 2010 were € 2.10 (previous year: € 0.53).
| 2009 | 2010 | ||
|---|---|---|---|
| Consolidated net profi t attributable to Deutsche Post ag shareholders |
€ m | 644 | 2,541 |
| Weighted average number of shares outstanding |
number | 1,209,015,874 | 1,208,951,725 |
| Basic earnings per share | € | 0.53 | 2.10 |
| of which from continuing operations | € | 0.17 | 2.10 |
| of which from discontinued operations | € | 0.36 | 0.00 |
To compute diluted earnings per share, the average number of shares outstanding is adjusted for the number of all potentially dilutive shares. Executives were entitled to 2,636,387 rights to shares as at the reporting date.
Diluted earnings per share
| 2009 | 2010 | ||
|---|---|---|---|
| Consolidated net profi t attributable | |||
| to Deutsche Post ag shareholders | € m | 644 | 2,541 |
| Weighted average number of shares | |||
| outstanding | number | 1,209,015,874 | 1,208,951,725 |
| Potentially dilutive shares | number | 0 | 492,990 |
| Weighted average number of shares | |||
| for diluted earnings | number | 1,209,015,874 | 1,209,444,715 |
| Diluted earnings per share | € | 0.53 | 2.10 |
| of which from continuing operations | € | 0.17 | 2.10 |
| of which from discontinued operations | € | 0.36 | 0.00 |
A dividend per share of € 0.65 is being proposed for fi nancial year 2010. Based on the 1,209,015,874 shares recorded in the commercial register as at 31 December 2010, this corresponds to a dividend distribution of € 786 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.
26.1 Overview
| € m | Advance | ||||||
|---|---|---|---|---|---|---|---|
| Internally | Other | payments and | |||||
| generated | purchased | intangible | |||||
| intangible assets |
Purchased brand names |
Purchased customer lists |
intangible assets |
Goodwill | assets under development |
Total | |
| Cost | |||||||
| Balance at 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 | –19 | –301 |
| Currency translation differences | –1 | 36 | 20 | 12 | 93 | 1 | 161 |
| Balance at 31 December 2009 / 1 January 2010 | 1,033 | 446 | 805 | 1,417 | 11,291 | 96 | 15,088 |
| Additions to consolidated group | 0 | 0 | 0 | 0 | 20 | 0 | 20 |
| Additions | 103 | 0 | 0 | 62 | 4 | 40 | 209 |
| Reclassifi cations | –20 | 0 | 0 | 37 | 0 | –26 | – 9 |
| Disposals | – 41 | 0 | 0 | –170 | –11 | –20 | –242 |
| Currency translation differences | 12 | 16 | 54 | 37 | 455 | 2 | 576 |
| Balance at 31 December 2010 | 1,087 | 462 | 859 | 1,383 | 11,759 | 92 | 15,642 |
| Amortisation and impairment losses | |||||||
| Balance at 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 | – 4 | –235 |
| Currency translation differences | –2 | 34 | 4 | 5 | 40 | 0 | 81 |
| Balance at 31 December 2009 / 1 January 2010 | 711 | 416 | 305 | 1,042 | 1,048 | 32 | 3,554 |
| Additions to consolidated group | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Amortisation | 92 | 1 | 70 | 119 | 0 | 0 | 282 |
| Impairment losses | 0 | 0 | 0 | 6 | 0 | 0 | 6 |
| Reclassifi cations | – 4 | 0 | 0 | – 5 | 0 | –1 | –10 |
| Reversal of impairment losses | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Disposals | –35 | 0 | 0 | –122 | 0 | 0 | –157 |
| Currency translation differences | 11 | 15 | 21 | 25 | 45 | 2 | 119 |
| Balance at 31 December 2010 | 775 | 432 | 396 | 1,065 | 1,093 | 33 | 3,794 |
| Carrying amount at 31 December 2010 | 312 | 30 | 463 | 318 | 10,666 | 59 | 11,848 |
| Carrying amount at 31 December 2009 | 322 | 30 | 500 | 375 | 10,243 | 64 | 11,534 |
In the advance payments and intangible assets under development column, the prior-year fi gures for disposals in the cost and the amortisation and impairment losses sections were adjusted by € 90 million each. Th is did not aff ect the carrying amounts.
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 | ||
|---|---|---|
| 2009 | 2010 | |
| Total goodwill1) | 10,243 | 10,666 |
| mail National | 75 | 94 |
| mail International | 552 | 568 |
| express | 4,130 | 4,158 |
| global forwarding, freight | ||
| dhl Global Forwarding | 3,451 | 3,723 |
| dhl Freight | 265 | 268 |
| supply chain | ||
| dhl Supply Chain | 1,581 | 1,647 |
| Williams Lea | 303 | 322 |
1) Goodwill from reconciliation amounts to €–114 million (previous year: €–114 million).
Th e structure of the cash generating units (CGU s) was not changed compared with the previous year, although the prior-year fi gures were adjusted to take account of intra-group reorganisations. 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 2011 to 2013. It is supplemented by a perpetual annuity representing the value added from 2014 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, amongst other things, expectations regarding industry growth for the CGU s. 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 s and the growth rates assumed in each case for the perpetual annuity are shown in the following table:
| % | Discount rates | Growth rates | |||
|---|---|---|---|---|---|
| 2009 | 2010 | 2009 | 2010 | ||
| supply chain | |||||
| dhl Supply Chain | 10.7 | 9.5 | 2.5 | 2.5 | |
| Williams Lea | 11.6 | 9.7 | 2.0 | 2.0 | |
| global forwarding, freight | |||||
| dhl Freight | 10.8 | 9.6 | 2.0 | 2.0 | |
| dhl Global Forwarding | 10.7 | 9.5 | 2.5 | 2.5 | |
| mail National | 11.2 | 9.2 | 0.0 | 0.0 | |
| mail International | 10.7 | 8.8 | 1.0 | 1.0 | |
| express | 10.7 | 10.6 | 2.0 | 2.0 |
On the basis of these assumptions and the impairment tests carried out for the individual CGU s to which goodwill was allocated, it was established that the recoverable amounts for all CGU s exceed their carrying amounts. No impairment losses were recognised on goodwill in any of the CGU s as at 31 December 2010.
| € m | Technical | Other equip | Advance | ||||
|---|---|---|---|---|---|---|---|
| equip | ment, offi ce | Vehicle fl eet | payments and | ||||
| Land and | ment and | and operating | and transport | assets under | |||
| buildings | machinery | equipment | Aircraft | equipment | development | Total | |
| Cost | |||||||
| Balance at 1 January 2009 | 4,849 | 4,181 | 2,398 | 1,436 | 1,949 | 296 | 15,109 |
| 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 / 1 January 2010 | 4,677 | 4,197 | 2,389 | 1,612 | 1,921 | 130 | 14,926 |
| Additions to consolidated group | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Additions | 76 | 266 | 157 | 68 | 212 | 279 | 1,058 |
| Reclassifi cations | 9 | 61 | 26 | 59 | 7 | –164 | –2 |
| Disposals | –281 | –222 | –188 | –316 | –207 | –15 | –1,229 |
| Currency translation differences | 132 | 114 | 97 | 10 | 36 | 4 | 393 |
| Balance at 31 December 2010 | 4,613 | 4,416 | 2,481 | 1,433 | 1,969 | 234 | 15,146 |
| Depreciation and impairment losses | |||||||
| Balance at 1 January 2009 | 1,933 | 3,157 | 1,739 | 623 | 989 | – 8 | 8,433 |
| 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 January 2010 | 1,992 | 3,227 | 1,754 | 689 | 1,061 | –17 | 8,706 |
| Additions to consolidated group | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 173 | 216 | 225 | 137 | 204 | 0 | 955 |
| Impairment losses | 17 | 12 | 2 | 21 | 1 | 0 | 53 |
| Reclassifi cations | –10 | 7 | 1 | 0 | 0 | 11 | 9 |
| Reversal of impairment losses | –3 | 0 | –1 | –3 | 0 | 0 | –7 |
| Disposals | –156 | –189 | –162 | –276 | –178 | 11 | – 950 |
| Currency translation differences | 73 | 76 | 76 | 4 | 21 | 0 | 250 |
| Balance at 31 December 2010 | 2,086 | 3,349 | 1,895 | 572 | 1,109 | 5 | 9,016 |
| Carrying amount at 31 December 2010 | 2,527 | 1,067 | 586 | 861 | 860 | 229 | 6,130 |
| Carrying amount at 31 December 2009 | 2,685 | 970 | 635 | 923 | 860 | 147 | 6,220 |
In the vehicle fl eet and transport equipment column, the cumulative acquisition costs and depreciation and impairment losses from an intra-group transfer of assets in 2005 were each adjusted by € 553 million. Th is did not aff ect the carrying amounts or the income statement. Th e prior-year fi gures were adjusted accordingly.
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:
Th e corresponding liabilities from fi nance leases are included under fi nancial liabilities; see Note 46.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Cost | ||
| As at 1 January | 45 | 45 |
| Reclassifi cations | 0 | 10 |
| Disposals | 0 | –3 |
| Currency translation differences | 0 | 1 |
| As at 31 December | 45 | 53 |
| Depreciation | ||
| As at 1 January | 13 | 13 |
| Reclassifi cations | 0 | 3 |
| As at 31 December | 13 | 16 |
| Carrying amount as at 31 December | 32 | 37 |
Rental income for this property amounted to € 1 million (previous year: € 1 million), while the related expenses amounted to € 2 million (previous year: € 1 million). Th e fair value amounted to € 77 million, as in the previous year.
Investments in associates developed as follows:
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| As at 1 January | 61 | 1,772 |
| Additions | 1,561 | 0 |
| Changes in Group's share of equity | ||
| Changes recognised in profi t or loss | 28 | 56 |
| Profi t distributions | –1 | – 4 |
| Changes recognised in other comprehensive income | 123 | 93 |
| Impairment losses | 0 | – 69 |
| Elimination of intercompany profi ts and losses | 0 | –1 |
| Carrying amount as at 31 December | 1,772 | 1,847 |
Since March 2009, the 39.5 % interest in the Deutsche Postbank Group 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 %).
| € m | ||
|---|---|---|
| 31 Dec. 2009 | 30 Sept. 2010 | |
| Assets | 226,609 | 231,457 |
| Liabilities | 221,358 | 225,739 |
| Income from banking transactions2) | 9,103 | 6,235 |
| Consolidated net profi t | 76 | 218 |
1) Deutsche Postbank ag's figures are based on the last published interim financial statements as at 30 September 2010 and the last published consolidated financial statements as at 31 December 2009 because no audited consolidated fi nancial statements of Deutsche Postbank ag for the year ending 31 December 2010 were available at the time when Deutsche Post ag's consolidated fi nancial statements were prepared.
2) 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 € 1,797 million as at 31 December 2010 (previous year: € 1,977 million), based on the price of € 20.80 per share (previous year: € 22.88). Th e carrying amount of Deutsche Postbank AG's equity investment was reduced by € 52 million due to the lower share price; see Note 18.
As at 31 December 2010, 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 planned sale of the interest in Postbank; see Notes 2, 3 and 50.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Available-for-sale fi nancial assets | 150 | 142 |
| Loans and receivables | 414 | 468 |
| Assets at fair value through profi t or loss | 805 | 2,531 |
| Held-to-maturity fi nancial assets | 27 | 5 |
| Lease receivables | 52 | 47 |
| Non-current fi nancial assets | 1,448 | 3,193 |
Th e increase in non-current fi nancial assets was mainly due to the initial recognition of the forward transaction as from January 2010; see Note 3.
Th e assets at fair value through profi t or loss mainly consist of a put option related to the planned 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 non-current fi nancial assets amounting to € 13 million (previous year: € 33 million) were recognised in the income statement because the assets were impaired. A large proportion (€ 10 million; previous year: € 6 million) of this amount is attributable to assets at fair value through profi t or loss and € 3 million (previous year: € 1 million) to available-for-sale fi nancial assets.
Compared with the market rates of interest prevailing at 31 December 2010 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 € 16 million (previous year: € 21 million). Th e principal amount of these loans totals € 22 million (previous year: € 23 million).
Details on restraints on disposal are contained in Note 50.2 (Collateral).
| Other non-current assets | 348 | 465 |
|---|---|---|
| Miscellaneous | 60 | 90 |
| Pension assets | 288 | 375 |
| 2009 | 2010 | |
| € m |
Further information on pension assets can be found in Note 44.
| € m | 2009 | 2010 | ||
|---|---|---|---|---|
| Assets Liabilities | Assets Liabilities | |||
| Intangible assets | 57 | 295 | 39 | 210 |
| Property, plant and equipment | 90 | 32 | 85 | 43 |
| Non-current fi nancial assets | 3 | 0 | 13 | 71 |
| Other non-current assets | 33 | 36 | 4 | 50 |
| Other current assets | 33 | 41 | 33 | 18 |
| Provisions | 211 | 14 | 196 | 12 |
| Financial liabilities | 412 | 97 | 332 | 61 |
| Other liabilities | 67 | 47 | 54 | 32 |
| Tax loss carryforwards | 142 | – | 499 | – |
| Gross amount | 1,048 | 562 | 1,255 | 497 |
| Netting | –380 | –380 | –282 | –282 |
| Carrying amount | 668 | 182 | 973 | 215 |
€ 387 million (previous year: € 85 million) of the deferred taxes on tax loss carryforwards relates to tax loss carryforwards in Germany and € 112 million (previous year: € 57 million) to foreign tax loss carryforwards.
No deferred tax assets were recognised for tax loss carryforwards of around € 13.3 billion (previous year: € 16.6 billion) and for temporary diff erences of around € 2,724 million (previous year: € 3,208 million), as it can be assumed that the Group will probably not be able to use these tax loss carryforwards and temporary diff erences 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 2026.
Deferred taxes have not been recognised for temporary differences of € 375 million (previous year: € 464 million) relating to earnings of German and foreign subsidiaries because these temporary diff erences will probably not reverse in the foreseeable future.
| € m | |||
|---|---|---|---|
| Short-term | Long-term | Total | |
| 2010 | |||
| Deferred tax assets | 133 | 840 | 973 |
| Deferred tax liabilities | 42 | 173 | 215 |
| 2009 | |||
| Deferred tax assets | 120 | 548 | 668 |
| Deferred tax liabilities | 30 | 152 | 182 |
Standard costs for inventories of postage stamps and spare parts in freight centres amounted to € 13 million (previous year: € 13 million). Th ere was no requirement to charge signifi cant valuation allowances on these inventories.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Raw materials, consumables and supplies | 156 | 161 |
| Finished goods and goods purchased and held | ||
| for resale | 47 | 44 |
| Work in progress | 15 | 13 |
| Spare parts for aircraft | 7 | 5 |
| Advance payments | 1 | 0 |
| Inventories | 226 | 223 |
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Income tax assets | 196 | 223 |
| Income tax liabilities | 292 | 463 |
All income tax assets and liabilities are current and have maturities of less than one year.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Trade receivables | 4,881 | 6,011 |
| Prepaid expenses | 620 | 683 |
| Deferred revenue | 472 | 508 |
| Current tax receivables | 386 | 490 |
| Income from cost absorption | 65 | 83 |
| Creditors with debit balances | 52 | 37 |
| Receivables from Group companies | 28 | 35 |
| Receivables from employees | 26 | 31 |
| Receivables from insurance business | 15 | 20 |
| Receivables from loss compensation (recourse claims) | 19 | 19 |
| Receivables from sale of assets | 44 | 17 |
| Receivables from Bundes-Pensions-Service für Post | ||
| und Telekommunikation e. V. | 0 | 14 |
| Receivables from cash-on-delivery | 18 | 13 |
| Receivables from private postal agencies | 9 | 8 |
| Miscellaneous other assets | 522 | 672 |
| Receivables and other current assets | 7,157 | 8,641 |
Of the tax receivables, € 388 million (previous year: € 307 million) relates to VAT, € 66 million (previous year: € 34 million) to customs and duties, and € 36 million (previous year: € 45 million) to other tax receivables. Miscellaneous other assets include a large number of individual items.
Th e amounts reported under these items mainly relate to the following:
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Available-for-sale fi nancial assets | 1,618 | 420 |
| Loans and receivables | 196 | 150 |
| Held-to-maturity fi nancial assets | 1 | 0 |
| Financial assets at fair value through profi t or loss | 31 | 38 |
| Lease receivables | 48 | 47 |
| Current fi nancial assets | 1,894 | 655 |
Of the available-for-sale fi nancial assets, € 407 million (previous year: € 1,605 million) was measured at fair value. Details on restraints on disposal are contained in Note 50.2 (Collateral).
| Cash and cash equivalents | 3,064 | 3,415 |
|---|---|---|
| Other cash and cash equivalents | 138 | 144 |
| Cash | 19 | 28 |
| Money in transit | 313 | 350 |
| Bank balances | 612 | 837 |
| Cash equivalents | 1,982 | 2,056 |
| 2009 | 2010 | |
| € m |
| € m | Assets | |||
|---|---|---|---|---|
| 2009 | 2010 | 2009 | 2010 | |
| Deutsche Post ag – real estate | 18 | 71 | 0 | 0 |
| Deutsche Post Immobilienentwicklung Grundstücksgesellschaft mbH & Co. Logistikzentren kg, Germany – real estate | 0 | 25 | 0 | 0 |
| us Express Aviation, usa – aircraft | 17 | 12 | 0 | 0 |
| dhl Excel Supply Chain Euskal-Log s. l. u., Spain – building | 16 | 0 | 0 | 0 |
| dhl Express (France) sas, France | 70 | 0 | 98 | 0 |
| dhl Express (uk) Ltd., uk | 51 | 0 | 51 | 0 |
| Other | 7 | 5 | 1 | 0 |
| Assets held for sale and liabilities associated with assets held for sale | 179 | 113 | 150 | 0 |
Deutsche Post Immobilienentwicklung Grundstücksgesellschaft , Germany, plans to sell four properties. Th ese properties were therefore reclassifi ed from property, plant and equipment to assets held for sale. Th e most recent appraisal prior to reclassifi cation resulted in an impairment loss of € 13 million.
Surplus aircraft capacity that was no longer required following the restructuring of US Express Aviation was also classifi ed in accordance with IFRS 5.
Th e sale of the building in Spain was not completed. Th e property was reclassifi ed to non-current assets.
Th e planned sale of the day-defi nite domestic business of DHL Express (UK) Ltd., UK, and DHL Express (France) SAS, France, was classifi ed in accordance with IFRS 5 in the previous year. Th e most recent measurement of the non-current assets before their reclassifi cation to current assets in accordance with IFRS 5 resulted in an impairment loss of € 32 million each at the two companies. Following the reclassifi cation, further adjustments to fair value less costs to sell were made at DHL Express UK in the amount of € 16 million.
| € m | dhl Express | dhl Express |
|---|---|---|
| uk | France | |
| assets | ||
| Non-current assets | 0 | 2 |
| Inventories | 1 | 0 |
| Receivables and other current assets | 50 | 62 |
| Cash and cash equivalents | 0 | 6 |
| Total assets | 51 | 70 |
| liabilities | ||
| Non-current provisions | 6 | 8 |
| Current provisions | 11 | 14 |
| Current fi nancial liabilities | 0 | 6 |
| Current liabilities | 34 | 70 |
| Total liabilities | 51 | 98 |
Th e following table shows the expenses attributable to DHL Express UK recognised in other comprehensive income:
| € m | Equity attributable to Deutsche Post ag shareholders |
Non controlling interests |
Total equity |
|---|---|---|---|
| 2009 | |||
| Currency translation reserve | –14 | 0 | –14 |
Th e sales of the two companies' business units were completed in fi nancial year 2010; see Note 2.
KfW Bankengruppe (KfW), see Note 55.1, holds 30.5 % of Deutsche Post AG's share capital. Th e proportion of free fl oat 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 |
| 2009 | 2010 | |
| number of shares |
Th e issued capital was € 1,209 million. It is composed of 1,209,015,874 no-par value registered shares (ordinary shares) with a notional interest in the share capital of € 1 per share and is fully paid up.
| € | ||
|---|---|---|
| 2009 | 2010 | |
| As at 1 January | 1,209,015,874 | 1,209,015,874 |
| Purchase of treasury shares | 0 | –769,794 |
| Treasury shares issued | 0 | 769,794 |
| As at 31 December | 1,209,015,874 | 1,209,015,874 |
In the fi rst quarter of 2010, Deutsche Post AG acquired 769,794 shares at a total price of € 10 million, including trans action costs, under the authorisation issued on 21 April 2009 to settle entitlements due under the new bonus programme for executives introduced in fi nancial year 2009 (Share Matching Scheme). Consequently, issued capital was reduced by the notional value of the shares purchased. Th e average purchase price per share was € 12.96. Th e notional value of the treasury shares is deducted from issued capital and the diff erence between the notional value and the reported value of the treasury shares is deducted from retained earnings. Issued capital increased again, by € 769,794, when 769,794 shares were issued to executives in April 2010. Changes in treasury shares are presented in the statement of changes in equity.
| Amount (€m) | Purpose | |
|---|---|---|
| Authorised Capital 2009 | 240 | Increase in share capital against cash / non-cash contri butions (until 20 April 2014) |
| Contingent Capital iii | 56 | Issue of option / conversion rights (7 May 2012) |
By way of a resolution adopted by the Annual General Meeting on 28 April 2010, the company is authorised to acquire own shares in the period to 27 April 2015 of up to 10 % of the share capital existing when the resolution was adopted. Th e authorisation permits the Board of Management to exercise it for every purpose permitted by law, and in particular to pursue the goals mentioned in the resolution by the Annual General Meeting. In addition, the Board of Management has been authorised to acquire own shares using derivatives. As at the reporting date in the previous year, Deutsche Post AG did not hold any own shares on 31 December 2010.
Th e equity ratio was 28.3 % in fi nancial year 2010 (previous year: 23.8 %). Th e company's capital is monitored using the net gearing ratio which is defi ned as net debt divided by the total of equity and net debt. Th e ratio in 2010 was –14.8 % (previous year: –25.7 %).
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Aggregate fi nancial liabilities | 7,439 | 7,022 |
| Less cash and cash equivalents | –3,064 | –3,415 |
| Less current fi nancial assets | –1,894 | – 655 |
| Less long-term deposits | –120 | –120 |
| Less long-term derivative fi nancial instruments | – 805 | –2,531 |
| Less fi nancial liabilities to non-controlling | ||
| interest holders of Williams Lea | –23 | –28 |
| Less mandatory exchangeable bond | –2,670 | –2,796 |
| Less cash collateral | –1,200 | –1,248 |
| Plus net effect from derivatives measurement | ||
| in the context of the planned Postbank sale | 647 | 2,389 |
| Net debt (+) / net liquidity (–) | –1,690 | –1,382 |
| Plus total equity | 8,273 | 10,696 |
| Total equity and net debt | 6,583 | 9,314 |
| Net gearing ratio in % | –25.7 | –14.8 |
€ m
| Other reserves | 869 | 1,535 |
|---|---|---|
| Currency translation reserve | –1,215 | – 682 |
| Revaluation reserve in accordance with ifrs 3 | 7 | 6 |
| Hedging reserve in accordance with ias 39 | –77 | –33 |
| Revaluation reserve in accordance with ias 39 | 7 | 86 |
| Capital reserves | 2,147 | 2,158 |
| 2009 | 2010 |
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Capital reserves as at 1 January | 2,142 | 2,147 |
| Additions | ||
| Issue of rights under 2009 Share Matching Scheme | 5 | 6 |
| Issue of rights under 2010 Share Matching Scheme | 0 | 14 |
| Exercise of rights under 2009 Share Matching Scheme | 0 | – 9 |
| Capital reserves as at 31 December | 2,147 | 2,158 |
A new system to grant variable remuneration components for some of the Group's executives was introduced in the previous year. In the period up to 31 December 2010, an amount of € 20 million (31 December 2009: € 5 million) was transferred to the capital reserves for the 2009 and 2010 tranches of the Share Matching Scheme. Exercise of the rights to shares in April 2010 reduced the capital reserves by € 9 million due to the corresponding issuance of treasury shares to the executives.
Th e revaluation reserve comprises gains and losses from changes in the fair value of available-for-sale fi nancial assets that have been recognised in other comprehensive income. Th is reserve is reversed to profi t or loss either when the assets are sold or otherwise disposed of, or if the fair value of the assets falls permanently below their cost.
| Revaluation reserve as at 31 December after tax | 7 | 86 |
|---|---|---|
| Deferred taxes | 0 | –1 |
| Revaluation reserve as at 31 December before tax | 7 | 87 |
| Realised gains / losses | –351 | –16 |
| Share of associates | 130 | 90 |
| Unrealised gains / losses | 455 | 5 |
| Currency translation differences | – 5 | 1 |
| As at 1 January | –222 | 7 |
| 2009 | 2010 | |
| € m |
Th e hedging reserve is adjusted by the eff ective portion of a cash fl ow hedge. Th e hedging reserve is released to profi t or loss when the hedged item is settled.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| As at 1 January | –32 | –78 |
| Additions | –1 | – 67 |
| Disposals in balance sheet (basis adjustment) | 4 | 0 |
| Disposals in income statement | – 49 | 109 |
| Hedging reserve as at 31 December before tax | –78 | –36 |
| Deferred taxes | 1 | 3 |
| Hedging reserve as at 31 December after tax | –77 | –33 |
Th e change in the hedging reserve is mainly the result of the recognition of previously unrealised gains and losses from hedging future operating currency transactions. In the fi nancial year, unrealised losses totalling € 12 million from the hedging reserve were recognised in operating profi t under other operating expenses (previous year: unrealised gains of €–54 million were recognised in other operating income); unrealised losses of € 97 million (previous year: € 5 million) were recognised in net fi nancial income. In the past fi nancial year, there were no adjusting entries for hedging transactions related to the acquisition of non-current non- fi nancial assets (previous year: € 4 million). Deferred taxes have been recognised in respect of the hedging reserve.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| As at 1 January | 8 | 7 |
| Changes recognised in other comprehensive income | –1 | –1 |
| Revaluation reserve in accordance with ifrs 3 | ||
| as at 31 December | 7 | 6 |
Th e revaluation reserve in accordance with IFRS 3 includes the hidden reserves of DHL Logistics Co. Ltd., China (formerly Exel Sinotrans Freight Forwarding Co. Ltd.) from purchase price allocation. Th ese are attributable to the customer relationships contained in the 50 % interest previously held and to adjustments to deferred taxes.
Th e currency translation reserve includes the translation gains and losses from the consolidation of the subsidiaries reporting in foreign currency.
| Currency translation reserve as at 31 December | –1,215 | – 682 |
|---|---|---|
| Changes recognised in other comprehensive income | 151 | 513 |
| Changes recognised in profi t or loss | 31 | 20 |
| As at 1 January | –1,397 | –1,215 |
| 2009 | 2010 | |
| € 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.
| Retained earnings as at 31 December | 6,098 | 7,767 |
|---|---|---|
| Miscellaneous other changes | 1 | 0 |
| Transactions with non-controlling interests | 0 | –147 |
| Consolidated net profi t for the period | 644 | 2,541 |
| Dividend payment | –725 | –725 |
| As at 1 January | 6,178 | 6,098 |
| 2009 | 2010 | |
| € m |
As a result of the discontinuation of Express USA's domestic business, the shares held by other shareholders in ASTAR Air Cargo Holdings, LLC, which had previously already been fully consolidated as a special purpose entity, were purchased in November 2010. € 72 million was paid out in cash and other assets, mainly aircraft , in return for the shares. € 1 million in further transaction costs was added to this. Th is transaction was accounted for as a transaction between equity holders in accordance with IAS 27. Retained earnings include the reserve for treasury shares, which changed as follows:
| 31 December | 0 | –1 |
|---|---|---|
| Treasury shares issued | 0 | 8 |
| Treasury shares acquired | 0 | – 9 |
| 1 January | 0 | 0 |
| 2009 | 2010 | |
| € m |
Changes in treasury shares are presented in the statement of changes in equity.
Th e equity attributable to Deutsche Post AG shareholders in fi nancial year 2010 amounted to € 10,511 million (previous year: € 8,176 million).
Dividends paid to the shareholders of Deutsche Post AG are based on the net retained profi t of € 1,502 million reported in Deutsche Post AG's annual fi nancial statements in accordance with the Handelsgesetzbuch (HGB – German commercial code). Th e amount of € 716 million remaining aft er deduction of the planned total dividend of € 786 million (which corresponds to € 0.65 per share) will be carried forward.
In fi nancial year 2010, a dividend of € 725 million was paid for 2009. In the previous year, dividend payments for 2008 also amounted to € 725 million. Th is corresponds to a dividend per share of € 0.60 in both years. Th e dividend is tax-exempt for shareholders resident in Germany. No capital gains tax (investment income tax) will be withheld on the distribution.
Th is balance sheet item 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:
| Non-controlling interests | 97 | 185 |
|---|---|---|
| Other companies | –1 | 47 |
| Tradeteam Limited, uk | 16 | 18 |
| Blue Dart Express Limited, India | 14 | 18 |
| Lemuir Logistics Private Limited, India | 15 | 18 |
| dhl Sinotrans International Air Courier Ltd., China | 53 | 84 |
| 2009 | 2010 | |
| € m |
Th e information below on pension obligations is broken down into the following areas: Germany, UK and Other.
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 31 December 2010 | ||||
| Provisions for pensions and similar obligations | 4,150 | 157 | 206 | 4,513 |
| Pension assets | 0 | 196 | 179 | 375 |
| Net pension provisions | 4,150 | –39 | 27 | 4,138 |
| 31 December 2009 | ||||
| Provisions for pensions and similar obligations | 4,204 | 187 | 183 | 4,574 |
| Pension assets | 0 | 128 | 160 | 288 |
| Net pension provisions | 4,204 | 59 | 23 | 4,286 |
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 USA. 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 2010 | |||||
| Discount rate | 5.00 | 5.50 | 5.00 | 2.75 | 5.50 |
| Future salary increase | 2.50 | 3.44 | 2.57 | 3.00 | – |
| Future infl ation rate | 2.00 | 3.00 | 2.00 | 1.50 | – |
| 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 | – |
For the German Group companies, life expectancy was calculated using the Richttafeln 2005 G mortality tables published by Klaus Heubeck. Life expectancy for the British pension plans was based on the mortality rates used for the last funding valuation. Th ese are based on plan-specifi c mortality analyses 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 expense for the period:
| % | Germany | uk | Other euro zone |
Switzerland | United States |
|---|---|---|---|---|---|
| 31 December 2010 | |||||
| Average expected return on plan assets | 4.15 | 6.25 | 5.69 | 4.25 | 7.00 |
| 31 December 2009 | |||||
| Average expected return on plan assets | 4.22 | 6.74 | 6.20 | 4.25 | 7.50 |
Th e average expected return on plan assets was determined by reference to long-term bond yields (government and corporate). In this process, suitable risk premiums were applied on the basis of historical market returns and current market expectations taking plan asset structures into account.
