Annual Report • Mar 26, 2012
Annual Report
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| Personnel Walter Scheurle |
|
|---|---|
| Functions Corporate Offi ce Corporate Controlling Germany Corporate Legal Corporate Accounting & Reporting hr mail Corporate Executives Investor Relations Corporate Communications Corporate Finance Corporate Development Corporate Internal Audit Corporate Regulation & Security Management Taxes Corporate First Choice Global Business Services Corporate Public Policy (Group-wide services: & Responsibility Procurement, Real Estate, hr dhl International Finance Operations etc.) Chief Commercial Offi cer (cco) |
hr Standards & Guidelines |
Divisions
| Board department | express | global forwarding, freight |
supply chain | ||
|---|---|---|---|---|---|
| Board member | Jürgen Gerdes | Ken Allen | Roger Crook | 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 |
| GOALS 2011 | RESULTS 2011 | GOALS 2012 |
|---|---|---|
| ebit 1 | ebit | ebit |
| Group: more than €2.4 billion. mail division: around €1.1 billion. dhl divisions: more than €1.7 billion. Corporate Center / Other: around €–0.4 billion. |
Group: €2.44 billion. mail division: €1.11 billion. dhl divisions: €1.72 billion. Corporate Center / Other: € – 0.39 billion. |
Group: €2.5 billion to €2.6 billion. mail division: €1.0 billion to €1.1 billion. dhl divisions: around €1.9 billion. Corporate Center / Other: around €–0.4 billion. |
| Consolidated net profi t 2 | Consolidated net profit 2 | Consolidated net profi t 2 |
| Continue to improve consolidated net profi t before effects from the measure ment of the Postbank instruments in line with operating business (previous year: € 972 million). |
Consolidated net profi t before effects from the measurement of the Postbank instruments: €1.46 billion. |
Continue to improve consolidated net profi t before effects from the Postbank transaction in line with operating business. |
| Capital expenditure (capex) | Capital expenditure (capex) | Capital expenditure (capex) |
| Increase investments from €1.26 billion (2010) to no more than €1.6 billion. |
Invested: €1.72 billion. | Increase investments to €1.8 billion. |
| Revenue | Revenue | Dividend distribution |
| Increase revenue, especially in the dhl divisions, more or less in line with forecast medium-term growth rates of 7 % to 9 %. |
Organic revenue growth in the dhl divisions: 7.2%. |
Pay out 40 % to 60 % of net profi t as dividend. |
| 1 Forecast increased over the course of the year. |
Deutsche Post DHL is the world's leading mail and logistics services group. The Deutsche Post and dhl corporate brands represent a one-of-a-kind portfolio of logistics (dhl) and communi cations (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
| 2010 | 2011 | + / – % | Q 4 2010 | Q4 2011 | + / – % | ||
|---|---|---|---|---|---|---|---|
| Revenue | € m | 51,388 1 | 52,829 | 2.8 | 13,835 1 | 14,126 | 2.1 |
| Profi t from operating activities (ebit) | € m | 1,835 | 2,436 | 32.8 | 525 | 599 | 14.1 |
| Return on sales 2 | % | 3.6 | 4.6 | – | 3.8 | 4.2 | – |
| Consolidated net profi t for the period 3 | € m | 2,541 | 1,163 | – 54.2 | 487 | 175 | – 64.1 |
| Operating cash fl ow | € m | 1,927 | 2,371 | 23.0 | 1,025 | 1,262 | 23.1 |
| Net liquidity (–) / net debt (+) 4 | € m | –1,382 | – 938 | – 32.1 | – | – | – |
| Return on equity before taxes | % | 29.8 | 15.2 | – | – | – | – |
| Earnings per share 5 | € | 2.10 | 0.96 | – 54.3 | 0.40 | 0.14 | – 65.0 |
| Dividend per share | € | 0.65 | 0.70 6 | 7.7 | – | – | – |
| Number of employees 7 | 421,274 | 423,348 | 0.5 | – | – | – | |
1Prior-period amount adjusted, see Note 5.
2ebit / revenue.
3After deduction of non-controlling interests, including Postbank. 4For the calculation please refer to page 59 of the Group Management Report.
5Including Postbank.
6Proposal.
7Average ftes.
I
| The Group | I |
|---|---|
| Group Structure | II |
| Target-Performance Comparison | III |
| SIMPLY GROW | 1 |
| Interview with the ceo | 2 |
| Business and Environment | 29 |
|---|---|
| Deutsche Post Shares | 42 |
| Economic Position | 46 |
| Divisions | 60 |
| Non-Financial Performance Indicators | 81 |
| Further Developments | 97 |
| Outlook | 98 |
| CORPORATE GOVERNANCE | 123 – 148 |
|---|---|
| Report of the Supervisory Board | 125 |
| Supervisory Board | 129 |
| Board of Management | 130 |
| Mandates | 132 |
| Corporate Governance Report | 133 |
| Income Statement | 151 |
|---|---|
| Statement of Comprehensive Income | 152 |
| Balance Sheet | 153 |
| Cash Flow Statement | 154 |
| Statement of Changes in Equity | 155 |
| Notes to the Consolidated Financial Statements | 156 |
| Responsibility Statement | 245 |
| Independent Auditor's Report | 246 |
| Index | 249 |
|---|---|
| Glossary | 250 |
| Graphs and Tables | 251 |
| Locations | 252 |
| Multi-Year Review | 254 |
| Contacts | 256 |
| Events | IV |
Deutsche Post DHL is the world's leading mail and logistics services group. The Deutsche Post and dhl corporate brands represent a one-of-a-kind portfolio of logistics (dhl) and communi cations (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
| 2010 | 2011 | + / – % | Q 4 2010 | Q4 2011 | + / – % | ||
|---|---|---|---|---|---|---|---|
| Revenue | € m | 51,388 1 | 52,829 | 2.8 | 13,835 1 | 14,126 | 2.1 |
| Profi t from operating activities (ebit) | € m | 1,835 | 2,436 | 32.8 | 525 | 599 | 14.1 |
| Return on sales 2 | % | 3.6 | 4.6 | – | 3.8 | 4.2 | – |
| Consolidated net profi t for the period 3 | € m | 2,541 | 1,163 | – 54.2 | 487 | 175 | – 64.1 |
| Operating cash fl ow | € m | 1,927 | 2,371 | 23.0 | 1,025 | 1,262 | 23.1 |
| Net liquidity (–) / net debt (+) 4 | € m | –1,382 | – 938 | – 32.1 | – | – | – |
| Return on equity before taxes | % | 29.8 | 15.2 | – | – | – | – |
| Earnings per share 5 | € | 2.10 | 0.96 | – 54.3 | 0.40 | 0.14 | – 65.0 |
| Dividend per share | € | 0.65 | 0.70 6 | 7.7 | – | – | – |
| Number of employees 7 | 421,274 | 423,348 | 0.5 | – | – | – | |
1Prior-period amount adjusted, see Note 5.
2ebit / revenue.
3After deduction of non-controlling interests, including Postbank. 4For the calculation please refer to page 59 of the Group Management Report.
5Including Postbank.
6Proposal.
7Average ftes.
I
You send. You order. We deliver. Safely and on time. Our customers have every right to expect this, and meeting their expectations is our greatest challenge. We handle each and every shipment meticulously, all within our complex yet seamless network. In Germany alone, our network moves some 65 million letters and around three million parcels and small packages from a to b every working day.
The key word is simplifi cation. The simpler we make solving our customers' complex logistics problems, the more satisfi ed they will be.
We provide communications and logistics services in more than 220 countries and territories and we understand the needs of our customers, both large and small, doing business all over the world in a broad range of industries. Ours is a globally integrated business. Through simplifi cation we are unlocking our potential for future growth.
1
€52.8 billion CONSOLIDATED REVENUE in fi nancial year 2011.
in fi nancial year 2011.
Deutsche Post DHL's ceo is convinced that the company's consistent focus on its Strategy 2015 is bearing fruit and that the Group is off to a good start on the road to achieving its quite ambitious goals.
1 Dr Frank Appel, ceo
CONSOLIDATED EBIT in fi nancial year 2011.
"Why is the iPhone such a success? Because it integrates applica tions and interfaces and makes everything as simple as possible for its users. We can learn from that and transfer this idea over to our industry. Deutsche Post DHL should become the iPhone of the logistics industry."
We not only exceeded our own expectations but also those of external observers, who were positively surprised with our results. This shows that focusing consistently on our Strategy 2015 is bearing fruit. Revenue increased to €52.8 billion despite being reduced by currency effects and changes in our port folio; and even though we raised our earnings guidance twice during the year, in the end we still exceeded our expectations slightly with a fi gure of €2.44 billion, quite a noteworthy achievement in an uncertain economic environment.
We consistently utilised our strengths as the market leader in the German mail business and nearly all of our logistics activities. The encouraging growth we've seen in the German parcel business and the fast-growing Asian region substantiates this.
We are off to a good start on the road to achieving our quite ambitious goals. We've seen a measurable increase in customer satisfaction, both in our mail division and in our dhl divisions. We have also made strides as an employer: for the third year in a row, we improved our ratings in our annual employee opinion survey substantially. I'm convinced that satisfi ed employees and customers have a direct, positive effect on our fi nancial performance.
First of all, it's confi rmation that they have invested in a solid company with bright prospects. In 2011, our share price performed better than the dax. We certainly understand how important a stable dividend policy is. Therefore, we intend to consistently distribute 40 % to 60 % of our net profi ts as dividends. We will propose raising the dividend from €0.65 last year to €0.70 per share for fi nancial year 2011 to our shareholders at the Annual General Meeting in May.
Yes. In 2011, all of our divisions contributed to our very good results. Our express and logistics businesses, in particular, have gained momentum. In some areas, revenues increased quite considerably. This also goes for earnings that were still impacted by restructuring measures in the previous year. These measures substantially improved our profi tability, and our margins increased noticeably.
Without a doubt, the internet is having the greatest impact on this business. It's presenting challenges but also opening enormous growth opportunities. Traditional mail is giving way to electronic forms of communication. Now we did see volumes stabilise in 2011 but demand will continue to decline due to the overall structural trend. In our parcel business on the other hand, the trend is very encouraging. We are reaping the rewards of the fl ourishing e-commerce sector. We grew by almost double-digit fi gures and expect volumes to increase signifi cantly in the future as well. What's more, we agreed upon a Generations Pact with the trade unions, a trendsetting model that is the fi rst of its kind.
We believe that customers will only purchase services that make their lives easier. That's why we try, wherever we can, to make things easier and to reduce complexity and to do so along the entire value chain. Why is the iPhone such a success? Because it integrates applications and interfaces and makes everything as simple as possible for its users. We can learn from that and transfer this idea over to our industry. Deutsche Post DHL should become the iPhone of the logistics industry. We just established the position of cco at dhl, which was a logical step in the development of our customer promise.
€52.8 billion CONSOLIDATED REVENUE in fi nancial year 2011. As a company that supports world trade, we see our opportunities in those places where volume growth is greatest, i. e., in the emerging regions of Asia, Latin America and the Middle East. We already have an outstanding presence in these markets and in many we are the market leader. We will concentrate on these regions without, of course, neglecting our traditional markets of Europe and North America, where there is still potential for growth – particularly in terms of gaining market share. We are well equipped for future growth with a solid, globe-spanning infrastructure, in which we continue to invest.
CONSOLIDATED EBIT in fi nancial year 2011. These countries have large populations, with people who are striving for a better life. The demand for goods and services will thus increase provided that employment does not fall. In these particular countries employment is even rising. That is why populous countries such as Brazil, China, India, Russia and Mexico will be central to our company and its sustained success. We already have an outstanding presence in these countries today and will defi nitely expand our position in the future.
Despite the rather moderate forecasts made by macroeconomists, we see that the overall positive developments from the last quarter are continuing into the new year.
Against this backdrop, we expect consolidated ebit to reach between €2.5 billion and €2.6 billion in the current fi nancial year. The mail division is likely to contribute between €1.0 billion and €1.1 billion to this fi gure. For our dhl divisions, we expect an additional improvement in overall earnings to approximately €1.9 billion compared with the previous year. Consolidated net profi t is also expected to continue to improve in line with our operating business.
I'm very pleased that we were able to win over Ms Titzrath to join our Group as Board Member for Personnel and as Labour Director. She brings extensive experience and has all the qualifi cations necessary to take us closer to our goal of being the employer of choice worldwide.
I'd like to take this opportunity to say a personal thank you to Walter Scheurle, who devoted nearly 45 years to our company, playing an important role in shaping our Group through dedication and personal integrity. I have much respect for him and what he accomplished.
Dr Appel, thank you very much for talking to us.
Interview with Dr Frank Appel
Asian markets are growing rapidly, and trade both within the region and with other parts of the world is constantly increasing. In the summer of 2012, dhl Express will open its newest hub at Shanghai Pudong International Airport, putting the company in a strong position to extend its role as market leader in Asia.
The Shanghai skyline. 13
9
1 Technicians still dominate the scene at the new dhl hub in Shanghai, which will go into operation in the summer of 2012.
US \$ 175 million INVESTMENT in our dhl hub in Shanghai over the 11% lifetime of the facility. ANNUAL GROWTH "The hub gives us suffi cient capacity to accommodate growth, especially in north Asia. There will be more regional and international fl ight connections to and from Shanghai. dhl will therefore be able to provide greater fl exibility and reliability to customers with guaranteed time-definite delivery to major cities in north Asia. The Shanghai hub complements the hub in Hong Kong, shortening flight routes and times, and thus enabling later collections and earlier deliveries."
4
36 %
MARKET SHARE
expected for the intra-Asian market until 2025. Jerry Hsu, ceo dhl Express Asia Pacifi c
The new facility stands impressively in front of a grey January sky as the sound of jet engines from the nearby runway can be heard. Inside, a team of technicians are busy commissioning a sophisticated automated sorting system, evidence that here, in the freight zone on the west side of Shanghai Pudong Airport, a fi rst-class hub is in the works: dhl's new North Asia Hub. "No other express market is as dynamic as the Asian market," explains Jerry Hsu, ceo dhl Express Asia Pacifi c. "In order to be the provider of choice for our Asian customers, we have to improve our standard of service continuously, becoming faster and more effi cient. The new hub is an important part of that."
The numbers speak for themselves. Asian countries such as China, India and South Korea are the new growth drivers of the world economy and that is good news for the logistics sector. Experts predict that the air freight market in Asia will see the highest growth rates in the world until 2025, with the intra-Asian market expected to grow by 11 % annually.
dhl already is the market leader in the express business in Asia today. The company strategy is to operate its own hubs, and it maintains hubs in Hong Kong, Singapore and Bangkok. These, in turn, are connected with 50 gateways located strategically throughout the Asia Pacifi c region. The North Asia Hub will replace the existing gateway at Shanghai Pudong Airport and represents an investment of around us \$ 175 million over the lifetime of the facility.
dhl has harnessed years of experience from its existing hubs to design and construct the facility, and new solutions have been developed that make operations easier, safer and more effi cient. For example, the loading area has been made especially large and given a wide vehicle lane. In addition, skids and carts are being employed to lessen the need for forklifts. This reduces congestion and the risk of accidents, and increases effi ciency. The high number of loading docks speeds up loading and unloading of lorries, which will be quickly shuttling in and out of the dock area to keep up with the centre's lightning-fast incoming and outgoing processing times. With four separate automatic sorters, it
will be a state-of-the-art operation, and its 55,000 m2 of operational fl oor space make it the largest dhl Express hub in Asia and one of the largest anywhere in the world.
"The hub in Shanghai reinforces dhl's multi-hub strategy in Asia Pacific. Together with our hub in Hong Kong as well as those in Bangkok and Singapore, the four hubs will be linked to over 50 dhl Express gateways located strategically throughout Asia Pacific, providing our customers with the most extensive network infrastructure in the region."
Chris Bresnahan, evp Network Operations & Aviation, dhl Express Asia Pacifi c
The North Asia Hub consists of two main buildings, a sorting centre and a 6,500 m2 administrative building. In the sorting centre, six kilometres of conveyor belts and sorters have already been installed and it will not be long before the fully automated parcel and document sorters are processing up to 20,000 parcels and just as many documents per hour. In the meantime, fi nal fi t- out work such as the installation of an advanced security system with 300 cameras has begun.
Once the hub goes into operation, which will be a step-by-step process to be completed in the summer of 2012, the round-the-clock quality control centre will monitor all shipments in the air and on the ground, and a team of 600 people will be in place to ensure all parcels and documents are processed quickly and effi ciently.
expected for the intra-Asian market until 2025. "The new hub is an investment in our future and a commitment to providing 'great service quality' on north Asian trade lanes," says Mr Hsu. "It puts us a step ahead of the competition." The new hub will increase capacity and create the opportunity for later collections and earlier deliveries, shortening transit times. "The facility is an example of how dhl is tapping into the enormous growth potential in Asia," says Mr Hsu. "The North Asia Hub is an important milestone that strengthens our leading position in the region substantially."
90% OF RESIDENTS IN GERMANY are only about ten minutes away from the nearest Packstation.
14
TO BE INVESTED in our Parcel 2012 modernisation programme in the next two years. 8.6% REVENUE GROWTH in the Parcel Germany business
With its easy-to-use services, the parcel business has become the innovative engine of the mail division. Deutsche Post DHL is investing €750 million in its German parcel network over the next two years. The goal is to continue growing in a booming market. In the future, parcels are to reach customers even more quickly and delivery is to be more precise and transparent.
1 Deutsche Post DHL is investing in the booming parcel business.
TO BE INVESTED in our Parcel 2012 modernisation programme in the next two years. 90% OF RESIDENTS IN GERMANY are only about ten minutes away from the nearest Packstation. Who wouldn't like a remote control to guide their parcels to precisely where they want them to go? Soon, Deutsche Post DHL will be offering just that. The service will be made up of an entire bundle of products that allow customers to precisely "control" the delivery of their parcels, whether they are daydefi nite, time-defi nite or destination-defi nite. This is but a tiny example of the innovative strength of the leading provider on the German parcel market. The largest example is called Parcel 2012 and it "weighs" €750 million. The concept is the company's response to new business models in the rapidly growing e-commerce sector and to changing consumer behaviour. "Parcels will become as fast as letters," says Jürgen Gerdes, Cor porate Board Member for mail. "We are laying the groundwork by expanding our network and creating innovative shipping solutions."
8.6% REVENUE GROWTH in the Parcel Germany business unit in 2011. € 750 million Today, the parcel business makes up around one-fifth of revenue in the mail division. In 2011, dhl Parcel alone transported some three million parcels per day in Germany. There is a demand for innovative solutions that make customers' lives easier and that goes for the entire value chain, from collecting parcels from customers to high-tech sorting and delivering. Examples of such successful solutions: Packstations, which were introduced in 2001. In Germany, there are already around 2,500 stations and more than 2.5 million registered users. Since 2005, deliverers have collected parcels from private households and since 2007 there have been "postboxes" for parcels, the so-called Paketboxes.
2 There are currently around 2,500 Packstations in Germany.
3
E-commerce, an economic sector that has seen impressive growth for years, offers an enormous oppor tunity for growth in the logistics sector. According to Bundesverband des Deutschen Versand handels (the German e-commerce and distance selling trade association), the 2011 Christmas season generated €4.4 billion in revenue for businesses involved in e-commerce, 22 % more than in 2010. dhl transported up to six million parcels a day during this time. That fi gure is normally around three million. According to the Deutsche Post DHL study Shopping 4.0, published in February 2012, one in three Germans shopped online at least three times in the past six months. The e-commerce sector is likely to be boosted further by the rising number of smart devices and online networking through social media.
Books, cd s, clothing and consumer electronics are currently the main items being purchased online. The future is likely to see even more areas open up to retailers and logistics providers, not least as a result of changing demographics. For instance, a growing number of retail customers will purchase medicine and groceries online one day. By expanding the parcel network, adding new vehicles and permanently optimising delivery rounds, dhl is well prepared to offer the right solutions for these requirements as well, and one of these solutions is faster parcel transit times, something that is very important for sensitive parcels in particular. In future 95 % of all parcels in Germany should arrive at their destinations on the next day, just as fast as a letter. Improved effi ciency will make this possible. Parcel centres will one day be able to handle 28,000 to
6
50,000 parcels an hour depending on location and demand, a 150 % increase from the 20,000 parcels we process each hour today.
unit in 2011. € 750 million TO BE INVESTED in our Parcel 2012 modernisation programme in the next two years. 90% OF RESIDENTS IN GERMANY are only about ten minutes away from the nearest Packstation. Simply grow also means making things both easier and more understandable for customers. That is why Deutsche Post DHL is taking aim at transparency. In the future, a state-of-the-art it infrastructure will allow customers to see the current status of their parcels practically in real time. As a result, individuals will also be able to decide at short notice whether their parcel should be delivered at home, at the offi ce or at a Pack station. Sending items will also become easier for business customers. When the new concept is in place, they will be able to post a parcel later in the evening with the peace of mind that their customers will still receive the product on time. "Our customers will experience a marked improvement in our already market-leading quality and reliability," says Jürgen Gerdes about the planned innovations.
Deutsche Post DHL's internet services
www.dhl.com
www.deutschepost.com
30% IMPROVEMENT IN CARBON EFFICIENCY by 2020.
20
tests conducted in Germany and routes completed on average 8 % faster.
1,000 PARCELS transported by the SmartTruck each day in the
Bonn test region.
Dynamic route planning is what the SmartTruck is about. This state-of-the-art delivery vehicle saves time, money and emissions by intelligently navigating the best route in real time.
1 Couriers can now find the fastest route through traffi c using gps-based route planning.
15% FEWER KILOMETRES driven by the SmartTrucks in tests conducted in Germany and routes completed on average 8 % faster. 30% IMPROVEMENT IN CARBON EFFICIENCY by 2020. Bangalore, the "Silicon Valley of India" and the country's third largest city, is also one of its administrative, industrial, commercial and service centres. You have to know the city's maze of streets and alleyways well to fi nd your way around here, even more so to fi nd the quickest way to get from one place to another and avoid congestion. Now try to do that amongst the fl ood of around 4.2 million vehicles toiling through the streets of this megacity – a number that's growing all the time. Traffi c jams and delays, not to mention the pungent smell of exhaust fumes, are as commonplace as the cars.
A number of the couriers at dhl's subsidiary, Blue Dart, of which dhl holds an 80 % share, now have it a lot easier. Their SmartTrucks help them navigate the quickest route through Bangalore's busy streets. India's largest air express provider has been taking part in a trial project to test these intelligent vehicles since summer 2011. What is so special about the SmartTruck? "Shipments are sorted automatically before the vehicles leave the distribution centre," explains Anil Khanna, Managing Director at Blue Dart Express Ltd. Once sorted and loaded, the parcels arrive at their destinations faster than ever with the SmartTruck's help. The vehicles are equipped with dynamic route-planning software that uses gps technology to calculate the optimal route based on the current order situation in the van. The gps unit follows the van's every move in real time, automatically reacting to current traffi c information and incoming orders.
After successful tests in Berlin, Bonn and Cologne, the plan was to integrate the system into the global it infrastructure and test the SmartTruck in a mega city outside Europe. Bangalore presented an ideal test location. The city and its 8.5 million residents are experiencing an economic boom. Blue Dart operates an 84,000 m2 logistics centre at the airport just 40 kilometres outside the city. Routes into the city are long and the streets are almost always congested.
Designed in Germany, the SmartTruck system required considerable modifi cation before it could be used in Bangalore. After all, Indian cities are quite different from German ones. For example,
many streets in Bangalore do not have names and there are no house numbers. Delivery addresses are often incomplete and postcodes missing. Teams from Blue Dart and dhl worked together closely to fl esh out the differences that impact the software and develop solutions that led to a custom-built SmartTruck concept for the Indian market.
By May 2012, SmartTrucks should be covering all incoming shipments from the Asia Pacifi c region on fi ve separate inner-city routes in Bangalore – but results are already coming in. "We are seeing higher parcel processing capabilities, shorter transit times, synchronised letter and parcel processes and fewer kilometres being travelled by each vehicle," says Anil Khanna. This means one thing for our customers: better service. The SmartTruck thus offers a solution for one of the most important future challenges for the express business: the growing complexity of logistics, especially in chronically congested cities and megacities. That is a considerable
competitive edge. "Our customers' primary concern is that their parcels are collected and delivered on time," says Mr Khanna.
Yet SmartTrucks fulfi l another, equally important, goal. They reduce our carbon footprint. In 2008, Deutsche Post DHL was the fi rst global logistics provider to set a clear, quantifi able goal with its environmental protection programme GoGreen. By 2020, the Group intends to improve the carbon effi ciency of its own operations as well as those of its subcontractors by 30 %. Katharina Tomoff, Head of GoGreen at Deutsche Post DHL, points to the importance of this target, particularly in the Asian region: "In emerging markets such as India, we absolutely have to fi nd solutions to grow in an environmentally friendly way."
The SmartTruck is one of the solutions that will reduce co2 emissions in our daily operations. Although we are not yet able to quantify the savings from our ongoing test project in India, the results of our tests in Germany are encouraging. In Berlin, for example, our intelligent transporters drove on average 15 % fewer kilometres and routes were completed 8 % faster. Shorter routes mean reduced fuel consumption and lower emissions. "Solutions such as the SmartTruck help us reduce fuel consumption and underscore our leading role in environmental protection," says Katharina Tomoff.
The test project was fi rst presented in March 2009. Two vehicles equipped with dynamic route planning commenced delivery operations in Berlin's Mitte district. Since October 2010, the Group has also used SmartTrucks for express delivery in the Cologne / Bonn region. In the summer of 2011, Bangalore became the fi rst test region outside of Europe. dhl also presented the intelligent delivery vehicle at Expo 2010 in Shanghai.
| BUSINESS AND ENVIRONMENT | 29 |
|---|---|
| Business activities and organisation | 29 |
| Disclosures required by takeover law | 31 |
| Remuneration of the Board of Management and the Supervisory Board |
34 |
| Economic parameters | 35 |
| Group management | 40 |
| DEUTSCHE POST SHARES | 42 |
|---|---|
| ---------------------- | ---- |
Financial position 49 Assets and liabilities 58
| DIVISIONS | 60 |
|---|---|
| Overview | 60 |
| mail division | 61 |
| express division | 67 |
| global forwarding, freight division | 72 |
| supply chain division | 76 |
| NON-FINANCIAL PERFORMANCE INDICATORS | 81 |
|---|---|
| Employees | 81 |
| Corporate responsibility | 87 |
| Procurement | 90 |
| Research and development | 92 |
| Customers and quality | 92 |
| Brands | 95 |
| FURTHER DEVELOPMENTS | 97 |
| OUTLOOK | 98 |
|---|---|
| Overall assessment of expected performance | 98 |
| Opportunities and risks | 98 |
| Strategic focus | 110 |
| Future organisation | 116 |
| Future economic parameters | 117 |
| Revenue and earnings forecast | 120 |
| Projected fi nancial position | 121 |
Report on post-balance-sheet date events 97
Deutsche Post DHL maintains a global network that allows us to off er our customers everything they need for transporting, storing and processing goods and information, from standard products to customised solutions. We aim to fulfi l our customers' requirements comprehensively and we place great value on quality and sustainability. Th rough our climate protection, disaster management and education programmes, we demonstrate social responsibility.
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.
We are the only provider of universal postal services in Germany. In our MAIL division, 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 are the fi rst in 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 solutions for corporate information and communications management tailored precisely to the needs of our customers.
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 even more effi cient use of our resources whilst reacting fl exibly to the rapidly changing demands of our business and our customers.
Group management functions are centralised in the Corporate Center.
Glossary, page 250 Glossary, page 250
| Corporate Center (ceo's board department, Finance and Personnel) | ||||||
|---|---|---|---|---|---|---|
| mail • Mail Communication • Dialogue Marketing • Press Services • Value-Added Services • Parcel Germany • Retail Outlets • Global Mail • Pension Service |
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 Business Services |
a.02 Group structure from different perspectives
|--|
Deutsche Post DHL operates around the world. Th e map shows our most important locations.
In March 2011, Roger Crook was appointed to the Board of Management as head of the GLOBAL FORWARDING, FREIGHT division. He succeeded Hermann Ude, who left the company on 31 March 2011.
As at 1 October 2011, we created the position of Chief Commercial Offi cer (CCO) within the CEO's board department. Th is position combines the cross-divisional manage ment of key DHL customers with our innovation activities. Th e goal is to further strengthen DHL's customer focus in all its business units.
Further information, page 252 f.
Disclosures required under sections 289 (4) and 315 (4) of the Handelsgesetzbuch (HGB – German Commercial Code) and explanatory report
As at 31 December 2011, 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 that 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 waiting period of four years (three-year waiting period for the 2008 tranche) has expired, 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 in direct stake in Deutsche Post AG via KfW. According to the notifi cations we have received pursuant to sections 21 et seq. of the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act), KfW and the Federal Republic of Germany are the only shareholders that 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) and section 31 of the Mitbestimmungsgesetz (MitbestG – German Co-determination Act)). In accordance with section 84 of the AktG and section 31 of the MitbestG, appointments by the Supervisory Board shall be for a maximum term of fi ve years. Re-appointment or extension of the term of offi ce is permitted for a maximum of fi ve years in each case. 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 the law requires a greater majority for amendments to the Articles of Association, that majority is decisive.
Under article 14 (7) of the Articles of Association, the Supervisory Board has the authority to resolve amendments to the Articles of Association in cases where the amendments aff ect only the wording. In addition, the AGM resolutions passed on 21 April 2009 (Authorised Capital 2009) and 25 May 2011 (Contingent Capital 2011) 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, or conversion obligations. Th e AGM resolution on Contingent Capital 2011 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 treasury shares as well as to acquire treasury shares through derivatives) authorise the Supervisory Board to amend the wording of the Articles of Association if the purchased treasury 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 Super visory Board, to issue up to 240 million new, no-par value registered shares on 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 such authorisation.
When new shares are issued on the basis of 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.
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 25 May 2011 authorising the Board of Management, subject to the consent of the Supervisory Board, to issue bonds with warrants, convertible bonds and/or income bonds as well as profi t participation certifi cates, or a combination thereof, (hereinaft er referred to collectively as "bonds") in an aggregate principal amount of up to € 1 billion, on one or more occasions on or before 24 May 2016, thereby granting options or conversion rights for up to 75 million shares having a total share in the share capital not to exceed € 75 million. Th e bond conditions may also provide for a conversion obligation at the time of maturity of the bonds or at another time or may entitle the company or the Group company to grant the bond holders or creditors shares in the company in lieu of payment of all or part of the sum of money payable. Th e share capital is contingently increased by up to € 75 million in order to grant shares to the holders or creditors of the options, conversion rights or conversion obligations aft er exercise of their rights for the purpose of settling the entitlements related to the options or rights or fulfi lling the conversion obligations (Contingent Capital 2011, article 5 (3) of the Articles of Association). When issuing bonds, pre-emptive subscription rights may only be disapplied subject to the terms of the aforementioned resolution and to the consent of the Supervisory Board. Further details may be found in the motion adopted by the AGM under agenda item 6 of the AGM of 25 May 2011.
Authorisation to issue 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 necessary to take advantage of favourable market situations at short notice, for example by off ering bonds with options, conversion rights or conversion obligations on shares in the company 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 the authorisation.
Finally, the AGM of 28 April 2010 authorised the company to buy back shares on or before 27 April 2015 up to an amount not to exceed 10 % of the share capital existing as at the date of the resolution. Such authorisation is subject to the proviso that at no time should the shares thus acquired, 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 permissible under the law, particularly to redeem the purchased treasury 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 the above 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 treasury shares through the use of derivatives, namely by servicing options that, upon their exercise, require the company to acquire treasury shares (put options), by exercising options that, upon their exercise, grant the company the right to acquire treasury shares (call options) or by servicing or exercising 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 exceed 18 months, must expire by no later than 27 April 2015 and be selected such that treasury shares may not be acquired by exercising the options 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.
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.
dp-dhl.com/en/investors.html
dp-dhl.com/en/investors.html
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 facility with a volume of € 2 billion from 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 139 ff.
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 139 ff.
Th e global economy continued on its upwards path in 2011, albeit at a slower pace compared with the prior year. Emerging markets remained the mainstay, although growth in these countries weakened somewhat over the course of the year. Th e industrial countries, by contrast, suff ered from an economic downturn with growth falling overall by nearly half, with unusually high discrepancies between regions; whilst some countries recorded high growth rates, others fell back into recession. Global economic output in the reporting year increased by 3.8 % (previous year: 5.2 %). However, growth in global trade slowed considerably, from 12.7 % in 2010 to just under 7 % (IMF: 6.9 %, OECD: 6.7 %).
| % | Gross domestic product (gdp) |
Exports | Domestic demand |
|---|---|---|---|
| China | 9.2 | 20.3 | n / a |
| Japan | – 0.9 | 0.0 | – 0.1 |
| usa | 1.7 | 6.8 | 1.6 |
| Euro zone | 1.6 | 7.0 | 0.6 |
| Germany | 3.0 | 8.2 | 2.1 |
Data partially estimated, as at 13 February 2012.
Sources: Postbank Research, national statistics.
Asian countries again generated the highest economic momentum. Even there, the upturn lost some speed: growth was 7.9 % compared with the very strong growth of 9.5 % in the prior year.
China's GDP grew by a robust 9.2 % (previous year: 10.4 %). Exports increased by 20.3 %, down from 31.3 % in the prior year. Since imports were up 24.9 % (previous year: 38.7 %), the country's trade surplus decreased noticeably from US\$182 billion to US\$155 billion. Th e country, however, remains attractive to foreign investors, who made direct investments of US\$116 billion (previous year: US\$106 billion).
Th e Japanese economy suff ered in 2011 from the aft ermath of the devastating earthquake in March. Economic output was down sharply in the fi rst half of the year, a decline that could not be off set by the signifi cant recovery in the second half. Exports, private consumption and investments were nearly stagnant, whilst imports were up considerably. GDP decreased by 0.9 % (previous year: 4.4 %).
In the United States, the economy picked back up again in the second half of the year aft er a weak start. Corporate investments trended higher, increasing by around 10 % (previous year: 15 %). Private consumption grew only marginally again on account of the weak labour market and moderately rising incomes. Th e economy did not experience a notable uplift from foreign trade despite the fact that exports continued to increase. Instead, declining government spending and inventory investment had a substantial impact on the economic trend. Th e housing market remained a weak spot. GDP only grew 1.7 % (previous year: 3.0 %).
In the euro zone, the moderate 1.6 % increase in GDP (previous year: 1.9 %) was primarily a result of the very good start to the year. As the year progressed, economic output grew only slightly and may have actually declined in the fourth quarter. Gross fi xed capital formation and foreign trade provided economic stimulus. By contrast, private households increased spending only minimally. Th e economy was slowed primarily by the national debt crisis, which continued to intensify. Th e need to consolidate state budgets in the countries aff ected continued to rise, with spending cuts and tax increases putting the brakes on private consumption and corporate investment. Developments varied greatly again: whilst Germany and Austria recorded high growth rates, the increase in France was moderate and in Italy weak. Greece and Portugal were in a recession.
German GDP in the reporting year increased by 3.0 % (previous year: 3.7 %), sparked again by foreign trade. Exports were up by a solid 8 %. However, the primary growth driver was domestic demand. Corporate and construction spending was up considerably. Private consumption continued to rise, albeit only moderately. Th e sustained upturn had a very positive impact on the labour market. Th e average annual number of unemployed workers in Germany fell by approximately 260,000 to around 2.98 million. Th e country saw the best unemployment (annual average of 7.1 %) and employment rates (annual average of over 41 million) since reunifi cation.
At the end of the reporting year, a barrel of Brent Crude was US\$107.55 (previous year: US\$94.70). Th e annual average price of oil was around US\$111, some 39 % higher than in the prior year (approximately US\$80). Over the course of the year the price of oil fl uctuated signifi cantly between US\$93 and US\$127. At the beginning of the year, it saw a sharp increase based on the robust global economy and the wave of protests in northern Africa, which also swept Libya, an important oil-producing country. As the economy cooled, the price decreased again. In addition, the oil supply continued to increase because the OPEC members exceeded their production quotas.
a.04 Brent Crude spot price and euro / us dollar exchange rate in 2011
Th e European Central Bank (ECB) raised its key interest rate in two phases in April and July by a total of 0.5 percentage points to 1.5 % in an eff ort to combat rising infl ation. However, the rate was reduced in November and then again in December to 1.0 %, due to higher economic risks. By contrast, the US Federal Reserve maintained its very expansive monetary policy, indicating that it intends to keep its key interest rate between 0 % and 0.25 % until well into 2014 as long as unemployment remains high and infl ation does not increase.
Th e development of both the euro and the US dollar was shaped by the ever- changing economic outlook and the national debt crisis. Th e strong growth in the euro zone and the fi rst increase in the ECB's key interest rate early on caused the euro to rise considerably to its 2011 high of just under US\$1.49 in May. Uncertainty regarding the solvency of some EMU countries, fears of recession and a return to expansive monetary policy at the ECB led to a strong downwards trend in the second half of the year. Th e euro ended the year at over US\$1.29, a 3.2 % decrease compared with the prior year. Measured against the pound sterling, the euro posted a 2.5 % loss.
Th e European national debt crisis caused extremely mixed developments in the bond markets. Th e yield on German ten-year government bonds declined to a low of 1.67 % through autumn, rising again by the end of the year to 1.83 % (previous year: 2.96 %). Th e return on ten-year US government bonds decreased even more in 2011 by 1.4 percentage points to 1.88 %. Turbulence involving EMU government bonds put pressure on other segments of the market and, as a result, risk premiums for corporate bonds increased considerably in the second half of 2011.
International trade continued to grow in the year under review, with trade volumes (transported quantity in tonnes) increasing by around 6 % worldwide. Trade between the emerging markets in the Asia Pacifi c region, Latin America and the Middle East saw above-average growth.
| % | ||||||
|---|---|---|---|---|---|---|
| Imports | North | |||||
| Exports | Africa | Asia Pacifi c | Europe | Latin America | Middle East | America |
| Africa | 1.5 | 11.0 | –10.0 | 0.2 | 8.3 | 7.4 |
| Asia Pacifi c | 6.2 | 7.3 | 4.8 | 5.5 | 10.5 | 2.7 |
| Europe | 1.3 | 7.6 | 3.4 | 8.0 | 11.6 | – 0.3 |
| Latin America | 1.2 | 11.4 | 2.6 | 6.6 | 11.3 | 6.8 |
| Middle East | 8.1 | 10.0 | 2.4 | 7.9 | 8.7 | 10.6 |
| North America | 2.8 | 8.7 | 16.5 | 6.5 | 8.5 | 6.1 |
Source: Copyright © Global Insight (Deutschland) GmbH, 2011. All rights reserved, as at 31 December 2011.
Intra-regional More than 300 300 to 100 Less than 100
Source: Copyright © Global Insight (Deutschland) GmbH, 2011. All rights reserved, as at 31 December 2011.
Page 60 ff.
Deutsche Post DHL is represented in more than 220 countries and territories. Th e following table provides an overview of market volumes in key regions. 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, 2011): € 6.9 bn 1 • Air freight (2010): 23.1 m tonnes 2 • Ocean freight (2010): 29.3 m teus 3 • Contract logistics (2010): € 147 bn 4 |
• German mail communi cation market, business customers (2011): € 4.3 bn 1 • German dialogue marketing market (2011): € 18.5 bn 1 • International express market (2010): € 5.8 bn 5 • Road transport (2010): € 157.9 bn 6 |
• Domestic mail market usa (2010): € 43.1 bn 7 • International express market (2010): € 5.4 bn 8 |
• International express market Asia Pacifi c (2010): € 5.4 bn 9 • International express market Eastern Europe, Africa and the Middle East (2010): € 0.5 bn 9 |
1 Company estimates.
5 Includes express product Time Defi nite International. Country base: be, ch, de, es, fr, ie, it, nl, pl, se, uk. Source: Market Intelligence 2011, annual reports, press releases and company estimates.
6 Country base: total for 19 European countries, excluding bulk and specialties transport. Source: mrsc mi freight reports 2008 – 2011, Eurostat 2010.
7 Source: usps product revenue, 2011.
8 Includes express product Time Defi nite International. Country base: ca, mx, br, us. Source: Market Intelligence 2011, annual reports, press releases and company estimates.
9 Includes express product Time Defi nite International. Country base: au, cn, hk, in, jp, kr, sg, tw as well as ae, ru, tr, za. Source: Market Intelligence 2011, annual reports, press releases and company estimates.
Our business is materially aff ected by a number of diff erent factors. As part of our Strategy 2015, we systematically and continuously review these key factors. Beyond various economic parameters, we have identifi ed four long-term trends that have an especially large impact on our business:
1 Globalisation: We believe that the logistics industry will continue to outpace the growth of national economies in the future. Trade fl ows and volume to and from Asia as well as within Asia will see further sharp increases, as will those in other emerging regions, such as South America and the Middle East. Our DHL divisions are in an above-average position in these regions. Hardly any other company in our industry off ers integrated logistics solutions for all means of transport and in all parts of the world to the extent that we do.
In view of our leading market position, a large number of our services are subject to sector-specifi c regulation under the Postgesetz (PostG – German Postal Act). Further information on this issue and legal risk is contained in the Notes to the consolidated fi nancial statements.
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 EBIT.
By including the cost of capital in our business decisions, we encourage all divisions to use resources effi ciently and to organise our operating business to increase value sustainably whilst generating cash fl ow. In the reporting year, EAC served as a key performance indicator in addition to EBIT and was also used as a basis on which 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 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 from operating assets.
Th e Group's WACC is defi ned as the weighted average net cost of interest-bearing liabilities and equity, taking into account company-specifi c risk factors in a beta factor according to the Capital Asset Pricing Model.
Note 51
| a.08 eac calculation | |||
|---|---|---|---|
Asset charge = Net asset base × Weighted average cost of capital
We apply a standard WACC of 8.5 % across the divisions and this also represents a minimum target for projects and investments within the Group. Th e weighted average cost of capital is generally adjusted to adhere to the current situation on the fi nancial markets. However, the goal is not to match every short-term change but to refl ect longterm trends. WACC is reviewed once annually. As in previous years, we did not change the WACC in order that our internal resource allocation should not be infl uenced by short-term fl uctuations in capital market interest rates. A constant WACC also ensures that EAC is comparable with previous years.
EAC improved substantially in 2011, rising from € 670 million to € 1,229 million. Th e increase resulted primarily from the improvement in profi tability of our DHL divisions, whereas the cost of capital went up moderately by 3.6 %.
| €m | 2010 | 2011 | + / – % |
|---|---|---|---|
| adjusted 1 | |||
| ebit | 1,835 | 2,436 | 32.8 |
| Asset charge | –1,165 | –1,207 | –3.6 |
| eac | 670 | 1,229 | 83.4 |
1 Prior-year fi gures adjusted due to a revision of the calculation base.
Our net asset base increased by € 980 million to € 14,356 million in the reporting year due, amongst other reasons, to the Group's increasing investment activity. Advance payments for cargo aircraft as well as investments in new sorting systems and our vehicle fl eet increased property, plant and equipment year-on-year by 5.9 %. In addition, the utilisation of restructuring provisions increased our net asset base. Th e restructuring provisions had reduced our net asset base as operating liabilities in the prior year. Th e rise in intangible assets is attributable to currency eff ects, which raised goodwill, and to the acquisition of Tag Group.
Net working capital was on a par with the prior year despite the fact that revenues and freight volumes in the DHL divisions increased in the reporting year: the rise in trade receivables of 6.9 % was more than off set by an increase in trade payables of 8.2 %.
| €m | 31 Dec. 2010 | 31 Dec. 2011 | + / – % |
|---|---|---|---|
| adjusted1 | |||
| Intangible assets including goodwill | 11,852 | 12,200 | 2.9 |
| Property, plant and equipment | 6,125 | 6,488 | 5.9 |
| Trade receivables | 6,011 | 6,426 | 6.9 |
| Other operating assets | 3,146 | 3,264 | 3.8 |
| Operating provisions | –3,620 | –3,396 | 6.2 |
| Trade payables | – 5,672 | – 6,135 | – 8.2 |
| Other operating liabilities | – 4,466 | – 4,491 | – 0.6 |
| Net asset base | 13,376 | 14,356 | 7.3 |
1 Prior-year fi gures adjusted due to a revision of the calculation base.
Sentiment in the international equity markets was positive at the beginning of 2011. Th e EURO STOXX 50, for instance, reached its 2011 high of 3,068 points in February. Th e devastating earthquake in Japan, however, caused markets to fall, a trend that did not reverse until companies reported surprisingly positive fi rst quarter fi gures. Th e DAX peaked at 7,527 points on 2 May. In the second half of the year, the national debt crisis in the euro zone dominated the equity markets. Th e DAX and EURO STOXX 50 sank to annual lows of 5,072 and 1,995 points respectively. Equity markets only began to recover towards the end of the year amidst a persistently volatile environment. Th e DAX ended the year at 5,898 points, a loss of 14.7 %. Th is was somewhat better than the EURO STOXX 50, which fell 17.5 % year-on-year. Th e Dow Jones Index was up 5.6 %, despite sustained weakness in the US economy.
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | ||
|---|---|---|---|---|---|---|---|---|
| Year-end closing price | € | 20.48 | 22.84 | 23.51 | 11.91 | 13.49 | 12.70 | 11.88 |
| High | € | 21.23 | 23.75 | 25.65 | 24.18 | 13.79 | 14.46 | 13.83 |
| Low | € | 16.48 | 18.55 | 19.95 | 7.18 | 6.65 | 11.18 | 9.13 |
| Number of shares | millions | 1,193.9 | 1,204.0 1 | 1,208.2 1 | 1,209.0 1 | 1,209.0 | 1,209.0 | 1,209.0 |
| Market capitalisation as at 31 December | €m | 24,425 | 27,461 | 28,388 | 14,399 | 16,309 | 15,354 | 14,363 |
| Average trading volume per day | shares | 3,757,876 | 5,287,529 | 6,907,270 | 7,738,509 | 5,446,920 | 5,329,779 | 4,898,924 |
| Annual performance including dividend | % | 24.1 | 14.9 | 6.9 | – 45.5 | 18.3 | –1.4 | –1.3 |
| Annual performance excluding dividend | % | 21.2 | 11.5 | 2.9 | – 49.3 | 13.3 | – 5.9 | – 6.5 |
| Beta factor 2 | 0.75 | 0.80 | 0.68 | 0.81 | 0.91 | 0.95 | 1.19 | |
| Earnings per share3 | € | 1.99 | 1.60 | 1.15 | –1.40 | 0.53 | 2.10 | 0.96 |
| Cash fl ow per share 4 | € | 3.23 | 3.28 | 4.27 | 1.60 | – 0.48 | 1.59 | 1.96 |
| Price-to-earnings ratio 5 | 10.3 | 14.3 | 20.4 | – 8.5 | 25.5 | 6.0 | 12.4 | |
| Price-to-cash fl ow ratio 4, 6 | 6.4 | 7.0 | 5.5 | 7.4 | –28.1 | 8.0 | 6.1 | |
| Dividend | €m | 836 | 903 | 1,087 | 725 | 725 | 786 | 846 7 |
| Payout ratio | % | 37.4 | 47.1 | 78.6 | – | 112.6 | 30.9 | 72.7 8 |
| Dividend per share | € | 0.70 | 0.75 | 0.90 | 0.60 | 0.60 | 0.65 | 0.70 7 |
| Dividend yield | % | 3.4 | 3.3 | 3.8 | 5.0 | 4.4 | 5.1 | 5.9 |
Increase due to exercise of stock options Note 37.
2 From 2006: Beta three years; source: Bloomberg.
3 Based on consolidated net profi t after deduction of non-controlling interests Note 22.
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.
1
8 Excluding Postbank effects: 57.8 %.
| 30 Sep. | 30 Dec. | 30 Dec. | 30 Dec. | ||||
|---|---|---|---|---|---|---|---|
| 2011 | 2011 | + / – % | 2010 | 2011 | + / – % | ||
| Deutsche Post DHL | € | 9.63 | 11.88 | 23.4 | 12.70 | 11.88 | – 6.5 |
| PostNL 1 | € | 3.31 | 2.46 | –25.7 | 19.21 | 2.46 | – 87.2 |
| FedEx | us \$ | 67.68 | 83.51 | 23.4 | 92.96 | 83.51 | –10.2 |
| ups | us \$ | 63.15 | 73.19 | 15.9 | 72.68 | 73.19 | 0.7 |
| Kuehne + Nagel | chf | 102.80 | 105.50 | 2.6 | 130.00 | 105.50 | –18.8 |
1 Previous year's prices correspond to a different company structure.
Our shares started the year 2011 well, reaching a high of € 13.83 on 18 February. However, the stock price could not escape the downwards trend in the markets despite the good results for 2010 we reported on 10 March, and only began to reverse course aft er we reported our fi rst-quarter results on 10 May. Subsequently, it fl uctuated widely in an uncertain and nervous market, hitting its annual low of € 9.13 on 23 September. It then performed much better than the DAX and the EURO STOXX 50, a result that was based in part on the positive trend in our business in the third quarter and our increased forecast for full-year 2011, and climbed back to close the year at € 11.88 on 30 December 2011, having risen 11.0 % since 9 November 2011 when we published the fi gures for the fi rst nine months. By comparison, the DAX lost 1.1 % and the EURO STOXX 50 gained only 0.6 % in this period. Over the year as a whole, our share lost 6.5 % in value, much less than the DAX and the EURO STOXX 50. Average daily trading volumes of Deutsche Post shares fell slightly year-on-year to 4.9 million shares (previous year: 5.3 million shares).
At the end of 2011, 36 analysts were following Deutsche Post shares. A total of 30 analysts issued a "buy" recommendation on our shares, four more than a year earlier. Th ree analysts issued a neutral recommendation regarding Deutsche Post shares and only three recommended selling. Th e average price target decreased slightly at year end to € 14.66 compared with the prior year (€ 16.35) despite our profi t forecast, which we raised during the course of the year. Analysts anticipate a weakening macroeconomic situation and therefore valued the shares lower.
1 As at 31 December 2011. 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 first due date for interest until 30 July 2014.
Th e number of shares held by private investors rose again compared with the previous year, increasing from 7.5 % to 10.2 % of all issued shares. KfW Bankengruppe continued to hold 30.5 % of our shares. Th e free fl oat is 69.5 %. Amongst identifi ed institutional investors, the greatest numbers of issued shares are held in the United Kingdom (15.0 %), the United States (11.4 %) and Germany (8.2 %). Our 25 largest institutional investors hold a total of 24.2 % of all issued shares.
Th e Group having successfully completed all major restructuring eff orts, investors in 2011 returned their attention to the development of operations and the business outlook in our divisions. Th is allowed us to take our equity story on the off ensive and show investors how we are successfully implementing our Strategy 2015.
In the MAIL division, we focused on the solid growth of our parcel business. Th e Generations Pact agreed upon with the trade unions in October for age-based career solutions in Germany as well as the decision by the German Federal Network Agency on the future calculation of mail prices also met with a positive response. In our DHL divisions, investors primarily praised the positive business performance in Asia. Key topics at meetings with investors were the actions we are taking to further expand our market leadership in the region and global trends in volume. Th e market was especially optimistic about our decision to again raise our full-year outlook in November 2011 despite the fact that the global economy had weakened overall in the second half of the year.
Once more we conducted a detailed target group analysis using investor targeting in the reporting year in order to address the specifi c needs of investors in the world's most important fi nancial centres. Th e Investor Relations team held a total of 516 separate meetings with institutional investors in 2011, with members of the Board of Management taking part in 107 of those meetings. Th is intense work by our Investor Relations team was recognised again this year in the renowned Extel Survey conducted by Th omson Reuters. We won second place in the transport sector. Our CEO, Dr Frank Appel, was awarded second place amongst CEO s in our sector and Lawrence Rosen third place amongst CFO s. In Manager Magazin's annual ranking, our annual report took fi rst place amongst DAX companies and was ranked the best annual report overall.
In a time of economic uncertainty, Deutsche Post DHL, as a global logistics company, achieved an impressive result in fi nancial year 2011. Th anks to our presence in the world's growth markets, we were able to increase revenues in all DHL divisions, in some areas quite considerably. Th e extensive restructuring measures we have implemented in recent years have substantially improved our profi tability, as refl ected in the noticeable increase in our margins. Th e MAIL division stabilised revenue, due above all to strong growth in our parcel business. Given that operating cash fl ows have likewise trended in a very positive direction and that we continue to benefi t from our good net liquidity position, the Group's fi nancial position remains very solid in the opinion of the Board of Management.
In accordance with the contractual arrangements governing the planned sale of Postbank to Deutsche Bank, we reclassifi ed our remaining 39.5 % shareholding in Postbank as held for sale at the end of February 2011. Th e carrying amount of the investment as at the reclassifi cation date was € 1,801 million.
| 2010 | 2011 | ||
|---|---|---|---|
| Revenue | €m | 51,388 | 52,829 |
| Profi t from operating activities (ebit) | €m | 1,835 | 2,436 |
| Return on sales 1 | % | 3.6 | 4.6 |
| Consolidated net profi t for the period 2 | €m | 2,541 | 1,163 |
| Earnings per share 3 | € | 2.10 | 0.96 |
| Dividend per share | € | 0.65 | 0.70 4 |
1 ebit / revenue.
2 After deduction of non-controlling interests, including Postbank.
3 Including Postbank. 4 Proposal.
Changes in portfolio and reporting
In order to strengthen the focus on our core activities in the Supply Chain business unit in the United States, we sold Exel Transportation Services Group (ETS), a provider of freight brokerage and intermodal services in the USA and Canada, on 1 April 2011.
On the same date, we incorporated a specialist provider of internet advertising services into the MAIL division by acquiring all shares of Adcloud GmbH, Cologne, Germany.
Th e acquisition of the 100 % interest in Eurodifarm srl., Lodi, Italy, was completed in the middle of May 2011. As part of the SUPPLY CHAIN division, the company specialises in the temperature-controlled distribution of pharmaceutical and diagnostic products.
On 1 June 2011, we acquired all the shares of Standard Forwarding LLC, East Moline, USA. Th is acquisition expands our freight business capacities in the Freight business unit.
DHL Express Canada sold its domestic business to the transport company Trans-Force at the end of June and is now focusing on international express services in Canada.
In the middle of July, we acquired Tag EquityCo Limited, Cayman Islands, together with its subsidiaries. Th e Tag Group is an international provider of marketing execution and production services. Th e company has been assigned to the Williams Lea business unit. We expect to achieve synergies and economies of scale through the combined service off ering.
Due to a change in the legal framework in China, we sold our domestic express business to the Chinese company Unitop Industry, Shenzhen, in the third quarter.
In the MAIL division, we adjusted our method of reporting revenues and materials expense in the Williams Lea business unit at the end of 2011. Discounts granted to customers are no longer recognised under materials expense but are consistently deducted from revenues. Th e prior-year fi gures were adjusted.
As at 1 July, we transferred the Home Delivery business in Germany from the SUPPLY CHAIN division to the MAIL division. Th e signifi cant synergies between this delivery service and the German parcel business will allow us to cultivate the market in this sector more intensively.
In fi nancial year 2011, consolidated revenue rose € 1,441 million or 2.8 % year-onyear to € 52,829 million. Th e share of consolidated revenue generated abroad increased from 68.0 % to 68.3 % despite negative currency eff ects of € 642 million. Th e changes in the portfolio reduced revenue by € 627 million. Without these eff ects, revenue would have increased by 5.3 %.
In the fourth quarter, revenue rose 2.1 % to € 14,126 million (previous year: € 13,835 million). It was impacted by negative currency eff ects of € 42 million and portfolio changes amounting to € 152 million.
Other operating income declined by 7.5 %, from € 2,217 million to € 2,050 million in the year under review. Th e higher fi gure last year was largely attributable to the reversal of provisions recognised for restructuring.
Th e materials expense rose € 1,164 million to € 30,544 million in the year under review due to an increase in transport volumes, freight costs and oil prices.
Staff costs edged up by 0.7 % to € 16,730 million (previous year: € 16,609 million).
By contrast, depreciation, amortisation and impairment losses decreased slightly by € 22 million to € 1,274 million.
Other operating expenses were down signifi cantly year-on-year, at € 3,895 million (previous year: € 4,485 million). In 2010, the fi gure mainly included expenses attribut able to asset disposals arising from the sale of business units in the UK, France and Austria.