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 2010 | ||||
| Present value of total defi ned benefi t obligations at 31 December for wholly or partly funded benefi ts | 4,003 | 3,294 | 1,589 | 8,886 |
| Present value of defi ned benefi t obligations at 31 December for unfunded benefi ts | 3,272 | 8 | 183 | 3,463 |
| Present value of total defi ned benefi t obligations at 31 December | 7,275 | 3,302 | 1,772 | 12,349 |
| Fair value of plan assets at 31 December | –2,122 | –3,378 | –1,519 | –7,019 |
| Unrecognised gains (+) / losses (–) | –1,003 | 36 | –232 | –1,199 |
| Unrecognised past service cost | 0 | 0 | 0 | 0 |
| Asset adjustment for asset ceiling | 0 | 1 | 6 | 7 |
| Net pension provisions at 31 December | 4,150 | –39 | 27 | 4,138 |
| Pension assets at 31 December | 0 | 196 | 179 | 375 |
| Provisions for pensions and similar obligations at 31 December | 4,150 | 157 | 206 | 4,513 |
| 2009 | ||||
| Present value of total 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 ceiling | 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 similar obligations at 31 December | 4,204 | 187 | 183 | 4,574 |
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 2010 | ||||
| Present value of total defi ned benefi t obligations at 1 January | 7,130 | 3,004 | 1,530 | 11,664 |
| Current service cost, excluding employee contributions | 76 | 31 | 35 | 142 |
| Employee contributions | 8 | 17 | 15 | 40 |
| Interest cost | 366 | 178 | 73 | 617 |
| Benefi t payments | – 487 | –166 | – 90 | –743 |
| Past service cost | 13 | 1 | –3 | 11 |
| Curtailments | 0 | – 5 | –2 | –7 |
| Settlements | 0 | 0 | –1 | –1 |
| Transfers | 4 | 3 | 0 | 7 |
| Acquisitions / divestitures | 3 | 0 | –2 | 1 |
| Actuarial gains (–) / losses (+) | 162 | 137 | 106 | 405 |
| Currency translation effects | 0 | 102 | 111 | 213 |
| Present value of total defi ned benefi t obligations at 31 December | 7,275 | 3,302 | 1,772 | 12,349 |
| 2009 | ||||
| Present value of total 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 |
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 2010 | ||||
| Fair value of plan assets at 1 January | 2,073 | 3,060 | 1,339 | 6,472 |
| Employer contributions | 169 | 106 | 31 | 306 |
| Employee contributions | 0 | 4 | 15 | 19 |
| Expected return on plan assets | 88 | 207 | 79 | 374 |
| Gains (+) / losses (–) on plan assets | 1 | 59 | 41 | 101 |
| Benefi t payments | –209 | –165 | –77 | – 451 |
| Transfers | –1 | 3 | 0 | 2 |
| Acquisitions | 1 | 0 | 0 | 1 |
| Settlements | 0 | 0 | –1 | –1 |
| Currency translation effects | 0 | 104 | 92 | 196 |
| Fair value of plan assets at 31 December | 2,122 | 3,378 | 1,519 | 7,019 |
| 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 |
Th e plan assets are composed of fi xed-income securities (42 %; previous year: 37 %), equities and investment funds (30 %; previous year: 29 %), real estate (19 %; previous year: 20 %), cash and cash equivalents (4 %; previous year: 11 %), insurance contracts (4 %; previous year: 1 %) and other assets (1 %; previous year: 2 %).
79 % (previous year: 83 %) of the real estate has a fair value of € 1,043 million (previous year: € 1,050 million) and is owneroccupied by Deutsche Post AG.
| € m | 2006 Total |
2007 Total |
2008 Total |
2009 Total |
2010 Total |
|---|---|---|---|---|---|
| Present value of defi ned benefi t obligations at 31 December |
15,205 | 13,529 | 12,246 | 11,664 | 12,349 |
| Fair value of plan assets at 31 December |
–7,784 | –7,772 | – 6,235 | – 6,472 | –7,019 |
| Funded status1) | 7,421 | 5,757 | 6,011 | 5,192 | 5,330 |
1) Until fi nancial year 2008, the funded status is recognised with the amounts of Deutsche Postbank Group included.
| € m | 2006 | 2007 | 2008 | 2009 | 2010 |
|---|---|---|---|---|---|
| Total | Total | Total | Total | Total | |
| Actual return on plan assets | 448 | 473 | – 632 | 509 | 475 |
| Expected return on plan assets | 391 | 439 | 415 | 335 | 374 |
| Experience gains (+) / losses (–) | |||||
| on plan assets1) | 57 | 34 | –1,047 | 174 | 101 |
1) Until fi nancial year 2008, the experience gains and losses are recognised with the amounts of Deutsche Postbank Group included.
| € m | 2006 Total |
2007 Total |
2008 Total |
2009 Total |
2010 Total |
|---|---|---|---|---|---|
| Experience gains (+) / losses (–) on defi ned benefi t obligations |
–226 | 116 | 11 | 61 | 50 |
| Gains (+) / losses (–) on defi ned benefi t obligations arising from changes in assumptions |
488 | 1,298 | 635 | – 561 | – 455 |
| Total actuarial gains (+) / losses (–) on defi ned benefi t obligations1) |
262 | 1,414 | 646 | – 500 | – 405 |
1) 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 | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 2010 | ||||
| Net pension provisions at 1 January | 4,204 | 59 | 23 | 4,286 |
| Pension expense | 378 | –7 | 41 | 412 |
| Benefi t payments | –278 | –1 | –13 | –292 |
| Employer contributions | –169 | –106 | –31 | –306 |
| Employee contributions | 8 | 13 | 0 | 21 |
| Acquisitions / divestitures | 2 | 0 | –2 | 0 |
| Transfers | 5 | 0 | –2 | 3 |
| Currency translation effects | 0 | 3 | 11 | 14 |
| Net pension provisions at 31 December | 4,150 | –39 | 27 | 4,138 |
| 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 |
Payments amounting to € 608 million are expected with regard to net pension provisions in 2011. Of this amount, € 284 million is attributable to the Group's expected direct pension payments and € 324 million to expected employer contributions to pension funds.
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 2010 | ||||
| Current service cost, excluding employee contributions | 76 | 31 | 35 | 142 |
| Interest cost | 366 | 178 | 73 | 617 |
| Expected return on plan assets | – 88 | –207 | –79 | –374 |
| Recognised past service cost | 14 | 1 | –3 | 12 |
| Amortisation of unrealised gains (–) / losses (+) | 10 | – 4 | 26 | 32 |
| Effects of curtailments | 0 | – 6 | –2 | – 8 |
| Effects of settlements | 0 | 0 | 0 | 0 |
| Effects of asset ceiling | 0 | 0 | – 9 | – 9 |
| Pension expense | 378 | –7 | 41 | 412 |
| 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 |
| Amortisation of unrealised gains (–) / losses (+) | –2 | 0 | –3 | – 5 |
| Effects of curtailments | 0 | 0 | –20 | –20 |
| Effects of settlements | 0 | 0 | 0 | 0 |
| Effects of asset ceiling | 0 | 0 | 13 | 13 |
| Pension expense | 381 | 40 | 40 | 461 |
€ 169 million (previous year: € 163 million) of the entire pension expense was included in staff costs in 2010, and € 243 million (previous year: € 298 million) was included in net other fi nancial income.
| € m | Non-current | Current | Total | |||
|---|---|---|---|---|---|---|
| 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | |
| Other employee benefi ts | 815 | 924 | 307 | 259 | 1,122 | 1,183 |
| Restructuring provisions | 743 | 696 | 840 | 452 | 1,583 | 1,148 |
| Technical reserves (insurance) | 330 | 374 | 198 | 179 | 528 | 553 |
| Postage stamps | 0 | 0 | 500 | 450 | 500 | 450 |
| Miscellaneous provisions | 387 | 446 | 801 | 919 | 1,188 | 1,365 |
| 2,275 | 2,440 | 2,646 | 2,259 | 4,921 | 4,699 |
| € m | Other employee benefi ts |
Restructuring provisions |
Technical reserves (insurance) |
Postage stamps |
Miscellaneous provisions |
Total |
|---|---|---|---|---|---|---|
| As at 1 January 2010 | 1,122 | 1,583 | 528 | 500 | 1,188 | 4,921 |
| Changes in consolidated group | 0 | 0 | 0 | 0 | – 4 | – 4 |
| Utilisation | – 677 | – 628 | – 96 | – 500 | –786 | –2,687 |
| Currency translation differences | 0 | 82 | 10 | 0 | 22 | 114 |
| Reversal | – 49 | –308 | –31 | 0 | –130 | – 518 |
| Unwinding of discount | 46 | 48 | 13 | 0 | 21 | 128 |
| Reclassifi cation | –1 | 4 | 0 | 0 | 2 | 5 |
| Additions | 742 | 367 | 129 | 450 | 1,052 | 2,740 |
| As at 31 December 2010 | 1,183 | 1,148 | 553 | 450 | 1,365 | 4,699 |
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 measures relate primarily to termination benefi t obligations to employees (partial retirement programmes, transitional benefi ts) and expenses from the closure of terminals, for example.
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 | ||
|---|---|---|
| 2009 | 2010 | |
| Tax provisions | 315 | 404 |
| Litigation costs | 136 | 121 |
| Risks from business activities | 147 | 135 |
| Postal Civil Service Health Insurance Fund | 22 | 12 |
| Welfare benefi ts for civil servants | 22 | 20 |
| Staff-related provisions | 22 | 21 |
| Miscellaneous other provisions | 524 | 652 |
| Miscellaneous provisions | 1,188 | 1,365 |
Of the tax provisions, € 273 million (previous year: € 218 million) relates to VAT, € 17 million (previous year: € 9 million) to customs and duties, and € 114 million (previous year: € 88 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.
Th e maturity structure of the provisions recognised in fi nancial year 2010 is as follows:
| € m | Less than 1 year |
More than 1 year to 2 years |
More than 2 years to 3 years |
More than 3 years to 4 years |
More than 4 years to 5 years |
More than 5 years |
Total |
|---|---|---|---|---|---|---|---|
| 2010 | |||||||
| Other employee benefi ts | 259 | 299 | 183 | 122 | 89 | 231 | 1,183 |
| Restructuring provisions | 452 | 131 | 33 | 30 | 14 | 488 | 1,148 |
| Technical reserves (insurance) | 179 | 162 | 78 | 57 | 29 | 48 | 553 |
| Postage stamps | 450 | 0 | 0 | 0 | 0 | 0 | 450 |
| Miscellaneous provisions | 919 | 231 | 66 | 47 | 27 | 75 | 1,365 |
| 2,259 | 823 | 360 | 256 | 159 | 842 | 4,699 |
€ m Non-current Current Total 2009 2010 2009 2010 2009 2010 Bonds 1,870 1,682 0 0 1,870 1,682 Due to banks 197 44 380 315 577 359 Finance lease liabilities 241 183 28 27 269 210 Liabilities to Group companies 98 27 28 110 126 137 Liabilities recognised at fair value through profi t or loss 84 15 57 100 141 115 Other fi nancial liabilities 4,209 4,324 247 195 4,456 4,519 Financial liabilities 6,699 6,275 740 747 7,439 7,022
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.
| 2009 | 2010 | ||||||
|---|---|---|---|---|---|---|---|
| Nominal coupon | Issue volume | Issuer | Carrying amount € m |
Fair value € m |
Carrying amount € m |
Fair value € m |
|
| Bond 2002 / 2012 | 5.125 % | € 679 million | Deutsche Post Finance b. v. | 721 | 723 | 713 | 718 |
| Bond 2003 / 2014 | 4.875 % | € 926 million | Deutsche Post Finance b. v. | 957 | 981 | 954 | 992 |
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 2009 |
Carrying amount 2010 |
||||
|---|---|---|---|---|---|
| Bank | Interest rate | End of term | € m | € m | |
| Deutsche Post International b. v., Netherlands | European Investment Bank Luxembourg | 4.923 % | 12 / 2011 | 114 | 123 |
| Deutsche Post International b. v., Netherlands | European Investment Bank Luxembourg | 3-month fl oater | 06 / 2011 | 24 | 8 |
| Deutsche Post International b. v., Netherlands | European Investment Bank Luxembourg | 5.81 % | 02 / 2011 | 14 | 7 |
| Deutsche Post ag, Germany | dz bank | 4.565 % | 12 / 2010 | 201 | 0 |
| Other | 224 | 221 | |||
| 577 | 359 |
Finance lease liabilities mainly relate to the following items:
| € m | ||||||
|---|---|---|---|---|---|---|
| Leasing partner | Interest rate | End of term | Asset | 2009 | 2010 | |
| Deutsche Post Immobilien GmbH, Germany | Lorac Investment Management Sarl |
6 % | 2016 | Real estate | 15 | 11 |
| dhl Express (us) Inc., usa | Wachovia Financial Services; Wells Fargo |
6.74 % | 2019 / 2022 | Sorting system software |
35 | 36 |
| scm Supply Chain Management Inc., Canada | Bank of Nova Scotia | variable | 2012 / 2013 | Warehouse, offi ce equipment |
41 | 34 |
| Deutsche Post ag, Germany | t-Systems International GmbH, Germany |
5 % | 2011 | it equipment | 19 | 15 |
Th e leased assets are recognised in property, plant and equipment at carrying amounts of € 374 million (previous year: € 521 million). Th e diff erence between the carrying amounts of the assets and the liabilities results from longer useful lives of the assets compared with a shorter repayment period for the lease instalments and unscheduled repayments of lease obligations. Th e notional amount of the minimum lease payments totals € 234 million (previous year: € 319 million).
| Present value (finance lease liabilities) |
Minimum lease payments (notional amount) |
||
|---|---|---|---|
| 2009 | 2010 | 2009 | 2010 |
| 28 | 27 | 40 | 33 |
| 155 | 108 | 187 | 120 |
| 86 | 75 | 92 | 81 |
| 269 | 210 | 319 | 234 |
Th e amounts reported under this item relate to the negative fair values of derivative fi nancial instruments.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Financial liabilities at fair value through profi t or loss | 141 | 115 |
Further details on the changes can be found in Note 50.
| € m | Non-current | Current | Total | |||
|---|---|---|---|---|---|---|
| 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | |
| Other liabilities | 372 | 401 | 3,674 | 4,047 | 4,046 | 4,448 |
| € m | 2009 | 2010 | |
|---|---|---|---|
| Mandatory exchangeable bond (with accrued interest) |
Deutsche Post ag |
2,670 | 2,796 |
| Other liabilities related to the planned sale of Deutsche Postbank shares |
Deutsche Post ag |
1,320 | 1,368 |
| Loan notes due to Exel's existing shareholders |
Deutsche Post ag |
61 | 40 |
| Miscellaneous fi nancial liabilities | Other Group companies |
405 | 315 |
| Other fi nancial liabilities | 4,456 | 4,519 |
Th e other fi nancial liabilities mainly result from the transactions related to the planned sale of Deutsche Postbank shares. Financial liabilities consist of a mandatory exchangeable bond on 60 million Postbank shares, cash collateral for the acquisition of another 26 million Postbank shares and payments on settled hedging transactions entered into to hedge Deutsche Bank shares; see Note 2.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Tax liabilities | 661 | 884 |
| Incentive bonuses | 477 | 609 |
| Compensated absences | 410 | 385 |
| Deferred income, of which non-current: 73 | ||
| (previous year: 41) | 266 | 323 |
| Wages, salaries, severance payments | 229 | 288 |
| Liabilities from the sale of residential building loans, | ||
| of which non-current: 273 (previous year: 281) | 287 | 278 |
| Social security liabilities | 159 | 181 |
| Payables to employees and members | ||
| of executive bodies | 288 | 165 |
| Debtors with credit balances | 105 | 116 |
| Overtime claims | 88 | 100 |
| Other compensated absences | 71 | 70 |
| cod liabilities | 47 | 58 |
| Accrued rentals | 19 | 23 |
| Liabilities from cheques issued | 19 | 20 |
| Liabilities from loss compensation | 15 | 19 |
| Accrued insurance premiums for damages | ||
| and similar liabilities | 15 | 15 |
| Insurance liabilities | 25 | 13 |
| Miscellaneous other liabilities, of which non-current: | ||
| 55 (previous year: 50) | 865 | 901 |
| 4,046 | 4,448 |
Of the tax liabilities, € 504 million (previous year: € 318 million) relates to VAT, € 252 million (previous year: € 214 million) to customs and duties, and € 128 million (previous year: € 129 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.
| Maturity structure of other liabilities | 4,046 | 4,448 |
|---|---|---|
| More than 5 years | 282 | 300 |
| More than 4 years to 5 years | 34 | 30 |
| More than 3 years to 4 years | 7 | 13 |
| More than 2 years to 3 years | 13 | 15 |
| More than 1 year to 2 years | 36 | 43 |
| Less than 1 year | 3,674 | 4,047 |
| 2009 | 2010 | |
| € m |
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 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.
Trade payables also include liabilities to Group companies.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Trade payables | 4,861 | 5,707 |
€ 844 million of the trade payables (previous year: € 862 million) is attributable 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 for the Group's 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.
At the end of February 2009, the Postbank shares from the fi rst tranche were sold as scheduled and the company was deconsolidated. Discontinued operations for the previous year therefore only include the cash fl ows for the fi rst two months of 2009.
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 amounted to € 2,109 million, a signifi cant € 1,346 million higher than in the previous year. Th is is largely attributable to the improved EBIT, which increased by € 1,604 million. Th e depreciation, amortisation and impairment losses contained in EBIT are non-cash eff ects and are therefore adjusted. Th ey are € 324 million down on the previous year. In addition, the losses on the disposal of assets of € 279 million refl ected in EBIT are not attributable to operating activities. Th ey have therefore been adjusted in the net loss from the disposal of non-current assets and are presented instead in the cash fl ows from investing activities. Th e increase in working capital led to a cash outfl ow of € 182 million. Th e increase in receivables and other assets was a major factor contributing to this development. Th e decline in working capital in the previous year led to a net cash infl ow of € 481 million. Overall, net cash from operating activities due to continuing operations rose by € 683 million to € 1,927 million.
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Expense from remeasurement of assets | 234 | 103 |
| Income from remeasurement of liabilities | –107 | –145 |
| Expense from disposal of assets | 2 | 51 |
| Staff costs relating to Share Matching Scheme | 5 | 20 |
| Miscellaneous | – 6 | –2 |
| Non-cash income and expense | 128 | 27 |
Cash fl ows from investing activities mainly result from cash received from disposals of non-current assets (divestitures) 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 also included.
Net cash from investing activities amounted to € 8 million in the year under review, compared to a cash outfl ow of € 1,457 million in the previous year. Th is was mainly due to the sale of money market funds, which led to a cash infl ow from current fi nancial assets. In the previous year, the change in current fi nancial assets resulted in net cash outfl ows of € 659 million. Cash was received from the sale of Deutsche Bank shares which was invested on the capital market.
Th e sales of the day-defi nite domestic express business in France and the UK led to a cash outfl ow and a corresponding reduction in the proceeds from the disposal of non-current assets. € 74 million was used to acquire subsidiaries and other business units. Th is was largely attributable to subsequent purchase price payments for Flying Cargo and the acquisition of nugg.ad AG. Cash payments for property, plant and equipment and intangible assets were at the same level as the previous year, at € 1,174 million, and were mainly attributable to replacement investments.
Th e following assets were acquired and liabilities assumed as a result of company acquisitions (see also Note 2):
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Non-current assets | 5 | 0 |
| Current assets (excluding cash and cash equivalents) | 9 | 1 |
| Provisions | 0 | 0 |
| Other liabilities | –16 | 0 |
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 increased signifi cantly and investing activities also generated net cash, free cash fl ow improved considerably, rising from €–213 million in the previous year to € 1,935 million in the reporting period.
Net cash of € 1,651 million was used in fi nancing activities in the reporting period, compared to a cash infl ow of € 1,669 million in the previous year. Th e dividend payment to shareholders (€ 725 million) was again the largest payment in this area. Net cash of € 641 million was used to reduce fi nancial liabilities. Th e main reasons for the net cash infl ow in the previous year were Deutsche Bank AG's subscription to the mandatory exchangeable bond as part of the planned Postbank sale and the payment of the collateral for the put option for the remaining Postbank shares. A portion of the cash infl ow was used for the repayment of fi nancial liabilities. Th e interest paid was therefore € 108 million lower than in the previous year.
Th e cash infl ows and outfl ows described above produced cash and cash equivalents due to continuing operations of € 3,415 million; see Note 37. Th is represents a year-on-year increase of € 351 million. Currency translation diff erences of € 67 million contributed to this growth.
As a result of its operating activities, the Group is exposed to fi nancial risks 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 exclusively to mitigating primary fi nancial risks. Any use of derivatives for speculative purposes is therefore not permitted under the Group's internal guidelines.
Changes in exchange rates, interest rates or commodity prices could lead to signifi cant fl uctuations in the fair value of the derivatives used. Th ese fl uctuations in fair value should not be assessed separately from the hedged underlying transactions as changes in the fair value of derivatives and hedged transactions are off set in the course of hedge accounting.
Th e universe 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 nancial transactions as well as to regularly monitor 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 utilisation of which is regularly monitored. Th e Group's Board of Management is informed internally at regular intervals about existing fi nancial risks and the hedging instruments deployed to mitigate them. Th e fi nancial instruments used are accounted for externally in accordance with IAS 39.
Th e aim of liquidity management is to ensure that the Deutsche Post DHL Group and the Group companies are in a position to meet their payment obligations on time. To this end, liquidity in the Group is centralised to a very large extent in cash pools and managed in the Corporate Center.
Liquidity is managed based on the centrally available liquidity reserves (funding availability), consisting of central short-term fi nancial investments and committed credit lines. Th e Group aims to have available at least € 2 billion in central credit lines.
Th e Group had central liquidity reserves of € 4.6 billion as at 31 December 2010 (previous year: € 6.2 billion). In the previous year, the reserves were composed of a central fi nancial investment of € 3.5 billion and additional credit lines with various banks totalling € 2.7 billion. Th e reserves at the reporting date consisted of central fi nancial investments amounting to € 2.6 billion plus a syndicated credit line of € 2.0 billion that was negotiated in December 2010.
Th e maturity structure of primary fi nancial liabilities within the scope of IFRS 7 based on cash fl ows is as follows:
| € m | More than | More than | More than | More than | ||
|---|---|---|---|---|---|---|
| Less than | 1 year | 2 years | 3 years | 4 years | More than | |
| 1 year | to 2 years | to 3 years | to 4 years | to 5 years | 5 years | |
| As at 31 December 2010 | ||||||
| Non-current fi nancial liabilities | 80 | 5,285 | 130 | 1,000 | 29 | 115 |
| Other liabilities | 0 | 6 | 5 | 5 | 4 | 256 |
| Non-current liabilities | 80 | 5,291 | 135 | 1,005 | 33 | 371 |
| Current fi nancial liabilities | 747 | 0 | 0 | 0 | 0 | 0 |
| Trade payables | 5,707 | 0 | 0 | 0 | 0 | 0 |
| Other liabilities | 266 | 0 | 0 | 0 | 0 | 0 |
| Current liabilities | 6,720 | 0 | 0 | 0 | 0 | 0 |
| 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 |
Th e non-current liabilities in the "More than 1 year to 2 years" category include a mandatory exchangeable bond (zero bond) of € 2,568 million plus interest. Th e bond was issued in February 2009 and fully subscribed by Deutsche Bank; see Note 2. Th e settlement of the liability in February 2012 will not result in any cash fl ows. Deutsche Post AG is required to transfer 60 million shares of Deutsche Postbank AG to Deutsche Bank AG to settle the liability. Non-current liabilities also include the cash collateral of € 1,161 million plus interest issued by Deutsche Bank AG in February 2009 as an advance paid on the written put option on 26,417,432 Postbank shares and a liability to Deutsche Bank AG of € 120 million relating to the transactions settled to hedge Deutsche Bank shares; see Note 2. Collateral was furnished in the same amount.
Th e maturity structure of the derivative fi nancial instruments based on cash fl ows is as follows:
| Less than | 1 year | 2 years | 3 years | 4 years | More than |
|---|---|---|---|---|---|
| 1 year | to 2 years | to 3 years | to 4 years | to 5 years | 5 years |
| –1,303 | –119 | –11 | – 6 | 0 | 0 |
| 1,361 | 151 | 16 | 14 | 0 | 0 |
| 9 | 0 | 0 | 0 | 0 | 0 |
| –2,930 | – 46 | –12 | –154 | 0 | 0 |
| 2,822 | 34 | 8 | 165 | 0 | 0 |
| – 6 | 0 | 0 | 0 | 0 | 0 |
| –2,421 | – 44 | – 54 | –20 | –149 | 0 |
| 2,474 | 63 | 66 | 20 | 180 | 0 |
| 6 | 0 | 0 | 0 | 0 | 0 |
| –1,733 | –129 | –72 | –12 | – 8 | –172 |
| 1,670 | 104 | 58 | 9 | 6 | 158 |
| –10 | 0 | 0 | 0 | 0 | 0 |
| More than | More than | More than | More than |
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 and therefore result in a net settlement, or whether both parties to the contract will have to perform their obligations in full (gross settlement). No cash fl ows were reported in the maturity bands for "4 to 5 years" and "more than 5 years" as at 31 December 2010, largely because a longterm derivative that was recognised at its negative fair value as at 31 December 2009 and that would have led to corresponding cash fl ows was closed out in 2010; see Note 50.3 (Cash fl ow hedges).
Th e derivatives on shares of Deutsche Postbank AG entered into with Deutsche Bank AG are not included in the overview as they do not result in cash fl ows.
Th e Group's global operating activities expose it to currency risks that are split into balance sheet risks and risks from planned transactions for risk management purposes.
Balance sheet currency risks arise from the measurement and settlement of items in foreign currencies that have already been recognised if the exchange rate on the measurement or settlement date diff ers from the rate on recognition. Th e resulting foreign exchange diff erences directly impact profi t or loss. In order to mitigate this impact as far as possible, all signifi cant balance sheet currency risks within the Group are centralised at Deutsche Post AG through the in-house bank function. Th e centralised risks are aggregated by Corporate Treasury to calculate a net position per currency and hedged externally based on value at risk limits. Th e currency- related value at risk (95 % / one-month holding period) for the portfolio concerned totalled € 3 million at the end of the year; the limit was a maximum of € 5 million.
Th e notional amount of the currency forwards and currency swaps used to manage balance sheet currency risks amounted to € 3,383 million at the reporting date (previous year: € 3,596 million); the fair value was €–45 million (previous year: €–12 million). For simplifi cation purposes, fair value hedge accounting was not applied to the derivatives used, which are reported as trading derivatives instead.
Planned currency risks arise from the settlement of future foreign currency transactions at exchange rates that diff er from the rates originally planned or calculated. Th ese currency risks are also captured and managed centrally in Corporate Treasury. Th e goal is to hedge 50 % to 80 % of the net risk per foreign currency and thereby to hedge the originally planned exchange rates. At the reporting date, around 50 % of the foreign currency risk for current transactions in 2011 was hedged. Th e relevant hedging transactions are recognised using cash fl ow hedge accounting; see Note 50.3 (Cash fl ow hedges).
In total, currency forwards and currency swaps used for risk management with a notional amount of € 4,603 million (previous year: € 4,502 million) were recognised at the balance sheet date. Th e corresponding fair value was €–65 million (previous year: €–44 million). Th ere were no currency options at the end of 2010 (previous year: fair value of € 1 million). Th e Group also held crosscurrency swaps with a notional amount of € 211 million (previous year: € 240 million) and a fair value of €–14 million (previous year €–11 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 2010.
Of the unrealised gains or losses from currency derivatives recognised in equity as at 31 December 2010 in accordance with IAS 39, €–19 million (previous year: €–15 million) is expected to be recognised in income in the course of 2011.
IFRS 7 requires the disclosure of quantitative risk data, showing how profi t or loss and equity are aff ected by changes in exchange rates at the reporting date. Th e impact of these changes in exchange rates on the portfolio of foreign currency fi nancial instruments is assessed by means of a value at risk calculation (95 % confi dence / one-month holding period). It is assumed that the portfolio as at the reporting date is representative for the full year.
Eff ects of hypothetical changes in exchange rates on translation risk do not fall within the scope of IFRS 7. Th e following assumptions are used as a basis for the sensitivity analysis:
Primary fi nancial instruments in foreign currencies used by Group companies were hedged by Deutsche Post AG's in-house bank, with Deutsche Post AG setting and guaranteeing monthly exchange rates. Exchange rate-related changes therefore have no eff ect on the profi t or loss and equity of the Group companies. Where, in individual cases, Group companies are not permitted to participate in in-house banking for legal reasons, their currency risks from primary fi nancial instruments are fully hedged locally through the use of derivatives. Th ey therefore have no impact on the Group's risk position.
Hypothetical changes in exchange rates have an eff ect on the fair values of Deutsche Post AG's external derivatives that is reported in profi t or loss; they also aff ect the foreign currency gains and losses from remeasurement at the closing date of the in-house bank balances, balances from external bank accounts as well as internal and external loans extended by Deutsche Post AG. Th e foreign currency value at risk of the foreign currency items concerned was € 3 million at the reporting date (previous year: € 2 million). In addition, hypothetical changes in exchange rates aff ect equity and the fair values of those derivatives used to hedge unrecognised fi rm commitments and highly probable forecast currency transactions, which are designated as cash fl ow hedges. Th e foreign currency value at risk of this risk position was € 25 million at 31 December 2010 (previous year: € 10 million). Th e total foreign currency value at risk was € 24 million at the reporting date (previous year: € 9 million). Th e total amount is lower than the sum of the individual amounts given above, owing to interdependencies.
Note 46 contains an overview of outstanding fi nancial liabilities. Th e Group uses interest rate derivatives to ensure an adequate ratio of variable-rate to fi xed-income fi nancial instruments.
Th e fair value of interest rate hedging instruments was calculated on the basis of discounted expected future cash fl ows using Corporate Treasury's risk management system.
As at 31 December 2010, the Group had entered into interest rate swaps with a notional volume of € 1,005 million (previous year: € 1,182 million). Th e fair value of this interest rate swap position was € 71 million (previous year: € 51 million). As in the previous year, there were no interest rate options at the reporting date.
Th e Group slightly increased the share of instruments with short-term interest lock-ins in the course of 2010 through the repayment of fi xed-income fi nancial liabilities. Financial liabilities with short-term interest lock-ins now represent around 60 % of total fi nancial liabilities. However, the eff ect of interest rate changes on the Group's fi nancial position continues to be insignifi cant. Fixed-income fi nancial liabilities in connection with the planned Postbank sale are not included in this analysis as these liabilities are paid in Postbank shares and therefore no interest rate risk arises.
Th e quantitative risk data relating to interest rate risk required by IFRS 7 is presented in the form of a sensitivity analysis. Th is method determines the eff ects of hypothetical changes in market interest rates on interest income, interest expense and equity as at the reporting date. Th e following assumptions are used as a basis for the sensitivity analysis:
Primary variable-rate fi nancial instruments are subject to interest rate risk and must therefore be included in the sensitivity analysis. Primary variable-rate fi nancial instruments that were transformed into fi xed-income fi nancial instruments using cash fl ow hedges are not included. Changes in market interest rates for derivative fi nancial instruments used as a cash fl ow hedge aff ect equity by changing fair values and must therefore be included in the sensitivity analysis. Fixed-income fi nancial instruments measured at amortised cost are not subject to interest rate risk.
Designated fair value hedges of interest rate risk are not included in the 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.
If the market interest rate level as at 31 December 2010 had been 100 basis points higher, net fi nancial income would have decreased by € 4 million (previous year: increased by € 6 million). A market interest 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 in this fi nancial year would not have increased equity (previous year: € 24 million), nor would a reduction have reduced equity (previous year: € 30 million). Th e signifi cant decrease in sensitivity is attributable to the early settlement of an interest rate swap that had been accounted for as a cash fl ow hedge in the previous year.
As in the previous year, most of the risks arising from commodity price fluctuations, in particular fluctuating prices for kero sene and marine diesel fuels, were passed on to customers via operating measures. In addition, a small number of commodity swaps for diesel were used to control residual risks. Th e notional amount of commodity swaps was € 42 million (previous year: € 16 million) with a fair value of € 5 million (previous year: € 1 million).
IFRS 7 requires the disclosure of 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 highly probable forecast commodity purchases (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 aff ect equity, but not profi t or loss.
A 10 % increase in the commodity prices underlying the derivatives as at the balance sheet date would have increased fair values and hence equity by € 5 million (previous year: € 1 million). A corresponding decline in commodity prices would have had the opposite eff ect.
Balance sheet risks associated with changes in share prices arise for the Group from the derivative fi nancial instruments on the Deutsche Postbank AG shares held by Deutsche Post AG entered into under the Amendment Agreement Regarding the Acquisition of Shares in Deutsche Postbank AG. In addition to a forward on 60 million Deutsche Postbank shares, put and call options on 26,417,432 shares were agreed. Th e contractual partner in both cases is Deutsche Bank AG.
Th e fair value of the forward was € 1,653 million as at 31 December 2010 (previous year: € 0 million). Th e forward was not capitalised at 31 December 2009, in accordance with the exemption provided in IAS 39.2 (g). Th e net fair value of the options was € 736 million as at 31 December 2010 (previous year: € 647 million). Changes in the fair value of the forward and the options are included in net fi nance costs /net fi nancial income until the instru ments are exercised or expire. Had the fair value of Postbank shares been 10 % lower as at 31 December 2010, the net fair value of the share price derivatives would have increased by € 180 million, generating additional income of € 180 million (previous year: € 60 million from the Postbank share options only) in net fi nan cial income. An increase in Postbank shares would have had the opposite eff ect and would have resulted in a charge to net fi nan cial income.
If, based on the quoted exchange price of Deutsche Postbank shares, the fair value falls below the carrying amount of the equity investment, a write-down is recognised. It is reversed up to the amount of amortised cost in accordance with the equity method, should the share price increase.
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. Th e Group's heterogeneous customer structure means that there is no risk concentration. Each counterparty is assigned an individual limit, the utilisation of which is regularly monitored. A test is performed at the balance sheet dates to establish whether an impairment loss needs to be charged on the positive fair values due to the individual counterparties' credit quality. Th is was not the case for any of the counterparties as at 31 December 2010.
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 € 6,011 million (previous year: € 4,881 million) are due within one year. Th e following table gives an overview of receivables that are past due:
| € 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 2010 | ||||||||||
| Trade receivables | 6,242 | 4,133 | 900 | 514 | 197 | 97 | 51 | 19 | 34 | |
| As at 31 December 2009 | ||||||||||
| Trade receivables | 5,135 | 3,304 | 727 | 534 | 166 | 86 | 29 | 20 | 15 |
Trade receivables changed as follows:
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Gross receivables | ||
| As at 1 January | 5,788 | 5,135 |
| Changes | – 653 | 1,107 |
| As at 31 December | 5,135 | 6,242 |
| Valuation allowances | ||
| As at 1 January | –197 | –254 |
| Changes | – 57 | 23 |
| As at 31 December | –254 | –231 |
| Carrying amount as at 31 December | 4,881 | 6,011 |
All other fi nancial instruments are neither past due nor impaired. Th e heterogeneous structure of the counterparties prevents risk concentration. Other assets are expected to be collectible at any time.
€ 301 million (previous year: € 289 million) of collateral is recognised in non-current fi nancial assets as at the balance sheet date. Among other things, this relates to the planned 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 when the mandatory exchangeable bond is exercised in February 2012. Other collateral relates to the settlement of residential building loans and existing leases.
Collateral of € 39 million is recognised in current fi nancial assets (previous year: € 40 million). Th e bulk of this relates to collateral as part of the 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 when the mandatory exchangeable bond is exercised; for the remaining 26,417,432 shares it is released when one of the options is exercised (see market risk).
Th e following table gives an overview of the recognised derivative fi nancial instruments used in the Group and their fair values. Derivatives with amortising notional volumes are reported in the full amount at maturity.
| € m | Fair values 2010 by maturity | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2009 | 2010 | Assets | Liabilities | |||||||||||||||
| Notional amount |
Fair value | Notional amount |
Fair value of assets |
Fair value of liabilities |
Total fair value |
Less than 1 year |
Up to 2 years |
Up to 3 years |
Up to 4 years |
Up to 5 years |
> 5 years |
Less than 1 year |
Up to 2 years |
Up to 3 years |
Up to 4 years |
Up to 5 years |
> 5 years |
|
| Interest rate products | ||||||||||||||||||
| Interest rate swaps | 1,182 | 51 | 1,005 | 71 | 0 | 71 | 0 | 43 | 0 | 28 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which cash fl ow hedges |
340 | – 6 | 163 | 18 | 0 | 18 | 0 | 0 | 0 | 18 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which fair value hedges |
842 | 57 | 842 | 53 | 0 | 53 | 0 | 43 | 0 | 10 | 0 | 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 |
| 1,182 | 51 | 1,005 | 71 | 0 | 71 | 0 | 43 | 0 | 28 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Currency transactions | ||||||||||||||||||
| Currency forwards | 2,423 | – 40 | 2,280 | 19 | – 52 | –33 | 17 | 2 | 0 | 0 | 0 | 0 | – 48 | –3 | –1 | 0 | 0 | 0 |
| of which cash fl ow hedges |
737 | –28 | 1,052 | 13 | –33 | –20 | 11 | 2 | 0 | 0 | 0 | 0 | –29 | –3 | –1 | 0 | 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 | 1,686 | –12 | 1,228 | 6 | –19 | –13 | 6 | 0 | 0 | 0 | 0 | 0 | –19 | 0 | 0 | 0 | 0 | 0 |
| Currency options | 275 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which cash fl ow | ||||||||||||||||||
| hedges | 275 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Currency swaps | 2,079 | – 4 | 2,323 | 17 | – 49 | –32 | 15 | 2 | 0 | 0 | 0 | 0 | – 49 | 0 | 0 | 0 | 0 | 0 |
| of which cash fl ow | ||||||||||||||||||
| hedges | 169 | – 4 | 168 | 3 | –3 | 0 | 1 | 2 | 0 | 0 | 0 | 0 | –3 | 0 | 0 | 0 | 0 | 0 |
| of which held for trading | 1,910 | 0 | 2,155 | 14 | – 46 | –32 | 14 | 0 | 0 | 0 | 0 | 0 | – 46 | 0 | 0 | 0 | 0 | 0 |
| Cross-currency swaps | 240 | –11 | 211 | 0 | –14 | –14 | 0 | 0 | 0 | 0 | 0 | 0 | –3 | – 8 | 0 | –3 | 0 | 0 |
| of which cash fl ow | ||||||||||||||||||
| hedges | 183 | 3 | 173 | 0 | – 6 | – 6 | 0 | 0 | 0 | 0 | 0 | 0 | –3 | 0 | 0 | –3 | 0 | 0 |
| of which fair value hedges |
57 | –14 | 38 | 0 | – 8 | – 8 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | – 8 | 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 |
| 5,017 | – 54 | 4,814 | 36 | –115 | –79 | 32 | 4 | 0 | 0 | 0 | 0 –100 | –11 | –1 | –3 | 0 | 0 | ||
| Commodity price transactions |
||||||||||||||||||
| Commodity price swaps | 16 | 1 | 42 | 5 | 0 | 5 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which cash fl ow | ||||||||||||||||||
| hedges | 16 | 1 | 42 | 5 | 0 | 5 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity price transactions | ||||||||||||||||||
| Equity forwards | – | – | 2,946 | 1,653 | 0 | 1,653 | 0 1,653 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| of which held for trading | – | – | 2,946 | 1,653 | 0 | 1,653 | 0 1,653 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Equity options | 2,596 | 647 | 2,596 | 736 | 0 | 736 | 0 | 736 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which held for trading | 2,596 | 647 | 2,596 | 736 | 0 | 736 | 0 | 736 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2,596 | 647 | 5,542 | 2,389 | 0 | 2,389 | 0 2,389 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Th e forward and the put and call options on the shares of Deutsche Postbank AG are recognised in the equity price transactions item.
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 € 53 million (previous year: € 57 million). As at 31 December 2010, there was also a € 19 million (previous year: € 24 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 €–8 million as at 31 December 2010 (previous year: €–14 million).
Th e following table gives an overview of the gains and losses arising from the hedged items and the respective hedging transactions:
| Balance (ineffective portion) | 1 | 2 |
|---|---|---|
| Gains (+) on hedging transactions | 17 | 3 |
| Losses (–) on hedged items | –16 | –1 |
| 2009 | 2010 | |
| € m |
Th e Group uses currency forwards and swaps to hedge the cash fl ow risks from future foreign currency operating revenue and expenses. Th e fair values of currency forwards and swaps amounted to €–15 million at the reporting date (previous year: €–7 million). Th e hedged items will mostly be recognised in the income statement in 2011.
Currency forwards with a fair value of €–10 million (previous year: €–21 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.
Th e Group is exposed to cash fl ow risks 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 € 5 million as at 31 December 2010 (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 invest ments. Th ese synthetic cross-currency swaps hedge the currency risk, and their fair values at the reporting date amounted to € 15 million (previous year: € 28 million). Th e investments relate to internal Group loans that mature in 2014.
Th e Group was exposed to cash fl ow risks arising from a variable-interest liability. Th ese risks were hedged using an interest rate swap. On 27 September 2010, the liability, which was to fall due in 2037, was settled by payment. At the same time, the hedging instrument was transferred from the hedging portfolio to the trading portfolio at its fair value of €–50 million. Th e measurement at fair value was recognised in income at the time of the transfer. On 9 November 2010, the derivative was closed out by payment. Th e interest rate swap had a fair value of €–36 million on settlement.
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 €–3 million as at the reporting date (previous year: €–7 million). Th e derivative and the underlying hedged item fall due in 2011.
Th e 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 € 5 million as at year-end (previous year: € 1 million). Th ere was minor hedge ineff ectiveness.
Th e Group classifi es fi nancial instruments equivalent to the respective balance sheet items. Th e following table reconciles the classes to the categories given in IAS 39 and the respective fair values:
| Carrying amount Carrying amount by measurement category in accordance with IAS 39 Financial assets and liabilities at fair value Available-for-sale through profit or loss financial assets Trading Fair value option assets Non-current fi nancial assets 3,193 at cost 588 0 0 68 at fair value 2,605 2,390 66 74 Other non-current assets 465 outside ifrs 7 465 0 0 0 Receivables and other current assets 8,641 at cost 7,305 0 0 0 outside ifrs 7 1,336 0 0 0 Current fi nancial assets 655 at cost 210 0 0 13 at fair value 445 21 0 407 outside ifrs 7 0 0 0 0 Cash and cash equivalents 3,415 0 0 0 Total assets 16,369 2,411 66 562 equity and liabilities Non-current fi nancial liabilities1) – 6,275 at cost – 6,260 0 0 0 at fair value –15 –1 0 0 outside ifrs 7 0 0 0 0 Other non-current liabilities – 401 at cost –273 0 0 0 outside ifrs 7 –128 0 0 0 Current fi nancial liabilities –747 at cost – 610 0 0 0 at fair value –137 –137 0 0 Trade payables – 5,707 0 0 0 Other current liabilities – 4,047 at cost –245 0 0 0 outside ifrs 7 –3,802 0 0 0 Total equity and liabilities –17,177 –138 0 0 |
€ m | |||
|---|---|---|---|---|
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. They are therefore recognised neither at full 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 |
Lease receivables / finance lease liabilities |
|
| 468 | 5 | 0 | 47 | 588 |
| 0 | 0 | 75 | 0 | 2,605 |
| 0 | 0 | 0 | 0 | 0 |
| 7,305 | 0 | 0 | 0 | 7,305 |
| 0 | 0 | 0 | 0 | 0 |
| 150 | 0 | 0 | 47 | 210 |
| 0 | 0 | 17 | 0 | 445 |
| 0 | 0 | 0 | 0 | 0 |
| 3,415 | 0 | 0 | 0 | 3,415 |
| 11,338 | 5 | 92 | 94 | – |
| – 6,077 | 0 | 0 | –183 | – 6,510 |
| 0 | 0 | –14 | 0 | –15 |
| 0 | 0 | 0 | 0 | 0 |
| –273 | 0 | 0 | 0 | –277 |
| 0 | 0 | 0 | 0 | 0 |
| – 583 | 0 | 0 | –27 | – 610 |
| 0 | 0 | 0 | 0 | –137 |
| – 5,707 | 0 | 0 | 0 | – 5,707 |
| –245 | 0 | 0 | 0 | –245 |
| 0 | 0 | 0 | 0 | 0 |
| –12,885 | 0 | –14 | –210 | – |
| € m | |||||
|---|---|---|---|---|---|
| Carrying amount | Carrying amount by measurement category in accordance with IAS 39 | ||||
| Financial assets and liabilities 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. They are therefore recognised neither
at full 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 |
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 0 |
1 0 |
0 8 |
48 0 |
258 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 | – |
If there is an active market for a fi nancial instrument (e. g., stock exchange), the fair value is determined by reference to the market or quoted exchange price at the balance sheet date. If no fair value is available in an active market, the quoted prices in an active market for similar instruments or recognised valuation techniques are used to determine the fair value. Th e valuation techniques used incorporate the key factors determining the fair value of the fi nancial instruments using valuation parameters that are derived from the market conditions as at the balance sheet date. Counterparty risk is analysed on the basis of the current credit default swaps signed by the counterparties. Th e fair values of other noncurrent receivables and held-to-maturity fi nancial investments with remaining maturities of more than one year correspond to the present values of the payments related to the assets, taking into account current interest rate parameters.
Cash and cash equivalents, trade receivables and other receivables have predominantly short remaining maturities. As a result, their carrying amounts at the reporting date are approximately equivalent to their fair values. Trade payables and other liabilities generally have short remaining maturities; the recognised amounts approximately represent their fair values.
Available-for-sale fi nancial assets include shares in partnerships and corporations in the amount of € 81 million (previous year € 96 million). Th ere is no active market for these instruments. As no future cash fl ows can be reliably determined, the fair values 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 signifi cant shares of the available-for-sale fi nancial assets recognised as at 31 December 2010 in the near future. As in the previous year, no signifi cant shares measured at cost were sold in the fi nancial year. Available-for-sale fi nancial assets measured at fair value relate to equity and debt instruments.
Financial assets at fair value through profi t or loss include securities to which the fair value option was applied, in order to avoid accounting inconsistencies. Th ere is an active market for these assets, which 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: 2010 | |||
|---|---|---|---|
| ---------------------------------------- | -- | -- | -- |
| € m | |||
|---|---|---|---|
| Level | 1 | 2 | 3 |
| Measurement using key inputs based |
Measurement using key inputs not based |
||
| Class | Quoted market prices |
on observable market data |
on observable market data |
| Non-current fi nancial assets at fair value |
140 | 2,465 | 0 |
| Current fi nancial assets at fair value |
407 | 38 | 0 |
| Non-current fi nancial liabilities at fair value |
0 | –15 | 0 |
| Current fi nancial liabilities at fair value |
0 | –137 | 0 |
| € m | |||
|---|---|---|---|
| Level | 1 | 2 | 3 |
| Measurement using key inputs based on |
Measurement using key inputs not based on |
||
| Quoted | observable | 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 |
Th e fair value of currency forwards was measured on the basis of discounted future expected 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.
Level 2 includes commodity, interest rate and currency derivatives, and the forward and options entered into in the context of the planned sale of the Deutsche Postbank AG shares.
No assets were reclassifi ed in fi nancial years 2010 and 2009. Th e net gains and losses on fi nancial instruments classifi ed in accordance with the individual measurement categories in IAS 39 are as follows:
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Loans and receivables | –184 | –75 |
| Held-to-maturity fi nancial assets | 0 | 0 |
| Financial assets and liabilities at fair value through profi t or loss |
||
| Trading | 146 | 1,757 |
| Fair value option | 10 | 7 |
| Other fi nancial liabilities | – 46 | – 84 |
Th e net gains and losses mainly include the eff ects of fair value measurement, impairment and disposals (disposal gains / losses). Th e increase in the net income in the fi nancial assets and liabilities at fair value through profi t or loss category is attributable to the initial recognition of the forward entered into as part of the planned sale of the Deutsche Postbank AG shares. Dividends and interest are not taken into account for the fi nancial instruments measured at fair value through profi t or loss. Disclosures on net gains or losses on available-for-sale fi nancial assets can be found in Note 40. Income and expenses from interest and commission agreements of the fi nan cial instruments not measured at fair value through profi t or loss are explained in the income statement disclosures.
Th e Group's contingent liabilities total € 2,469 million (previous year: € 2,310 million). € 12 million of the contingent liabilities relate to guarantee obligations (previous year: € 63 million), € 133 million to warranties (previous year: € 246 million) and € 153 million to liabilities from litigation risks (previous year: € 114 million). Th e other contingent liabilities amounting to € 2,171 million (previous year: € 1,887 million) mainly relate to obligations from formal state aid proceedings, see Note 53, and tax-related items.
In addition to provisions, liabilities and contingent liabilities, there are other fi nancial obligations amounting to € 7,091 million (previous year: € 6,193 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:
| 2009 | 2010 | |
|---|---|---|
| Land and buildings | 5,359 | 5,554 |
| Aircraft | 312 | 951 |
| Transport equipment | 376 | 439 |
| Technical equipment and machinery | 106 | 115 |
| Other equipment, operating and offi ce equipment | 25 | 20 |
| it equipment | 15 | 12 |
| Lease obligations | 6,193 | 7,091 |
Th e change is largely attributable to aircraft leases.
| Maturity structure of minimum lease payments | 6,193 | 7,091 |
|---|---|---|
| More than 5 years | 1,935 | 2,257 |
| More than 4 years to 5 years | 478 | 557 |
| More than 3 years to 4 years | 600 | 731 |
| More than 2 years to 3 years | 800 | 914 |
| More than 1 year to 2 years | 1,023 | 1,199 |
| Less than 1 year | 1,357 | 1,433 |
| 2009 | 2010 | |
| € m |
Th e present value of discounted minimum lease payments is € 5,311 million (previous year: € 4,773 million), based on a discount factor of 6.50 % (previous year: 6.00 %). Overall, rental and lease payments amounted to € 2,330 million (previous year: € 2,370 million), of which € 1,693 million (previous year: € 1,820 million) relates to non-cancellable leases. € 2,745 million (previous year: € 2,747 million) of future lease obligations from non-cancellable leases is primarily attributable to Deutsche Post Immobilien GmbH.
Th e purchase obligation for investments in non-current assets amounted to € 194 million (previous year: € 234 million).
As Deutsche Post AG is the market leader, a large number of its services are subject to sector-specifi c 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 resulting proceedings could lead to a decline in revenue and earnings.
Legal risks arise, for example, from appeals by an association and a competitor against the price approvals under the price cap procedure for 2003, 2004 and 2005, and by the association against the price approvals under the price cap procedure for 2008. Although the appeals by the association against price approvals for the years 2003 to 2005 were fi nally dismissed by the Münster Higher Administrative Court, the association has lodged a constitutional complaint against this decision with the Federal Constitutional Court. Should the constitutional complaint be upheld, the proceedings at the Münster Higher Administrative Court will be resumed.
Legal risks also result from appeals by Deutsche Post against other price approvals granted by the regulatory authority.
European Commission competition proceedings were initiated on the basis of a complaint made by the Deutscher 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.
Deutsche Post AG increased its discounts for downstream access on 1 July 2010. Deutsche Post's competitors and their associations fi led complaints against these discount increases with the Bundesnetzagentur (German federal network agency). Th ey claim that the increased discounts confl ict, in particular, with regulatory requirements. However, the Bundesnetzagentur discontinued its review proceedings by way of a notifi cation of 15 September 2010 aft er having found no violation of the applicable regulations. It remains to be seen whether the plaintiff s will attempt to pursue their complaints via other legal means. Deutsche Post AG considers its charges for downstream access and the discount increases to be in compliance with the regulatory and other legal requirements. However, no assurance can be given that government authorities or the courts will not come to a diff erent conclusion that would have negative eff ects on Deutsche Post AG's revenue and earnings.
In response to a complaint by a third party, the European Commission issued 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 European 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 European Commission has already investigated the acquisition of Deutsche Postbank AG as part of state aid proceedings that were closed with the ruling dated 19 June 2002. At the time, it explicitly concluded that the acquisi tion of Postbank involved "no grant of state aid".
Th e German federal government has already argued before the European Commission that the allegations are unfounded in its opinion. Nevertheless, no assurance can be given with regard to the two allegations relating to the requests for information that the European Commission will not fi nd that the facts of the case constitute state aid.
On 12 September 2007, the European 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.
On 2 September 2010, the European Court of Justice dismissed the appeal by the European Commission against the ruling of the European Court of First Instance of 1 July 2008. Th is means that the decision of the European Commission of 19 June 2002 on alleged state aid to Deutsche Post AG has been fi nally annulled. Th e European Commission had ordered Deutsche Post AG to repay state aid it had allegedly received, plus interest, in a total amount of € 907 million. Th e European Court of First Instance upheld the complaint of Deutsche Post AG, upon which the above sum, which had already been paid, was reimbursed to Deutsche Post AG on 1 August 2008.
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 requests for information 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 anti trust class action was initiated in the New York District Court on behalf of purchasers of freight forwarding services in which Deutsche Post AG and DHL are named as defendants. Th is civil action appears to be based on the fact that antitrust investigations are ongoing, 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 prospects of the class action, but believes its fi nancial exposure in relation to both is limited.
Th e new system to grant variable remuneration components for some of the Group's executives introduced in 2009, which is accounted for as an equity-settled share-based payment transaction in accordance with IFRS 2, was extended to include other groups of Group executives in 2010. Under this system, certain executives concerned receive part of their variable remuneration for the fi nancial year in the form of shares of Deutsche Post AG in the following year; all Group executive can specify an increased equity component individually by converting a further portion of their variable remuneration for the fi nancial year. If certain conditions are met, the executive will again be awarded the same number of Deutsche Post AG shares four years later (matching shares). Th e programme for the fi nancial year 2009 tranche will therefore expire in 2014 aft er a four-year vesting period; the programme for the fi nancial year 2010 tranche will expire in 2015.
For fi nancial year 2010, the Group executives partici pating in this share-based payment system will receive a portion of the bonus of around € 8.5 million in shares. Th is amount plus the matching shares to be granted aft er the four-year period result in a minimum number of shares of approximately 1,260,000. An additional equity conversion based on the individual decisions of the Group executives concerned is also expected in an amount of 614,000 shares. Around 762,000 expected matching shares are attributable to the 2009 tranche. Th e fair value of matching shares for the 2009 tranche corresponds to Deutsche Post AG's share price as at the grant date of the 2009 tranche (€ 11.48). Th e fair value of the matching shares for the 2010 tranche on the grant date of this tranche is € 13.98.
€ 20 million was recognised in equity for the grant of variable remuneration components in the consolidated fi nancial statements as at 31 December 2010. Of this, around € 8.8 million is attributable to the expected portion of the bonus for fi nancial year 2010 that will be paid out in Deutsche Post AG shares. Th e remainder is attributable to the matching shares that are to be issued in April 2014 (2009 tranche) and April 2015 (2010 tranche).
Since 3 July 2006, selected executives have received annual tranches of stock appreciation rights under the Long-Term Incentive Plan introduced in 2006. Th is allows them 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 are met. All stock appreciation rights under the 2006 and 2007 tranches expired at the end of the respective waiting periods, since the performance targets were not met without exception.
Since 1 July 2006, the members of the Board of Management have received stock appreciation rights (SAR s) under the new 2006 Long-Term Incentive Plan. Each SAR under the 2006 LTIP entitles the holder to receive a cash settlement equal to the diff erence between the average closing price of Deutsche Post shares during the last fi ve trading days before the exercise date and the issue price of the SAR.
Th e members of the Board of Management each invested 10 % of their fi xed annual remuneration (annual base salary) as a personal fi nancial investment in 2010. Th e number of SAR s issued to the members of the Board of Management is determined by the Supervisory Board. Following a four-year waiting period (or following a three-year waiting period for SAR s issued up to 2008, inclusive) that begins on the issue date, the SAR s granted can be fully or partly exercised within a period of two years provided an absolute or relative performance target is achieved at the end of the waiting period. Any SAR s not exercised during this two-year period will expire. To determine how many – if any – of the granted SAR s 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 waiting 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 Deutsche Post shares 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 STOXX Europe 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 s 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 waiting period, the SAR s attributable to the related tranche will expire without replacement or compensation. More details on the 2006 LTIP tranches are shown in the following table:
2006 ltip
| sar s | 2006 tranche | 2007 tranche | 2008 tranche | 2009 tranche | 2010 tranche |
|---|---|---|---|---|---|
| Issue date | 1 July 2006 | 1 July 2007 | 1 July 2008 | 1 July 2009 | 1 July 2010 |
| Issue price | € 20.70 | € 24.02 | € 18.40 | € 9.52 | € 12.27 |
| Waiting period expires | 30 June 2009 30 June 2010 | 30 June 2011 | 30 June 2013 | 30 June 2014 |
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 € 21 million was recognised for fi nancial year 2010 (previous year: € 11 million).
See Note 55.2 for further disclosures on share-based payment for members of the Board of Management. A provision for the 2006 LTIP and the 2006 SAR Plan (Board of Management and executives) was recognised as at the balance sheet date in the amount of € 37 million (previous year: € 16 million).
Deutsche Post DHL applied the partial exemption from disclosure provided by the revised IAS 24 for government-related entities early as at 31 December 2010.
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, see Note 60, 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 has direct business relationships with the individual public authorities and other government agencies as independent individual customers. Th e services provided for these customers are insignifi cant in respect of Deutsche Post AG's overall revenue.
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 federal govern ment sells all or part of its investments to KfW with the aim of fully privatising these state-owned companies. On this basis, KfW has purchased shares of Deutsche Post AG from the federal government in several stages since 1997 and executed various capital market transactions using these shares. KfW's current interest in Deutsche Post AG's share capital is 30.5 %.
Th e Bundesanstalt für Post und Telekommunikation e.V. (BAnstPT) is a government agency and falls under the technical and legal supervision of the German Federal Ministry of Finance. Under the Bundesanstalt-Reorganisationsgesetz (German federal agency reorganisation act), which entered into force on 1 December 2005, the Federal Republic of Germany directly undertakes the tasks relating to holdings in postal service successor companies through the Federal Ministry of Finance. It is therefore no longer necessary for the BAnstPT to perform the "tasks associated with ownership". Th e BAnstPT manages the social facilities such as the Postal Civil Service Health Insurance Fund, the recreation programme, the Versorgungsanstalt der Deutschen Bundespost (VAP) and the welfare service for Deutsche Post AG, Deutsche Postbank AG and Deutsche Telekom AG, as well as setting the objectives for social housing. Th e tasks are performed on the basis of agency agreements. In 2010, Deutsche Post AG was invoiced for € 72 million (previous year: € 68 million) in instalment payments relating to services provided by the BAnstPT.
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 Fehlsubven tionierung 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 2010 Deutsche Post AG paid € 0.1 million to the federal government for the fi nal settlement for fi nancial year 2009 and € 0.6 million for fi nancial year 2010. As agreed, the fi nal settlement for fi nancial year 2010 will be made by 1 July 2011.
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 2010, this initiative resulted in 21 permanent transfers (previous year: eight) and nine secondments with the aim of a permanent transfer in 2011 (previous year: 18).
Deutsche Post AG and the German Federal Employment Agency entered into an agreement dated 12 October 2009 relating to the transfer of Deutsche Post AG civil servants to the Federal Employment Agency. In 2010, this initiative resulted in 365 permanent transfers.
Th e federal government holds around 32 % of the shares of Deutsche Telekom AG directly and indirectly (via KfW Bankengruppe). Since the federal government, despite its non-controlling interest, has a secure majority at the Annual General Meeting due to its average presence there, a dependent relationship exists between Deutsche Telekom and the federal government. Deutsche Telekom is therefore a related party of Deutsche Post AG. In fi nan cial year 2010, Deutsche Post DHL provided goods and services worth € 0.3 billion (previous year: € 0.3 billion) for Deutsche Telekom AG. Th ese were mainly transport services for letters and parcels. In the same period, the Group purchased goods and services (including IT products and services) worth € 0.3 billion (previous year: € 0.4 billion) from Deutsche Telekom.
Deutsche Bahn AG is wholly owned by the German government. Owing to this dependent relationship, Deutsche Bahn AG is a related party to Deutsche Post AG. Deutsche Post DHL has various business relationships with the Deutsche Bahn Group. Th ese mainly consist of transport service agreements.
Commerzbank AG is a related party due to the federal government's equity interest in the bank of 25 % plus one share. Since 21 December 2010, Commerzbank AG has been a member of the consortium of banks that has underwritten the syndicated credit facility entered into with Deutsche Post AG. At the same time, the bilateral credit line in the amount of € 200 million between Deutsche Post AG and Commerzbank AG was closed.
Information on the Bundes-Pensions-Service für Post- und Telekommunikation e.V. (BPS-PT) can be found in Note 7.
Th e real estate, with a fair value of € 1,043 million (previous year: € 1,050 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 bene fi cial owners, is exclusively let to Deutsche Post Immobilien GmbH. Rental expense for Deutsche Post Immobilien GmbH amounted to € 63 million in 2010 (previous year: € 66 million). Th e rent was always paid on time. Deutsche Post Pensions- Treuhand GmbH & Co. KG owns 100 % of Deutsche Post Pensionsfonds AG, which was established at the end of 2009. No receivables or liabi l ities were due as at 31 December 2010. Th ere were no sales relationships between external authorities and a Group company of Deutsche Post AG in 2010.