Profi t from operating activities (EBIT) improved signifi cantly year-on-year, rising 32.8 % or € 601 million to € 2,436 million. In the fourth quarter of 2011, profi t increased 14.1 % to € 599 million. Th e smaller increase is largely attributable to the expenses arising in connection with the sale of business units in the UK, France and Austria in the fi rst half of the previous year.
Profi t before income taxes declined from € 2,824 million to € 1,659 million in 2011. Income taxes increased by € 199 million to € 393 million, due to higher taxable income.
Consolidated net profi t for the period declined during the year under review, falling from € 2,630 million to € 1,266 million. Of this amount, € 1,163 million is attributable to shareholders of Deutsche Post AG and € 103 million to non-controlling interest holders. In the previous year, above all the initial measurement of the forward from the sale of Postbank had lift ed consolidated net profi t for the period by € 1,453 million. Both basic and diluted earnings per share fell from € 2.10 to € 0.96.
At the Annual General Meeting on 9 May 2012, the Board of Management and the Supervisory Board will make a proposal to the shareholders to pay a dividend per share of € 0.70 for fi nancial year 2011 (previous year: € 0.65). Th e distribution ratio based on the consolidated net profi t attributable to Deutsche Post AG shareholders amounts to 72.7 %. Th e net dividend yield based on the year-end closing price of our shares is 5.9 %. Th e dividend will be distributed on 10 May 2012 and is tax-free for shareholders resident in Germany.
In the previous year ebit before non-recurring items was € 2,205 million.
a.21 Total dividend and dividend
Th e Group's fi nancial management activities include managing cash and liquidity, hedging interest rate, currency and commodity price risk, ensuring Group fi nancing, issuing guarantees and letters of comfort and liaising with rating agencies. We manage processes centrally, allowing us to work effi ciently and successfully manage risk.
Responsibility for these 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 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.
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.
Th e Group's fi nance strategy builds on the principles and aims of fi nancial management. In addition to the interests of shareholders, the 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 a dynamic performance metric known as funds from operations to debt (FFO to debt), calculated on a rolling 12-month basis. Our strategy additionally 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 and 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 information from the company. • Predictability of expected returns. |
| • Pay out 40 % – 60 % of net profi t. | Group |
| • Consider cash fl ows and continuity. | • Preserve fi nancial and strategic fl exibility. |
| Excess liquidity | • Assure low cost 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 "a 3", 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. |
Weighted average cost of capital Group management, page 40 f.
Funds from operations (FFO) represents operating cash fl ows 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.
| a.23 ffo to debt | |||
|---|---|---|---|
| -- | -- | -- | ------------------ |
1
1
| €m | ||
|---|---|---|
| 2010 | 2011 | |
| Operating cash fl ow before changes in working capital | 2,109 | 2,234 |
| Interest and dividends received | 59 | 72 |
| Interest paid | 183 | 163 |
| Adjustment for operating leases | 1,055 | 1,104 |
| Adjustment for pensions | 198 | 153 |
| Non-recurring income / expenses | 531 | 208 |
| Funds from operations (ffo) | 3,769 | 3,608 |
| Reported fi nancial liabilities | 7,022 | 7,010 |
| Financial liabilities related to the sale of Deutsche Postbank ag | 4,164 | 4,344 |
| Financial liabilities at fair value through profi t or loss | 115 | 137 |
| Adjustment for operating leases | 5,527 | 5,295 |
| Adjustment for pensions | 5,323 | 5,639 |
| Surplus cash and near-cash investments 1 | 2,893 | 2,286 |
| Debt | 10,700 | 11,177 |
| ffo to debt (%) | 35.2 | 32.3 |
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.
Deutsche Post DHL Annual Report 2011
FFO to debt declined versus the prior year, primarily due to the decrease in our liquidity as a result of higher capital expenditure. Funds from operations also decreased slightly in the reporting year.
Th e cash and liquidity of our globally active subsidiaries is managed centrally by Corporate Treasury. More than 80 % of the Group's external revenue is consolidated in cash pools and used to balance internal liquidity needs. In countries where this practice is ruled out for legal reasons, internal and external borrowing and investment are arranged centrally by Corporate Treasury. In this context, we observe a balanced banking policy in order to remain independent of individual banks. Our subsidiaries' intragroup revenue is also pooled and managed by our in-house bank in order to avoid external bank charges and margins through 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 exclusively via 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 as well as providing adequate fl exibility. Our most important source of funds is net cash from operating activities.
Since our liquidity remains good, the fi ve-year syndicated credit facility issued in December 2010 at a total volume of € 2 billion was not drawn down during the year under review. Th is syndicated credit facility guarantees us favourable market conditions and acts as a secure, long-term liquidity reserve. It does not contain any covenants concerning the Group's fi nancial indicators.
As part of our banking policy, we 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, including 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.
In view of the fact that the bond issued by Deutsche Post Finance B.V. in the amount of € 0.7 billion will fall due in October 2012, as well as of the European Commission's state aid ruling, the Board of Management has decided to establish a Debt Issuance Programme in the amount of € 3 billion. Th is off ers us the possibility of issuing bonds in customised tranches up to a stipulated total amount and enables us to react fl exibly to changing market conditions.
Note 51
Note 48
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 rating agencies Standard & Poor's and Moody's Investors Service. In the second half of 2011, both agencies confi rmed their ratings of "BBB+" and "Baa1", respectively. Th is means that the capacity of the Group to meet its fi nancial obligations continues to be classifi ed as adequate. Deutsche Post DHL is well positioned in the transport and logistics sector with these ratings. 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. Th e eff ects of the EU state aid ruling are described in the outlook section of the Annual Report.
| Rating factors | Rating factors | |
|---|---|---|
| Standard & Poor's Long-term: bbb + 1 Short-term: a-2 1 Outlook: stable 1 |
• Global network, with leading market positions in international European and Asian express delivery services. • Dominant position in the German mail market. • Largest global integrated logistics provider. • Strong diversifi cation and good scale benefi t. |
• Structural volume decline in the mail business and margin dilution from the lower-margin logistics business. • Regulatory risk evidenced by recent legislation where Deutsche Post lost its value-added-tax exemption for business customers. • Signifi cant exposure to the cyclical, highly fragmented and fairly low margin integrated logistics markets. |
| Moody's Investors Service Long-term: Baa1 Short-term: p-2 Outlook: stable |
• Scale and global presence as one of the largest logistics companies in the world. • Large and relatively robust mail business. • Success in restoring profi tability at the logistics activities while reducing the negative impact of a change in vat treatment at the mail division. • Improved liquidity profi le thanks to syndicated credit facility and conservative financial profile of the Group. • Improving operating performances and key credit metrics. |
• Exposure to mature mail business and overall macroeconomic trends. • Increased liberalization of the German mail market. |
1 Credit watch negative.
a.24 Agency ratings
standardandpoors.com, moodys.com
dp-dhl.com/en/investors.html Note 51
As at the balance sheet date, the Group had cash and cash equivalents of € 3.1 billion (previous year: € 3.4 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 and these short-term money market investments had a volume of € 1.8 billion at the balance sheet date.
Th e fi nancial liabilities reported in our balance sheet break down as follows:
| €m | ||
|---|---|---|
| 2010 | 2011 | |
| Bonds | 1,682 | 1,659 |
| Due to banks | 359 | 163 |
| Finance lease liabilities | 210 | 175 |
| Liabilities to Group companies | 137 | 102 |
| Liabilities at fair value though profi t or loss | 115 | 137 |
| Other | 4,519 | 4,774 |
| 7,022 | 7,010 |
Th e largest single items are the two listed bonds issued by 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 with Deutsche Postbank AG shares in the form of a mandatory exchangeable bond, cash collateral and a hedging liability. Further information on 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 but also aircraft , vehicle fl eets and IT equipment.
| €m | ||
|---|---|---|
| 2010 | 2011 | |
| Land and buildings | 5,554 | 5,294 |
| Technical equipment and machinery | 115 | 80 |
| Other equipment, operating and offi ce equipment, transport equipment, miscellaneous | 471 | 486 |
| Aircraft | 951 | 765 |
| 7,091 | 6,625 |
Operating lease obligations decreased signifi cantly year-on-year to € 6.6 billion because the reduction in the remaining terms of legacy agreements, especially for real estate and aircraft , is not matched by the same volume of new leases.
Note 50
Note 44
Th e Group's aggregate capital expenditure (capex) amounted to € 1,716 million at the end of 2011 (previous year: € 1,262 million), up 36 %.
Funds were used mainly to replace and increase assets as follows: € 1,430 million was invested in property, plant and equipment and € 286 million in intangible assets excluding goodwill. Investments in property, plant and equipment were mainly attributable to advance payments and assets under development (€ 637 million). Of this amount, 45 % was allotted to Express Aviation. Th e remaining investments in property, plant and equipment were distributed as follows: transport equipment (€ 277 million), technical equipment and machinery (€ 238 million), IT equipment (€ 95 million) and other operating and offi ce equipment (€ 87 million).
Our investments continued to focus strongly on Europe, the Americas and Asia. Within Europe, investments were centred on Germany and the UK, whereas in the Americas, key focus was on the United States, Mexico, Canada and Brazil. In Asia Pacifi c investments centred on China, India, Australia and Singapore.
| global forwarding, Corporate Center / express freight supply chain Other |
Group | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2010 adjusted |
2011 | 2010 | 2011 | 2010 | 2011 | 2010 adjusted |
2011 | 2010 | 2011 | 2010 | 2011 | |
| Capex (€m) | 446 | 433 | 286 | 602 | 102 | 135 | 214 | 252 | 214 | 294 | 1,262 | 1,716 |
| Depreciation, amortisation and impairment losses (€m) |
332 | 354 | 373 | 337 | 98 | 101 | 289 | 287 | 204 | 195 | 1,296 | 1,274 |
| Ratio of capex to depreciation, amortisation and impairment losses |
1.34 | 1.22 | 0.77 | 1.79 | 1.04 | 1.34 | 0.74 | 0.88 | 1.05 | 1.51 | 0.97 | 1.35 |
| express | global forwarding, freight supply chain |
Corporate Center / Other |
Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2010 adjusted |
2011 | 2010 | 2011 | 2010 | 2011 | 2010 adjusted |
2011 | 2010 | 2011 | 2010 | 2011 | |
| Capex (€m) | 146 | 200 | 134 | 245 | 34 | 61 | 81 | 73 | 104 | 96 | 499 | 675 |
| Depreciation, amortisation and impairment losses (€m) |
103 | 119 | 87 | 88 | 25 | 26 | 74 | 78 | 48 | 49 | 337 | 360 |
| Ratio of capex to depreciation, amortisation and impairment losses |
1.42 | 1.68 | 1.54 | 2.78 | 1.36 | 2.35 | 1.09 | 0.94 | 2.17 | 1.96 | 1.48 | 1.88 |
Capital expenditure in the MAIL division fell in the reporting year from € 446 million to € 433 million. Investments related in particular to technical equipment and machinery (€ 138 million), internally generated soft ware (€ 90 million) and other operating and offi ce equipment (€ 62 million). We continue to invest in our technology and quality leadership in the mail market: the fl at sorters purchased have a higher throughput and CO2 effi ciency to further improve delivery. We are also testing carbon-neutral delivery and taking measures intended to ease the work load of our employees, for example
by buying e-bikes, work clothing and new operating equipment. We have expanded electronic platforms such as the E-Postbrief and our DieRedaktion.de journalists' portal. To consolidate and expand our market leadership in Germany, we made major investments in our parcel business during 2011. One focus was our Production Concept 2012, which is aimed at establishing fl exible IT structures and systems and adjusting production capacities to increasing shipment volumes. To meet customer demand, we expanded our network of Packstations. We continued to extend our MeinPaket.de shopping portal for small and medium-sized e-commerce retailers to strengthen this customer group's ties with our company. We also restructured and improved the retail outlet network of Deutsche Post AG.
In the EXPRESS division, capital expenditure rose by 110 % to € 602 million (previous year: € 286 million). During 2010 investments had been scaled back in the light of the global economic crisis. In the reporting year the investing activity was resumed to meet our regular investment requirements and actually increased in line with our strong growth. Capital expenditure in property, plant and equipment related mainly to advance payments and assets under development (€ 429 million), technical equipment and machinery (€ 50 million), aircraft (€ 36 million), IT (€ 21 million) and transport equipment (€ 20 million). Investments in intangible assets related to soft ware (€ 7 million), as well as to advance payments and intangible assets under development (€ 3 million).
Th e advance payments and investments were primarily made to purchase new aircraft and carry out regulatory maintenance of the existing fl eet. Th e ground network infrastructure has been strengthened throughout the regions. In the Asia Pacifi c region, we are currently investing in our new North Asia Hub in Shanghai. We have also bolstered our presence in the growth markets of India and China. In the Americas region, we focused investment on Mexico, Canada and our hub in Cincinnati (USA). In Europe, we modernised our Leipzig hub as well as terminals in Italy, the UK, Austria and Sweden.
In the GLOBAL FORWARDING, FREIGHT division, a total of € 135 million was invested in the year under review (previous year: € 102 million). Of this fi gure, € 100 million was attributable to the Global Forwarding business unit, where we continued to improve IT solutions for our global applications. Additionally, we fi tted out and modernised our warehouses, especially in the Asia Pacifi c and Europe regions.
Funds of € 35 million were invested in the Freight business unit, where they were used primarily for property, plant and equipment and transport equipment in the UK and Germany.
In the SUPPLY CHAIN division, capex rose by 18 % compared with the prior year to € 252 million (previous year: € 214 million). Of that amount, € 223 million related to the Supply Chain business unit, € 26 million to the Williams Lea business and € 3 million to central entities. Approximately 60 % of the funds were used to support new business. Th e Americas region focused on new business investments, primarily in the Consumer, Retail, Life Sciences & Healthcare sectors and in Latin America in the Automotive sector. In the UK, there has been continued investment within the Retail and Consumer sectors to expand the warehousing and transport solutions for new and existing customers, along with major investments in the Life Sciences & Healthcare sector to assist with start-ups and ongoing transport operations. Capital expenditure was signifi cantly lower in other parts of Europe, where most funds were expended for replacement and renewal investments. In our Williams Lea business unit we concentrated primarily on marketing solutions and IT development.
Cross-divisional capital expenditure rose from € 214 million in 2010 to € 294 million in 2011. Capital expenditure for the purchase of vehicles had been considerably reduced in previous years, resulting in a signifi cantly higher demand for new vehicles in the reporting year. IT investments increased as well, essentially due to licence purchases.
Net cash from operating activities rose € 444 million in 2011 to € 2,371 million. Th is was largely attributable to the improved EBIT and the cash infl ow from changes in working capital. Gains from disposals of non-current assets in the amount of € 54 million (previous year: losses of € 279 million) have been adjusted in the net loss from disposal of non-current assets line item. Th e resulting cash fl ow is presented in net cash used in investing activities. Th e cash infl ow before changes in working capital also increased, up from € 2,109 million to € 2,234 million. Th e cash infl ow of € 137 million from changes in working capital is mainly due to the smaller increase in receivables and other assets than in the previous year. In 2010, changes in working capital resulted in a cash outfl ow of € 182 million.
| a.31 Selected cash fl ow indicators | |
|---|---|
| €m | ||
|---|---|---|
| 2010 | 2011 | |
| Cash and cash equivalents as at 31 December | 3,415 | 3,123 |
| Change in cash and cash equivalents | 284 | –305 |
| Net cash from operating activities | 1,927 | 2,371 |
| Net cash from / used in investing activities | 8 | –1,129 |
| Net cash used in fi nancing activities | –1,651 | –1,547 |
Net cash used in investing activities amounted to € 1,129 million. Investments in property, plant and equipment (€ 1,716 million) were the most signifi cant item in this area. Th ese were used mainly to expand our European and Asian infrastructures and modernise our IT, and for investments in the aircraft fl eet. Disposals of non-current assets resulted in a net cash infl ow of € 285 million, compared with a net cash outfl ow of € 12 million in the previous year, which was due in part to the sale of the day- defi nite domestic express business in France and the UK. Th e proceeds from the sale of subsidiaries and other business units amounting to € 58 million in the reporting year were mainly attributable to the sale of Exel Transportation Service and of DHL Express Canada's domestic express business. € 84 million was used to acquire subsidiaries and other business units, mainly for the purchase of Tag, Eurodifarm and Standard Forwarding. In the previous year, net cash from investing activities amounted to € 8 million, mainly due to the sale of money market funds in the amount of € 1,200 million. During the year under review, we sold money market funds in the amount of € 403 million.
In the past, free cash fl ow was characterised by substantial changes in fi nancial assets. In order to improve the informative value of free cash fl ow from an operating perspective, we have changed the way we report this indicator, as shown in the following table.
| €m | ||||
|---|---|---|---|---|
| 2010 | 2011 | Q4 2010 | Q4 2011 | |
| Net cash from operating activities | 1,927 | 2,371 | 1,025 | 1,262 |
| Sale of property, plant and equipment and intangible assets | 198 | 211 | 72 | 17 |
| Acquisition of property, plant and equipment and intangible assets |
–1,174 | –1,716 | – 425 | – 646 |
| Cash outfl ow arising from change in property, plant and equipment and intangible assets |
– 976 | –1,505 | –353 | – 629 |
| Disposal of subsidiaries and other business units | –265 | 58 | 3 | –1 |
| Acquisition of subsidiaries and other business units | –74 | – 84 | 0 | –14 |
| Cash outfl ow arising from acquisitions / divestments | –339 | –26 | 3 | –15 |
| Interest received | 55 | 72 | 19 | 17 |
| Interest paid | –183 | –163 | – 47 | –27 |
| Net interest paid | –128 | – 91 | –28 | –10 |
| Free cash fl ow | 484 | 749 | 647 | 608 |
Free cash fl ow increased from € 484 million in the previous year to € 749 million. In the fourth quarter of 2011, free cash fl ow changed from € 647 million in the previous year to € 608 million.
Net cash used in fi nancing activities declined by € 104 million year-on-year to € 1,547 million. Th e largest item in this area was the dividend payment to our shareholders, which increased by € 61 million to € 786 million. In addition, the change in fi nancial liabilities resulted in a € 224 million decline in the cash outfl ow year-on-year, to € 417 million due in part to the early repayment of a municipal bond in the previous year.
Cash and cash equivalents fell from € 3,415 million as at 31 December 2010 to € 3,123 million due to the changes in the cash fl ows from the individual activities.
| 2010 | 2011 | ||
|---|---|---|---|
| Equity ratio | % | 28.3 | 29.2 |
| Net liquidity (–)/net debt (+) | €m | –1,382 | – 938 |
| Net interest cover | 14.3 | 26.8 | |
| ffo to debt 1 | % | 35.2 | 32.3 |
1 Calculation Financial position, page 50.
Th e Group's total assets amounted to € 38,408 million as at 31 December 2011, € 645 million higher than at 31 December 2010.
Since the planned sale of Postbank is expected to take place in less than 12 months, it was necessary to reclassify all of the associated non-current assets and liabilities to the relevant current balance sheet items. In addition, the carrying amount of the investment in Postbank was reclassifi ed as held for sale.
Th ese reclassifi cations were the main reason why non-current assets declined by € 3,268 million to € 21,225 million: investments in associates and non-current fi nancial assets decreased by € 1,797 million and € 2,509 million respectively. Intangible assets rose by € 348 million to € 12,196 million, largely because the acquisition of Tag, Eurodifarm and Standard Forwarding and currency translation diff erences increased goodwill. At € 6,493 million, property, plant and equipment also exceeded the previous year's level (€ 6,130 million). A large proportion of this is attributable to investments in infrastructure. Deferred tax assets increased by € 180 million to € 1,153 million year-on-year.
At € 17,183 million, current assets were € 3,913 million higher than at 31 December 2010. Current fi nancial assets rose from € 655 million to € 2,498 million, largely as a result of the above-mentioned reclassifi cations in connection with the sale of Postbank. Th e positive business performance also had an impact on receivables and other current assets, which increased from € 8,641 million to € 9,089 million. By contrast, cash and cash equivalents declined from € 3,415 million to € 3,123 million. Assets held for sale increased from € 113 million to € 1,961 million as at the reporting date, mainly because the remaining equity interest in Postbank was reclassifi ed.
At € 11,009 million, equity attributable to Deutsche Post shareholders was € 498 million or 4.7 % higher than at 31 December 2010. Whilst consolidated net profi t for the period and positive currency eff ects increased equity, it was reduced by the dividend payment to our shareholders.
Current and non-current liabilities increased by € 561 million from € 17,640 million to € 18,201 million, primarily because trade payables rose by € 461 million to € 6,168 million. At € 4,106 million, other current liabilities were slightly higher than the prior-year fi gure (€ 4,047 million). At € 7,010 million, fi nancial liabilities remained practically unchanged from their level as at 31 December 2010 (€ 7,022 million). However, there was a fundamental change in the maturity structure: the liabilities relating to the planned Postbank sale were reclassifi ed from non-current fi nancial liabilities to current fi nancial liabilities, in line with the methodology applied to the related assets. Current and noncurrent provisions were reduced from € 9,427 million to € 9,008 million, mainly due to the utilisation of restructuring provisions.
Our net liquidity declined from € 1,382 million as at 31 December 2010 to € 938 million as at 31 December 2011, in part because cash paid to acquire property, plant and equipment and intangible assets increased substantially to € 1,716 million (previous year: € 1,174 million). Th e equity ratio improved by 0.9 percentage points to 29.2 %. Net interest cover shows the extent to which net interest obligations are covered by EBIT. Th is indicator increased from 14.3 to 26.8. As we have net liquidity, the informative value of net gearing is limited. We therefore do not present or comment on it here.
| €m | ||
|---|---|---|
| 2010 | 2011 | |
| Non-current fi nancial liabilities | 6,275 | 1,346 |
| Current fi nancial liabilities | 747 | 5,588 |
| Financial liabilities | 7,022 | 6,934 |
| Cash and cash equivalents | 3,415 | 3,123 |
| Current fi nancial assets | 655 | 2,498 |
| Long-term deposits 1 | 120 | 56 |
| Positive fair value of non-current fi nancial derivatives 1 | 2,531 | 94 |
| Financial assets | 6,721 | 5,771 |
| Financial liabilities to Williams Lea minority shareholders | 28 | 36 |
| Mandatory exchangeable bond 2 | 2,796 | 2,926 |
| Collateral for the put option 2 | 1,248 | 1,298 |
| Net effect from measurement of Postbank derivatives 3 | 2,389 | 2,159 |
| Non-cash adjustments | 1,683 | 2,101 |
| Net liquidity (–) / net debt (+) | −1,382 | −938 |
1 Reported in non-current fi nancial assets in the balance sheet.
2 Reported in non-current or current fi nancial liabilities in the balance sheet.
3 Reported in non-current or current fi nancial assets and liabilities in the balance sheet.
| €m | 2010 adjusted |
2011 | +/– % | Q4 2010 adjusted |
Q4 2011 | +/– % |
|---|---|---|---|---|---|---|
| Revenue | 13,913 | 13,973 | 0.4 | 3,825 | 3,853 | 0.7 |
| of which Mail Communication | 5,597 | 5,430 | –3.0 | 1,487 | 1,458 | –2.0 |
| Dialogue Marketing | 2,595 | 2,605 | 0.4 | 713 | 690 | –3.2 |
| Press Services | 797 | 782 | –1.9 | 209 | 201 | –3.8 |
| Value-Added Service | 229 | 238 | 3.9 | 59 | 66 | 11.9 |
| Parcel Germany | 2,927 | 3,179 | 8.6 | 888 | 972 | 9.5 |
| Retail Outlets | 800 | 822 | 2.8 | 217 | 226 | 4.1 |
| Global Mail | 1,735 | 1,693 | –2.4 | 480 | 467 | –2.7 |
| Pension Service | 102 | 100 | –2.0 | 24 | 23 | – 4.2 |
| Consolidation / Other | – 869 | – 876 | – 0.8 | –252 | –250 | 0.8 |
| Profi t from operating activities (ebit) | 1,120 2 | 1,107 | –1.2 | 224 3 | 246 | 9.8 |
| Return on sales (%) 1 | 8.1 | 7.9 | – | 5.9 | 6.4 | – |
| Operating cash fl ow | 1,042 | 924 | −11.3 | 544 | 487 | −10.5 |
| express | ||||||
| Revenue | 11,111 | 11,766 | 5.9 | 2,904 | 3,122 | 7.5 |
| of which Europe | 4,960 | 5,009 | 1.0 | 1,270 | 1,318 | 3.8 |
| Americas | 1,831 | 1,887 | 3.1 | 478 | 489 | 2.3 |
| Asia Pacifi c | 3,374 | 3,718 | 10.2 | 897 | 996 | 11.0 |
| eemea (Eastern Europe, the Middle East and Africa) | 1,216 | 1,284 | 5.6 | 326 | 351 | 7.7 |
| Consolidation / Other | –270 | –132 | 51.1 | – 67 | –32 | 52.2 |
| Profi t from operating activities (ebit) | 497 4 | 927 | 86.5 | 218 5 | 248 | 13.8 |
| Return on sales (%) 1 | 4.5 | 7.9 | – | 7.5 | 7.9 | – |
| Operating cash fl ow | 904 | 1,146 | 26.8 | 251 | 454 | 80.9 |
| global forwarding, freight | ||||||
| Revenue | 14,341 | 15,044 | 4.9 | 3,898 | 3,936 | 1.0 |
| of which Global Forwarding | 10,725 | 11,094 | 3.4 | 2,914 | 2,907 | – 0.2 |
| Freight | 3,735 | 4,088 | 9.5 | 1,018 | 1,064 | 4.5 |
| Consolidation / Other | –119 | –138 | –16.0 | –34 | –35 | –2.9 |
| Profi t from operating activities (ebit) | 383 6 | 429 | 12.0 | 131 7 | 126 | –3.8 |
| Return on sales (%) 1 | 2.7 | 2.9 | – | 3.4 | 3.2 | – |
| Operating cash fl ow | 244 | 657 | > 100 | 141 | 260 | 84.4 |
| supply chain | ||||||
| Revenue | 13,061 | 13,223 | 1.2 | 3,502 | 3,548 | 1.3 |
| of which Supply Chain | 11,997 | 11,999 | 0.0 | 3,209 | 3,182 | – 0.8 |
| Williams Lea Consolidation / Other |
1,062 2 |
1,225 –1 |
15.3 – |
294 –1 |
367 –1 |
24.8 – |
| Profi t from operating activities (ebit) | 231 8 | 362 | 56.7 | 46 9 | 73 | 58.7 |
| Return on sales (%) 1 | 1.8 | 2.7 | – | 1.3 | 2.1 | – |
| Operating cash fl ow | 343 | 394 | 14.9 | 125 | 183 | 46.4 |
1 ebit / revenue.
2 Before non-recurring items (adjusted): € 1,154 million.
3 Before non-recurring items (adjusted): €254 million.
4 Before non-recurring items: € 785 million.
5 Before non-recurring items: € 239 million.
6 Before non-recurring items: € 390 million.
7 Before non-recurring items: € 132 million.
8 Before non-recurring items (adjusted): € 272 million.
9 Before non-recurring items (adjusted): € 62 million.
Deutsche Post DHL is Europe's largest postal company. We deliver 65 million letters every working day in Germany alone. We off er all types of products and services to both private and business customers, ranging from standard letters and merchandise to special services such as cash on delivery and registered mail. Customer service is always our number one priority: today, our customers can purchase stamps at retail outlets, stamp dispensers, online or via text message.
Our E-Postbrief product, launched in July 2010, provides a secure, confi dential and reliable platform for electronic communication. It can be used for everything from personalised customer communication to bulk mailing. E-Postbrief allows companies, public authorities and private individuals not only to meet high security standards but also to reduce processing costs.
Our mail business is focused on Germany, where the mail market has been fully liberalised since the beginning of 2008. Since July 2010, we have been required to apply value added tax to revenues generated from business customers. Since then competition has become more intense, whilst at the same time the increasing use of electronic communication is resulting in a continuing shrinkage of the German mail market. In the year under review, the market for business communications was approximately € 4.3 billion (previous year, adjusted: € 4.6 billion). We adjusted how we present the market shares to more precisely refl ect actual market conditions. Here we report on the competitive business customer market. We now indicate those companies that are service providers
Source: company estimate.
to business customers, i.e., both competitors who off er end-to-end solutions as well as consolidators who off er partial services. Our market share declined slightly from 64.4 % to 63.7 %.
Advertisers can use our solutions to design and print advertising mail themselves and send it at reasonable rates via our company. Dialogue marketing is only eff ective if addresses are constantly updated without breaching data protection regulations. We provide our customers with online tools and services to ensure the quality of their addresses and for the effi cient identifi cation of target groups. Companies may rent addresses from these identifi ed target groups from us for their own advertising campaigns as needed. We also off er our customers a broad range of digital dialogue marketing solutions to use for cross-media and targeted communication.
Th e German dialogue marketing market comprises advertising mail along with telephone and e-mail marketing. In the reporting year, this market shrank slightly by 1.1 % yearon-year to a volume of € 18.5 billion. Some companies considerably reduced advertising expenditure, especially the charitable sector and lottery organisations. We were able to achieve a slight increase in our share of this highly fragmented market to 13.5 %.
We deliver newspapers and magazines throughout Germany and on the day specifi ed by the customer. Our Press Services business unit off ers customers two products in this context: preferred periodicals, which is the traditional method publishers use to post the publications to which their customers have subscribed, and standard periodicals, which companies primarily use to distribute customer or employee magazines via Deutsche Post DHL. We also partner with publishers to sell subscriptions to over 500 newspapers and magazines both online and offl ine as part of our Deutsche Post Leser service, a service that has seen much success. Our special services include electronic address updating as well as complaint and quality management. In addition, we off er publishers and journalists an online marketplace for journalistic content: DieRedaktion.de.
According to company estimates, the German press services market had a total volume of 15.9 billion items in 2011, a decline of 3.0 % on the prior year. Newspaper and magazine circulation has decreased although weights have seen a slight recovery. Our competitors are mainly companies that deliver regional daily newspapers. In an overall shrinking market, we continued to maintain our share at 11.4 %.
Our customers entrust us with components of their mail communications value chain. 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.
a.37 Domestic dialogue marketing market, 2011
Source: company estimate.
Source: company estimate.
At some 20,000 retail outlets and points of sale, around 2,500 Packstations and around 1,000 Paketboxes, we are available for our customers practically everywhere to send and collect parcels and small packages at any time they like. We ship about 2.9 million of these items in Germany each working day. Our Packstations are located in approximately 1,600 towns and cities across Germany. Nearly 90 % of all residents in Germany are just about ten minutes or less away from the nearest Packstation.
Private customers 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. We transport catalogues, goods and returns and we support both online buyers and sellers, a business that continues to boom, from the moment the order is placed and the purchase is made to shipping the product and hedging against non-payment. Our shopping portal, MeinPaket.de, is a pertinent example. Designed with small and medium-sized retailers in mind, customers can use it to position their products online. MeinPaket.de places security for retailers and shoppers at centre stage. Th e site uses a central checkout function that allows customers to make purchases in a secure environment. With our Home Delivery service we can now also off er our customers in Germany transport services for heavy shipments such as furniture or large appliances.
Th e German parcel market volume totalled around € 7.3 billion in 2011, nearly 7 % more than the prior year. For years now, e-commerce has been a central driver of growth. In 2011 Germans purchased products online at record levels, leading to another year of double-digit growth in e-commerce. Th is had a positive impact on growth in the mail-order and parcel services businesses. Overall, we expanded our market share in the reporting year to approximately 40 %.
Our core market of Germany is not the only place in which we off er our services. We also carry mail across borders and off er international dialogue marketing services. In addition, we serve business customers in key domestic mail markets, including the United States, the UK and Spain. Since the end of 2010 we have off ered return services to online retailers in ten European countries, this is a service we intend to expand in 2012.
Delivering high-quality services is important to us. We rank amongst the top postal companies in the world in terms of transit times, and the 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. Foreign customers tap into our expertise and experience in order to do business successfully on the German market.
a.39 Domestic parcel market, 2011
Source: company estimate.
Source: company estimate.
Th e global market volume for outbound international mail was approximately € 6.9 billion in 2011 (previous year, adjusted on account of new UPU fi gures: € 6.7 billion). Th e market is growing because the economy is recovering from the crisis and more heavy items are being shipped instead of simple letters. Despite increasing competition, we were able to grow with the market and maintain our share of 15.7 %.
As at 1 July 2011, we transferred the Home Delivery business in Germany from the SUPPLY CHAIN division to the MAIL division. We report on this service for deliveries to both private and business customer addresses as part of our Parcel Germany business unit.
Th rough the third quarter of 2011, part of the reduction in revenue resulting from customer discounts was recognised under materials expense rather than revenue. Th e prior-year fi gures were adjusted.
In the year under review, revenue was € 13,973 million, slightly above the prior year's fi gure of € 13,913 million despite the fact that the number of working days was down by 0.3. Th e fourth quarter contained 1.1 working days fewer than the same period in the prior year.
Since 1 July 2010, we have been required to apply VAT to revenues generated from business customers. In order to retain this key customer group, we increased our graduated discount scale, which lowered our revenue. We encountered negative currency eff ects of € 23 million in the year 2011.
In the Mail Communication business unit, we delivered the same volume of letters on behalf of our business customers as we did in the prior year. Th e fact that there were 1.1 fewer working days was only noticeable in the fourth quarter. Revenue in fi nancial year 2011 declined from € 5,597 million to € 5,430 million on account of the increased discounts. Even though we retained and won quality-conscious customers, some of our 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.
a.41 Mail Communication: volumes
| mail items (millions) | ||||||
|---|---|---|---|---|---|---|
| 2010 | 2011 | + / – % | Q4 2010 | Q4 2011 | + / – % | |
| Business customer letters | 6,566 | 6,564 | 0.0 | 1,742 | 1,697 | –2.6 |
| Private customer letters | 1,260 | 1,245 | –1.2 | 378 | 362 | – 4.2 |
| Total | 7,826 | 7,809 | – 0.2 | 2,120 | 2,059 | –2.9 |
Glossary, page 250
In the Dialogue Marketing business unit, we optimised our portfolio in the fourth quarter, which meant cutting ties with a number of customers. Sales volumes were down slightly whilst profi tability improved. In the fi rst three quarters of the reporting year, sales volumes increased for addressed advertising mail and for our product Einkaufaktuell. Customers are again expanding their advertising budgets. In the reporting year, revenue in the Dialogue Marketing business unit was up 0.4 % to € 2,605 million (previous year: € 2,595 million).
| mail items (millions) | ||||||
|---|---|---|---|---|---|---|
| 2010 | 2011 | + / – % | Q4 2010 | Q4 2011 | + / – % | |
| Addressed advertising mail |
6,074 | 6,123 | 0.8 | 1,697 | 1,660 | –2.2 |
| Unaddressed advertising mail |
4,285 | 4,105 | – 4.2 | 1,247 | 1,149 | –7.9 |
| Total | 10,359 | 10,228 | –1.3 | 2,944 | 2,809 | – 4.6 |
Revenue in the Press Services business unit totalled € 782 million in the reporting year, 1.9 % below the prior-year fi gure of € 797 million. Circulations continued their downwards trend in the German press services market and some publications were discontinued. Nevertheless, average publication weights remained stable.
Revenue in the Value-Added Services business unit reached € 238 million in the reporting year, exceeding the prior year's fi gure of € 229 million by 3.9 %. Th e rise was even more palpable in the fourth quarter, during which revenue was up 11.9 % to € 66 million (previous year, adjusted: € 59 million). We were able to generate growth above all in our document management and mailroom services.
In our Parcel Germany business unit, revenue in the reporting year was € 3,179 million, exceeding the prior-year fi gure of € 2,927 million. Th is refl ects growth of a pleasing 8.6 %. Th e fourth quarter saw even higher revenue, rising 9.5 % to € 972 million (previous year: € 888 million). Th e fl ourishing e-commerce business is the primary reason for this strong growth. Our range of products and delivery services are playing a signifi cant role in this growth. With our Home Delivery service, since the middle of 2011 we have now also been able to off er our customers in Germany transport services for heavy shipments such as furniture or large appliances.
| parcels (millions) | 2010 | 2011 | + / – % | Q4 2010 | Q4 2011 | + / – % |
|---|---|---|---|---|---|---|
| adjusted | adjusted | |||||
| Business customer parcels 1 | 678 | 755 | 11.4 | 201 | 226 | 12.4 |
| Private customer parcels | 114 | 115 | 0.9 | 38 | 39 | 2.6 |
| Total | 792 | 870 | 9.8 | 239 | 265 | 10.9 |
1 Including intra-group revenue.
Revenue generated by our approximately 20,000 retail outlets and sales points amounted to €822 million in the reporting year, a 2.8 % increase over the previous year (€800 million). Growth in the fourth quarter amounted to 4.1 %.
In the Global Mail business, revenue and volumes declined year-on-year primarily because we discontinued the bulk mail business in the Netherlands. Full-year 2011 revenue was €1,693 million, 2.4 % below the prior year (€1,735 million). In the fourth quarter, revenue declined by 2.7 % to €467 million (previous year: €480 million). Revenue in the reporting year was impacted by negative currency eff ects of €23 million. We saw encouraging growth in our traditional export business and in international mail from the United States and the Asia Pacifi c region.
| mail items (millions) | ||||||
|---|---|---|---|---|---|---|
| 2010 | 2011 | + / – % | Q4 2010 | Q4 2011 | + / – % | |
| Global Mail | 6,005 | 2,987 | – 50.3 | 1,497 | 638 | – 57.4 |
EBIT in the MAIL division was €1,107 million in fi nancial year 2011, 1.2 % below the prior year's high fi gure of €1,120 million. Th e VAT-related discounts in the mail business and expenses from investments in digital growth areas put pressure on earnings. In the fourth quarter of 2011, earnings improved from €224 million to €246 million. Return on sales was 7.9 % in the reporting year.
Operating cash fl ow was €924 million (previous year, adjusted: €1,042 million). Th is was impacted by the VAT requirement introduced on 1 July 2010 and the changes in working capital associated with it. Working capital was €–913 million and below the prior-year fi gure of €–947 million.
In the EXPRESS division, we transport urgent documents and goods reliably and on time from door to door. Our network spans more than 220 countries and territories, in which some 100,000 employees provide services for more than 2.5 million customers. As a global network operator that applies standardised processes, 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 and respond specifi cally to customers' wishes. It is not by accident that DHL is the world market leader in international express services.
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 Collect and Return and Medical Express. Customers in high-tech industries in particular use our Collect and Return service, in which goods in need of repair are collected from the end user, taken in for repairs and then returned to the user.
DHL has also increased activities for customers in the Life Sciences & Healthcare sector, as well as improving processes in clinical trials transport and introducing globally applicable standards. Since 2011 we have tracked all Medical Express shipments in real time at our quality control centres. Th is allows us to respond immediately to any disruptions in the process of transporting these ultra-sensitive shipments.
In our Same Day product line, we have expanded our DHL Jetline service to a number of countries, including India. Urgent shipments requiring same-day delivery are collected within one hour of the customer's order and fl own on the next fl ight to reach their destination as soon as possible. Th is is made possible by our comprehensive and fl exible network.
We work constantly on making it as easy as possible for customers to do business with us. Customers can use the new Receiver Paid service to import documents and goods from more than 220 countries and territories, even if they are not registered with us, and thus benefi t from our global presence. Our customer service takes the order directly and the customer pays the invoice upon collecting the shipment at one of our Service Points.
Glossary, page 250
In 2011, we increased the capacity of our intercontinental aircraft fl eet by adding four Boeing 747s and one 777. Th is allows us to off er our customers additional connections between Europe, Asia and America, which improves our service and shortens delivery times.
To meet the rising demand in Asia, we put two additional Boeing 747s into operation during the reporting year to service the regional routes between Hong Kong and Shanghai and between Hong Kong and Tokyo. For routes within Europe, we have purchased eighteen Airbus A300-600s that are currently being converted in Dresden from passenger aircraft to freighters and which will be delivered to us successively until 2013. Th e new aircraft will not only enable us to expand our capacity in response to increasing demand but will also contribute to meeting climate protection goals. Compared with the old aircraft , the new aircraft will use up to 20 % less fuel and emit less CO2. We are thus supporting the Group's sustainability strategy. Another key factor is how aircraft capacity is utilised. Our load factor is approximately 75 % on intercontinental routes, which is again well over the international sector average of approximately 51 %.
DHL has again succeeded in maintaining its leading position in the international express business. As in the previous year, we led the international express market in all regions outside of the Americas. Moreover, we are continuing to expand our presence and infrastructure in growth markets such as Asia, for example through construction of the North Asia Hub in Shanghai, which will go into operation in 2012.
In Europe, we raised our market share in the international express segment to 38 % in 2010, thus remaining the market leader. To meet increasing demand we expanded the loading area at our Leipzig hub. A total of 3,000 new jobs were created in the region. Th e site is becoming increasingly important globally: more than 50 aircraft take off and land in Leipzig each day. Th is testifi es to the success of our focus on the international express business and the improvement of our service quality.
Our focus on the international express business has also continued to prove fruitful in the US market. In 2011, we expanded our global hub in Cincinnati in order to meet rising demand from international customers for time-critical shipments.
In September, we launched a direct route between Cincinnati and Panama. Th e new route cuts one day off delivery time from all locations in the USA, Canada, Asia and the Caribbean islands to Panama and from Panama to all DHL destinations worldwide.
At the end of June 2011 we divested our domestic business in Canada. However, we agreed on a ten-year partnership with TransForce, the new owner. Th is allows us to take optimum advantage of our respective strengths in the international and domestic segments for the benefi t of our customers.
Corporate responsibility, page 87
1 Includes the tdi express product.
2 Country base: be, ch, de, es, fr, ie, it, nl, pl, se, uk.
Source: Market Intelligence 2011, annual reports and desk research.
1 Includes the tdi express product.
2 Country base: br, ca, mx, us.
Source: Market Intelligence 2011, annual reports and desk research.
In Asia, we expanded our leading market position in the international express business by two percentage points to 36 %. We have broadened our service in this important, profi table market with respect to guaranteed pre-9 and pre-12 deliveries: these shipments can now be sent to Europe to three times as many postcodes as before. Additionally, the number of Asian countries from which customers can send this product to the United States has doubled. Demand in the region for the product increased by 67 %.
Following the devastating earthquake in Japan in March 2011, we were able to resume service aft er just 48 hours without endangering the safety of our employees or failing to adhere to any legal requirements. Due to the eff orts of our employees, we had resumed full service quality aft er just one week.
In the EEMEA region (Eastern Europe, the Middle East and Africa), recent market studies indicate that we improved our market share in the international express business by one additional percentage point to 47 % compared with 2009. We have been growing steadily in these markets for many years, and our leading position has been confi rmed at an even higher level.
In 2011 we were faced with special challenges due to political unrest in North Africa and the Middle East. Nonetheless we remained a reliable partner for our customers. In Bahrain, Egypt and Syria we were able to maintain our service. In other countries, disruptions occurred only when we were subject to legal restrictions or were not able to fully ensure the safety of our employees.
We increased revenue substantially in the EXPRESS division with a rise of 5.9 % in 2011 to €11,766 million (previous year: €11,111 million). Th e increase occurred despite the fact that the prior-year fi gure still included revenue of €334 million from businesses that have since been sold: the day-defi nite domestic businesses in the UK and France and the domestic express businesses in China, Canada and Australia. Excluding these sales and negative currency eff ects of €226 million, revenue grew by an encouraging 10.9 %. Th e rise in revenue was mainly attributable to the rise in international time-defi nite shipment volumes.
In the Time Defi nite International (TDI) product line, our customers sent 10.2 % more shipments each day in the reporting year than in the prior year and weight per shipment rose by 6.9 %. Additional revenues from fuel surcharges partially off set the higher fuel costs.
Per-day shipment volumes for the TDI product line again improved signifi cantly in the fourth quarter, rising 11.6 % compared with the fourth quarter of 2010 and even exceeding the annual average. Th e business disposals referred to above resulted in daily shipment volumes increasing by only 1.3 % on the prior-year quarter in the Time Defi nite Domestic (TDD) product line and declining by 11.3 % year-on-year in the Day Defi nite Domestic (DDD) product line.
1 Includes the tdi express product.
2 Country base: au, cn, hk, in, jp, kr, sg, tw. Source: Market Intelligence 2011, annual reports and desk research.
Includes the tdi express product.
2 Country base: ae, ru, tr, za.
1
Source: Market Intelligence 2011, annual reports and desk research.
| €m per day 1 | 2010 adjusted |
2011 | + / – % | Q4 2010 adjusted |
Q4 2011 | + / – % |
|---|---|---|---|---|---|---|
| Time Defi nite International (tdi) |
27.4 | 30.8 | 12.4 | 29.0 | 32.9 | 13.4 |
| Time Defi nite Domestic (tdd) |
5.0 | 5.2 | 4.0 | 5.3 | 5.2 | –1.9 |
| Day Defi nite Domestic (ddd) |
4.8 | 3.6 | –25.0 | 4.2 | 3.5 | –16.7 |
To assure comparability, product revenues were translated at uniform exchange rates. These revenues are also the basis for the weighted calculation of working days.
1
1
| thousands of items per day 1 |
2010 adjusted |
2011 | + / – % | Q4 2010 adjusted |
Q4 2011 | + / – % |
|---|---|---|---|---|---|---|
| Time Defi nite International (tdi) |
490 | 540 | 10.2 | 517 | 577 | 11.6 |
| Time Defi nite Domestic (tdd) |
643 | 684 | 6.4 | 678 | 687 | 1.3 |
| Day Defi nite Domestic (ddd) |
501 | 411 | –18.0 | 468 | 415 | –11.3 |
To assure comparability, product revenues were translated at uniform exchange rates. These revenues are also the basis for the weighted calculation of working days.
In the Europe region we posted revenue of €5,009 million in the reporting year, slightly surpassing last year's level of €4,960 million. Th e fi gure for 2010 still included revenue of €201 million related to the sold day-defi nite domestic businesses in the UK and France. Excluding these sales and positive currency eff ects of €10 million, the increase in revenue amounted to 4.8 % and was primarily due to the considerable rise of 10.3 % in daily shipment volumes in the TDI product line compared with the prior year.
At 12.2 %, growth in daily TDI volumes was even higher in the fourth quarter of 2011 than for the year as a whole and in the preceding quarters.
Revenue in the Americas region surpassed the prior-year amount, growing by 3.1 % to €1,887 million in 2011 (previous year: €1,831 million). Th is fi gure includes the sale of our domestic express business in Canada in the amount of €109 million and negative currency eff ects of €116 million. Excluding these factors, revenue rose markedly in the Americas region with an increase of 15.3 %.
Daily shipment volumes in the TDI product line grew by 12.5 % year-on-year. At 15.1 %, growth in the fourth quarter was even higher, primarily due to our sustained good business trend in the United States.
Th e Asia Pacifi c region continues to drive growth in our express business. Revenue climbed by 10.2 % year-on-year to €3,718 million (previous year: €3,374 million), despite the fact that the prior-year fi gure still included revenue of €24 million from the sold domestic express businesses in China and Australia. Excluding these sales and negative currency eff ects of €50 million, the rise in revenue was an impressive 12.4 % in the reporting year.
Per-day shipment volumes in the TDI product line increased by 10.3 % in 2011 compared with the prior year, with fourth-quarter growth amounting to 10.5 %.
Despite the challenges due to the political unrest in the Middle East, our revenue in the EEMEA region (Eastern Europe, the Middle East and Africa) rose by 5.6 % to €1,284 million, up from €1,216 million in the previous year. Th is fi gure contains negative currency eff ects of €80 million. Excluding these eff ects, growth amounted to 12.2 %. Daily shipment volumes increased on the prior year in all product lines.
EBIT for the EXPRESS division rose from €497 million in 2010 to €927 million in the reporting year, its highest level to date. Return on sales also increased signifi cantly, growing from 4.5 % to 7.9 %. Th e fact that we achieved higher revenues and volumes in all regions and focused keenly on international express services made a major contribution to this improvement. Th e previous year's EBIT had been impacted by restructuring costs in the amount of €288 million, mainly due to the disposals in France and the UK.
EBIT for the fourth quarter of 2011 improved from €218 million to €248 million yearon-year, with return on sales amounting to 7.9 % (previous year: 7.5 %). In the fourth quarter of 2010, earnings had been impacted by restructuring costs of €21 million.
Due to higher income, lower cash outfl ows for restructuring and strict working capital management, operating cash fl ow amounted to €1,146 million in the year under review (previous year: €904 million). In the fourth quarter, operating cash fl ow grew signifi cantly from €251 million to €454 million.
With its wide range of coverage and comprehensive off ering for transporting freight by air, sea or land, DHL is one of the leading global logistics companies. Th e products and services off ered by our Global Forwarding and Freight business units extend from standardised logistics operations to multimodal transport solutions and highly individualised industrial projects. Our workforce of around 42,000 employees co-operates with reliable partners to ensure that our operations run smoothly and are carried out to our customers' satisfaction.
Our business model is very asset-light, as it is based on the brokerage of transport services between our customers and freight carriers. Th is allows us to consolidate shipments to achieve higher volumes and to leverage our purchasing power. Moreover, our wide network coverage enables us to optimise goods routing.
1 Data based solely on export freight tonnes. Source: annual reports, publications and company estimates.
In the Global Forwarding business unit, 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 goods by air or sea every day. Our products and services cover standard transport, multi-link transport chains and specialised solutions such as industrial projects for specifi c sectors, including temperature-controlled and secure shipments. To complement our product off er, we provide additional transport-related services that include handling customs formalities and providing insurance services and warehousing solutions, and the integrated management of customers' end-to-end supply chains aimed at making them more effi cient. Most of our customers come from the Technology, Automotive, Chemicals, Consumer, Retail (including Fashion & Apparel) and Energy sectors. We also provide customised solutions to niche industries such as motor sport.
Aft er high volumes in 2010, the air freight market was weak in the fi rst half of 2011, followed by a signifi cant drop in volumes in the second half of the year. According to IATA, the global airline industry association, worldwide freight tonne kilometres fl own had dropped 5 % by the end of September compared with the end of March. Load factors also declined due to carriers adding new cargo aircraft to their fl eets.
In its air freight business, DHL transports a signifi cant share of the world's technology and manufacturing products. Transport volumes in these sectors were weaker than in the rest of the market during the year under review.
Th e numerous natural disasters and political instability seen in 2011 had only a marginal impact on our air freight business. Our operations in Japan were able to maintain services in the aft ermath of the devastating earthquake of 11 March.
Th e ocean freight market remained on a relatively steady growth path compared with the prior year, although it weakened towards the end of the year. Despite slower market growth, new capacities were added, which led to a drop in freight rates. Our volumes in the full-container-load (FCL) market were on par with the prior year though somewhat behind the market pace, owing to strategic customer portfolio decisions at the end of 2010, which led to a major one-time loss in volume. We did make signifi cant gains in our less-than-container-load (LCL) business.
Th e European road freight market showed growth of 3 % to 5 % in 2011, driven by increases in volumes and prices. DHL's Freight business unit will continue to be number two in the European market. With some 12,000 employees around the world, we have a strong footprint both inside and outside Germany. In 2011, we outperformed the overall market in terms of growth. We are currently developing new products and services to further strengthen our market position.
Th e GLOBAL FORWARDING, FREIGHT division increased revenue in the reporting year by 4.9 % to €15,044 million (previous year: €14,341 million). Excluding negative currency eff ects of €146 million, revenue growth was 5.9 %. Overall, our freight forwarding business performed well and was profi table despite noticeable weakening in the market. Moreover, we restructured our Global Forwarding business unit organisation in the second half of the year, by changing the structure of our global and regional headquarters. Th is adjustment resulted in non-recurring costs of €16 million in the fourth quarter.
1 Twenty-foot equivalent units. At the beginning of 2011 we adapted our systems for recording transport volumes, which also resulted in a slight retroactive adjustment.
Source: annual reports, publications and company estimates.
1 Country base: total for 19 European countries, excluding bulk and specialties transport. Source: mrsc mi freight reports 2008 – 2011, Eurostat 2010. 3.4 % db Schenker
In the Global Forwarding business unit, revenue increased by 3.4 % from €10,725 million to €11,094 million. Th e increase was 5.2 % aft er adjustment for negative currency eff ects of €193 million. We were able to improve gross profi ts by 7.4 % to €2,468 million in the reporting year (previous year: €2,298 million).
In fi nancial year 2011, gross profi ts in the air and ocean freight business continued their positive trend, although revenues and volumes came under pressure in the second half of the year. Fuel prices remained high whilst freight rates declined. Overall, we were able to stabilise our margins at a high level.
Our air freight volumes were down slightly by 1.3 % compared with the prior year. Full-year revenue increased 2.6 %. In the fourth quarter revenue was down 4.3 % as a result of a considerable cooling in the air freight market in the second half of the year and because the normally high seasonal business did not materialise in the fourth quarter. Consequently, our fourth-quarter volumes were 6.8 % below the prior year. Nevertheless, we increased full-year gross profi t by 6.3 %. We benefi ted from the improved purchasing conditions that resulted from greater market capacities.
| €m | ||||||
|---|---|---|---|---|---|---|
| 2010 | 2011 | + / – % | Q4 2010 | Q4 2011 | + / – % | |
| Air freight | 5,431 | 5,573 | 2.6 | 1,500 | 1,436 | – 4.3 |
| Ocean freight | 3,446 | 3,544 | 2.8 | 925 | 895 | –3.2 |
| Other | 1,848 | 1,977 | 7.0 | 489 | 576 | 17.8 |
| Total | 10,725 | 11,094 | 3.4 | 2,914 | 2,907 | – 0.2 |
| thousands | 2010 adjusted 1 |
2011 | + / – % | Q4 2010 adjusted 1 |
Q4 2011 | + / – % | |
|---|---|---|---|---|---|---|---|
| Air freight | tonnes | 4,435 | 4,378 | –1.3 | 1,185 | 1,105 | – 6.8 |
| of which exports | tonnes | 2,458 | 2,447 | – 0.4 | 656 | 624 | – 4.9 |
| Ocean freight | teu s 2 | 2,728 | 2,724 | – 0.1 | 681 | 682 | 0.1 |
1 At the beginning of 2011 we adapted our systems for recording transport volumes, which also resulted in a slight retroactive adjustment. 2 Twenty-foot equivalent units.
In ocean freight, we maintained our volumes in the reporting year despite the weak economic trend. We also considerably improved our margins. Revenue was up year-onyear by 2.8 %. We saw a year-on-year decline in revenue of 3.2 % in the fourth quarter, which was attributable to the seasonal price surcharges that were applied in the previous year. Nevertheless, we increased full-year gross profi t by 16.0 %, primarily because we focused on selective growth in attractive areas of business.
In our industrial project business (in table A.54 reported as part of Other), revenue and gross profi t performed much better in the second half of the year, as expected, aft er a subdued fi rst half. Revenue and gross profi t saw encouraging growth compared with the prior year.
Th e Freight business unit generated revenue of €4,088 million in 2011, exceeding the previous year's fi gure of €3,735 million by 9.5 %. Th is includes positive currency eff ects of €47 million. Excluding these eff ects revenue exceeded the previous year's fi gure by 8.2 %. Revenue increases were seen primarily in Germany, the Nordic countries and Eastern Europe. In the United States, we acquired Standard Forwarding in June 2011 with an eye towards developing our overland transport business outside Europe. Th is business generated around 1 % of the business unit's revenue growth. Despite persistent pressure on margins because peak season business was more pronounced than in the prior year, gross profi t was €1,054 million, exceeding the prior-year fi gure by 6.4 %. Overall we increased our productivity on account of strict cost management, increased business and a stable workforce, amongst other things.
Due to high gross profi t margins and strict cost management, EBIT in the GLOBAL FORWARDING, FREIGHT division was up signifi cantly from €383 million to €429 million. Th is increase refl ects a gain of 12.0 %. Th e prior-year EBIT fi gure contained restructuring costs of €7 million. Return on sales amounted to 2.9 % in the reporting year (previous year: 2.7 %). In the fourth quarter EBIT declined by 3.8 % from €131 million to €126 million. Th e prior-year fi gure contained restructuring costs of €1 million. Fourth-quarter earnings were impacted primarily by the structural adjustments of €16 million described above; return on sales therefore declined from 3.4 % to 3.2 %.
Despite revenue growth, net working capital was signifi cantly below the prior year, due to improved receivables management especially in the fourth quarter. Th us, we improved operating cash fl ow signifi cantly in the reporting year by €413 million to €657 million (previous year: €244 million).
Th e SUPPLY CHAIN division comprises the two business units of 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 information solutions, the management of companies' information and communication processes.
In the Supply Chain business, we provide customers in many industry sectors with logistics services along the entire supply chain. From planning, sourcing, production, storage and delivery to returns logistics and value-added services, customers rely on us to ensure a smooth logistics fl ow.
Glossary, page 250
We off er warehousing, distribution, managed transport and value-added services as well as business process outsourcing, supply chain management and consulting solutions. We ensure that our customers' products and information reach their markets quickly and effi ciently, thus securing them competitive advantages. With local insight and global scale, we serve customers in more than 60 countries and support them in optimising their complex processes.
In order to strengthen the focus on our core business of contract logistics, in April 2011 we disposed of Exel Transportation Services Group (ETS), a provider of freight brokerage and intermodal services in North America.
Our Supply Chain business provides expert solutions in six focus sectors: Consumer, Retail, Technology, Life Sciences & Healthcare, Automotive and Energy. In 2011, we aligned our global management structure to enable the development and implementation of sector-specifi c supply chain solutions at a cross-regional level. In addition, each sector head is supported by a team of dedicated specialists who handle the customer projects and ensure implementation of global sector solutions on a regional level.
Consumer and Retail are two of our largest sectors. Both of these off er major growth potential for the division, since we manage the supply chains all the way from the source of supply to the end customer. 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 valueadded services.
Customers in the Technology sector require fast, fl exible and effi cient supply chains, and demand for integrated product and service logistics is increasing. Our off erings portfolio 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, which are being developed across all DHL divisions.
We are also increasingly providing 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 growing steadily and quality control at the highest possible level is a must for all our customers. In the reporting year we acquired Eurodifarm, a specialist in the controlled-temperature distribution of pharmaceutical and diagnostic products. Th e purchase strengthens our market leadership in Italy in this sector.
Th e Automotive industry is one of our truly global sectors. Production is continuing to shift to emerging markets such as China, India and Brazil, in which we have a strong presence. For our inbound-to-manufacturing, aftermarket logistics and lead logistics provider solutions, the key factor is our ability to off er a high degree of global fl exibility and reliability whilst lowering costs.
Th e fast-growing Energy sector is another market in which the DHL divisions provide integrated logistics solutions for both the build and run phases of major projects. With our Maintenance, Repair & Operation services we off er streamlined supply chain solutions that can reduce costs by 20 % whilst increasing maintenance productivity by up to 25 %.
Glossary, page 250
Williams Lea specialises in outsourced corporate communication and information 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.
In July 2011, we acquired Tag Group, an international provider of marketing execution and production services. Th e acquisition expands our fast-growing Marketing Solutions business.
DHL is the global market leader in contract logistics with a market share of 8.3 % (2010). In this highly fragmented market, the top ten players account for only about 23 % of the overall market, the size of which is estimated to be €147 billion. We are the regional market leader in our key regions of North America, Europe and Asia Pacifi c and also have a very strong position in rapidly growing markets such as Brazil, India, China and Mexico. 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 and marketing production. 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 in the Williams Lea business unit.
As at 1 July 2011, we transferred the Home Delivery business in Germany to the MAIL division. Th e prior-year segment reporting fi gures were adjusted accordingly.
Th e principal objective in the SUPPLY CHAIN division was to achieve profi table growth from a leaner organisation with increased revenues and improved operational effi ciency. With this in mind we streamlined organisational processes and made a number of portfolio changes that impacted the year-on-year revenue and earnings trend. Th ese included the sale of Exel Transportation Services (ETS) and the acquisitions of Eurodifarm and Tag Group.
Source: Transport Intelligence; fi gures estimated except for dhl, ceva, Kuehne + Nagel; exchange rates: as at April 2011.
Revenue increased by 1.2 % year-on-year to €13,223 million in fi nancial year 2011 (previous year: €13,061 million). Th e sale of ETS and negative currency eff ects reduced revenue growth by €683 million and the acquisitions of Eurodifarm and Tag increased revenue by €103 million. Excluding these major eff ects, revenue grew by 5.7 % with the Life Sciences & Healthcare and Automotive sectors providing the largest increase.
Fourth-quarter revenue increased by 1.3 % from €3,502 million to €3,548 million. Excluding the portfolio changes and currency eff ects mentioned above, revenue growth was 4.3 %.
Revenue in the Supply Chain business unit totalled €11,999 million in the reporting year, much in line with the prior-year level of €11,997 million. Growth amounted to 5.2 % excluding the ETS disposal, the Eurodifarm acquisition and negative currency eff ects. Revenue from our 19 key global customers grew by 6.7 % to represent almost 16 % of total revenue in the Supply Chain business.
In the Americas region, the sale of ETS reduced the growth achieved in our focus sectors with the Consumer sector seeing the largest impact. Good progress was made in the Life Sciences & Healthcare and Energy sectors due to increased business activity and additional revenue from new business.
Th e Asia Pacifi c region continued to achieve the highest level of regional revenue growth, particularly in Australia, China, Th ailand and India. In Australia we gained new business in the Life Sciences & Healthcare sector and in China we benefi ted from a steady rise in domestic demand. Operations in those Japanese areas aff ected by the earthquake in March 2011 returned to full capacity.
Revenue also improved due to increased volumes and new business gains in the UK, Africa and Eastern Europe. We continued to expand the Life Sciences & Healthcare sector, as evidenced by higher revenue in the UK businesses and the acquisition of Eurodifarm in Italy.
Williams Lea revenue increased by 15.3 % in 2011 to €1,225 million (previous year: €1,062 million). Excluding the revenue generated by the Tag acquisition and adverse currency eff ects, growth was 11.8 %. Most of this growth came from the Marketing Solutions business in the Americas and new business in the European banking sector.
In the Supply Chain business unit we concluded additional contracts worth approximately €1.3 billion in annualised revenue with both new and existing customers. Th is represents around 1,200 contracts with an average deal size of just over €1 million, an 8 % increase over 2010. We increased new business in all of our focus sectors and furthered our "above-the-wing" product off ering in Airline Business Solutions through the new Qantas contract in Australia. Th e annualised contract renewal rate remained at the high level achieved in 2010.
Williams Lea continued to win new business, including a number of sizeable Marketing Solutions contracts.
EBIT for the SUPPLY CHAIN division improved signifi cantly in 2011 with a rise of 56.7 % to €362 million (previous year: €231 million). Th e increase included a gain on the disposal of ETS amounting to €23 million, including transaction costs. Th e prioryear fi gure contained restructuring costs of €41 million. Th e EBIT margin continued to improve, rising from 1.8 % to 2.7 % primarily due to an increase in business activity and continued focus on operating improvement and cost reduction initiatives.
Fourth-quarter EBIT improved from €46 million in the prior year to €73 million. Th e EBIT margin for the quarter was 2.1 % (previous year: 1.3 %).
Operating cash fl ow was €394 million for 2011, an increase of €51 million over the €343 million achieved in the previous year. Higher earnings and lower cash outfl ows for restructuring were partly off set by an increase in working capital.
As a global mail and logistics provider, our business is all about people. Our company rests on our employees, who possess a wide range of qualifi cations and perform a great variety of functions. With their talents, skills and commitment, these individuals make an important contribution every day to our becoming the provider of choice for our customers and the investment of choice for our shareholders. Th is is how we realise our Strategy 2015 and ensure our sustained economic success.
As at 31 December 2011, we employed 423,502 full-time equivalents in more than 220 countries and territories and therefore 1.1 % more than in the previous year. Staff costs rose slightly also as a result by 0.7 % to €16,730 million (previous year: €16,609 million).
a.60 Number of employees
| 2010 | 2011 | + / – % | |
|---|---|---|---|
| At year-end | |||
| Headcount 1 | 467,088 | 471,654 | 1.0 |
| Full-time equivalents 2 | 418,946 | 423,502 | 1.1 |
| of which mail 3 | 146,005 | 147,487 | 1.0 |
| express | 87,536 | 84,440 | –3.5 |
| global forwarding, freight | 41,359 | 41,881 | 1.3 |
| supply chain 3 | 130,710 | 136,810 | 4.7 |
| Corporate Center / Other | 13,336 | 12,884 | –3.4 |
| of which Germany | 165,781 | 168,108 | 1.4 |
| Europe (excluding Germany) 3 | 108,241 | 108,208 | 0.0 |
| Americas | 68,268 | 70,291 | 3.0 |
| Asia Pacifi c | 61,239 | 61,112 | – 0.2 |
| Other regions 3 | 15,417 | 15,783 | 2.4 |
| Average for the year | |||
| Headcount | 464,471 | 467,188 | 0.6 |
| of which hourly workers and salaried employees | 413,830 | 418,375 | 1.1 |
| Civil servants | 46,866 | 44,421 | – 5.2 |
| Trainees | 3,775 | 4,392 | 16.3 |
| Full-time equivalents | 421,274 | 423,348 | 0.5 |
1 Including trainees.
2 Excluding trainees.
3 Adjusted.
In the MAIL division, the number of employees rose slightly by 1.0 % to 147,487. New personnel were hired particularly in the Parcel Germany business unit, which benefi ted from strong growth in e-commerce. Th e eff ect of the new hires was partially off set by the discontinuation of our bulk mail business in the Netherlands.
1 Full-time equivalents as at 31 December.
In the EXPRESS division, the number of employees dropped by 3.5 % to 84,440 (previous year: 87,536) because we sold our domestic express businesses in Canada, China and Australia. Excluding the eff ects of these disposals, we employed slightly more people than in the prior year, primarily to handle the heavy volumes.
Th e number of full-time equivalents in the GLOBAL FORWARDING, FREIGHT division went up by 1.3 % to 41,881 due to our purchase of Standard Forwarding in the USA.
Th e SUPPLY CHAIN division increased its staff level by 4.7 % to 136,810 due to the acquisition of Tag Group, an international marketing service provider, and to growth in new and existing business in Asia Pacifi c, the Americas and the UK.
At Corporate Center/Other, the number of employees declined by 3.4 % to 12,884. Productivity was further increased in indirect functions such as IT and real estate.
We continue to employ most of our personnel in Germany, where the number of employees rose slightly, as in the Americas and the Other regions. Employee numbers dropped slightly in the Asia Pacifi c region, due above all to the sale of our domestic express business in China.
Our current planning calls for increasing slightly the number of employees in fi nancial year 2012.
Quality personnel management is a core element of sustainable company development. Our executives therefore make a crucial contribution to implementing our Group strategy. However, only when they align their personnel management styles towards our guiding principle of "respect and results" are they able to serve as role models. We have defi ned the following fi ve competencies to ensure good management. Executives should:
To further these objectives, we have developed initiatives aimed at promoting a comprehensive leadership culture across the entire Group. Executives attend multi-day workshops designed to help them refl ect on and fi nd ways to improve their own conduct. We are already implementing this training initiative for upper and middle management with additional levels to follow.
Our Group-wide employee opinion survey is the main tool we use for measuring the advances we have made in implementing Group strategy and how executive conduct has progressed. We conducted the survey for the fi ft h time in 2011 with 80 % of all employees participating (previous year: 79 %). Th e fi ndings improved across all survey questions and key performance indicators for the third year in a row, thus indicating a stable upwards trend.
Th e highest scores were awarded to the categories of "customer promise" (80 %; previous year: 77 %), "co-operation" (77 %; previous year: 74 %) and "working conditions" (76 %; previous year: 73 %). Th e category "strategy" registered one of the highest growth rates at 70 %, an improvement of 6 percentage points on the prior year. We also made progress in the area of "active leadership", which increased from 63 % in the previous year to 67 %. Th is parameter will fl ow directly into senior management evaluations. Th e ratings for measures taken as a result of the preceding survey also improved (2011: 59 %;
previous year: 53 %). Compared with other companies, this is a good result. Nevertheless, we would like to continue to improve in 2012 and increase the sustainability of our follow-up measures.
Th e main task of quality personnel services is to promote the development and growth of our employees. In 2011, over 80,000 of our employees around the world took advantage of the more than 3,500 courses available through mylearningworld.net, our online training platform. We cultivate selected top performers by off ering them the opportunity to obtain an MBA or to participate in special programmes to promote talent. Our goal is to fi ll more management positions from our own ranks and we encourage our employees to gather experience in diff erent divisions.
Our internal placement rate for upper and middle management fell slightly to 85.2 % in the reporting year, down from 88.9 % in the previous year. In 2011, 11.7 % of internal job placements involving these management positions were cross-divisional (previous year: 15.3 %; amongst upper management: 24.8 %). To improve comparability, we expanded the basis for calculating cross-divisional moves to include both upper and middle manage ment.
Our divisions also off er programmes designed to meet their own specifi c needs. In the MAIL division, the focal point of our personnel development eff orts is shift ing from participation in seminars to on-the-job training. More than 20,000 employees received sector-specifi c training during the reporting year.
In the EXPRESS division, all employees completed the basic course of the extensive Certifi ed International Specialist training programme. All will participate in further specialised training.
In the GLOBAL FORWARDING, FREIGHT division, more than 26,000 employees (62 %) in this division have completed at least one e-learning course.
In the SUPPLY CHAIN division, around 3,500 sales employees were trained in special sales skills. In addition, more than 1,500 managers participated in our Leadership Enrichment Programme during the reporting year.
In many countries, the demographics are undergoing a notable shift and thus directly aff ect the composition of the working population. Our employment structure is also being increasingly impacted, presenting us with both a challenge and an opportunity for forward-looking personnel work. To analyse the changing situation and provide an early warning system, we have developed an instrument known as Strategic Workforce Management, which supplies answers based on facts to questions such as the risks related to employees' ageing and to workforce capacity, to succession planning, transfer options and need-based adaptation of training programmes. Now that we have successfully completed three test projects in Germany and Mexico, Strategic Workforce Management will be carried over to other countries.
In October 2011, Deutsche Post AG and the trade unions agreed upon a trendsetting model for age-based working solutions. Th e goal is to enable older employees to work actively until they reach the legal retirement age, allowing us to retain their knowledge and experience for the business.
Th e Generations Pact supplements the partial retirement programme available under German law. During the active working phase, our employees can invest in socalled working-time accounts and use this investment immediately before they enter retirement. We have also set up a demographic fund to increase the payments received by employees during the partial retirement phase.
Th e Generations Pact is also intentionally designed to improve employment opportunities for young people. More than 1,000 trainees will be hired in 2012 upon completing their training and around 2,350 temporary employees have already received off ers of permanent employment at the end of 2011 / at the beginning of 2012.
We think of the diversity of our workforce as an opportunity and a competitive edge. Th at is why Diversity Management is an established part of our long-term personnel strategy. Th rough a host of activities, we intend to identify the diversity that is alive and well in our Group, to integrate employees and to win over applicants. Today, we are already a multicultural company; employees from more than 150 countries work for us in Germany alone.
We are committed to ensuring that people with a disability enjoy equal treatment when it comes to taking part in working life. Th e average annual employment rate of people with a disability is 8.3 % at Deutsche Post AG (as at 27 January 2012), well above the national average in the German private sector of 3.9 % in 2009 (source: Bundesagentur für Arbeit (German federal employment agency)). Furthermore, we again held a competition to design barrier-free workplaces during the year under review.
In 2011, our Diversity Management was awarded the German Diversity Prize sponsored by Henkel, McKinsey and Wirtschaft swoche magazine in the category of "most diverse employer".
We are an equal opportunity employer. In 2011, we again placed particular emphasis on increasing the share of women in management positions. We consulted specialists and executives in various divisions and regions to identify barriers to advancement and develop growth initiatives for female talent. In connection with a joint declaration by all DAX 30 companies, we have made it our goal to fi ll 25 % to 30 % of all management positions becoming vacant with women. Currently, the share of women in executive positions in the Group is 17.6 % worldwide (previous year: 14.6 % amongst top executives; 16.9 % amongst all management positions). In order to ensure uniform presentation of these fi gures, the basis for calculation was adjusted and now includes upper and middle management .
In addition, since 2010 the Group has been participating in an EU-funded project called "INNOVATIVE! Leading together with women". Th e project aims to create awareness amongst executives and employees, encourage them to participate and reinforce the ability of highly qualifi ed women to further their careers.
1 Based on upper and middle management.
| Headcount | ||
|---|---|---|
| 2010 | 2011 | |
| State-regulated parental leave | 2,036 | 1,809 |
| Unpaid holiday for family reasons | 2,419 | 2,286 |
| Part-time employees 2 | 63,126 | 65,322 |
| Share of part-time employees (%) | 36.9 | 37.5 |
1 Includes employees of Deutsche Post ag.
2 Excluding in partial retirement in the release phase.
We hired approximately 1,950 trainees and students in Germany during the reporting year. Around 1,000 young people were off ered an employment contract aft er completing their training. Since 2008, more than 3,500 such trainees have become permanent, full-time employees. We foster the top 5 % of our trainees in Germany in our Top-Azubi talent programme. Th ese trainees are off ered special seminars and permanent contracts upon successfully completing their training. Furthermore, we give young people whose career prospects seem bleak a chance of a traineeship as part of our Perspektive Gelb job entrance programme. In 2011, we took on nearly 80 % of the approximately 120 participants in the class of 2010.
We are increasingly making use of the internet to reach potential young applicants. Each year, we publish more than 12,000 job openings online and receive an average of over 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.
Our Group-wide Graduate Opportunities Worldwide (GROW) programme is aimed at attracting suitable young people for specialist and leadership positions. We hired 26 college and 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 in addition to the traditional internship. It complements our partnership with AIESEC, the international student-run organisation.
To maintain and promote the health and safety of our workforce, 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. Targeted initiatives and activities are implemented to improve our employees' health. Our Health Work Group is an example of one of these initiatives. At 7.4 %, we managed to maintain the illness rate for 2011 in Germany at the prior-year level.
As a transport company, road safety is a central part of our preventative eff orts in the area of occupational safety. We implement traffi c safety measures including appropriate online training on a Group-wide basis, we co-operate with domestic and international traffi c safety organisations and we develop informational materials for accident prevention.
Number of trainees, annual average: 4,392.
1
All organisational units in Germany.
1
Our corporate health management system received yet more awards in 2011: the European Commission and the BKK Bundesverband (German association of company health insurance funds) presented us with the German Corporate Health Award. We received the Corporate Health Award from the Handelsblatt business newspaper and EuPD Research, a market research institute, 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 once again in the reporting year.
| 2010 | 2011 4 | |
|---|---|---|
| Number of workplace accidents 2 | 17,374 3 | 12,829 |
| Accident rate (number of accidents per 1,000 employees per year) | 100 | 74 |
| Number of working days lost due to accidents (calendar days) | 377,889 3 | 320,613 |
| Working days lost per accident | 21.8 | 25.0 |
| Number of fatalities due to workplace accidents | 0 | 2 |
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 2 February 2012, accident reports possible until 1 March.
Suggestions for improvements coming from our employees help to make our Group more economical and improve our ability to compete in the market. In 2011, Deutsches Institut für Ideen- und Innovationsmanagement GmbH (Idea Management Centre) honoured us as the "company with the best idea management in Germany". We received the DeutscherIdeenPreis™ (German idea award) from Deutsches Institut für Betriebswirtschaft (German institute for business management) as the top-ranking corporation in the service, commerce and education sector. We also made it to the fi nal round of the Innovationspreis der Deutschen Wirtschaft (German business award for innovation). In addition to Germany, we have thus far introduced our successful overall concept for idea management to 27 organisational units worldwide and made it available in 16 languages. During the year under review, we held a Group-wide ideas competition on the topic of "simplifi cation". Some 10,000 suggestions were received, many of which were used to make progress in this core element of our Strategy 2015. Our successful idea management proves just how much potential can be unleashed in a business like logistics when employees play an active role.
| 2010 | 2011 | ||
|---|---|---|---|
| Savings per employee | € | 470.83 | 496.43 |
| Suggestions for improvements | number | 227,803 | 214,337 |
| Accepted suggestions for improvements | number | 183,323 | 174,680 |
| Benefi t | €m | 219.5 | 234.1 |
| Cost 1 | €m | 9.3 | 8.4 |
Based in part on forecasts.
1
Corporate responsibility is an integral part of our Strategy 2015. Th erefore, we put our experience and global presence to good use to help people and the environment, striking a balance between our economic and social responsibility goals. "Living responsibility" is our motto for the Group's corporate responsibility initiatives. We focus on protecting the environment (GoGreen), helping to manage disasters (GoHelp) and promoting education (GoTeach). We also support the voluntary work of our employees. In 2011, we called on our workforce around the world for the fi rst time to take part in Global Volunteer Day. More than 50,000 staff members in over 160 countries volunteered their time to help children, young people and senior citizens. Our Living Responsibility Fund is used to support fi nancially the local community projects for which our employees volunteer.
In February 2011 we invited representatives from industry, politics, the media and society to Corporate Responsibility Day for the fi rst time and discussed the prospects for corporate responsibility with them. We shall continue this dialogue and ask the stakeholders, for example, what we can do to raise our commitment.
In 2011 our performance in the area of corporate responsibility again received high ratings from independent qualifi ed agencies and institutes. Sustainable Asset Management gave us a rating of 87 out of 100 points (previous year: 85 points). Th e average score for other transport and logistics companies was 59 points. Th e DJSI World and Europe indices as well as FTSE4Good again confi rmed our company's membership and we continue to be listed by the French rating agency Vigeo in the Advanced Sustainability Performance Index Eurozone. With a score of 99 out of 100 points (previous year: 97) from the Carbon Disclosure Project, we have taken a leading position worldwide in the Carbon Disclosure Leadership Index (CDLI).
In our Corporate Responsibility Report, which will be published on our website on 3 May 2012, we shall provide additional information and key performance indicators on corporate responsibility that are not included in the Group Management Report.
We aim to minimise the impact of our business operations on the environment and, as early as 2008, we were the fi rst logistics company ever to set a quantifi able CO2 effi ciency target. By the year 2020 we intend to improve the CO2 effi ciency of our own operations and those of our subcontractors by 30 % compared with 2007. In the process we shall reduce our operating costs and open up new market opportunities.
Strategic focus, page 110 ff.
dp-dhl.com/en/responsibility.html
ghgprotocol.org/standards
1 Scopes 1 and 2.
dp-dhl.com/en/responsibility/ environment.html
We account for and quantify our CO2 emissions based on the principles of the internationally recognised ghg Protocol Corporate Standard. In our European air freight business, this also includes the requirements of the European Union Emissions Trading System (EU ETS). In order to maintain consistency following the integration of aviation into the EU ETS, we changed the distinction between our own and subcontracted air freight transports (Scope 1 and Scope 3) to comply with these rules and adjusted the prior-year fi gures accordingly.
Th e GHG Protocol distinguishes between direct carbon 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 transport subcontractors (Scope 3). In the reporting year we expect Scope 3 to be approximately 80 % of the total. More detailed information will be provided in the Corporate Responsibility Report.
In 2011, our Scope 1 and Scope 2 carbon emissions were approximately 5.3 million tonnes (previous year, adjusted: 5.0 million tonnes). Th ese CO2 emissions resulted from our direct use of roughly 490 million litres of liquid fuel (diesel, petrol etc.), 20 million kilowatt hours of gaseous fuels (natural gas, biogas) as well as 1,020 million kilograms (aft er redefi nition; corresponds to 1,275 million litres) of kerosene and 3,180 million kilowatt hours of energy (electricity, green electricity, natural gas etc.) in our facilities. Th e rise in our Scope 1 carbon emissions was mainly due to the increased demand for air transport, which we operate ourselves to a large extent.
Our GoGreen programme consists of fi ve essential action areas. We made substantial progress in all areas in the reporting year.
Deutsche Post DHL Annual Report 2011
We leverage our global presence, logistics expertise and the commitment of our employees for our disaster management initiatives. We engage in three areas to help people in disaster-prone regions: disaster preparedness, disaster response and recovery.
Th e Get Airports Ready for Disaster (GARD) programme prepares local authorities and airport staff for possible disasters. Our DHL Disaster Response Teams (DRT s) provide support on the ground when disaster strikes. Th e Group's We Help Each Other (WHEO) fund enables employees to donate money for colleagues aff ected by a natural disaster. We provide the support as part of the GARD and DRT programmes in cooperation with the United Nations (UN), free of charge.
In the year under review, we ran GARD training programmes together with the UN Development Programme in Bangladesh and Indonesia. Further training programmes are planned in 2012 in Asia and South America.
Our DRT s are backed by a pool of more than 400 trained employees around the world who are ready to deploy in an emergency within 72 hours. In 2011 our teams deployed twice: for the earthquake in New Zealand and the fl oods in El Salvador.
In 2011 around 835 employees from the United States, Japan, Poland, Th ailand and New Zealand, amongst others, received fi nancial assistance from the WHEO fund.
dp-dhl.com/en/responsibility/ society.html
dp-dhl.com/en/responsibility/society/ global_partnership_with_teach_ for_all.html
dp-dhl.com/en/responsibility/society/ global_partnership_with_sos_ childrens_villages.html
a.69 Procurement expenses, 2011
As one of the world's largest employers with a high demand for qualifi ed employees, Deutsche Post DHL promotes better education and educational systems. We have partnered with the organisations Teach For All and sos Children's Villages since 2010. Our co-operation with these organisations is personifi ed primarily by the voluntary commitment of our employees.
In the year under review, the Group centrally purchased goods and services having a total value of approximately €9.1 billion (previous year: €8.5 billion). As in previous years, this fi gure does not include transport services, which are generally procured separately by the divisions. However, the divisions received support from Procurement, which was greater in 2011 than in previous years. Procurement works continuously to reduce the Group's expenditures and this includes providing support to the divisions to make important investments cost-eff ectively.
Corporate Procurement, for instance, has been providing support in the area of aviation since 2011, including involvement in the purchase of 18 new Airbus A300-600 aircraft . A further example is a master agreement for aircraft fuel, into which the department entered for European Air Transport, an express business and a Group subsidiary operating out of the hub in Leipzig, Germany. Th e agreement reduces annual costs by more than €1 million; the fuel can be called off as needed and fewer fuel transports increase energy effi ciency.
Th e procurement team supported the MAIL division in the reporting year with the selection and order placement of new sorting solutions. Capacity and processing speed increased by around 40 % as a result during the testing phase.
Procurement again focused on evaluating key suppliers and developing the Group's relationships with them. Th e new fi nancing and payment model which we have been testing in co-operation with a bank since 2010 in Germany and other European countries, was expanded in the reporting year. Th e Group benefi ts from this new model because it allows the divisions to optimise their working capital. Our suppliers also benefi t as the model opens up advantageous fi nancing options.
Procurement is a centralised function in the Group. Th e heads of Global Sourcing and their 14 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.
Procurement is an internal service department, which we reorganised to some extent in the reporting year. We reduced the number of procurement regions from fi ve to four and we now take greater advantage of regional co-operations. In our Global Sourcing departments, we consolidated product categories and thereby leveraged synergies. Furthermore, a category manager was named for "new procurement services".
Th ese new services also include procurement services provided by our operating divisions for customers with increasing support from Procurement. We off er integrated procurement and logistics services, especially in our supply chain business. In 2011, we expanded these services in all of our procurement regions.
A "green team" of staff members from a number of regions and product categories makes sure that the purchasing decisions made take account of environmental aspects.
In 2011, we completed a comprehensive analysis to determine how much of the electricity consumed by the Group stems from renewable energy sources. Th e result was around 40 % worldwide. Th e goal is to increase this fi gure considerably. Th e project team has developed some initial national-level initiatives.
We had already introduced a global paper policy in 2010, stipulating that priority was given to purchasing and using recycled paper. It applies to purchases of paper, paper products, printed materials and packaging materials, and any external service provider making purchases for the Group must also observe this policy. During the past years, the share of recycled paper in use by the Group increased continuously. Th e Group has made a commitment to use paper and paper products as effi ciently and sparingly as possible.
Procurement also supports the divisions with recycling projects. For example, waste recycling was optimised at 15 Global Mail locations in the Americas region.
Continuous modernisation of our vehicle fl eet also plays an important role in protecting the environment. For example, 1,300 new low-emission Mercedes-Benz Sprinters were utilised for parcel delivery. Th e 3.5-tonne vans run on low-emission Euro-5 engines. Most of the vehicles purchased in the reporting year contribute to lower emissions, including 250 lorries from Iveco, Mercedes-Benz, MAN and DAF. 154 new vehicles which emit fewer pollutants were added to our express fl eet in Mexico.
We are testing vehicles with environmentally friendly drive systems in a number of test projects. Of particular note are the electric vehicles being tested for mail and parcel delivery in Germany. A total of six electric scooters and 53 electric-powered vans are currently being evaluated. In the greater Berlin area, ten electric urban delivery vehicles were in operation for testing in the reporting year. We are also testing 12 Renault Kangoos, 18 Mercedes-Benz Vito E-Cells and 13 Iveco Electric Dailys. Our delivery vehicle fl eet in New York's Manhattan was converted to hybrid and electric vans. As a result we anticipate our CO2 emissions will be reduced by half compared with conventional vehicles.
In the lorry category, we began in the reporting year to test the next generation of Mercedes-Benz Atego hybrid vehicles. DHL Express trialled the SmartTruck for the fi rst time outside Germany in the megacity of Bangalore in southern India. Th ese trials were preceded by successful test runs in Berlin and the Cologne/Bonn area.
Th e use of IT applications to procure goods and services more effi ciently again increased in 2011. Our GeT electronic ordering system, for instance, was used mainly in Germany, the United States, Mexico and several other European countries. Use of the system increased over the year and it was prepared for launch in Asia, where it is scheduled to be introduced in 2012.
We also use e-sourcing to make our procurement processes more effi cient and transparent. Th is allows us to handle all the steps in the tender process electronically. To foster adoption of the system, we set up a help desk in eight languages to assist suppliers. Th e system, administered by a central team, is now also being used in other countries.
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.
We operate a fi rst-class, effi cient and environmentally friendly nationwide transport and delivery network in Germany consisting of 82 mail centres and 33 parcel centres that process 65 million letters and some 2.9 million parcels each working day. In the reporting year, we slightly increased the high level of automation in our mail business, which is over 90 %.
Our customers rate the quality of our services based on whether posted items reach their destinations quickly, reliably and undamaged. We again achieved excellent results in letter transit times within Germany: according to surveys conducted by Quotas, a quality research institute, well over 95 % 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 order to ensure this level of quality in the long term, our quality management is based on a system that is certifi ed each year by TÜV Nord, a recognised certifi cation and testing organisation.
In the parcel business, we nearly achieved the previous year's very good transit time results. Just under 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 Co-operation. According to EU specifi cations, 85 % of all cross-border letters posted within the EU must be delivered within three days of posting. We exceeded this specifi cation signifi cantly with a rate of 96 %.
Our E-Postbrief product meets high data protection and security standards as described in the risk report. Furthermore, Kommission für Jugendmedienschutz der Landesmedienanstalten (German Commission for the Protection of Minors in the Media) certifi ed the product's age-control mechanism with the highest possible level of quality.
Due to our co-operation with retailers, our approximately 20,000 retail outlets and sales points have increased average weekly opening times from 49 to 50 hours. Surveys of our retail outlet customers are conducted annually by the TNS Infratest Kundenmonitor Deutschland, the largest consumer satisfaction study in Germany, to determine their level of satisfaction with our services. Our service quality has been receiving top marks for years. In the reporting year, we maintained our high marks from the previous year: more than 90 % of customers were served within three minutes. Overall, impartial mystery shoppers tested our retail outlets approximately 30,000 times over the year for the study using a method certifi ed by TÜV Rheinland.
A central characteristic of the quality of our products is also environmental protection. In Germany, we employ a TÜV Nord-certifi ed environmental management system in our mail and parcel businesses. As part of our GoGreen initiative, we off er private and business customers climate-neutral shipping options. We are also testing vehicles with hybrid and electric drive technology as well as energy-saving lighting in our facilities.
As in the past, our chief priority in 2011 was to deliver the best-possible service quality to our customers. Th is objective places high demands on our products, processes, infrastructure and employees. We track the ever-changing requirements of our customers and measure our services proactively and reactively, by, for instance, using mystery shoppers and by maintaining a dialogue with customers on various media platforms.
As part of our First Choice initiative, we work steadily on improving our internal and external processes. For instance, an employee survey taken at our largest customer in the UK indicated a need to make some changes in customer service. In response, we set up a separate service hotline for the customer and trained our employees accordingly. Any problems that arise can now be handled much more quickly. Th e satisfi ed customer subsequently extended its contract.
As experts in the international express business, we also off er solutions for small and medium-size enterprises. Since 2011 we have been providing them with comprehensive shipping information simply and transparently on our website under Small Business Solutions.
Opportunities and risks, page 107
Corporate responsibility, page 88 f.
dhl.com
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, can be altered immediately. In the case of sensitive shipments, we immediately take all necessary measures to ensure that the items reach the recipient at the agreed time and in the agreed quality. It has been part of our standard procedure in further improving our service to track all premium products, for example Medical Express shipments, at our quality control centres until they are delivered.
Operational safety, compliance with standards and the quality of service at our facilities are reviewed regularly. Around 170 locations have been certifi ed by the Transported Asset Protection Association (TAPA), one of the world's most renowned safety associations. Th is has also applied to all gateways in the United States since 2011. In 2010, we began recording all certifi cation processes using a uniform system and managing them globally. Since then we have been ISO 9001-certifi ed in Europe. Moreover, we meet the fundamental ISO 14001 environmental management standard in 22 European countries. We aim to achieve certifi cation pursuant to these two ISO standards in all regions and all countries.
Striving to understand and fulfi l our customers' expectations, we again surveyed more than 19,000 participants in 47 countries to fi nd out how satisfi ed they are with our services. Th ese key customers account for 69 % of total revenue in the GLOBAL FOR-WARDING, FREIGHT division. Based on the results of the customer survey, all country organisations have developed and implemented specifi c plans for improvements.
In making these improvements, we utilise the First Choice methodology aimed at putting the customer at the centre of all our activities. In the year under review, we began working with 18 of our top global customers to analyse and improve their processes as part of our Customer Improvement Programme. We are currently developing similar plans with another 52 customers. 780 individual activities started in 2011 have already delivered upwards of €70 million in increased revenue as well as cost savings of over €12 million.
Customers are becoming increasingly aware that our continuous improvement process off ers them added value. For example, we received the Global Supplier Award from ZF Friedrichshafen in November 2011, making us the fi rst logistics provider ever to receive the award. ZF Friedrichshafen is a leading global automotive supplier for driveline and chassis technology with 121 production companies in 27 countries. In bestowing the award, the company recognised its successful co-operation with us.
For a customer in the Electronics sector, we improved our on-time performance from 92 % to 97 % and exceeded the customer's expectations for shipping quantities by more than 600,000 freight shipments annually.
For another customer in the European air freight sector we developed a dedicated Aerospace Service Desk managing all infl ows and outfl ows of goods in the region. Th is enhances the customer's transparency regarding costs, transport and inventories.
For the Life Sciences & Healthcare sector, dhl Solutions & Innovations (dsi) introduced smart sensor technology to monitor key functions such as temperature. Th e new technology enables customers to obtain in-transit data related to their temperaturesensitive goods.
Glossary, page 250
Strategic focus, page 111
Glossary, page 250
Our goal is to lead the supply chain industry in every respect. We therefore implement practices and methodologies that provide our customers with the highest level of service and the most added value. We use globally tested processes in order to off er our customers everywhere comparable solutions and uniformly high service standards. Our relentless drive to improve our processes has paid off , as witnessed by the results of a customer survey from 2010: eight out of ten customers confi rm DHL as their provider of choice in the supply chain business.
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 2011, we again achieved more than 95 % of our service standards worldwide.
In order to enhance and ensure the existing high quality of service to our customers, in 2011 we implemented the Path to Quality programme as the quality management system used within the supply chain business to ensure consistency, transparency, simplicity and robustness of logistics processes. Customers recognise the benefi ts of the results achieved using the Path to Quality system, which was featured in Quality World, a trade publication.
a.70 Brands and business units
| 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 Service |
• Global Mail • Parcel Germany |
• Express | • Global Forwarding • Freight |
• Supply Chain |
| Sub-brand | • Williams Lea |
A high level of awareness and a positive brand image are very important for our success as a global service provider. Th is is why we work continuously to ensure professional brand management. In line with our Strategy 2015, we are optimising our position as Die Post für Deutschland (the postal service for Germany) and the logistics company for the world, and independent studies show that we are on the right track.
In 2011, consulting company Semion Brand-Broker calculated Deutsche Post's brand value to be €12,946 million. Th e 2 % increase in value ranks us number six amongst the most valuable German brands for the second time in a row. Factors analysed included fi nancial value, brand protection, brand image and brand strength.
In the Global 500 rankings of Brand Finance plc, London, a UK market research company, the DHL brand climbed 16 places from number 107 in 2010 to number 91 in 2011. Brand Finance calculates current brand value by benchmarking the strength, risk and future potential of a brand relative to the competition. Th e study put the brand value of DHL at US\$9.78 billion in 2011, up from US\$7.30 billion in the previous year.
Th e way in which our employees perform their daily tasks and conduct themselves towards customers has a lasting impact on the brand image of Deutsche Post. In the year under review, we continued to support our employees in acting as active ambassadors of our brand. For example, we promote their identifi cation with the brand via an internal motivational platform known as the Deutsche Post Fan Club. We provide employees with sports clothing, support their participation in recreational sports and group excursions to events that we sponsor. Th is includes the popular Deutsche Tourenwagen Masters (DTM – German Touring Car Masters) race series. Our sponsoring and logistics partnership with DTM will continue and be used extensively in our internal and external brand communications.
At the end of 2011, we launched what is known as the "Extranet" to provide information to our many employees without internet access at work. Th e Extranet allows them to access company feature content from their personal computers.
We use our position as an offi cial partner of Deutscher Fußball-Bund (DFB – the German football federation) to promote the Deutsche Post brand. Along with ongoing participation in the DFB Cup, in 2011 we were a premium partner for the women's national team and a national sponsor for the FIFA Women's World Cup, successfully promoting the E-Postbrief in an integrated campaign. According to an external study, Deutsche Post had the highest level of awareness of all German world cup sponsors. An internal market study indicated that the brand had reached its highest popularity level since we began recording data in 2009.
We also used our new partnership with the Deutsche Post Marathon Bonn 2011 as a communication platform for the E-Postbrief. Our sponsorship of this major sporting event shows our support of the city in which our Group is headquartered. Several hundred of our employees took part in the marathon.
During the reporting year, we aligned the DHL brand strategy more closely with our business strategy and targeted our international campaigns towards greater emphasis on DHL as the umbrella brand.
In 2011 DHL continued its global integrated brand campaign, which targets top decision makers in large corporations. Th e main message of the campaign is our customer promise to off er simplifi ed services and sustainable solutions.
Since May 2011, DHL has also been carrying out its global "international specialists" campaign in 43 countries. Th e campaign focuses on our competence as a provider of international express deliveries. Th e advertising campaign received the Stevie Award at the 8th Annual International Business Awards in Abu Dhabi in the business services category.
In addition to traditional advertising, we continue to use sponsorships as a vehicle to strengthen our brand image. In 2011, we maintained our proven international logistics partnerships with Formula 1, IMG Fashion Weeks and the Leipzig Gewandhausorchester.
DHL was also involved in the Volvo Ocean Race for the fi rst time. Likewise, we became a main sponsor and the offi cial logistics partner of Manchester United. As the offi cial logistics partner of the 2011 Rugby World Cup in the autumn of 2011 in New Zealand, DHL was also able to showcase its brand.
All together, we took part in some 120 events in 40 countries in the reporting year as part of the DHL partner programme, bringing our logistics solutions to life.
On 25 January 2012, the European Commission concluded the formal state aid investigation that it had initiated on 12 September 2007. Th e issues are described in detail in the Notes. According to its decision, the Commission is requiring Deutsche Post AG to repay this state aid to the Federal Republic of Germany in the amount of €500 million to €1 billion, plus interest. No other state aid proceedings involving the Group are pending at the European Commission. Deutsche Post AG is of the opinion that the European Commission's decision of 25 January 2012 cannot withstand legal review and will appeal to the European Court of Justice in Luxembourg. Accounting will take place in accordance with the envisaged procedures.
Th e procedure to exercise the put option on 12.1 % of Deutsche Postbank AG shares was initiated in January 2012.
Note 51
Our strong position as market leader in the German mail and parcel business and in nearly all of our logistics activities is the best possible basis for our further growth. We expect consolidated EBIT for full-year 2012 to reach between €2.5 billion and €2.6 billion, assuming that the world economy will grow by 3 % to 3.5 % and world trade will exceed that growth. Th e MAIL division is likely to contribute between €1.0 billion and €1.1 billion to consolidated EBIT. Compared with the previous year, we expect an additional improvement in overall earnings to approximately €1.9 billion in the DHL divisions. 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 Postbank transaction is expected to continue to improve in 2012 in line with our operating business.
As an internationally operating logistics company, we are faced with numerous changes. Our aim is to identify the resulting opportunities and risks at an early stage and to manage them with the goal 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 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 at diff erent hierarchical levels.
Our early identifi cation process leads to uniform reporting standards for risk management in the Group. We make constant improvements to the IT application used for this purpose. We also use a Monte Carlo simulation for the purpose of aggregating risk in standard evaluations.
Th is stochastic model takes the probability of occurrence of the underlying risk and rewards into consideration and is based on the law of large numbers. For each risk, one million randomly selected scenarios are combined with each other from the distribution functions for the individual risks. Th e resulting totals are shown in a graph of frequency of occurrence, which thus acts as an indication of the probability of budget deviations for each unit reviewed. Th e graph indicates a smaller range between the absolute extreme scenarios within which the earnings for the division have a high probability of falling. Th e following graph shows an example of such a simulation:
in one million simulation steps (incidence density)
Th e most important steps in our opportunity and risk management process:
1 Identify and assess: Opportunities and risks are defi ned as potential deviations from projected earnings. Managers in all divisions and regions provide an estimate of our opportunities and risks on a quarterly basis and document relevant actions. Th ey use scenarios to assess best, expected and worst cases. Each identifi ed risk is assigned to one or more managers, who assess it, monitor it, specify possible procedures for going forward and then fi le a report. Th e same applies to opportunities. Th e results are compiled in a database.
(disclosures required under section 315 (2), number 5 of the Handelsgesetzbuch (hgb – 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 decentralised level by those responsible locally (by a chief fi nancial offi cer, for example) and at a central level by Corporate Accounting and Reporting, Taxes and Corporate Finance at the Cor porate Center. Over and above 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 pro cedures, 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 for customers, which is why we are aligning our services even more closely to their needs. 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 will 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. We are well positioned in the emerging economies of Brazil, Russia, India, China and Mexico (BRIC + M) and want to take advantage of arising opportunities.
Further growth prospects will result from closer co-operation between the DHL divisions. We off er integrated logistics and transport solutions from a single source to an ever-increasing extent, which gives us a major competitive advantage. DHL Solutions & Innovations (DSI) pools expertise within DHL and uses it to develop new solutions across the Group. Sector Management is our method of developing solutions for customers in selected industries as well as services tailored to the requirements of rapidly growing regions and customer segments. Against this backdrop we have created the new Chief Commercial Officer position that combines all cross-DHL initiatives, including our central key account management and innovations.
Online communication and e-business are creating demand for transporting documents and goods. Th is in turn creates growth opportunities for us in our mail and parcel businesses.
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.
As part of the Idea Management programme our employees have over the past years suggested many new products and process improvements. Th is promotes corporate innovation and allows cost savings to be made.
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.
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 the Group provides some of its services in a regulated market. A large number of the services rendered by Deutsche Post AG and its subsidiaries are subject to sector-specifi c regulation by the Bundesnetzagentur (German federal network agency) pursuant to the Postgesetz (PostG – German Postal Act). Th is regulatory authority approves or reviews prices, formulates the terms of downstream access and undertakes special monitoring of market abuse. Th e general regulatory risk could lead to a decline in revenue and earnings in the event of detrimental decisions.
Business activities and organisation, page 30
Employees, page 86
Strategy and goals of the divisions, page 112 ff.
Glossary, page 250 Glossary, page 250
In 2011, the regulatory authority announced a benchmark decision specifying the conditions that would apply in 2012 and 2013 to regulation under the price-cap procedure for mail prices requiring approval. Th is stipulates that the general rate of infl ation and the expected productivity growth rate for Deutsche Post AG are 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. In the year under review, the regulatory authority approved the prices to be charged in 2012 for the products regulated under the price-cap procedure.
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 assess ments will be reissued for all open tax periods. Th e VAT exemption for postal services is based on European law (postal services directive, VAT directive) and national German law (Postgesetz – Postal Act), 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 VATexempt or VAT-liable. Th e German tax authorities have reviewed this assessment over the years and have not objected to it. Should the VAT tax assessments be amended, we shall take legal action where appropriate. Despite our view that the products' exemption complies with current European and German law, we cannot rule out the possibility of additional tax payments.
Since 1 July 2010, as a result of the revision of the relevant tax exemption provisions, 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.
We pay close attention to economic trends in all regions, particularly in the industrial countries. Despite the volatile climate, demand for logistics services rose in 2011 and our revenues increased accordingly. However, we cannot rule out the possibility of an economic downturn in specifi c regions and a stagnation or decrease in transport quantities.
Th e national debt crisis in the euro zone represents another element of uncertainty, not only for logistics companies, and has lowered economic expectation. Cost fl exibility is therefore becoming increasingly necessary to allow a fast response to changes in market demand.
In recent years, the Group has taken measures to achieve a high level of cost fl exibility. Even though experts see a substantial risk of an economic downturn in 2012, we regard the likelihood of this signifi cantly aff ecting our forecast earnings as low due to our sound preparations, the experience we gathered during the last economic crisis and our global presence.
Th e probability of customer insolvencies is at a normal low level, for which reason we do not anticipate any signifi cant losses due to insolvency on the part of customers from a current perspective.
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.
According to security agencies, terrorism presents a particularly high risk for the western world. However, no specifi c threats to people, institutions or enterprises are known to us at present. We nonetheless 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 in 2010, postal companies and government authorities all over the world agreed to increase air traffi c security. Deutsche Post DHL's security concepts 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, representatives of national legislative authorities and industry associations in order to ensure a high level of security and a low probability of any signifi cant incidents occurring. 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 all aspects of security in the interest of our customers, business partners and employees.
Over the past years, the Group has ensured that its activities are well positioned in the world's fastest growing regions and markets. We have also created effi cient structures in all areas to allow us to fl exibly adapt our capacities and costs to demand as a prerequisite for lasting, profi table business success. With respect to the strategic orientation of the Group, we are now focusing on our core competencies in the mail and logistics businesses with an eye towards growing organically and simplifying our processes for the benefi t of customers.
In the MAIL division, we are responding to the challenges presented by the structural change from a physical to a digital business. We have counteracted the risk arising from changing demand by expanding our range of services. Due to the e-commerce boom, we expect our parcel business to continue growing robustly in the coming years and are therefore extending our parcel network. We are also expanding our range of electronic communications services, securing our standing as the quality leader and, where possible, making our transport and delivery costs more fl exible. We follow developments in the market very closely. Although customer demand will change signifi cantly over the long term, we regard the risk to successful operations in the MAIL division as low due to the measures introduced.
In the EXPRESS division, our future success depends above all on general factors such as trends in the competitive environment, costs and quantities transported. Aft er having spent recent years successfully restructuring our business and substantially improving cost structures, we are now focusing on growth in our international business. We anticipate an increase in shipment volumes on routes to and from Asia in particular. Based on this expected growth, we are making strategic investments into our network, services, employees and the DHL brand. Against the backdrop of the past developments and the overall outlook, we do not see any unusual strategic risk for the EXPRESS 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. 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 customers a widely diversifi ed range of products in different sectors all over the world, we can diversify our risk portfolio and balance out the incumbent risks. Moreover, our future success also depends on our ability to continuously improve our existing business and to grow in our most important markets.
Logistics services are generally provided in bulk. Th ey require a complex operating infrastructure with high quality standards to avoid any disruptions to the fl ow of shipments. To consistently guarantee reliability and on-time delivery, processes must be organised so as to proceed smoothly with no technical or personnel-related glitches. Any weaknesses with regard to posting and collection, sorting, transport, warehousing or delivery could seriously compromise our competitive position. We therefore adapt all processes to current circumstances as needed. We also take preventive measures to guard against disruptions or malfunctions in our operational processes. Should disruptions nonetheless occur, contingency plans will go into eff ect to minimise the consequences.
As an example, back in 2005 we began formulating plans in all divisions to respond to a pandemic emergency, including setting up an international crisis team. Although the risk of a pandemic has declined since then, we still aim to minimise the risk of infection for our employees in the event of an emergency whilst maintaining our business operations.
Overall, we regard the probability that the Group will experience signifi cant eff ects due to downtime as low. In addition, some risks from downtime 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 customers. Should this involve capital expenditure, the Board of Management decides on any sums 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 Corporate Center/Other. Th e Board of Management members are regularly informed of investment decisions so that they can identify any signifi cant risk early and take the 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. Th e goal is continuous IT system operation and the prevention of unauthorised access to our systems and databases.
Our operations can only run seamlessly if our essential IT systems are always available. To ensure this, we design our systems to protect against 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 can only access the data they need to do their job. 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 outdated soft ware or from soft ware upgrades.
We make all eff orts to manage the low-probability, high-impact incidents in order to provide 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 cannot be ruled out entirely.
Security is our pledge for the E-Postbrief product. All attempts to attack the soft ware have been repelled to date. In 2011, the product passed its fi rst surveillance audit. Th is annual audit is carried out by the German Federal Offi ce for Information Security in accordance with ISO 27001. In addition, the certifi cation and testing organisation Technischer Überwachungsverein certifi ed that the E-Postbrief product complies with data protection regulations.
Our Group-wide risk management system also monitors environmental policy developments. An example is the EU's expansion of its emissions trading system to include air traffi c. All airlines taking off from or landing in Europe are obliged to participate in this mandatory system from 2012 on. Th e system requires the airlines to submit emissions rights on the basis of their actual CO2 emissions.
We believe that our Group is well equipped to limit any fi nancial risk thanks to the GoGreen programme, which aims to improve our carbon effi ciency by 30 % by 2020 compared with 2007 levels. We modernise our aircraft fl eet and optimise our network and load factor on an ongoing basis. Th ese measures are designed to save fuel and thus reduce our carbon credit requirement. Aircraft operators are allocated emissions rights free of charge on the basis of their 2010 transport quantities. Emissions rights must be purchased at auction for any emissions not covered by the rights allocated. We consider the fi nancial impact of these risks to be fairly low, despite the fact that their probability of occurrence is relatively high.
Th e dedication and skills of our employees are essential to our future success. For this reason, we want to become the employer of choice in our sector. Competition remains high for qualifi ed specialists and executives. Demographic change means that our staff are ageing, 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 be able to recruit and retain a suffi cient number of suitable employees.
In order to reduce this risk, we provide our employees with a motivating work environment and off er them suitable opportunities to take part in professional and employee development programmes. Th e results of our annual employee survey show that we continue to make progress in this area: compared with the previous year, employee approval ratings for "working conditions" improved by three percentage points to 76 %, and the ratings for "learning and development" rose by fi ve percentage points to 68 %.
In many countries, the age structure and social structures are undergoing a notable shift and thus directly aff ecting the composition of the working population. To analyse the changing situation, we have developed an instrument known as Strategic Workforce Management, which supplies answers based on facts to questions such as the risks related to employees' work capacity and aging.
Deutsche Post AG has entered into a Generations Pact with the trade unions to take account of the changing employment structure. Th e Generations Pact enables older employees to remain on the job whilst at the same time improving employment opportunities for young people.
Corporate responsibility, page 87
Employees, page 84
In 2011, we placed particular emphasis on increasing the share of women in management positions. Our goal is to fi ll 25 % to 30 % of all management positions becoming vacant with women in the future. Th is should also contribute to meeting our needs for executives.
According to the United Nations and the World Economic Forum, there is a risk of a substantial increase in chronic, i. e., non-contagious, diseases all over the world. We are responding to this risk by continuously updating our health management programme, which has received multiple awards. State-of-the-art health management helps us to overcome the challenges of demographic change, become an employer of choice, assure high productivity levels and assume social responsibility.
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.
Th e fi rst tranche involved the sale of 50 million Postbank shares via contribution as a non-cash capital increase in return for 50 million hedged new shares in Deutsche Bank AG, with any claims to payment of a purchase price for the shares 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.
As at 31 December 2011, Deutsche Post AG was still in possession of 86,417,432 Postbank shares. In the second tranche, 60 million Postbank shares will be 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 as 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). In January 2012, the process to exercise the put option was initiated by Deutsche Post AG.
Th e changes in the fair value of the forward transaction (second tranche) and the call and put options (third tranche) led to volatility on the balance sheet during the fi nancial year. Until the shares are fully transferred, the changes in the fair value of the options and the forward transaction will continue to impact net fi nancial income / net fi nance costs. Th e risk involved is described in greater detail in the Notes to the consolidated fi nancial statements along with information on other fi nancial risks. We do not consider the risks described therein to represent a threat to the continued existence of the Group as a going concern.
Note 48
Deutsche Post DHL Annual Report 2011
Th e European Commission's decision of 25 January 2012 concluded the formal state aid investigation that it had initiated on 12 September 2007. In its review of the funding of civil servants' pensions, the European Commission concluded that Deutsche Post AG had received illegal state aid in this area. It said that the pension relief granted to Deutsche Post AG by the Bundesnetzagentur during the price approval process led to Deutsche Post AG having to pay lower social security contributions for civil servants than its competitors pay for salaried employees, resulting in a benefi t to Deutsche Post AG of between €500 million and €1 billion that it must repay to the Federal Republic of Germany. Th e precise amount has to be calculated by the Federal Republic. Deutsche Post AG is of the opinion that the European Commission's decision of 25 January 2012 cannot withstand legal review and will appeal to the European Court of Justice in Luxembourg.
More information about the state aid proceedings and other information on legal risk are provided in the Notes. We do not regard the risks ensuing from pending legal proceedings as representing a threat to the Group's continued existence as a going concern.
Our fi nancing and insurance strategy enabled us to make signifi cant savings in 2011 as well. It 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 51
Deutsche Post DHL is well positioned in terms of its operations. Strategically, the Group is positioned to benefi t from momentum on the markets. We have laid the foundation for the company to continue on an upwards path, regardless of whether the economic upswing continues or economic output returns to normal. We are even well prepared for a possible economic collapse given that in previous years we have further optimised our cost structures and in many cases we can make them more fl exible. In Germany, our future corporate profi ts could be aff ected by changes in the regulatory conditions pertaining to 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 has operations all over the world. We off er our customers comprehensive services that extend to all modes of transport and all links in the supply chain. We are the market leader in the German mail business and in nearly all of our logistics activities. Th is strong competitive position is the best possible basis for our further growth.
Our Strategy 2015 has three objectives: we want to be the provider of choice for customers, an attractive investment for shareholders and the employer of choice for our staff . Our Group strategy is closely intertwined with the business strategies of our divisions. We take regular stock of the progress we make in terms of customer and employee satisfaction as well as the growth and profi tability of our divisions.
As the largest company in our industry, we also take our environmental and social responsibility seriously. Th e programmes and initiatives we have implemented in this respect are summarised by our motto of "living responsibility".
Since the manner in which a company's employees act and behave is vital in determining its ability to perform at a high level, our guiding principle is "respect and results". Attaining fi rst-class results is a fundamental prerequisite for our becoming the employer of choice for our employees, the provider of choice for our customers and the investment of choice for our shareholders.
Strategy and goals of the divisions, page 112 ff.
Corporate responsibility, page 87
Our Strategy 2015 is intended to help us to unlock our full potential. We also want to make it as easy as possible for customers to meet their logistics requirements. In 2010 we therefore introduced Group-wide initiatives aimed at "growth and simplifi cation". Th e initiatives generated very good results in the year under review.
We aim for growth in our core products that exceeds the annual growth of their respective markets by one to two percentage points. Our Sector Management solutions for customers in selected industrial sectors have been especially successful, as have been our services tailored to the needs of fast-growing regions and customer segments. Against this backdrop, we have created the new position of Chief Commercial Officer, who oversees all cross-DHL initiatives including our central key account management and innovations.