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 of the Group in the course of its ordinary business activities. As part 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 2010 with major related parties, resulting in the following items in the consolidated fi nancial statements:
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Receivables | 25 | 30 |
| Loans | 15 | 13 |
| Receivables from in-house banking | 3 | 0 |
| Financial liabilities | – 46 | – 47 |
| Liabilities | –10 | –20 |
| Liabilities from in-house banking | –3 | – 4 |
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, 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 nan cial year 2010. In one case, a member of the Supervisory Board was involved in legal transactions with Deutsche Post AG. Th is primarily involved services rendered in a volume of € 1 million. Th ere were no legal transactions between second-level executives or members of their families and Deutsche Post DHL.
| number | Dr Frank | Bruce | Lawrence | Walter | |||
|---|---|---|---|---|---|---|---|
| Appel | Ken Allen | Edwards Jürgen Gerdes | Rosen | Scheurle | Hermann Ude | ||
| sar s | |||||||
| Outstanding sar s as at 1 January 2010 | 925,000 | 370,896 | 523,562 | 618,706 | 240,000 | 690,000 | 523,562 |
| sar s granted | 375,000 | 250,000 | 250,000 | 250,000 | 250,000 | 250,000 | 250,000 |
| sar s lapsed | 220,000 | 43,938 | 53,562 | 148,706 | 0 | 220,000 | 53,562 |
| sar s exercised | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Outstanding sar s as at 31 December 2010 | 1,080,000 | 576,958 | 720,000 | 720,000 | 490,000 | 720,000 | 720,000 |
| Exercisable sar s as at 31 December 2010 | 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 | 2.21 | 2.63 | 2.21 | 2.21 | 3.01 | 2.21 | 2.21 |
Th e remuneration of key management personnel of the Group requiring disclosure under IAS 24 comprises the remuneration of the active members of the Board of Management and the Supervisory Board. Th e active members of the Board of Management and the Supervisory Board were remunerated as follows:
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Short-term employee benefi ts | ||
| (less share-based payment) | 16 | 13 |
| Post-employment benefi ts | 2 | 2 |
| Termination benefi ts | 4 | 0 |
| Share-based payment | 2 | 2 |
| Total | 24 | 17 |
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 payment amount relates to the relevant expense recognised for fi nancial years 2009 and 2010. It is itemised in the following table:
| thousands of € | 2009 | 2010 | |
|---|---|---|---|
| sar s | sar s | ||
| Dr Frank Appel, Chairman | 421 | 443 | |
| Ken Allen (since 26 February 2009) | 177 | 295 | |
| Bruce Edwards | 276 | 295 | |
| Jürgen Gerdes | 280 | 295 | |
| Lawrence Rosen (since 1 September 2009) | 177 | 295 | |
| Walter Scheurle | 284 | 295 | |
| Hermann Ude | 276 | 295 | |
| John Allan (until 30 June 2009) | 101 | – | |
| Share-based payment | 1,992 | 2,213 |
Further details on the share-based payment granted to the members of the Board of Management in fi nancial years 2009 and 2010 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 expired | 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 € | Not exercised | ||||||||
| Weighted average term to maturity in years |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| sar s | |||||||||
| Outstanding sar s as at 1 January 2009 | 775,000 | 176,244 | 400,508 | 474,172 | 0 | 660,000 | 337,262 | 660,000 | 285,000 |
| sar s granted | 360,000 | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | 240,000 | 0 | 0 |
| sar s expired | 210,000 | 45,348 | 116,946 | 95,466 | 0 | 210,000 | 53,700 | 660,000 | 0 |
| sar s exercised | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Outstanding sar s as at 31 December 2009 |
925,000 | 370,896 | 523,562 | 618,706 | 240,000 | 690,000 | 523,562 | 0 | 285,000 |
| Exercisable sar s 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 2010.
2) Until 30 June 2010.
Th e total remuneration paid to the active members of the Board of Management in fi nancial year 2010 including the components with a long-term incentive eff ect totalled € 17.0 million (previous year: € 22.2 million). Of this amount, € 7.1 million (previous year: € 9.8 million) is attributable to non-performance-related components (annual base salary and fringe benefi ts), € 4.9 million (previous year: € 5.1 million) to performance-related components (variable components) and € 5.0 million (previous year: € 7.3 million) to components with a long-term incentive eff ect (stock appreciation rights – SAR s). Th e number of SAR s was 1,875,000 ( previous year: 1,800,000).
Th e remuneration of former members of the Board of Management or their surviving dependants amounted to € 5.7 million in the year under review (previous year: € 8.1 million). Th e defi ned benefi t obligation (DBO) for current pensions calculated under IFRS s amounted to € 42.9 million (previous year: € 26.1 million).
Th e total remuneration of the Supervisory Board in fi nancial year 2010 amounted to approximately € 1.1 million (previous year: € 0.7 million); € 0.9 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 € 0.2 million to attendance allowances (previous year: € 0.1 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.
As at 31 December 2010, 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.
Th e 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) can be viewed on the company's website at www.dp-dhl.com.
Th e following fees for services rendered by the auditor of the consolidated fi nancial statements, PricewaterhouseCoopers Aktien gesellschaft Wirtschaft sprüfungsgesellschaft , were recognised as an expense in fi nancial year 2010 and in the previous year:
| € m | ||
|---|---|---|
| 2009 | 2010 | |
| Audits of the fi nancial statements | 6 | 5 |
| Other assurance or valuation services | 1 | 2 |
| Tax advisory services | 0 | 0 |
| Other services | 1 | 1 |
| Auditor's fees | 8 | 8 |
For fi nancial year 2010, Deutsche Post AG has exercised the simplifi cation options under section 264 (3) of the HGB for the following companies:
In December 2010, the Board of Management and the Supervisory Board of Deutsche Post AG jointly submitted the Declaration of Conformity with the German Corporate Governance Code for fi nancial year 2010 required by section 161 of the Aktien gesetz (AktG – German stock corporation act). Th is Declaration of Conformity can be accessed online at www.corporate-governancecode.de and at www.dp-dhl.com.
Th ere were no signifi cant events aft er the balance sheet date.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| abis GmbH | Germany, Frankfurt am Main | 70.00 | eur | 477 | 868 |
| Aerocar b. v. | Netherlands, Amsterdam | 100.00 | eur | 5,659 | 2,478 |
| Agheera GmbH | Germany, Bonn | 100.00 | eur | 25 | –1,444 |
| Albert Scheid GmbH | Germany, Cologne | 100.00 | eur | 1,032 | 416 |
| Applied Distribution Group Limited 5) | United Kingdom, Bracknell | 100.00 | eur | 5,764 | 0 |
| Axial sa | Belgium, Seneffe | 100.00 | eur | 2,360 | – 405 |
| Blue Funnel Bulkships Limited 5) | United Kingdom, Bracknell | 100.00 | eur | –2,561 | 0 |
| BürgTrans GmbH | Germany, Düsseldorf | 100.00 | eur | 244 | 4 |
| Cargus Express Curier s. r. l. | Romania, Bucharest | 100.00 | eur | – 8,360 | –3,103 |
| Cargus International s. r. l. | Romania, Bucharest | 100.00 | eur | –398 | 159 |
| Container Services Amsterdam b. v.5) | Netherlands, Amsterdam | 100.00 | eur | 245 | 0 |
| Cormar Limited | United Kingdom, Bracknell | 100.00 | eur | 1,764 | 739 |
| cpj Travel Limited | United Kingdom, Hounslow | 100.00 | eur | 0 | 0 |
| danmar Lines ag | Switzerland, Basel | 100.00 | eur | 24,459 | 4,646 |
| Danzas (uk) Limited 5) | United Kingdom, Staines | 100.00 | eur | 1,158 | 0 |
| danzas aei (uk) ltd 5) | United Kingdom, Staines | 100.00 | eur | 8,753 | 0 |
| Danzas aei GmbH | Germany, Kelsterbach | 100.00 | eur | 7,810 | 5 |
| Danzas Chemicals GmbH 8) | Germany, Düsseldorf | 100.00 | eur | –1,267 | 0 |
| Danzas Deutschland Holding GmbH | Germany, Frankfurt am Main | 100.00 | eur | 5,485 | 25,213 |
| danzas Fashion b. v. | Netherlands, Venlo | 100.00 | eur | –26,171 | –399 |
| Danzas Fashion nv | Belgium, Grimbergen | 100.00 | eur | 14 | –17 |
| Danzas Fashion Service Centers b. v. | Netherlands, Waalwijk | 100.00 | eur | 645 | – 87 |
| Danzas Grundstücksverwaltung Düsseldorf GmbH | Germany, Düsseldorf | 100.00 | eur | 14,404 | 2,352 |
| Danzas Grundstücksverwaltung Frankfurt GmbH | Germany, Frankfurt am Main | 100.00 | eur | 27,005 | –2,839 |
| Danzas Grundstücksverwaltung Groß-Gerau GmbH | Germany, Hamburg | 100.00 | eur | 28 | –35 |
| Danzas Holding ag | Switzerland, Basel | 100.00 | eur | 127,294 | 21,066 |
| Danzas Kiev Ltd.1) | Ukraine, Kiev | 100.00 | eur | –1,845 | –237 |
| Danzas Odessa Ltd.1) | Ukraine, Odessa | 100.00 | eur | – | – |
| Danzas Verwaltungs GmbH | Germany, Frankfurt am Main | 100.00 | eur | 22,427 | 1,539 |
| Danzas, s. l.1) | Spain, San Sebastián | 100.00 | eur | 205,423 | 2,145 |
| Union Aduanera Española s. a.1) | Spain, Barcelona | 100.00 | eur | – | – |
| Darshaan Properties Ltd. | Ireland, Dublin | 100.00 | eur | 5,651 | 571 |
| Deutsche Post Adress Beteiligungsgesellschaft mbH | Germany, Bonn | 100.00 | eur | 416 | 8,569 |
| Deutsche Post Adress Geschäftsführungs GmbH | Germany, Bonn | 51.00 | eur | 17 | –10 |
| Deutsche Post Adress GmbH & Co. kg | Germany, Bonn | 51.00 | eur | 9,741 | 16,763 |
| Deutsche Post Assekuranz Vermittlungs GmbH | Germany, Bonn | 55.00 | eur | 51 | – 8 |
| Deutsche Post Beteiligungen Holding | |||||
| Bankbeteiligungsgesellschaft mbH | Germany, Bonn | 100.00 | eur | 3,575,225 | 3,554 |
| Deutsche Post Beteiligungen Holding GmbH | Germany, Bonn | 100.00 | eur | 6,793,358 | –1,132,898 |
| Deutsche Post Com GmbH | Germany, Bonn | 100.00 | eur | 1,150 | 155 |
| Deutsche Post Consult GmbH | Germany, Bonn | 100.00 | eur | 3,847 | 556 |
| Deutsche Post Customer Service Center GmbH | Germany, Monheim | 100.00 | eur | 178 | –27,492 |
| Deutsche Post DHL Corporate Real Estate | |||||
| Management GmbH | Germany, Bonn | 100.00 | eur | 51 | 132 |
| Deutsche Post DHL Inhouse Consulting GmbH | Germany, Bonn | 100.00 | eur | 16 | 6,860 |
| Deutsche Post DHL Market Research | |||||
| and Innovation GmbH | Germany, Bonn | 100.00 | eur | 8,021 | 195 |
| Deutsche Post Direkt GmbH | Germany, Bonn | 100.00 | eur | 60 | 7,072 |
| Deutsche Post Finance b. v. | Netherlands, Amersfoort | 100.00 | eur | 10,794 | 711 |
| Deutsche Post Fleet GmbH | Germany, Bonn | 100.00 | eur | 511,694 | 13,558 |
| Deutsche Post Global Mail (Belgium) nv | Belgium, Brussels | 100.00 | eur | 1,099 | 29 |
| Deutsche Post Global Mail (France) sas | France, Issy-les-Moulineaux | 100.00 | eur | 2,172 | –308 |
Reported ifrs data before profi t transfer
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Deutsche Post Global Mail (Netherlands) b. v. | Netherlands, Utrecht | 100.00 | eur | 3,987 | 1,143 |
| Deutsche Post Global Mail (Switzerland) ag | Switzerland, Basel | 100.00 | eur | 375 | 160 |
| Deutsche Post Global Mail (uk) Limited 5) | United Kingdom, Croydon | 100.00 | eur | 7,992 | 0 |
| Deutsche Post Immobilien GmbH | Germany, Bonn | 100.00 | eur | 3,377 | –3,373 |
| Deutsche Post Immobilienentwicklung Grundstücks gesellschaft mbH & Co. Logistikzentren kg |
Germany, Bonn | 100.00 | eur | – 40,254 | 1,564 |
| Deutsche Post Insurance Limited | Ireland, Dublin | 100.00 | eur | 11,014 | 3,466 |
| Deutsche Post International b. v.1) | Netherlands, Maastricht | 100.00 | eur | 2,486,066 | 504,394 |
| TheNetherlands622009 b. v.1) | Netherlands, Apeldoorn | 100.00 | eur | – | – |
| Deutsche Post Investments GmbH | Germany, Bonn | 100.00 | eur | 657,563 | 2 |
| Deutsche Post it brief GmbH | Germany, Bonn | 100.00 | eur | 13,563 | 146 |
| Deutsche Post it Services GmbH | Germany, Bonn | 100.00 | eur | 49,575 | 12,199 |
| Deutsche Post Mail Distribution (Netherlands) b. v. | Netherlands, Apeldoorn | 100.00 | eur | – 8,092 | 53 |
| Deutsche Post Real Estate Germany GmbH | Germany, Bonn | 100.00 | eur | –1,591 | –16,855 |
| Deutsche Post Reinsurance s. a. | Luxembourg, Luxembourg | 100.00 | eur | 2,240 | 0 |
| Deutsche Post Selekt Mail Nederland c. v.1) | Netherlands, Utrecht | 100.00 | eur | – 62,178 | –24,344 |
| sw Post Beheer b. v. 1) | Netherlands, Utrecht | 100.00 | eur | – | – |
| Deutsche Post Shop Essen GmbH | Germany, Essen | 100.00 | eur | 25 | 17 |
| Deutsche Post Shop Hannover GmbH | Germany, Hanover | 100.00 | eur | 25 | 9 |
| Deutsche Post Shop München GmbH | Germany, Munich | 100.00 | eur | 25 | 50 |
| Deutsche Post Technischer Service GmbH | Germany, Bonn | 100.00 | eur | 2,189 | 2,224 |
| Deutsche Post Zahlungsdienste GmbH | Germany, Bonn | 100.00 | eur | 1,000 | – 804 |
| dhl Supply Chain (Finland) Oy | Finland, Vantaa | 100.00 | eur | 4,356 | 89 |
| dhl (Cyprus) Ltd. | Cyprus, Nikosia | 100.00 | eur | 3,148 | 341 |
| dhl Air Limited | United Kingdom, Hounslow | 100.00 | eur | 22,541 | 3,315 |
| dhl AirWays GmbH | Germany, Cologne | 100.00 | eur | –3,288 | 60 |
| dhl Automotive GmbH | Germany, Hamburg | 100.00 | eur | 4,614 | – 651 |
| dhl Automotive Offenau GmbH | Germany, Bonn | 100.00 | eur | 61 | – 896 |
| dhl Automotive s. r. o. | Czech Republic, Prague | 100.00 | eur | 8,843 | 296 |
| dhl Aviation (France) s a s | France, Roissy-en-France | 100.00 | eur | 1,424 | – 468 |
| dhl Aviation (Italy) S. r. l. | Italy, Milan | 100.00 | eur | 3,889 | 266 |
| dhl Aviation (Netherlands) b. v. | Netherlands, Amersfoort | 100.00 | eur | 4,065 | 151 |
| dhl Aviation (uk) Limited | United Kingdom, Hounslow | 100.00 | eur | 18,079 | 623 |
| dhl Aviation nv / sa | Belgium, Zaventem | 99.99 | eur | 44,012 | 706 |
| dhl Bwlog GmbH | Germany, Bonn | 100.00 | eur | 21,076 | 13 |
| dhl Distribution Holdings (uk) Limited | United Kingdom, Hounslow | 100.00 | eur | 51,524 | – 48,705 |
| dhl Ekspres (Slovenija), d.o.o. | Slovenia, Trzin | 100.00 | eur | 153 | 179 |
| dhl Energy Performance & Management Limited | United Kingdom, Bracknell | 100.00 | eur | – 6,008 | –1,737 |
| dhl Estonia as | Estonia, Tallinn | 100.00 | eur | 6,290 | 693 |
| dhl Exel Central Services eurl | France, Roissy-en-France | 100.00 | eur | –359 | –2,191 |
| dhl Exel Slovakia, s. r. o. | Slovakia, Bratislava | 100.00 | eur | – 604 | –2,287 |
| dhl Exel Supply Chain (Denmark) a / s | Denmark, Kastrup | 100.00 | eur | –19,797 | 1,247 |
| dhl Exel Supply Chain (Poland) Sp. z o. o. | Poland, Warsaw | 100.00 | eur | –2,495 | –1,012 |
| dhl Exel Supply Chain (Sweden) ab | Sweden, Stockholm | 100.00 | eur | 10,460 | –3,342 |
| dhl Exel Supply Chain Euskal-Log, s. l. u. | Spain, Barcelona | 100.00 | eur | 6,807 | 875 |
| dhl Exel Supply Chain Hungary Limited | Hungary, Ullo | 100.00 | eur | 573 | –121 |
| dhl Exel Supply Chain Portugal Lda. | Portugal, Alverca | 100.00 | eur | 7,980 | –139 |
| dhl Exel Supply Chain Spain, s. l. u. | Spain, Madrid | 100.00 | eur | 19,763 | – 6,458 |
| dhl Exel Supply Chain Trade (Poland) Sp. z o. o. | Poland, Warsaw | 100.00 | eur | 585 | 117 |
| dhl Exel Supply Chain Trollhättan ab | Sweden, Stockholm | 100.00 | eur | 4,617 | 1,777 |
| dhl Express (Austria) GmbH | Austria, Guntramsdorf | 100.00 | eur | –1,109 | – 5,204 |
| dhl Express (Belgium) nv | Belgium, Ternat | 100.00 | eur | 11,824 | 3,448 |
| dhl Express (Czech Republic) s. r. o. | Czech Republic, Ostrava | 100.00 | eur | 6,491 | –1,274 |
| dhl Express (Denmark) a / s | Denmark, Broendby | 100.00 | eur | 79,179 | 4,388 |
| dhl Express (France) sas | France, Roissy-en-France | 100.00 | eur | – 40,118 | –312,629 |
| dhl Express (Hellas) s. a. | Greece, Athens | 100.00 | eur | – 698 | –1,164 |
| dhl Express (Iceland) ehf | Iceland, Reykjavik | 100.00 | eur | 95 | 43 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Express (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | – 609 | – 67 |
| dhl Express (Italy) S. r. l. | Italy, Milan | 100.00 | eur | 49,782 | 141 |
| dhl Express (Luxembourg) s. a. | Luxembourg, Contern | 100.00 | eur | 4,238 | –396 |
| dhl Express (Netherlands) b. v. | Netherlands, Amersfoort | 100.00 | eur | –15,282 | 3,476 |
| dhl Express (Norway) as | Norway, Oslo | 100.00 | eur | 11,840 | 264 |
| dhl Express (Poland) Sp. z o. o. | Poland, Warsaw | 100.00 | eur | 59,076 | 25,119 |
| dhl Express (Schweiz) ag | Switzerland, Basel | 100.00 | eur | 15,299 | 2,412 |
| dhl Express (Slovakia), spol. s r. o. | Slovakia, Bratislava | 100.00 | eur | 6,279 | 520 |
| dhl Express (uk) Ltd. | United Kingdom, Hounslow | 100.00 | eur | –28,958 | 826 |
| dhl Express Bulgaria eood | Bulgaria, Sofi a | 100.00 | eur | 2,853 | 1,026 |
| dhl Express Germany GmbH | Germany, Bonn | 100.00 | eur | 1,209 | 42,447 |
| dhl Express Hungary Forwarding and Services llc | Hungary, Budapest | 100.00 | eur | 12,377 | 330 |
| dhl Express Iberia s. l.1) | Spain, San Sebastián | 100.00 | eur | 182,570 | 30,494 |
| Denalur spe, s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express a Coruña 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 Gipuzkoa Spain s. l.1) | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Girona 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 Illes Balears Spain, s. l.1) | Spain, Barcelona | 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, Malaga | 100.00 | eur | – | – |
| dhl Express Navarra Spain, s. l.1) | Spain, Navarra | 100.00 | eur | – | – |
| dhl Express Pontevedra Spain s. l.1) | Spain, Vigo | 100.00 | eur | – | – |
| dhl Express Servicios s. l.1) | |||||
| Spain, San Sebastián | 100.00 | eur | – | – | |
| dhl Express Sevilla Spain s. l.1) | Spain, Sevilla | 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, Zaragoza | 100.00 | eur | – | – |
| dhl Pony Express Limited 1), 5) | United Kingdom, Hounslow | 100.00 | eur | 6,138 | 0 |
| dhl @ home Limited 1), 5) | United Kingdom, Hounslow | 100.00 | eur | – | – |
| Rosier Distribution Limited 1), 5) | United Kingdom, Hounslow | 100.00 | eur | – | – |
| Russel Davies Properties Limited 1), 5) | United Kingdom, Hounslow | 100.00 | eur | – | – |
| Russell Davies Limited 1), 5) | United Kingdom, Hounslow | 100.00 | eur | – | – |
| dhl Express Macedonia d. o. o. e. l. | Macedonia, Skopje | 100.00 | eur | 982 | 89 |
| dhl Express Portugal, Lda. | Portugal, Moreira da Maia | 100.00 | eur | 18,155 | 3,413 |
| dhl Express Services (France) sas | France, Roissy-en-France | 100.00 | eur | – 8,308 | –7,591 |
| dhl Fashion (France) s. a. s. | France, La Plaine-Saint-Denis | 100.00 | eur | –1,396 | – 6,973 |
| dhl Finance Services b. v. | Netherlands, Maastricht | 100.00 | eur | 24,197 | 2,644 |
| dhl FoodServices GmbH | Germany, Frankfurt am Main | 100.00 | eur | 184 | –1,442 |
| dhl Freight (Belgium) nv | Belgium, Grimbergen | 100.00 | eur | 5,158 | 918 |
| dhl Freight (France) sas | France, Marne-la-Valle | 100.00 | eur | 2,509 | –7,738 |
| dhl Freight (Netherlands) b. v. | Netherlands, Amersfoort | 100.00 | eur | – 5,535 | –1,805 |
| dhl Freight (Sweden) ab | Sweden, Stockholm | 100.00 | eur | 28,830 | 1,963 |
| dhl Freight and Contract Logistics (uk) Limited | United Kingdom, Milton Keynes | 100.00 | eur | – 4,817 | – 4,510 |
Reported ifrs data before profi t transfer
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Freight Finland Oy | Finland, Vantaa | 100.00 | eur | 13,458 | – 849 |
| dhl Freight Germany Holding GmbH | Germany, Düsseldorf | 100.00 | eur | – 54,226 | –15,041 |
| dhl Freight GmbH | Germany, Düsseldorf | 100.00 | eur | 7,805 | – 9,942 |
| dhl Freight Hungary Forwarding and Logistics Ltd. | Hungary, Budapest | 100.00 | eur | –1,700 | –1,747 |
| dhl Freight Services (Netherlands) b. v. | Netherlands, Tiel | 100.00 | eur | 2,623 | 4,703 |
| dhl Freight Spain, s. l. | Spain, San Sebastián | 100.00 | eur | 6,549 | 1,496 |
| dhl gbs (uk) Limited | United Kingdom, Bracknell | 100.00 | eur | 7,361 | 550 |
| dhl Global Forwarding (Austria) GmbH | Austria, Vienna | 100.00 | eur | 20,373 | 4,689 |
| dhl Global Forwarding (Belgium) nv | Belgium, Zaventem | 100.00 | eur | 22,187 | 4,231 |
| dhl Global Forwarding (cz ) s. r. o. | Czech Republic, Prague | 100.00 | eur | 24,061 | 4,020 |
| dhl Global Forwarding (Denmark) a / s | Denmark, Kastrup | 100.00 | eur | 11,671 | – 574 |
| dhl Global Forwarding (Finland) Oy | Finland, Vantaa | 100.00 | eur | 4,422 | 2,104 |
| dhl Global Forwarding (France) sas | France, La Plaine-Saint-Denis | 100.00 | eur | 48,878 | 7,329 |
| dhl Global Forwarding (Ireland) Limited | Ireland, Dublin | 100.00 | eur | 6,754 | 2,113 |
| dhl Global Forwarding (Italy) S. p. A. | Italy, Milan | 100.00 | eur | 47,910 | 17,734 |
| dhl Global Forwarding (Luxembourg) s. a. | Luxembourg, Luxembourg | 90.00 | eur | 1,362 | 601 |
| dhl Global Forwarding (Netherlands) b. v. | Netherlands, Hoofddorp | 100.00 | eur | 24,934 | 10,208 |
| dhl Global Forwarding (Norway) as | Norway, Gardemoen | 100.00 | eur | 1,760 | – 498 |
| dhl Global Forwarding (sweden) ab | Sweden, Kista | 100.00 | eur | 14,183 | 3,547 |
| dhl Global Forwarding (uk) Limited | United Kingdom, Staines | 100.00 | eur | 141,437 | 30,153 |
| dhl Global Forwarding GmbH | Germany, Frankfurt am Main | 100.00 | eur | 1,775 | 29,193 |
| dhl Global Forwarding Hellas s. a. of International Transportation and Logistics |
Greece, Piraeus | 100.00 | eur | 5,548 | –1,115 |
| dhl Global Forwarding Hungary Kft. | Hungary, Vecses | 100.00 | eur | 20,450 | 1,998 |
| dhl Global Forwarding Management GmbH | Germany, Bonn | 100.00 | eur | –2,435 | – 6,238 |
| dhl Global Forwarding Portugal, Lda. | Portugal, Moreira da Maia | 100.00 | eur | 3,402 | 1,101 |
| dhl Global Forwarding Sp. z o. o. | Poland, Lodz | 100.00 | eur | 12,044 | 4,517 |
| dhl Global Forwarding Spain, s. l. u. | Spain, Madrid | 100.00 | eur | 18,083 | 5,454 |
| dhl Global Mail (uk) Limited | United Kingdom, Bracknell | 100.00 | eur | –15,317 | –2,045 |
| dhl Global Mail Nordic ab | Sweden, Stockholm | 100.00 | eur | 657 | 455 |
| dhl Global Mail ooo | Russia, Moscow | 100.00 | eur | 27 | – 447 |
| dhl Global Management GmbH | Germany, Bonn | 100.00 | eur | 1,351,975 | –1,336 |
| dhl Group Services nv / sa | Belgium, Zaventem | 99.96 | eur | 1,367 | 0 |
| dhl Holding (France) sas | France, Roissy-en-France | 100.00 | eur | 368,532 | 12,065 |
| dhl Holding (Italy) S. r. l. | Italy, Milan | 100.00 | eur | 240,577 | 15,318 |
| dhl Holdings (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 93 | 0 |
| dhl Home Delivery GmbH | Germany, Hamburg | 100.00 | eur | 5,094 | –16,330 |
| dhl Hub Leipzig GmbH | Germany, Schkeuditz | 100.00 | eur | –110 | 766 |
| dhl Information Services (Europe) s. r. o. | Czech Republic, Prague | 100.00 | eur | 89,641 | 3,840 |
| dhl Inter Limited 5) | United Kingdom, Moss End | 100.00 | eur | 0 | 0 |
| dhl International (Albania) Ltd. | Albania, Tirana | 100.00 | eur | 589 | 208 |
| dhl International (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 1,049 | 1 |
| dhl International (Romania) s. r. l. | Romania, Bucharest | 100.00 | eur | 2,539 | – 473 |
| dhl International (uk) Limited | United Kingdom, Hounslow | 100.00 | eur | 47,045 | 2,919 |
| dhl International (Ukraine) jsc | Ukraine, Kiev | 99.99 | eur | 2,184 | 413 |
| dhl International d. o. o. | Croatia, Zagreb | 100.00 | eur | 2,421 | 312 |
| dhl International ab 8) | Sweden, Stockholm | 100.00 | eur | 4,082 | 0 |
| dhl International b. v. 5) | Netherlands, Amersfoort | 100.00 | eur | 26,664 | 0 |
| dhl International Express (France) sas | France, Roissy-en-France | 100.00 | eur | 37,969 | 20,737 |
| dhl International GmbH | Germany, Bonn | 100.00 | eur | 1,950,949 | –7,378 |
| dhl International Ltd. | Malta, Luqa | 100.00 | eur | 436 | 134 |
| dhl International nv / sa | Belgium, Diegem | 100.00 | eur | 9,010 | 1,386 |
| dhl International zao, Russia | Russia, Moscow | 100.00 | eur | 25,862 | 33,691 |
| dhl International-Sarajevo d. o. o. | Bosnia and Herzegovina, Sarajevo | 100.00 | eur | 359 | 201 |
| dhl Investments Limited | United Kingdom, St. Helier | 100.00 | eur | –29,716 | –3,294 |
| dhl Latvia sia | Latvia, Riga | 100.00 | eur | –347 | 215 |
| dhl Logistica d. o. o. | Slovenia, Brnik | 100.00 | eur | 895 | 202 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Logistics (Schweiz) ag | Switzerland, Basel | 100.00 | eur | 33,817 | 9,661 |
| dhl Logistics (Slovakia), spol. s r. o. | Slovakia, Senec | 100.00 | eur | 3,519 | 2,239 |
| dhl Logistics (Ukraine) Ltd.1) | Ukraine, Kiev | 100.00 | eur | 144 | 0 |
| ooo asg Rad Transport Russia 1) | Russia, Saint Petersburg | 100.00 | eur | – | – |
| dhl Logistics GmbH | Germany, Hamburg | 100.00 | eur | 453 | –13,124 |
| dhl Logistics ooo | Russia, Chimki | 100.00 | eur | 135 | 1,216 |
| dhl Logistics s. r. l. | Romania, Bucharest | 100.00 | eur | 882 | 151 |
| dhl Logistik Service GmbH | Austria, Vienna | 100.00 | eur | –3,083 | – 4,462 |
| dhl Management (Schweiz) ag | Switzerland, Basel | 100.00 | eur | 22,488 | –3,455 |
| dhl Management Services Limited | United Kingdom, Hounslow | 100.00 | eur | 195 | 31 |
| dhl Medjunarodni Vazdusni Ekspres d. o. o. | Serbia, Belgrade | 100.00 | eur | 2,992 | 618 |
| dhl Nordic ab | Sweden, Stockholm | 100.00 | eur | 65,875 | 1,179 |
| dhl Packaging s. r. o. | Czech Republic, Pohořelice | 70.00 | eur | –230 | 330 |
| dhl Pipelife Logistik GmbH | Austria, Vienna | 100.00 | eur | 196 | –1,958 |
| dhl Quality Cargo as | Norway, Oslo | 100.00 | eur | 1,355 | –396 |
| dhl Rail ab | Sweden, Trelleborg | 100.00 | eur | 164 | – 914 |
| dhl Services Limited | United Kingdom, Milton Keynes | 100.00 | eur | 91,895 | 93,205 |
| dhl Shoe Logistics s. r. o. | Czech Republic, Pohořelice | 100.00 | eur | 1,143 | 187 |
| dhl Solutions (Belgium) nv | Belgium, Mechelen | 100.00 | eur | 28,403 | 1,080 |
| dhl Solutions (France) sas | France, La Plaine-Saint-Denis | 100.00 | eur | 2,489 | 521 |
| dhl Solutions Fashion GmbH | Germany, Essen | 100.00 | eur | 64 | 81 |
| dhl Solutions GmbH | Germany, Hamburg | 100.00 | eur | 41,582 | –14,195 |
| dhl Solutions Großgut GmbH | Germany, Frankfurt am Main | 100.00 | eur | 937 | 3,475 |
| dhl Solutions Retail GmbH | Germany, Unna | 100.00 | eur | 4,128 | 7,858 |
| dhl Solutions s. r. o. | Czech Republic, Ostrava | 100.00 | eur | 6,271 | 313 |
| dhl Stenvreten Kommanditbolag | Sweden, Stockholm | 100.00 | eur | –1,704 | 0 |
| dhl Stock Express sas | France, La Plaine-Saint-Denis | 100.00 | eur | –21,177 | – 6,994 |
| dhl Supply Chain (Belgium) nv | Belgium, Mechelen | 100.00 | eur | 8,041 | –2,695 |
| dhl Supply Chain (Ireland) Limited | Ireland, Dublin | 100.00 | eur | 12,656 | –2,148 |
| dhl Supply Chain (Italy) S. p. A. | Italy, Milan | 100.00 | eur | 37,731 | 2,648 |
| dhl Supply Chain (Netherlands) b. v. | Netherlands, Amersfoort | 100.00 | eur | 97,693 | 5,489 |
| dhl Supply Chain (Norway) as | Norway, Oslo | 100.00 | eur | 2,481 | 1,273 |
| dhl Supply Chain Management (Benelux) b. v. | Netherlands, Amersfoort | 100.00 | eur | –28,799 | 1,708 |
| dhl Supply Chain Management GmbH | Germany, Bonn | 100.00 | eur | 25 | –23,474 |
| dhl Supply Chain, s. r. o. | Czech Republic, Pohořelice | 100.00 | eur | 6,627 | – 975 |
| dhl Technical Distribution b. v. | Netherlands, Veghel | 100.00 | eur | –2,091 | –32 |
| dhl Trade Fairs & Events GmbH | Germany, Frankfurt am Main | 100.00 | eur | 515 | –3,437 |
| dhl Trade Fairs and Events (uk) Limited | United Kingdom, Staines | 85.00 | eur | 218 | 84 |
| dhl Vehicle Services (uk) Limited | United Kingdom, Hounslow | 100.00 | eur | –1,842 | –106 |
| dhl Vertriebs GmbH & Co. ohg | Germany, Bonn | 100.00 | eur | 79,472 | 46,200 |
| dhl Verwaltungs GmbH | Germany, Bonn | 100.00 | eur | –39 | 370 |
| dhl Voigt International GmbH | Germany, Neumünster | 51.00 | eur | 1,328 | 1,032 |
| dhl Wahl International GmbH | Germany, Bielefeld | 51.00 | eur | 1,006 | 366 |
| dhl Worldwide Express Logistics nv / sa | Belgium, Diegem | 100.00 | eur | 17,795 | 1,181 |
| dhl Worlwide Network nv / sa | Belgium, Diegem | 100.00 | eur | 19,536 | 1,111 |
| dz Specialties b. v. | Netherlands, Amersfoort | 100.00 | eur | 79,994 | 10,410 |
| European Air Transport Leipzig GmbH | Germany, Schkeuditz | 100.00 | eur | –2,222 | 4,352 |
| Exel (Africa) Limited | United Kingdom, Bracknell | 100.00 | eur | –1,861 | –255 |
| Exel (European Services Centre) Ltd. | Ireland, Dublin | 100.00 | eur | 0 | –27 |
| Exel (Meinerzhagen) GmbH | Germany, Unna | 100.00 | eur | 200 | 1 |
| Exel (Wommelgem) nv | Belgium, Wommelgem | 100.00 | eur | –3,417 | – 66 |
| Exel Beziers sarl | France, Paris | 100.00 | eur | –320 | – 94 |
| Exel Chenas sarl | France, Roissy-en-France | 100.00 | eur | 53 | –13 |
| Exel Czech Republic s. r. o 5) | Czech Republic, Prague | 100.00 | eur | 393 | 0 |
Reported ifrs data before profi t transfer
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Exel de Portugal Transitarios Lda. | Portugal, Lisbon | 100.00 | eur | 90 | –3 |
| Exel Eiendom as | Norway, Oslo | 100.00 | eur | 12,136 | 324 |
| Exel Environmental Developments Limited | United Kingdom, Bracknell | 100.00 | eur | 2 | 1 |
| Exel Europe Limited | United Kingdom, Milton Keynes | 100.00 | eur | 346,624 | 47,872 |
| Exel Finance (1986) Limited 5) | United Kingdom, Bedford | 100.00 | eur | 0 | 0 |
| Exel Finance Limited | United Kingdom, Bedford | 100.00 | eur | 358 | 61 |
| Exel France sa | France, Roissy-en-France | 100.00 | eur | 143,338 | 2,844 |
| Exel Freight Management (uk) Limited 5) | United Kingdom, Bracknell | 100.00 | eur | 7,252 | 0 |
| Exel Freight sas | France, Roissy-en-France | 100.00 | eur | 33,061 | – 62 |
| Exel Gallieni sarl | France, Roissy-en-France | 100.00 | eur | –1,596 | – 604 |
| Exel Gironde sa | France, Arles | 99.96 | eur | 3,243 | –1,314 |
| Exel Group Holdings (Nederland) b. v. | Netherlands, Veghel | 100.00 | eur | 50,697 | – 8,859 |
| Exel Head Offi ce Services Limited | United Kingdom, Bedford | 100.00 | eur | 0 | 0 |
| Exel Healthcare (Belgium) nv | Belgium, Mechelen | 100.00 | eur | 56,629 | –258 |
| Exel Holdings Limited | United Kingdom, Bedford | 100.00 | eur | 713,754 | 33,988 |
| Exel Insurance Limited | United Kingdom, St. Peter Port | 100.00 | eur | 7,765 | 155 |
| Exel International Holdings (Belgium) nv | Belgium, Mechelen | 100.00 | eur | 87,131 | – 407 |
| Exel International Holdings (Netherlands 1) b. v. | Netherlands, Veghel | 100.00 | eur | 695,660 | –202 |
| Exel International Holdings (Netherlands 2) b. v. | Netherlands, Veghel | 100.00 | eur | 1,063,458 | –78,012 |
| Exel International Holdings (Netherlands 5) b. v. | Netherlands, Veghel | 100.00 | eur | 27,260 | –193 |
| Exel Investments Limited | United Kingdom, Bracknell | 100.00 | eur | 200,896 | 32,977 |
| Exel Investments Netherlands b. v. | Netherlands, Veghel | 100.00 | eur | 225 | 0 |
| Exel Lille sarl | France, Roissy-en-France | 100.00 | eur | –1,217 | – 826 |
| Exel Limited | United Kingdom, Bracknell | 100.00 | eur | 909,386 | 62,901 |
| Exel Logistics (Northern Ireland) Limited | United Kingdom, Mallusk | 100.00 | eur | 5,173 | 167 |
| Exel Logistics Limited | United Kingdom, Milton Keynes | 100.00 | eur | 28,625 | 1,467 |
| Exel Logistics Property Limited | United Kingdom, Bedford | 100.00 | eur | 57,593 | 3,496 |
| Exel Loire sarl | France, Roissy-en-France | 100.00 | eur | 2,167 | – 493 |
| Exel Management Services No 2 Limited 5) | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Exel Overseas Limited | United Kingdom, Bracknell | 100.00 | eur | 157,169 | 6,086 |
| Exel sarl | France, Erstein | 100.00 | eur | 221 | 55 |
| Exel Scotland Limited | United Kingdom, Glasgow | 94.17 | eur | 2,497 | 28 |
| Exel Services Logistiques sas | France, Vitry-sur-Seine | 100.00 | eur | 8,207 | –1,845 |
| Exel Supply Chain Solutions Ltd. | Ireland, Dublin | 100.00 | eur | –320 | 1,474 |
| Exel Sweden ab | Sweden, Stockholm | 100.00 | eur | 106 | –172 |
| Exel Transport France sasu | France, Vitry-sur-Seine | 100.00 | eur | 1,460 | –241 |
| Exel uk Limited | United Kingdom, Bracknell | 100.00 | eur | 48,055 | 5,817 |
| f. x. Coughlin b. v. | Netherlands, Veghel | 100.00 | eur | 2,349 | 731 |
| f. x. Coughlin (u. k.) Limited | United Kingdom, Bracknell | 100.00 | eur | 2,440 | – 429 |
| fact Denmark a / s | Denmark, Kastrup | 100.00 | eur | 633 | 86 |
| Fashion Logistics Limited | United Kingdom, Bracknell | 100.00 | eur | 1,023 | 635 |
| First Mail Düsseldorf GmbH | Germany, Düsseldorf | 100.00 | eur | –2,077 | –2,509 |
| Formation e-Document Solutions Limited | United Kingdom, London | 100.00 | eur | 911 | 490 |
| Freight Indemnity and Guarantee Company Limited | United Kingdom, Bedford | 100.00 | eur | 19 | 0 |
| Gerlach & Co Internationale Expediteurs b. v. | Netherlands, Venlo | 100.00 | eur | 3,400 | 293 |
| Gerlach & Co. nv | Belgium, Antwerp | 100.00 | eur | 5,171 | 1 |
| Gerlach ag | Switzerland, Basel | 100.00 | eur | 6,820 | 5,089 |
| Gerlach Customs Services eood | Bulgaria, Sofi a | 100.00 | eur | –28 | –30 |
| Gerlach European Customs Services, spol. s r. o. | Slovakia, Senec | 100.00 | eur | 156 | 7 |
| Gerlach Sp. z o. o. | Poland, Gluchowo / Komorniki | 100.00 | eur | 793 | 165 |
| Gerlach Spol s. r. o. | Czech Republic, Rudna u Prahy | 100.00 | eur | 2,607 | 1,715 |
| Gerlach Zolldienste GmbH | Germany, Frankfurt am Main | 100.00 | eur | 159 | 548 |
| Giorgio Gori S. r. l. | Italy, Collesalvetti (Livorno) | 60.00 | eur | 19,030 | 7,460 |
| Giorgio Gori (France) sas | France, Châtenoy-le-Royal | 100.00 | eur | 1,169 | 200 |
| Global Mail (Austria) Ges. m. b. H. | Austria, Vienna | 100.00 | eur | 1,652 | –181 |
| Gori Iberia s. l. | Spain, Barcelona | 100.00 | eur | 1,506 | 750 |
| Gori Iberia Transitarios, Limitada | Portugal, Matosinhos | 60.00 | eur | 846 | 494 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Güll GmbH | Germany, Lindau (Lake Constance) | 51.00 | eur | 3,121 | 441 |
| Henderson Line Limited 5) | United Kingdom, Glasgow | 100.00 | eur | 366 | 0 |
| Higgs International Limited | United Kingdom, Bracknell | 100.00 | eur | 12,740 | 320 |
| Historia Sp. z o. o. 8) | Poland, Warsaw | 100.00 | eur | –162 | 0 |
| Hull, Blyth (Angola) Limited | United Kingdom, Bracknell | 100.00 | eur | – 4,964 | –1,224 |
| Hyperion Properties Limited 5) | United Kingdom, Bedford | 100.00 | eur | – 5,191 | 0 |
| Inside Track Automotive Limited 5) | United Kingdom, Bracknell | 100.00 | eur | 3,012 | 0 |
| Integrated Logistics Management Belgium b. v. | Netherlands, Veghel | 100.00 | eur | 1,570 | – 5 |
| Interlanden b. v.1) | Netherlands, Apeldoorn | 100.00 | eur | –28,504 | –28,321 |
| Wegener Transport b. v.1) | Netherlands, Apeldoorn | 70.00 | eur | – | – |
| interServ Gesellschaft für Personal- und Berater | |||||
| dienstleitungen mbH | Germany, Bonn | 100.00 | eur | 13,372 | – 58,473 |
| intexo Holding (Deutschland) GmbH | Germany, Hünxe | 100.00 | eur | 3,572 | 4 |
| itg Global Logistics b. v. | Netherlands, Schiphol | 100.00 | eur | 619 | –335 |
| itg GmbH Internationale Spedition und Logistik | Germany, Schwaig / Oberding | 100.00 | eur | 875 | –2,772 |
| itg Internationale Spedition GmbH | Austria, Vienna | 100.00 | eur | 51 | 26 |
| Joint Retail Logistics Limited 5) | United Kingdom, Bracknell | 100.00 | eur | 875 | 0 |
| Kampton | United Kingdom, Bedford | 100.00 | eur | –74 | –17 |
| Karukera Transit sas | France, Pointe-à-Pitre | 100.00 | eur | 1,353 | – 54 |
| Kelpo Kuljetus Fi Oy | Finland, Vantaa | 100.00 | eur | –1,676 | – 44 |
| Laible ag Speditionen | Switzerland, Schaffhausen | 100.00 | eur | 1,244 | 1,119 |
| Langtexo Logistik Verwaltungs GmbH | Germany, Duisburg | 100.00 | eur | 948 | – 62 |
| llc Williams Lea | Russia, Moscow | 100.00 | eur | –19 | –104 |
| MailMerge Nederland b. v. 5) | Netherlands, Wormerveer | 100.00 | eur | 157 | 0 |
| McGregor Cory Limited | United Kingdom, Bracknell | 100.00 | eur | 16,449 | –709 |
| McGregor Gow & Holland (1996) Limited | United Kingdom, Bracknell | 100.00 | eur | 272 | 0 |
| McGregor Sea & Air Services Limited | United Kingdom, Bracknell | 100.00 | eur | 347 | 0 |
| Mercury Airspeed International b. v. | Netherlands, Nieuw Vennep | 100.00 | eur | – 834 | –12 |
| Mercury Holdings Limited 5) | United Kingdom, Bracknell | 100.00 | eur | 11,026 | 0 |
| msas Limited | United Kingdom, Bracknell | 100.00 | eur | –3,577 | 0 |
| Multimar Seefrachtenkontor Gesellschaft m.b.H. | Austria, Vienna | 100.00 | eur | 278 | 0 |
| National Carriers Limited | United Kingdom, Bedford | 100.00 | eur | 5,963 | 82 |
| nfc International Holdings (Ireland) | Ireland, Dublin | 100.00 | eur | 38,584 | 10,000 |
| nugg. ad ag predictive behavioral targeting | Germany, Berlin | 95.99 | eur | 274 | –28 |
| Ocean Group Investments Limited | United Kingdom, Bracknell | 100.00 | eur | 23,612 | –2,643 |
| Ocean Overseas (Luxembourg) Sarl | Luxembourg, Luxembourg | 100.00 | eur | 36,461 | 16,494 |
| Ocean Overseas Holdings Limited | United Kingdom, Bracknell | 100.00 | eur | 417,227 | 11,628 |
| Orbital Secretaries Limited 5) | United Kingdom, Hounslow | 100.00 | eur | 0 | 0 |
| Outrack Credit (uk) Limited 5) | United Kingdom, Hounslow | 100.00 | eur | 1 | 0 |
| Packaging Datastore Limited 5) | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Packaging Management Group Limited 5) | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Pharma Logistics b. v. | Netherlands, Rotterdam | 100.00 | eur | 343 | 1 |
| Pharma Logistics nv | Belgium, Mechelen | 100.00 | eur | 35,075 | 2,580 |
| Power Europe (Cannock) Limited | United Kingdom, Bracknell | 100.00 | eur | 368 | 205 |
| Power Europe (Doncaster) Limited | United Kingdom, Bracknell | 100.00 | eur | 483 | 363 |
| Power Europe Development Limited 5) | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Power Europe Development No. 3 Limited | United Kingdom, Bracknell | 100.00 | eur | – 50 | –32 |
| Power Europe Limited | United Kingdom, Bracknell | 100.00 | eur | –1,287 | 2,085 |
| Power Europe Operating Limited | United Kingdom, Bracknell | 100.00 | eur | 8,858 | 2,219 |
| ppl cz s. r. o. | Czech Republic, Prague | 100.00 | eur | 83,808 | 7,795 |
| Presse-Service Güll GmbH | Switzerland, St. Gallen | 51.00 | eur | 856 | 317 |
| rdc Properties Limited | United Kingdom, Bracknell | 100.00 | eur | 6,604 | 89 |
| Realcause Limited | United Kingdom, Bedford | 100.00 | eur | 461,896 | –3,275 |
| Rosier Tankers Limited 5) | United Kingdom, Hounslow | 100.00 | eur | –3,109 | 0 |
| Ross House (al) Limited | United Kingdom, Bracknell | 100.00 | eur | 348 | 0 |
Reported ifrs data before profi t transfer
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Scherbauer Spedition GmbH 7b) | Germany, Neutraubling | 50.00 | eur | 3,687 | 1,196 |
| Selektvracht b. v. | Netherlands, Utrecht | 100.00 | eur | 12,167 | 4,133 |
| sermat Services Maritimes Aériens et Transit s a | France, La Garenne Colombes | 100.00 | eur | 1,736 | –189 |
| sgb Speditionsgesellschaft mbH | Germany, Munich | 100.00 | eur | 590 | 274 |
| Speedmail International Limited 5) | United Kingdom, London | 100.00 | eur | 10,124 | 0 |
| StarBroker ag | Switzerland, Basel | 100.00 | eur | 26,262 | 11,400 |
| Sydney Cooper (Distribution) Ltd. | Ireland, Dublin | 100.00 | eur | 883 | – 623 |
| T&B Whitwood Holdings Limited | United Kingdom, Bracknell | 100.00 | eur | 4 | 195 |
| Tankfreight (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 52 | – 621 |
| tbmm Holdings Limited | United Kingdom, Bracknell | 100.00 | eur | 40 | 0 |
| The Stationery Offi ce Group Limited | United Kingdom, London | 100.00 | eur | 19,330 | 0 |
| The Stationery Offi ce Holdings Limited | United Kingdom, London | 100.00 | eur | 84,190 | 194,339 |
| The Stationery Offi ce Limited | United Kingdom, London | 100.00 | eur | 144,427 | 15,021 |
| Tibbett & Britten Group (Ireland) Limited | Ireland, Dublin | 100.00 | eur | 4,954 | –37 |
| Tibbett & Britten Group Limited | United Kingdom, Bracknell | 100.00 | eur | 26,596 | 69 |
| Tibbett & Britten International Holdings Limited 5), 8) | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Tibbett & Britten International Limited | United Kingdom, Bracknell | 100.00 | eur | 2,625 | 212 |
| Tradeteam Limited | United Kingdom, Bedford | 50.10 | eur | 35,082 | 11,437 |
| Traditrade Holding s. a. | Luxembourg, Luxembourg | 100.00 | eur | 22 | 0 |
| Transfl ash McGregor (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | –21,615 | – 453 |
| Transportbedrijf H. de Haan Vianen b. v. 5) | Netherlands, Utrecht | 100.00 | eur | 4,674 | 0 |
| The Stationery Offi ce Enterprises Limited | United Kingdom, London | 100.00 | eur | – 44,773 | –1,181 |
| tso Holdings a Limited | United Kingdom, London | 100.00 | eur | 19,248 | 208,994 |
| tso Holdings b Limited | United Kingdom, London | 100.00 | eur | 35,001 | 224,651 |
| tso Property Limited | United Kingdom, London | 100.00 | eur | 11,567 | 577 |
| uab dhl Lietuva | Lithuania, Vilnius | 100.00 | eur | 2,416 | 448 |
| Véron Grauer ag | Switzerland, Basel | 100.00 | eur | 1,630 | 1,258 |
| Vetsch ag, Internationale Transporte 1) | Switzerland, Buchs | 100.00 | eur | 1,286 | 585 |
| Vetsch Internationale Transporte GmbH 1) | Austria, Wolfurt | 100.00 | eur | – | – |
| Werbeagentur Janssen GmbH | Germany, Düsseldorf | 100.00 | eur | 511 | 855 |
| Williams Lea Belgium bvba | Belgium, Ternat | 100.00 | eur | –281 | –24 |
| Williams Lea Deutschland GmbH | Germany, Bonn | 100.00 | eur | 1,851 | – 9,186 |
| Williams Lea Direct Marketing Solutions GmbH | Germany, Bonn | 100.00 | eur | 34 | 528 |
| Williams Lea Document Solutions GmbH | Germany, Mannheim | 100.00 | eur | 25 | – 6,463 |
| Williams Lea Finnland Oy | Finland, Vantaa | 100.00 | eur | 163 | 134 |
| Williams Lea France sas | France, Paris | 100.00 | eur | 757 | 647 |
| Williams Lea GmbH | Germany, Munich | 100.00 | eur | 25 | 1,042 |
| Williams Lea Group Limited 1) | United Kingdom, London | 100.00 | eur | 85,503 | 10,825 |
| Williams Lea (No. 1) Ltd.1) | United Kingdom, London | 100.00 | eur | – | – |
| Williams Lea Group Management Services Limited | United Kingdom, London | 100.00 | eur | 20 | –346 |
| Williams Lea Holdings plc | United Kingdom, London | 96.06 | eur | 478,719 | 348 |
| Williams Lea Hungary Kft. | Hungary, Budapest | 100.00 | eur | –28 | – 6 |
| Williams Lea Inhouse Solutions GmbH | Germany, Bonn | 100.00 | eur | 1,816 | 12,279 |
| Williams Lea Ireland Limited | Ireland, Dublin | 100.00 | eur | 2,121 | 379 |
| Williams Lea Italia S. r. l. | Italy, Rome | 100.00 | eur | 30 | 52 |
| Williams Lea Limited | United Kingdom, London | 100.00 | eur | 51,756 | 9,255 |
| Williams Lea Netherlands b. v. | Netherlands, Amsterdam | 100.00 | eur | – 609 | –135 |
| Williams Lea Print Solutions GmbH | Germany, Bonn | 100.00 | eur | 581 | –11,552 |
| Williams Lea s. l. | Spain, Barcelona | 100.00 | eur | 9 | 285 |
| Williams Lea Sweden ab | Sweden, Nyköping | 100.00 | eur | 881 | –181 |
| Williams Lea uk Limited | United Kingdom, London | 100.00 | eur | 15,639 | –3,212 |
| Williams Lea Ukraine | Ukraine, Kiev | 100.00 | eur | 84 | 14 |
| Williams Lea, s. r. o. | Czech Republic, Brno | 100.00 | eur | 1,882 | 1,087 |
| Americas | |||||
| Advance Logistics Inc. | usa, Westerville | 100.00 | eur | – 86 | –154 |
| aei Drawback Services Inc. | usa, Miami | 100.00 | eur | 9,819 | 1,089 |
| Aero Express del Ecuador (TransAm) cia Ltda. | Ecuador, Guayaquil | 100.00 | eur | 6,156 | 823 |
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Aero Express del Ecuador TransAm Cia Ltd. (Colombian Branch) |
Colombia, Bogotá | 100.00 | eur | 401 | 427 |
| Aerotrans s. a. | Panama, Panama City | 100.00 | eur | 0 | 27 |
| Agencia de Aduanas dhl Express Colombia Ltda. | Colombia, Bogotá | 100.00 | eur | 2,047 | 29 |
| Agencia de Aduanas dhl Global Forwarding (Colombia) s. a. Nivel 1 |
Colombia, Bogotá | 99.00 | eur | 2,973 | 383 |
| Air Express International usa, Inc. | usa, Miami | 100.00 | eur | –13,354 | –31,297 |
| astar Air Cargo, Inc. | usa, Miami | 100.00 | eur | –182,072 | –18,233 |
| Circuit Logistics Inc. | Canada, Toronto | 100.00 | eur | 588 | 450 |
| Connect Logistics Services Inc. | Canada, Toronto | 100.00 | eur | 29,683 | 5,176 |
| Danzas Corporation | usa, Miami | 100.00 | eur | –31,231 | –1,113 |
| dhl (Bahamas) Limited | Bahamas, Nassau | 100.00 | eur | 1,015 | – 66 |
| dhl (Barbados) Ltd. | Barbados, Christ Church | 100.00 | eur | 1,632 | 12 |
| dhl (Bolivia) srl | Bolivia, Santa Cruz de la Sierra | 100.00 | eur | 5,959 | 1,322 |
| dhl (bvi) Ltd. | British Virgin Islands, Tortola | 100.00 | eur | 1,595 | – 64 |
| dhl (Costa Rica) s. a. | Costa Rica, Cormar | 100.00 | eur | 3,746 | – 4,471 |
| dhl (Honduras) s. a. de c. v. | Honduras, San Pedro Sula | 100.00 | eur | 6,387 | 1,084 |
| dhl (Jamaica) Ltd. | Jamaica, Kingston | 100.00 | eur | 1,178 | 193 |
| dhl (Paraguay) s. r. l. | Paraguay, Asunción | 100.00 | eur | 4,492 | 1,061 |
| dhl (Trinidad and Tobago) Limited | Trinidad and Tobago, Port of Spain | 100.00 | eur | –153 | –195 |
| dhl (Uruguay) s. r. l. | Uruguay, Montevideo | 100.00 | eur | 9,115 | 2,768 |
| dhl Aero Expresso s. a. | Panama, Panama City | 51.75 | eur | 21,279 | 1,307 |
| dhl Arwest (Panama) s. a.1) | Panama, Panama City | 100.00 | eur | –3,407 | –1,176 |
| Corporación Arwest de Mexico s. a. de c. v.1) | Mexico, Mexico City | 100.00 | eur | – | – |
| dhl Arwest (Guatemala) s. a. 1) | Guatemala, Guatemala City | 100.00 | eur | – | – |
| dhl Arwest de Mexico s. a. de c. v.1) | Mexico, Mexico City | 100.00 | eur | – | – |
| dhl Aviation (Costa Rica) s. a. | Costa Rica, San José | 100.00 | eur | 1,749 | –270 |
| dhl Aviation Americas, Inc. | usa, Plantation | 100.00 | eur | 1,515 | 124 |
| dhl Co Manufacturing Packing sc México | Mexico, Mexico City | 100.00 | eur | –308 | – 6 |
| dhl Corporate Services sc México | Mexico, Tepotzotlán | 100.00 | eur | 7,105 | 293 |
| dhl Customer Support (Costa Rica) s. a. | Costa Rica, Heredia | 100.00 | eur | –297 | 219 |
| dhl Customs (Costa Rica) s. a. | Costa Rica, Heredia | 100.00 | eur | 370 | –1,769 |
| dhl Customs Brokerage Ltd. | Canada, Mississauga | 100.00 | eur | – 407 | – 455 |
| dhl de Guatemala s. a. 7a) | Guatemala, Guatemala City | 49.00 | eur | 11,640 | 348 |
| dhl Dominicana sa | Dominican Republic, Santo Domingo | 99.96 | eur | 2,290 | 1,979 |
| dhl Exel Supply Chain (Argentina) s. a. | Argentina, Buenos Aires | 100.00 | eur | 558 | – 602 |
| dhl Express (Argentina) s. a. | Argentina, Buenos Aires | 100.00 | eur | 13,190 | 4,457 |
| dhl Express (Brazil) Ltda. | Brazil, São Paulo | 100.00 | eur | 16,467 | 9,208 |
| dhl Express (Canada) Ltd. | Canada, Mississauga | 100.00 | eur | –190,410 | –13,204 |
| dhl Express (Chile) Ltda. | Chile, Santiago | 99.00 | eur | 29,381 | 16,593 |
| dhl Express (Ecuador) s. a. | Ecuador, Quito | 100.00 | eur | 3,166 | 1,608 |
| dhl Express (El Salvador) s. a. de c. v.1) | El Salvador, San Salvador | 100.00 | eur | 4,095 | 1,652 |
| dhl Logistics 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 | 16,766 | 760,036 |
| dhl Express Aduanas Peru s. a. c. | Peru, Callao | 100.00 | eur | 1,677 | 211 |
| dhl Express Aduanas Venezuela c. a. | Venezuela, Caracas | 100.00 | eur | 641 | –211 |
| dhl Express Colombia Ltda. | Colombia, Bogotá | 100.00 | eur | 4,346 | 1,794 |
| dhl Express México, s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 25,807 | 26,354 |
| dhl Express Peru s. a. c. | Peru, Callao | 100.00 | eur | 15,370 | – 61 |
| dhl Fletes Aereos, c. a. | Venezuela, Caracas | 100.00 | eur | 9,377 | 4,544 |
| dhl Global Customer Solutions (usa) Inc. | usa, Plantation | 100.00 | eur | 1,698 | 944 |
| dhl Global Forwarding (Argentina) s. a. | Argentina, Buenos Aires | 99.97 | eur | 6,917 | 2,083 |
| dhl Global Forwarding (Canada) Inc. | Canada, Mississauga | 100.00 | eur | 56,991 | 4,238 |
| dhl Global Forwarding (Chile) s. a. | Chile, Santiago de Chile | 100.00 | eur | 15,316 | 2,094 |
| dhl Global Forwarding (Colombia) Ltda. | Colombia, Bogotá | 100.00 | eur | 296 | –2,073 |
Reported ifrs data before profi t transfer
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Global Forwarding (Ecuador) s. a. | Ecuador, Quito | 100.00 | eur | –36 | –71 |
| dhl Global Forwarding (El Salvador) s. a. 1) | El Salvador, San Salvador | 100.00 | eur | 226 | –117 |
| dhl Zona Franca El Salvador s. a. 1) | El Salvador, Antiguo Cuscatlan | 100.00 | eur | – | – |
| dhl Global Forwarding (Guatemala) s. a.1) | Guatemala, Guatemala City | 100.00 | eur | 3,203 | 1,218 |
| 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 Global Forwarding (Mexico) s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 21,387 | 5,499 |
| dhl Global Forwarding (Nicaragua) s. a. | Nicaragua, Managua | 100.00 | eur | – 55 | 13 |
| dhl Global Forwarding (Panama) s. a.1) | Panama, Panama City | 100.00 | eur | 3,451 | 395 |
| dhl Holding Panama Inc.1) | Panama, Panama City | 100.00 | eur | – | – |
| dhl Global Forwarding Deposito Aduanero (Colombia) s. a. |
Colombia, Bogotá | 100.00 | eur | 2,158 | 88 |
| dhl Global Forwarding Management | |||||
| Latin America Inc. | usa, Coral Gables | 100.00 | eur | 610 | –2,560 |
| dhl Global Forwarding Peru s. a. 1) | Peru, Lima | 100.00 | eur | 3,384 | 110 |
| dhl Global Forwarding Aduanas Peru s. a. 1) | Peru, Callao | 100.00 | eur | – | – |
| dhl Global Forwarding Venezuela, c. a. | Venezuela, Caracas | 100.00 | eur | 3,005 | –1,008 |
| dhl Global Forwarding Zona Franca (Colombia) s. a. | Colombia, Bogotá | 100.00 | eur | 2,412 | – 919 |
| dhl Holding Central America Inc.1) | Panama, Panama City | 100.00 | eur | 38,831 | 1,460 |
| Lagents & Co. srl 1), 7b) | Costa Rica, San José | 50.00 | eur | – | – |
| dhl Information Services (Americas), Inc. | usa, Plantation | 100.00 | eur | 1,376 | 511 |
| dhl International Antilles sarl | Martinique, Lamentin | 100.00 | eur | – 612 | – 612 |
| dhl International Express Ltd. | Canada, Mississauga | 100.00 | eur | 79,908 | 132 |
| dhl International Haiti sa | Haiti, Port-au-Prince | 99.00 | eur | 394 | –253 |
| dhl Logistics (Brazil) Ltda. | Brazil, São Paulo | 100.00 | eur | 21,953 | 17,933 |
| dhl Management Cenam s. a. | Costa Rica, Heredia | 100.00 | eur | 3,341 | 638 |
| dhl Metropolitan Logistics sc México | Mexico, Tepotzotlán | 100.00 | eur | – 646 | 1,937 |
| dhl Network Operations (usa), Inc. | usa, Plantation | 100.00 | eur | –168,020 | 365,073 |
| dhl Nicaragua, s. a. | Nicaragua, Managua | 100.00 | eur | 716 | –24 |
| dhl of Curacao nv | Dutch Antilles, Curaçao | 100.00 | eur | 960 | –303 |
| dhl Panama s. a. | Panama, Panama City | 100.00 | eur | 2,402 | – 91 |
| dhl Regional Services, Inc. | usa, Plantation | 100.00 | eur | 613 | –772 |
| dhl s. a. | Guatemala, Guatemala City | 100.00 | eur | 2,455 | –10 |
| dhl Sint Maarten n. v. | Dutch Antilles, Philipsburg | 100.00 | eur | 2,219 | 16 |
| dhl Solutions (usa), Inc. | usa, Westerville | 100.00 | eur | –16,769 | –2,188 |
| dhl Worldwide Express (Aruba) nv 5) | Aruba, Oranjesta | 100.00 | eur | 4 | 0 |
| Dimalsa Logistics Inc. | Puerto Rico, San Juan (Tacano) | 100.00 | eur | 711 | 231 |
| dpwn Financing (usa) 1, llc | usa, Plantation | 100.00 | eur | 0 | 0 |
| dpwn Financing (usa) 2, llc | usa, Plantation | 100.00 | eur | 0 | 0 |
| dpwn Financing (usa), lp | usa, Plantation | 100.00 | eur | 902 | 834 |
| dpwn Holdings (usa), Inc. | usa, Plantation | 100.00 | eur | 6,594,147 | 1,671,363 |
| Exel Automocion s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 8,306 | 2,011 |
| Exel Canada Ltd. | Canada, Toronto | 100.00 | eur | –3,639 | 5,982 |
| dhl Supply Chain (Chile) s. a. | Chile, Santiago | 100.00 | eur | 1,960 | 558 |
| Exel Direct Inc. | usa, Westerville | 100.00 | eur | 33,682 | 1,370 |
| Exel Global Logistics do Brasil s. a. | Brazil, São Paulo | 100.00 | eur | 4,436 | –175 |
| Exel Global Logistics Inc. | usa, Palm City | 100.00 | eur | –755 | –736 |
| Exel Inc. | usa, Westerville | 100.00 | eur | 127,159 | 36,741 |
| Exel Investments Inc. | usa, Wilmington | 100.00 | eur | 594,316 | 30,437 |
| Exel Logistics Argentina s. a. | Argentina, Buenos Aires | 100.00 | eur | 556 | – 62 |
| Exel Logistics do Nordeste Ltda. | Brazil, Camacari | 100.00 | eur | 815 | – 463 |
| Exel Logistics s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 12,483 | 4,194 |
| Exel Supply Chain Services de Mexico, s. a. de c. v. | Mexico, Tepotzotlán | 100.00 | eur | –362 | –716 |
| Exel Transportation Services Inc. (Canadian Branch) | Canada, Mississauga | 100.00 | eur | 669 | 237 |
| Exel Transportation Services Inc. | usa, Memphis | 100.00 | eur | 3,277 | – 6,117 |
| Exel Trucking Inc. | usa, Memphis | 100.00 | eur | –1,290 | 77 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| f. x. Coughlin do Brasil Ltda. | Brazil, São Paulo | 100.00 | eur | – 6,156 | 0 |
| Freshlink Canada Ltd. | Canada, Toronto | 100.00 | eur | 910 | 163 |
| Genesis Logistics Inc. | usa, Westerville | 100.00 | eur | 11,492 | 3,487 |
| Giorgio Gori usa, Inc. | usa, Baltimore | 100.00 | eur | 5,483 | 2,415 |
| Global Mail, Inc. | usa, Weston | 100.00 | eur | 107,509 | – 6,023 |
| Global Mail Terminal Operations (usa) llc 8) | usa, Weston | 100.00 | eur | 0 | 0 |
| Gori Argentina s. a. | Argentina, Mendoza | 95.00 | eur | 852 | 598 |
| gori chile s. a. | Chile, Santiago | 99.00 | eur | 5,003 | 330 |
| Harmony Logistics Canada Inc. | Canada, Toronto | 100.00 | eur | 9,373 | 1,171 |
| Heartland Logistics Inc. | usa, Westerville | 100.00 | eur | 366 | 480 |
| Hyperion Inmobilaria s. a. de c. v. | Mexico, Tepotzotlán | 100.00 | eur | 2,943 | 164 |
| Ibryl Inc. | Cayman Islands, George Town | 100.00 | eur | –25,988 | –14,850 |
| Integracion Aduanera s. a. | Costa Rica, Barrio Tournon | 51.00 | eur | 540 | – 6 |
| itg International Transports, Inc. | usa, Boston | 100.00 | eur | 489 | 61 |
| Llano Logistics Inc. | usa, Westerville | 100.00 | eur | 3,377 | 584 |
| Marias Falls Insurance Co., Ltd. | Bermuda, Hamilton | 100.00 | eur | 31,885 | 487 |
| Matrix Logistics Services Ltd. | Canada, Toronto | 100.00 | eur | 245 | 650 |
| Mercury Airfreight International Inc. | usa, Avenel | 100.00 | eur | 694 | 65 |
| Mercury Holdings Inc. | usa, Avenel | 100.00 | eur | 227 | 0 |
| Polar Air Cargo Worldwide, Inc 7b) | usa, Purchase | 49.00 | eur | 9,821 | 263 |
| Relay Logistics Inc. | Canada, Toronto | 100.00 | eur | 13 | –1 |
| Saturn Integrated Logistics Inc. | Canada, Toronto | 100.00 | eur | 645 | 433 |
| scm Supply Chain Management Inc. | Canada, Toronto | 100.00 | eur | 4,313 | 4,617 |
| Sky Courier, Inc. | usa, Sterling | 100.00 | eur | 9,086 | 3,900 |
| South Bay Terminals llc | usa, Westerville | 100.00 | eur | –7,181 | –2,283 |
| Summit Logistics Inc. | Canada, Toronto | 100.00 | eur | 13,704 | 1,182 |
| Tafi nor s. a. | Uruguay, Montevideo | 100.00 | eur | 6 | 38 |
| Tibbett & Britten Group Canada Inc. | Canada, Toronto | 100.00 | eur | 12,743 | –217 |
| Tibbett & Britten Group North America, llc 1) | usa, Westerville | 100.00 | eur | –16,177 | 7,857 |
| Compass Logistics Inc. 1) | usa, Westerville | 100.00 | eur | – | – |
| Galaxy Logistics Inc. 1) | usa, Westerville | 100.00 | eur | – | – |
| Harvest Logistics Inc. 1) | usa, Westerville | 100.00 | eur | – | – |
| Matrix Logistics Inc. 1) | usa, Westerville | 100.00 | eur | – | – |
| Northstar Logistics Inc. 1) | usa, Westerville | 100.00 | eur | – | – |
| Pinnacle Logistics Inc. 1) | usa, Westerville | 100.00 | eur | – | – |
| Tomair, llc | usa, Plantation | 100.00 | eur | 5,123 | –74 |
| Tracker Logistics Inc. | Canada, Toronto | 100.00 | eur | 1,977 | 416 |
| Transcare Supply Chain Management Inc. | Canada, Toronto | 100.00 | eur | 498 | 96 |
| Unidock's Assessoria e Logistica de Materiais Ltda. | Brazil, Barueri | 100.00 | eur | 14,481 | 6,865 |
| Vensecar Internacional, c. a. 7a) | Venezuela, Maiquitia | 48.56 | eur | 17,818 | 578 |
| Venture Logistics s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 3,305 | 1,185 |
| Western Distribution Centers Alberta Inc. | Canada, Toronto | 100.00 | eur | 974 | 0 |
| Williams Lea (Brazil) Assessoria Em Solucoes | |||||
| Empresariais Ltda. | Brazil, Rio de Janeiro | 100.00 | eur | 511 | 193 |
| Williams Lea (Canada), Inc. | Canada, Montréal | 100.00 | eur | 874 | 264 |
| Williams Lea Argentina s. a. | Argentina, Buenos Aires | 100.00 | eur | –239 | –3 |
| Williams Lea Holdings, Inc. | usa, Chicago | 100.00 | eur | 56,412 | 0 |
| Williams Lea Inc. | usa, Chicago | 100.00 | eur | 83,641 | 6,683 |
| Williams Lea México, S. de r. l. de c. v. | Mexico, Mexico City | 100.00 | eur | –249 | 30 |
| Wilmington Air Park, llc | usa, Plantation | 100.00 | eur | –285,401 | – 62,476 |
| Zenith Logistics Inc. | Canada, Toronto | 100.00 | eur | 2,260 | 319 |
| Asia Pacific | |||||
| Air Express International (Malaysia) Sdn. Bhd. 7a) | Malaysia, Puchong | 49.00 | eur | 2,335 | 79 |
Reported ifrs data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2009. 3) Amounts from 2008. 4) Data not available. 5) Dormant. 6) Inclusion in accordance with sic 12. 7a) Inclusion in accordance with ias 27.13 (a). 7b) Inclusion in accordance with ias 27.13 (b – d). 8) In liquidation. 9) Local gaap. 10) Voting rights. 11) Company is included in group fi nancial statements of Deutsche Postbank ag. 12) Foundation in 2010.