With respect to the "simplifi cation" part of our motto, we have succeeded in improving internal and external processes alike. We have grown and at the same time measurably increased customer satisfaction by focusing our business activities even more intently on the advantages off ered by our comprehensive range of products and our global presence.
We adhere to our priorities of growth and simplifi cation in implementing our Group strategy, both on a divisional level and in terms of selected cross-divisional issues. Th e business strategies of the divisions provide the basis and are supplemented by the following cross-divisional initiatives intended to increase the satisfaction of customers, employees and investors:
Finance: In the area of fi nance we plan to simplify processes and structures, intensify our co-operation with business partners and increase application of the shared services approach. Th is will allow us to improve our eff ectiveness and reduce our fi nance costs.
Personnel: We want to increase standardisation in our global personnel processes and to simplify them even more in order to gain added resources for improving our service quality in the future. We shall continue to promote diversity in the Group, to improve co-operation between the divisions and to support cross-divisional career moves. We also want to increase the share of women in executive positions. In connection with a joint declaration by all DAX 30 companies, we have made it our goal to fi ll 25 % to 30 % of all management positions becoming vacant with women.
Th e following strategic approaches are how we aim to meet the challenges of our business, both today and in the future. Our central goal is to ensure that our MAIL division continues to make a stable contribution of at least €1 billion to the Group's earnings in the future.
Glossary, page 250
Employees, page 84
• Tapping new online markets: We are taking advantage of our expertise in physical communications to off er competent electronic communications. Th e internet is already facilitating customers' access to our services, allowing them, for example, to calculate and purchase postage and also locate retail outlets and Packstations online and by mobile telephone. We are investing in future growth areas in all our businesses: beyond our E-Postbrief product, our platform for secure electronic communications, we are active in the growing industry of online advertising. We operate Europe's largest platform for targeting (online advertising space marketing), provide the largest online German marketplace for journalistic content, and we are the fi rst parcel delivery service in Germany to operate its own shopping portal. New user-friendly features beyond its basic features will be added to the E-Postbrief.
Our "FOCUS" strategic programme extends to four areas:
Glossary, page 250
• Profi tability: To ensure a stable earnings contribution and continue growing over the long term, we monitor costs continuously and make sustainable investments in our business. For instance, we are expanding and revamping our fl eet of aircraft to enable us to off er additional and more frequent fl ight connections. An international advertising campaign has been initiated to increase the name recognition of the DHL brand. We also actively seek profi table business opportunities, for example through the establishment of a new hub in Shanghai to expand our Asia business. We uncover potential and take measures accordingly to improve our earnings through targeted monitoring of our portfolio. Each country and each location in our network has contributed to these endeavours.
We are well positioned in our markets due to our global product off ering in air and ocean freight and in overland transport. We aim to continuously achieve growth that exceeds the market average and to consolidate our leading position. To achieve this goal, we pursue three approaches:
We are in the process of strengthening our expertise and expanding our off ers for individual sectors. In the Life Sciences & Healthcare sector, DHL has expanded its infrastructure footprint to encompass 27 competence centres. Th e 100 % acquisition of LifeConEx is signifi cant in enhancing our service portfolio in this sector.
In the Engineering & Manufacturing sector, we now service European aerospace customers' needs via a single point of contact. In Asia, we have expanded our network by adding stations in, for example, China, Singapore and New Zealand.
In the Retail sector, we have implemented several regional direct-to-store distribution concepts that reduce inventory levels and simplify customs clearance in multiple destination countries. Th is solution is highly effi cient for retailers expanding into new markets such as Asia.
In the Automotive sector, we decided to invest in setting up a network of competence centres. Th e centres commenced operations in January 2011 in China, India, the USA, Germany, Brazil and Mexico with further ones planned. Th e objective is to ensure that customers receive the highest level of operational excellence.
We are increasing our international presence in all the areas in which we see the greatest growth opportunities. In the key Chinese market, increasing domestic consumption is moving the transport business inland. To capitalise on this trend, we added four branches and 17 sales offi ces to our network in 2011. We have also continued to grow in the south-east Asia market, having, for example, established additional branches in Vietnam, Pakistan and Indonesia. We also set up 30 new connections for the lcl market from Asia to Europe, in the Middle East, and to Latin America and Africa, accelerating our cargo movement in these growing trade lanes. To leverage the benefi ts of increased trade in the ASEAN free trade zone, we consolidated our network connecting Singapore, Th ailand and Malaysia. Th e Asia Connect service also opens the door for the future setup of road freight between China and south-east Asia. In the United States, we invested in eight new sales locations and further expanded our air freight trade lane traffi c from North America to Russia, India, China, Mexico and South Korea.
In Europe, we established in the Global Forwarding business unit direct export services from Central and Eastern Europe to Asia via the port of Koper in Slovenia. Customers who forward their LCL transports via Koper achieve signifi cantly shorter transit times than those available on routes through ports in northern Europe.
To simplify our air freight services between Europe and North America, we launched Liberty STAR in May 2011. Th is product off ers air freight shipments between the two continents with defi ned transit times and at all-inclusive rates.
We are in the process of creating the necessary basis for providing the highest level of operational excellence. For example, we have signifi cantly reduced the complexity of our information technology. For key customers, we are making increasing use of standardised IT applications and thus considerably enhancing the transparency of transport routes and costs. Our customer self-service portal, DHLi.com, is being adopted by a rising number of customers.
In order to reduce costs and simplify the IT landscape, we have decommissioned approximately 10 % of our legacy applications and reduced our corresponding investments. Th e cost savings are being invested in several initiatives to standardise our business processes and make them more effi cient, thus allowing seamless interaction of all global IT applications with future target environments, standardised IT support and automated soft ware updates. In addition, we have launched a global programme for harmonising our hardware. We are prepared to accept short-term hindrances to earnings growth for the sake of these measures.
Our Growth Th rough Excellence strategy introduced in 2010 is based on two main pillars:
Strategic focus, page 111
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 sectors of Consumer, Retail, Technology, Life Sciences & Healthcare, Automotive and Energy. For each of these sectors, we have established dedicated global sector teams to off er our customers comprehensive supply chain solutions 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 proven operating standards and practices. One example of such a comprehensive solution in the Technology sector is our Technical Services off ering. Technical services refer to processes that are integrated into the respective supply chain solutions and which signifi cantly reduce warehouse and transport costs as a result of shorter repair cycles. Together with Acer, a customer of ours in India, we signifi cantly simplifi ed that company's processes by combining the former 21 spare parts warehouses into three regional repair centres. DHL does not only manage the spare parts but ensures that the defective devices are collected at Acer's local service providers and carries out the required repair activities as well as subsequent delivery of the units to the customers.
Th us far we have replicated six strategic products worldwide: Lead Logistics Provider, Co-Packing, Integrated Logistics & Procurement, Technical Services, E-Fulfi lment and Airline Business Solutions. 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 understand our customers' business objectives and strategies better, which enables us to off er them added value. Feedback from customers and customer surveys also assists us in continuously enhancing the eff ectiveness of our sales activities.
Th e Supervisory Board of Deutsche Post AG resolved on 14 December 2011 to appoint Angela Titzrath to the Group Board of Management. As at 1 May 2012, she will succeed Walter Scheurle, who will resign his post as Board Member for Personnel eff ective as at the end of April following twelve years of successful service. He will continue to assist the company in an advisory capacity until he enters retirement.
Th e global economy is likely to maintain its growth course in 2012 but there are considerable risks. Sharply rising commodity prices may cause infl ation to increase appreciably, especially in emerging markets, and may signifi cantly slow the upturn. Th e national debt crisis in the euro zone in particular may have a highly adverse eff ect on international fi nancial markets. If these risks remain manageable, the International Monetary Fund (IMF) expects an increase in global economic output of 3.3 %. At the start of the year, most institutes were still giving relatively conservative estimates of growth in global trade (IMF: 3.8 %, OECD: 4.8 %).
| a.73 Global economy: growth forecasts | ||
|---|---|---|
| % | ||
|---|---|---|
| 2011 | 2012 | |
| Global trade volume | 6.9 | 3.8 |
| Real gross domestic product | ||
| Global | 3.8 | 3.3 |
| Industrial nations | 1.6 | 1.2 |
| Emerging markets | 6.2 | 5.4 |
| Central and Eastern Europe | 5.1 | 1.1 |
| cis countries | 4.5 | 3.7 |
| Emerging markets in Asia | 7.9 | 7.3 |
| Middle East and northern Africa | 3.1 | 3.2 |
| Latin America and the Caribbean | 4.6 | 3.6 |
| Sub-Saharan Africa | 4.9 | 5.5 |
Source: International Monetary Fund (imf) world economic outlook, January 2012.
In China, the government is making eff orts to keep infl ation under control and to slow down the economy. Th e economy is therefore expected to grow somewhat more slowly (IMF: 8.2 %).
Th e Japanese economy may be able to recover from the economic downturn. Exports are forecast to increase considerably and gross fi xed capital formation will also likely see a strong rise on account of the rebuilding eff orts aft er the earthquake. A rise in private consumption is anticipated. GDP is therefore expected to grow (IMF: 1.7 %, OECD: 2.0 %, Postbank Research: 2.1 %).
In the United States, the economy is projected to revive but not to gain any signifi cant momentum. Investments in machinery and equipment as well as construction spending are expected to increase. Th e surplus on the housing market, however, is likely to curb the upwards trend. Private consumption will probably rise moderately, refl ecting the slight decline in unemployment. Foreign trade and government spending is not expected to provide stimulus. Forecasts call for GDP growth to accelerate slightly overall (IMF: 1.8 %, OECD: 2.0 %, Postbank Research: 2.4 %).
Th e euro zone economy is expected to experience a profound weak phase. To combat the national debt crisis, spending will be cut and taxes increased, which will likely also slow private consumption and gross fi xed capital formation. As a result of weak domestic demand, imports are likely to rise at a considerably slower pace than exports so that foreign trade may have a positive impact on growth. However, total GDP is likely to increase only marginally (ECB: 0.3 %, Postbank Research: 0.6 %). A decline in economic output cannot be ruled out. Th e vast discrepancies between the member states are likely to remain.
Th is development will probably slow the German economy noticeably, an eff ect that will be seen mostly in exports. Investments in machinery and equipment as well as construction spending are expected to increase but not by as much as in 2011. Annual average employment fi gures are forecast to rise considerably, which is likely to boost private consumption further. However, GDP is expected to record only weak to moderate growth (Sachverständigenrat: 0.9 %, Postbank Research: 1.2 %).
If the global economy grows, the demand for crude oil will increase. Th e supply will probably be expanded as this occurs and, as a result, crude oil prices are likely to see only a moderate average increase in 2012.
Th e US Federal Reserve has announced that it will keep its key interest rate at a very low level for a longer period of time. A consistent rate between 0 % and 0.25 % can therefore be expected for 2012. Th e ECB will probably keep its key interest rate at 1.0 %. Nevertheless, capital market interest rates may rise, although a weak economy and low key interest rates are likely to keep yield spreads tight.
Th e trend in the industrial countries is likely to be shaped by elevated economic risks. Consequently, the emerging markets in Asia are again expected to play a signifi cant role in the growth of global trade in the year 2012. Whilst growth in global trade volumes (transported quantity in tonnes) is likely to remain unchanged at approximately 6% in 2012, growth on the Asian routes is projected to increase further.
Demand for mail in Germany depends on the trend in the ways our customers communicate and the extent to which electronic media continue to replace the physical letter. We expect the market for mail communication to shrink, though 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 again in 2012. Th is market is cyclical and currently fi nds itself in transition. We are seeing an overall shift in advertising expenditures as companies budget more for digital media and less for traditional advertising. Th e trend towards targeted advertising and combinations with internet off ers is likely to continue. Moreover, we expect companies to resort increasingly 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.
Glossary, page 250
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 subscription numbers and average weights, thus also impacting our future revenue. We plan to increase the number of digital products we off er 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, parcels and small packages.
In the parcel market, which is likely to continue to grow in Germany, we expect to profi t from business and private customer activities in the online marketplace. We shall continue to drive this development and to expand our market position with our own range of products and delivery services.
Experience shows that growth of the international express market is highly dependent on the general economy. Despite the restrained projections for overall economic growth, however, we are optimistic regarding 2012 in light of the trend in our shipment volumes.
Th is also applies to our earnings. A continuing focus on costs together with initiatives to increase effi ciency and quality will make a crucial contribution to improving earnings. Targeted, sustainable investments are necessary for our future growth. We are confi dent that we are able to remain on a growth path and further strengthen or defend our leading market position.
Th e decline in demand that set in during the second half of 2011 in the logistics and freight forwarding sector is likely to continue in the coming months because the overall economic outlook for 2012 is more moderate.
In the air freight market, freight rates are strongly infl uenced by the supply side and the willingness of carriers to reduce their capacities. Some have already announced such intentions. Growth opportunities are seen in inter-Asian trade and in the expanding Chinese domestic market.
Th e ocean freight market, currently shaped by low margins, and even losses in some areas, fi nds itself in a phase of consolidation. Th e number of market players is likely to decline and those who remain are therefore expected to experience considerable growth. Global trade and the demand for sea freight are expected to continue to increase, especially on trade lanes between Asia and Latin America and within Asia as well as between Asia and the Middle East. We also anticipate that freight rates will remain at their current level until the second quarter of 2012. Th is is due to increasing market capacities. Supply-side capacity adjustments are foreseen in the short and medium term so that rates are likely to increase in 2012 on the whole. Th is will, in turn, put more pressure on margins in the freight forwarding sector.
In 2011, road transport volumes recovered from the crisis. For 2012 we anticipate regular market growth, assuming long-term growth rates.
Due to the nature of the industry, the market for contract logistics stayed relatively resilient throughout the most recent economic downturn, a development that appears likely to continue in 2012.
Demand for Supply Chain services is expected to see particularly robust growth in emerging markets such as China, India, Brazil and Mexico.
At Williams Lea, we anticipate strong growth on the basis of our unique product off ering and the increasing development of our broad DHL customer base, especially within the Marketing Solutions business, which was enhanced by the acquisition of Tag.
Despite the uncertainty of the economic climate, our business model in combination with our extensive global reach and Growth Th rough Excellence strategy ensure that we shall continue to improve our existing business steadily and to grow new business profi tably.
Th e global economy is expected to continue to see moderate growth in 2012 with an increase of 3 % to 3.5 %. Th e international trading volumes relevant for our business are likely to exceed the projected growth of the global economy. We are therefore anticipating the corresponding revenue growth, particularly in the DHL divisions.
For fi nancial year 2012, we expect consolidated EBIT to reach between €2.5 billion and €2.6 billion. Th e MAIL division is likely to contribute between €1.0 billion and €1.1 billion to this fi gure. Compared with the previous year, we expect an additional improvement in overall earnings to approximately €1.9 billion in the DHL divisions. At around €–0.4 billion, the Corporate Center / Other result should be on a par with the previous year.
We plan to increase capital expenditure by approximately 6 % to €1.8 billion. We shall remain around this level in the following years. In line with our Group strategy, we are targeting organic growth and anticipate only a few small acquisitions in 2012, as in the previous year. In 2012, operating cash fl ow will only be impacted to a very minor extent by the restructuring measures resolved in 2009.
Even in the face of an uncertain economic climate, particularly in the western economies, we believe that the Group will experience good earnings momentum. Th e positive trend in our earnings that we are anticipating for 2012 is likely to continue into 2013. Th e cost reduction measures and growth programmes initiated in the MAIL division are expected to stabilise EBIT, even though letter volumes are likely to continue their slow decline due to electronic substitution. In the DHL divisions, we expect EBIT, taking the earnings contribution in 2010 as the baseline, to improve at an annual average of 13 % to 15 % in the period from 2011 to 2015 as trading volumes continue to recover.
Consolidated net profi t before eff ects from the Postbank transaction is expected to continue to improve in 2012 in line with our operating business.
Our fi nance strategy calls for paying out 40 % to 60 % of net profi ts as dividends as a general rule. At the Annual General Meeting on 9 May 2012, we intend to propose to the shareholders that a dividend per share of €0.70 be paid for fi nancial year 2011 (previous year: €0.65).
As a result of the state aid ruling of the European Commission and the associated cash outfl ow, our signifi cant rating fi gures will be aff ected temporarily. Th e rating agency Standard & Poor's has accordingly put our credit rating on credit watch with negative implications. Th erefore, we cannot rule out the possibility that our rating will be lowered throughout the course of the year.
We anticipate a deterioration in our liquidity in the fi rst half of 2012 as a result of the annual prepayment due to Bundes-Pensions-Service für Post und Telekommunikation in January and the dividend payment for fi nancial year 2011 in May. However, our operating liquidity situation will improve again signifi cantly towards the end of the year due to the upturn in business that is normal in the second half.
In view of the October 2012 maturity date for the bond issued by Deutsche Post Finance B. V. in the amount of €0.7 billion and the state aid ruling of the European Commission, we are nevertheless currently analysing the option of refi nancing under the Debt Issuance Programme. Since the cash outfl ow cannot be fully covered by available liquidity, we intend to borrow from the capital market during the course of the year.
Th e fact that the mandatory exchangeable bond (second tranche) subscribed in connection with the sale of Postbank will mature on 25 February 2012 has no impact on our net debt or liquidity, given that the bond will be settled via a transfer of Postbank shares and not in the form of cash.
We will continue to make investments in 2012. All in all, we plan to increase capital expenditure by approximately 6 % to €1.8 billion. We shall remain around this level in the following years. Th e majority of the spending will go for IT, machinery, transport equipment and aircraft .
In the MAIL division, we shall be further expanding our parcel network in addition to reinforcing digital growth areas. Investments in the mail and parcel business will increase versus the prior year.
In the EXPRESS division, we intend to increase investments in line with business growth. We shall be renewing and expanding our global network in order to sustain our high quality level even in the face of increasing volumes. Investments will centre on our aircraft fl eet and in some countries also extend to the infrastructure on the ground.
In the GLOBAL FORWARDING, FREIGHT division, capital expenditure is expected to rise in 2012. We plan to optimise IT solutions in the Global Forwarding business unit. Regionally, we shall be investing primarily in Asia, Europe, the Middle East and Africa.
Note 51
In the SUPPLY CHAIN division, investments are likewise expected to increase, although no substantial projects are planned. Additional investments will focus on supporting new business and securing and expanding existing business in America and the UK.
Cross-divisional capital expenditure will decrease slightly year-on-year in 2012. Investments will again be centred 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.
B CORPORATE GOVERNANCE
| REPORT OF THE SUPERVISORY BOARD | 125 |
|---|---|
| SUPERVISORY BOARD | 129 |
| Members of the Supervisory Board | 129 |
| Committees of the Supervisory Board | 129 |
| BOARD OF MANAGEMENT | 130 |
| MANDATES | 132 |
| Mandates held by the Board of Management | 132 |
| Mandates held by the Supervisory Board | 132 |
| CORPORATE GOVERNANCE REPORT | 133 |
WULF VON SCHIMMELMANN Chairman
In the 2011 fi nancial year, despite a turbulent economic and political environment, Deutsche Post DHL took positive steps towards its three targets: to be the provider, investment and employer of choice.
In 2011, the Supervisory Board scrutinised Group and divisional strategy and performance at four Supervisory Board meetings and at a closed meeting. At the meetings, 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 regularly discussed the global economic situation, the eff ects of the amended value added tax legislation and regulatory issues as well as the development of acquisitions and products within the divisional growth strategies. Amongst the matters discussed was the acquisition of Tag EquityCo Limited in July 2011. All important decisions were discussed in detail with the Board of Management. It 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 plenary meetings.
Two Supervisory Board 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 9 March 2011, with the auditors in attendance, we discussed and approved the annual and consolidated fi nancial statements for 2010. At that meeting we accepted Hermann Ude's resignation from the Board of Management and approved the conditions of his severance agreement. Th e Supervisory Board appointed Roger Crook to succeed him as a member of the Board of Management for three years until March 2014 and agreed on the terms of his contract of employment. Ken Allen was appointed as a member of the Board of Management for a further fi ve years until March 2017. In addition, we dealt with aspects of Board of Management remuneration, decided on the disposal of the US subsidiary Exel Transportation Services (ETS) and discussed the results of the effi ciency review of the work of the Supervisory Board.
At the Supervisory Board meeting of 30 June 2011, we examined, amongst other matters, aspects of the Board of Management's remuneration, in particular its appropriateness. In addition, we discussed how the company could support Supervisory Board members by providing them with basic and further training measures.
At the meeting of 7 September 2011, we agreed to extend Lawrence Rosen's mandate and contract for a further fi ve years until August 2017. Prior to the meeting, the company organised a Directors' Day to provide Supervisory Board members with basic and further training. Selected speakers talked about current topics and developments, including accounting and corporate governance. Following the meeting, the Supervisory Board held a one-and-a-half-day closed meeting to discuss in detail the implementation of Strategy 2015 within the Group and the divisions. In order to provide an outside perspective to supplement the views of the Group, the Supervisory Board invited a number of high-ranking guest speakers.
At the Supervisory Board's last meeting of the year on 14 December 2011, we adopted the business plan for 2012. Th e Supervisory Board extended the Board of Management mandate and employment contract of Chief Executive Offi cer Dr Frank Appel for another fi ve years until October 2017 and appointed Angela Titzrath as a member of the Board of Management and as Labour Director for three years. Angela Titzrath will succeed Walter Scheurle who, aft er twelve successful years as the Board Member for Personnel, is retiring at his own request. We discussed again the remuneration of the Board of Management, including the agreement of targets for 2012. We also submitted our Declaration of Conformity with the German Corporate Governance Code.
Th e Executive Committee met six times during the year under review. Th e agenda focused primarily on business-related questions and Board of Management matters, such as the appointment of Board of Management members and the remuneration for the Board of Management.
Th e Personnel Committee met four times, examining in detail the proportion of women in executive positions in the Group. Similarly, the Group's voluntary commitment announced in October 2011 was addressed at length as were the measures planned and implemented to promote women to executive positions. Another topic was the annual employee opinion survey.
Th e Finance and Audit Committee met seven times. Hero Brahms, the committee's chairman, is a fi nan cial expert as defi ned by section 100 (5) and section 107 (4) of the Aktiengesetz (AktG – German Stock Corporation Act). At its February meeting, the committee examined the annual and consolidated fi nancial statements for 2010. 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 2011 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.
With regard to the acquisition and disposal of companies, the committee meeting of 28 February 2011 discussed the sale of the US subsidiary Exel Transportation Services (ETS) and was informed about the acquisition of Eurodifarm srl. and AdCloud GmbH. Owing to his supervisory board mandate at Live Holding AG, which has an indirect holding in AdCloud, Hero Brahms did not participate in the discussion and resolutions concerning AdCloud. At the June meeting, the acquisition of Tag EquityCo Limited was again discussed.
Th e committee 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 2012 Audit Plan. Th e appropriateness of the Group's accounting system was discussed by the committee together with the auditor.
Th e Nomination Committee met once in 2011 and recommended to the Supervisory Board and the AGM the re-election of Hero Brahms, Werner Gatzer and Elmar Toime and proposed the appointment of Prof. Dr-Ing. Katja Windt and Th omas Kunz owing to the departure of Willem G. van Agtmael and Harry Roels.
Th e chairs of the committees reported on the committees' deliberations in the subsequent plenary meetings.
In 2011, there were no meetings of the Mediation Committee formed pursuant to section 27 (3) of the Mitbestimmungsgesetz (MitbestG – German Co-determination Act).
Th e following changes occurred in 2011 with regard to the shareholder representatives of the Supervisory Board of Deutsche Post AG: Willem G. van Agtmael and Harry Roels did not off er themselves for re-election and left the Supervisory Board at the end of the AGM of 25 May 2011. At the 2011 AGM Prof. Dr-Ing. Katja Windt and Th omas Kunz were appointed until the end of the AGM that will ratify the acts of management carried out during the fi nancial year 2015. Werner Gatzer and Elmar Toime were re-elected for the same term of offi ce. Hero Brahms was re-elected until the end of the AGM that will rule on ratifi cation of the acts of management for fi nancial year 2013. Th ere were no changes to the employee representatives.
Th e company's Board of Management changed as follows: Hermann Ude resigned from the Board of Management on 8 March 2011. Roger Crook was appointed to succeed him as the member of the Board of Management responsible for GLOBAL FORWARDING, FREIGHT from 9 March 2011. Th e Board of Management mandate of Ken Allen was extended on 9 March 2011, that of Lawrence Rosen on 7 September 2011 and that of Dr Frank Appel on 14 December 2011, each for fi ve years. Walter Scheurle announced his intention to retire in 2012. Angela Titzrath was named his successor as Board Member for Personnel and as Labour Director.
Hero Brahms announced at the Supervisory Board meeting of 9 March 2011 that as a precaution, he had not participated in the discussions and decision-making of the Finance and Audit Committee meeting of 28 February 2011 concerning the purchase of AdCloud GmbH, in order to avoid a potential confl ict of interest. Hero Brahms holds a supervisory board mandate at Live Holding AG, which has an indirect interest in AdCloud. Werner Gatzer also participated in the Supervisory Board discussions regarding the intention of the German tax authorities to qualify several mail products that Deutsche Post AG considers to be VAT exempt retroactively as subject to VAT. Th e tax authorities of the German federal states are responsible for administering VAT. Th ere was therefore no confl ict of interests.
In December 2011, 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 2011, Deutsche Post AG complied with all recommendations of the German Corporate Governance Code as amended on 26 May 2010. 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 133 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 s prüfungsgesellschaft , Düsseldorf, (PwC) audited the annual and consolidated fi nancial statements for fi nancial year 2011, 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 2011 at the fi nancial statements meeting held on 7 March 2012. 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 2011. Based on the fi nal outcome of the examination of the annual and consolidated fi nancial statements, on the management reports and on 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 € 0.70 per share.
We would like to thank the Board of Management and all the employees of the Group for their particularly hard work in the past year. Th e Supervisory Board is confi dent that the company is very well prepared for the future.
Bonn, 7 March 2012 Th e Supervisory Board
Wulf von Schimmelmann Chairman f
Prof. Dr Wulf von Schimmelmann (Chair) Former ceo of Deutsche Postbank ag
Hero Brahms Management consultant
Werner Gatzer State Secretary, Federal Ministry of Finance
Prof. Dr Henning Kagermann Former ceo of sap ag
Thomas Kunz (since 25 May 2011) President of Danone Waters, member of the Executive Committee of Danone s.a., France (until 30 September 2011)
ceo of Danone Dairy, member of the Executive Committee of Danone s.a., France (since 1 October 2011)
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
Elmar Toime
Managing Director, e Toime Consulting Ltd.
Prof. Dr-Ing. Katja Windt (since 25 May 2011) Professor of Global Production Logistics at Jacobs University, Bremen
Willem G. van Agtmael (until 25 May 2011) Managing Partner, e. Breuninger GmbH & Co.
Harry Roels (until 25 May 2011)
Andrea Kocsis (Deputy Chair) Deputy Chair of ver.di National Executive Board and Head of Postal Services, Forwarding Companies and Logistics on the ver.di National Executive Board
Wolfgang Abel Head of Postal Services, Forwarding Companies and Logistics, ver.di Regional District of Hamburg
Rolf Bauermeister Head of Postal Services, Co-determination and Youth and Head of National Postal Services Group at ver.di national administration
Heinrich Josef Busch Chair of the Group and Company Executive Representation Committee, Deutsche Post ag
Thomas Koczelnik Chair of the Group Works Council, Deutsche Post ag
Anke Kufalt Member of the Works Council, dhl Global Forwarding GmbH, Hamburg
Andreas Schädler Chair of the General Works Council, Deutsche Post ag
Sabine Schielmann Member of the Executive Board of the General Works Council, Deutsche Post ag
Helga Thiel Deputy Chair of the General Works Council, Deutsche Post ag
Stefanie Weckesser Deputy Chair of the Works Council, Deutsche Post ag, mail Branch, Augsburg
Executive Committee
Prof. Dr Wulf von Schimmelmann (Chair) Andrea Kocsis (Deputy Chair) Rolf Bauermeister Werner Gatzer Roland Oetker 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) Thomas Koczelnik Roland Oetker
Prof. Dr Wulf von Schimmelmann (Chair) Andrea Kocsis (Deputy Chair) Rolf Bauermeister Roland Oetker
Prof. Dr Wulf von Schimmelmann (Chair) Werner Gatzer Roland Oetker
CHIEF EXECUTIVE OFFICER Born in 1961 Member since November 2002, ceo since February 2008 Appointed until October 2017
GLOBAL FORWARDING, FREIGHT Born in 1957 Member since March 2011 Appointed until March 2014
MAIL Born in 1964 Member since July 2007 Appointed until June 2015
PERSONNEL Born in 1952 Member from April 2000 until April 2012
New member of the Board of Management
PERSONNEL Born in 1966 Member from May 2012 Appointed until April 2015
EXPRESS Born in 1955 Member since February 2009 Appointed until February 2017
SUPPLY CHAIN Born in 1955 Member since March 2008 Appointed until March 2016
FINANCE, GLOBAL BUSINESS SERVICES Born in 1957 Member since September 2009 Appointed until August 2017
Former member of the Board
of Management
HERMANN UDE GLOBAL FORWARDING, FREIGHT Born in 1961 Member from March 2008 until March 2011
Membership of supervisory boards required by law
Lawrence Rosen Deutsche Postbank ag Membership of comparable bodies
Ken Allen dhl Sinotrans International Air Courier Ltd. 1 (Board of Directors)
Roger Crook dhl Global Forwarding Management (Asia Pacifi c) Pte. Ltd.1 (Board of Directors) Bruce Edwards Ashtead plc (Board of Directors) Greif, Inc. (Board of Directors) Williams Lea Group Limited 1 (Board of Directors) Williams Lea Holdings plc 1 (Board of Directors, Chair)
1 Group mandate.
Membership of supervisory boards required by law
Prof. Dr Wulf von Schimmelmann (Chair) Maxingvest ag
Hero Brahms Georgsmarienhütte Holding GmbH (Deputy Chair)
Wincor Nixdorf ag (until 23 January 2012) Live Holding ag (Chair)
Telefunken se (Chair, until 31 March 2011) Krauss-Maffei-Wegmann GmbH & Co. kg
Werner Gatzer g.e.b.b. mbH
Bundesdruckerei GmbH
öpp Deutschland ag (until 3 January 2011) Flughafen Berlin-Schönefeld GmbH (since 8 April 2011)
Prof. Dr Henning Kagermann bmw ag Deutsche Bank ag Münchener Rückversicherungs-Gesellschaft ag
Roland Oetker Evotec ag (since 16 June 2011)
Dr Ulrich Schröder Deutsche Telekom ag KfW ipex-Bank GmbH (until 31 March 2011) deg – Deutsche Investitions- und Entwicklungsgesellschaft mbH
Elmar Toime message ag (Chair)
Prof. Dr Wulf von Schimmelmann (Chair) Accenture Corp., Ireland (Board of Directors) Western Union Company, usa
(Board of Directors)
Thomson Reuters Corp., Canada (Board of Directors), since 20 July 2011
Hero Brahms m. m. Warburg & Co. KGaA (Shareholders' Committee), until 14 April 2011
Zumtobel ag, Austria (Supervisory Board, Deputy Chair)
Prof. Dr Henning Kagermann Nokia Corporation, Finland (Board of Directors)
Wipro Ltd., India (Board of Directors)
Roland Oetker Rheinisch-Bergische Verlagsgesellschaft mbH (Supervisory Board), since 8 April 2011
Dr Ulrich Schröder "Marguerite 2020": European Fund for Energy, Climate Change and Infrastructure (Supervisory Board)
Elmar Toime Blackbay Ltd., United Kingdom ( Non-Executive Director)
Postea Inc., usa (Non-Executive Chairman)
Willem G. van Agtmael (until 25 May 2011) Charlottenklinik für Augenheilkunde (Board of Trustees)
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)
In this Annual Corporate Governance Statement, the company presents the main components of Deutsche Post DHL's 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 2011, 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 26 May 2010 have been complied with since the last Declaration of Conformity in December 2010 and that Deutsche Post AG intends to comply with all recommendations of the Code as amended on 26 May 2010 in the future."
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.
With the guiding principle of "respect and results", we set our corporate governance the daily challenge 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 for living conditions in the regions in which we operate. Th is is a responsibility that we take seriously.
In 2011 we carried out another employee opinion survey, in which 80 % of our employees took part. We are proud that, on the whole, our employees are satisfi ed with their working conditions. Th e results will be carefully analysed at all levels and intensively discussed since they indicate where we can make improvements.
In addition, we regularly collect data on how satisfi ed customers are with our services. Th e Kundenmonitor independent market study in 2011 indicated that 95 % of private customers surveyed in Germany were satisfi ed with the Deutsche Post mail and retail outlet service.
Our corporate responsibility rests on the competencies of the company and the experience of our employees. We want to lead the way in innovative and sustainable logistics solutions. Pursuant to our motto "living responsibility", we focus on three areas: GoGreen (environmental protection), GoHelp (disaster management) and GoTeach (promoting education). We are the fi rst global logistics provider to set itself a quantitative carbon effi ciency target. We had set ourselves the goal of improving carbon effi -
Employees, page 82 f.
Corporate responsibility, page 87 ff.
ciency in our own processes by 10 % by 2012 but managed to exceed this target in 2011. To support the programme we have developed our own controlling solution. Carbon emissions are managed and reported by means of defi ned indicators. In recognition of this, Deutsche Post DHL received the fi rst Green Controlling Prize to be awarded by the Péter Horváth Foundation and the Internationaler Controller Verein (international controllers' association). Th e Group was again confi rmed by leading indices as a member on the strength of its commitment to corporate responsibility.
Within the framework of the GoHelp programme, we apply our expertise towards helping people in disaster areas quickly. In this context, our Disaster Response Teams were deployed in New Zealand and El Salvador. In addition, we provided disasterprevention training to the managers of the international airports in Nepal, Bangladesh and Indonesia.
With our GoTeach programme, we take action worldwide to improve education and promote fair opportunities for education. We concluded partnerships with organisations that supply university graduates to work as temporary schoolteachers in underprivileged areas, implemented a scholarship programme for the children of our employees and initiated a partnership with the child-aid organisation SOS Children's Villages.
As part of our commitment to social responsibility, we encouraged our employees to get involved in Global Volunteer Day for the fi rst time in 2011. More than 50,000 of our employees volunteered to help children, young people and the elderly. In addition, we used the Living Responsibility Fund to support our employees' voluntary commitment in local projects.
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 some 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 the health and well-being of our employees as well as equal opportunities and diversity.
We consider the health and safety of our employees to be prerequisites for performance and motivation and a key to the company's continued success. Our global health policy, a multitude of measures to promote health and the numerous awards we have won are a refl ection of the high esteem that our exemplary company health management system has enjoyed for years. In 2011, for the second year in a row, we won the Corporate Health Award in the transport/logistics category granted under the auspices of the German Federal Ministry of Labour and Social Aff airs.
In 2011 Deutsche Post DHL won the fi rst ever German Diversity Award in the Most Diverse Employer category. Concerning the promotion of women to executive positions, in October 2011 Deutsche Post DHL undertook to ensure that women occupied 25 % to 30 % of all upper and middle managerial positions for which there was a vacancy. To achieve this objective, we have already implemented targeted development actions and will supplement our catalogue of measures.
Th e Supervisory Board discussed in detail the Group's diversity strategy, with particular focus on the objective of increasing the number of women on the Board of Management. It sees the eff orts for greater diversity as being part of long-term succession planning, for which the Supervisory Board and Board of Management are jointly responsible. In the opinion of the Supervisory Board, the targeted increase in the number of women in executive positions is necessary to ensure that, overall, more suitable female candidates are available for vacant positions on the Board of Management. Th is will allow the Supervisory Board to give more consideration to women when appointing members to the Board of Management. Th e international composition of the Board of Management already strongly refl ects the global activity of the company.
Th e Code of Conduct is underpinned by two guidelines. Th e anti-corruption policy gives clear instructions on how to handle gift s, benefi ts and off ers of hospitality. Improper payments (bribery) are prohibited. Th e competition compliance policy 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 obliges them to adhere to ethical and ecological standards. A ban on child and forced labour is in place. Salaries and working times must comply with national laws and regulations.
At Deutsche Post DHL, the Chief Compliance Offi cer is responsible for the compliance management system and reports directly to the Chief Financial Offi cer. Important compliance management activities include the process to identify possible compliance risks, the evaluation of business partners with regard to compliance, the procedures for reporting potential breaches of laws or guidelines, policy management and the development and implementation of training and communication measures.
Th e Chief Compliance Offi cer is supported by the Global Compliance Offi ce, which establishes compliance management standards on a Group-wide scale and supports the corresponding activities of the divisions.
In 2011, pursuant to Deutsche Post DHL's continuous review and development of the compliance management system, the position of Divisional Compliance Offi cer was created in all of the four operating divisions. Th ese offi cers report to the board member responsible for the divisions concerned. Th e Divisional Compliance Offi cer supplies input for the Chief Compliance Offi cer's report to the Group's Board of Management, with information on compliance cases and how they are dealt with as well as advances in the development of compliance organisation and processes. Th e Chief Compliance Offi cer is also advised by the Compliance Committee, which is composed of members from the divisions and representatives of certain corporate departments such as Internal Audit and Controlling.
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.
Members, page 130 Mandates, page 132
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, with special meetings being held whenever particular developments or measures need to be discussed or decided quickly. In fi nancial year 2011, the Supervisory Board met for four plenary meetings, 18 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 and decisions 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 should lead to that member's resignation from the Board. In the Supervisory Board's estimation, the Supervisory Board contains a suffi cient number of independent members.
Members, page 129 Mandates, page 132
Page 129
Page 125 ff.
Executive committees prepare decisions to be made by the Board of Management as a whole and make decisions on matters assigned to them. Th eir duties include preparing or deciding on investments and transactions in the various divisions. 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 Management, 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, 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.
For the members of the Board of Management, see Board of Management and mandates held by the Board of Management.
Th e Supervisory Board has formed fi ve committees to ensure effi cient discharge of its duties; in particular, these 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 Executive Committee's duties include arranging the appointment of members of the Board of Management and the establishment of management board remuneration by the plenary meeting of the Supervisory Board. Th e current members of the Executive Committee are Wulf von Schimmelmann (Chair), Andrea Kocsis (Deputy Chair), Rolf Bauermeister, Werner Gatzer, Roland Oetker and Stefanie Weckesser.
Th e Finance and Audit Committee oversees the accounting process, the eff ectiveness of the internal control system, the risk management and internal auditing systems as well as the fi nancial statement audit. It examines questions of compliance and discusses the half-yearly and quarterly fi nancial reports with the Board of Management before they are published. Based on its own preliminary assessment, it makes proposals for the approval of the annual and consolidated fi nancial statements by the Supervisory Board. Th e current members of the Finance and Audit Committee are Hero Brahms (Chair), Wolfgang Abel (Deputy Chair), Werner Gatzer, Th omas Koczelnik, Stefan Schulte and Helga Th iel. 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.
Th e Personnel Committee discusses human resources principles for the Group. Th e Personnel Committee's current members are Andrea Kocsis (Chair), Wulf von Schimmelmann (Deputy Chair), Th omas Koczelnik and Roland Oetker.
Pages 130 and 132
Th e Mediation Committee carries out the duties assigned to it pursuant to the Mitbestimmungsgesetz (MitbestG – German Co-determination Act). Th e current members of the Mediation Committee are Wulf von Schimmelmann (Chair), Andrea Kocsis (Deputy Chair), Rolf Bauermeister and Roland Oetker.
Th e Nomination Committee presents to the shareholder representatives on the Super visory Board recommendations on the choice of members of the Supervisory Board by the AGM. In doing so, it takes into consideration the objectives adopted by the Supervisory Board concerning its composition. Th e current members of the Nomination Committee are Wulf von Schimmelmann (Chair), Werner Gatzer and Roland Oetker.
Information about the work of the Supervisory Board and its committees in fi nancial year 2011 is also contained in the report of the Supervisory Board. You can fi nd information about the members of the Supervisory Board and the composition of the Supervisory Board committees under the sections Supervisory Board and mandates held by the Supervisory Board.
In December 2010, the Supervisory Board determined specifi c goals with regard to its composition:
Th e current composition of the Supervisory Board meets the abovementioned targets. Prof. Dr-Ing. Katja Windt, who was elected by the 2011 AGM, is an established logistics specialist and has an excellent reputation, also in other industries. Her election brought the proportion of women on the Supervisory Board to 30 %. Th e company's international operations are adequately taken into account. Swiss-born Th omas Kunz, recently elected at the 2011 AGM, possesses extensive knowledge and experience gained in his many years as a member of the top management team within the French Danone group.
Pages 129 and 132
Specifi c details of stock option plans and similar share-based incentive schemes off ered by the company, insofar as they concern the Board of Management, are given in the remuneration report.
Senior executives of the Group take part in a global Share Matching Scheme. Within the framework of this plan, executives of grades B to D of our Role Classifi cation System (RCS) must invest 15 %, and may invest up to 50 %, of their annual variable remuneration in Deutsche Post stock at the current share price. Executives of grades E and F may invest up to 50 % of their annual variable remuneration. Aft er a four-year holding period and a corresponding period of affi liation with the Group, the executives receive one bonus share for every Deutsche Post share purchased and continuously held under the plan.
In addition, selected executives receive stock appreciation rights (SAR s) in annual tranches as a long-term remuneration component. Apart from the fact that they do not need to make a personal investment, the structure of this remuneration element corresponds to that described in the remuneration report for the Board of Management.
Th e remuneration report also forms part of the Group Management Report.
Th e total remuneration paid to individual Board of Management members for fi nan cial year 2011 was determined by the Supervisory Board, which held consultations to resolve on the remuneration system for the Board of Management, including the main contractual elements. In so doing it obtained advice from an independent remuneration consultant.
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 and achievements of the individual members. It is set to ensure competitiveness with comparable German and inter national 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 2011 is in line with standard market practice, appropriate to the tasks involved and designed to reward performance; it comprises fi xed (non-performance-related) elements and variable (performancerelated) 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 paid to the Board of Management is predominantly medium and long-term based. Half of the variable remuneration consists of a long-term incentive plan with a four-year calculation period; the other half is made up of an annual bonus linked to the company's yearly profi ts, with 50 % of the annual bonus fl owing into a medium-term component with a three-year calculation period. Th us only 25 % of the variable remuneration component is paid out on the basis of a one-year calculation.
Page 139 ff.
Th e medium-term component described is applicable to all employment contracts and contract renewals entered into aft er the eff ective date of the Gesetz zur Angemessenheit der Vorstandsvergütung (VorstAG – German Act on the Appropriateness of Management Board Remuneration) (5 August 2009). For all contracts concluded prior to that date, 25 % of the annual bonus fl ows into the medium-term component until the cessation of the term of the contract.
Th e amount of 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 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 that have been agreed based on demanding objectives is rewarded with the maximum annual bonus not to 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.
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 2011, 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 on which 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 s not exercised during this two-year period will expire.
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 twenty consecutive trading days prior to the issue date. Th e performance period is the last sixty 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 attributable to the related tranche will expire without replacement or compensation.
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). All contracts concluded since 9 March 2011 contain a clause stipulating that no special remuneration paid may be taken into account in the calculation of the severance payment cap, nor may the value of rights allocated from long-term incentive plans.
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 their Board of Management contract (right to early termination).
Th e contractual provisions stipulate that a change of control exists if a shareholder has acquired control within the meaning of section 29 (2) of the Wertpapiererwerbsund Übernahmegesetz (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 (AktG – 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 (UmwG – 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 Management member has not reached the age of 60 upon leaving the company. If the remaining term of the Board of Management contract is less than two years and the Board of Management member has not reached the age of 62 upon leaving the company, the payment will correspond to the severance payment cap. Th e same applies if a Board of Management contract expires prior to the Board of Management member's reaching the age of 62 because less than nine months remained on the term of the contract at the time of the change of control and the contract was not renewed.
Board of Management members are also subject to a non-compete clause, taking eff ect on the cessation of their contracts. During the one-year non-compete period, former Board of Management members receive 100 % 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. Lawrence Rosen is subject to a non-compete clause eff ective for two years aft er the cessation of his contract. 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 be deducted from the compensation paid during the non-compete 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 in offi ce at 31 December 2011 has been promised any further benefi ts aft er leaving the company.
Hermann Ude's Board of Management contract was rescinded as at the end of 31 March 2011 and he was paid the sum of €2,972,083. Just as with active Board of Management members, the pension capital on his virtual pension account will accrue interest at an annual rate equal to the "iBoxx Corporates AA 10 + Annual Yield" rate, or at an annual rate of 2.25 % at minimum, until his pension benefi ts fall due. Hermann Ude is subject to a non-compete clause and a non-solicitation clause until 31 March 2012. He is being paid a sum of €77,500 each month by way of compensation during this period for a total of €930,000 and will retain possession of the SAR s allocated to him.
Th e remuneration paid to active members of the Board of Management in fi nancial year 2011 totalled €12.05 million (previous year: €11.97 million). Th is amount comprised €7.41 million in non-performance-related components (previous year: €7.07 million) and €4.64 million in the performance-related component paid out (previous year: €4.90 million). An additional €2.32 million of the performance-related component was transferred to the medium-term component and will be paid out in 2014 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 2,771,178 SAR s in fi nancial year 2011 for a total value of €6.96 million (previous year: €4.99 million) at the time of issue (1 July 2011). Th e following table presents the total remuneration paid to active Board of Management members:
| b.05 Remuneration paid to the Group Board of Management in 2011: cash components | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| -- | ---------------------------------------------------------------------------------- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- |
| € | Performance | ||||
|---|---|---|---|---|---|
| Non-performance-related | related | ||||
| Share of annual bonus |
|||||
| Annual | transferred to medium-term |
||||
| Board members | base salary | Fringe benefi ts | Annual bonus | Total | component 2 |
| Dr Frank Appel, Chairman | 1,745,017 | 33,990 | 1,308,804 | 3,087,811 | 436,268 |
| Ken Allen | 835,833 | 119,222 | 626,123 | 1,581,178 | 208,708 |
| Roger Crook (since 9 March 2011) | 579,797 | 142,092 | 290,228 | 1,012,117 | 290,228 |
| Bruce Edwards | 919,902 | 91,758 | 496,451 | 1,508,111 | 421,317 |
| Jürgen Gerdes | 930,000 | 22,906 | 465,000 | 1,417,906 | 465,000 |
| Lawrence Rosen 1 | 860,000 | 19,270 | 645,000 | 1,524,270 | 215,000 |
| Walter Scheurle | 930,000 | 19,892 | 697,500 | 1,647,392 | 232,500 |
| Hermann Ude (until 8 March 2011) | 163,188 | 3,242 | 108,861 | 275,291 | 53,485 |
1 In fi nancial year 2011, an additional €473,000 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 is described in the 2009 Annual Report.
2 This amount will be paid out in 2014 provided the sustainability indicator is fulfi lled.
| € | Value of sar s | Change in value of total sar s granted from 2008 to 2011 |
|
|---|---|---|---|
| Number | on grant date | on 31 Dec. 2011 compared | |
| Active board members | of sar s | (1 July 2011) | with value on grant date |
| Dr Frank Appel, Chairman | 689,502 | 1,730,650 | –2,748,612 |
| Ken Allen | 342,630 | 860,001 | –1,092,314 |
| Roger Crook (since 9 March 2011) | 284,862 | 715,003 | –250,679 |
| Bruce Edwards | 370,518 | 930,000 | –1,753,956 |
| Jürgen Gerdes | 370,518 | 930,000 | –1,753,956 |
| Lawrence Rosen | 342,630 | 860,001 | –1,092,314 |
| Walter Scheurle | 370,518 | 930,000 | –1,753,956 |
| b.07 Remuneration paid to the Group Board of Management in 2010: cash components | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| -- | ---------------------------------------------------------------------------------- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- |
| € | Non-performance-related | Performance related |
|||
|---|---|---|---|---|---|
| Annual | Share of annual bonus transferred to medium-term |
||||
| Board members | base salary | Fringe benefi ts | Annual bonus | Total | component 2 |
| 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 Rosen 1 | 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 |
An additional €1,869,000 was paid out in the fi nancial year 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 2009 Annual Report. 2 This amount will be paid out in 2013 provided the sustainability indicator is fulfi lled.
1
| € 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 |
Dr Frank Appel, Jürgen Gerdes and Walter Scheurle have direct, fi nal-salary based 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 in full. 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. 2011 % |
pension level % |
obligation, fi nancial year 2011 € |
31 Dec. 2011 € |
||||||
| Dr Frank Appel, Chairman | 25 | 50 | 552,899 | 7,180,293 | |||||
| Jürgen Gerdes 1 | 0 | 50 | 166,362 | 3,804,581 | |||||
| Walter Scheurle | 60 | 60 | 651,031 | 8,324,557 | |||||
| Total | 1,370,292 | 19,309,431 |
| b.09 Pension commitments under the previous system in fi nancial year 2011: individual breakdown | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| -- | -- | -- | -- | -- | -- | -- | -- | -------------------------------------------------------------------------------------------------- | -- |
1 Minimum period not yet complete. In the event of benefi ts being paid, the provisions of the previous system will apply.
| b.10 Pension commitments under the previous system in the previous year (2010): individual breakdown | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| -- | ------------------------------------------------------------------------------------------------------ | -- | -- | -- | -- | -- | -- | -- | -- |
| Pension commitments | ||||||||
|---|---|---|---|---|---|---|---|---|
| Pension | Present value | |||||||
| level on | Maximum | Service cost for pension | (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 Gerdes 1 | 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.
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 to a virtual pension account for the Board of Management member concerned. Th e maximum contribution period is 15 years. Since fi nancial year 2010, pension capital has accrued interest at an annual rate equal to the "iBoxx Corporates AA 10 + Annual Yield" rate, or at an annual rate of 2.25 % at minimum, and will continue to do so until the pension benefi ts fall due. Previously, the pension capital accrued interest at the discount rate applicable to pension provisions recognised for tax purposes. 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, taking into account the average "iBoxx Corporates AA 10+ Annual Yield" for the past ten full calendar years as well as the individual data of the surviving dependants and a future pension increase of 1 %.
| € | Total | Present value | |
|---|---|---|---|
| contribution | (dbo) as at | Service cost for pension | |
| for 2011 | 31 Dec. 2011 | obligation, financial year 2011 | |
| Ken Allen | 250,250 | 705,775 | 266,023 |
| Roger Crook (since 9 March 2011) | 187,688 | 189,914 | 0 |
| Bruce Edwards | 301,000 | 1,114,883 | 322,872 |
| Lawrence Rosen | 301,000 | 1,636,856 | 326,478 |
| Hermann Ude (until 8 March 2011) | 677,250 1 | 1,765,277 | 333,183 |
| Total | 1,717,188 | 5,412,705 | 1,248,556 |
The total contribution for 2011 consists of a pro-rata amount for three months in the amount of €75,250 plus the €602,000 credited to Hermann Ude in connection with his departure from the company.
| b.12 Board of Management pension commitments under the new system in the previous year (2010): |
|---|
| individual breakdown |
| € | Total contribution for 2010 |
Present value (dbo) as at 31 Dec. 2010 |
Service cost for pension obligation, financial year 2010 |
|---|---|---|---|
| Ken Allen | 250,250 | 458,199 | 263,643 |
| Bruce Edwards | 301,000 | 804,427 | 320,152 |
| Lawrence Rosen | 301,000 | 1,367,910 | 321,947 |
| Hermann Ude | 250,250 | 1,140,262 | 267,532 |
| Total | 3,770,798 | 1,173,274 |
Benefi ts paid to former members of the Board of Management or their surviving dependants amounted to €7.4 million in fi nancial year 2011 (previous year: €5.7 million). Th e defi ned benefi t obligation (DBO) for current pensions calculated under IFRS s amounted to €57.0 million (previous year: €42.9 million). Th e change (€13.3 million) is due to the greater number of pensioners as their pension benefi ts have fallen due. No additional obligations have been incurred in this context. Rather, the existing obligations due to pension entitlements including the 2011 service costs have decreased to €25.7 million (previous year: €35.4 million).
1
Pursuant to article 17 of the Articles of Association of Deutsche Post AG resolved by the Annual General Meeting, the annual remuneration paid to the members of the Supervisory Board comprises a non-performance-related, i.e., fi xed, component, a variable component geared towards sustainable corporate development and the attendance allowance.
Th e fi xed component has been gradually adjusted to the average fi gure for DAX 30 enterprises. Since 1 January 2011, it has amounted to €40,000 (previous year: €30,000). Th e variable remuneration component for fi nancial year 2011 will amount to €1,000 for each €0.02 by which the consolidated net profi t per share for fi nancial year 2013 exceeds the consolidated net profi t per share for fi nancial year 2010. Th is variable remuneration component will fall due for payment as at the end of the 2014 AGM. Th e variable remuneration component is subject to a cap equal to 50 % of the fi xed component.
Th e Supervisory Board chairman and the Supervisory Board committee chairs receive an additional 100 % of the fi xed and variable remuneration, and the Super visory Board deputy chair 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 chair or deputy chair, for part of the year are remunerated on a pro-rata basis.
Supervisory Board members receive an attendance allowance of €1,000 for each plenary meeting of the Supervisory Board or committee meeting that they attend, as in 2010. Th ey are entitled to reimbursement of 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.
Th e remuneration for 2011 totalled €1,410,000 (previous year: €1,097,000). Th e following table shows the remuneration paid to each Supervisory Board member:
| € | Fixed | Attendance | |
|---|---|---|---|
| Board members | component | allowance | Total |
| Prof. Dr Wulf von Schimmelmann (Chair) | 140,000 | 16,000 | 156,000 |
| Andrea Kocsis (Deputy Chair) | 120,000 | 14,000 | 134,000 |
| Wolfgang Abel | 60,000 | 10,000 | 70,000 |
| Willem van Agtmael (until 25 May 2011) | 15,000 | 1,000 | 16,000 |
| Rolf Bauermeister | 60,000 | 10,000 | 70,000 |
| Hero Brahms | 80,000 | 11,000 | 91,000 |
| Heinrich Josef Busch | 40,000 | 4,000 | 44,000 |
| Werner Gatzer | 80,000 | 16,000 | 96,000 |
| Prof. Dr Henning Kagermann | 40,000 | 3,000 | 43,000 |
| Thomas Koczelnik | 80,000 | 15,000 | 95,000 |
| Anke Kufalt | 40,000 | 4,000 | 44,000 |
| Thomas Kunz (since 25 May 2011) | 25,000 | 2,000 | 27,000 |
| Roland Oetker | 80,000 | 15,000 | 95,000 |
| Harry Roels (until 25 May 2011) | 15,000 | 1,000 | 16,000 |
| Andreas Schädler | 40,000 | 4,000 | 44,000 |
| Sabine Schielmann | 40,000 | 4,000 | 44,000 |
| Dr Ulrich Schröder | 40,000 | 3,000 | 43,000 |
| Dr Stefan Schulte | 60,000 | 9,000 | 69,000 |
| Helga Thiel | 60,000 | 11,000 | 71,000 |
| Elmar Toime | 40,000 | 4,000 | 44,000 |
| Stefanie Weckesser | 60,000 | 10,000 | 70,000 |
| Prof. Dr-Ing. Katja Windt (since 25 May 2011) | 25,000 | 3,000 | 28,000 |
b.13 Remuneration paid to Supervisory Board members in 2011
Th e remuneration system applicable in fi nancial year 2009 provided for performance-related remuneration with a long-term incentive eff ect that would have fallen due for payment as at the end of the 2012 AGM. Th is remuneration component would have been payable (previous year: no payment) in the event of an increase in the consolidated revenue for 2011 compared with 2008. Since this requirement was not met, no performance-related remuneration with long-term incentive eff ect will be paid out for fi nancial year 2009.
| b.14 Remuneration paid to Supervisory Board members in 2010 | |||||||
|---|---|---|---|---|---|---|---|
| -- | ------------------------------------------------------------- | -- | -- | -- | -- | -- | -- |
| € | Fixed | Attendance | |
|---|---|---|---|
| Board members | component | allowance | Total |
| Prof. Dr Wulf von Schimmelmann (Chair) | 105,000 | 16,000 | 121,000 |
| Andrea Kocsis (Deputy Chair) | 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 |
CONSOLIDATED FINANCIAL STATEMENTS 149 – 246
| INCOME STATEMENT | 151 |
|---|---|
| STATEMENT OF COMPREHENSIVE INCOME | 152 |
| BALANCE SHEET | 153 |
| CASH FLOW STATEMENT | 154 |
| STATEMENT OF CHANGES IN EQUITY | 155 |
| BASIS OF PREPARATION | 156 |
|---|---|
| 1 Basis of accounting | 156 |
| 2 Consolidated group | 156 |
| 3 Signifi cant transactions | 160 |
| 4 New developments in international accounting under ifrs s | 161 |
| 5 Adjustment of prior-period amounts | 164 |
| 6 Currency translation | 164 |
| 7 Accounting policies | 164 |
| 8 Exercise of judgement in applying the accounting policies | 170 |
| 9 Consolidation methods | 171 |
| SEGMENT REPORTING | 172 |
|---|---|
| 10 Segment reporting | 172 |
| INCOME STATEMENT DISCLOSURES | 175 |
|---|---|
| 11 Revenue | 175 |
| 12 Other operating income | 175 |
| 13 Materials expense | 175 |
| 14 Staff costs / employees | 176 |
| 15 Depreciation, amortisation and impairment losses | 176 |
| 16 Other operating expenses | 177 |
| 17 Net income from associates | 177 |
| 18 Net other fi nancial income / net other fi nance costs | 177 |
| 19 Income taxes | 178 |
| 20 Consolidated net profi t for the period | 179 |
| 21 Non-controlling interests | 179 |
| 22 Earnings per share | 179 |
| 23 Dividend per share | 179 |
| BALANCE SHEET DISCLOSURES | 180 |
|---|---|
| 24 Intangible assets | 180 |
| 25 Property, plant and equipment | 182 |
| 26 Investment property | 183 |
| 27 Investments in associates | 183 |
| 28 Non-current fi nancial assets | 183 |
| 29 Other non-current assets | 184 |
| 30 Deferred taxes | 184 |
| 31 Inventories | 184 |
| 32 Income tax assets and liabilities | 185 |
| 33 Receivables and other current assets | 185 |
| 34 Current fi nancial assets | 185 |
| 35 Cash and cash equivalents | 185 |
| 36 Assets held for sale and liabilities associated with | |
| assets held for sale | 185 |
| 37 Issued capital | 186 |
| 38 Other reserves | 187 |
| 39 Retained earnings | 188 |
| 40 Equity attributable to Deutsche Post ag shareholders | 189 |
| 41 Non-controlling interests | 189 |
| 42 Provisions for pensions and similar obligations | 189 |
| 43 Other provisions | 195 |
| 44 Financial liabilities | 196 |
| 45 Other liabilities | 198 |
| 46 Trade payables | 199 |
| CASH FLOW DISCLOSURES | 199 |
|---|---|
| 47 Cash fl ow disclosures | 199 |
| OTHER DISCLOSURES | 201 |
|---|---|
| 48 Risks and fi nancial instruments of the Group | 201 |
| 49 Contingent liabilities | 215 |
| 50 Other fi nancial obligations | 215 |
| 51 Litigation | 216 |
| 52 Share-based payment | 217 |
| 53 Related party disclosures | 218 |
| 54 Auditor's fees | 221 |
| 55 Exercise of options under section 264 (3) of the hgb | 222 |
| 56 Declaration of Conformity with the German Corporate | |
| Governance Code | 222 |
| 57 Signifi cant events after the balance sheet date | 222 |
| 58 List of shareholdings | 223 |
INDEPENDENT AUDITOR'S REPORT 246
| € m | 2010 | 2011 | |
|---|---|---|---|
| Note | adjusted 1 | ||
| Revenue | 11 | 51,388 | 52,829 |
| Other operating income | 12 | 2,217 | 2,050 |
| Total operating income | 53,605 | 54,879 | |
| Materials expense | 13 | –29,380 | –30,544 |
| Staff costs | 14 | –16,609 | –16,730 |
| Depreciation, amortisation and impairment losses | 15 | –1,296 | –1,274 |
| Other operating expenses | 16 | – 4,485 | –3,895 |
| Total operating expenses | – 51,770 | – 52,443 | |
| Profi t from operating activities (ebit) | 1,835 | 2,436 | |
| Net income from associates | 17 | 56 | 60 |
| Other fi nancial income | 2,251 | 590 | |
| Other fi nance costs | –1,335 | –1,391 | |
| Foreign currency result | 17 | –36 | |
| Net other fi nancial income / net other fi nance costs | 18 | 933 | – 837 |
| Net fi nancial income / net fi nance costs | 989 | –777 | |
| Profi t before income taxes | 2,824 | 1,659 | |
| Income taxes | 19 | –194 | –393 |
| Consolidated net profi t for the period | 20 | 2,630 | 1,266 |
| attributable to Deutsche Post ag shareholders | 2,541 | 1,163 | |
| attributable to non-controlling interests | 21 | 89 | 103 |
| Basic earnings per share (€) | 22 | 2.10 | 0.96 |
| Diluted earnings per share (€) | 22 | 2.10 | 0.96 |
| 1 Note 5. |
| € m | |||
|---|---|---|---|
| Note | 2010 | 2011 | |
| Consolidated net profi t for the period | 2,630 | 1,266 | |
| Currency translation reserve | |||
| Changes from unrealised gains and losses | 522 | 193 | |
| Changes from realised gains and losses | 20 | –26 | |
| Other changes in retained earnings | |||
| Changes from unrealised gains and losses | 1 | 1 | |
| Changes from realised gains and losses | 0 | 0 | |
| Hedging reserve in accordance with ias 39 | |||
| Changes from unrealised gains and losses | – 67 | – 5 | |
| Changes from realised gains and losses | 109 | 2 | |
| Revaluation reserve in accordance with ias 39 | |||
| Changes from unrealised gains and losses | 6 | –7 | |
| Changes from realised gains and losses | –16 | 0 | |
| Revaluation reserve in accordance with ifrs 3 | |||
| Changes from unrealised gains and losses | –1 | –1 | |
| Changes from realised gains and losses | 0 | 0 | |
| Income taxes relating to components of other comprehensive income | 19 | 1 | –1 |
| Share of other comprehensive income of associates (after tax) | 93 | 10 | |
| Other comprehensive income (after tax) | 668 | 166 | |
| Total comprehensive income | 3,298 | 1,432 | |
| attributable to Deutsche Post ag shareholders | 3,197 | 1,331 | |
| attributable to non-controlling interests | 101 | 101 |
| € m | |||
|---|---|---|---|
| Note | 31 Dec. 2010 | 31 Dec. 2011 | |
| assets | |||
| Intangible assets | 24 | 11,848 | 12,196 |
| Property, plant and equipment | 25 | 6,130 | 6,493 |
| Investment property | 26 | 37 | 40 |
| Investments in associates | 27 | 1,847 | 44 |
| Non-current fi nancial assets | 28 | 3,193 | 729 |
| Other non-current assets | 29 | 465 | 570 |
| Deferred tax assets | 30 | 973 | 1,153 |
| Non-current assets | 24,493 | 21,225 | |
| Inventories | 31 | 223 | 273 |
| Income tax assets | 32 | 223 | 239 |
| Receivables and other current assets | 33 | 8,641 | 9,089 |
| Current fi nancial assets | 34 | 655 | 2,498 |
| Cash and cash equivalents | 35 | 3,415 | 3,123 |
| Assets held for sale | 36 | 113 | 1,961 |
| Current assets | 13,270 37,763 |
17,183 38,408 |
|
| Total assets | |||
| equity and liabilities | |||
| Issued capital | 37 | 1,209 | 1,209 |
| Other reserves | 38 | 1,535 | 1,714 |
| Retained earnings | 39 | 7,767 | 8,086 |
| Equity attributable to Deutsche Post ag shareholders | 40 | 10,511 | 11,009 |
| Non-controlling interests | 41 | 185 | 190 |
| Equity | 10,696 | 11,199 | |
| Provisions for pensions and similar obligations | 42 | 4,513 | 4,445 |
| Deferred tax liabilities | 30 | 215 | 255 |
| Other non-current provisions | 43 | 2,440 | 2,174 |
| Non-current provisions | 7,168 | 6,874 | |
| Non-current fi nancial liabilities | 44 | 6,275 | 1,366 |
| Other non-current liabilities | 45 | 401 | 347 |
| Non-current liabilities | 6,676 | 1,713 | |
| Non-current provisions and liabilities | 13,844 | 8,587 | |
| Current provisions | 43 | 2,259 | 2,134 |
| Current fi nancial liabilities | 44 | 747 | 5,644 |
| Trade payables | 46 | 5,707 | 6,168 |
| Income tax liabilities | 32 | 463 | 570 |
| Other current liabilities | 45 | 4,047 | 4,106 |
| Liabilities associated with assets held for sale | 36 | 0 | 0 |
| Current liabilities | 10,964 | 16,488 | |
| Current provisions and liabilities | 13,223 | 18,622 | |
| Total equity and liabilities | 37,763 | 38,408 |
€ m Note 2010 2011 Consolidated net profi t for the period attributable to Deutsche Post ag shareholders1 2,541 1,163 Consolidated net profi t for the period attributable to non-controlling interests 89 103 Income taxes 194 393 Net other fi nancial income / net other fi nance costs – 933 837 Net income from associates – 56 – 60 Profi t from operating activities (ebit) 1,835 2,436 Depreciation, amortisation and impairment losses 1,296 1,274 Net loss / income from disposal of non-current assets 279 – 54 Non-cash income and expense 27 –7 Change in provisions – 953 – 897 Change in other non-current assets and liabilities –74 – 63 Income taxes paid –301 – 455 Net cash from operating activities before changes in working capital 2,109 2,234 Changes in working capital Inventories 1 –37 Receivables and other current assets –1,258 – 406 Liabilities and other items 1,075 580 Net cash from operating activities 47.1 1,927 2,371 Subsidiaries and other business units –265 58 Property, plant and equipment and intangible assets 198 211 Other non-current fi nancial assets 55 16 Proceeds from disposal of non-current assets –12 285 Subsidiaries and other business units –74 – 84 Property, plant and equipment and intangible assets –1,174 –1,716 Other non-current fi nancial assets –28 – 80 Cash paid to acquire non-current assets –1,276 –1,880 Interest received 55 72 Dividend received 4 0 Current fi nancial assets 1,237 394 Net cash from / used in investing activities 47.2 8 –1,129 Proceeds from issuance of non-current fi nancial liabilities 20 18 Repayments of non-current fi nancial liabilities – 597 –338 Change in current fi nancial liabilities – 64 – 97 Other fi nancing activities 54 – 60 Proceeds from transactions with non-controlling interests 0 0 Cash paid for transactions with non-controlling interests –73 –1 Dividend paid to Deutsche Post ag shareholders –725 –786 Dividend paid to non-controlling interest holders –73 – 99 Purchase of treasury shares –10 –21 Interest paid –183 –163 Net cash used in fi nancing activities 47.3 –1,651 –1,547 Net change in cash and cash equivalents 284 –305 Effect of changes in exchange rates on cash and cash equivalents 67 13 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 3,064 3,415
Cash and cash equivalents at end of reporting period 47.4 3,415 3,123 1 The profi t before income taxes item on the basis of which cash fl ows are calculated has been changed to consolidated net profi t for the period attributable to Deutsche Post ag shareholders to increase transparency. The presentation of the prior-year fi gures has been adjusted. This change did not affect the calculation.
| € m | Other reserves | Equity | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Capital | ias 39 | ifrs 3 revaluation |
Currency translation |
Retained | attributable to Deutsche Post ag |
Non controlling |
|||
| Issued capital | reserves | reserves | reserve | reserve | earnings | shareholders | interests | Total equity | |
| Note | 37 | 38 | 38 | 38 | 38 | 39 | 40 | 41 | |
| 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 |
| Balance at 1 January 2011 | 1,209 | 2,158 | 53 | 6 | – 682 | 7,767 | 10,511 | 185 | 10,696 |
| Capital transactions with owner |
|||||||||
| Dividend | 0 | 0 | 0 | 0 | 0 | –786 | –786 | – 99 | – 885 |
| Transactions with non | |||||||||
| controlling interests | 0 | 0 | 0 | 0 | 0 | – 59 | – 59 | 0 | – 59 |
| Changes in non-controlling interests due to changes |
|||||||||
| in consolidated group Purchase of treasury shares |
0 –2 |
0 0 |
0 0 |
0 0 |
0 0 |
0 –20 |
0 –22 |
3 0 |
3 –22 |
| Share Matching Scheme | |||||||||
| (issuance) | 0 | 33 | 0 | 0 | 0 | 0 | 33 | 0 | 33 |
| Share Matching Scheme (exercise) |
2 | –21 | 0 | 0 | 0 | 20 | 1 | 0 | 1 |
| – 833 | – 96 | – 929 | |||||||
| Total comprehensive income | |||||||||
| Consolidated net profi t | |||||||||
| for the period | 0 | 0 | 0 | 0 | 0 | 1,163 | 1,163 | 103 | 1,266 |
| Currency translation differences |
0 | 0 | 0 | 0 | 165 | 0 | 165 | –2 | 163 |
| Other changes | 0 | 0 | 3 | –1 | 0 | 1 | 3 | 0 | 3 |
| 1,331 | 101 | 1,432 | |||||||
| Balance at 31 December 2011 | 1,209 | 2,170 | 56 | 5 | – 517 | 8,086 | 11,009 | 190 | 11,199 |
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 Handels gesetzbuch (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 Wert papierhandelsgesetz (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 2011, are generally based on the same accounting policies used in the 2010 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 2011 and the adjustment of prior-period amounts disclosed 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 the 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 17 February 2012.
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 2011 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.
| 2010 | 2011 | |
|---|---|---|
| Number of fully consolidated companies ( subsidiaries) |
||
| German | 80 | 76 |
| Foreign | 747 | 754 |
| Number of proportionately consolidated joint ventures |
||
| German | 1 | 1 |
| Foreign | 16 | 13 |
| Number of companies accounted for using the equity method (associates) 1 |
||
| German | 28 | 31 |
| Foreign | 31 | 28 |
The interest in Deutsche Postbank ag has been measured in accordance with ifrs 5 since March 2011.
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 58.
1
| Name | Country | Segment | Interest in % | Date of acquisition |
|---|---|---|---|---|
| Adcloud GmbH ( Adcloud), Cologne |
Germany | 100 | 1 April 2011 | |
| Eurodifarm srl. (Eurodifarm), Lodi |
Italy | supply chain | 100 | 11 May 2011 |
| Standard Forward ing llc (Standard Forwarding), East Moline |
usa | global forwarding, freight |
100 | 1 June 2011 |
| Tag EquityCo Limited (Tag Equity), Grand Cayman |
Cayman Islands |
supply chain | 100 | 11 July 2011 |
| LifeConEx llc (LifeConEx), Plantation |
usa | global forwarding, freight |
100 | 29 July 2011 |
| Post Logistics Australasia, Melbourne (Post Logistics Australasia) |
Australia | supply chain | Asset deal | 1 October 2011 |
In mid-July 2011, Deutsche Post DHL acquired the company Tag EquityCo Limited, Cayman Islands, together with its subsidiaries. Tag Equity is an international provider of marketing execution and production services. Th e company has been assigned to the Williams Lea business unit within the SUPPLY CHAIN segment. Final purchase price allocation is presented in the following tables.
| € m | Carrying | ||
|---|---|---|---|
| amount | Adjustments | Fair value | |
| assets | |||
| Non-current assets | 13 | – | 13 |
| Customer relationships | – | 47 | 47 |
| Brand name | – | 4 | 4 |
| Software | – | 11 | 11 |
| Current assets | 54 | – | 54 |
| Cash and cash equivalents | 5 | – | 5 |
| 72 | 62 | 134 | |
| equity and liabilities | |||
| Non-current liabilities and provisions |
– | – | – |
| Deferred tax liabilities | – | 16 | 16 |
| Current liabilities and provisions | 102 | – | 102 |
| 102 | 16 | 118 | |
| Net assets | 16 |
Th e customer relationships will be amortised over 20 years using the straight-line method, whilst the soft ware will be amortised over fi ve years. Th e brand name has an indefi nite useful life.
| € m | |
|---|---|
| Fair value | |
| Cost | 91 |
| Less net assets | 16 |
| Goodwill | 75 |
Th e transaction costs for this acquisition amounted to € 6 million. In addition, shareholder loans of € 33 million were repaid.
Th e companies contributed € 76 million to consolidated revenue and € 11 million to consolidated EBIT since the date of initial consolidation. Inclusion of the companies as at 1 January 2011 would have aff ected consolidated revenue by adding € 67 million and consolidated EBIT by adding € 8 million.
In the period up to 31 December 2011, Deutsche Post DHL acquired further subsidiaries that did not materially aff ect the Group's net assets, fi nancial position and results of operations, either individually or in the aggregate. Th ese insignifi cant acquisitions are presented in the following:
Adcloud is a specialised provider of internet advertising space marketing and placement services. Eurodifarm is a specialist in the temperature-controlled distribution of pharmaceutical and diag nostic products. Standard Forwarding, a US company in the forwarding business, was acquired in order to expand capacity in the Freight business unit. Deutsche Post DHL acquired all of the shares of its LifeConEx LLC, USA, joint venture, previously held by LCAG USA Inc., USA. Th is company provides end-to-end cold chain logistics services for the life sciences industry. Th e change in the method of consolidation resulted in a gain of € 1.3 million, which is reported in other operating income. Under the terms of an asset deal, DHL Supply Chain Pty. Limited, Australia, has acquired from Post Logistics Australasia assets and liabilities relating to its road freight transport and warehousing and storage services.
| € m | Carrying | ||
|---|---|---|---|
| 1 January to 31 December | amount | Adjustments | Fair value |
| assets | |||
| Non-current assets | 17 | – | 17 |
| Current assets | 25 | – | 25 |
| Cash and cash equivalents | 8 | – | 8 |
| 50 | – | 50 | |
| equity and liabilities | |||
| Non-current liabilities and provisions | 6 | – | 6 |
| Current liabilities and provisions | 40 | – | 40 |
| 46 | – | 46 | |
| Net assets | 4 |
| € m | |
|---|---|
| Fair value | |
| Cost | 63 |
| Less net assets | 4 |
| Plus effects from change in consolidation method | 1 |
| Goodwill | 60 |
Th e transaction costs for the insignifi cant acquisitions amounted to € 2.6 million.
Variable purchase prices, which are given in the table below, were agreed for the acquisitions:
| Period for fi nancial years from / to |
Results range from |
Fair value of payment obligation |
|---|---|---|
| 2011 to 2013 | € 0 to € 25 million |
€ 5.8 million |
| 2011 and 2012 |
unlimited | € 1 million |
| 2011 to 2013 | € 0 to € 3 million |
€ 2 million |
Th e insignifi cant companies contributed € 68 million to consolidated revenue and €–3 million to consolidated EBIT since the date of initial consolidation. Inclusion of the companies as at 1 January 2011 would not have materially aff ected consolidated revenue and consolidated EBIT.
€ 98 million was expended on purchasing subsidiaries in the period up to 31 December 2011, plus a further € 8 million for subsidiaries already acquired in previous years. In addition, Deutsche Post DHL received € 8 million in purchase price adjustments relating to companies acquired in previous years. Th e purchase prices of the acquired companies were paid in cash.
In the period up to 31 December 2010, Deutsche Post DHL acquired two entities that did not materially aff ect 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 | ||
1
| € m | |
|---|---|
| Fair value | |
| Cost | 23 |
| Less net assets | 1 |
| Difference | 22 |
| Less non-controlling interests 1 | 2 |
| Goodwill | 20 |
Non-controlling interests were recognised at their carrying amount.
Inclusion of the companies as at 1 January 2010 would not have materially aff ected consolidated revenue and consolidated EBIT.
A total of € 23 million was spent in fi nancial year 2010 on acquiring subsidiaries and € 51 million for subsidiaries acquired in previous years. Th e purchase prices of the acquired companies were paid in cash. Further information about cash fl ows can be found in Note 47.
Th e disposal and deconsolidation eff ects of companies and business units in fi nancial year 2011 were as follows:
| € m | Exel Transpor | dhl Express | ||
|---|---|---|---|---|
| 1 January to 31 December | tation Services | Canada | Miscellaneous | Total |
| Non-current assets | 0 | 11 | 2 | 13 |
| Current assets | 0 | 2 | 0 | 2 |
| Assets held for sale 1 | 113 | 0 | 18 | 131 |
| Cash and cash equivalents | 0 | 0 | 10 | 10 |
| Assets | 113 | 13 | 30 | 156 |
| Non-current liabilities and provisions | 0 | 0 | 0 | 0 |
| Current liabilities and provisions | 0 | 5 | 11 | 16 |
| Liabilities associated with assets held for sale 1 | 62 | 0 | 11 | 73 |
| Equities and liabilities | 62 | 5 | 22 | 89 |
| Net assets | 51 | 8 | 8 | 67 |
| Total consideration received | 55 | 10 | 2 | 67 |
| Income (+) / expenses (–) from the currency translation reserve | 24 | 1 | 1 | 26 |
| Non-controlling interests | 0 | 0 | 3 | 3 |
| Deconsolidation gain (+) / loss (–) | 28 | 3 | –2 | 29 |
1 Data before deconsolidation.
Disposal gains are shown under other operating income; disposal losses are reported under other operating expenses.
In April 2011, Deutsche Post DHL sold the freight forwarding company Exel Transportation Services Inc., USA, including Exel Trucking Inc., USA, and Exel Transportation Services Inc. (Cana dian Branch), Canada, to the US-based Hub Group. Th e assets and liabilities as at 31 March 2011 were presented as held for sale in accordance with IFRS 5.
At the end of June 2011, DHL Express Canada sold its domestic Canadian express business to TransForce, a transport company. Th e two companies have entered into a ten-year strategic alliance. Th e domestic express business is to be handled by TransForce's Loomis Express subsidiary. DHL Express Canada will continue to provide international express services.
Th e sale of four Chinese companies, the sale of assets of the Australian company Western Australia and the sale of Northern Kope Parcel Express, Australia, are reported in the Miscellaneous column. Th e assets and liabilities had previously been classifi ed in accordance with IFRS 5.
Part of the transport and warehouse services business of DHL Freight Netherlands B. V., the Netherlands, was sold in the third quarter of 2011. Th e eff ects are presented in the Miscellaneous column.
| € m | dhl Express | ||||
|---|---|---|---|---|---|
| dhl Express | France; dhl | dhl Supply | |||
| 1 January to 31 December | uk | Freight France | Chain Austria | Miscellaneous | Total |
| Non-current assets | 0 | 1 | 37 | 1 | 39 |
| Current assets | 0 | 0 | 36 | 0 | 36 |
| Assets held for sale 1 | 54 | 69 | 0 | 5 | 128 |
| Cash and cash equivalents | 0 | 0 | 7 | 0 | 7 |
| Assets | 54 | 70 | 80 | 6 | 210 |
| 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 sale 1 | 39 | 91 | 0 | 2 | 132 |
| Equity and liabilities | 39 | 91 | 66 | 2 | 198 |
| Net assets | 15 | –21 | 14 | 4 | 12 |
| Total consideration received | –26 | –243 | 1 | 4 | –264 |
| Income (+) / expenses (–) from the currency translation reserve | –12 | 0 | 0 | 0 | –12 |
| Deconsolidation gain (+) / loss (–) | – 53 | –222 | –13 | 0 | –288 |
1 Data before deconsolidation.
In March of the previous year, DHL Express UK sold its day-defi nite domestic business. In April, DHL Supply Chain Austria sold parts of its contract logistics operations. Th e sale of DHL Express France's day-defi nite domestic business, and of DHL Freight France's champagne business, 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 together in the Miscellaneous column. Th e deconsolidations resulted in an aggregate loss of € 288 million, which is reported under other operating expenses.
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 | ||
|---|---|---|
| 2010 1 | 2011 1 | |
| balance sheet | ||
| Intangible assets | 97 | 100 |
| Property, plant and equipment | 20 | 24 |
| Receivables and other assets | 64 | 73 |
| Cash and cash equivalents | 16 | 17 |
| Trade payables, other liabilities | 68 | 66 |
| Provisions | 12 | 17 |
| Financial liabilities | 63 | 63 |
| income statement | ||
| Revenue 2 | 260 | 271 |
| Profi t from operating activities (ebit) | 13 | 22 |
| 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, EV Logistics, Canada, AeroLogic GmbH, Germany, and Bahwan Exel LLC, Oman. Shareholdings are disclosed in Note 58.
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. 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.
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 transaction was € 1,493 million as at 31 December 2011. Changes in fair value of € –160 million in 2011 (previous year: € 200 million) are presented in net other fi nancial income / net other fi nance costs; Note 18.
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 2011, the liability amounted to around € 2.9 billion including interest (previous year: € 2.8 billion). 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.
As the planned Postbank sale is expected to occur in the fi rst quarter of 2012, all related non-current assets and liabilities were reported as current assets and liabilities. Th e options have been reported under current fi nancial assets and current fi nancial liabilities since the fi rst quarter of 2011. 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 current fi nancial liabilities along with the interest expense.
Th e remaining 39.5 % interest in Deutsche Postbank AG previously accounted for using the equity method and presented under investments in associates was reclassifi ed as held for sale at the end of February 2011; Note 36.
Th e eff ects of the planned Postbank sale are as follows for 2011:
| Effects of the planned Postbank sale | |||||
|---|---|---|---|---|---|
| -------------------------------------- | -- | -- | -- | -- | -- |
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| balance sheet | ||
| Investments in associates / assets held for sale | 1,797 | 1,916 |
| Non-current / current fi nancial assets | 2,509 | 2,278 |
| Non-current / current fi nancial liabilities | 4,164 | 4,344 |
| income statement | ||
| Net income from associates | 52 | 58 |
| Net other fi nancial income / net other fi nance costs | 1,517 | –359 |
See Note 57 for further developments in relation to the Postbank sale.
Th e following Standards, changes to Standards and Interpretations are required to be applied on or aft er 1 January 2011:
| Effective for fi nancial years beginning on or after |
Signifi cance | |
|---|---|---|
| ias 32 (Financial Instruments: Presentation) | 1 February 2010 | Relevant, not signifi cant |
| Improvements to ifrs s (2010) | 1 July 2010 / 1 January 2011 |
Relevant, not signifi cant |
| ifric 19 (Extinguishing Financial Liabilities with Equity Instruments) |
1 July 2010 | Relevant, not signifi cant |
| ias 24 (Related Party Disclosures) | 1 January 2011 | Early application of partial exemp tion; relevant |
| ifric 14 (Prepayments of a Minimum Funding Requirement) |
1 January 2011 | Relevant, not signifi cant |
Th e amendment to IAS 32 (Financial Instruments: Presentation) regarding the classifi cation of rights issues requires rights, options and warrants on a fi xed number of the entity's own equity instruments for a fi xed amount of any currency to be reported as equity instruments if they are off ered pro rata to all existing owners of the same class of equity instruments. Th e amendments had no material eff ect on the consolidated fi nancial statements.
On 6 May 2010, the IASB issued its minor annual Improvements to IFRS s. Unless otherwise provided for in individual cases, the changes are required to be applied retrospectively for the fi rst time for fi nancial years commencing on or aft er 1 January 2011. Th e changes had no signifi cant infl uence on the consolidated fi nancial statements.
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 eff ects on the consolidated fi nancial statements were insignifi cant.
Th e amendments to IAS 24 (Related Party Disclosures) primarily comprise modifi ed defi nitions, the introduction of a partial exemption from the disclosure requirements for governmentrelated entities and clarifi cation that executory contracts are also reportable transactions. Deutsche Post DHL has applied the partial exemption since 31 December 2010. Th e changes result in additional disclosure requirements.
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 application of the amended Interpretation has no material eff ect on the consolidated fi nancial statements.
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.
| Effective for | ||
|---|---|---|
| fi nancial years | ||
| beginning on | ||
| or after | Signifi cance | |
| Disclosures – Transfers of Financial Assets | Relevant, | |
| (Amendments to ifrs 7) | 1 July 2011 | not signifi cant |
Th e amendments to IFRS 7 (Financial Instruments: Disclosures) concern additional disclosure requirements for transfers of fi nancial assets that should enable users of fi nancial statements to gain a better understanding of the eff ects of risks remaining with the entity. Th e amendments are eff ective for fi nancial years beginning on or aft er 1 July 2011. Th e eff ects on the Group are not signifi cant.
Th e IASB and the IFRIC issued further Standards and Interpretations in fi nancial year 2011 and in previous years whose application is not yet mandatory for fi nancial year 2011. Th e application of these IFRS s is dependent on their adoption by the EU.
| Issue date | Effective for fi nancial years beginning on or after |
Signifi cance | |
|---|---|---|---|
| 12 November | 1 January | ||
| ifrs 9 (Financial Instruments) | 2009 | 2015 | Under review |
| Severe Hyperinfl ation and Removal of Fixed Dates for First-time Adopters (Amendments to ifrs 1) |
20 December 2010 |
1 July 2011 | Irrelevant |
| Deferred Tax: Recovery of Under lying Assets (Amendments to ias 12) |
20 December 2010 |
1 January 2012 |
Under review |
| ifrs 10 (Consolidated Financial Statements) |
12 May 2011 | 1 January 2013 |
Under review |
| ifrs 11 (Joint Arrangements) | 12 May 2011 | 1 January 2013 |
Under review |
| ifrs 12 (Disclosures of Interests in Other Entities) |
12 May 2011 | 1 January 2013 |
Increased disclosure requirements |
| ias 27 (Separate Financial Statements) |
12 May 2011 | 1 January 2013 |
Under review |
| ias 28 (Investments in Associates and Joint Ventures) |
12 May 2011 | 1 January 2013 |
Under review |
| ifrs 13 (Fair Value Measurement) | 12 May 2011 | 1 January 2013 |
Increased disclosure requirements |
| Presentation of Items of Other Comprehensive Income ( Amendments to ias 1) |
16 June 2011 | 1 July 2012 | Relevant, not signifi cant |
| Amendments to ias 19 ( Employee Benefi ts) |
16 June 2011 | 1 January 2013 |
Relevant |
| ifric 20 (Stripping Costs in the Production Phase of a Surface Mine) |
19 October 2011 |
1 January 2013 |
Irrelevant |
| Offsetting Financial Assets and Financial Liabilities (Amendments to ias 32 (Financial Instruments)) |
16 December 2011 |
1 January 2014 |
Under review |
| Disclosures – Offsetting Financial Assets and Financial Liabilities (Amendments to ifrs 7 (Financial Instruments: Disclosures)) |
16 December 2011 |
1 January 2013 |
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 introduced 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 2015. Earlier application is permitted. Th e EU has deferred the decision on whether to endorse this Standard for the time being. Th e corresponding eff ects on the Group of the parts of IFRS 9 that have already been issued are being assessed.
Th e amendment to IAS 12 (Deferred Tax: Recovery of Underlying Assets) introduces a mandatory rebuttable presumption in respect of the treatment of temporary taxable diff erences for investment properties where the fair value model is applied in accordance with IAS 40. Th e new rule is important for countries where the tax rules governing the use and the sale of such assets diff er. As part of this amendment, SIC-21 (Income Taxes – Recovery of Revalued Non-Depreciable Assets) was also incorporated into IAS 12. Th e effects on the consolidated fi nancial statements are being assessed.
IFRS 10 (Consolidated Financial Statements) introduces a uniform defi nition of control for all entities that are to be consolidated in the consolidated fi nancial statements. Th e standard also contains comprehensive requirements on determining a relationship where control exists. IFRS 10 supersedes IAS 27 (Consolidated and Separate Financial Statements) as well as SIC-12 (Consolidation – Special Purpose Entities). Special purpose entities previously consolidated in accordance with SIC-12 are now subject to IFRS 10. Th e eff ects on the Group are currently being assessed.
IFRS 11 (Joint Arrangements) supersedes IAS 31 (Interests in Joint Ventures). Th e previous option to proportionately consolidate for joint ventures has been removed. Changes in the new Standard's terminology and the classifi cation of entities as joint ventures must, however, be considered, and not all joint ventures that are currently subject to proportionate consolidation will have to be accounted for under the equity method in the future. IFRS 11 provides a uniform defi nition of the term "joint arrangements" and distinguishes between joint operations and joint ventures. Th e interest in a joint operation is recognised on the basis of direct rights and obligations, whereas the interest in the profi t or loss of a joint venture must be accounted for under the equity method. Th e mandatory application of the equity method to joint ventures will now follow the requirements of the revised IAS 28 (Investments in Associates and Joint Ventures). Th e eff ects on the Group are currently being assessed.
IFRS 12 (Disclosure of Interests in Other Entities) combines the disclosure requirements for all interests in subsidiaries, joint ventures, associates and unconsolidated structured entities into a single standard. Under IFRS 12, an entity is required to provide quantitative and qualitative disclosures about the types of risks and fi nancial eff ects associated with the entity's interests in other en tities. IFRS 12 results in increased disclosure requirements.
Th e existing standards IAS 27 (Consolidated and Separate Finan cial Statements) and IAS 28 (Investments in Associates) were revised in conjunction with the new standards IFRS 10, IFRS 11 and IFRS 12. IAS 27 (Separate Financial Statements) (revised 2011) now only contains requirements applicable to separate fi nancial statements. IAS 28 was renamed as IAS 28 (Investment in Associates and Joint Ventures) (revised 2011) and the scope of application was extended to include accounting for joint ventures under the equity method. Th e requirements of SIC-13 (Jointly Controlled Entities – Non-Monetary Contributions by Venturers) were incorporated into IAS 28.
On 12 May 2011, IFRS 13 (Fair Value Measurement) was issued, which sets out a uniform, cross-standard framework for the measurement of fair value. In addition, IFRS 13 requires a specifi c presentation of the techniques used to determine fair value. Th e application of the new standard will result in additional disclosure requirements.
Th e amendments to IAS 1 (Presentation of Items of Other Comprehensive Income) require entities in future to classify items presented in other comprehensive income by whether or not they will be reclassifi ed to profi t or loss in subsequent periods (recycling). Th e amendments have no signifi cant eff ect on the consolidated fi nan cial statements.
On 16 June 2011, the IASB issued a revised version of IAS 19 (Employee Benefi ts). Th ese requirements signifi cantly aff ect the recognition and measurement of the cost of defi ned benefi t plans and termination benefi ts. Furthermore, there are corresponding eff ects on the balance sheet and additional disclosure requirements for employee benefi ts. In relation to defi ned benefi t plans, the recognition of actuarial gains and losses (remeasurements) in other comprehensive income for the period, and the future use of a uniform discount rate for provisions for pensions and similar obligations, and for pension assets, are of particular signifi cance. Th e eff ects of the detailed requirements on the recognition of administrative expenses are still being assessed. Th e same applies to the changes in relation to the classifi cation of termination benefi ts.
Th e amendments to IAS 32 (Financial Instruments: Presentation) provide clarifi cation on the conditions for the off setting of fi nancial assets and liabilities in the balance sheet. A right of setoff must be legally enforceable for all counterparties, both in the normal course of business and also in the event of insolvency, and it must exist at the balance sheet date. In addition, the Standard specifi es which gross settlement systems can be regarded as net settlement for this purpose. Th e additions to IFRS 7 arising from these amendments require comprehensive disclosure of the rights of set-off , especially for those rights that do not result in off setting under IFRS s.
Income statement
| € m | 2010 | Adjustments | 2010 adjusted |
|---|---|---|---|
| Revenue | 51,481 | – 93 | 51,388 |
| Materials expense | –29,473 | 93 | –29,380 |
Up until the third quarter of 2011, part of the reduction in income attributable to customer discounts was recognised under materials expense rather than revenue. Th e prior-period amounts were adjusted. No opening balance sheet as at 1 January 2010 is presented because it was not aff ected by the adjustment.
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 2011, currency translation diff erences amounting to € 165 million (previous year: € 533 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 | ||||
|---|---|---|---|---|---|
| 2010 | 2011 | 2010 | 2011 | ||
| Currency | Country | EUR 1 = | EUR 1 = | EUR 1 = | EUR 1 = |
| usd | usa | 1.34 | 1.29 | 1.32 | 1.40 |
| chf | Switzerland | 1.25 | 1.22 | 1.37 | 1.23 |
| gbp | uk | 0.86 | 0.84 | 0.86 | 0.87 |
| sek | Sweden | 8.97 | 8.93 | 9.49 | 9.01 |
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 2011, income of € 185 million (previous year: € 197 million) and expenses of € 189 million (previous year: € 195 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.
Uniform accounting policies are applied to the annual fi nan cial statements of the entities that have been included in the consolid ated fi nancial statements. Th e consolidated fi nancial statements are prepared under the historical cost convention, except where items are required 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 and 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 20 years. Impairment losses are recognised in accordance with the principles described in the section headed Impairment.
Intangible assets that are not aff ected by legal, economic, contractual, or other factors that might restrict their useful lives are considered to have indefi nite useful lives. Th ey are not amortised but are tested for impairment annually or whenever there are indications of impairment. Th ey mainly include brand names from business combinations. 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.
| years | ||
|---|---|---|
| 2010 | 2011 | |
| 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 |
If there are indications of impairment, an impairment test must be carried out; see the section headed Impairment.
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 s 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 investments, the carrying amount of the investment is increased or reduced annually to refl ect the share of earnings, dividends distributed and other changes in the equity of the associates attributable to the investments of Deutsche Post AG or its consolidated subsidiaries. Th e goodwill contained in the carrying amounts of the investments is accounted for in accordance with IFRS 3. Investments in companies accounted for using the equity method are impaired if the recoverable amount falls below the carrying amount.
A fi nancial instrument is any contract that gives rise to a fi 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 nancial income / net fi nance costs. 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 48.2.
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 fi ve and 50 years using the straight-line method. Th e fair value is determined on the basis of expert opinions. Impairment losses are recognised in accordance with the principles described under the section headed Impairment.
Inventories are assets that are held for sale in the ordinary course of business, are in the process of production, or are consumed in the production process or in the rendering of services. Th ey are measured at the lower of cost or net realisable value. Valuation allowances are charged for obsolete inventories and slowmoving goods.
In accordance with IAS 20, government grants are recognised at their fair value only when there is reasonable assurance that the conditions attaching to them will be complied with and that the grants will be received. Th e grants are reported in the income statement and are generally recognised as income over the periods in which the costs they are intended to compensate are incurred. Where the grants relate to the purchase or production of assets, they are reported as deferred income and recognised in the income statement over the useful lives of the assets.
Assets held for sale are assets available for sale in their present condition and whose sale is highly probable. Th e sale must be expected to qualify for recognition as a completed sale within one year of the date of classifi cation. Assets held for sale may consist of individual non-current assets, groups of assets (disposal groups), or components of an entity (discontinued operations). Liabilities intended to be disposed of together with the assets in a single transaction form part of the disposal group or discontinued operation and are also reported separately as liabilities associated with assets held for sale. Assets held for sale are no longer depreciated or amortised, but are recognised at the lower of their fair value less costs to sell and the carrying amount. Gains and losses arising from the remeasurement of individual non-current assets or disposal groups classifi ed as held for sale are reported in profi t or loss from continuing operations until the fi nal date of disposal. Gains and losses arising from the measurement to fair value less costs to sell of discontinued operations classifi ed as held for sale are reported in profi t or loss from discontinued operations. Th is also applies to the profi t or loss from operations and the gain or loss on disposal of these components of an entity.
Cash and cash equivalents comprise cash, demand deposits and other short-term liquid fi nancial assets with an original maturity of up to three months and are carried at their principal amount. Overdraft facilities used are recognised in the balance sheet as amounts due to banks.
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 payments 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 settle ment 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 obligations. 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 are reported under net fi nancial income / net fi nance costs, the other components 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, since early 2001, by the Deutsche Bundes post 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 € 531 million (previous year: € 541 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).
Some of the defi ned benefi t pension plans have been closed to new entrants (e.g., in the UK) or additionally to further increases in benefi ts for existing benefi ciaries (e.g., in the USA); in these cases, there has been a switch to defi ned contribution plans.
In 2011, employer contributions totalling € 198 million were paid in respect of defi ned contribution pension plans for the Group's hourly workers and salaried employees (previous year: € 237 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 10.75 % (previous year: 0.5 % to 11.5 %).
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 priceeffi 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 nan cial 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 30.
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 49.
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 management to make certain assumptions and estimates that may 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. Examples of the main areas where assumptions, estimates and the exercise of management judgement occur are the recognition of provisions for pensions and similar obligations, the calculation of discounted cash fl ows for impairment testing and purchase price allocations, taxes and legal proceedings.
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 present value of the total obligations of pension plans in Germany. For Group companies in the UK, such a change in the discount rate would result in a decrease or increase in the present value of the total obligation of around € 600 million. Since actuarial gains and losses are spread over a number of years 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 have only a partial eff ect or no eff ect at all 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 51. 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 circumstances prevailing and assessments made at the balance sheet date. For the purpose of estimating the future development of the business, a realistic assessment was also made at that date of the economic environment likely to apply in the future to the diff erent sectors and regions in which the Group operates. In the event of developments in this general environment that diverge from the assumptions made, the actual amounts may diff er from the estimated amounts. In such cases, the assumptions made and, where necessary, the carrying amounts of the relevant assets and liabilities are adjusted accordingly.
At the date of preparation of the consolidated fi nancial statements, there is no indication that any signifi cant change in the assumptions and estimates made will be required, so that on the basis of the information currently available it is not expected that there will be any signifi cant adjustments in fi nancial year 2012 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 2011 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 nancial statements in proportion to the interest held in these companies. Proportionate acquisition accounting as well as recognition and measurement of goodwill use the same methods as applied to the consolidation of subsidiaries.
Companies on which the parent can exercise signifi cant infl uence (associates) are accounted for in accordance with the equity method using the purchase method of accounting. Any goodwill is recognised under investments in associates.
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 | global forwarding, | Corporate Center / | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| express | freight | supply chain | Other | Consolidation | Group | |||||||||
| 1 Jan. to 31 Dec. | 2010 1, 2 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 1 | 2011 | 2010 1 | 2011 | 2010 1 | 2011 | 2010 2 | 2011 |
| External revenue | 13,822 | 13,877 | 10,788 | 11,383 | 13,738 | 14,385 | 12,969 | 13,119 | 71 | 65 | 0 | 0 | 51,388 | 52,829 |
| Internal revenue | 91 | 96 | 323 | 383 | 603 | 659 | 92 | 104 | 1,231 | 1,195 | –2,340 | –2,437 | 0 | 0 |
| Total revenue | 13,913 | 13,973 | 11,111 | 11,766 | 14,341 | 15,044 | 13,061 | 13,223 | 1,302 | 1,260 | –2,340 | –2,437 | 51,388 | 52,829 |
| Profi t / loss from operating activities (ebit) |
1,120 | 1,107 | 497 | 927 | 383 | 429 | 231 | 362 | –395 | –389 | –1 | 0 | 1,835 | 2,436 |
| Net income from associates |
0 | 1 | 0 | 0 | 4 | 1 | 0 | 0 | 52 | 58 | 0 | 0 | 56 | 60 |
| Segment assets | 4,100 | 4,325 | 8,323 | 8,663 | 7,727 | 7,931 | 5,959 | 6,314 | 1,167 | 3,167 | –246 | –254 | 27,030 | 30,146 |
| Investments in associates |
8 | 0 | 28 | 28 | 15 | 16 | 0 | 0 | 1,796 | 0 | 0 | 0 | 1,847 | 44 |
| Segment liabilities 3 | 2,875 | 2,919 | 2,525 | 2,699 | 2,777 | 2,944 | 2,863 | 2,924 | 818 | 820 | –188 | –186 | 11,670 | 12,120 |
| Capex | 446 | 433 | 286 | 602 | 102 | 135 | 214 | 252 | 214 | 294 | 0 | 0 | 1,262 | 1,716 |
| Depreciation and amortisation |
315 | 323 | 349 | 331 | 98 | 101 | 285 | 274 | 191 | 195 | 0 | 0 | 1,238 | 1,224 |
| Impairment losses | 17 | 31 | 24 | 6 | 0 | 0 | 4 | 13 | 13 | 0 | 0 | 0 | 58 | 50 |
| Total depreciation, amortisation and impairment losses |
332 | 354 | 373 | 337 | 98 | 101 | 289 | 287 | 204 | 195 | 0 | 0 | 1,296 | 1,274 |
| Other non-cash expenses |
373 | 321 | 792 | 189 | 73 | 108 | 144 | 115 | 58 | 40 | 0 | 0 | 1,440 | 773 |
| Employees 4 | 148,066 | 147,434 | 88,384 | 86,100 | 41,729 | 42,847 | 129,331 | 133,615 | 13,764 | 13,352 | 0 | 0 | 421,274 | 423,348 |
| € m | Europe | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Germany | (excluding Germany) | Americas | Asia Pacifi c | Other regions | Group | |||||||
| 1 Jan. to 31 Dec. | 2010 2 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 2 | 2011 |
| External revenue | 16,434 | 16,743 | 16,951 | 17,475 | 8,888 | 8,808 | 7,147 | 7,611 | 1,968 | 2,192 | 51,388 | 52,829 |
| Non-current assets | 4,085 | 4,465 | 7,198 | 7,313 | 3,261 | 3,376 | 3,231 | 3,361 | 329 | 329 | 18,104 | 18,844 |
| Capex | 733 | 1,057 | 174 | 248 | 210 | 203 | 94 | 152 | 51 | 56 | 1,262 | 1,716 |
1 Adjusted prior-period amounts, see segment reporting disclosures.
2 Adjustment of prior-period amounts, see Note 5.
3 Including non-interest-bearing provisions.
4 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 noncash 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, Global Mail, Retail Outlets and the Pension Service. Eff ective 1 July 2011, the Home Delivery business in Germany was transferred from the SUPPLY CHAIN division to the MAIL division. Th e following companies are aff ected: DHL Home Delivery GmbH, DHL Solutions Großgut GmbH and IT4Logistics AG. Th e aim is to use existing common functions and overlaps to enable selective market targeting and open up new growth opportunities. Th e prior-period amounts 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.
Th e activities of the GLOBAL FORWARDING, FREIGHT division comprise the transportation of goods by rail, road, air and sea. Th e division's business units are Global Forwarding and Freight.
Th e division specialises in contract logistics and provides warehousing and transport services as well as 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 2011, the Home Delivery business in Germany was transferred from the SUPPLY CHAIN division to the MAIL division. Th e following companies are aff ected: DHL Home Delivery GmbH, DHL Solutions Großgut GmbH and IT4Logistics AG. Th e aim is to use existing common functions and overlaps to enable selective market targeting and open up new growth opportunities. Th e prior-period amounts were adjusted accordingly.
In addition to the reportable segments given above, segment reporting comprises the following categories:
Corporate Center / Other 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). Goodwill of €–114 million arising from earlier intra-group transactions was reclassifi ed from Cor porate Center / Other to Consolidation. Th e adjustment had no eff ect on the business segments. Th e prior-period amounts were adjusted accordingly.
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. Goodwill of € –114 million arising from earlier intra-group transactions was reclassifi ed from Corporate Center / Other to Consolidation. Th e adjust ment had no eff ect on the business segments. Th e priorperiod amounts were adjusted accordingly.
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. 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 non-current assets.
Reconciliation of segment amounts to consolidated amounts
| € m | Reconciliation to Group / | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Total for reportable segments | Corporate Center / Other | Consolidation Consolidated amount |
|||||||
| 2010 1 | 2011 | 2010 | 2011 | 2010 1 | 2011 | 2010 1 | 2011 | ||
| External revenue | 51,317 | 52,764 | 71 | 65 | 0 | 0 | 51,388 | 52,829 | |
| Internal revenue | 1,109 | 1,242 | 1,231 | 1,195 | –2,340 | –2,437 | 0 | 0 | |
| Revenue | 52,426 | 54,006 | 1,302 | 1,260 | –2,340 | –2,437 | 51,388 | 52,829 | |
| Other operating income | 1,863 | 1,825 | 1,509 | 1,305 | –1,155 | –1,080 | 2,217 | 2,050 | |
| Materials expense | –30,334 | –31,644 | –1,408 | –1,335 | 2,362 | 2,435 | –29,380 | –30,544 | |
| Staff costs | –15,726 | –15,854 | – 902 | – 894 | 19 | 18 | –16,609 | –16,730 | |
| Other operating expenses | – 4,906 | – 4,429 | – 692 | – 530 | 1,113 | 1,064 | – 4,485 | –3,895 | |
| Depreciation, amortisation and impairment | |||||||||
| losses | –1,092 | –1,079 | –204 | –195 | 0 | 0 | –1,296 | –1,274 | |
| Profi t / loss from operating activities (ebit) | 2,231 | 2,825 | –395 | –389 | –1 | 0 | 1,835 | 2,436 | |
| Net income from associates | 4 | 2 | 52 | 58 | 0 | 0 | 56 | 60 | |
| Net other fi nancial income / net other fi nance costs |
– | – | – | – | – | – | 933 | – 837 | |
| Income taxes | – | – | – | – | – | – | –194 | –393 | |
| Consolidated net profi t for the period | – | – | – | – | – | – | 2,630 | 1,266 | |
| of which attributable to | |||||||||
| Deutsche Post ag shareholders | – | – | – | – | – | – | 2,541 | 1,163 | |
| Non-controlling interests | – | – | – | – | – | – | 89 | 103 |
2010 2011
1 Prior-period amounts adjusted, see Note 5 and segment reporting disclosures.
Reconciliation of segment assets
Non-current fi nancial assets including investments
€ m
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.
Total assets 37,763 38,408 Investment property –37 – 40
in associates – 5,040 –773 Other non-current assets –387 – 454 Deferred tax assets – 973 –1,153 Income tax assets –223 –239 Receivables and other assets –35 –10 Current fi nancial assets – 623 –2,470 Cash and cash equivalents –3,415 –3,123 Segment assets 27,030 30,146 of which Corporate Center / Other1 1,167 3,167 Total for reportable segments1 26,109 27,233 Consolidation1 –246 –254
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 | ||
|---|---|---|
| 2010 | 2011 | |
| Total equity and liabilities | 37,763 | 38,408 |
| Equity | –10,696 | –11,199 |
| Consolidated liabilities | 27,067 | 27,209 |
| Non-current provisions | –7,168 | – 6,874 |
| Non-current liabilities | – 6,676 | –1,713 |
| Current provisions | –298 | –287 |
| Current liabilities | –1,255 | – 6,215 |
| Segment liabilities | 11,670 | 12,120 |
| of which Corporate Center / Other 1 | 818 | 820 |
| Total for reportable segments 1 | 11,040 | 11,486 |
| Consolidation 1 | –188 | –186 |
1 Prior-period amounts adjusted, see segment reporting disclosures.
Prior-period amounts adjusted, see segment reporting disclosures.
1
| € m | ||
|---|---|---|
| 2010 1 | 2011 | |
| Revenue | 51,388 | 52,829 |
1 Prior-period amounts adjusted, see Note 5.
Revenue increased by € 1,441 million (2.8 %) year-on-year to € 52,829 million. Th e increase was due to the following factors:
| € m | |
|---|---|
| 2011 | |
| Organic growth | 2,710 |
| Portfolio changes 1 | – 627 |
| Currency translation effects | – 642 |
| Total | 1,441 |
1 See explanations in Note 2.
As in the prior-year period, there was no revenue in fi nancial year 2011 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 areas are presented in the segment reporting.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Income from the reversal of provisions | 509 | 398 |
| Income from currency translation differences | 197 | 185 |
| Rental and lease income | 173 | 177 |
| Insurance income | 169 | 165 |
| Income from fees and reimbursements | 142 | 143 |
| Income from work performed and capitalised | 124 | 117 |
| Gains on disposal of non-current assets | 55 | 116 |
| Income from the remeasurement of liabilities | 111 | 98 |
| Commission income | 93 | 94 |
| Reversals of impairment losses on receivables and other assets |
81 | 89 |
| Income from prior-period billings | 49 | 49 |
| Income from the derecognition of liabilities | 42 | 34 |
| Income from loss compensation | 21 | 21 |
| Recoveries on receivables previously written off | 11 | 17 |
| Income from derivatives | 16 | 13 |
| Subsidies | 10 | 11 |
| Income from trade-related insurance deductions | 4 | 7 |
| Miscellaneous | 410 | 316 |
| Other operating income | 2,217 | 2,050 |
Other operating income decreased mainly because income from reversals of provisions for restructurings was higher in the previous year.
Amongst other things, gains on disposal of non-current assets include € 28 million in deconsolidation eff ects from the sale of the US-based Exel Transportation Services Group; Note 2.
Subsidies relate to grants for the purchase or production of assets. Th e grants are reported as deferred income and recognised in the income statement over the useful lives of the assets.
Miscellaneous other operating income includes a large number of smaller individual items.
| € m | |
|---|---|
| 2010 | 2011 |
| Goods purchased and held for resale | 1,512 | 1,564 |
|---|---|---|
| Aircraft fuel | 690 | 1,034 |
| Fuel | 744 | 804 |
| Packaging material | 308 | 290 |
| Spare parts and repair materials | 93 | 85 |
| Offi ce supplies | 72 | 69 |
| Other expenses | 91 | 111 |
| 3,510 | 3,957 | |
| Cost of purchased services | ||
| Transportation costs | 17,823 | 18,329 |
| Cost of temporary staff | 1,871 | 1,953 |
| Expenses from non-cancellable leases | 1,693 | 1,640 |
| Maintenance costs | 969 | 974 |
| it services | 652 | 659 |
| Expenses from cancellable leases | 453 | 485 |
| Expenses for the use of Postbank branches | 484 | 450 |
| Commissions paid | 411 | 440 |
| Other lease expenses (incidental expenses) | 184 | 239 |
| Other purchased services 1 | 1,330 | 1,418 |
| 25,870 | 26,587 | |
| Materials expense | 29,380 | 30,544 |
Prior-period amount adjusted, see Note 5.
1
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 | ||
|---|---|---|
| 2010 | 2011 | |
| Wages, salaries and compensation | 13,271 | 13,350 |
| of which expenses under Share Matching Scheme | 33 | 35 |
| of which expenses from 2006 sar Plan / ltip | 21 | 24 |
| Social security contributions | 1,973 | 2,022 |
| Retirement benefi t expenses | 947 | 915 |
| Expenses for other employee benefi ts | 275 | 317 |
| Expenses for severance payments | 143 | 126 |
| Staff costs | 16,609 | 16,730 |
€ 15 million of the expenses under the Share Matching Scheme (previous year: € 17 million) is attributable to cash-settled share-based payments and € 20 million (previous year: € 16 million) to equity-settled transactions.
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.
With the exception of interest unwinding of discounts recognised in net fi nancial income / net fi nance costs, retirement benefi t expenses include 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, 18 and 42.
Th e average number of Group employees in the year under review, broken down by employee group, was as follows:
| 2010 | 2011 | |
|---|---|---|
| Hourly workers and salaried employees | 413,830 | 418,375 |
| Civil servants | 46,866 | 44,421 |
| Trainees | 3,775 | 4,392 |
| Employees | 464,471 | 467,188 |
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 2011 amounted to 423,502 (31 December 2010: 418,946). Th e number of employees at consolidated joint ventures amounted to 1,199 on a proportionate basis (previous year: 1,622).