Asia Overnight (Thailand) Ltd. 7a) Thailand, Bangkok 48.71 eur 699 101
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Asia-Pacifi c Information Services Sdn. Bhd. | Malaysia, Puchong | 100.00 | eur | 20,388 | 800 |
| Beijing Sinotrans Express Co., Ltd. | China, Beijing | 100.00 | eur | – 6,913 | – 5,006 |
| Blue Dart Aviation Ltd.6) | India, Mumbai | 49.00 | eur | 5,047 | 18 |
| Blue Dart Express Limited | India, Mumbai | 81.03 | eur | 100,120 | 15,026 |
| Danzas (China) Ltd. | China, Hong Kong | 100.00 | eur | – 6,451 | –7,286 |
| Danzas aei (hk) Limited | China, Hong Kong | 100.00 | eur | 52 | –16 |
| Danzas aei Logistics (Shanghai) Co. Ltd. | China, Shanghai | 100.00 | eur | 2,800 | 469 |
| Danzas Freight (India) Pvt. Ltd. 7a), 8) | India, Mumbai | 40.00 | eur | 75 | 0 |
| Danzas Intercontinental, Inc. (Philippines) 7a), 8) | Philippines, Manila | 40.00 | eur | –1,317 | 0 |
| Danzas Pty. Limited 5) | Australia, Melbourne | 100.00 | eur | 3,894 | 0 |
| danzasmal Domestic Logistics Services Sdn. Bhd. 7a) | Malaysia, Kuala Lumpur | 49.00 | eur | 1,171 | 648 |
| Deutsche Post Global Mail (Australia) Pty Ltd. | Australia, Mascot | 100.00 | eur | – 6,438 | 1,419 |
| dhl (Chengdu) Service Ltd. | China, Chengdu | 100.00 | eur | 399 | –232 |
| dhl Air Freight Forwarder Sdn. Bhd. 7a) | Malaysia, Kuala Lumpur | 49.00 | eur | 2,280 | 87 |
| dhl Asia Pacifi c Shared Services Sdn. Bhd. | Malaysia, Kuala Lumpur | 100.00 | eur | –2,885 | 813 |
| dhl Aviation (Hong Kong) Ltd. | China, Hong Kong | 99.36 | eur | 8,828 | 206 |
| dhl Aviation (Philippines), Inc. 8) | Philippines, Makati City | 100.00 | eur | 0 | 0 |
| dhl Aviation Services (Shanghai) Co., Ltd. | China, Shanghai | 99.36 | eur | 12,807 | –2,676 |
| dhl Danzas Air & Ocean (Cambodia) Ltd. 5) | Cambodia, Phnom Penh | 100.00 | eur | 26 | 0 |
| dhl Exel Logistics (Malaysia) Sdh. Bhd. 7a) | Malaysia, Petaling Jaya | 49.00 | eur | 2,562 | 261 |
| dhl Exel Supply Chain Management Phils., Inc. | Philippines, Manila | 100.00 | eur | 1,455 | 241 |
| dhl Exel Supply Chain Phils., Inc. | Philippines, Manila | 100.00 | eur | 1,326 | –294 |
| dhl Express (Australia) Pty Ltd. | Australia, Sydney | 100.00 | eur | 16,740 | 2,818 |
| dhl Express (Brunei) Sdn. Bhd. | Brunei Darussalam, Brunei Dar | 90.00 | eur | 502 | – 45 |
| dhl Express (Cambodia) Ltd. | Cambodia, Phnom Penh | 100.00 | eur | 236 | 33 |
| dhl Express (Fiji) Ltd. | Fiji, Suva | 100.00 | eur | 555 | 21 |
| dhl Express (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | 16,439 | 4,020 |
| dhl Express (India) Pvt. Ltd. | India, Mumbai | 100.00 | eur | 27,370 | 5,333 |
| dhl Express (Macau) Ltd. | Macau, Macau | 100.00 | eur | 387 | 61 |
| dhl Express (Malaysia) Sdn. Bhd. | Malaysia, Kuala Lumpur | 70.00 | eur | 9,803 | –749 |
| dhl Express (New Zealand) Limited | New Zealand, Auckland | 100.00 | eur | 5,630 | 1,004 |
| dhl Express (Papua New Guinea) Ltd | Papua New Guinea, Port Moresby | 100.00 | eur | 460 | 81 |
| dhl Express (Philippines) Corp. | Philippines, Makati City | 100.00 | eur | 5,546 | –1,218 |
| dhl Express (Singapore) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 129,129 | 12,924 |
| dhl Express (Taiwan) Corp. | Taiwan, Taipeh | 100.00 | eur | 9,976 | 4,576 |
| dhl Express (Thailand) Limited 7a) | Thailand, Bangkok | 49.00 | eur | 5,237 | 161 |
| dhl Express International (Thailand) Ltd. | Thailand, Bangkok | 100.00 | eur | 5,555 | 310 |
| dhl Express Lda. | East Timor, Dili | 100.00 | eur | 375 | 4 |
| dhl Express Nepal Pvt. Ltd. | Nepal, Kathmandu | 100.00 | eur | 667 | 425 |
| dhl Global Forwarding (Australia) Pty Ltd. | Australia, Tullamarine | 100.00 | eur | 70,055 | 16,459 |
| dhl Global Forwarding (Bangladesh) Limited | Bangladesh, Dhaka | 99.90 | eur | 52 | 24 |
| dhl Global Forwarding (China) Co., Ltd. | China, Shanghai | 100.00 | eur | 79,291 | 10,483 |
| dhl Global Forwarding (Fiji) Limited 5) | Fiji, Lautoka | 100.00 | eur | 339 | 0 |
| dhl Global Forwarding (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | –73,847 | 1,477 |
| dhl Global Forwarding (Korea) Ltd. | South Korea, Seoul | 100.00 | eur | 12,485 | 3,947 |
| dhl Global Forwarding (Malaysia) Sdn. Bhd. | Malaysia, Kuala Lumpur | 100.00 | eur | 13,594 | 4,765 |
| dhl Global Forwarding (New Zealand) Limited | New Zealand, Auckland | 100.00 | eur | 14,966 | 1,623 |
| dhl Global Forwarding (Philippines) Inc. | Philippines, Manila | 100.00 | eur | 2,033 | 436 |
| dhl Global Forwarding (png) Limited 5) | Papua New Guinea, Port Moresby | 74.00 | eur | –100 | 0 |
| dhl Global Forwarding (Singapore) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 77,477 | 9,838 |
| dhl Global Forwarding (Singapore) Pte. Ltd., | |||||
| Taiwan Branch | Taiwan, Taipeh | 100.00 | eur | 5,629 | 5,152 |
| dhl Global Forwarding (Thailand) Limited | Thailand, Bangkok | 100.00 | eur | 26,626 | 2,478 |
| dhl Global Forwarding (Vietnam) Corporation 7a) | Vietnam, Ho Chi Minh City | 49.00 | eur | 3,666 | 2,244 |
| dhl Global Forwarding Caledonie | New Caledonia, Noumea | 100.00 | eur | 1,654 | –1,270 |
| dhl Global Forwarding Japan k. k. | Japan, Tokyo | 100.00 | eur | 20,835 | 3,528 |
| dhl Global Forwarding Lanka (Private) Limited | Sri Lanka, Colombo | 70.00 | eur | –160 | – 522 |
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| dhl Global Forwarding Management | |||||
| (Asia Pacifi c) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 192,213 | 35,878 |
| dhl Global Forwarding Pakistan (Private) Limited | Pakistan, Karachi | 100.00 | eur | 2,302 | 1,167 |
| dhl Global Forwarding Polynesie s. a. r. l. | French Polynesia, Faaa | 100.00 | eur | 3,889 | 378 |
| dhl Global Mail (Japan) k. k. | Japan, Tokyo | 100.00 | eur | 288 | 11 |
| dhl Global Mail (Singapore) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 1,049 | 585 |
| dhl Holdings (New Zealand) Limited | New Zealand, Auckland | 100.00 | eur | 8,489 | 2,167 |
| dhl Incheon Hub Limited (Korea) | South Korea, Incheon | 100.00 | eur | 6,357 | 495 |
| dhl International Guinea Ecuatorial srl | Guam, Malabo | 100.00 | eur | 3 | 218 |
| dhl International Kazakhstan, too | Kazakhstan, Almaty | 100.00 | eur | 2,354 | 1,244 |
| dhl isc (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | 6,112 | 1,670 |
| dhl Japan Inc. | Japan, Tokyo | 100.00 | eur | 66,937 | 8,507 |
| dhl Keells (Private) Limited 7b) | Sri Lanka, Colombo | 50.00 | eur | 3,419 | 562 |
| dhl Korea Limited | South Korea, Seoul | 95.00 | eur | 28,312 | 2,890 |
| dhl Lao Limited | Laos, Skihottabong | 100.00 | eur | 474 | 242 |
| dhl Lemuir Logistics Private Limited | India, Mumbai | 76.00 | eur | 65,541 | 10,213 |
| dhl Logistics (Beijing) Co., Ltd. | China, Beijing | 100.00 | eur | –16,334 | – 4,191 |
| dhl Logistics (Cambodia) Ltd. | Cambodia, Phnom Penh | 100.00 | eur | 1,640 | 420 |
| dhl Logistics (China) Co., Ltd. | China, Beijing | 100.00 | eur | 35,417 | 25,302 |
| dhl Logistics (Kazakhstan) too | Kazakhstan, Aksai | 100.00 | eur | 1,935 | 683 |
| dhl Logistics (Shenzhen) Co., Ltd. | China, Shenzhen | 100.00 | eur | 2,460 | 1,280 |
| dhl Pakistan (Private) Limited | Pakistan, Karachi | 99.95 | eur | 3,837 | 1,378 |
| dhl Project & Chartering (China) Limited | China, Hong Kong | 100.00 | eur | 1,202 | 1,223 |
| dhl Properties (Malaysia) Sdn. Bhd. | Malaysia, Shah Alam | 69.98 | eur | 5,963 | 669 |
| dhl scm k. k. | Japan, Saitama | 100.00 | eur | –354 | 366 |
| dhl Sinotrans Bonded Warehouse (Beijing) Co., Ltd. | China, Beijing | 100.00 | eur | 1,404 | 598 |
| dhl Sinotrans International Air Courier Ltd. 7a) | China, Beijing | 50.00 | eur | 227,187 | 126,787 |
| dhl Supply Chain (Australia) Pty Limited | Australia, Mascot | 100.00 | eur | 16,614 | 8,168 |
| dhl Supply Chain (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | 51,070 | – 618 |
| dhl Supply Chain (Korea) Ltd. | South Korea, Seoul | 100.00 | eur | 2,181 | 600 |
| dhl Supply Chain (Malaysia) Sdn. Bhd. | Malaysia, Petaling Jaya | 100.00 | eur | 7,327 | 332 |
| dhl Supply Chain (New Zealand) Limited | New Zealand, Auckland | 100.00 | eur | 28,659 | 2,511 |
| dhl Supply Chain (Taiwan) Co. Ltd. | Taiwan, Taipeh | 100.00 | eur | 303 | –386 |
| dhl Supply Chain (Vietnam) Limited | Vietnam, Ho Chi Minh City | 100.00 | eur | – 90 | –260 |
| dhl Supply Chain k. k. | Japan, Tokyo | 100.00 | eur | –23,360 | 1,724 |
| dhl Supply Chain Service k. k. | Japan, Tokyo | 100.00 | eur | 1,001 | 133 |
| dhl Supply Chain Singapore Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 35,981 | 5,910 |
| dhl Worldwide Express (Bangladesh) Private Limited | Bangladesh, Dhaka | 90.00 | eur | 1,289 | 846 |
| dhl-vnpt Express Ltd. | Vietnam, Ho Chi Minh City | 51.00 | eur | 2,128 | 82 |
| Dongguan dhl Supply Chain Co., Ltd. | China, Dongguan | 100.00 | eur | 460 | 116 |
| Exel (Australia) Pty Ltd. | Australia, Victoria | 100.00 | eur | 5,544 | –29 |
| Exel Consolidation Services Limited | China, Hong Kong | 100.00 | eur | 9,457 | 9 |
| Exel Distribution (Thailand) Ltd. | Thailand, Nonthaburi | 100.00 | eur | 20,502 | 978 |
| Exel Japan (Finance) Ltd. | Japan, Shinagawa | 100.00 | eur | 12,452 | 243 |
| Exel Logistics (China) Co. Ltd. | China, Shanghai | 100.00 | eur | – 6,140 | – 4,389 |
| Exel Logistics (Far East) Ltd. | Thailand, Bangkok | 87.05 | eur | 5,309 | 1,608 |
| Exel Logistics Services Lanka (Private) Ltd. | Sri Lanka, Colombo | 99.00 | eur | 239 | –273 |
| Exel Thailand Ltd.5) | Thailand, Bangkok | 100.00 | eur | 864 | 0 |
| Gori Australia Pty Ltd. | Australia, Brighton-Le-Sands | 100.00 | eur | 4,434 | 2,647 |
| Jingle Express Limited | China, Beijing | 100.00 | eur | 60 | –30 |
| msas Global Logistics (Far East) Limited | China, Hong Kong | 100.00 | eur | 1,146 | – 6 |
| pt Danzas Sarana Perkasa | Indonesia, Jakarta | 100.00 | eur | 10 | 262 |
| pt Birotika Semesta 6) | Indonesia, Jakarta | 0.00 | eur | 1,861 | 740 |
| pt Cargotama Multi Servisindo 5) | Indonesia, Jakarta | 100.00 | eur | 29 | 0 |
| pt dhl Exel Supply Chain Indonesia | Indonesia, Jakarta | 90.34 | eur | 1,301 | –1,170 |
Reported ifrs data before profi t transfer
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| pt dhl Global Forwarding Indonesia | Indonesia, Jakarta | 100.00 | eur | 7,069 | 2,680 |
| Shanghai Danzas Freight Agency Co. Ltd. | China, Shanghai | 100.00 | eur | 863 | 39 |
| Shanghai Quan Yi Express Limited Company (apex 3) | China, Shanghai | 100.00 | eur | – 4,317 | – 6,499 |
| Shanghai Quan Yi Express Limited Company (apex 2) | China, Shanghai | 100.00 | eur | 1,863 | 0 |
| Singha Sarn Co. Ltd | Thailand, Bangkok | 98.90 | eur | – 51 | –11 |
| StarBroker (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | 43 | –1 |
| Tibbett & Britten Asia Pte. Ltd. | Singapore, Singapore | 100.00 | eur | –1,424 | –327 |
| Trade Clippers Cargo Limited | Bangladesh, Dhaka | 85.00 | eur | 268 | 178 |
| Williams Lea Asia Limited 1) | China, Hong Kong | 100.00 | eur | 3,704 | 1,350 |
| mdf Australia Pty Limited t / a creatis 1) | Australia, Sydney | 100.00 | eur | – | – |
| Williams Lea (Beijing) Limited 1) | China, Beijing | 100.00 | eur | – | – |
| Williams Lea (Hong Kong) Limited 1) | China, Hong Kong | 100.00 | eur | – | – |
| Williams Lea Japan Limited 1) | Japan, Tokyo | 100.00 | eur | – | – |
| Williams Lea Private Limited 1) | Singapore, Singapore | 100.00 | eur | – | – |
| Williams Lea Pty Limited 1) | Australia, Sydney | 100.00 | eur | – | – |
| Williams Lea India Private Limited | India, New Delhi | 100.00 | eur | 2,558 | 611 |
| Other regions | |||||
| Buddingtrade 33 (Proprietary) Limited | South Africa, Benoni | 100.00 | eur | 2,782 | –722 |
| Danzas Abu Dhabi llc 7b) | United Arab Emirates (uae), Abu Dhabi | 49.00 | eur | 4,362 | 697 |
| Danzas Bahrain wll 7b) | Bahrain, Manama | 40.00 | eur | 1,839 | 1,510 |
| dhl (Ghana) Limited | Ghana, Accra | 100.00 | eur | 2,298 | 656 |
| dhl (Israel) Ltd. | Israel, Tel Aviv | 100.00 | eur | 6,861 | 188 |
| dhl (Mauritius) Ltd. | Mauritius, Port Louis | 100.00 | eur | 862 | 266 |
| dhl (Namibia) (Pty) Ltd. | Namibia, Windhuk | 100.00 | eur | 908 | –16 |
| dhl (Tanzania) Ltd. | Tanzania, Dar es Salaam | 100.00 | eur | 1,156 | 349 |
| dhl Aviation (Maroc) sa | Morocco, Casablanca | 100.00 | eur | 1,527 | –167 |
| dhl Aviation (Nigeria) Ltd. | Nigeria, Lagos | 100.00 | eur | 159 | 8 |
| dhl Aviation (Pty) Limited | South Africa, Johannesburg | 100.00 | eur | 5,734 | 733 |
| dhl Aviation eemea b. s. c. (c) | Bahrain, Manama | 100.00 | eur | 811 | 37 |
| dhl Aviation Kenya Ltd. | Kenya, Nairobi | 99.90 | eur | 16 | 0 |
| dhl Egypt wll | Egypt, Cairo | 100.00 | eur | 451 | 248 |
| dhl Exel Supply Chain Kenya Limited | Kenya, Nairobi | 100.00 | eur | 4,150 | – 468 |
| dhl Express Maroc s. a. | Morocco, Casablanca | 99.99 | eur | 406 | 571 |
| dhl Global Forwarding & Co. llc 7b) | Oman, Muscat | 40.00 | eur | 4,818 | 2,288 |
| dhl Global Forwarding (Angola) – Comércio | |||||
| e Transitários, Limitada | Angola, Luanda | 99.99 | eur | – 4,236 | –1,623 |
| dhl Global Forwarding (Cameroon) plc | Cameroon, Douala | 62.00 | eur | – 416 | – 585 |
| dhl Global Forwarding (Kenya) Limited | Kenya, Nairobi | 100.00 | eur | 1,203 | – 884 |
| dhl Global Forwarding (Kuwait ) Company wll 7b) | Kuwait, Safat | 49.00 | eur | 8,534 | 6,338 |
| dhl Global Forwarding (Senegal) s. a. | Senegal, Dakar | 100.00 | eur | –323 | – 416 |
| dhl Global Forwarding (Uganda) Limited | Uganda, Kampala | 100.00 | eur | 367 | 126 |
| dhl Global Forwarding (Congo) sa | Republic of Congo, Pointe-Noire | 100.00 | eur | 146 | 131 |
| dhl Global Forwarding Cote D'Ivoire sa | Ivory Coast, Abidjan | 100.00 | eur | –105 | –128 |
| dhl Global Forwarding (Gabon) sa | Gabon, Libreville | 99.00 | eur | – 510 | –262 |
| dhl Global Forwarding Lebanon s. a. l. 7b) | Lebanon, Beirut | 50.00 | eur | 1,733 | 766 |
| dhl Global Forwarding Nigeria Limited | Nigeria, Lagos | 100.00 | eur | 707 | –183 |
| dhl Global Forwarding Qatar llc 7b) | Qatar, Doha | 49.00 | eur | 952 | 683 |
| dhl Global Forwarding Egypt s. a. e. | Egypt, Cairo | 100.00 | eur | 7,061 | 2,828 |
| dhl Global Forwarding sa (Pty) Limited | South Africa, Boksburg | 74.99 | eur | 15,927 | – 5,946 |
| dhl Global Forwarding Tasimacilik a. s. | Turkey, Istanbul | 100.00 | eur | 8,891 | –210 |
| dhl International (Algeria) sarl | Algeria, Algiers | 100.00 | eur | 2,397 | 774 |
| dhl International (Bahrain) wll 7b) | Bahrain, Manama | 49.00 | eur | 50 | 0 |
| dhl International (Congo) sprl | Democratic Republic of Congo, Kinshasa | 100.00 | eur | 1,982 | 291 |
| dhl International (Gambia) Ltd. | Gambia, Kanifi ng | 100.00 | eur | 110 | –19 |
| dhl International (Liberia) Ltd. | Liberia, Monrovia | 100.00 | eur | –390 | 79 |
| dhl International (Pty) Ltd. | South Africa, Isando | 74.90 | eur | 18,158 | 3,359 |
| dhl International (Pvt) Ltd. | Zimbabwe, Harare | 100.00 | eur | 1,240 | 48 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl International (sl) Ltd. | Sierra Leone, Freetown | 100.00 | eur | 612 | – 53 |
| dhl International (Uganda) Ltd. | Uganda, Kampala | 100.00 | eur | 441 | 89 |
| dhl International b. s. c (c) | Bahrain, Manama | 100.00 | eur | 479 | –73 |
| dhl International Benin sarl | Benin, Cotonou | 100.00 | eur | 771 | 405 |
| dhl International Botswana (Pty) Ltd. | Botswana, Gaborone | 99.99 | eur | – 66 | – 6 |
| dhl International Burkina Faso sarl | Burkina Faso, Ouagadougou | 100.00 | eur | 690 | 260 |
| dhl International Cameroon sarl | Cameroon, Douala | 100.00 | eur | 2,005 | 868 |
| dhl International Centrafrique sarl | Central African Republic, Bangui | 100.00 | eur | 311 | 64 |
| dhl International Chad sarl | Chad, Ndjamena | 99.50 | eur | 97 | 160 |
| dhl International Congo sarl | Republic of Congo, Brazzaville | 100.00 | eur | 5,167 | 1,754 |
| dhl International Cote D'Ivoire sarl | Ivory Coast, Abidjan | 100.00 | eur | 2,305 | 1,280 |
| dhl International Gabon sarl | Gabon, Libreville | 100.00 | eur | –729 | 563 |
| dhl International Guinee sarl | Guinea, Conakry | 100.00 | eur | 404 | 142 |
| dhl International Iran pjsc | Iran, Tehran | 100.00 | eur | 4,435 | 1,725 |
| dhl International Madagascar sa | Madagascar, Antananarivo | 100.00 | eur | 851 | –38 |
| dhl International Malawi Ltd. | Malawi, Blantyre | 100.00 | eur | 294 | –108 |
| dhl International Mali sarl | Mali, Bamako | 100.00 | eur | 649 | 173 |
| dhl International Mauritanie sarl | Mauretania, Tevragh-Zeina Nouakchot | 100.00 | eur | 29 | –190 |
| dhl International Niger sarl | Niger, Niamey | 100.00 | eur | 610 | 171 |
| dhl International Nigeria Ltd. | Nigeria, Lagos | 100.00 | eur | 4,940 | 2,473 |
| dhl International Reunion sarl | Réunion, Saint Maria | 99.00 | eur | –195 | 9 |
| dhl International Togo sarl | Togo, Lomé | 100.00 | eur | 434 | 245 |
| dhl International Transportation Co wll 6) | Kuwait, Safat | 0.00 | eur | 155 | 0 |
| dhl International Zambia Limited | Zambia, Lusaka | 100.00 | eur | –1,081 | –355 |
| dhl Lesotho (Proprietary) Ltd. | Lesotho, Maseru | 100.00 | eur | 391 | – 56 |
| dhl Logistics Ghana Ltd. | Ghana, Tema | 100.00 | eur | 1,112 | 748 |
| dhl Logistics Kenya Limited | Kenya, Nairobi | 50.25 | eur | – 56 | 275 |
| dhl Logistics Morocco s. a. | Morocco, Casablanca | 99.99 | eur | 70 | 31 |
| dhl Logistics Tanzania Limited | Tanzania, Dar es Salaam | 100.00 | eur | –142 | –28 |
| dhl Lojistik Hizmetleri a. s. | Turkey, Istanbul | 100.00 | eur | 12,432 | 2,707 |
| dhl Mocambique Lda. | Mozambique, Maputo | 100.00 | eur | 204 | – 662 |
| dhl Operations bv Jordan Services | |||||
| with Limited Liability | Jordan, Amman | 100.00 | eur | 359 | 100 |
| dhl Qatar Limited 7b) | Qatar, Doha | 49.00 | eur | – 648 | – 4 |
| dhl Regional Services (Indian Ocean) Ltd. | Mauritius, Port Louis | 100.00 | eur | 1 | 0 |
| dhl Regional Services Limited 5) | Nigeria, Lagos | 100.00 | eur | 113 | 0 |
| dhl Senegal sarl | Senegal, Dakar | 100.00 | eur | 1,902 | 443 |
| dhl Supply Chain (South Africa) (Pty) Ltd. | South Africa, Germiston | 100.00 | eur | – 62,237 | –10,097 |
| dhl Swaziland (Proprietary) Ltd. | Swaziland, Mbabane | 100.00 | eur | 289 | –35 |
| dhl Worldwide Express & Company llc | Oman, Ruwi | 70.00 | eur | 3 | –347 |
| dhl Worldwide Express (Abu Dhabi) llc 7b) | United Arab Emirates (uae), Abu Dhabi | 49.00 | eur | 61 | 0 |
| dhl Worldwide Express (Dubai) llc 7b) | United Arab Emirates (uae), Dubai | 49.00 | eur | 0 | 0 |
| dhl Worldwide Express (Sharjah) llc 7b) | United Arab Emirates (uae), Sharjah | 49.00 | eur | 102 | 0 |
| dhl Worldwide Express Cargo llc 7b) | United Arab Emirates (uae), Dubai | 49.00 | eur | 61 | 0 |
| dhl Worldwide Express Ethiopia Private Limited | |||||
| Company | Ethiopia, Addis Abeba | 73.00 | eur | –134 | –215 |
| dhl Worldwide Express Kenya Limited | Kenya, Nairobi | 51.00 | eur | 3,675 | 395 |
| dhl Worldwide Express Tasimacilik ve Ticaret a. s. | Turkey, Istanbul | 99.98 | eur | 25,628 | 4,706 |
| Document Handling (East Africa) Ltd. | Kenya, Nairobi | 51.00 | eur | 55 | 451 |
| Exel (Nigeria) Ltd. 5) | Nigeria, Lagos | 100.00 | eur | –183 | 0 |
| Exel Contract Logistics (Kenya) Limited | |||||
| (Tanzania Branch) | Tanzania, Dar es Salaam | 100.00 | eur | 762 | 611 |
| Exel Contract Logistics Nigeria Ltd. | Nigeria, Ikeja | 100.00 | eur | 1,487 | 644 |
| Exel Middle East (Fze) | United Arab Emirates (uae), Dubai | 100.00 | eur | 290 | 147 |
| Exel Supply Chain Services (South Africa) (Pty) Ltd. | South Africa, Johannesburg | 100.00 | eur | 18,709 | – 64 |
Reported ifrs data before profi t transfer
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| f. c. (Flying Cargo) International Transportation Ltd. | Israel, Lod | 100.00 | eur | 21,404 | 7,399 |
| Ghanem Clearing & Forwarding Establishment 6) | United Arab Emirates (uae), Abu Dhabi | 0.00 | eur | 0 | 0 |
| Giorgio Gori International Freight Forwards (Pty) Ltd. | South Africa, Ferndale | 100.00 | eur | 230 | – 63 |
| Hull, Blyth (Angola) Ltd. (Angolan branch) 1) | Angola, Luanda | 100.00 | eur | 7,006 | –1,699 |
| Hull Blyth Angola Viagens e Turismo Lda.1) | Angola, Luanda | 99.99 | eur | – | – |
| Kinesis Logistics (Pty) Ltd. 5) | South Africa, Germiston | 100.00 | eur | –377 | 0 |
| Misr Freight sarl | Egypt, Cairo | 100.00 | eur | 348 | 8 |
| Sherkate Haml-oNaghl Sarie dhl Kish | Iran, Tehran | 100.00 | eur | –1 | 0 |
| snas Lebanon sarl7b) | Lebanon, Beirut | 45.00 | eur | 703 | 255 |
| snas Trading and Contracting 6) | Saudi Arabia, Riyadh | 0.00 | eur | 0 | 0 |
| ssa Regional Services (Pty) Ltd. | South Africa, Johannesburg | 100.00 | eur | 1,252 | 52 |
| Trans Care Fashion sarl (Morocco) 5) | Morocco, Casablanca | 100.00 | eur | – 535 | 0 |
| Ukhozi Logistics (Pty) Ltd. | South Africa, Boksburg | 100.00 | eur | 116 | 0 |
| Uniauto-Organizacoes Technicas e Industriasis sarl 5) | Angola, Luanda | 98.93 | eur | 15 | 0 |
Reported ifrs data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2009. 3) Amounts from 2008. 4) Data not available. 5) Dormant. 6) Inclusion in accordance with sic 12. 7a) Inclusion in accordance with ias 27.13 (a). 7b) Inclusion in accordance with ias 27.13 (b – d). 8) In liquidation. 9) Local gaap. 10) Voting rights. 11) Company is included in group fi nancial statements of Deutsche Postbank ag. 12) Foundation in 2010.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| Adamscott Limited 3), 8) | United Kingdom, Southampton | 100.00 | eur | 68,225 | 5,339 |
| Alistair McIntosh Trustee Company Limited 5), 9) | United Kingdom, London | 100.00 | gbp | 0 | – |
| Arbuckle, Smith & Company Limited 9) | United Kingdom, Glasgow | 100.00 | gbp | 5,298 | 0 |
| Arbuckle, Smith Investments Limited 5), 9) | United Kingdom, Glasgow | 100.00 | gbp | 651 | – |
| asg Leasing hb 9) | Sweden, Stockholm | 100.00 | sek | 5 | 0 |
| Bernard Brook Transport (Elland) Limited 2), 9) | United Kingdom, Bracknell | 100.00 | gbp | 887 | 0 |