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Amortisation of intangible assets, excluding the impairment of goodwill |
288 | 306 |
| Depreciation of property, plant and equipment | ||
| Land and buildings (including leasehold improvements) |
190 | 175 |
| Technical equipment and machinery | 228 | 233 |
| Other equipment, operating and offi ce equipment, vehicle fl eet |
432 | 418 |
| Aircraft | 158 | 142 |
| Advance payments | 0 | 0 |
| 1,008 | 968 | |
| 1,296 | 1,274 | |
| Impairment of goodwill | 0 | 0 |
| Depreciation, amortisation and impairment losses |
1,296 | 1,274 |
Depreciation, amortisation and impairment losses declined by € 22 million year-on-year to € 1,274 million. Th is fi gure includes impairment losses of € 50 million (previous year: € 58 million). Th e impairment losses are attributable to the segments as follows:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| 17 | 31 | |
| Intangible assets | 4 | 29 |
| Property, plant and equipment | 13 | 2 |
| of which technical equipment and machinery | 10 | 1 |
| express | 24 | 6 |
| Intangible assets | 1 | 0 |
| Property, plant and equipment | 23 | 6 |
| of which land and buildings | 1 | 0 |
| of which transport equipment | 0 | 2 |
| of which aircraft | 21 | 1 |
| supply chain | 4 | 13 |
| Intangible assets | 1 | 0 |
| Property, plant and equipment | 3 | 13 |
| of which land and buildings (including leasehold improvements) |
2 | 7 |
| of which technical equipment and machinery | 1 | 6 |
| Corporate Center / Other | 13 | 0 |
| Property, plant and equipment | 13 | 0 |
| of which land and buildings | 13 | 0 |
| Impairment losses | 58 | 50 |
Th e impairment losses on intangible assets included in the MAIL segment mainly relate to soft ware that is no longer in use. Th e transport equipment impairment losses disclosed for the EX-PRESS segment are due to the reclassifi cation of the domestic express business in Australia and China as assets held for sale in accordance with IFRS 5; Notes 2 and 36.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Travel and training costs | 323 | 343 |
| Other business taxes | 376 | 315 |
| Cost of purchased cleaning, transport and security services |
287 | 289 |
| Warranty expenses, refunds and compensation payments |
228 | 241 |
| Telecommunication costs | 249 | 234 |
| Advertising expenses | 164 | 220 |
| Write-downs of current assets | 217 | 210 |
| Insurance costs | 124 | 203 |
| Consulting costs | 192 | 198 |
| Expenses from currency translation differences | 195 | 189 |
| Offi ce supplies | 183 | 173 |
| Entertainment and corporate hospitality expenses | 132 | 151 |
| Services provided by the Federal Posts and Telecommunications Agency |
78 | 111 |
| Other public relations expenses | 117 | 93 |
| Expenses for public relations and customer support | 65 | 86 |
| Voluntary social benefi ts | 140 | 80 |
| Expenses from disposal of assets | 421 | 69 |
| Commissions paid | 65 | 63 |
| Legal costs | 207 | 62 |
| Contributions and fees | 41 | 61 |
| Monetary transaction costs | 30 | 33 |
| Prior-period other operating expenses | 17 | 31 |
| Audit costs | 30 | 30 |
| Expenses from derivatives | 71 | 28 |
| Donations | 19 | 17 |
| Additions to provisions | 116 | 9 |
| Miscellaneous | 398 | 356 |
| Other operating expenses | 4,485 | 3,895 |
Th e decrease in other operating expenses is due primarily to the higher losses on the disposal of assets in the previous year. Th ese related to the deconsolidation losses on the sale of business activities in the UK, France 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 | ||
|---|---|---|
| 2010 | 2011 | |
| Net income from associates | 56 | 60 |
Investments in companies on which a signifi cant infl uence can be exercised and which are accounted for using the equity method contributed € 60 million (previous year: € 56 million) to net fi nancial income / net fi nance costs. € 58 million (previous year: € 52 million) of this amount is attributable to Deutsche Postbank AG, which has been accounted for as an associate since March 2009 and measured in accordance with IFRS 5 since March 2011.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Other fi nancial income | ||
| Interest income | 52 | 74 |
| Income from other equity investments and fi nancial | ||
| assets | 7 | 8 |
| Other fi nancial income | 2,192 | 508 |
| 2,251 | 590 | |
| Other fi nance costs | ||
| Interest expenses | –712 | – 660 |
| of which on discounted provisions for pensions | ||
| and other provisions | –362 | –299 |
| Write-downs of fi nancial assets | –102 | – 98 |
| Other fi nance costs | – 521 | – 633 |
| –1,335 | –1,391 | |
| Foreign currency result | 17 | –36 |
| Net other fi nancial income / net other fi nance costs | 933 | – 837 |
Write-downs of fi nancial assets also contain impairments of € 63 million (previous year: € 52 million) in Corporate Center / Other of the equity interest in Deutsche Postbank AG due to the decline in the share price at the time of reclassifi cation as well as a further € 9 million (previous year: € 16 million) impairment in the MAIL segment of the equity-accounted company Unipost Servicios Generales S. L., Spain.
Net fi nancial income / net fi nance costs includes interest income of € 74 million (previous year: € 52 million) as well as interest expense of € 660 million (previous year: € 712 million). Th ese result from fi nancial assets and liabilities that were not measured at fair value through profi t or loss.
Th e main factor aff ecting the net other fi nance costs of € 837 million (previous year: net other fi nancial income of € 933 million) is the planned sale of Postbank. In addition, this item includes the changes in value resulting from the measurement of the Deutsche Postbank shares before and aft er they were reclassifi ed as held for sale in accordance with IFRS 5; Notes 3 and 36.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Interest expense on exchangeable bond | –125 | –130 |
| Interest expense on cash collateral | – 48 | – 50 |
| Net gain / loss on recognition and subsequent measurement of the forward |
1,653 | –160 |
| Net gain / loss on measurements of the option (tranche iii) |
89 | –71 |
| Impairment loss (–) on measurement of shares before reclassifi cation under ifrs 5 |
– 52 | – 63 |
| Impairment loss (–) / reversal of impairment loss (+) on shares under ifrs 5 |
0 | 115 |
| Total | 1,517 | –359 |
Impairment loss (–) / reversal of impairment loss (+) on shares under IFRS 5 comprises impairment losses of € 136 million off set against impairment loss reversals of € 251 million.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Current income tax expense | – 467 | – 565 |
| Current recoverable income tax | 5 | 21 |
| – 462 | – 544 | |
| Deferred tax expense from temporary differences | – 94 | –29 |
| Deferred tax income from tax loss carryforwards | 362 | 180 |
| 268 | 151 | |
| Income taxes | –194 | –393 |
Th e reconciliation to the eff ective income tax expense is shown below, based on consolidated net profi t before income taxes and the expected income tax expense:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Profi t before income taxes | 2,824 | 1,659 |
| Expected income taxes | – 842 | – 494 |
| Deferred tax assets not recognised for initial differences |
27 | 14 |
| Deferred tax assets of German Group companies not recognised for tax loss carryforwards and temporary differences |
430 | 164 |
| Deferred tax assets of foreign Group companies not recognised for tax loss carryforwards and temporary differences |
–77 | 54 |
| Effect of current taxes from previous years | –75 | –106 |
| Tax-exempt income and non-deductible expenses | 311 | – 68 |
| Differences in tax rates at foreign companies | 32 | 43 |
| Income taxes | –194 | –393 |
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 in respect of 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 differences between the carrying amounts in the IFRS fi nancial statements and in the opening tax accounts amounted to € 0.8 billion as at 31 December 2011 (previous year: € 0.9 billion).
Th e eff ects from deferred tax assets of German Group companies not recognised for tax loss carryforwards and temporary diff erences relate primarily to Deutsche Post AG and members of its consolidated tax group. Eff ects from deferred tax assets of foreign companies not recognised for tax loss carryforwards and temporary diff erences relate primarily to the Americas region.
€ 39 million (previous year: € 714 million) of the eff ects from deferred tax assets not recognised for 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 for tax loss carryforwards and of deductible temporary diff erences from a prior period reduced the deferred tax expense by € 144 million (previous year: € 399 million). Eff ects from unrecognised deferred tax assets amounting to € 239 million (previous year: € 634 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 € 881 million (previous year: € 759 million) was recognised in the balance sheet for companies that reported a loss in the previous year or in the current period as, based on tax planning, realisation of the tax asset is probable.
In fi nancial year 2011, 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 € 106 million (previous year: expense of € 75 million).
Th e following table presents the tax eff ects on the components of other comprehensive income:
| € m | |||
|---|---|---|---|
| Before taxes | Income taxes | After taxes | |
| 2011 | |||
| Currency translation reserve | 167 | 0 | 167 |
| Other changes in retained earnings | 1 | 0 | 1 |
| Hedging reserve in accordance with ias 39 |
–3 | 1 | –2 |
| Revaluation reserve in accordance with ias 39 |
–7 | –2 | – 9 |
| Revaluation reserve in accordance with ifrs 3 |
–1 | 0 | –1 |
| Share of other comprehensive income of associates |
10 | 0 | 10 |
| Other comprehensive income | 167 | –1 | 166 |
| 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 |
In fi nancial year 2011, the Group generated a consolidated net profi t for the period of € 1,266 million (previous year: € 2,630 million). Of this fi gure, € 1,163 million (previous year: € 2,541 million) was attributable to Deutsche Post AG shareholders.
Th e net profi t attributable to non-controlling interest holders increased by € 14 million to € 103 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 2011 were € 0.96 (previous year: € 2.10).
| 2010 | 2011 | ||
|---|---|---|---|
| Consolidated net profi t for the period attributable to Deutsche |
|||
| Post ag shareholders | € m | 2,541 | 1,163 |
| Weighted average number of shares outstanding |
number | 1,208,951,725 | 1,208,878,374 |
| Basic earnings per share | € | 2.10 | 0.96 |
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 5,040,103 rights to shares as at the reporting date.
| 2010 | 2011 | ||
|---|---|---|---|
| Consolidated net profi t for the period attributable to Deutsche |
|||
| Post ag shareholders | € m | 2,541 | 1,163 |
| Weighted average number of shares | |||
| outstanding | number | 1,208,951,725 | 1,208,878,374 |
| Potentially dilutive shares 1 | number | 1,122,990 | 1,799,459 |
| Weighted average number of shares | |||
| for diluted earnings 1 | number | 1,210,074,715 | 1,210,677,833 |
| Diluted earnings per share | € | 2.10 | 0.96 |
The adjustment of the prior-year fi gure had no effect on diluted earnings.
1
A dividend per share of € 0.70 is being proposed for fi nancial year 2011. Based on the 1,209,015,874 shares recorded in the commercial register as at 31 December 2011, this corresponds to a dividend distribution of € 846 million. In the previous year the dividend amounted to € 0.65 per share. Further details on the dividend distribution can be found in Note 40.
| € m | Internally generated intangible assets |
Purchased brand names |
Purchased customer lists |
Other purchased intangible assets |
Goodwill | Advance payments and intangible assets under development |
Total |
|---|---|---|---|---|---|---|---|
| Cost | |||||||
| Balance at 1 January 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 January 2011 | 1,087 | 462 | 859 | 1,383 | 11,759 | 92 | 15,642 |
| Additions to consolidated group | 0 | 4 | 49 | 12 | 136 | 0 | 201 |
| Additions | 98 | 0 | 0 | 106 | 4 | 82 | 290 |
| Reclassifi cations | 8 | 0 | 0 | 47 | 0 | – 42 | 13 |
| Disposals | –37 | 0 | 0 | –39 | –34 | –11 | –121 |
| Currency translation differences | 2 | 15 | 32 | 7 | 209 | 1 | 266 |
| Balance at 31 December 2011 | 1,158 | 481 | 940 | 1,516 | 12,074 | 122 | 16,291 |
| Amortisation and impairment losses | |||||||
| Balance at 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 |
| Reversals 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 / 1 January 2011 | 775 | 432 | 396 | 1,065 | 1,093 | 33 | 3,794 |
| Additions to consolidated group | 0 | 0 | 0 | 1 | 0 | 0 | 1 |
| Amortisation | 98 | 0 | 71 | 108 | 0 | 0 | 277 |
| Impairment losses | 28 | 0 | 0 | 1 | 0 | 0 | 29 |
| Reclassifi cations | 0 | 0 | 0 | 1 | 0 | 0 | 1 |
| Reversals of impairment losses | 0 | 0 | 0 | –1 | 0 | 0 | –1 |
| Disposals | –25 | 0 | 0 | –28 | –7 | 0 | – 60 |
| Currency translation differences | 3 | 14 | 18 | 3 | 15 | 1 | 54 |
| Balance at 31 December 2011 | 879 | 446 | 485 | 1,150 | 1,101 | 34 | 4,095 |
| Carrying amount at 31 December 2011 | 279 | 35 | 455 | 366 | 10,973 | 88 | 12,196 |
| Carrying amount at 31 December 2010 | 312 | 30 | 463 | 318 | 10,666 | 59 | 11,848 |
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.
Th e additions to goodwill represent the goodwill of Tag Equity, Eurodifarm, Standard Forwarding, Adcloud and LifeConEx; Note 2.
Of the net disposals of goodwill, € 23 million relates to the Exel Transportation Services Group, € 3 million to DHL Express Canada and € 1 million to the partial disposal of Parcel Direct Group Pty. Ltd.; Notes 2 and 36.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Total goodwill 1 | 10,666 | 10,973 |
| 662 | 687 | |
| mail National | 94 | n. a. |
| mail International | 568 | n. a. |
| express | 4,158 | 4,161 |
| global forwarding, freight | ||
| dhl Global Forwarding | 3,723 | 3,843 |
| dhl Freight | 268 | 280 |
| supply chain | ||
| dhl Supply Chain | 1,647 | 1,699 |
| Williams Lea | 322 | 417 |
1 Goodwill from reconciliation amounts to € –114 million (previous year: € –114 million).
Th e structure of the MAIL CGU has been adjusted compared with the previous year. Th e MAIL National and MAIL International CGU s have been combined in accordance with the criteria set out in IAS 36.68 as they are no longer managed separately by top management. Th e prior-period amount was adjusted on a pro forma basis to assure comparability.
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 planning for EBIT, depreciation / amortization and investment planning adopted by management, as well as changes in net working capital, 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 2012 to 2014. It is supplemented by a perpetual annuity representing the value added from 2015 onwards. Th is is calculated using a longterm growth rate, which is determined for each CGU separately and which is shown in the table below. Th e growth rates applied are based on long-term real growth fi gures for the relevant economies, growth expectations for the relevant sectors and long-term infl ation forecasts for the countries in which the CGU s operate. Th e cash fl ow forecasts are based both on past experience and on the eff ects of the anticipated future general market trend. In addition, the forecasts take into account growth in the respective geographical submarkets and in global trade, and the ongoing trend towards outsourcing logistics activities. Cost trend forecasts 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 | ||
|---|---|---|---|---|
| 2010 | 2011 | 2010 | 2011 | |
| supply chain | ||||
| dhl Supply Chain | 9.5 | 9.2 | 2.5 | 2.5 |
| Williams Lea | 9.7 | 7.8 | 2.0 | 2.0 |
| global forwarding, freight | ||||
| dhl Freight | 9.6 | 9.4 | 2.0 | 2.0 |
| dhl Global Forwarding | 9.5 | 9.2 | 2.5 | 2.5 |
| mail 1 | n. a. | 8.6 | n. a. | 0.5 |
| mail National | 9.2 | n. a. | 0.0 | n. a. |
| mail International | 8.8 | n. a. | 1.0 | n. a. |
| express 2 | 10.6 | n. a. | 2.0 | n. a. |
1 In fi nancial year 2011, the mail National and mail International cgu s were combined in accordance with the criteria set out in ias 36.68.
2 No fi gures given for fi nancial year 2011 due to the application of ias 36.99 in the year under review.
All conditions set out in IAS 36.99 were met for the EXPRESS CGU as at 31 December 2011, with the result that no new detailed calculation was made of the recoverable amount. Th ere was no risk of impairment as at 31 December 2011.
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 2011.
When performing the impairment test, Deutsche Post DHL conducted sensitivity analyses as required by IAS 36.134. Th ese analyses did not reveal any risk of impairment to goodwill.
| € m | Other | ||||||
|---|---|---|---|---|---|---|---|
| equipment, | Advance | ||||||
| Land | Technical equipment |
operating and offi ce |
Vehicle fl eet and transport |
payments and assets under |
|||
| and buildings | and machinery | equipment | Aircraft | equipment | development | Total | |
| Cost | |||||||
| Balance at 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 / 1 January 2011 | 4,613 | 4,416 | 2,481 | 1,433 | 1,969 | 234 | 15,146 |
| Additions to consolidated group | 24 | 18 | 9 | 0 | 6 | 0 | 57 |
| Additions | 60 | 238 | 182 | 36 | 277 | 637 | 1,430 |
| Reclassifi cations | 26 | 128 | 43 | 120 | 63 | – 414 | –34 |
| Disposals | – 87 | –268 | –140 | –120 | –269 | –18 | – 902 |
| Currency translation differences | 28 | 18 | 2 | – 9 | 3 | 7 | 49 |
| Balance at 31 December 2011 | 4,664 | 4,550 | 2,577 | 1,460 | 2,049 | 446 | 15,746 |
| Depreciation and impairment losses | |||||||
| Balance at 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 |
| Reversals 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 / 1 January 2011 | 2,086 | 3,349 | 1,895 | 572 | 1,109 | 5 | 9,016 |
| Additions to consolidated group | 18 | 10 | 5 | 0 | 1 | 0 | 34 |
| Depreciation | 167 | 226 | 209 | 141 | 205 | 0 | 948 |
| Impairment losses | 8 | 7 | 2 | 1 | 2 | 0 | 20 |
| Reclassifi cations | – 6 | –11 | 0 | 0 | 11 | 0 | – 6 |
| Reversals of impairment losses | – 4 | –1 | 0 | 0 | 0 | 0 | – 5 |
| Disposals | –73 | –254 | –129 | –111 | –226 | –2 | –795 |
| Currency translation differences | 22 | 18 | 4 | –7 | 4 | 0 | 41 |
| Balance at 31 December 2011 | 2,218 | 3,344 | 1,986 | 596 | 1,106 | 3 | 9,253 |
| Carrying amount at 31 December 2011 | 2,446 | 1,206 | 591 | 864 | 943 | 443 | 6,493 |
| Carrying amount at 31 December 2010 | 2,527 | 1,067 | 586 | 861 | 860 | 229 | 6,130 |
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.
Th e following assets are carried as non-current assets resulting from fi nance leases:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Land and buildings | 57 | 51 |
| Technical equipment and machinery | 8 | 6 |
| Other equipment, operating and offi ce equipment | 25 | 17 |
| Aircraft | 281 | 249 |
| Vehicle fl eet and transport equipment | 3 | 4 |
| Finance leases | 374 | 327 |
Th e corresponding liabilities from fi nance leases are included under fi nancial liabilities; see Note 44.3.
| € m | 2010 | 2011 |
|---|---|---|
| Cost | ||
| As at 1 January | 45 | 53 |
| Reclassifi cations | 10 | 13 |
| Disposals | –3 | – 5 |
| Currency translation differences | 1 | 0 |
| As at 31 December | 53 | 61 |
| Depreciation | ||
| As at 1 January | 13 | 16 |
| Reclassifi cations | 3 | 5 |
| As at 31 December | 16 | 21 |
| Carrying amount as at 31 December | 37 | 40 |
Rental income for this property amounted to € 3 million (previous year: € 1 million), whilst the related expenses amounted to € 4 million (previous year: € 2 million). Th e fair value amounted to € 90 million (previous year: € 77 million).
Investments in associates changed as follows:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| As at 1 January | 1,772 | 1,847 |
| Changes in Group's share of equity | ||
| Changes recognised in profi t or loss | 56 | 60 |
| Profi t distributions | – 4 | 0 |
| Changes recognised in other comprehensive | ||
| income | 93 | 10 |
| Impairment losses | – 69 | –72 |
| Elimination of intercompany profi ts and losses | –1 | 0 |
| Reclassifi ed to current assets | 0 | –1,801 |
| Carrying amount as at 31 December | 1,847 | 44 |
Investments in associates principally relate to Air Hong Kong Ltd, China, Danzas AEI Emirates LLC, United Arab Emirates and Unipost Servicios Generales S. L., Spain. Th e complete list is shown in Note 58 in the list of shareholdings.
Th e decline in investments in associates is largely due to the reclassifi cation as held for sale at the end of February 2011 of the carrying amount of the investment in Deutsche Postbank AG (€ 1,801 million); Notes 3 and 36.
Further disclosures on impairment losses are contained in Note 18.
Th e following tables show a summary of the aggregate income statements and balance sheets of the associates. Th e amounts do not relate to the shares attributable to Deutsche Post DHL, but are presented based on a notional 100 % shareholding.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Revenue | 8,841 1 | 584 |
| Net profi t for the year | 139 | 4 |
1 For Deutsche Postbank ag, revenue includes interest income, commission income and net trading income.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Assets | 215,179 | 513 |
| Liabilities and provisions | 209,451 | 410 |
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Available-for-sale fi nancial assets | 142 | 172 |
| Loans and receivables | 468 | 428 |
| Assets at fair value through profi t or loss | 2,531 | 94 |
| Held-to-maturity fi nancial assets | 5 | 0 |
| Lease receivables | 47 | 35 |
| Non-current fi nancial assets | 3,193 | 729 |
Th e decrease in assets at fair value through profi t or loss resulted from the reclassifi cation of the put option related to the planned sale of the interest in Deutsche Postbank to Deutsche Bank AG. Th is was reclassifi ed as current due to its maturity date; see also Note 34. 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: € 13 million) were recognised in the income statement because the assets were impaired. € 12 million (previous year: € 10 million) of this amount is attributable to assets at fair value through profi t or loss and € 1 million (previous year: € 3 million) to available-for-sale fi nancial assets.
Compared with the market rates of interest prevailing at 31 December 2011 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 € 15 million (previous year: € 16 million). Th e principal amount of these loans totals € 17 million (previous year: € 22 million).
Details on restraints on disposal are contained in Note 48.2 (Collateral).
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Pension assets | 375 | 453 |
| Miscellaneous | 90 | 117 |
| Other non-current assets | 465 | 570 |
Further information on pension assets can be found in Note 42.
| € m | 2010 | 2011 | ||
|---|---|---|---|---|
| Assets | Liabilities | Assets | Liabilities | |
| Intangible assets | 39 | 210 | 38 | 224 |
| Property, plant and equipment |
85 | 43 | 92 | 44 |
| Non-current fi nancial assets | 13 | 71 | 22 | 54 |
| Other non-current assets | 4 | 50 | 7 | 49 |
| Other current assets | 33 | 18 | 40 | 48 |
| Provisions | 196 | 12 | 269 | 40 |
| Financial liabilities | 332 | 61 | 215 | 75 |
| Other liabilities | 54 | 32 | 115 | 47 |
| Tax loss carryforwards | 499 | – | 681 | – |
| Gross amount | 1,255 | 497 | 1,479 | 581 |
| Netting | –282 | –282 | –326 | –326 |
| Carrying amount | 973 | 215 | 1,153 | 255 |
€ 523 million (previous year: € 387 million) of the deferred taxes on tax loss carryforwards relates to tax loss carryforwards in Germany and € 158 million (previous year: € 112 million) to foreign tax loss carryforwards.
No deferred tax assets were recognised for tax loss carryforwards of around € 12.4 billion (previous year: € 10.9 billion) and for temporary diff erences of around € 2,097 million (previous year: € 2,724 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. A refi ned method for determining unused loss carryforwards was applied for the fi rst time as at the current balance sheet date. Th e prior-period amounts were adjusted. 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 carry forwards will not lapse before 2024.
Deferred taxes have not been recognised for temporary differences of € 572 million (previous year: € 375 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 | Netting | Total | |
| 2011 | ||||
| Deferred tax assets | 571 | 908 | –326 | 1,153 |
| Deferred tax liabilities |
326 | 255 | –326 | 255 |
| 2010 | ||||
| Deferred tax assets | 171 | 1,084 | –282 | 973 |
| Deferred tax liabilities |
98 | 399 | –282 | 215 |
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 | ||
|---|---|---|
| 2010 | 2011 | |
| Raw materials, consumables and supplies | 161 | 170 |
| Finished goods and goods purchased and held | ||
| for resale | 44 | 55 |
| Work in progress | 13 | 28 |
| Spare parts for aircraft | 5 | 20 |
| Advance payments | 0 | 0 |
| Inventories | 223 | 273 |
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Income tax assets | 223 | 239 |
| Income tax liabilities | 463 | 570 |
All income tax assets and liabilities are current and have maturities of less than one year.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Trade receivables | 6,011 | 6,426 |
| Prepaid expenses | 683 | 672 |
| Current tax receivables | 490 | 586 |
| Deferred revenue | 508 | 480 |
| Income from cost absorption | 83 | 86 |
| Creditors with debit balances | 37 | 39 |
| Receivables from sale of assets | 17 | 29 |
| Receivables from Group companies | 35 | 27 |
| Receivables from employees | 31 | 25 |
| Receivables from loss compensation (recourse claims) | 19 | 23 |
| Receivables from insurance business | 20 | 16 |
| Receivables from cash-on-delivery | 13 | 13 |
| Receivables from Bundes-Pensions-Service | ||
| für Post und Telekommunikation e. V. | 14 | 11 |
| Receivables from private postal agencies | 8 | 8 |
| Miscellaneous other assets | 672 | 648 |
| Receivables and other current assets | 8,641 | 9,089 |
Of the tax receivables, € 470 million (previous year: € 388 million) relates to VAT, € 71 million (previous year: € 66 million) to customs and duties, and € 45 million (previous year: € 36 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 | ||
|---|---|---|
| 2010 | 2011 | |
| Available-for-sale fi nancial assets | 420 | 8 |
| Loans and receivables | 150 | 215 |
| Held-to-maturity fi nancial assets | 0 | 0 |
| Financial assets at fair value through profi t or loss | 38 | 2,234 |
| Lease receivables | 47 | 41 |
| Current fi nancial assets | 655 | 2,498 |
Th e increase in assets at fair value through profi t or loss is attributable to the reclassifi cation of the put option related to the planned sale of the interest in Deutsche Postbank; see Note 28.
Of the available-for-sale fi nancial assets, € 8 million (previous year: € 407 million) was measured at fair value. Details on restraints on disposal are contained in Note 48.2 (Collateral).
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Cash equivalents | 2,056 | 1,914 |
| Bank balances | 837 | 751 |
| Cash in transit | 350 | 311 |
| Cash | 28 | 18 |
| Other cash and cash equivalents | 144 | 129 |
| Cash and cash equivalents | 3,415 | 3,123 |
| € m | Assets | Liabilities | ||
|---|---|---|---|---|
| 2010 | 2011 | 2010 | 2011 | |
| Investment in Deutsche Postbank ag (Corporate Center / Other) | 0 | 1,916 | 0 | 0 |
| Deutsche Post ag – real estate (Corporate Center / Other) | 71 | 21 | 0 | 0 |
| Deutsche Post Immobilienentwicklung Grundstücksgesellschaft mbH & Co. Logistikzentren kg, Germany – real estate (Corporate Center / Other) |
25 | 15 | 0 | 0 |
| us Express Aviation, usa – aircraft (express segment) | 12 | 4 | 0 | 0 |
| Miscellaneous | 5 | 5 | 0 | 0 |
| Assets held for sale and liabilities associated with assets held for sale | 113 | 1,961 | 0 | 0 |
As part of the planned sale of Deutsche Postbank shares and in accordance with the contractual arrangements, the shares of Deutsche Postbank AG held by Deutsche Post AG amounting to a 39.5 % interest (86,417,432 shares) were reclassifi ed as held for sale at the end of February 2011. Following reclassifi cation, the investment in Deutsche Postbank is measured in accordance with IFRS 5.
Key fi gures for Deutsche Postbank shares
| 31 Dec. 2010 | 31 Dec. 2011 | ||
|---|---|---|---|
| Fair value of interest | |||
| in Deutsche Postbank | € m | 1,797 | 2,086 |
| Stock market price | € | 20.80 | 24.135 |
In 2010, the write-down of the carrying amount of the investment due to the decline in the share price amounted to € 52 million. In the fi nancial year under review, the last measurement of the carrying amount of the investment prior to its reclassifi cation resulted in an impairment loss of € 63 million. Th is was presented in writedowns of fi nancial assets; see Note 18. Additional write-downs of € 136 million were recognized following the reclassifi cation of the Deutsche Postbank interest to assets held for sale in February 2011. In accordance with IFRS 5.21, any subsequent increase in fair value less costs to sell of the held-for-sale interest in Deutsche Postbank AG must be recognised as a gain, but not in excess of the cumulative impairment loss. All previous write-downs in the total amount of € 251 million were reversed due to the increase in Postbank's share price to € 24.13 as at the end of 2011.
Th e equity item includes € 81 million in income from the IAS 39 revaluation reserve and € 44 million in expenses from the currency translation reserve that are attributable to Deutsche Postbank AG.
Th e partial sale of the Australian domestic express business of Parcel Direct Group Pty Ltd., Australia, was completed for the sale of the assets of Western Australia and Northern Kope. Th e sale of other assets realised € 1 million from the currency translation reserve; see also Note 2.
Of the € 71 million planned property sales by Deutsche Post AG, sales of € 15 million were completed in the fi nancial year and properties worth € 34 million were reclassifi ed back to noncurrent assets.
Deutsche Post Immobilienentwicklung Grundstücksgesellschaft , Germany, still plans to sell two properties. Th ese properties, as well as two other properties, the sale of which has in the meantime been completed, were reclassifi ed in the previous year from property, plant and equipment to assets held for sale. Th e most recent appraisal prior to reclassifi cation had resulted in an impairment loss of € 13 million.
Surplus aircraft capacity that was no longer required following the restructuring of US Express Aviation was classifi ed in accordance with IFRS 5 in the previous year.
KfW Bankengruppe (KfW), see Note 53.1, holds 30.5 % of Deutsche Post AG's share capital. Th e proportion of free fl oat shares amounts to 69.5 %.
| number of shares | ||
|---|---|---|
| 2010 | 2011 | |
| KfW | 368,277,358 | 368,277,358 |
| Free fl oat | 840,738,516 | 840,738,516 |
| Share capital as at 31 December | 1,209,015,874 | 1,209,015,874 |
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.
| € | ||
|---|---|---|
| 2010 | 2011 | |
| As at 1 January | 1,209,015,874 | 1,209,015,874 |
| Treasury shares acquired | –769,794 | –1,676,178 |
| Treasury shares issued | 769,794 | 1,676,178 |
| As at 31 December | 1,209,015,874 | 1,209,015,874 |
Deutsche Post AG acquired 1.67 million shares at a total price of € 21 million, including transaction costs, in a number of transactions in order to settle entitlements due under the 2010 tranche of the bonus programme for executives (Share Matching Scheme). Th e average purchase price per share was € 12.79. Th e acquisition of treasury shares reduced the issued capital.
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.
Th e issued capital increased again when the shares were issued to the executives. Changes in treasury shares are presented in the statement of changes in equity.
| Authorised / contingent capital as at 31 December 2011 | |||||
|---|---|---|---|---|---|
| Amount | |||||
| € m | Purpose | ||||
| Authorised Capital 2009 | 240 | Increase in share capital against cash / non-cash contributions (until 20 April 2014) |
|||
| Contingent Capital 2011 | 75 | Issue of option / conversion rights (24 May 2016) |
On 25 May 2011, the Annual General Meeting resolved to contingently increase the share capital by up to € 75 million to grant option or conversion rights or to settle conversion obligations to the holders of bonds with warrants, convertible bonds and / or income bonds, as well as profi t participation certifi cates (Contingent Capital 2011).
By way of a resolution adopted by the Annual General Meeting on 28 April 2010, the company is authorised to acquire treasury 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 is authorised to acquire treasury shares using derivatives. As at the reporting date in the previous year, Deutsche Post AG did not hold any treasury shares on 31 December 2011.
Th e equity ratio was 29.2 % in fi nancial year 2011 (previous year: 28.3 %). 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. Due to the company's net liquidity, the informa tive value of this key fi gure is limited and it has therefore not been disclosed.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Capital reserves | 2,158 | 2,170 |
| Revaluation reserve in accordance with ias 39 | 86 | 90 |
| Hedging reserve in accordance with ias 39 | –33 | –34 |
| Revaluation reserve in accordance with ifrs 3 | 6 | 5 |
| Currency translation reserve | – 682 | – 517 |
| Other reserves | 1,535 | 1,714 |
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Capital reserves as at 1 January | 2,147 | 2,158 |
| Additions | ||
| Issue of rights under 2009 Share Matching Scheme | 6 | 3 |
| Issue of rights under 2010 Share Matching Scheme | 14 | 17 |
| Issue of rights under 2011 Share Matching Scheme | 0 | 13 |
| Exercise of rights under 2009 Share Matching Scheme | – 9 | 0 |
| Exercise of rights under 2010 Share Matching Scheme | 0 | –21 |
| Capital reserves as at 31 December | 2,158 | 2,170 |
An amount of € 33 million (31 December 2010: € 20 million) was transferred to the capital reserves in the period up to 31 December 2011 for the 2009, 2010 and 2011 tranches of the Share Matching Scheme.
Th e exercise of the rights to shares under the 2010 tranche in April 2011 reduced the capital reserves by € 21 million (previous year: € 9 million for the 2009 tranche) due to the issuance of treasury shares in this amount 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.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| As at 1 January | 7 | 87 |
| Currency translation differences | 1 | 1 |
| Unrealised gains / losses | 5 | – 8 |
| Share of associates | 90 | 13 |
| Realised gains / losses | –16 | 0 |
| Revaluation reserve as at 31 December before tax | 87 | 93 |
| Deferred taxes | –1 | –3 |
| Revaluation reserve as at 31 December after tax | 86 | 90 |
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 | ||
|---|---|---|
| 2010 | 2011 | |
| As at 1 January | –78 | –36 |
| Additions | – 67 | – 4 |
| Disposals in balance sheet (basis adjustment) | 0 | 0 |
| Disposals in income statement | 109 | 1 |
| Hedging reserve as at 31 December before tax | –36 | –39 |
| Deferred taxes | 3 | 5 |
| Hedging reserve as at 31 December after tax | –33 | –34 |
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 € 10 million and unrealised gains totalling € 8 million from the hedging reserve were recognised in operating profi t under other operating expenses (previous year: unrealised losses of € 12 million were recognised in other operating expenses). Th ere were no disposals in net fi nancial income / net fi nance costs in the fi nancial year (previous year: € 97 million). Furthermore, there were no adjusting entries for hedging trans actions related to the acquisition of non-current non-fi nancial assets (previous year: € 0 million). Deferred taxes have been recognised in respect of the hedging reserve.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| As at 1 January | 7 | 6 |
| Changes recognised in other comprehensive income | –1 | –1 |
| Revaluation reserve in accordance with ifrs 3 | ||
| as at 31 December | 6 | 5 |
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.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| As at 1 January | –1,215 | – 682 |
| Changes recognised in profi t or loss | 20 | –26 |
| Changes recognised in other comprehensive income | 513 | 191 |
| Currency translation reserve as at 31 December | – 682 | – 517 |
As well as the undistributed consolidated profi ts generated in prior periods, retained earnings also contain the eff ects from transactions with non-controlling interests. Changes in the reserves during the fi nancial year are also presented in the statement of changes in equity.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| As at 1 January | 6,098 | 7,767 |
| Dividend payment | –725 | –786 |
| Consolidated net profi t for the period | 2,541 | 1,163 |
| Transactions with non-controlling interests | –147 | – 59 |
| Miscellaneous other changes | 0 | 1 |
| Retained earnings as at 31 December | 7,767 | 8,086 |
Th e transactions with non-controlling interests of € 59 million largely relate to an option to acquire the remaining interest (24 %) in DHL Lemuir Logistics Private Limited, India. In addition, the transactions include the acquisition of the remaining 15 % of shares in Trade Clippers Cargo, Bangladesh, and the further acquisition of 45 % of the shares of SNAS Lebanon SARL, Lebanon. Th e transactions with non-controlling interests reported in an amount of € 147 million in the previous year related to the acquisition of the remaining shares in ASTAR Air Cargo Holdings, LLC, USA, which had already been fully consolidated as a special purpose entity.
Retained earnings include the reserve for treasury shares, which changed as follows:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| As at 1 January | 0 | –1 |
| Treasury shares acquired | – 9 | –20 |
| Treasury shares issued | 8 | 20 |
| Reserve for treasury shares as at 31 December | –1 | –1 |
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 2011 amounted to € 11,009 million (previous year: € 10,511 million).
Dividends paid to the shareholders of Deutsche Post AG are based on the net retained profi t of € 1,519 million reported in Deutsche Post AG's annual fi nancial statements in accordance with the Handelsgesetzbuch (HGB – German Commercial Code). Th e amount of € 673 million remaining aft er deduction of the planned total dividend of € 846 million (which corresponds to € 0.70 per share) will be carried forward.
| Total dividend | Dividend per share |
|
|---|---|---|
| € m | € | |
| Dividend distributed in fi nancial year 2011 | ||
| for the year 2010 | 786 | 0.65 |
| Dividend distributed in fi nancial year 2010 | ||
| for the year 2009 | 725 | 0.60 |
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 e information below on pension obligations is generally broken down into the following areas: Germany, UK and Other.
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 31 December 2011 | ||||
| Provisions for pensions and similar obligations | 4,096 | 140 | 209 | 4,445 |
| Pension assets | 0 | 266 | 187 | 453 |
| Net pension provisions | 4,096 | –126 | 22 | 3,992 |
| 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 |
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:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| dhl Sinotrans International Air Courier Ltd., China | 84 | 86 |
| Blue Dart Express Limited, India | 18 | 19 |
| Lemuir Logistics Private Limited, India | 18 | 17 |
| Tradeteam Limited, uk | 18 | 12 |
| Other companies | 47 | 56 |
| Non-controlling interests | 185 | 190 |
Th e majority of the Group's defi ned benefi t obligations relates 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 | usa | |
| 31 December 2011 | |||||
| Discount rate | 4.75 | 4.75 | 4.75 | 2.50 | 4.75 |
| Rate of future salary increase | 2.50 | 3.49 | 2.15 | 2.75 | – |
| Future infl ation rate | 2.00 | 3.00 | 2.00 | 1.50 | – |
| 31 December 2010 | |||||
| Discount rate | 5.00 | 5.50 | 5.00 | 2.75 | 5.50 |
| Rate of future salary increase | 2.50 | 3.44 | 2.57 | 3.00 | – |
| Future infl ation rate | 2.00 | 3.00 | 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:
| % | Other | ||||
|---|---|---|---|---|---|
| Germany | uk | euro zone | Switzerland | usa | |
| 31 December 2011 | |||||
| Average expected return on plan assets | 3.72 | 5.81 | 5.65 | 4.00 | 6.50 |
| 31 December 2010 | |||||
| Average expected return on plan assets | 4.15 | 6.25 | 5.69 | 4.25 | 7.00 |
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.
42.4 Reconciliation of the present value of the defi ned benefi t obligation, the fair value of plan assets and the pension provisions
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 2011 | ||||
| Present value of defi ned benefi t obligation at 31 December for wholly or partly funded benefi ts | 4,097 | 3,943 | 1,640 | 9,680 |
| Present value of defi ned benefi t obligation at 31 December for unfunded benefi ts | 3,377 | 8 | 192 | 3,577 |
| Present value of total defi ned benefi t obligation at 31 December | 7,474 | 3,951 | 1,832 | 13,257 |
| Fair value of plan assets at 31 December | –2,106 | –3,714 | –1,549 | –7,369 |
| Unrecognised gains (+) / losses (–) | –1,272 | –364 | –262 | –1,898 |
| Unrecognised past service cost | 0 | 0 | 0 | 0 |
| Asset adjustment for asset ceiling | 0 | 1 | 1 | 2 |
| Net pension provisions at 31 December | 4,096 | –126 | 22 | 3,992 |
| Pension assets at 31 December | 0 | 266 | 187 | 453 |
| Provisions for pensions and similar obligations at 31 December | 4,096 | 140 | 209 | 4,445 |
| 2010 | ||||
| Present value of defi ned benefi t obligation 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 obligation at 31 December for unfunded benefi ts | 3,272 | 8 | 183 | 3,463 |
| Present value of total defi ned benefi t obligation 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 |
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 2011 | ||||
| Present value of total defi ned benefi t obligation at 1 January | 7,275 | 3,302 | 1,772 | 12,349 |
| Current service cost, excluding employee contributions | 79 | 28 | 35 | 142 |
| Employee contributions | 9 | 14 | 15 | 38 |
| Interest cost | 356 | 177 | 76 | 609 |
| Benefi t payments | – 481 | –168 | – 83 | –732 |
| Past service cost | 13 | 0 | –1 | 12 |
| Curtailments | 0 | 0 | –7 | –7 |
| Settlements | 0 | – 9 | –11 | –20 |
| Transfers | 0 | 2 | 0 | 2 |
| Acquisitions / divestitures | 0 | 3 | 0 | 3 |
| Actuarial gains (–) / losses (+) | 223 | 469 | 15 | 707 |
| Currency translation effects | 0 | 133 | 21 | 154 |
| Present value of total defi ned benefi t obligation at 31 December | 7,474 | 3,951 | 1,832 | 13,257 |
| 2010 | ||||
| Present value of total defi ned benefi t obligation 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 |
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 2011 | ||||
| Fair value of plan assets at 1 January | 2,122 | 3,378 | 1,519 | 7,019 |
| Employer contributions | 160 | 85 | 39 | 284 |
| Employee contributions | 0 | 14 | 15 | 29 |
| Expected return on plan assets | 89 | 200 | 80 | 369 |
| Gains (+) / losses (–) on plan assets | – 65 | 86 | –38 | –17 |
| Benefi t payments | –202 | –167 | –74 | – 443 |
| Transfers | 2 | 2 | 0 | 4 |
| Acquisitions | 0 | 4 | 0 | 4 |
| Settlements | 0 | – 9 | –11 | –20 |
| Currency translation effects | 0 | 121 | 19 | 140 |
| Fair value of plan assets at 31 December | 2,106 | 3,714 | 1,549 | 7,369 |
| 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 |
Th e plan assets are composed of fi xed-income securities (45 %; previous year: 42 %), equities and investment funds (18 %; previous year: 30 %), real estate (17 %; previous year: 19 %), cash and cash equivalents (6 %; previous year: 4 %), insurance contracts (4 %; previous year: 4 %) and other assets (10 %; previous year: 1 %). Other assets primarily comprise alternative investments and overlay mandates for risk-based allocation management, which were used to signifi cantly reduce equity risk in 2011.
79 % (previous year: 79 %) of the real estate has a fair value of € 1,011 million (previous year: € 1,043 million) and is owner-occupied by Deutsche Post AG.
| € m | 2007 | 2008 | 2009 | 2010 | 2011 |
|---|---|---|---|---|---|
| Total | Total | Total | Total | Total | |
| Present value of defi ned benefi t | |||||
| obligations at 31 December | 13,529 | 12,246 | 11,664 | 12,349 | 13,257 |
| Fair value of plan assets | |||||
| at 31 December | –7,772 | – 6,235 | – 6,472 | –7,019 | –7,369 |
| Funded status 1 | 5,757 | 6,011 | 5,192 | 5,330 | 5,888 |
1 The funded status is recognised until fi nancial year 2008 with the amounts of Deutsche Postbank Group included.
| € m | 2007 | 2008 | 2009 | 2010 | 2011 |
|---|---|---|---|---|---|
| Total | Total | Total | Total | Total | |
| Actual return on plan assets | 473 | – 632 | 509 | 475 | 352 |
| Expected return on plan assets | 439 | 415 | 335 | 374 | 369 |
| Experience gains (+) / losses (–) | |||||
| on plan assets 1 | 34 | –1,047 | 174 | 101 | –17 |
1 The experience gains and losses on plan assets are recognised until fi nancial year 2008 with the amounts of the Deutsche Postbank Group included.
| € m | 2007 | 2008 | 2009 | 2010 | 2011 |
|---|---|---|---|---|---|
| Total | Total | Total | Total | Total | |
| Experience gains (+) / losses (–) on defi ned benefi t obligations |
116 | 11 | 61 | 50 | –29 |
| Gains (+) / losses (–) on defi ned benefi t obligations arising |
|||||
| from changes in assumptions | 1,298 | 635 | – 561 | – 455 | – 678 |
| Total actuarial gains (+) / losses (–) on defi ned benefi t |
|||||
| obligations 1 | 1,414 | 646 | – 500 | – 405 | –707 |
| 1 |
Total actuarial gains and losses on defi ned benefi t obligations are recognised until fi nancial year 2008 with the amounts of the Deutsche Postbank Group included.
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 2011 | ||||
| Net pension provisions at 1 January | 4,150 | –39 | 27 | 4,138 |
| Pension expense | 377 | 3 | 46 | 426 |
| Benefi t payments | –279 | –1 | – 9 | –289 |
| Employer contributions | –160 | – 85 | –39 | –284 |
| Employee contributions | 9 | 0 | 0 | 9 |
| Acquisitions / divestitures | 0 | –1 | 0 | –1 |
| Transfers | –1 | 0 | 0 | –1 |
| Currency translation effects | 0 | –3 | –3 | – 6 |
| Net pension provisions at 31 December | 4,096 | –126 | 22 | 3,992 |
| 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 |
Payments amounting to € 572 million are expected with regard to net pension provisions in 2012. Of this amount, € 294 million is attributable to the Group's expected direct pension payments and € 278 million to expected employer contributions to pension funds.
| € m | ||||
|---|---|---|---|---|
| Germany | uk | Other | Total | |
| 2011 | ||||
| Current service cost, excluding employee contributions | 79 | 28 | 35 | 142 |
| Interest cost | 356 | 177 | 76 | 609 |
| Expected return on plan assets | – 89 | –200 | – 80 | –369 |
| Recognised past service cost | 13 | 0 | –1 | 12 |
| Amortisation of unrealised gains (–) / losses (+) | 18 | –2 | 24 | 40 |
| Effects of curtailments | 0 | 0 | – 6 | – 6 |
| Effects of settlements | 0 | 0 | 3 | 3 |
| Effects of asset ceiling | 0 | 0 | – 5 | – 5 |
| Pension expense | 377 | 3 | 46 | 426 |
| 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 |
€ 186 million (previous year: € 169 million) of the entire pension expense was included in staff costs in 2011, and € 240 million (previous year: € 243 million) was included in net other fi nancial income / net other fi nance costs.
| € m | Non-current | Current | Total | |||
|---|---|---|---|---|---|---|
| 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | |
| Other employee benefi ts | 924 | 779 | 259 | 274 | 1,183 | 1,053 |
| Restructuring provisions | 696 | 603 | 452 | 328 | 1,148 | 931 |
| Technical reserves (insurance) | 374 | 398 | 179 | 190 | 553 | 588 |
| Postage stamps | 0 | 0 | 450 | 450 | 450 | 450 |
| Miscellaneous provisions | 446 | 394 | 919 | 892 | 1,365 | 1,286 |
| 2,440 | 2,174 | 2,259 | 2,134 | 4,699 | 4,308 |
| € m | Other employee benefi ts |
Restructuring provisions |
Technical reserves (insurance) |
Postage stamps |
Miscellaneous provisions |
Total |
|---|---|---|---|---|---|---|
| As at 1 January 2011 | 1,183 | 1,148 | 553 | 450 | 1,365 | 4,699 |
| Changes in consolidated group | 0 | 0 | –1 | 0 | 4 | 3 |
| Utilisation | – 535 | –277 | – 63 | – 450 | – 599 | –1,924 |
| Currency translation differences | 8 | 20 | 5 | 0 | 10 | 43 |
| Reversal | – 92 | – 97 | – 4 | 0 | –204 | –397 |
| Unwinding of discount | 21 | 17 | 8 | 0 | 11 | 57 |
| Reclassifi cation | 0 | 3 | –2 | 0 | –1 | 0 |
| Additions | 468 | 117 | 92 | 450 | 700 | 1,827 |
| As at 31 December 2011 | 1,053 | 931 | 588 | 450 | 1,286 | 4,308 |
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 | ||
|---|---|---|
| 2010 | 2011 | |
| Tax provisions | 404 | 384 |
| Litigation costs | 121 | 134 |
| Risks from business activities | 135 | 105 |
| Postal Civil Service Health Insurance Fund | 33 | 31 |
| Assistance payments to civil servants | 20 | 18 |
| Miscellaneous other provisions | 652 | 614 |
| Miscellaneous provisions | 1,365 | 1,286 |
Of the tax provisions, € 264 million (previous year: € 273 million) relates to VAT, € 4 million (previous year: € 17 million) to customs and duties, and € 116 million (previous year: € 114 million) to other tax provisions.
Risks from business activities comprise obligations such as expected loss and warranty obligations. Miscellaneous other provisions include a large number of individual items.
Th e subsidies for the Postal Civil Service Health Insurance Fund in the amount of € 19 million (previous year: € 21 million) previously reported as staff -related provisions were disclosed together with the provision for the Postal Civil Service Health Insurance Fund in the year under review. Th e prior-period amounts were adjusted.
Th e maturity structure of the provisions recognised in fi nancial year 2011 is as follows:
| € m | Less | More than 1 year |
More than 2 years |
More than 3 years |
More than 4 years |
More | |
|---|---|---|---|---|---|---|---|
| than 1 year | to 2 years | to 3 years | to 4 years | to 5 years | than 5 years | Total | |
| 2011 | |||||||
| Other employee benefi ts | 274 | 229 | 155 | 104 | 77 | 214 | 1,053 |
| Restructuring provisions | 328 | 109 | 403 | 15 | 12 | 64 | 931 |
| Technical reserves (insurance) | 190 | 166 | 79 | 49 | 33 | 71 | 588 |
| Postage stamps | 450 | 0 | 0 | 0 | 0 | 0 | 450 |
| Miscellaneous provisions | 892 | 159 | 71 | 28 | 18 | 118 | 1,286 |
| 2,134 | 663 | 708 | 196 | 140 | 467 | 4,308 | |
| € m | Non-current | Current | Total | |||
|---|---|---|---|---|---|---|
| 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | |
| Bonds | 1,682 | 963 | 0 | 696 | 1,682 | 1,659 |
| Due to banks | 44 | 6 | 315 | 157 | 359 | 163 |
| Finance lease liabilities | 183 | 148 | 27 | 27 | 210 | 175 |
| Liabilities to Group companies | 27 | 65 | 110 | 37 | 137 | 102 |
| Liabilities recognised at fair value through profi t or loss | 15 | 11 | 100 | 126 | 115 | 137 |
| Other fi nancial liabilities | 4,324 | 173 | 195 | 4,601 | 4,519 | 4,774 |
| Financial liabilities | 6,275 | 1,366 | 747 | 5,644 | 7,022 | 7,010 |
Th e following table contains further details on the company's most signifi cant bonds. Th e bonds issued by Deutsche Post Finance B. V. are fully guaranteed by Deutsche Post AG.
| 2010 | 2011 | ||||||
|---|---|---|---|---|---|---|---|
| Nominal | Carrying amount |
Fair value | Carrying amount |
Fair value | |||
| coupon | Issue volume | Issuer | € m | € m | € m | € m | |
| Bond 2002 / 2012 | 5.125 % | € 679 million | Deutsche Post Finance b. v. | 713 | 718 | 696 | 698 |
| Bond 2003 / 2014 | 4.875 % | € 926 million | Deutsche Post Finance b. v. | 954 | 992 | 948 | 984 |
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 2010 |
Carrying amount 2011 |
||||
|---|---|---|---|---|---|
| Bank | Interest rate | End of term | € m | € m | |
| Deutsche Post International b. v., Netherlands | European Investment Bank, Luxembourg | 4.923 % | 12 / 2011 | 123 | 0 |
| 3-month | |||||
| Deutsche Post International b. v., Netherlands | European Investment Bank, Luxembourg | fl oater | 06 / 2011 | 8 | 0 |
| Deutsche Post International b. v., Netherlands | European Investment Bank, Luxembourg | 5.81 % | 02 / 2011 | 7 | 0 |
| Other | 221 | 163 | |||
| 359 | 163 |
All liabilities due to the European Investment Bank, Luxembourg, expired in the reporting period. Th e remaining liabilities of € 163 million mainly comprise current overdraft facilities due to various banks.
Finance lease liabilities mainly relate to the following items:
| 2010 | 2011 | |||||
|---|---|---|---|---|---|---|
| Leasing partner | Interest rate | End of term | Asset | € m | € m | |
| Deutsche Post Immobilien GmbH, Germany | Lorac Investment Management Sarl |
6 % | 2016 | Real estate | 11 | 9 |
| dhl Express (us) Inc., usa | Wachovia Financial Services; Wells Fargo |
6.74 % | 2019 / 2022 | Sorting system software |
36 | 36 |
| scm Supply Chain Management Inc., Canada | Bank of Nova Scotia | variable | 2012 / 2013 | Warehouse, offi ce equipment |
34 | 22 |
| Deutsche Post ag, Germany | t-Systems International GmbH, Germany |
6.5 % | 2015 | it equipment | 15 | 10 |
Th e leased assets are recognised in property, plant and equipment at carrying amounts of € 327 million (previous year: € 374 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 € 198 million (previous year: € 234 million).
| € m | Present value (fi nance lease liabilities) |
Minimum lease payments (notional amount) |
||
|---|---|---|---|---|
| 2010 | 2011 | 2010 | 2011 | |
| Less than 1 year | 27 | 27 | 33 | 35 |
| More than 1 year to 5 years | 108 | 70 | 120 | 77 |
| More than 5 years | 75 | 78 | 81 | 86 |
| Total | 210 | 175 | 234 | 198 |
Th e amounts reported under this item relate to the negative fair values of derivative fi nancial instruments.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Financial liabilities at fair value through profi t | ||
| or loss | 115 | 137 |
| € m | |||
|---|---|---|---|
| 2010 | 2011 | ||
| Mandatory exchangeable bond (with accrued interest) |
Deutsche Post ag |
2,796 | 2,926 |
| Other liabilities related to the planned sale of Deutsche Postbank |
Deutsche | ||
| shares | Post ag | 1,368 | 1,418 |
| Loan notes due to Exel's existing shareholders |
Deutsche Post ag |
40 | 0 |
| Miscellaneous fi nancial liabilities | Other Group companies |
315 | 430 |
| Other fi nancial liabilities | 4,519 | 4,774 |
Th e other fi nancial liabilities mainly result from the transactions related to the planned sale of Deutsche Postbank shares. Th e fi nancial 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 3.
| € m | Non-current | Current | Total | |||
|---|---|---|---|---|---|---|
| 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | |
| Other liabilities | 401 | 347 | 4,047 | 4,106 | 4,448 | 4,453 |
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Tax liabilities | 884 | 954 |
| Incentive bonuses | 609 | 592 |
| Compensated absences | 385 | 401 |
| Deferred income, of which non-current: 76 (previous year: 73) |
323 | 336 |
| Wages, salaries, severance payments | 288 | 292 |
| Payables to employees and members of executive bodies |
165 | 227 |
| Liabilities from the sale of residential building loans, of which non-current: 221 (previous year: 273) |
278 | 223 |
| Social security liabilities | 181 | 152 |
| Debtors with credit balances | 116 | 124 |
| Overtime claims | 100 | 102 |
| cod liabilities | 58 | 76 |
| Other compensated absences | 70 | 63 |
| Accrued rentals | 23 | 27 |
| Liabilities from cheques issued | 20 | 21 |
| Liabilities from loss compensation | 15 | 17 |
| Accrued insurance premiums for damages and similar liabilities |
19 | 16 |
| Insurance liabilities | 13 | 9 |
| Miscellaneous other liabilities, of which non-current: 50 (previous year: 55) |
901 | 821 |
| 4,448 | 4,453 |
Of the tax liabilities, € 523 million (previous year: € 504 million) relates to VAT, € 280 million (previous year: € 252 million) to customs and duties, and € 151 million (previous year: € 128 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.
Miscellaneous other liabilities include a large number of individual items.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Less than 1 year | 4,047 | 4,106 |
| More than 1 year to 2 years | 43 | 38 |
| More than 2 years to 3 years | 15 | 34 |
| More than 3 years to 4 years | 13 | 13 |
| More than 4 years to 5 years | 30 | 11 |
| More than 5 years | 300 | 251 |
| Maturity structure of other liabilities | 4,448 | 4,453 |
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 or 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 in the amount of € 33 million (previous year: € 35 million).
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Trade payables | 5,707 | 6,168 |
€ 955 million of the trade payables (previous year: € 844 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 is prepared in accordance with IAS 7 (Statement of Cash Flows) 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.
Cash fl ows from operating activities are calculated by adjusting consolidated net profi t / loss for tax expenses, 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 before changes in working capital increased by € 125 million year-on-year to € 2,234 million. Th is is largely due to the markedly improved EBIT, which rose by € 601 million to € 2,436 million. Th e depreciation, amortisation and impairment losses contained in EBIT are non-cash eff ects and are therefore adjusted. Th ey decreased from € 1,296 million to € 1,274 million. Th e gains on the disposal of non-current assets of € 54 million are not attributable to operating activities. Th ey have therefore been adjusted in the net loss from the disposal of noncurrent assets and are presented instead in the cash fl ows from investing activities. In the previous year, losses from the disposal of non-current assets of € 279 million were incurred, primarily as a result of the sale of business units in the UK, France and Austria. Th e reduction in working capital led to a cash infl ow of € 137 million, in particular because receivables and other assets rose by less than in the previous year. In the comparative period, the rise in working capital resulted in cash outfl ows of € 182 million. In the reporting period, net cash from operating activities increased by € 444 million from € 1,927 million to € 2,371 million.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Expense from remeasurement of assets | 103 | 91 |
| Income from remeasurement of liabilities | –145 | –108 |
| Income (previous year: expense) from disposal of | ||
| assets | 51 | – 8 |
| Staff costs relating to Share Matching Scheme | 16 | 20 |
| Miscellaneous | 2 | –2 |
| Non-cash income and expense | 27 | –7 |
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.
Investing activities resulted in a cash outfl ow of € 1,129 million in the year under review, compared to a cash infl ow of € 8 million in the previous year. Divestitures of non-current assets, especially property, plant and equipment, and intangible assets, led to a cash infl ow of € 285 million. In the previous year, the sale of business units outlined previously was the main contributing factor to cash outfl ows in this area. Investments in non-current assets rose markedly by € 604 million to € 1,880 million. In particular, signifi cant investments were made in expanding the infrastructure in Europe and Asia, the IT systems and the aircraft fl eet. Th e change in current fi nancial assets contributed a cash infl ow of € 394 million largely due to the sale of money market funds. Th is is € 843 million lower than in the previous year, in which the sale of money market funds led to a cash infl ow of € 1,200 million.
Th e following assets were acquired and liabilities assumed as a result of company acquisitions; see also Note 2:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Non-current assets | 0 | 92 |
| Current assets (excluding cash and cash equivalents) | 1 | 79 |
| Provisions | 0 | 22 |
| Other liabilities | 0 | 142 |
Free cash fl ow is a combination of net cash provided by operating activities and net cash used in investing activities. In the past, free cash fl ow was aff ected by signifi cant fl uctuations in fi nancial assets. Th e calculation was adjusted to increase the informative value of this indicator for operating purposes, as outlined in the following table:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Net cash from operating activities | 1,927 | 2,371 |
| Sale of property, plant and equipment, and intangible assets |
198 | 211 |
| Acquisition of property, plant and equipment, and intangible assets |
–1,174 | –1,716 |
| Cash outfl ow arising from change in property, plant and equipment, and intangible assets |
– 976 | –1,505 |
| Disposals of subsidiaries and other business units | –265 | 58 |
| Acquisition of subsidiaries and other business units | –74 | – 84 |
| Cash outfl ow arising from acquisitions / divestitures | –339 | –26 |
| Interest received | 55 | 72 |
| Interest paid | –183 | –163 |
| Net interest paid | –128 | – 91 |
| Free cash fl ow | 484 | 749 |
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. Although the cash outfl ow arising from the change in property, plant and equipment, and intangible assets rose considerably, a reduced cash outfl ow arising from acquisitions or divestitures, and in particular a much improved EBIT, led to a noticeable increase in free cash fl ow from € 484 million in the previous year to € 749 in the year under review.
Net cash used in fi nancing activities of € 1,547 million was € 104 million lower than in the previous year. Once again, the dividend payment to the shareholders of Deutsche Post AG, which rose by € 61 million to € 786 million, was the largest payment in this area. In contrast, repayments of non-current liabilities were lower and declined from € 597 million to € 338 million in the reporting period. Th e previous year was particularly aff ected by the repayment of a municipal bond in the amount of € 178 million in the United States. Also in the previous year, the acquisition of the remaining shares in the air cargo company Astar Air Cargo led to payments for transactions with non-controlling interests that were not matched by equivalent payments in the year under review. Interest paid was reduced by € 20 million to € 163 million.
Th e cash infl ows and outfl ows described above produced cash and cash equivalents of € 3,123 million; see Note 35. Th is represents a year-on-year reduction of € 292 million. Currency translation diff erences of € 13 million had an off setting eff ect.
As a result of its operating activities, the Group is exposed to fi nancial risks that may arise from changes in exchange rates, commodity prices and interest rates. Th e Group manages these risks centrally through the use of non-derivative and derivative fi nancial instruments. Derivatives are used exclusively to mitigate nonderivative fi nancial risks, and fl uctuations in their fair value may not be assessed separately from the underlying transaction.
Th e Group's internal risk guidelines govern the universe of actions, responsibilities and controls regarding the use of derivatives. Financial transactions are recorded, assessed and processed using proven risk management soft ware, which regularly documents the eff ectiveness of hedging relationships. To limit counterparty risk from fi nan cial 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. Financial instruments are accounted for in accordance with IAS 39.
Th e ultimate objective of central liquidity management is to secure the solvency of Deutsche Post DHL and its Group companies at all times. To achieve this objective, liquidity in the Group is centralised as much as possible in cash pools and managed in the Corporate Center.
Th e centrally available liquidity reserves (funding availability), consisting of central short-term fi nancial investments and committed credit lines, are the key control parameter. Th e target is to have at least € 2 billion available in central credit lines.
Th e Group had central liquidity reserves of € 3.8 billion (previous year: € 4.6 billion) at the reporting date, consisting of central fi nancial investments amounting to € 1.8 billion plus a syndicated credit line of € 2 billion.
Th e maturity structure of primary fi nancial liabilities within the scope of IFRS 7 based on cash fl ows is as follows:
| € m | Less than | More than 1 year |
More than 2 years |
More than 3 years |
More than 4 years |
More |
|---|---|---|---|---|---|---|
| 1 year | to 2 years | to 3 years | to 4 years | to 5 years | than 5 years | |
| As at 31 December 2011 | ||||||
| Non-current fi nancial liabilities | 71 | 184 | 995 | 21 | 34 | 198 |
| Other liabilities | 0 | 4 | 4 | 3 | 3 | 207 |
| Non-current liabilities | 71 | 188 | 999 | 24 | 37 | 405 |
| Current fi nancial liabilities | 5,582 | 0 | 0 | 0 | 0 | 0 |
| Trade payables | 6,168 | 0 | 0 | 0 | 0 | 0 |
| Other liabilities | 317 | 0 | 0 | 0 | 0 | 0 |
| Current liabilities | 12,067 | 0 | 0 | 0 | 0 | 0 |
| 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 |
Th e mandatory exchangeable bond (zero bond) of € 2,568 million plus interest that was issued in February 2009 and fully subscribed by Deutsche Bank was reclassifi ed to current fi nancial liabilities in February 2011; see Note 3. Its settlement 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. In addition to the mandatory exchangeable bond, 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 was also reclassifi ed to current fi nancial liabilities in the fi rst quarter of 2011. Th e put option can be exercised by Deutsche Post AG for the fi rst time on 28 February 2012. A further current fi nancial liability of € 120 million relates to the transactions settled to hedge Deutsche Bank shares during the sale of the fi rst 50 million Postbank shares in 2009; see Note 3. Th ere is collateral in the same amount.
Th e maturity structure of the derivative fi nancial instruments based on cash fl ows is as follows:
| Maturity structure: remaining maturities | |||
|---|---|---|---|
| ------------------------------------------ | -- | -- | -- |
| € m | More | More | More | More | ||
|---|---|---|---|---|---|---|
| Less | than 1 year | than 2 years | than 3 years | than 4 years | More | |
| than 1 year | to 2 years | to 3 years | to 4 years | to 5 years | than 5 years | |
| As at 31 December 2011 | ||||||
| Derivative receivables – gross settlement | ||||||
| Cash outfl ows | –1,240 | – 9 | –2 | 0 | 0 | 0 |
| Cash infl ows | 1,311 | 16 | 14 | 0 | 0 | 0 |
| Net settlement | ||||||
| Cash infl ows | 10 | 0 | 0 | 0 | 0 | 0 |
| Derivative liabilities – gross settlement | ||||||
| Cash outfl ows | –1,729 | –15 | –161 | 0 | 0 | 0 |
| Cash infl ows | 1,642 | 9 | 165 | 0 | 0 | 0 |
| Net settlement | ||||||
| Cash outfl ows | – 4 | –2 | 0 | 0 | 0 | 0 |
| As at 31 December 2010 | ||||||
| Derivative receivables – gross settlement | ||||||
| Cash outfl ows | –1,303 | –119 | –11 | – 6 | 0 | 0 |
| Cash infl ows | 1,361 | 151 | 16 | 14 | 0 | 0 |
| Net settlement | ||||||
| Cash infl ows | 9 | 0 | 0 | 0 | 0 | 0 |
| Derivative liabilities – gross settlement | ||||||
| Cash outfl ows | –2,930 | – 46 | –12 | –154 | 0 | 0 |
| Cash infl ows | 2,822 | 34 | 8 | 165 | 0 | 0 |
| Net settlement | ||||||
| Cash outfl ows | – 6 | 0 | 0 | 0 | 0 | 0 |
Derivative fi nancial instruments entail both rights and obligations. Th e contractual arrangement defi nes whether these rights and obligations can be off set against each other 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 "More than 3 years to 4 years", "More than 4 years to 5 years" and "More than 5 years" as at 31 December 2011, because all existing derivatives will mature by 2014.
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 international business activities of Deutsche Post DHL expose it to currency risks that are split internally for risk management purposes into balance sheet risks and currency risks from planned future transactions.
Balance sheet currency risks arise from the measurement and settlement of items in foreign currencies that have been recognised if the exchange rate on the measurement or settlement date diff ers from the rate on recognition. Th e resulting foreign exchange differences 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 currencyrelated value at risk (95 % / one-month holding period) for the portfolio concerned totalled € 4 million (previous year: € 3 million) at the reporting date; 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 € 2,030 million at the reporting date (previous year: € 3,383 million); the fair value was €–4 million (previous year: €–45 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 may 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 47 % of the foreign currency risk for current transactions in 2012 was hedged. Th e relevant hedging transactions are recognised using cash fl ow hedge accounting; see Note 48.3 (Cash fl ow hedges).
In total, currency forwards and currency swaps with a notion al amount of € 3,317 million (previous year: € 4,603 million) were outstanding at the balance sheet date. Th e corresponding fair value was €–27 million (previous year: €–65 million). Th ere were no currency options at the end of 2011 (previous year: € 0 million). Th e Group also held cross-currency swaps with a notional amount of € 173 million (previous year: € 211 million) and a fair value of €–6 million (previous year €–14 million) to hedge longterm 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 2011.
Of the unrealised gains or losses from currency derivatives recognised in equity as at 31 December 2011 in accordance with IAS 39, €–22 million (previous year: €–19 million) is expected to be recognised in income in the course of 2012.
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 € 4 million at the reporting date (previous year: € 3 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 € 21 million at 31 December 2011 (previous year: € 25 million). Th e total foreign currency value at risk was € 23 million at the reporting date (previous year: € 24 million). Th e total amount is lower than the sum of the individual amounts given above, owing to interdependencies.
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 2011, the Group had entered into interest rate swaps with a notional volume of € 1,005 million (previous year: € 1,005 million). Th e fair value of this interest rate swap position was € 48 million (previous year: € 71 million). As in the previous year, there were no interest rate options at the reporting date.
Th e share of instruments with short-term interest lock-ins did not change signifi cantly during the course of 2011. Financial liabilities with short-term interest lock-ins currently represent 55 % of total fi nancial liabilities. Th e eff ect of interest rate changes on the Group's financial position remains insignifi cant. Fixed-income fi nan cial 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 nan cial income / net fi nance costs and must be included in the sensitivity analysis.
If the market interest rate level as at 31 December 2011 had been 100 basis points higher, net fi nance costs would have increased by € 8 million (previous year: increased by € 4 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: € 0 million), nor would a reduction have reduced equity (previous year: € 0 million).
As in the previous year, most of the risks arising from commodity price fl uctuations, in particular fl uctuating prices for kerosene and marine diesel fuels, were passed on to customers via operating measures. However, the impact of the related fuel surcharges is delayed by one to two months, so that earnings may be aff ected temporarily if there are signifi cant short-term fuel price variations.
In addition, a small number of commodity swaps for diesel and marine diesel fuel were used to control residual risks. Th e notional amount of these commodity swaps was € 6 million (previous year: € 42 million) with a fair value of € 1 million (previous year: € 5 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 € 0 million (previous year: € 5 million). A corresponding decline in commodity prices would also have had no 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 € 1,493 million as at 31 December 2011 (previous year: € 1,653 million). Th e net fair value of the options was € 665 million as at 31 December 2011 (previous year: € 736 million). Changes in the fair value of the forward and the options are included in net fi nancial income / net fi nance costs until the instruments are exercised or expire. Had the fair value of Postbank shares been 10 % lower as at 31 December 2011, the net fair value of the share price derivatives would have increased by € 209 million, generating additional income of € 209 million (previous year: € 180 million) in net fi nancial income / net fi nance costs. An increase in the Postbank share price would have had the opposite eff ect and would have resulted in a charge to net fi nancial income / net fi nance costs.
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 2011.
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 € 6,426 million (previous year: € 6,011 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 2011 | |||||||||
| Trade receivables | 6,655 | 4,509 | 746 | 680 | 261 | 114 | 50 | 38 | 28 |
| As at 31 December 2010 | |||||||||
| Trade receivables | 6,242 | 4,133 | 900 | 514 | 197 | 97 | 51 | 19 | 34 |
Trade receivables changed as follows:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Gross receivables | ||
| As at 1 January | 5,135 | 6,242 |
| Changes | 1,107 | 413 |
| As at 31 December | 6,242 | 6,655 |
| Valuation allowances | ||
| As at 1 January | –254 | –231 |
| Changes | 23 | 2 |
| As at 31 December | –231 | –229 |
| Carrying amount as at 31 December | 6,011 | 6,426 |
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.
€ 189 million (previous year: € 301 million) of collateral is recognised in non-current fi nancial assets as at the balance sheet date. Th is relates primarily to liabilities in conjunction with the settlement of Deutsche Post AG's residential building loans.
Collateral of € 170 million is recognised in current fi nancial assets (previous year: € 39 million). Th e majority of this concerns collateral relating to the sale of the Deutsche Postbank AG shares still held by Deutsche Post. 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 short-term collateral relates to 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 will be released when the mandatory exchangeable bond is exercised in February 2012; it will be released for the remaining 26,417,432 shares 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 2011 by maturity | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2011 | Assets | Liabilities | |||||||||||||||
| No tional amount |
Fair value |
No tional amount |
Fair value of assets |
Fair value of liabil ities |
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 | 1,005 | 71 | 1,005 | 48 | 0 | 48 | 22 | 0 | 26 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which cash fl ow hedges |
163 | 18 | 163 | 16 | 0 | 16 | 0 | 0 | 16 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which fair value hedges |
842 | 53 | 842 | 32 | 0 | 32 | 22 | 0 | 10 | 0 | 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 |
| 1,005 | 71 | 1,005 | 48 | 0 | 48 | 22 | 0 | 26 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Currency transactions | ||||||||||||||||||
| Currency forwards | 2,280 | –33 | 1,483 | 20 | – 44 | –24 | 20 | 0 | 0 | 0 | 0 | 0 | – 43 | –1 | 0 | 0 | 0 | 0 |
| of which cash fl ow hedges |
1,052 | –20 | 1,045 | 15 | –37 | –22 | 15 | 0 | 0 | 0 | 0 | 0 | –36 | –1 | 0 | 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 |
1,228 | –13 | 438 | 5 | –7 | –2 | 5 | 0 | 0 | 0 | 0 | 0 | –7 | 0 | 0 | 0 | 0 | 0 |
| Currency options | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which cash fl ow hedges |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Currency swaps | 2,323 | –32 | 1,834 | 33 | –36 | –3 | 33 | 0 | 0 | 0 | 0 | 0 | –36 | 0 | 0 | 0 | 0 | 0 |
| of which cash fl ow hedges |
168 | 0 | 242 | 5 | – 6 | –1 | 5 | 0 | 0 | 0 | 0 | 0 | – 6 | 0 | 0 | 0 | 0 | 0 |
| of which held for trading |
2,155 | –32 | 1,592 | 28 | –30 | –2 | 28 | 0 | 0 | 0 | 0 | 0 | –30 | 0 | 0 | 0 | 0 | 0 |
| Cross-currency swaps | 211 | –14 | 173 | 0 | – 6 | – 6 | 0 | 0 | 0 | 0 | 0 | 0 | –2 | 0 | – 4 | 0 | 0 | 0 |
| of which cash fl ow hedges |
173 | – 6 | 163 | 0 | – 4 | – 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | – 4 | 0 | 0 | 0 |
| of which fair value hedges |
38 | –8 | 10 | 0 | –2 | –2 | 0 | 0 | 0 | 0 | 0 | 0 | –2 | 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 |
| 4,814 | –79 | 3,490 | 53 | – 86 | –33 | 53 | 0 | 0 | 0 | 0 | 0 | – 81 | –1 | – 4 | 0 | 0 | 0 | |
| Commodity price transactions |
||||||||||||||||||
| Commodity price swaps | 42 | 5 | 6 | 1 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which cash fl ow hedges |
42 | 5 | 6 | 1 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity price transactions | ||||||||||||||||||
| Equity forwards | 2,946 | 1,653 | 2,946 | 1,493 | 0 | 1,493 | 1,493 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which held for trading |
2,946 | 1,653 | 2,946 | 1,493 | 0 | 1,493 | 1,493 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity options | 2,596 | 736 | 2,596 | 665 | 0 | 665 | 665 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| of which held for trading |
2,596 | 736 | 2,596 | 665 | 0 | 665 | 665 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 5,542 | 2,389 | 5,542 | 2,158 | 0 | 2,158 | 2,158 | 0 | 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 € 32 million (previous year: € 53 million). As at 31 December 2011, there was also a € 13 million (previous year: € 19 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 €–2 million as at 31 December 2011 (previous year: € –8 million).
Th e following table gives an overview of the gains and losses arising from the hedged items and the respective hedging transactions:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Losses (–) / gains (+) on hedged items | –1 | 19 |
| Losses (–) / gains (+) on hedging transactions | 3 | –21 |
| Balance (ineffective portion) | 2 | –2 |
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 €–26 million at the reporting date (previous year: €–15 million). Th e hedged items will aff ect cash fl ow for the most part in 2012.
Currency forwards with a fair value of €–3 million (previous year: €–10 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 and currency swaps. Th e fair value of these cash fl ow hedges amounted to € 6 million as at 31 December 2011 (previous year: € 5 million). Th e aircraft will be added in 2012. Gains or losses on hedges are off set against cost and recognised in profi t or loss upon the amortisation of the asset.
Risks arising from fi xed-interest foreign currency investments were hedged using synthetic cross-currency swaps, with the investments being transformed into fi xed-interest euro investments. Th ese synthetic cross-currency swaps hedge the currency risk, and their fair values at the reporting date amounted to € 12 million (previous year: € 15 million).
Th e risks from the purchase of diesel and marine diesel fuels, which cannot be passed on to customers, were hedged using commodity swaps that fall due in 2012. Th e fair value of these cash fl ow hedges amounted to € 1 million as at year-end (previous year: € 5 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:
| € m | |||||
|---|---|---|---|---|---|
| Carrying amount | Carrying amount by measurement category in accordance with IAS 39 | ||||
| Financial assets and liabilities at fair value through profi t or loss | Available-for-sale fi nancial assets | ||||
| Trading | Fair value option | ||||
| assets | |||||
| Non-current fi nancial assets | 729 | ||||
| at cost | 566 | 0 | 0 | 103 | |
| at fair value | 163 | 0 | 68 | 69 | |
| Other non-current assets | 570 | ||||
| outside ifrs 7 | 570 | 0 | 0 | 0 | |
| Receivables and other current | |||||
| assets | 9,089 | ||||
| at cost | 7,685 | 0 | 0 | 0 | |
| outside ifrs 7 | 1,404 | 0 | 0 | 0 | |
| Current fi nancial assets | 2,498 | ||||
| at cost | 256 | 0 | 0 | 0 | |
| at fair value | 2,242 | 2,191 | 0 | 8 | |
| outside ifrs 7 | 0 | 0 | 0 | 0 | |
| Cash and cash equivalents | 3,123 | 0 | 0 | 0 | |
| Total assets | 16,009 | 2,191 | 68 | 180 | |
| equity and liabilities | |||||
| Non-current fi nancial liabilities 1 | –1,366 | ||||
| at cost | –1,355 | 0 | 0 | 0 | |
| at fair value | –11 | – 6 | 0 | 0 | |
| outside ifrs 7 | 0 | 0 | 0 | 0 | |
| Other non-current liabilities | –347 | ||||
| at cost | –221 | 0 | 0 | 0 | |
| outside ifrs 7 | –126 | 0 | 0 | 0 | |
| Current fi nancial liabilities | – 5,644 | ||||
| at cost | – 5,518 | 0 | 0 | 0 | |
| at fair value | –126 | – 82 | 0 | 0 | |
| Trade payables | – 6,168 | 0 | 0 | 0 | |
| Other current liabilities | – 4,106 | ||||
| at cost | –317 | 0 | 0 | 0 | |
| outside ifrs 7 | –3,789 | 0 | 0 | 0 | |
| Total equity and liabilities | –17,631 | – 88 | 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 fi nancial instruments outside the scope of IAS 39 |
Fair value of fi nancial instruments under IFRS 7 |
|||
|---|---|---|---|---|
| Loans and receivables / other fi nancial liabilities |
Held-to-maturity assets | Derivatives designated as hedging instruments |
Lease receivables / fi nance lease liabilities |
|
| 428 | 0 | 0 | 35 | 566 |
| 0 | 0 | 26 | 0 | 163 |
| 0 | 0 | 0 | 0 | 0 |
| 7,685 | 0 | 0 | 0 | 7,685 |
| 0 | 0 | 0 | 0 | 0 |
| 215 | 0 | 0 | 41 | 256 |
| 0 | 0 | 43 | 0 | 2,242 |
| 0 3,123 |
0 0 |
0 0 |
0 0 |
0 3,123 |
| 11,451 | 0 | 69 | 76 | – |
| –1,207 | 0 | 0 | –148 | –1,355 |
| 0 | 0 | – 5 | 0 | –11 |
| 0 | 0 | 0 | 0 | 0 |
| –221 | 0 | 0 | 0 | –221 |
| 0 | 0 | 0 | 0 | 0 |
| – 5,491 | 0 | 0 | –27 | – 5,518 |
| 0 | 0 | – 44 | 0 | –126 |
| – 6,168 | 0 | 0 | 0 | – 6,168 |
| –317 | 0 | 0 | 0 | –317 |
| 0 | 0 | 0 | 0 | 0 |
| –13,404 | 0 | – 49 | –175 | – |
| € m | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Carrying amount | Carrying amount by measurement category in accordance with IAS 39 | ||||||||
| Financial assets and liabilities at fair value through profi t or loss | Available-for-sale fi nancial 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 liabilities 1 | – 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 |
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.
No assets were reclassifi ed in fi nancial years 2011 and 2010.
1
| Other fi nancial instruments outside the scope of IAS 39 |
Fair value of fi nancial instruments under IFRS 7 |
|||
|---|---|---|---|---|
| Loans and receivables / other fi nancial liabilities |
Held-to-maturity assets | Derivatives designated as hedging instruments |
Lease receivables / fi nance 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 | – |
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 as 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 € 103 million (previous year: € 81 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 2011 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: 2011 | ||||
|---|---|---|---|---|
| -- | -- | -- | ---------------------------------------- | -- |
| € m | |||
|---|---|---|---|
| Level | 1 | 2 | 3 |
| Measurement using key inputs based |
Measurement using key inputs not based |
||
| Quoted | on observable | on observable | |
| Class | market prices | market data | market data |
| Non-current fi nancial assets at fair value |
137 | 26 | 0 |
| Current fi nancial assets at fair value |
8 | 2,234 | 0 |
| Non-current fi nancial liabilities at fair value |
0 | – 5 | – 6 |
| Current fi nancial liabilities at fair value |
0 | – 82 | – 44 |
Th e fair value of currency forwards was measured on the basis of discounted expected future cash fl ows, taking forward rates on the foreign exchange market into account. Th e currency options were measured using the Black-Scholes option pricing model.
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.
Level 3 mainly comprises options entered into in connection with intercompany transactions. Th ese options are measured using recognised valuation models, taking plausible assumptions into account; measurement depends largely on fi nancial ratios. Losses of € 13 million from the change in fair value impacted net fi nancial income / net fi nance costs in 2011; see Note 18.
| 1 | 2 | 3 |
|---|---|---|
| Measurement using key inputs based |
Measurement using key inputs not based |
|
| Quoted | on observable | on observable |
| market prices | market data | market data |
| 140 | 2,465 | 0 |
| 407 | 38 | 0 |
| 0 | –15 | 0 |
| 0 | –100 | –37 |
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 | ||
|---|---|---|
| 2010 | 2011 | |
| Loans and receivables | –75 | – 94 |
| Held-to-maturity fi nancial assets | 0 | 0 |
| Financial assets and liabilities at fair value through profi t or loss |
||
| Trading | 1,757 | 231 |
| Fair value option | 7 | –1 |
| Other fi nancial liabilities | – 84 | 1 |
Th e net gains and losses mainly include the eff ects of the fair value measurement, impairment and disposals (disposal gains / losses) of fi nancial instruments. In fi nancial year 2011, the measurement of the forward and the options entered into to transfer the remaining Postbank shares had a material eff ect on net gains and losses. Th e derivatives had a much stronger eff ect in 2010 as the eff ect on net gains and losses of the forward on 60 million Postbank shares had to be fully recognised for the fi rst time due to the amendment to IAS 39.2g. 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 38. Income and expenses from interest and commission agreements of the fi nancial instruments not measured at fair value through profi t or loss are explained in the income statement disclosures.
Th e Group's contingent liabilities total € 2,767 million (previous year: € 2,469 million). € 24 million of the contingent liabilities relates to guarantee obligations (previous year: € 12 million), € 119 million to warranties (previous year: € 133 million) and € 125 million to liabilities from litigation risks (previous year: € 153 million). Th e other contingent liabilities amounting to € 2,499 million (previous year: € 2,171 million) mainly relate to obligations from formal state aid proceedings, see Notes 51 and 57, and tax-related items.
In addition, there is a contingent liability to the French tax authorities, which is not included in total contingent liabilities. Th e tax authorities have not yet provided documentation about the matter at issue. It is therefore impossible to estimate the actual amount of this liability, preventing its recognition.
In addition to provisions, liabilities and contingent liabilities, there are other fi nancial obligations amounting to € 6,625 million (previous year: € 7,091 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:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Land and buildings | 5,554 | 5,294 |
| Aircraft | 951 | 765 |
| Transport equipment | 439 | 443 |
| Technical equipment and machinery | 115 | 80 |
| Other equipment, operating and offi ce equipment | 20 | 31 |
| it equipment | 12 | 12 |
| Lease obligations | 7,091 | 6,625 |
Th e decrease in lease obligations by € 466 million to € 6,625 million is a consequence of the reduction in the remaining terms of legacy agreements, especially for real estate and aircraft , which are not matched by the same volume of new leases.
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Less than 1 year | 1,433 | 1,479 |
| More than 1 year to 2 years | 1,199 | 1,100 |
| More than 2 years to 3 years | 914 | 867 |
| More than 3 years to 4 years | 731 | 668 |
| More than 4 years to 5 years | 557 | 526 |
| More than 5 years | 2,257 | 1,985 |
| Maturity structure of minimum lease payments | 7,091 | 6,625 |
Th e present value of discounted minimum lease payments is € 5,003 million (previous year: € 5,311 million), based on a discount factor of 6.50 % (previous year: 6.50 %). Overall, rental and lease payments amounted to € 2,364 million (previous year: € 2,330 million), of which € 1,640 million (previous year: € 1,693 million) relates to non-cancellable leases. € 2,526 million (previous year: € 2,745 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 € 90 million (previous year: € 194 million).
Many of the services provided by Deutsche Post AG and its subsidiaries are subject to sector-specifi c regulation by the Bundesnetzagentur (German federal network agency) under the Postgesetz (German Postal Act). Th e Bundesnetzagentur approves or reviews prices, formulates the terms of downstream access and has special supervisory powers to combat market abuse. Th is general regulatory risk could lead to a decline in revenue and earnings in the event of negative decisions.
Legal risks arise, amongst other things, 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 approval 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, they are now, however, being continued in the Münster Higher Administrative Court, as the court of second instance, due to a successful constitutional complaint.
Legal risks also result from appeals by Deutsche Post against other price approvals granted by the regulatory authority.
Deutsche Post AG increased its discounts for downstream access on 1 July 2010. Deutsche Post competitors and their associations fi led complaints against these discount increases with the Bundesnetzagentur. 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. In October 2011, several competitors of Deutsche Post AG brought an action in the Cologne Administrative Court against the Bundesnetzagentur with the aim of reversing the discount increases. Th e claim has not yet been served on Deutsche Post AG and it is therefore not currently possible to assess the specifi c risks arising from this. 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 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 its decision dated 14 June 2011, the Bundesnetz agentur concluded that First Mail Düsseldorf GmbH, a subsidiary of Deutsche Post AG, and Deutsche Post AG had contravened the discounting and discrimination prohibitions under the Postgesetz. Th e com panies were instructed to remedy the breaches that had been identi fi ed. Both companies appealed against the ruling to the Cologne Administrative Court. Furthermore, First Mail Düsseldorf GmbH fi led an application to suspend the execution of the ruling until a decision was reached in the principal proceedings. Th e Cologne Administrative Court and the Münster Higher Administrative Court both dismissed this application. First Mail Düsseldorf GmbH announced in December 2011 that it would cease trading at the end of the year and it retracted its appeal on 19 December 2011. Deutsche Post AG continues to pursue its appeal against the Bundes netzagentur ruling.
Th e European Commission's decision of 25 January 2012 concluded the formal state aid investigation that it had initiated on 12 September 2007. 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 intended 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 was 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 cooperation 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. Th e Monopolkommission (German Monopoly Commission) had also previously alleged that Deutsche Post AG permits Deutsche Postbank AG to use its retail outlets at below-market rates, and that in so doing it contravenes the prohibition on state aid enshrined in the EC Treaty. Th e European Commission extended its offi cial state aid proceedings on 10 May 2011. Th e extension concerned the funding arrangements for civil servants' pensions, which were to be examined more closely, including the pension obligations factored into the price approval process.
In its decision of 25 January 2012, the European Commission concluded that Deutsche Post AG and its predecessor, Deutsche Bundespost POSTDIENST, did not receive any excessive state funding for the universal services provided in the years 1989 to 2007 and that therefore no incompatible state aid was granted. Equally, the European Commission found no evidence of illegal state aid with respect to the guarantees issued by the German state. It also did not fi nd fault with the cooperation agreements between Deutsche Post AG and Deutsche Postbank AG, and between Deutsche Post AG and DHL Vertriebs GmbH. Th e European Commission did not revisit the 1999 sale of shares of Deutsche Postbank AG to Deutsche Post AG in its ruling.
However, in its review of the funding of civil servants' pensions, the European Commission concluded that Deutsche Post AG had received illegal state aid in this area. It said that the pension relief granted to Deutsche Post AG by the Bundesnetzagentur during the price approval process led to Deutsche Post AG having to pay lower social security contributions for civil servants than its competitors pay for salaried employees, resulting in a benefi t to Deutsche Post AG of between € 500 million and € 1 billion. According to the Commission, this benefi t represents illegal state aid that must be repaid by Deutsche Post AG to the Federal Republic of Germany. Th e precise amount has to be calculated by the Federal Republic. Deutsche Post AG is of the opinion that the European Commission's decision of 25 January 2012 cannot withstand legal review and will appeal to the European Court of Justice in Luxembourg.
Consolidated Financial Statements Notes Other disclosures
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 antitrust 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 receive part of their variable remuneration for the fi nan cial year in the form of shares of Deutsche Post AG in the following year (incentive shares); all Group executives can specify an increased equity component individually by converting a further portion of their variable remuneration for the fi nancial year (investment shares). If certain conditions are met, the executive will again be awarded the same number of Deutsche Post AG shares four years later (matching shares).
| 2009 tranche |
2010 tranche |
2011 tranche |
||
|---|---|---|---|---|
| Grant date | 1 Nov. 2009 | 1 Jan. 2010 | 1 Jan. 2011 | |
| Term | months | 53 | 63 | 63 |
| End of term | March 2014 | March 2015 | March 2016 | |
| Share price at grant date | € | 11.48 | 13.98 | 12.90 |
| Number of incentive shares |
in thousands |
430 | 638 | 691 |
| Number of matching shares expected |
in thousands |
762 | 1,674 | 1,913 |
In the consolidated fi nancial statements as at 31 December 2011, € 33 million (previous year: € 20 million) was recognised in equity for the grant of variable remuneration components; see table in Note 38.1.
Since 3 July 2006, selected executives have received annual tranches of SAR s 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 SAR s under the 2006 and 2007 tranches expired at the end of the respective waiting periods, since the performance targets were not met. Aft er the expiry of the waiting period for the 2008 tranche on 30 June 2011, two-sixths of the SAR s granted became exercisable. However, they could not be exercised so far because the share price has not yet exceeded the issue price of € 18.40.
Since 1 July 2006, the members of the Board of Management receive SAR s under the 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 2011. Th e number of SAR s issued to the members of the Board of Management is determined by the Super visory 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:
| sar s | 2007 tranche | 2008 tranche | 2009 tranche | 2010 tranche | 2011 tranche |
|---|---|---|---|---|---|
| Issue date | 1 July 2007 | 1 July 2008 | 1 July 2009 | 1 July 2010 | 1 July 2011 |
| Issue price in € | 24.02 | 18.40 | 9.52 | 12.27 | 12.67 |
| Waiting period expires | 30 June 2010 | 30 June 2011 | 30 June 2013 | 30 June 2014 | 30 June 2015 |
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 € 24 million was recognised for fi nancial year 2011 (previous year: € 21 million).
See Note 53.2 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 € 61 million (previous year: € 37 million).
All companies classifi ed as related parties that are controlled by the Group or on which the Group can exercise signifi cant infl uence are recorded in the list of shareholdings, see Note 58, 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 government 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 %. Deutsche Post AG is thus considered to be an associate of the federal government.
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 2011, Deutsche Post AG was invoiced for € 70 million (previous year: € 72 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 Fehl subventionierung 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 2011 Deutsche Post AG paid € 0.03 million to the federal government for the fi nal settlement for fi nancial year 2010 and € 0.06 million for fi nancial year 2011. As agreed, the fi nal settlement for fi nancial year 2011 will be made by 1 July 2012.
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 2011, this initiative resulted in 15 permanent transfers (previous year: 21) and 10 secondments with the aim of a permanent transfer in 2012 (previous year: 9).
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 2011, this initiative resulted in 39 permanent transfers.
Th e federal government holds around 32 % of the shares of Deutsche Telekom AG directly and indirectly (via KfW Bankengruppe). A control relationship exists between Deutsche Telekom and the federal government because the federal government, despite its non-controlling interest, has a secure majority at the Annual General Meeting due to its average presence there. Deutsche Telekom is therefore a related party of Deutsche Post AG. In fi nancial year 2011, Deutsche Post DHL provided goods and services (mainly transport services for letters and parcels) for Deutsche Telekom AG and purchased goods and services (such as IT products) from Deutsche Telekom.
Deutsche Bahn AG is wholly owned by the German government. Owing to this control 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.
und telekommunikation e. v.
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 € 1,011 million (previous year: € 1,043 million) of which Deutsche Post Betriebsrenten Service e. V. (DPRS) and / or Deutsche Post Pensions-Treuhand GmbH & Co. KG, Deutsche Post Betriebsrenten-Service e. V. & Co. Objekt Gronau KG and Deutsche Post Grundstücks-Vermietungsgesellschaft beta mbH Objekt Leipzig KG are the legal or benefi cial owners, is exclusively let to Deutsche Post Immobilien GmbH. Rental expense for Deutsche Post Immobilien GmbH amounted
to € 64 million in 2011 (previous year: € 63 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 liabilities were due as at 31 December 2011. Th ere were no sales relation ships between external authorities and a Group company of Deutsche Post AG in 2011.
In addition to the consolidated subsidiaries, the Group has direct and indirect relationships with unconsolidated companies, associates and joint ventures 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 2011 with major related parties, resulting in the following items in the consolidated fi nancial statements:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Receivables | 35 | 27 |
| from associates | 21 | 18 |
| from joint ventures | 5 | 5 |
| from unconsolidated companies | 9 | 4 |
| Loans | 33 | 33 |
| to associates | 0 | 0 |
| to joint ventures | 19 | 20 |
| to unconsolidated companies | 14 | 13 |
| Receivables from in-house banking | 3 | 3 |
| from associates | 0 | 0 |
| from joint ventures | 3 | 3 |
| from unconsolidated companies | 0 | 0 |
| Financial liabilities | 137 | 102 |
| to associates | 94 | 28 |
| to joint ventures | 10 | 5 |
| to unconsolidated companies | 33 | 69 |
| Liabilities | 35 | 33 |
| to associates | 17 | 10 |
| to joint ventures | 15 | 22 |
| to unconsolidated companies | 3 | 1 |
| Revenue | 287 | 290 |
| from associates | 267 | 269 |
| from joint ventures | 19 | 20 |
| from unconsolidated companies | 1 | 1 |
| Expenses 1 | 600 | 629 |
| due to associates | 469 | 445 |
| due to joint ventures | 101 | 163 |
| due to unconsolidated companies | 30 | 21 |
1 Relate to materials expense and staff costs.
Deutsche Post AG issued letters of commitment in the amount of € 140 million for these companies. Of this amount, € 109 million was attributable to associates, € 26 million to joint ventures and € 5 million to unconsolidated companies.
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 or legal transactions involving related parties in fi nancial year 2011 with the exception of an existing master postage agreement in the amount of € 1 million between Deutsche Post DHL and a member of the Supervisory Board.
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 | ||
|---|---|---|
| 2010 | 2011 | |
| Short-term employee benefi ts | ||
| (less share-based payment) | 13 | 13 |
| Post-employment benefi ts | 2 | 3 |
| Termination benefi ts | 0 | 4 |
| Share-based payment | 1 1 | 1 |
| Total | 16 | 21 |
1 In the current fi nancial year the changes in the value of tranches already earned were itemised for the fi rst time. The prior-period amounts were adjusted accordingly. See also the table "Share-based payment".
As well as the above-mentioned benefi ts for their work on the Supervisory Board, the employee representatives who are on the Supervisory Board and who are employed by the Group also receive their normal salaries for their work in the company. Th ese salaries are determined at levels that are commensurate with the salary appropriate for the function or work performed in the company.
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 2010 and 2011. It is itemised in the following table:
| thousands of € | 2010 3 | 2011 |
|---|---|---|
| sar s | sar s | |
| Dr Frank Appel, Chairman | 97 | 199 |
| Ken Allen | 225 | 111 |
| Roger Crook 1 | 0 | 58 |
| Bruce Edwards | 78 | 114 |
| Jürgen Gerdes | 68 | 114 |
| Lawrence Rosen | 225 | 111 |
| Walter Scheurle | 58 | 114 |
| Hermann Ude 2 | 78 | 438 |
| Share-based payment | 829 | 1,259 |
1 Since 9 March 2011.
3
2 Until 8 March 2011.
In the current fi nancial year the changes in the value of tranches already earned were itemised for the fi rst time. The prior-period amounts were adjusted accordingly.
Further details on the share-based payment granted to the members of the Board of Management in fi nancial years 2010 and 2011 are presented in the following tables:
| number | Dr Frank | Bruce | Jürgen | Lawrence | Walter | Hermann | ||
|---|---|---|---|---|---|---|---|---|
| Appel | Ken Allen | Roger Crook 1 | Edwards | Gerdes | Rosen | Scheurle | Ude 2 | |
| sar s | ||||||||
| Outstanding sar s as at 1 January 2011 | 1,080,000 | 576,958 | 271,056 | 720,000 | 720,000 | 490,000 | 720,000 | 720,000 |
| sar s granted | 689,502 | 342,630 | 284,862 | 370,518 | 370,518 | 342,630 | 370,518 | 0 |
| sar s lapsed | 345,000 | 57,972 | 27,176 | 230,000 | 230,000 | 0 | 230,000 | 230,000 |
| sar s exercised | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Outstanding sar s as at 31 December 2011 | 1,424,502 | 861,616 | 528,742 | 860,518 | 860,518 | 832,630 | 860,518 | 490,000 |
| Of which exercisable sar s as at 31 December 2011 | 0 | 28,986 | 13,588 | 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 | 2.73 | 2.62 | 2.81 | 2.65 | 2.65 | 2.62 | 2.65 | 2.01 |
1 Since 9 March 2011.
2 Until 8 March 2011.
| number | Dr Frank Appel |
Ken Allen | Bruce Edwards |
Jürgen Gerdes |
Lawrence Rosen |
Walter 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 |
| of which 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 total remuneration paid to the active members of the Board of Management in fi nancial year 2011 including the components with a long-term incentive eff ect totalled € 19.0 million (previous year: € 17.0 million). Of this amount, € 7.4 million (previous year: € 7.1 million) is attributable to non-performance-related components (annual base salary and fringe benefi ts), € 4.6 million (previous year: € 4.9 million) to performance-related components (variable components) and € 7.0 million (previous year: € 5.0 million) to components with a long-term incentive eff ect (SAR s). Th e number of SAR s was 2,771,178 (previous year: 1,875,000).
Th e remuneration of former members of the Board of Manage ment or their surviving dependants amounted to € 7.4 million in the year under review (previous year: € 5.7 million). Th e defi ned benefi t obligation (DBO) for current pensions calculated under IFRS s amounted to € 57.0 million (previous year: € 42.9 million). Th e change (€ 13.3 million) is due to the greater number of pensioners as their pension benefi ts have fallen due; no additional obligations have been incurred in this context. Rather, the existing obligations due to pension entitlements, including the 2011 service costs, decreased to € 25.7 million (previous year: € 35.4 million).
Th e total remuneration of the Supervisory Board in fi nancial year 2011 amounted to approximately € 1.4 million (previous year: € 1.1 million); € 1.2 million of this amount was attributable to a fi xed component (previous year: € 0.9 million), € 0 million to performance-related remuneration (previous year: € 0 million) and € 0.2 million to attendance allowances (previous year: € 0.2 million).
Further information on the itemised remuneration of the Board of Management and the Supervisory Board can be found in the Corporate Governance Report. Th e remuneration report contained in the Corporate Governance Report also forms part of the Group Management Report.
As at 31 December 2011, 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 Aktiengesellschaft Wirtschaft sprüfungsgesellschaft , were recognised as an expense in fi nancial year 2011 and in the previous year:
| € m | ||
|---|---|---|
| 2010 | 2011 | |
| Audits of the fi nancial statements | 5 | 5 |
| Other assurance or valuation services | 2 | 2 |
| Tax advisory services | 0 | 0 |
| Other services | 1 | 2 |
| Auditor's fees | 8 | 9 |
For fi nancial year 2011, Deutsche Post AG has exercised the simplifi cation options under section 264 (3) of the HGB for the following companies:
Th e 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 2011 required by section 161 of the Aktiengesetz (AktG – German Stock Corporation Act). Th is Declaration of Conformity can be accessed online at www.corporate-governance-code.de and at www.dp-dhl.com.
On 25 January 2012, the European Commission concluded the formal state aid investigation that it had initiated on 12 September 2007. Th e issues are described in detail in Note 51, Litigation. According to its decision, the Commission is requiring Deutsche Post AG to repay this state aid to the Federal Republic of Germany in the amount of € 500 million to € 1 billion plus interest. No other state aid proceedings involving the Group are pending at the European Commission. Deutsche Post AG is of the opinion that the European Commission's decision of 25 January 2012 cannot withstand legal review and will appeal to the European Court of Justice in Luxembourg. Accounting will take place in accordance with the envisaged procedures.
Th e procedure to exercise the put option on 12.1 % of Deutsche Postbank AG shares was initiated in January 2012.