| Beteiligungsgesellschaft Privatstraße gvz Eifeltor gbr 4) Germany, Grafschaft-Holzweiler | 53.54 | eur | – | – | |
| Calayan Cargo International (bvi) Ltd.4), 5) | United Kingdom, Tortola | 100.00 | gbp | – | – |
| Cassin Partners Ltd.4), 5) | Ireland, Dublin | 100.00 | eur | – | – |
| Danzas Logistics Limited 4), 5) | United Kingdom, Staines | 100.00 | gbp | – | – |
| degemolto Grundstücksverwaltungsgesellschaft mbH & Co. Immobilien-Vermietungs kg 2), 9) |
Germany, Meinerzhagen | 100.00 | eur | 16 | 32 |
| Deutsche Post Grundstücks-Vermietungsgesellschaft beta mbH 2), 9) |
Germany, Bonn | 100.00 | eur | 17 | 0 |
| Deutsche Post Immobilienentwicklung Grundstücks gesellschaft mbH & Co. Objekt Weißenhorn kg 4) |
Germany, Bonn | 100.00 | eur | – | – |
| Deutsche Post Pensionsfonds AG 2), 9) | Germany, Bonn | 99.98 | eur | 3,420 | 0 |
| Deutsche Post Pensions-Treuhand GmbH & Co. kg 2), 9) | Germany, Bonn | 99.98 | eur | 10 | 0 |
| dhl Employee Benefi t Fund asbl / vzw 2), 9) | Belgium, Diegem | 100.00 | eur | –240 | 0 |
| dhl Exel Supply Chain Limited 4), 5) | United Kingdom, Bracknell | 100.00 | gbp | – | – |
| dhl Pensions Investment Fund Limited 4), 5) | United Kingdom, Bedford | 100.00 | gbp | – | – |
| dhl Systems Limited 3), 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| dhl Trustees Limited 4), 5) | United Kingdom, Bedford | 74.00 | gbp | – | – |
| dhl uk Pension Trustees Limited 5), 9) | United Kingdom, Hounslow | 100.00 | gbp | 0 | – |
| dmw-Expo 3), 9) | Russia, Moscow | 66.00 | rub | 1,800 | 430 |
| Elan International (Ireland) Ltd.4), 5) | Ireland, Dublin | 100.00 | eur | – | – |
| Excel Logistics Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Exel (Northern Ireland) Limited 5), 9) | United Kingdom, Mallusk | 100.00 | gbp | 511 | – |
| Exel Express Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Exel Holdings (Russia) Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | –3 | – |
| Exel International Holdings Limited 2), 8) | United Kingdom, Bedford | 100.00 | gbp | 258,564 | 1,600 |
| Exel Logistics (Ireland) Limited 8) | Ireland, Dublin | 100.00 | gbp | – | – |
| Exel Nominee No 2 Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Exel Overseas Finance 2), 8) | United Kingdom, Bedford | 100.00 | eur | 343,765 | 15,666 |
| Exel Sand and Ballast Company Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 189 | – |
| Exel Secretarial Services Limited 4), 5) | United Kingdom, Bracknell | 100.00 | gbp | – | – |
| Exel Share Scheme Trustees Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Exel Taskforce Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | – 48 | – |
| Fashionfl ow Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| forum gelb GmbH 9) | Germany, Bonn | 100.00 | eur | 25 | 2 |
| Higgs Air España s. a.8) | Spain, Barcelona | 100.00 | eur | – | – |
| Hi-Tech Logistics Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 639 | – |
| Industrial & Marine Engineering Co of Nigeria Limited 4) United Kingdom, London | 100.00 | gbp | – | – | |
| it4logistics ag 2), 9) | Germany, Potsdam | 75.10 | eur | 366 | 121 |
| kxc (exel) gp investment limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 15 | – |
| Mail Service GmbH Hannover 9) | Germany, Hanover | 100.00 | eur | 25 | – 9 |
| Mail Service GmbH Köln 9) | Germany, Cologne | 100.00 | eur | 25 | –10 |
| McGregor Air Charter Limited 3), 8) | United Kingdom, Southampton | 100.00 | eur | 61,816 | 4,222 |
| Mercury Airfreight Holdings Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 500 | – |
| Mexicoblade Limited 5), 9) | United Kingdom, London | 100.00 | gbp | –2 | – |
| Millsdale 3), 8) | United Kingdom, Southampton | 100.00 | eur | 4,219 | 250 |
| msas Global Logistics Limited 2), 8) | United Kingdom, Bracknell | 100.00 | eur | 63,790 | 4,290 |
| msas Project Services 3), 8) | United Kingdom, Bracknell | 100.00 | eur | 15,560 | 1,109 |
| Neptune Logistics Ltd. 8) | Ireland, Dublin | 100.00 | eur | – | – |
| Newsround International Airfreight Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 526 | – |
| nfc International Limited 3), 8) | United Kingdom, Bracknell | 100.00 | eur | 257,122 | 0 |
| nfc Investments Limited 9) | United Kingdom, Bracknell | 100.00 | gbp | 1 | 0 |
| Ocean (bfl) Limited 3), 8) | United Kingdom, Bracknell | 100.00 | eur | 1 | 0 |
| Ocean (Shetland) Limited 2), 8) | United Kingdom, Glasgow | 100.00 | eur | 195 | 0 |
| Ocean Group (Ireland) Ltd. 2), 8) | Ireland, Dublin | 100.00 | eur | 3,321 | 0 |
| Ocean Group Share Scheme Trustee Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Ocean Transport & Trading Limited 2), 8) | United Kingdom, Bracknell | 100.00 | eur | 601,233 | 20,275 |
| Oceanair International Limited 3), 8) | United Kingdom, Bracknell | 100.00 | eur | 57,819 | 4,569 |
| Outrack Credit Ireland Ltd.4), 5) | Ireland, Dublin | 100.00 | eur | – | – |
| Power Europe Development No. 2 Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Print to Post Limited 5), 9) | United Kingdom, London | 100.00 | gbp | 11 | – |
| Siegfried Vögele Institut (svi) – Internationale Gesellschaft für Dialogmarketing mbH 9) |
Germany, Königstein | 100.00 | eur | 50 | 20 |
| Tankclean (Ireland) Ltd.8) | Ireland, Dublin | 100.00 | eur | – | – |
| Tankfreight Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 2 | – |
| The Stationery Offi ce Pension Trustees Limited 5), 9) | United Kingdom, London | 100.00 | gbp | 0 | – |
| The Stationery Offi ce Trustees Limited 5), 9) | United Kingdom, London | 100.00 | gbp | 0 | – |
| Tibbett & Britten (n. i.) Limited 5), 9) | United Kingdom, Ballyclare | 99.00 | gbp | – 5 | – |
| Tibbett & Britten (usa) Limited 2), 8) | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Tibbett & Britten Applied Limited 9) | United Kingdom, Bracknell | 100.00 | gbp | 1 | –72 |
| Tibbett & Britten Automotive Assets Limited 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Tibbett & Britten Consumer Group Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Tibbett & Britten Consumer Limited 9) | United Kingdom, Bracknell | 100.00 | gbp | 10 | 0 |
| Tibbett & Britten Dairy Logistics Sp. z o. o.9) | Poland, Warsaw | 100.00 | pln | 50 | 0 |
| Tibbett & Britten Finance (uk) Limited 3), 8) | United Kingdom, Bracknell | 100.00 | eur | 10,955 | 0 |
| Tibbett & Britten Group Iberia Limited 8) | United Kingdom, Bracknell | 100.00 | gbp | – | – |
| Tibbett & Britten Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Tibbett & Britten Pension Trust Limited 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Tibbett & Britten Quest Trustees Limited 9) | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Track One Logistics Limited 5), 9) | United Kingdom, Bracknell | 100.00 | gbp | 92 | – |
| Transcare Gulf Logistics International Limited 4), 5) | United Kingdom, Bedford | 50.00 | gbp | – | – |
| Trucks and Child Safety Limited 5), 9) | United Kingdom, Bedford | 100.00 | gbp | 100 | – |
Reported ifrs data before profi t transfer
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| UNITRANS Deutschland Gesellschaft für Termin- verkehre mbH 4) |
Germany, Düsseldorf | 65.38 | EUR | ||
| Van Gend & Loos — Euro Express NV 9) | Belgium, Ternat | 100.00 | EUR | $-206$ | $\mathbf{1}$ |
| Williams Lea (us Acquisitions) Limited 3), 9 | United Kingdom, London | 100.00 | GBP | 1 | $\mathbf{0}$ |
| Williams Lea Group Quest Trustees Limited s), 9 | United Kingdom, London | 100.00 | GBP | 0 | |
| Williams Lea International Limited 5), 9) | United Kingdom, London | 100.00 | GBP | 0 | |
| Americas | |||||
| Axis Logistics Inc. 9) | Canada, Toronto | 100.00 | CAD | 3 | 0 |
| Deutsche Post World Net usa Inc.4) | usa, Washington | 100.00 | USD | ||
| DHL Consumer Services sc México 2), 9) | Mexico, Tepotzotlán | 100.00 | MXP | $-5,186$ | 6,704 |
| DHL Express (Belize) Limited 2), 9) | Belize, Belize City | 100.00 | USD | 20 | 0 |
| DHL Global Forwarding (Brazil) Logistics Ltda.4) | Brazil, São Paulo | 100.00 | BRL | ||
| DHL Holdings N.V. 8) | Dutch Antilles, Willemstad | 100.00 | ANG | ||
| DHL International (Antigua) Ltd. 4), 5) | Antigua and Barbuda, St. Johns | 100.00 | USD | ||
| DHL Servicios, S.A. de C.V. 2), 9) | Mexico, Mexico City | 100.00 | MXP | $-251$ | 39 |
| DHL St. Lucia Ltd. 4), 5) | St. Lucia, Castries | 100.00 | XCD | ||
| Exel Dedicated Inc. 12 | Canada, Mississauga | 100.00 | CAD | ||
| Hyperion Properties Inc. 4) | USA, Westerville | 100.00 | USD | ||
| Inversiones 3340, C.A. 4) | Venezuela, Caracas | 49.00 | VEF | ||
| Power Packaging (Geneva), LLC 4) | USA, Westerville | 100.00 | USD | ||
| Power Packaging, Inc. 4) | USA, Westerville | 100.00 | USD | ||
| Radix Group International, Inc. 4) | usa, Miami | 100.00 | USD | ||
| Safe Way Argentina s.A. 9) | Argentina, Buenos Aires | 99.97 | EUR | 34 | 0 |
| Skyhawk Transport Ltd. 9) | Canada, Mississauga | 100.00 | CAD | 35,000 | 0 |
| USC Distribution Services LLC 4) | usa, Westerville | 100.00 | USD | ||
| Asia Pacific | |||||
| Concorde Air Logistics Ltd. 2), 9) | India, Mumbai | 99.54 | INR | 43,610 | 3,096 |
| онг China Limited 8) | China, Kowloon Bay | 100.00 | USD | 0 | 0 |
| DHL Customs Brokerage Corp. 2), 9) | Philippines, Pasay City | 100.00 | PHP | 1,167 | 35 |
| Exel Logistics Delbros Philippines Inc. 5), 8) | Philippines, Manila | 60.00 | PHP | ||
| Exel Logistics Services (M) Sdn. Bhd. 5), 8) | Malaysia, Shah Alam | 100.00 | PHP | ||
| Skyline Air Logistics Ltd. 2), 9 | India, Mumbai | 99.99 | INR | 36,797 | 12,498 |
| Tibbett & Britten Kontena Nasional Sdn. Bhd. 5), 8] | Malaysia, Darul Ehsan | 60.00 | MYR | ||
| Watthanothai Company Ltd. 9) | Thailand, Bangkok | 49.00 | THB | 1,325 | $-21$ |
| Yamato Dialog & Media Co. Ltd. 2), 9 | Japan, Tokyo | 49.00 | JPY | 629,076 | 3,477 |
| Other regions | |||||
| Blue Funnel Angola Ltda. 5), 9) | Angola, Luanda | 99.99 | USD | $-61$ | $\overline{\phantom{0}}$ |
| Danzas AEI (private) Ltd.4), 5) | Kenya, Nairobi | 100.00 | KES | ||
| Danzas AEI (Private) Ltd. 4), 5) | Zimbabwe, Harare | 100.00 | EUR | ||
| Danzas AEI Intercontinental LTD 8) | Malawi, Blantyre | 100.00 | MWK | ||
| Danzas Intercontinental Pte. Ltd. 2), 9) | Mauritius, Port Louis | 40.00 | USD | -56 | $-8$ |
| рнг Air Freight Forwarder (Egypt) wгг 8) | Egypt, Cairo | 99.90 | EGP | ||
| онг Danzas Air & Ocean (Kenya) Ltd. 8) | Kenya, Nairobi | 100.00 | KES | ||
| Elder Dempster Ltda. 5), 9) | Angola, Luanda | 99.99 | USD | -61 | |
| Exel Domestic Distribution (Pty) Ltd. 8) | South Africa, Boksburg | 100.00 | ZAR | ||
| Exel Contract Logistics (SA) (Pty) Ltd. 8) | South Africa, Elandsfontein | 100.00 | ZAR | ||
| Fashion Logistics (Pty) Ltd. 8) | South Africa, Germiston | 100.00 | ZAR | ||
| Palmer Womersley Distributors (Pty) Ltd. 8) | South Africa, Germiston | 100.00 | ZAR | ||
| Storecare (Pty) Ltd. 8) | South Africa, Germiston | 100.00 | ZAR | ||
| Synergistic Alliance Investments (Pty) Ltd. 5), 9 | South Africa, Germiston | 100.00 | ZAR | $-3,341$ | |
| Tibbett & Britten Egypt Ltd. 8) | Egypt, Cairo | 50.00 | EGP | ||
Reported ifrs data before profi t transfer
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Europe | |||||
| AeroLogic GmbH | Germany, Leipzig | 50.00 | eur | 18,494 | 7,814 |
| Danzas dv llc | Russia, Yuzhno-Sakhalinsk | 50.00 | eur | 310 | – 4 |
| Americas | |||||
| ec Logistica s. a. | Argentina, Buenos Aires | 51.00 | eur | 217 | 146 |
| ev Logistics | Canada, Vancouver | 50.00 | eur | 1,083 | 1,877 |
| LifeConEx llc | usa, Plantation | 50.00 | eur | –1,389 | –180 |
| Asia Pacific | |||||
| Express Couriers Limited 1) | New Zealand, Wellington | 50.00 | eur | 86,252 | 9,002 |
| Roadstar Transport Limited 1) | New Zealand, Wellington | 50.00 | eur | – | – |
| Parcel Direct Group Pty. Limited 1) | Australia, Mascot | 50.00 | eur | – 568 | –23,198 |
| Couriers Please Pty. Ltd.1) | Australia, Pymble | 50.00 | eur | – | – |
| Express Couriers Australia (sub 1) Pty. Limited 1) | Australia, Mascot | 50.00 | eur | – | – |
| Hills Parcel Direct Pty. Limited 1) | Australia, Pymble | 50.00 | eur | – | – |
| Northern Kope Parcel Express (sa) Pty. Limited 1) | Australia, Pymble | 50.00 | eur | – | – |
| Northern Kope Parcel Express Pty. Ltd.1) | Australia, Pymble | 50.00 | eur | – | – |
| Parcel Direct Australia Pty. Limited 1) | Australia, Pymble | 50.00 | eur | – | – |
| Parcel Overnight Direct Pty. Ltd.1) | Australia, Pymble | 50.00 | eur | – | – |
| Other regions | |||||
| Bahwan Exel llc | Oman, Muscat | 49.00 | eur | 666 | 6,010 |
| Exel Saudia llc | Saudi Arabia, Al Khobar | 50.00 | eur | 6,213 | 2,910 |
Reported ifrs data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2009. 3) Amounts from 2008. 4) Data not available. 5) Dormant. 6) Inclusion in accordance with sic 12. 7a) Inclusion in accordance with ias 27.13 (a). 7b) Inclusion in accordance with ias 27.13 (b – d). 8) In liquidation. 9) Local gaap. 10) Voting rights. 11) Company is included in group fi nancial statements of Deutsche Postbank ag. 12) Foundation in 2010.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| Betriebs-Center für Banken ag 11) | Germany, Frankfurt am Main | 39.50 | eur | 322,502 | 40,273 |
| Betriebs-Center für Banken Processing GmbH 11) | Germany, Frankfurt am Main | 39.50 | eur | 4,521 | 1,289 |
| bhw – Gesellschaft für Wohnungswirtschaft mbH 11) | Germany, Hameln | 39.50 | eur | 967,039 | – 5,895 |
| bhw – Gesellschaft für Wohnungswirtschaft mbH & Co. Immobilienverwaltungs kg 11) |
Germany, Hameln | 39.50 | eur | 92,878 | 4,380 |
| bhw Bausparkasse ag 11) | Germany, Hameln | 39.50 | eur | 1,445,806 | 8,041 |
| bhw Gesellschaft für Vorsorge mbH 11) | Germany, Hameln | 39.50 | eur | 237,982 | 1,278 |
| bhw Holding Aktiengesellschaft 11) | Germany, Berlin | 39.50 | eur | 815,642 | 9,744 |
| bhw Immobilien GmbH 11) | Germany, Hameln | 39.50 | eur | 3,196 | 721 |
| Cargo Center Sweden ab 9) | Sweden, Stockholm | 50.00 | sek | 17,830 | 147,097 |
| Deutsche Postbank ag 2), 9) | Germany, Bonn | 39.50 | eur | 1,650,646 | – 491,630 |
| Deutsche Postbank Finance Center Objekt sarl 11) | Luxembourg, Munsbach | 39.50 | eur | 2,226 | – 55 |
| Deutsche Postbank Financial Services GmbH 11) | Germany, Frankfurt am Main | 39.50 | eur | 5,385 | 580 |
| Deutsche Postbank International s. a. 11) | Luxembourg, Munsbach | 39.50 | eur | 970,171 | 99,036 |
| Deutsche Postbank Vermögens-Management s. a. 11) | Luxembourg, Munsbach | 39.50 | eur | 31,745 | 11,325 |
| dpbi Immobilien KGaA 11) | Luxembourg, Munsbach | 39.50 | eur | 348 | 120 |
| dsl Portfolio GmbH & Co. kg 11) | Germany, Bonn | 39.50 | eur | 14,045 | 462 |
| dsl Holding Aktiengesellschaft 11) | Germany, Bonn | 39.50 | eur | 57,437 | 395 |
| dsl Portfolio Verwaltungs GmbH 11) | Germany, Bonn | 39.50 | eur | 27 | 0 |
| Merkur i sicav - fis 11) | Luxembourg, Luxembourg | 39.50 | eur | 2,647,287 | 180,118 |
Reported ifrs data before profi t transfer
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Merkur ii sicav - fis 11) | Luxembourg, Luxembourg | 39.50 | eur | 100,848 | –10 |
| pb Factoring GmbH 11) | Germany, Bonn | 39.50 | eur | 17,440 | 879 |
| pb Firmenkunden ag 11) | Germany, Bonn | 39.50 | eur | 2,084 | 61 |
| pb Spezial-Investmentaktiengesellschaft mit Teilgesellschaftsvermögen 11) |
Germany, Frankfurt am Main | 38.35 | eur | 5,370,264 | 299,646 |
| Postbank Beteiligungen GmbH 11) | Germany, Bonn | 39.50 | eur | 310,325 | 0 |
| Postbank Direkt GmbH 11) | Germany, Bonn | 39.50 | eur | 22,079 | 1,019 |
| Postbank Filial GmbH 11) | Germany, Bonn | 39.50 | eur | 22 | –3 |
| Postbank Filialvertrieb ag 11) | Germany, Bonn | 39.50 | eur | – 6,681 | – 5,835 |
| Postbank Finanzberatung ag 11) | Germany, Hameln | 39.50 | eur | 83,324 | –12,280 |
| Postbank Immobilien und Baumanagement GmbH 11) | Germany, Bonn | 39.50 | eur | 18,874 | 0 |
| Postbank Immobilien und Baumanagement GmbH & Co. Objekt Leipzig kg 11) |
Germany, Bonn | 35.55 | eur | 321 | 3,915 |
| Postbank Leasing GmbH 11) | Germany, Bonn | 39.50 | eur | 5,264 | 153 |
| Postbank Support GmbH 11) | Germany, Cologne | 39.50 | eur | 840 | 90 |
| Postbank Systems ag 11) | Germany, Bonn | 39.50 | eur | 174,845 | 12,798 |
| Postbank Versicherungsvermittlung GmbH 11) | Germany, Bonn | 39.50 | eur | 25 | 0 |
| Unipost Servicios Generales s. l.1) | Spain, Barcelona | 37.69 | eur | 18,549 | 390 |
| Unipost s. a. 1) | Spain, Barcelona | 37.69 | eur | – | – |
| Suresa Cit., s. l. 1) | Spain, L'Hospitalet de Llobregat | 37.69 | eur | – | – |
| vöb-zvd Bank für Zahlungsverkehrsdienstleistungen GmbH 11) |
Germany, Bonn | 29.62 | eur | 12,962 | 4,039 |
| Americas | |||||
| Deutsche Postbank Funding llc i 11) | usa, Wilmington | 39.50 | eur | 25 | 0 |
| Deutsche Postbank Funding llc ii 11) | usa, Wilmington | 39.50 | eur | 4 | – 4 |
| Deutsche Postbank Funding llc iii 11) | usa, Wilmington | 39.50 | eur | 36 | 7 |
| Deutsche Postbank Funding llc iv 11) | usa, Wilmington | 39.50 | eur | 87 | 20 |
| Deutsche Postbank Funding Trust I 11) | usa, Wilmington | 39.50 | eur | 1 | 0 |
| Deutsche Postbank Funding Trust ii 11) | usa, Wilmington | 39.50 | eur | 1 | 0 |
| Deutsche Postbank Funding Trust iii 11) | usa, Wilmington | 39.50 | eur | 1 | 0 |
| Deutsche Postbank Funding Trust iv 11) | usa, Wilmington | 39.50 | eur | 60 | 3 |
| pb (usa) Holdings, Inc.1), 11) | usa, Wilmington | 39.50 | eur | 850,727 | 87,131 |
| Miami mei, llc 1), 11) | usa, Dover | 39.50 | eur | – | – |
| pb Capital Corporation 1), 11) | usa, Wilmington | 39.50 | eur | – | – |
| pb Finance (Delaware), Inc.1), 11) | usa, Wilmington | 39.50 | eur | – | – |
| pb Hollywood i Hollywood Station, llc 1), 11) | usa, Dover | 39.50 | eur | – | – |
| pb Hollywood ii Lofts llc 1), 11) | usa, Dover | 39.50 | eur | – | – |
| pbc Carnegie llc 1), 11) | usa, Wilmington | 39.50 | eur | – | – |
| pb Realty Corporation 1), 11) | usa, New York | 39.50 | eur | – | – |
| pmg Collins, llc 1), 11) | usa, Tallahassee | 39.50 | eur | – | – |
| Asia Pacific | |||||
| Air Hong Kong Ltd.9) | China, Hong Kong | 40.00 | hkd | 350,580 | 433,237 |
| Deutsche Postbank Home Finance Ltd.11) | India, New Delhi | 39.50 | eur | 95,182 | 13,076 |
| Tasman Cargo Airlines Pty. Limited 2), 9) | Australia, Mascot | 48.98 | aud | 5,822 | 217 |
| Other regions | |||||
| Danzas aei Emirates lcc | United Arab Emirates (uae), Dubai | 42.50 | aed | 208,644 | 41,018 |
Reported ifrs data before profi t transfer
Other disclosures
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| Aerologic Management GmbH 3), 8) | Germany, Frankfurt am Main | 50.00 | eur | 182 | –11 |
| malto Grundstücks-Verwaltungsgesellschaft mbH & Co. kg 4), 10) |
Germany, Grünwald | 50.00 | eur | – | – |
Reported ifrs data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2009. 3) Amounts from 2008. 4) Data not available. 5) Dormant. 6) Inclusion in accordance with sic 12. 7a) Inclusion in accordance with ias 27.13 (a). 7b) Inclusion in accordance with ias 27.13 (b – d). 8) In liquidation. 9) Local gaap. 10) Voting rights. 11) Company is included in group fi nancial statements of Deutsche Postbank ag. 12) Foundation in 2010.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Europe | |||||
| Airmail Center Frankfurt GmbH 2), 9) | Germany, Frankfurt am Main | 20.00 | eur | 2,051 | –192 |
| Automotive Logistics (uk) Limited 8) | United Kingdom, Ipswich | 50.00 | gbp | – | – |
| Balsa Grundstücksverwaltungs sarl & Co. Vermietungs kg 4) |
Germany, Mainz | 24.01 | eur | – | – |
| Bike-Logistik GmbH Gesellschaft für Zweiradtrans | |||||
| porte 2), 9) | Germany, Nuremberg | 25.00 | eur | 53 | 3 |
| dcm GmbH & Co Vermögensaufbau Fonds 2 kg 4) | Germany, Munich | 23.81 | eur | – | – |
| Deutsche Fonds Management GmbH & Co. dcm Renditefonds 18 kg 4) |
Germany, Munich | 24.94 | eur | – | – |
| Diorit Grundstücksverwaltungsgesellschaft mbH & Co. Vermietungs kg 4), 10) |
Germany, Mainz | 24.01 | eur | – | – |
| European epc Competence Center GmbH 9) | Germany, Cologne | 30.00 | eur | 206 | 33 |
| expo Logistik ood 3), 9) | Bulgaria, Sofi a | 50.00 | bgn | 5 | 40 |
| Expo-Dan 2), 9) | Ukraine, Kiev | 50.00 | uah | 680 | – 493 |
| Expo Sped Sp. z o. o.2), 9) | Poland, Warsaw | 50.00 | pln | 276 | 54 |
| Gardermoen Perishable Center as 2), 9) | Norway, Gardermoen | 33.33 | nok | 7,884 | 4,584 |
| Jurte Grundstücksverwaltungsgesellschaft mbH & Co. Vermietungs kg 4), 10) |
Germany, Mainz | 24.00 | eur | – | – |
| Maxser Holding b. v.4) | Netherlands, Maastricht | 30.00 | eur | – | – |
| profresh Systemlogistik GmbH 4) | Germany, Hamburg | 33.33 | eur | – | – |
| Americas | |||||
| bits Limited 4), 9) | Bermuda, Hamilton | 40.00 | bmd | – 984 | – |
| Consimex s. a. 4) | Colombia, Medellin | 29.24 | cop | – | – |
| dhl International (Cayman) Ltd. 4), 9) | Cayman Islands, George Town | 40.00 | kyd | – 960 | – |
| Wilmington Commerce Park Partnership 9) | usa, Westerwille | 50.00 | usd | 506 | – 5,332 |
| Other regions | |||||
| Danzas aei Intercontinental (Mauritius) Ltd.8) | Mauritius, Port Louis | 35.00 | mur | – | – |
| dhl Yemen Company Limited (Express Courier) 2), 9) | Yemen, Sanaa | 49.00 | eur | 409 | –27 |
| Drakensberg Logistics (Pty) Ltd.3), 9) | South Africa, Germiston | 50.00 | tar | 7,399 | 3,300 |
Reported ifrs data before profi t transfer
1) Only subgroup data available. 2) Amounts from 2009. 3) Amounts from 2008. 4) Data not available. 5) Dormant. 6) Inclusion in accordance with sic 12. 7a) Inclusion in accordance with ias 27.13 (a). 7b) Inclusion in accordance with ias 27.13 (b – d). 8) In liquidation. 9) Local gaap. 10) Voting rights. 11) Company is included in group fi nancial statements of Deutsche Postbank ag. 12) Foundation in 2010.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net incomce thousands |
|---|---|---|---|---|---|
| Asia Pacific | |||||
| Sinotrans Ltd.1), 2) | China, Beijing | 5.59 | rmb | 10,704,331 | 554,149 |
| Reported ifrs data before profi t transfer |
1) Only subgroup data available. 2) Amounts from 2009.
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 material opportunities and risks associated with the expected development of the Group.
Bonn, 18 February 2011 Deutsche Post AG Th e Board of Management
Dr Frank Appel Ken Allen
Jürgen Gerdes Walter Scheurle
Bruce Edwards Lawrence Rosen
Hermann Ude
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 2010. 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) Handels gesetzbuch (HGB; German Commercial Code) 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 (IDW; Institute of Public Auditors in Germany), and additionally observed the Inter national 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 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 nancial 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 IFRS s as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315 a (1) HGB 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, 18 February 2011
PricewaterhouseCoopers Aktiengesellschaft Wirtschaft sprüfungsgesellschaft
Klaus-Dieter Ruske Dietmar Prümm Wirtschaft sprüfer Wirtschaft sprüfer
(German Public Auditor) (German Public Auditor)
Deutsche Post dhl was the first logistics company to introduce a carbon neutral shipping service for both consumers and business customers: Gogreen. The carbon dioxide emissions generated during letter, parcel, express and freight transport are measured and offset with carbon credits from climate protection projects. This service is already available in more than 30 countries and includes mail, parcel and express products as well as our freight forwarding business. We are striving to improve our carbon efficiency by 30% over 2007 levels by the year 2020 so that we minimise the impact of our business on the environment.
| INDEX | 231 |
|---|---|
| GLOSSARY | 232 |
| GRAPHS AND TABLES | 233 |
| CONTACTS | 234 |
| MULTI-YEAR REVIEW | IV |
| EVENTS | VI |
| Advertising mail 54 f. |
|---|
| Air freight 21, 30, 62 ff., 103 f., 108 |
| Annual General Meeting 23 ff., 39, 115 ff., 124, 127 f., 134 f., 172 |
| Articles of Association 23 ff., 134 |
| Auditor's report 116, 228 |
| Authorised capital 24, 172 |
| Board of Management |
|---|
| 16 f., 22 ff., 37, 39, 88, 99, 113 ff., 118 ff., 122, 124 ff., 128 f., |
| 154, 201 ff., 228 |
| Board of Management remuneration 114, 128 ff., 205 |
| Bonds 42, 44, 181 f. |
| Brands 22, 85 ff., 103, 150, 158, 166 |
| Capital expenditure 40, 45 ff., 110, 159 |
|---|
| Cash fl ow 40 f., 47 f., 50, 109, 142, 184 ff., 187 ff., 192 f. |
| Cash fl ow statement 47, 142, 149, 184 ff. |
| Change in control 26, 130 f. |
| Consolidated net profi t 37, 39, 139, 140, 143, 165 |
| Consolidated revenue 38, 145 |
| Contingent capital 24 f., 172 |
| Continuing operations 37 ff., 139, 158, 165 |
| Contract logistics 21, 30, 38, 66 ff., 108, 145, 159 |
| Corporate governance 22, 26, 111 ff., 124 ff., 206 |
| Cost of capital 32, 167 |
| Credit lines 42, 186 |
| Credit rating 32, 40 f., 43, 109 |
Declaration of Conformity 114 f., 124, 206 Dialogue Marketing 22, 50, 52, 54 f., 85, 159 Discontinued operations 39, 146, 154, 158 f., 165 Dividend 34, 37, 39, 116, 165, 174
| Earnings per share 34, 37, 39, 139, 165 |
|---|
| ebit after asset charge 32 f., 128 |
| e-Postbrief 21 f., 31, 38, 45, 51 f., 86, 91, 96, 102, 107, 114 |
| Equity ratio 49, 173 |
| express |
| 21 f., 38, 45 f., 50, 57 ff., 65, 70 f., 94, 102 f., 110, 158 f. |
| Global Business Services 21 f., 95, 159 |
|---|
| Global economy 27 f., 56, 60, 88, 106, 109 |
| Global Forwarding 15, 40, 50, 61 ff., 94, 96, 145, 189 |
| global forwarding, freight |
| 21 f., 46, 50, 62 ff., 70 f., 85, 95, 103 f., 110, 159 |
| Global Mail 22, 50, 53, 56, 85, 159 |
| GoGreen 57, 75 ff., 83, 97, 100, 124 |
| GoHelp 77 f., 100, 124 |
| GoTeach 78, 100, 124 |
| Guarantees 40 |
I
L
| Illness rate 72 | ||
|---|---|---|
| Income statement 139, 161 ff. | ||
| Investments 40, 44, 45 ff., 95, 109, 110, 127, 185 |
| Letters of comfort 40, 43 | |
|---|---|
| Liquidity management 42, 186 | |
| Living responsibility 75 |
| mail 21 f., 38, 45, 50, 51 ff., 70 f., 101 f., 109 f., 158 f. |
|---|
| Mail Communication 22, 50, 51, 54, 85, 159 |
| Mandates 114, 122 f. |
| Market shares 51 ff., 58 f., 62 f., 67, 108 |
| Market volumes 30 |
| Net asset base 32 f. |
|---|
| Net debt 49, 173 |
| Net gearing 49, 173 |
| Net interest cover 49 |
| Non-recurring items 33, 39, 56, 61, 65, 69, 109 |
Ocean freight 21, 30, 62 ff., 103 f., 108
Oil price 28, 38, 107
Operating cash fl ow 40 f., 47, 50, 56, 61, 65, 69
Opportunities 88 ff., 113
Outlook 88 ff.
| Parcel Germany 22, 50, 53, 55, 85, 101, 107, 159 |
|---|
| Pension Service 22, 50, 51, 85, 159 |
| Press Services 22, 50, 52, 55, 85, 107, 159 |
Quality 57, 82 ff., 93, 101 ff.
| Rating 32, 40 f., 43, 79, 109 |
|---|
| Regulation 31, 92 f., 200 f. |
| Responsibility statement 228 |
| Retail outlets 22, 46, 50, 53, 55, 83, 101, 110, 159 |
| Return on sales 37, 50, 56 |
| Revenue |
| 37, 38, 50, 54 ff., 60 f., 63 ff., 68, 109, 139, 145, 158 |
| Risk management 88 ff., 115, 186, 188 f. |
| Road transport 30, 63, 65, 108 |
| Segment reporting 37 f., 54, 68, 158 ff. |
|---|
| Share capital 23 ff., 172, 202, 205 |
| Shareholder structure 36 |
| Shareholdings 144 f., 152, 157, 163, 196 ff. |
| Share price 35 |
| Staff costs 38, 70, 139, 154, 161, 180, 185 |
| Strategy 2015 31, 70, 75, 86, 99 ff., 114, 116 |
| Supervisory Board 23 ff., 113 ff., 117, 123, 134 ff., 204 ff. |
| Supervisory Board committees 114 f., 117, 127 |
| Supervisory Board remuneration 134 ff., 205 |
| supply chain |
| 21 f., 38, 46 f., 50, 66 ff., 84 f., 95, 105, 108, 110, 159 |
Trade volumes 29 f. Training 72 f.
| wacc 32, 41 | ||
|---|---|---|
| Williams Lea | ||
| 22, 38, 46 f., 50, 52, 54, 66 ff., 85, 108, 159, 206 | ||
| Working capital 32, 47, 56, 65, 69, 80, 185 |
Logistics services for manufacturer exchanges, returns and repairs.
Outsourcing specifi c business functions to a thirdparty service provider.
The exchange of goods, services and information between businesses.
Time-critical samples (tissue, blood) are transported during the clinical test phase of a new drug.
Large, standardised, lockable storage unit with a volume of more than three cubic metres and a holding capacity of more than five tonnes used to transport a variety of goods.
Complex logistics and logistics-related services along the value chain that are performed by a contract logistics service provider. Services are tailored to a particular industry or customer and are generally based on long-term contracts.
All outbound international mail.
A service that involves the clearing of goods through customs for importers and exporters, which includes the preparation and/or (electronic) submission of documents as well as the calculation of taxes, duties and excises on behalf of the customer.
Delivery of shipments on a specifi ed day.
Market-orientated activities that apply direct communications to selectively reach target groups using a personal, individualised approach.
New unit that brings together the Group's existing innovation drivers, develops innovative solutions and promotes cross-divisional co-operation.
A means of secure and reliable online communication that can be delivered both electronically and by traditional mail.
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.
German national regulator for electricity, gas, telecommunications, post and railway.
Group-wide programme aimed at improving service quality and enhancing customer focus.
The container is completely loaded by the sender and handed over to the freight carrier.
Complete capacity of truck is utilised from sender to receiver.
Collection point for goods intended for export and for further distribution of goods upon import; customs clearance point.
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.
Supply of manufacturing and assembly locations.
The procurement of goods and their transport from the place of origin/manufacture to the production line.
Transport chain combining different modes of transport, often road and rail.
A logistics service provider who assumes the organisation of all or key logistics processes for the customer.
Loads that will not fi ll a container and are consolidated for ocean transport.
Shipment weighing approximately three tonnes that is smaller than a full truckload and consolidated with other senders' and/or receivers' shipments into one load for transport.
Parcel machine where parcels and small packages can be deposited and collected around the clock.
Parcel box for franked parcels and small packages (maximum dimensions: 50 × 40 × 30 cm).
Postal retail outlets operated primarily by partners in the retail sector who offer postal services in addition to their 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.
A press product of which more than 30% consists of journalistic reporting.
Procedure whereby the German 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 end users at different addresses, transported to the pre-determined repair company, collected after repair and returned to the end user.
Delivery within 24 hours of order placement.
Letter measuring a maximum of 235 × 125 × 5 mm and weighing up to 20g.
A press product of which no more than 30 % consists of journalistic reporting.
A series of connected resources and processes from sourcing materials to delivering goods to consumers.
Target-specifi c advertising on websites aimed at achieving the highest possible advertising effectiveness.
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.
Twenty-foot equivalent unit. Standardised 20-footlong, 8-foot-wide container unit (6 × 2.4 metres).
Delivery of time-critical shipments for which the day or time of delivery has been specifi ed or guaranteed.
| 01.1 Selected key fi gures (continuing operations) | I | |
|---|---|---|
| 02 | Group structure | II |
| 03 | Target-performance comparison | III |
| 04 | Multi-year review | IV |
| 05 | Events | VI |
| a.01 Organisational structure | |
|---|---|
| of Deutsche Post DHL | 22 |
|---|---|
| a.02 Group structure from different perspectives | 22 |
| a.03 Global economy: growth indicators for 2010 | 27 |
| a.04 Brent crude spot price and euro / us dollar exchange rate in 2010 |
28 |
| a.05 Trade volumes: compound annual growth rate 2009 – 2010 |
29 |
| a.06 Major trade fl ows: 2010 volumes | 30 |
| a.07 Market volumes | 30 |
| a.08 eac calculation | 32 |
| a.09 Net asset base calculation | 32 |
| a.10 ebit after asset charge (eac) | 33 |
| a.11 Net asset base (unconsolidated) | 33 |
| a.12 Deutsche Post shares: multi-year review | 34 |
|---|---|
| a.13 Peer group comparison: closing price on 30 December |
34 |
| a.14 Share price performance | 35 |
| a.15 Candlestick graph / 30-day moving average | 35 |
| a.16 Shareholder structure | 36 |
| a.17 Selected key indicators for results of operations (continuing operations) |
37 |
|---|---|
| a.18 Consolidated revenue from continuing operations |
38 |
| a.19 Consolidated ebit from continuing operations |
39 |
| a.20 Total dividend and dividend per no-par value share |
39 |
| a.21 Finance strategy | 41 |
| a.22 ffo to debt | 41 |
| a.23 Ratings awarded by rating agencies | 43 |
| a.24 Financial liabilities | 44 |
| a.25 Operating lease obligations by asset class | 44 |
| a.26 Investments by region | 45 |
| a.27 Capex and depreciation, amortisation and impairment losses, full year |
45 |
| a.28 Capex and depreciation, amortisation | |
|---|---|
| and impairment losses, q4 | 45 |
| a.29 Operating cash fl ow by division, 2010 | 47 |
| a.30 Selected cash fl ow indicators | |
| (continuing operations) | 47 |
| a.31 Selected indicators for net assets | |
| (continuing operations) | 49 |
| a.32 Net liquidity ( – ) / net debt ( + ) | 49 |
| Divisions | |
| a.33 Key fi gures by operating division | 50 |
| a.34 Domestic mail communication market, 2010 | 51 |
| a.35 Domestic dialogue marketing market, 2010 | 52 |
| a.36 Domestic press services market, 2010 | 52 |
| a.37 Domestic parcel market, 2010 | 53 |
| a.38 International mail market, 2010 (outbound) | 53 |
| a.39 Mail Communication: volumes | 54 |
| a.40 Dialogue Marketing: volumes | 55 |
| a.41 Parcel Germany: volumes | 55 |
| a.42 Mail International: volumes | 56 |
| a.43 European international express market, | |
| 2009: top 4 | 58 |
| a.44 Americas international express market, 2009: top 4 |
59 |
|---|---|
| a.45 Asia Pacifi c international express market, 2009: top 4 |
59 |
| a.46 International express market in the eemea region, 2009: top 4 |
59 |
| a.47 express: revenue by product | 60 |
| a.48 express: volumes by product | 60 |
| a.49 Air freight market, 2009: top 4 | 62 |
| a.50 Ocean freight market, 2009: top 4 | 63 |
| a.51 European road transport market, 2009: top 5 |
63 |
| a.52 Global Forwarding: revenue | 64 |
| a.53 Global Forwarding: volumes | 64 |
| a.54 Contract logistics market, 2009: top 7 | 67 |
| a.55 supply chain: revenue by sector, 2010 | 68 |
| a.56 supply chain: revenue by region, 2010 | 68 |
| Non-Financial Performance Indicators | |
| a.57 Number of employees (continuing operations) |
70 |
| (continuing operations) | 70 |
|---|---|
| a.58 Employees by region, 2010 | 71 |
| a.59 Illness rate | 72 |
| a.60 Occupational safety | 72 |
| a.61 Traineeships, Deutsche Post DHL, worldwide 72 | |
| a.62 Gender distribution in top management, 2010 |
74 |
| a.63 Work-life balance 74 |
||
|---|---|---|
| a.64 Idea management | 75 |
|---|---|
| a.65 co2 emissions, 2010 | 75 |
| a.66 Procurement expenses, 2010 | 79 |
| a.67 Brands and business units | 85 |
| a.68 Opportunity and risk management process a.69 Global economy: growth forecasts B Corporate Governance b.01 Members of the Supervisory Board b.02 Committees of the Supervisory Board b.03 Mandates held by the Board of Management b.04 Mandates held by the Supervisory Board Corporate Governance Report b.05 Remuneration paid to the Group Board of Management in 2010: cash components b.06 Remuneration paid to the Group Board of Management in 2010: share-based component with long-term incentive effect 131 b.07 Remuneration paid to the Group Board of Management in 2009: cash components b.08 Remuneration paid to the Group Board of Management in 2009: share-based component with long-term incentive effect 132 b.09 Board of Management pension commit ments under the previous system in fi nan cial year 2010: individual breakdown b.10 Board of Management pension commit ments under the previous system in the previous year (2009): individual breakdown 133 b.11 Board of Management pension commit ments under the new system in fi nancial |
88 106 117 117 |
|---|---|
| 122 | |
| 123 | |
| 131 | |
| 132 | |
| 133 | |
| year 2010: individual breakdown | 134 |
| b.12 Board of Management pension commit ments under the new system in the previous year (2009): individual breakdown 134 |
|
| b.13 Remuneration paid to Supervisory Board members in 2010 |
135 |
| b.14 Remuneration paid to Supervisory Board members in 2009 |
|
| C Consolidated Financial Statements |
136 |
| c.01 Income Statement | 139 |
|---|---|
| c.02 Statement of Comprehensive Income | 140 |
| c.03 Balance Sheet | 141 |
| c.04 Cash Flow Statement | 142 |
| c.05 Statement of Changes in Equity | 143 |
| Contacts | Ordering a copy of the Annual Report | |||||
|---|---|---|---|---|---|---|
| Investor Relations | External | |||||
| Tel.: + 49 (0) 228 182-6 36 36 Fax: + 49 (0) 228 182-6 31 99 e-mail: ir @ deutschepost.de |
e-mail: ir @ deutschepost.de Online: dp-dhl.com/en/investors.html |
|||||
| Press offi ce | Internal | |||||
| Tel.: + 49 (0) 228 182-99 44 | GeT and dhl Webshop | |||||
| Fax: + 49 (0) 228 182-98 80 | Mat. no. 675-601-530 | |||||
| e-mail: pressestelle @deutschepost.de |
Published on 10 March 2011. Deutsche Post Corporate Language Services et al.
The English version of the Annual Report 2010 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.
Provided your mobile phone has Quick Recognition software, you can photograph this code to directly access further information on our website.
| Financial calendar 1) | |||
|---|---|---|---|
| Interim Report | 2011 Annual General | Dividend payment | Interim Report |
| on the fi rst quarter | Meeting (Frankfurt | on the fi rst half | |
| of 2011 | am Main) | of 2011 | |
| 10 | 25 | 26 | 02 |
| MAY 2011 | MAY 2011 | MAY 2011 | AUGUST 2011 |
| Interim Report | 2011 Annual Report | Interim Report | 2012 Annual General |
| on the fi rst nine months | on the fi rst quarter | Meeting (Frankfurt | |
| of 2011 | of 2012 | am Main) | |
| 09 | 13 | 08 | 09 |
| NOVEMBER 2011 | MARCH 2012 | MAY 2012 | MAY 2012 |
| Dividend payment | Interim Report on the fi rst half of 2012 |
Interim Report on the fi rst nine months of 2012 |
|
| 10 | 02 | 08 |
MAY 2012
| 23 March 2011 | j. p. Morgan Aviation, Transportation & Defense Conference (New York) |
|---|---|
| 30 March 2011 | Citi's Airline & Transport Symposium (Milan) |
| 18 May 2011 | Cheuvreux Pan-Europe London Forum (London) |
| 19 – 20 May 2011 | Deutsche Bank German & Austrian Corporate Conference (Frankfurt am Main) |
| 14 – 16 June 2011 | Deutsche Bank Global Industrials Conference (Chicago) |
| 20 – 21 June 2011 | Goldman Sachs Business Services Conference (London) |
| 12 – 13 September 2011 | ubs Transport Conference (London) |
| 14 – 15 September 2011 | ubs Best of Germany Conference (New York) |
| 20 – 21 September 2011 | Sanford C. Bernstein's Strategic Decisions Conference (London) |
| 29 September 2011 | UniCredit German Investment Conference (Munich) |
NOVEMBER 2012
VI
AUGUST 2012
| €m | 2003 adjusted |
2004 adjusted |
2005 adjusted |
2006 adjusted |
2007 adjusted |
2008 adjusted |
2009 adjusted |
2010 |
|---|---|---|---|---|---|---|---|---|
| Revenue | ||||||||
| 12,495 | 12,747 | 12,878 | 15,290 | 14,569 | 14,393 | 13,912 | 13,821 | |
| express | 15,293 | 17,557 | 16,831 | 13,463 | 13,874 | 13,637 | 9,917 | 11,111 |
| logistics | 5,878 | 6,786 | 9,933 | 24,405 | – | – | – | – |
| global forwarding, freight | – | – | – | – | 12,959 | 14,179 | 11,243 | 14,341 |
| supply chain | – | – | – | – | 14,317 | 13,718 | 12,183 | 13,301 |
| financial services | 7,661 | 7,349 | 7,089 | 9,593 | – | – | – | – |
| services | – | – | 3,874 | 2,201 | – | – | – | – |
| Divisions total | 41,327 | 44,439 | 50,605 | 64,952 | 55,719 | 55,927 | 47,255 | 52,574 |
| Corporate Center / Other | ||||||||
| (until 2004: Other / Consolidation; until 2006: Consolidation; | ||||||||
| until 2007: Corporate Center / Other and Consolidation) | –1,310 | –1,271 | – 6,011 | – 4,407 | –1,676 | 1,782 | 1,527 | 1,302 |
| Consolidation | – | – | – | – | – | –3,235 | –2,581 | –2,395 |
| Continuing operations | – | – | – | – | 54,043 | 54,474 | 46,201 | 51,481 |
| Discontinued operations | – | – | – | – | 10,335 | 11,226 | 1,634 | 0 |
| Total | 40,017 | 43,168 | 44,594 | 60,545 | – | – | – | – |
| Profit / loss from operating activities (ebit) | ||||||||
| 2,067 | 2,072 | 2,030 | 2,094 | 1,976 | 2,179 | 1,391 | 1,118 | |
| express | 152 | 117 | –23 | 288 | –272 | –2,194 | –790 | 497 |
| logistics | 116 | 182 | 346 | 751 | – | – | – | – |
| global forwarding, freight | – | – | – | – | 409 | 362 | 174 | 383 |
| supply chain | – | – | – | – | 577 | – 920 | –216 | 233 |
| financial services | 567 | 714 | 863 | 1,004 | – | – | – | – |
| services | – | – | 679 | –229 | – | – | – | – |
| Divisions total | 2,902 | 3,085 | 3,895 | 3,908 | 2,690 | – 573 | 559 | 2,231 |
| Corporate Center / Other (until 2004: Other / Consolidation; until 2006: Consolidation; |
||||||||
| until 2007: Corporate Center / Other and Consolidation) | –246 | – 84 | –131 | –36 | – 557 | –393 | –328 | –395 |
| Consolidation | – | – | – | – | – | 0 | 0 | –1 |
| Continuing operations | – | – | – | – | 2,133 | – 966 | 231 | 1,835 |
| Discontinued operations | – | – | – | – | 1,060 | – 871 | –24 | 0 |
| Total | 2,656 | 3,001 | 3,764 | 3,872 | – | – | – | – |
| Consolidated net profi t / loss for the period | 1,342 | 1,740 | 2,448 | 2,282 | 1,873 | –1,979 | 693 | 2,630 |
| Cash fl ow / investments / depreciation, amortisation | ||||||||
| and impairment losses | ||||||||
| Total cash fl ow from operating activities | 3,006 | 2,336 | 3,624 | 3,922 | 5,151 | 1,939 | – 584 | 1,927 |
| Total cash fl ow from investing activities | –2,133 | –385 | – 5,052 | –2,697 | –1,053 | – 441 | –2,710 | 8 |
| Total cash fl ow from fi nancing activities | –304 | – 493 | –1,288 | – 865 | –1,787 | –1,468 | 1,676 | –1,651 |
| Investments | 2,846 | 2,536 | 6,176 | 4,066 | 2,343 | 3,169 | 1,444 | 1,276 |
| Depreciation, amortisation | ||||||||
| and impairment losses | 1,693 | 1,821 | 1,961 | 1,771 | 2,196 | 2,662 | 1,620 | 1,296 |
| Assets and capital structure | ||||||||
| Non-current assets1) | 15,957 | 17,027 | 25,223 | 26,074 | 25,764 | 20,517 | 22,022 | 24,493 |
| Current assets | ||||||||
| (until 2003: including deferred tax assets)1) | 138,976 | 136,369 | 147,417 | 191,624 | 209,656 | 242,447 | 12,716 | 13,270 |
| Equity (excluding non-controlling interests) | 6,106 | 7,242 | 10,624 | 11,220 | 11,035 | 7,826 | 8,176 | 10,511 |
| Non-controlling interests | 59 | 1,623 | 1,791 | 2,732 | 2,778 | 2,026 | 97 | 185 |
| Current and non-current provisions | 12,673 | 12,441 | 12,161 | 14,233 | 12,276 | 10,836 | 9,677 | 9,427 |
| Current and non-current liabilities2) | 12,778 | 15,064 | 19,371 | 20,850 | 21,544 | 242,276 | 16,788 | 17,640 |
| Total assets | 154,933 | 153,396 | 172,640 | 217,698 | 235,420 | 262,964 | 34,738 | 37,763 |
| 2003 adjusted |
2004 adjusted |
2005 adjusted |
2006 adjusted |
2007 adjusted |
2008 adjusted |
2009 | 2010 | ||
|---|---|---|---|---|---|---|---|---|---|
| Employees / staff costs (from 2007: continuing operations) |
|||||||||
| Total number of employees | |||||||||
| (headcount including trainees) | at 31 Dec. | 383,173 | 379,828 | 502,545 | 520,112 | 512,147 | 512,536 | 477,280 | 467,088 |
| Full-time equivalents (excluding trainees)3) | at 31 Dec. | 348,781 | 340,667 | 455,115 | 463,350 | 453,626 | 451,515 | 424,686 | 418,946 |
| Average number of employees (headcount) | 375,096 | 381,492 | 393,463 | 507,641 | 500,252 | 511,292 | 488,518 | 464,471 | |
| Staff costs | €m | 13,329 | 13,840 | 14,337 | 18,616 | 17,169 | 18,389 | 17,021 | 16,609 |
| Staff cost ratio4) | % | 33.3 | 32.1 | 32.2 | 30.7 | 31.8 | 33.8 | 36.8 | 32.3 |
| Key figures revenue / income / assets and capital structure |
|||||||||
| Return on sales5) | % | 7.4 | 7.0 | 8.4 | 6.4 | 3.9 | –1.8 | 0.5 | 3.6 |
| Return on equity (roe) before taxes6) | % | 34.2 | 29.2 | 28.7 | 21.6 | 8.6 | – 9.0 | 3.0 | 29.8 |
| Return on assets7) | % | 1.7 | 1.9 | 2.3 | 2.0 | 0.9 | – 0.4 | 0.2 | 5.1 |
| Tax rate8) | % | 29.9 | 20.2 | 19.8 | 19.7 | 14.0 | – | 5.4 | 6.9 |
| Equity ratio9) | % | 3.9 | 5.8 | 7.2 | 6.4 | 5.9 | 3.7 | 23.8 | 28.3 |
| Net debt (+) / net liquidity (–) (Postbank at equity)10) |
€m | 2,044 | – 32 | 4,193 | 3,083 | 2,858 | 2,466 | –1,690 | –1,382 |
| Net gearing (Postbank at equity)11) | % | 25.1 | – 0.4 | 28.1 | 21.4 | 20.4 | 23.7 | –25.7 | –14.8 |
| Dynamic gearing (Postbank at equity)12) | years | 0.8 | 0.0 | 2.4 | 1.4 | 1.0 | 0.7 | –1.4 | – 0.7 |
| Key stock data | |||||||||
| (Diluted) earnings per share13) | € | 1.18 | 1.44 | 1.99 | 1.60 | 1.15 | –1.40 | 0.53 | 2.10 |
| Cash fl ow per share13), 14) | € | 2.70 | 2.10 | 3.23 | 3.28 | 4.27 | 1.60 | – 0.48 | 1.59 |
| Dividend distribution | €m | 490 | 556 | 836 | 903 | 1,087 | 725 | 725 | 78615) |
| Payout ratio (distribution to consolidated net profi t) |
% | 37.4 | 34.8 | 37.4 | 47.1 | 78.6 | – | 112.6 | 30.9 |
| Dividend per share | € | 0.44 | 0.50 | 0.70 | 0.75 | 0.90 | 0.60 | 0.60 | 0.6515) |
| Dividend yield | |||||||||
| (based on year-end closing price) | % | 2.7 | 3.0 | 3.4 | 3.3 | 3.8 | 5.0 | 4.4 | 5.1 |
| (Diluted) price / earnings ratio16) | 13.9 | 11.7 | 10.3 | 14.3 | 20.4 | – 8.5 | 25.5 | 6.0 | |
| Number of shares carrying dividend rights | millions | 1,112.8 | 1,112.8 | 1,193.9 | 1,204.0 | 1,208.2 | 1,209.0 | 1,209.0 | 1,209.0 |
| Year-end closing price | € | 16.35 | 16.90 | 20.48 | 22.84 | 23.51 | 11.91 | 13.49 | 12.70 |
V
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 financial statements. 2) Excluding liabilities from financial services. 3) Until 2004 including trainees. 4) Staff costs / revenue. 5) ebita / revenue; from 2004: ebit / revenue (from 2007: continuing operations). 6) Profit before income taxes (from 2007 continuing operations) / average equity (from 2004 including non-controlling interests). 7) ebit (from 2007: continuing operations) / average total assets. 8) Income tax expense / profi t before income taxes. 9) Equity (from 2004 including non-controlling interests) / 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 49. 11) Net debt / net debt and equity (from 2004 including non-controlling interests). 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.
Deutsche Post ag Headquarters Investor Relations 53250 Bonn Germany www.dp-dhl.com
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.