Affi liated companies included in the consolidated fi nancial statements
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| abis GmbH | Germany, Frankfurt / Main | 70.00 | eur | 315 | 566 |
| Adcloud GmbH | Germany, Cologne | 100.00 | eur | – 907 | – 932 |
| Adcloud Operations Spain s. l. | Spain, Madrid | 100.00 | eur | –27 | –30 |
| Admagic Limited | United Kingdom, London | 100.00 | eur | 8,211 | 587 |
| Aerocar b. v. | Netherlands, Amsterdam | 100.00 | eur | 7,645 | 3,986 |
| Agheera GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 25 | 0 |
| Albert Scheid GmbH 6, 9 | Germany, Cologne | 100.00 | eur | 1,022 | 0 |
| Applied Distribution Group Limited 5 | United Kingdom, Bracknell | 100.00 | eur | 5,956 | 0 |
| Axial sa | Belgium, Seneffe | 100.00 | eur | 2,295 | – 65 |
| Blue Funnel Bulkships Limited 5 | United Kingdom, Bracknell | 100.00 | eur | –2,646 | 0 |
| Cargus Express Curier s. r. l. | Romania, Bucharest | 100.00 | eur | –10,743 | –2,607 |
| Cargus International s. r. l. | Romania, Bucharest | 100.00 | eur | 1,258 | 1,688 |
| Container Services Amsterdam b. v. 5 | Netherlands, Amsterdam | 100.00 | eur | 245 | 0 |
| cpj Travel Limited 5 | United Kingdom, Hounslow | 100.00 | eur | 0 | 0 |
| danmar Lines ag | Switzerland, Basel | 100.00 | eur | 24,583 | 7 |
| Danzas (uk) Limited 5 | United Kingdom, Staines | 100.00 | eur | 1,197 | 0 |
| Danzas Chemicals GmbH 8 | Germany, Düsseldorf | 100.00 | eur | –1,267 | 0 |
| Danzas Deutschland Holding GmbH 6, 9 | Germany, Frankfurt / Main | 100.00 | eur | 4,025 | 0 |
| danzas Fashion b. v. | Netherlands, Venlo | 100.00 | eur | –26,703 | – 532 |
| Danzas Fashion nv | Belgium, Grimbergen | 100.00 | eur | 12 | –1 |
| Danzas Fashion Service Centers b. v. | Netherlands, Waalwijk | 100.00 | eur | 507 | –138 |
| Danzas Grundstücksverwaltung Frankfurt GmbH 6, 9 | Germany, Frankfurt / Main | 100.00 | eur | 22,679 | 0 |
| Danzas Grundstücksverwaltung Groß-Gerau GmbH 6, 9 | Germany, Hamburg | 100.00 | eur | 26 | 0 |
| Danzas Holding ag | Switzerland, Basel | 100.00 | eur | 126,500 | 21,590 |
| Danzas Kiev Ltd. | Ukraine, Kiev | 100.00 | eur | –2,142 | –218 |
| Danzas Verwaltungs GmbH | Germany, Frankfurt / Main | 100.00 | eur | 23,576 | 1,149 |
| Danzas, s. l. | Spain, San Sebastián | 100.00 | eur | 211,654 | 56,231 |
| Darshaan Properties Ltd. | Ireland, Dublin | 100.00 | eur | 0 | – 93 |
| Deutsche Post Adress Beteiligungsgesellschaft mbH 6, 9 | Germany, Bonn | 100.00 | eur | 30 | 0 |
| Deutsche Post Adress Geschäftsführungs GmbH | Germany, Bonn | 51.00 | eur | 35 | 18 |
| Deutsche Post Adress GmbH & Co. kg | Germany, Bonn | 51.00 | eur | 9,987 | 18,342 |
| Deutsche Post Assekuranz Vermittlungs GmbH 6, 9 | Germany, Bonn | 55.00 | eur | 51 | 0 |
| Deutsche Post Beteiligungen Holding GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 6,655,052 | 0 |
| Deutsche Post Com GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 1,126 | 0 |
| Deutsche Post Consult GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 3,858 | 0 |
| Deutsche Post Customer Service Center GmbH 6, 9 | Germany, Monheim | 100.00 | eur | 43 | 0 |
| Deutsche Post DHL Beteiligungen GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 882,025 | 0 |
| Deutsche Post DHL Corporate Real Estate Management GmbH 6, 9 Germany, Bonn | 100.00 | eur | 51 | 0 | |
| Deutsche Post DHL Corporate Real Estate Management | |||||
| GmbH & Co. Logistikzentren kg | Germany, Bonn | 100.00 | eur | 1,300 | –772 |
| Deutsche Post DHL Inhouse Consulting GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 25 | 0 |
| Deutsche Post DHL Research and Innovation GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 7,500 | 0 |
| Deutsche Post Direkt GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 60 | 0 |
| Deutsche Post Finance b. v. | Netherlands, Maastricht | 100.00 | eur | 13,693 | 798 |
| Deutsche Post Fleet GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 511,115 | 0 |
| Deutsche Post Global Mail (Belgium) nv | Belgium, Brussels | 100.00 | eur | 1,104 | 5 |
| Deutsche Post Global Mail (France) sas | France, Issy-les-Moulineaux | 100.00 | eur | 2,535 | 363 |
| Deutsche Post Global Mail (Netherlands) b. v. | Netherlands, Utrecht | 100.00 | eur | 2,899 | 912 |
| Deutsche Post Global Mail (Switzerland) ag | Switzerland, Basel | 100.00 | eur | 682 | 282 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Deutsche Post Global Mail (uk) Limited 5 | United Kingdom, Croydon | 100.00 | eur | 8,258 | 0 |
| Deutsche Post Immobilien GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 25 | 0 |
| Deutsche Post Insurance Limited | Ireland, Dublin | 100.00 | eur | 10,985 | –29 |
| Deutsche Post International b. v. 1 | Netherlands, Amsterdam | 100.00 | eur | 8,458,661 | 374,463 |
| TheNetherlands622009 b. v. 1 | Netherlands, Apeldoorn | 100.00 | eur | – | – |
| Deutsche Post Investments GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 400,025 | 0 |
| Deutsche Post it brief GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 11,160 | 0 |
| Deutsche Post it Services GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 39,226 | 0 |
| Deutsche Post Mail Distribution (Netherlands) b. v. | Netherlands, Apeldoorn | 100.00 | eur | – 8,184 | – 92 |
| Deutsche Post Nederland c. v. | Netherlands, Utrecht | 100.00 | eur | – 80,083 | –11,093 |
| Deutsche Post Real Estate Germany GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 13,838 | 0 |
| Deutsche Post Reinsurance s. a. | Luxembourg, Luxembourg | 100.00 | eur | 2,240 | 0 |
| Deutsche Post Shop Essen GmbH 6, 9 | Germany, Essen | 100.00 | eur | 25 | 0 |
| Deutsche Post Shop Hannover GmbH 6, 9 | Germany, Hanover | 100.00 | eur | 25 | 0 |
| Deutsche Post Shop München GmbH 6, 9 | Germany, Munich | 100.00 | eur | 25 | 0 |
| Deutsche Post Technischer Service GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 4,012 | 0 |
| Deutsche Post Zahlungsdienste GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 1,000 | 0 |
| dhl Supply Chain (Finland) Oy | Finland, Vantaa | 100.00 | eur | 4,703 | 897 |
| dhl (Cyprus) Ltd. | Cyprus, Nikosia | 100.00 | eur | 3,094 | – 54 |
| dhl Air Limited | United Kingdom, Hounslow | 100.00 | eur | 13,712 | 3,171 |
| dhl AirWays GmbH 6, 9 | Germany, Cologne | 100.00 | eur | 2,152 | 0 |
| dhl Automotive GmbH 6, 9 | Germany, Hamburg | 100.00 | eur | 4,091 | 0 |
| dhl Automotive Offenau GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 71 | 0 |
| dhl Automotive s. r. o. | Czech Republic, Prague | 100.00 | eur | 6,093 | –1,596 |
| dhl Aviation (France) sas | France, Roissy-en-France | 100.00 | eur | 1,463 | 38 |
| dhl Aviation (Italy) S. r. l. | Italy, Milan | 100.00 | eur | 3,594 | –295 |
| dhl Aviation (Netherlands) b. v. | Netherlands, Amersfoort | 100.00 | eur | 4,378 | 313 |
| dhl Aviation (uk) Limited | United Kingdom, Hounslow | 100.00 | eur | 7,640 | 920 |
| dhl Aviation nv / sa | Belgium, Zaventem | 100.00 | eur | 19,510 | 494 |
| dhl Beautiran sa | France, La Plaine Saint-Denis | 100.00 | eur | 1,672 | –1,571 |
| Exel Beziers sarl | France, La Plaine Saint-Denis | 100.00 | eur | – 506 | –186 |
| dhl Bwlog GmbH 6, 9 | Germany, Mönchengladbach | 100.00 | eur | 11,615 | 0 |
| dhl Distribution Holdings (uk) Limited | United Kingdom, Hounslow | 100.00 | eur | 41,419 | 39,036 |
| dhl Ekspres (Slovenija), d. o. o. | Slovenia, Trzin | 100.00 | eur | –112 | –266 |
| dhl Elancourt sarl | France, La Plaine Saint-Denis | 100.00 | eur | 3,524 | 1,356 |
| dhl Estonia as | Estonia, Tallinn | 100.00 | eur | 7,355 | 1,066 |
| dhl Exel Slovakia, s. r. o. | Slovakia, Bratislava | 100.00 | eur | 274 | 878 |
| dhl Exel Supply Chain (Denmark) a / s | Denmark, Kastrup | 100.00 | eur | –19,461 | 397 |
| dhl Exel Supply Chain (Poland) Sp. z o. o. | Poland, Warsaw | 100.00 | eur | –3,732 | –1,630 |
| dhl Exel Supply Chain (Sweden) ab | Sweden, Stockholm | 100.00 | eur | 10,789 | – 4,136 |
| dhl Exel Supply Chain Euskal-Log, s. l. u. | Spain, Barcelona | 100.00 | eur | 7,040 | 233 |
| dhl Exel Supply Chain Hungary Limited | Hungary, Ullo | 100.00 | eur | 608 | 89 |
| dhl Exel Supply Chain Limited | United Kingdom, Bedford | 100.00 | eur | 449,352 | – 4,422 |
| dhl Exel Supply Chain Portugal, s. a. | Portugal, Alverca | 100.00 | eur | 6,208 | –1,772 |
| dhl Exel Supply Chain (Spain), s. l. u. | Spain, Madrid | 100.00 | eur | 16,184 | –3,579 |
| dhl Exel Supply Chain Trade (Poland) Sp. z o. o. | Poland, Warsaw | 100.00 | eur | 431 | – 80 |
| dhl Exel Supply Chain Trollhättan ab | Sweden, Stockholm | 100.00 | eur | –3,518 | – 6,366 |
| dhl Express (Austria) GmbH | Austria, Guntramsdorf | 100.00 | eur | –192 | –10,583 |
| dhl Express (Belgium) nv | Belgium, Ternat | 100.00 | eur | 9,317 | 2,255 |
| dhl Express (Czech Republic) s. r. o. | Czech Republic, Ostrava | 100.00 | eur | 10,056 | 3,867 |
| dhl Express (Denmark) a / s | Denmark, Brøndby | 100.00 | eur | 84,901 | 5,614 |
| dhl Express (France) sas | France, Roissy-en-France | 100.00 | eur | – 43,869 | –3,751 |
| dhl Express (Hellas) s. a. | Greece, Athens | 100.00 | eur | 4,898 | 5,597 |
| dhl Express (Iceland) ehf | Iceland, Reykjavik | 100.00 | eur | 91 | 1 |
| dhl Express (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 483 | 1,092 |
| dhl Express (Italy) S. r. l. | Italy, Milan | 100.00 | eur | 57,894 | 8,112 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Express (Luxembourg) s. a. | Luxembourg, Contern | 100.00 | eur | 5,059 | 821 |
| dhl Express (Netherlands) b. v. | Netherlands, Amersfoort | 100.00 | eur | 9,250 | 14,677 |
| dhl Express (Norway) as | Norway, Oslo | 100.00 | eur | 16,038 | – 6,064 |
| dhl Express (Poland) Sp. z o. o. | Poland, Warsaw | 100.00 | eur | 55,694 | 27,615 |
| dhl Express (Schweiz) ag | Switzerland, Basel | 100.00 | eur | 17,500 | 6,578 |
| dhl Express (Slovakia), spol. s r. o. | Slovakia, Bratislava | 100.00 | eur | 4,321 | – 438 |
| dhl Express (uk) Limited | United Kingdom, Hounslow | 100.00 | eur | –30,333 | – 89 |
| dhl Express Bulgaria eood | Bulgaria, Sofi a | 100.00 | eur | 1,883 | 1,031 |
| dhl Express Germany GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 6,618 | 0 |
| dhl Express Hungary Forwarding and Services llc | Hungary, Budapest | 100.00 | eur | 6,927 | 2,607 |
| dhl Express Iberia s. l. 1 | Spain, San Sebastián | 100.00 | eur | 154,811 | 28,241 |
| Denalur spe, s. l. 1 | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express a Coruna Spain, s. l. 1 | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Alacant Spain s. l. 1 | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Araba Spain s. l. 1 | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Barcelona Spain s. l. 1 | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Bizkaia Spain s. l. 1 | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Cantabria Spain s. l. 1 | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Castello Spain s. l. 1 | Spain, San Sebastián | 100.00 | eur | – | – |
| dhl Express Ciudad Real Spain, s. l. 1 | Spain, Ciudad Real | 100.00 | eur | – | – |
| dhl Express 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, Málaga | 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 | 6,343 | 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 | 1,005 | 225 |
| dhl Express Portugal, Lda. | Portugal, Moreira da Maia | 100.00 | eur | 16,622 | 2,467 |
| dhl Express Services (France) sas | France, Roissy-en-France | 100.00 | eur | –1,195 | 7,113 |
| dhl Fashion (France) sas | France, La Plaine Saint-Denis | 100.00 | eur | 2,383 | –14,221 |
| dhl Finance Services b. v. | Netherlands, Maastricht | 100.00 | eur | 1,795 | – 402 |
| dhl FoodServices GmbH 6, 9 | Germany, Cologne | 100.00 | eur | 258 | 0 |
| dhl Freight (Belgium) nv | Belgium, Grimbergen | 100.00 | eur | 4,963 | –196 |
| dhl Freight (France) sas | France, Marne-la-Vallée | 100.00 | eur | 3,538 | – 5,471 |
| dhl Freight (Netherlands) b. v. | Netherlands, Tiel | 100.00 | eur | – 9,594 | – 4,059 |
| dhl Freight (Sweden) ab | Sweden, Stockholm | 100.00 | eur | 41,020 | 4,940 |
| dhl Freight and Contract Logistics (uk) Limited | United Kingdom, Milton Keynes | 100.00 | eur | –2,339 | 2,517 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Freight Finland Oy | Finland, Vantaa | 100.00 | eur | 16,717 | 4,935 |
| dhl Freight Germany Holding GmbH 6, 9 | Germany, Düsseldorf | 100.00 | eur | 301,204 | 0 |
| dhl Freight GmbH 6, 9 | Germany, Düsseldorf | 100.00 | eur | 10,737 | 0 |
| dhl Freight Hungary Forwarding and Logistics Ltd. | Hungary, Budapest | 100.00 | eur | 47 | –195 |
| dhl Freight Services (Netherlands) b. v. | Netherlands, Tiel | 100.00 | eur | 5,358 | 2,735 |
| dhl Freight Spain, s. l. | Spain, San Sebastián | 100.00 | eur | 5,331 | 282 |
| dhl gbs (uk) Limited | United Kingdom, Bracknell | 100.00 | eur | 9,648 | 2,626 |
| dhl Global Forwarding – dgf Industrial Project (dgf ip) sas | France, La Garenne-Colombes | 100.00 | eur | 1,272 | – 463 |
| dhl Global Forwarding (Austria) GmbH | Austria, Vienna | 100.00 | eur | 18,407 | 1,008 |
| dhl Global Forwarding (Belgium) nv | Belgium, Zaventem | 100.00 | eur | 16,140 | 3,953 |
| dhl Global Forwarding (cz) s. r. o. | Czech Republic, Prague | 100.00 | eur | 25,218 | 1,912 |
| dhl Global Forwarding (Denmark) a / s | Denmark, Kastrup | 100.00 | eur | 11,972 | 266 |
| dhl Global Forwarding (Finland) Oy | Finland, Vantaa | 100.00 | eur | 4,693 | 2,771 |
| dhl Global Forwarding (France) sas | France, La Plaine Saint-Denis | 100.00 | eur | 49,556 | 7,929 |
| dhl Global Forwarding (Ireland) Limited | Ireland, Dublin | 100.00 | eur | 9,401 | 2,647 |
| dhl Global Forwarding (Italy) S. p. A. | Italy, Milan | 100.00 | eur | 48,995 | 16,985 |
| dhl Global Forwarding (Luxembourg) s. a. | Luxembourg, Luxembourg | 100.00 | eur | 1,799 | 438 |
| dhl Global Forwarding (Netherlands) b. v. | Netherlands, Hoofddorp | 100.00 | eur | 19,985 | 10,050 |
| dhl Global Forwarding (Norway) as | Norway, Gardermoen | 100.00 | eur | 445 | –1,275 |
| dhl Global Forwarding (sweden) ab | Sweden, Kista | 100.00 | eur | 18,048 | 3,985 |
| dhl Global Forwarding (uk) Limited | United Kingdom, Staines | 100.00 | eur | 157,847 | 36,127 |
| dhl Global Forwarding GmbH 6, 9 | Germany, Frankfurt / Main | 100.00 | eur | 14,658 | 0 |
| dhl Global Forwarding Hellas s. a. of International | |||||
| Transportation and Logistics | Greece, Piraeus | 100.00 | eur | 5,734 | – 414 |
| dhl Global Forwarding Hungary Kft. | Hungary, Vecses | 100.00 | eur | 14,615 | 3,137 |
| dhl Global Forwarding Management GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 25 | 0 |
| dhl Global Forwarding Portugal, Lda. | Portugal, Moreira da Maia | 100.00 | eur | 3,678 | 1,276 |
| dhl Global Forwarding Sp. z o. o. | Poland, Lodz | 100.00 | eur | 8,627 | 3,321 |
| dhl Global Forwarding Spain, s. l. u. | Spain, Madrid | 100.00 | eur | 19,144 | 6,061 |
| dhl Global Mail (uk) Limited | United Kingdom, Bracknell | 100.00 | eur | – 42,408 | –26,300 |
| dhl Global Mail Nordic ab | Sweden, Stockholm | 100.00 | eur | 1,268 | 1,045 |
| dhl Global Mail ooo | Russia, Moscow | 100.00 | eur | 6 | –22 |
| dhl Global Management GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 3,618,590 | 0 |
| dhl Group Services nv / sa | Belgium, Zaventem | 100.00 | eur | 1,369 | 3 |
| dhl Holding (France) sas | France, Roissy-en-France | 100.00 | eur | 761,551 | 14,019 |
| dhl Holding (Italy) S. r. l. | Italy, Milan | 100.00 | eur | 254,299 | 13,721 |
| dhl Holdings (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 93 | 0 |
| dhl Home Delivery GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 179 | 0 |
| dhl Hub Leipzig GmbH 6, 9 | Germany, Schkeuditz | 100.00 | eur | 3,412 | 0 |
| dhl Information Services (Europe) s. r. o. | Czech Republic, Prague | 100.00 | eur | 84,488 | 4,566 |
| dhl Inter Limited 5 | United Kingdom, Moss End | 100.00 | eur | 0 | 0 |
| dhl International (Albania) Ltd. | Albania, Tirana | 100.00 | eur | 403 | 153 |
| dhl International (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 1,055 | 6 |
| dhl International (Romania) s. r. l. | Romania, Bucharest | 100.00 | eur | 3,221 | 849 |
| dhl International (uk) Limited | United Kingdom, Hounslow | 100.00 | eur | 38,624 | 7,917 |
| dhl International (Ukraine) jsc | Ukraine, Kiev | 100.00 | eur | 2,502 | 229 |
| dhl International ab 8 | Sweden, Stockholm | 100.00 | eur | 4,100 | 0 |
| dhl International b. v. | Netherlands, The Hague | 100.00 | eur | 11,604 | 4,795 |
| dhl International d. o. o. | Croatia, Zagreb | 100.00 | eur | 2,165 | 295 |
| dhl International Express (France) sas | France, Roissy-en-France | 100.00 | eur | 26,805 | 2,777 |
| dhl International GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 1,353,453 | 0 |
| dhl International Ltd. | Malta, Luqa | 100.00 | eur | 456 | 21 |
| dhl International nv / sa | Belgium, Diegem | 100.00 | eur | 11,143 | 2,133 |
| dhl International zao, Russia | Russia, Moscow | 100.00 | eur | 10,663 | 39,570 |
| dhl International-Sarajevo d. o. o. | Bosnia and Herzegovina, Sarajevo | 100.00 | eur | 474 | 115 |
| dhl Investments Limited | United Kingdom, St. Helier | 100.00 | eur | –33,770 | –2,822 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Latvia sia | Latvia, Riga | 100.00 | eur | – 8 | 342 |
| dhl Logistica d. o. o. | Slovenia, Brnik | 100.00 | eur | 1,235 | 340 |
| dhl Logistics (Schweiz) ag | Switzerland, Basel | 100.00 | eur | 37,679 | 7,456 |
| dhl Logistics (Slovakia), spol. s r. o. | Slovakia, Senec | 100.00 | eur | 4,208 | 1,580 |
| dhl Logistics (Ukraine) Ltd. | Ukraine, Kiev | 100.00 | eur | 70 | –72 |
| dhl Logistics GmbH 6, 9 | Germany, Hamburg | 100.00 | eur | 895 | 0 |
| dhl Logistics ooo | Russia, Chimki | 100.00 | eur | 7,514 | 7,535 |
| dhl Logistics s. r. l. | Romania, Bucharest | 100.00 | eur | 882 | 151 |
| dhl Logistik Service GmbH | Austria, Vienna | 100.00 | eur | –342 | 741 |
| dhl Management (Schweiz) ag | Switzerland, Basel | 100.00 | eur | 26,583 | 4,104 |
| dhl Management Services Limited | United Kingdom, Hounslow | 100.00 | eur | 218 | 16 |
| dhl Medjunarodni Vazdusni Ekspres d. o. o. | Serbia, Belgrade | 100.00 | eur | 2,894 | 456 |
| dhl Mitry sarl | France, La Plaine Saint-Denis | 100.00 | eur | –3,428 | –1,832 |
| dhl Nordic ab | Sweden, Stockholm | 100.00 | eur | 74,989 | 7,859 |
| dhl Packaging s. r. o. | Czech Republic, Pohořelice | 70.00 | eur | –116 | 114 |
| dhl Pipelife Logistik GmbH | Austria, Vienna | 100.00 | eur | 107 | –118 |
| dhl Quality Cargo as | Norway, Oslo | 100.00 | eur | 973 | –384 |
| dhl Rail ab | Sweden, Trelleborg | 100.00 | eur | 436 | 272 |
| dhl Sainghin sarl | France, La Plaine Saint-Denis | 100.00 | eur | –2,683 | –1,466 |
| dhl Sandouville sarl | France, La Plaine Saint-Denis | 100.00 | eur | 63 | 10 |
| dhl sc Transport sasu | France, La Plaine Saint-Denis | 100.00 | eur | – 436 | –1,896 |
| dhl Service Central eurl | France, La Plaine Saint-Denis | 100.00 | eur | 1,001 | 1,360 |
| dhl Services Limited | United Kingdom, Milton Keynes | 100.00 | eur | 147,947 | 51,099 |
| dhl Services Logistiques sas | France, La Plaine Saint-Denis | 100.00 | eur | 4,721 | –3,486 |
| dhl Shoe Logistics s. r. o. | Czech Republic, Pohořelice | 100.00 | eur | 1,123 | 21 |
| dhl Solutions (Belgium) nv | Belgium, Mechelen | 100.00 | eur | 27,348 | –1,056 |
| dhl Solutions (France) sas | France, La Plaine Saint-Denis | 100.00 | eur | 27,886 | –3,603 |
| dhl Solutions Fashion GmbH 6, 9 | Germany, Essen | 100.00 | eur | 102 | 0 |
| dhl Solutions GmbH 6, 9 | Germany, Hamburg | 100.00 | eur | 9,240 | 0 |
| dhl Solutions Großgut GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 1,051 | 0 |
| dhl Solutions Retail GmbH 6, 9 | Germany, Unna | 100.00 | eur | 49 | 0 |
| dhl Solutions s. r. o. | Czech Republic, Ostrava | 100.00 | eur | 6,350 | 259 |
| dhl Stenvreten Kommanditbolag | Sweden, Stockholm | 100.00 | eur | –1,712 | 0 |
| dhl Stock Express sas | France, La Plaine Saint-Denis | 100.00 | eur | 5,155 | – 5,669 |
| dhl Strasbourg sarl | France, La Plaine Saint-Denis | 100.00 | eur | – 58 | –280 |
| dhl Supply Chain (Belgium) nv | Belgium, Mechelen | 100.00 | eur | 5,037 | –1,048 |
| dhl Supply Chain (Ireland) Limited | Ireland, Dublin | 100.00 | eur | 14,354 | 815 |
| dhl Supply Chain (Italy) S. p. A. | Italy, Milan | 100.00 | eur | 37,665 | – 65 |
| dhl Supply Chain (Netherlands) b. v. | Netherlands, Tilburg | 100.00 | eur | 67,855 | 10,161 |
| dhl Supply Chain (Norway) as | Norway, Oslo | 100.00 | eur | 5,935 | 3,457 |
| dhl Supply Chain Management b. v. | Netherlands, Tilburg | 100.00 | eur | –27,624 | 1,175 |
| dhl Supply Chain Management GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 25 | 0 |
| dhl Supply Chain, s. r. o. | Czech Republic, Pohořelice | 100.00 | eur | 8,739 | 2,152 |
| dhl Systems Limited | United Kingdom, Milton Keynes | 100.00 | eur | 207 | 196 |
| dhl Technical Distribution b. v. | Netherlands, Veghel | 100.00 | eur | –2,132 | – 41 |
| dhl Trade Fairs & Events GmbH 6, 9 | Germany, Frankfurt / Main | 100.00 | eur | 607 | 0 |
| dhl Trade Fairs and Events (uk) Limited | United Kingdom, Staines | 85.00 | eur | 355 | 164 |
| dhl Vehicle Services (uk) Limited | United Kingdom, Hounslow | 100.00 | eur | 0 | 1,796 |
| dhl Vertriebs GmbH & Co. ohg 6, 9 | Germany, Bonn | 100.00 | eur | 45,000 | 0 |
| dhl Verwaltungs GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 162 | 0 |
| dhl Voigt International GmbH | Germany, Neumünster | 51.00 | eur | 1,379 | 1,050 |
| dhl Wahl International GmbH | Germany, Bielefeld | 51.00 | eur | 1,121 | 415 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Worldwide Express Logistics nv / sa | Belgium, Diegem | 100.00 | eur | 21,125 | 3,330 |
| dhl Worlwide Network nv / sa | Belgium, Diegem | 100.00 | eur | 20,759 | 1,223 |
| dz Specialties b. v. | Netherlands, Utrecht | 100.00 | eur | 87,685 | 4,674 |
| Erste End of Runway Development Leipzig GmbH 6, 9 | Germany, Cologne | 100.00 | eur | 25 | 0 |
| Erste Logistik Entwicklungsgesellschaft mg GmbH 6, 9 | Germany, Hanover | 100.00 | eur | 25 | 0 |
| Eurodifarm S. r. l. | Italy, Casalmaiocco (Lodi) | 100.00 | eur | 7,221 | 2,195 |
| European Air Transport Leipzig GmbH 6, 9 | Germany, Schkeuditz | 100.00 | eur | 1,798 | 0 |
| Exel (European Services Centre) Ltd. 5 | Ireland, Dublin | 100.00 | eur | 0 | 0 |
| Exel (Wommelgem) nv | Belgium, Wommelgem | 100.00 | eur | – 4,195 | –778 |
| Exel Czech Republic s. r. o. 5 | Czech Republic, Prague | 100.00 | eur | 382 | 0 |
| Exel de Portugal Transitários Lda. | Portugal, Lisbon | 100.00 | eur | 86 | – 5 |
| Exel Eiendom as | Norway, Oslo | 100.00 | eur | 12,582 | 366 |
| Exel Environmental Developments Limited | United Kingdom, Bracknell | 100.00 | eur | 0 | –1 |
| Exel Europe Limited | United Kingdom, Milton Keynes | 100.00 | eur | 376,903 | 81,994 |
| Exel Finance (1986) Limited 5 | United Kingdom, Bedford | 100.00 | eur | 0 | 0 |
| Exel Finance Limited | United Kingdom, Bedford | 100.00 | eur | 372 | 68 |
| Exel France sa | France, La Plaine Saint-Denis | 100.00 | eur | 158,586 | 15,247 |
| Exel Freight Management (uk) Limited | United Kingdom, Bracknell | 100.00 | eur | 13,025 | 5,294 |
| Exel Freight sas | France, Roissy-en-France | 100.00 | eur | 303 | 244 |
| Exel Group Holdings (Nederland) b. v. | Netherlands, Veghel | 100.00 | eur | 50,637 | –1,168 |
| Exel Head Offi ce Services Limited 5 | United Kingdom, Bedford | 100.00 | eur | 0 | 0 |
| Exel Healthcare (Belgium) nv | Belgium, Mechelen | 100.00 | eur | 81,268 | 24,638 |
| Exel Holdings Limited | United Kingdom, Bedford | 100.00 | eur | 760,709 | 53,511 |
| Exel Insurance Limited | United Kingdom, St. Peter Port | 100.00 | eur | 8,219 | 188 |
| Exel International Holdings (Belgium) nv | Belgium, Mechelen | 100.00 | eur | 89,813 | 725 |
| Exel International Holdings (Netherlands 1) b. v. | Netherlands, Veghel | 100.00 | eur | 694,148 | –1,512 |
| Exel International Holdings (Netherlands 2) b. v. | Netherlands, Veghel | 100.00 | eur | 1,095,510 | 4,792 |
| Exel Investments Limited | United Kingdom, Bracknell | 100.00 | eur | 232,992 | 59,497 |
| Exel Investments Netherlands b. v. | Netherlands, Veghel | 100.00 | eur | 225 | 0 |
| Exel Limited | United Kingdom, Bracknell | 100.00 | eur | 924,302 | 4,824 |
| Exel Logistics (Northern Ireland) Limited | United Kingdom, Mallusk | 100.00 | eur | 14 | 15 |
| Exel Logistics Property Limited | United Kingdom, Bedford | 100.00 | eur | 56,725 | 2,412 |
| Exel Management Services No 2 Limited 5 | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Exel Overseas Limited | United Kingdom, Bracknell | 100.00 | eur | 229,037 | 72,135 |
| Exel Supply Chain Solutions Ltd. | Ireland, Dublin | 100.00 | eur | 63 | 383 |
| Exel uk Limited | United Kingdom, Bracknell | 100.00 | eur | 52,395 | 2,502 |
| f.x. Coughlin b. v. | Netherlands, Duiven | 100.00 | eur | 2,744 | 396 |
| f. x. Coughlin (u. k.) Limited | United Kingdom, Bracknell | 100.00 | eur | 3,027 | 488 |
| fact Denmark a / s | Denmark, Kastrup | 100.00 | eur | 722 | 86 |
| Fashion Logistics Limited | United Kingdom, Bracknell | 100.00 | eur | 1,053 | 617 |
| First Mail Düsseldorf GmbH 6, 9 | Germany, Düsseldorf | 100.00 | eur | –2,242 | 0 |
| Formation e-Document Solutions Limited | United Kingdom, London | 100.00 | eur | 12 | 0 |
| Freight Indemnity and Guarantee Company Limited | United Kingdom, Bedford | 100.00 | eur | 20 | 0 |
| Fusion Premedia Group Limited | United Kingdom, London | 100.00 | eur | –12 | 0 |
| Gerlach & Co Internationale Expediteurs b. v. | Netherlands, Venlo | 100.00 | eur | 2,776 | 375 |
| Gerlach & Co. nv | Belgium, Antwerp | 100.00 | eur | 5,459 | 287 |
| Gerlach ag | Switzerland, Basel | 100.00 | eur | 7,367 | 6,301 |
| Gerlach Customs Services eood | Bulgaria, Sofi a | 100.00 | eur | –13 | 14 |
| Gerlach European Customs Services, spol. s r. o. | Slovakia, Senec | 100.00 | eur | 114 | – 42 |
| Gerlach Sp. z o. o. | Poland, Gluchowo / Komorniki | 100.00 | eur | 597 | 44 |
| Gerlach Spol s. r. o. | Czech Republic, Rudna u Prahy | 100.00 | eur | 3,034 | 2,264 |
| Gerlach Zolldienste GmbH 6, 9 | Germany, Düsseldorf | 100.00 | eur | 102 | 0 |
| Giorgio Gori S. r. l. | Italy, Collesalvetti (Livorno) | 60.00 | eur | 20,756 | 7,726 |
| Giorgio Gori (France) sas | France, Châtenoy-le-Royal | 100.00 | eur | 1,484 | 315 |
| Global Mail (Austria) Ges. m. b. H. | Austria, Vienna | 100.00 | eur | 1,703 | 51 |
| Gori Iberia s. l. | Spain, Barcelona | 100.00 | eur | 1,757 | 851 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Gori Iberia Transitários, Limitada | Portugal, Matosinhos | 60.00 | eur | 834 | 468 |
| Güll GmbH | Germany, Lindau (Lake Constance) | 51.00 | eur | 3,250 | 569 |
| Henderson Line Limited 8 | United Kingdom, Glasgow | 100.00 | eur | 121 | 0 |
| Higgs International Limited | United Kingdom, Bracknell | 100.00 | eur | 13,691 | 505 |
| Historia Sp. z o. o. 8 | Poland, Piaseczno | 100.00 | eur | –143 | 0 |
| Hull, Blyth (Angola) Limited | United Kingdom, Bracknell | 100.00 | eur | – 6,548 | –1,405 |
| Hyperion Properties Limited 5 | United Kingdom, Bedford | 100.00 | eur | – 5,363 | 0 |
| Interlanden b. v. 1 | Netherlands, Apeldoorn | 100.00 | eur | –21,586 | 6,478 |
| Wegener Transport b. v. 1 | Netherlands, Apeldoorn | 70.00 | eur | – | – |
| interServ Gesellschaft für Personal und Beraterdienstleistungen mbH 6, 9 |
Germany, Bonn | 100.00 | eur | 76 | 0 |
| itg Global Logistics b. v. | Netherlands, Amsterdam | 100.00 | eur | 479 | –140 |
| itg GmbH Internationale Spedition und Logistik 6, 9 | Germany, Schwaig / Oberding | 100.00 | eur | 2,494 | 0 |
| itg Internationale Spedition GmbH | Austria, Vienna | 100.00 | eur | 59 | 7 |
| Joint Retail Logistics Limited | United Kingdom, Bracknell | 100.00 | eur | 0 | 993 |
| Kampton | Ireland, Cork | 100.00 | eur | – 90 | –12 |
| Karukera Transit sas | France, Pointe-à-Pitre | 100.00 | eur | 1,190 | –163 |
| Laible ag Speditionen | Switzerland, Schaffhausen | 100.00 | eur | 1,275 | 767 |
| llc Customs Broker | Russia, Khimki | 100.00 | eur | –14 | –23 |
| llc Customs Services | Russia, Khimki | 100.00 | eur | 509 | 499 |
| llc dhl Express | Russia, Khimki | 100.00 | eur | –350 | –364 |
| llc Williams Lea | Russia, Moscow | 100.00 | eur | –216 | –194 |
| McGregor Cory Limited | United Kingdom, Bracknell | 100.00 | eur | 19,829 | 4,019 |
| McGregor Sea & Air Services Limited | United Kingdom, Bracknell | 100.00 | eur | 359 | 0 |
| Mercury Holdings Limited | United Kingdom, Bracknell | 100.00 | eur | 1,912 | 0 |
| Multimar Seefrachtenkontor Gesellschaft m. b. H. | Austria, Vienna | 100.00 | eur | 278 | 0 |
| National Carriers Limited | United Kingdom, Bedford | 100.00 | eur | 45 | 42 |
| nfc International Holdings (Ireland) | Ireland, Dublin | 100.00 | eur | 39,467 | 883 |
| nugg.ad ag predictive behavioral targeting | Germany, Berlin | 100.00 | eur | 1,229 | 955 |
| Ocean Group Investments Limited | United Kingdom, Bracknell | 100.00 | eur | 16,640 | 5,793 |
| Ocean Overseas (Luxembourg) Sarl | Luxembourg, Luxembourg | 100.00 | eur | 1,858 | 4,748 |
| Ocean Overseas Holdings Limited | United Kingdom, Bracknell | 100.00 | eur | 476,073 | 54,243 |
| 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 |
| Pharma Logistics b. v. | Netherlands, Rotterdam | 100.00 | eur | 359 | 16 |
| Pharma Logistics nv | Belgium, Mechelen | 100.00 | eur | 12,254 | 2,179 |
| Power Europe (Cannock) Limited | United Kingdom, Bracknell | 100.00 | eur | 1,366 | 2,577 |
| Power Europe (Doncaster) Limited | United Kingdom, Bracknell | 100.00 | eur | 1,049 | 1,073 |
| Power Europe Development Limited | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Power Europe Development No. 3 Limited | United Kingdom, Bracknell | 100.00 | eur | 450 | 502 |
| Power Europe Limited | United Kingdom, Bracknell | 100.00 | eur | –1,086 | – 526 |
| Power Europe Operating Limited | United Kingdom, Bracknell | 100.00 | eur | 8,827 | 2,297 |
| ppl cz s. r. o. | Czech Republic, Prague | 100.00 | eur | 85,399 | 10,100 |
| Presse-Service Güll GmbH | Switzerland, St. Gallen | 51.00 | eur | 856 | 335 |
| rdc Properties Limited | United Kingdom, Bracknell | 100.00 | eur | 49 | 46 |
| Rosier Tankers Limited 5 | United Kingdom, Hounslow | 100.00 | eur | –3,213 | 0 |
| Ross House (al) Limited 5 | United Kingdom, Bracknell | 100.00 | eur | 359 | 0 |
| Scherbauer Spedition GmbH 7b | Germany, Neutraubling | 50.00 | eur | 4,388 | 1,601 |
| Selektvracht b. v. | Netherlands, Utrecht | 100.00 | eur | 12,660 | 4,493 |
| sgb Speditionsgesellschaft mbH 6, 9 | Germany, Munich | 100.00 | eur | 3,812 | 0 |
| Smoke and Mirrors Productions Limited | United Kingdom, London | 100.00 | eur | 6,426 | 970 |
| Speedmail International Limited 5 | United Kingdom, London | 100.00 | eur | 10,461 | 0 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| StarBroker ag | Switzerland, Basel | 100.00 | eur | 25,495 | – 672 |
| Sydney Cooper (Distribution) Ltd. 5 | Ireland, Dublin | 100.00 | eur | 0 | 0 |
| t & B Whitwood Holdings Limited | United Kingdom, Bracknell | 100.00 | eur | 6 | 2 |
| Tag @ Baker Street Limited 5 | United Kingdom, London | 100.00 | eur | 0 | 0 |
| Tag @ Ogilvy Limited 5 | United Kingdom, London | 100.00 | eur | 165 | 0 |
| Tag Acquisitions Limited | United Kingdom, London | 100.00 | eur | – 8,415 | –1,203 |
| Tag At rkcr / yr Limited 5 | United Kingdom, London | 100.00 | eur | 38 | 0 |
| Tag Creative Limited | United Kingdom, London | 100.00 | eur | 2,449 | 118 |
| Tag EquityCo Limited | Cayman Islands, Grand Cayman | 100.00 | eur | 7,618 | –1,175 |
| Tag Europe Limited | United Kingdom, London | 100.00 | eur | 38,456 | 5,374 |
| Tag Germany GmbH | Germany, Düsseldorf | 100.00 | eur | 1,046 | –31 |
| Tag Holdco Limited | United Kingdom, London | 100.00 | eur | 55 | 0 |
| Tag NewCo Limited | United Kingdom, London | 100.00 | eur | –131 | 0 |
| Tag Pac Limited | United Kingdom, London | 100.00 | eur | –766 | 22 |
| Tag Print Services Limited | United Kingdom, London | 100.00 | eur | –310 | 98 |
| Tag Response Limited | United Kingdom, London | 100.00 | eur | 6,681 | 941 |
| Tag Storage Limited | United Kingdom, London | 100.00 | eur | 42,252 | 1,147 |
| Tag Topco Limited | United Kingdom, London | 100.00 | eur | 31,252 | –21,279 |
| Tag Worldwide France sarl | France, Paris | 100.00 | eur | –228 | – 90 |
| Tag Worldwide Group Limited | United Kingdom, London | 100.00 | eur | 1,046 | –2,704 |
| Tag Worldwide Holdings Limited | United Kingdom, London | 100.00 | eur | 4,028 | 0 |
| Tankfreight (Ireland) Ltd. 5 | Ireland, Dublin | 100.00 | eur | 0 | 0 |
| tbmm Holdings Limited | United Kingdom, Bracknell | 100.00 | eur | 41 | 0 |
| The Admagic Group Limited | United Kingdom, London | 100.00 | eur | 1 | 0 |
| The Stationery Offi ce Group Limited | United Kingdom, London | 100.00 | eur | 19,973 | 0 |
| The Stationery Offi ce Holdings Limited | United Kingdom, London | 100.00 | eur | 82,623 | – 4,207 |
| The Stationery Offi ce Limited | United Kingdom, London | 100.00 | eur | 168,611 | 18,632 |
| Tibbett & Britten Group (Ireland) Limited | Ireland, Dublin | 100.00 | eur | 2,254 | –2,700 |
| Tibbett & Britten Group Limited | United Kingdom, Bracknell | 100.00 | eur | 26,260 | 71 |
| Tibbett & Britten International Limited | United Kingdom, Bracknell | 100.00 | eur | 2,819 | 208 |
| Tradeteam Limited | United Kingdom, Bedford | 50.10 | eur | 25,930 | 9,046 |
| Traditrade Holding s. a. | Luxembourg, Luxembourg | 100.00 | eur | 22 | 0 |
| Transfl ash McGregor (Ireland) Ltd. | Ireland, Dublin | 100.00 | eur | 10,441 | 4,987 |
| Transportbedrijf h. de Haan Vianen b. v. 5 | Netherlands, Rotterdam | 100.00 | eur | 4,674 | 0 |
| The Stationery Offi ce Enterprises Limited | United Kingdom, London | 100.00 | eur | – 46,263 | 0 |
| tso Holdings a Limited | United Kingdom, London | 100.00 | eur | 19,888 | 0 |
| tso Holdings b Limited | United Kingdom, London | 100.00 | eur | 36,166 | 0 |
| tso Property Limited | United Kingdom, London | 100.00 | eur | 12,496 | 517 |
| uab dhl Lietuva | Lithuania, Vilnius | 100.00 | eur | 1,638 | 670 |
| Véron Grauer ag | Switzerland, Basel | 100.00 | eur | 2,337 | 1,925 |
| Vetsch ag, Internationale Transporte 1 | Switzerland, Buchs | 100.00 | eur | 1,204 | 173 |
| Vetsch Internationale Transporte GmbH 1 | Austria, Wolfurt | 100.00 | eur | – | – |
| Werbeagentur Janssen GmbH 6, 9 | Germany, Düsseldorf | 100.00 | eur | 213 | 0 |
| Williams Lea Belgium bvba | Belgium, Ternat | 100.00 | eur | –260 | 21 |
| Williams Lea Deutschland GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 1,814 | 0 |
| Williams Lea Finnland Oy | Finland, Vantaa | 100.00 | eur | 120 | – 43 |
| Williams Lea France sas | France, Paris | 100.00 | eur | 312 | – 445 |
| Williams Lea GmbH 6, 9 | Germany, Munich | 100.00 | eur | 25 | 0 |
| Williams Lea Group Limited 1 | United Kingdom, London | 100.00 | eur | 147,686 | 46 |
| Williams Lea (No. 1) Ltd. 1 | United Kingdom, London | 100.00 | eur | – | – |
| Williams Lea Group Management Services Limited | United Kingdom, London | 100.00 | eur | –218 | –233 |
| Williams Lea Holdings plc | United Kingdom, London | 96.46 | eur | 474,244 | –1,195 |
| Williams Lea Hungary Kft. | Hungary, Budapest | 100.00 | eur | –18 | 8 |
| Williams Lea Inhouse Solutions GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 1,534 | 0 |
| Williams Lea Ireland Limited | Ireland, Dublin | 100.00 | eur | 2,149 | 28 |
| Williams Lea Italia S. r. l. | Italy, Rome | 100.00 | eur | 9 | –21 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Williams Lea Limited | United Kingdom, London | 100.00 | eur | 64,073 | 8,658 |
| Williams Lea Netherlands b. v. | Netherlands, Amsterdam | 100.00 | eur | –1,379 | –770 |
| Williams Lea s. l. | Spain, Barcelona | 100.00 | eur | 9 | –155 |
| Williams Lea Sweden ab | Sweden, Nyköping | 100.00 | eur | 882 | –3 |
| Williams Lea uk Limited | United Kingdom, London | 100.00 | eur | 384 | 22 |
| Williams Lea Ukraine | Ukraine, Kiev | 100.00 | eur | 133 | 43 |
| Williams Lea, s. r. o. | Czech Republic, Brno | 100.00 | eur | 1,800 | – 9 |
| World Writers Limited | United Kingdom, London | 100.00 | eur | 8,747 | 1,466 |
| Zweite Logistik Entwicklungsgesellschaft mg GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 25 | 0 |
| Americas | |||||
| Advance Logistics Inc. | usa, Westerville | 100.00 | eur | 307 | 375 |
| aei Drawback Services Inc. | usa, Miami | 100.00 | eur | 11,319 | 1,081 |
| Aero Express del Ecuador (TransAm) Ltda. | Ecuador, Guayaquil | 100.00 | eur | 1,923 | 407 |
| Aero Express del Ecuador TransAm Cia Ltd. (Colombian Branch) Colombia, Bogotá | 100.00 | eur | 503 | 493 | |
| Agencia de Aduanas dhl Express Colombia Ltda. | Colombia, Bogotá | 100.00 | eur | 2,058 | – 42 |
| agencia de aduanas dhl global forwarding (colombia) s. a. nivel 1 |
Colombia, Bogotá | 100.00 | eur | 2,816 | –229 |
| Air Express International usa, Inc. | usa, Miami | 100.00 | eur | –33,993 | –16,578 |
| astar Air Cargo Holdings, llc | usa, Miami | 100.00 | eur | –188,424 | –205 |
| Circuit Logistics Inc. | Canada, Toronto | 100.00 | eur | 155 | 125 |
| Compass Logistics Inc. | usa, Westerville | 100.00 | eur | – 4 | 0 |
| Connect Logistics Services Inc. | Canada, Toronto | 100.00 | eur | 2,424 | 5,593 |
| Danzas Corporation | usa, Miami | 100.00 | eur | –29,987 | 2,443 |
| dhl (Bahamas) Limited | Bahamas, Nassau | 100.00 | eur | 949 | – 85 |
| dhl (Barbados) Ltd. | Barbados, Christ Church | 100.00 | eur | 1,625 | – 60 |
| dhl (Bolivia) srl | Bolivia, Santa Cruz de la Sierra | 100.00 | eur | 6,539 | 1,412 |
| dhl (bvi) Ltd. | British Virgin Islands, Tortola | 100.00 | eur | 1,679 | 29 |
| dhl (Costa Rica) s. a. | Costa Rica, San José | 100.00 | eur | 12,274 | – 4,068 |
| dhl (Honduras) s. a. de c. v. | Honduras, San Pedro Sula | 100.00 | eur | 5,524 | 2,112 |
| dhl (Jamaica) Ltd. | Jamaica, Kingston | 100.00 | eur | 1,164 | –28 |
| dhl (Paraguay) s. r. l. | Paraguay, Asunción | 100.00 | eur | 6,433 | 2,278 |
| dhl (Trinidad and Tobago) Limited | Trinidad and Tobago, Port of Spain | 100.00 | eur | –178 | –16 |
| dhl (Uruguay) s. r. l. | Uruguay, Montevideo | 100.00 | eur | 9,980 | 4,060 |
| dhl Aero Expresso s. a. 7a | Panama, Panama City | 49.00 | eur | 23,363 | 2,110 |
| dhl Arwest (Panama) s. a. 1 | Panama, Panama City | 100.00 | eur | –3,138 | 349 |
| 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, Ecatepec | 100.00 | eur | – | – |
| dhl Aviation (Costa Rica) s. a. | Costa Rica, San José | 100.00 | eur | 2,136 | 303 |
| dhl Aviation Americas, Inc. | usa, Plantation | 100.00 | eur | 1,633 | 61 |
| dhl Corporate Services sc México | Mexico, Tepotzotlán | 100.00 | eur | 5,412 | –1,072 |
| dhl Customer Support (Costa Rica) s. a. | Costa Rica, San José | 100.00 | eur | 87 | 437 |
| dhl Customs (Costa Rica) s. a. | Costa Rica, San José | 100.00 | eur | –1,057 | –1,394 |
| dhl Customs Brokerage Ltd. | Canada, Mississauga | 100.00 | eur | –1,404 | – 966 |
| dhl de Guatemala s. a. 7a | Guatemala, Guatemala City | 49.00 | eur | 12,243 | 1,365 |
| dhl Dominicana sa | Dominican Republic, Santo Domingo | 100.00 | eur | 2,126 | –141 |
| dhl Exel Supply Chain (Argentina) s. a. | Argentina, Buenos Aires | 100.00 | eur | 3,878 | – 5,981 |
| dhl Express (Argentina) s. a. | Argentina, Buenos Aires | 100.00 | eur | 13,175 | 1,692 |
| dhl Express (Brazil) Ltda. | Brazil, São Paulo | 100.00 | eur | 22,247 | 10,252 |
| dhl Express (Canada) Ltd. | Canada, Mississauga | 100.00 | eur | –215,703 | –22,217 |
| dhl Express (Chile) Ltda. | Chile, Santiago de Chile | 100.00 | eur | 33,975 | 19,514 |
| dhl Express (Ecuador) s. a. | Ecuador, Quito | 100.00 | eur | 5,404 | 2,297 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Express (El Salvador) s. a. de c. v. 1 | El Salvador, San Salvador | 100.00 | eur | 2,649 | 1,584 |
| 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 | 50,701 | 34,858 |
| dhl Express Aduanas Peru s. a. c. | Peru, Callao | 100.00 | eur | 2,199 | 370 |
| dhl Express Aduanas Venezuela c. a. | Venezuela, Caracas | 100.00 | eur | 2,313 | 1,637 |
| dhl Express Colombia Ltda. | Colombia, Bogotá | 100.00 | eur | 7,216 | 2,764 |
| dhl Express México, s. a. de c. v. | Mexico, Mexico City | 100.00 | eur | 25,147 | 18,878 |
| dhl Express Peru s. a. c. | Peru, Callao | 100.00 | eur | 12,078 | 2,545 |
| dhl Fletes Aereos, c. a. | Venezuela, Caracas | 100.00 | eur | 13,869 | 4,002 |
| dhl Freight usa Inc. | usa, Plantation | 100.00 | eur | –3,966 | –2,022 |
| dhl Global Customer Solutions (usa) Inc. | usa, Plantation | 100.00 | eur | 2,169 | 962 |
| dhl Global Forwarding (Argentina) s. a. | Argentina, Buenos Aires | 100.00 | eur | 7,016 | 404 |
| dhl Global Forwarding (Canada) Inc. | Canada, Mississauga | 100.00 | eur | 63,319 | 5,393 |
| dhl Global Forwarding (Chile) s. a. | Chile, Santiago de Chile | 100.00 | eur | 16,927 | 2,658 |
| dhl Global Forwarding (Colombia) Ltda. | Colombia, Bogotá | 100.00 | eur | 2,261 | – 54 |
| dhl Global Forwarding (Ecuador) s. a. | Ecuador, Quito | 100.00 | eur | 1,173 | –1,766 |
| dhl Global Forwarding (El Salvador) s. a. 1 | El Salvador, San Salvador | 100.00 | eur | 1,000 | 286 |
| dhl Zona Franca El Salvador s. a. 1 | El Salvador, Antiguo Cuscatlán | 100.00 | eur | – | – |
| dhl Global Forwarding (Guatemala) s. a. 1 | Guatemala, Guatemala City | 100.00 | eur | 4,703 | 1,210 |
| 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 | 15,202 | 4,458 |
| dhl Global Forwarding (Nicaragua) s. a. | Nicaragua, Managua | 100.00 | eur | 47 | 95 |
| dhl Global Forwarding (Panama) s. a. 1 | Panama, Panama City | 100.00 | eur | 3,761 | 242 |
| dhl Holding Panama Inc. 1 | Panama, Panama City | 100.00 | eur | – | – |
| dhl Global Forwarding Deposito Aduanero (Colombia) s. a. | Colombia, Bogotá | 100.00 | eur | 3,098 | 847 |
| dhl Global Forwarding Management Latin America Inc. | usa, Coral Gables | 100.00 | eur | 620 | 0 |
| dhl Global Forwarding Peru s. a. 1 | Peru, Lima | 100.00 | eur | 4,448 | 717 |
| dhl Global Forwarding Aduanas Peru s. a. 1 | Peru, Callao | 100.00 | eur | – | – |
| dhl Global Forwarding Venezuela, c. a. | Venezuela, Caracas | 100.00 | eur | 14,536 | 10,909 |
| dhl Global Forwarding Zona Franca (Colombia) s. a. | Colombia, Bogotá | 100.00 | eur | –377 | –2,754 |
| dhl Holding Central America Inc. 1 | Panama, Panama City | 100.00 | eur | 45,364 | 5,913 |
| Lagents & Co. srl 1, 7b | Costa Rica, San José | 50.00 | eur | – | – |
| dhl Information Services (Americas), Inc. | usa, Plantation | 100.00 | eur | 1,907 | 450 |
| dhl International Antilles sarl | Martinique, Le Lamentin | 100.00 | eur | – 663 | – 52 |
| dhl International Express Ltd. | Canada, Mississauga | 100.00 | eur | 79,988 | – 410 |
| dhl International Haiti sa | Haiti, Port-au-Prince | 100.00 | eur | 211 | –174 |
| dhl Logistics (Brazil) Ltda. | Brazil, São Paulo | 100.00 | eur | 63,083 | 43,149 |
| dhl Management Cenam s. a. | Costa Rica, Heredia | 100.00 | eur | 3,362 | – 45 |
| dhl Metropolitan Logistics sc Mexico s. a. de c. v. | Mexico, Tepotzotlán | 100.00 | eur | 10,560 | –30 |
| dhl Network Operations (usa), Inc. | usa, Plantation | 100.00 | eur | –190,308 | – 4,215 |
| dhl Nicaragua, s. a. | Nicaragua, Managua | 100.00 | eur | 743 | 42 |
| dhl of Curacao n. v. | Dutch Antilles, Curaçao | 100.00 | eur | 555 | – 402 |
| dhl Panama s. a. | Panama, Panama City | 100.00 | eur | 2,702 | 200 |
| dhl Regional Services, Inc. | usa, Plantation | 100.00 | eur | 1,719 | 1,077 |
| dhl s. a. | Guatemala, Guatemala City | 100.00 | eur | 2,718 | 98 |
| dhl Sint Maarten n. v. | Dutch Antilles, Philipsburg | 100.00 | eur | 1,517 | 313 |
| dhl Solutions (usa), Inc. | usa, Westerville | 100.00 | eur | –17,765 | –316 |
| dhl Worldwide Express (Aruba) nv 5 | Aruba, Oranjestad | 100.00 | eur | 5 | 0 |
| Dimalsa Logistics Inc. | Puerto Rico, San Juan | 100.00 | eur | 1,216 | 445 |
| 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 | 1,737 | 763 |
| dpwn Holdings (usa), Inc. | usa, Plantation | 100.00 | eur | 5,164,537 | –16,098 |
| Exel Automocion s. a. de c. v. | Mexico, Tepotzotlán | 100.00 | eur | 9,919 | 2,361 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Exel Canada Ltd. | Canada, Toronto | 100.00 | eur | 2,758 | 6,074 |
| dhl Supply Chain (Chile) s. a. | Chile, Santiago | 100.00 | eur | 2,400 | 567 |
| ec Logistica s. a. | Argentina, Buenos Aires | 51.00 | eur | 210 | 129 |
| Exel Direct Inc. | usa, Westerville | 100.00 | eur | 33,082 | –1,642 |
| Exel Global Logistics do Brasil s. a. | Brazil, São Paulo | 100.00 | eur | 4,041 | – 40 |
| Exel Global Logistics Inc. | usa, Palm City | 100.00 | eur | –790 | – 4 |
| Exel Inc. | usa, Westerville | 100.00 | eur | 164,776 | 30,361 |
| Exel Investments Inc. | usa, Wilmington | 100.00 | eur | 641,414 | 25,126 |
| Exel Logistics Argentina s. a. | Argentina, Buenos Aires | 100.00 | eur | 518 | –13 |
| Exel Logistics do Nordeste Ltda. | Brazil, Camaçari | 100.00 | eur | 2,483 | –2,061 |
| Exel Supply Chain Services de México, s. a. de c. v. | Mexico, Tepotzotlán | 100.00 | eur | – 882 | – 598 |
| f. x. Coughlin do Brasil Ltda. | Brazil, São Paulo | 100.00 | eur | – 5,660 | 0 |
| Freshlink Canada Ltd. | Canada, Toronto | 100.00 | eur | 190 | –186 |
| Galaxy Logistics Inc. | usa, Westerville | 100.00 | eur | – 5,451 | – 405 |
| Genesis Logistics Inc. | usa, Westerville | 100.00 | eur | 17,121 | 4,881 |
| Giorgio Gori usa, Inc. | usa, Baltimore | 100.00 | eur | 5,634 | 2,129 |
| Global Mail, Inc. | usa, Weston | 100.00 | eur | 113,330 | 2,180 |
| Global Mail Terminal Operations (usa) llc 8 | usa, Weston | 100.00 | eur | 0 | 0 |
| Gori Argentina s. a. | Argentina, Mendoza | 96.76 | eur | 1,883 | 1,026 |
| gori chile s. a. | Chile, Santiago de Chile | 99.00 | eur | 5,577 | 913 |
| Harmony Logistics Canada Inc. | Canada, Toronto | 100.00 | eur | 629 | 740 |
| Harvest Logistics Inc. | usa, Westerville | 100.00 | eur | 396 | 361 |
| Heartland Logistics Inc. | usa, Westerville | 100.00 | eur | 1,000 | 572 |
| Hyperion Inmobilaria s. a. de c. v. | Mexico, Tepotzotlán | 100.00 | eur | 3,034 | 337 |
| Ibryl Inc. | Cayman Islands, George Town | 100.00 | eur | –28,312 | –1,285 |
| Integracion Aduanera s. a. | Costa Rica, San José | 51.00 | eur | 530 | –27 |
| itg International Transports, Inc. | usa, Boston | 100.00 | eur | 555 | 42 |
| LifeConEx llc | usa, Plantation | 100.00 | eur | –2,208 | – 615 |
| Llano Logistics lp | usa, Westerville | 100.00 | eur | 3,390 | –107 |
| Marias Falls Insurance Co., Ltd. | Bermuda, Hamilton | 100.00 | eur | 33,840 | 1,956 |
| Matrix Logistics Inc. | usa, Westerville | 100.00 | eur | 0 | 0 |
| Matrix Logistics Services Ltd. | Canada, Toronto | 100.00 | eur | 128 | 604 |
| Mercury Airfreight International Inc. | usa, Avenel | 100.00 | eur | 777 | 55 |
| Mercury Holdings Inc. | usa, Avenel | 100.00 | eur | 220 | 0 |
| Northstar Logistics Inc. 5 | usa, Westerville | 100.00 | eur | 0 | 0 |
| Pinnacle Logistics Inc. 5 | usa, Westerville | 100.00 | eur | 0 | 0 |
| Polar Air Cargo Worldwide, Inc. 7b | usa, Purchase | 49.00 | eur | 10,151 | –124 |
| Relay Logistics Inc. | Canada, Toronto | 100.00 | eur | –228 | –231 |
| Saturn Integrated Logistics Inc. | Canada, Toronto | 100.00 | eur | 166 | 405 |
| scm Supply Chain Management Inc. | Canada, Toronto | 100.00 | eur | 8,534 | 3,952 |
| Sky Courier, Inc. | usa, Sterling | 100.00 | eur | 15,325 | 5,571 |
| South Bay Terminals llc | usa, Westerville | 100.00 | eur | –7,234 | 175 |
| Standard Forwarding llc | usa, East Moline | 100.00 | eur | 6,276 | 720 |
| Summit Logistics Inc. | Canada, Toronto | 100.00 | eur | 312 | 1,614 |
| Tag São Paulo Serviço de Consultória Ltda. | Brazil, São Paulo | 100.00 | eur | –186 | –154 |
| Tag Worldwide (usa) Inc. | usa, New York | 100.00 | eur | 4,428 | 1,002 |
| Tag Worldwide Canada Inc. 5 | Canada, Richmond Hill | 100.00 | eur | 0 | 0 |
| Tafi nor s. a. | Uruguay, Montevideo | 100.00 | eur | 7 | 0 |
| tedi Translogic Express Dedicated Inc. | Canada, Mississauga | 100.00 | eur | 374 | 356 |
| Tibbett & Britten Group Canada Inc. | Canada, Toronto | 100.00 | eur | 1,898 | 58,446 |
| Tibbett & Britten Group North America, llc | usa, Westerville | 100.00 | eur | –11,900 | –219 |
| Tracker Logistics Inc. | Canada, Toronto | 100.00 | eur | 474 | 353 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Transcare Supply Chain Management Inc. | Canada, Toronto | 100.00 | eur | 112 | 59 |
| Unidock's Assessoria e Logistica de Materiais Ltda. | Brazil, Barueri | 100.00 | eur | 5,207 | –3,318 |
| Vensecar Internacional, c. a. | Venezuela, Maiquetía | 100.00 | eur | 20,082 | 1,020 |
| Venture Logistics s. a. de c. v. | Mexico, Tepotzotlán | 100.00 | eur | 3,875 | 875 |
| Western Distribution Centers Alberta Inc. | Canada, Toronto | 100.00 | eur | 1 | 180 |
| Williams Lea (Brazil) Assessória Em Soluções Empresariais Ltda. Brazil, Rio de Janeiro | 100.00 | eur | 106 | –337 | |
| Williams Lea (Canada), Inc. | Canada, Montréal | 100.00 | eur | 848 | 155 |
| Williams Lea Argentina s. a. | Argentina, Buenos Aires | 100.00 | eur | –327 | – 62 |
| Williams Lea Holdings, Inc. | usa, Chicago | 100.00 | eur | 52,908 | 0 |
| Williams Lea Inc. | usa, Chicago | 100.00 | eur | 106,096 | 18,177 |
| Williams Lea México, s. de r. l. de c. v. | Mexico, Mexico City | 100.00 | eur | –301 | –11 |
| Wilmington Air Park, llc | usa, Plantation | 100.00 | eur | –298,471 | – 4,150 |
| Zenith Logistics Inc. | Canada, Toronto | 100.00 | eur | 768 | 359 |
| Asia Pacifi c | |||||
| Air Express International (Malaysia) Sdn. Bhd. 7a | Malaysia, Puchong | 49.00 | eur | 2,455 | 102 |
| Asia Overnight (Thailand) Ltd. | Thailand, Bangkok | 100.00 | eur | 806 | 109 |
| Asia-Pacifi c Information Services Sdn. Bhd. | Malaysia, Puchong | 100.00 | eur | 22,287 | 1,715 |
| Blue Dart Aviation Ltd. 13 | India, Mumbai | 49.00 | eur | 4,700 | 316 |
| Blue Dart Express Limited | India, Mumbai | 81.03 | eur | 104,611 | 18,126 |
| Danzas (China) Ltd. | China, Hong Kong | 100.00 | eur | – 5,325 | 2,371 |
| Danzas aei (hk) Limited | China, Hong Kong | 100.00 | eur | 37 | –14 |
| Danzas aei Logistics (Shanghai) Co. Ltd. | China, Shanghai | 100.00 | eur | 2,222 | –126 |
| Danzas Intercontinental, Inc. (Philippines) 7a, 8 | Philippines, Manila | 40.00 | eur | – 82 | 0 |
| Danzas pty. Limited 8 | Australia, Melbourne | 100.00 | eur | 2,909 | 0 |
| danzasmal Domestic Logistics Services Sdn. Bhd. 7a | Malaysia, Kuala Lumpur | 49.00 | eur | 1,004 | 652 |
| Deutsche Post Global Mail (Australia) Pty Ltd. | Australia, Mascot | 100.00 | eur | –3,612 | 2,862 |
| dhl (Chengdu) Service Ltd. | China, Chengdu | 100.00 | eur | 395 | –34 |
| dhl Air Freight Forwarder Sdn. Bhd. 7a | Malaysia, Kuala Lumpur | 49.00 | eur | 2,213 | – 80 |
| dhl Asia Pacifi c Shared Services Sdn. Bhd. | Malaysia, Kuala Lumpur | 100.00 | eur | –2,622 | 278 |
| dhl Aviation (Hong Kong) Ltd. | China, Hong Kong | 99.36 | eur | 8,197 | 416 |
| dhl Aviation (Philippines), Inc. 8 | Philippines, Makati City | 100.00 | eur | 0 | 0 |
| dhl Aviation Services (Shanghai) Co., Ltd. | China, Shanghai | 99.36 | eur | 19,282 | – 4,341 |
| dhl Danzas Air & Ocean (Cambodia) Ltd. 5 | Cambodia, Phnom Penh | 100.00 | eur | 27 | 0 |
| Exel Distribution (Thailand) Ltd. | Thailand, Nonthaburi | 100.00 | eur | 21,733 | 1,425 |
| dhl Exel Logistics (Malaysia) Sdh. Bhd. 7a | Malaysia, Petaling Jaya | 49.00 | eur | 2,777 | 194 |
| dhl Exel Supply Chain Management Phils., Inc. | Philippines, Manila | 100.00 | eur | 1,656 | 144 |
| dhl Exel Supply Chain Phils., Inc. | Philippines, Manila | 100.00 | eur | 466 | – 914 |
| dhl Express (Australia) Pty Ltd. | Australia, Sydney | 100.00 | eur | 15,847 | 3,509 |
| dhl Express (Brunei) Sdn. Bhd. | Brunei Darussalam, Bandar Seri Begawan | 90.00 | eur | 521 | 4 |
| dhl Express (Cambodia) Ltd. | Cambodia, Phnom Penh | 100.00 | eur | 417 | 147 |
| dhl Express (Fiji) Ltd. | Fiji, Suva | 100.00 | eur | 703 | 120 |
| dhl Express (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | 14,993 | 4,191 |
| dhl Express (India) Pvt. Ltd. | India, Mumbai | 100.00 | eur | 28,308 | 4,574 |
| dhl Express (Macau) Ltd. | Macau, Macau | 100.00 | eur | 330 | 47 |
| dhl Express (Malaysia) Sdn. Bhd. | Malaysia, Kuala Lumpur | 70.00 | eur | 8,849 | 3,204 |
| dhl Express (New Zealand) Limited | New Zealand, Auckland | 100.00 | eur | 5,398 | 716 |
| dhl Express (Papua New Guinea) Ltd | Papua New Guinea, Port Moresby | 100.00 | eur | 865 | 229 |
| dhl Express (Philippines) Corp. | Philippines, Makati City | 100.00 | eur | 5,242 | – 449 |
| dhl Express (Singapore) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 125,988 | 4,334 |
| dhl Express (Taiwan) Corp. | Taiwan, Taipeh | 100.00 | eur | 13,053 | 5,461 |
| dhl Express (Thailand) Limited 7a | Thailand, Bangkok | 49.00 | eur | 5,115 | – 48 |
| dhl Express International (Thailand) Ltd. | Thailand, Bangkok | 100.00 | eur | 6,638 | 1,104 |
| dhl Express Lda | East Timor, Dili | 100.00 | eur | 393 | 5 |
| dhl Express Nepal Pvt. Ltd. | Nepal, Kathmandu | 100.00 | eur | 797 | 236 |
| dhl Global Forwarding (Australia) Pty Ltd. | Australia, Tullamarine | 100.00 | eur | 69,945 | 16,950 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Global Forwarding (Bangladesh) Limited | Bangladesh, Dhaka | 100.00 | eur | 316 | 67 |
| dhl Global Forwarding (China) Co., Ltd. | China, Shanghai | 100.00 | eur | 112,836 | 23,715 |
| dhl Global Forwarding (Fiji) Limited 5 | Fiji, Lautoka | 100.00 | eur | 353 | 0 |
| dhl Global Forwarding (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | –73,365 | 3,085 |
| dhl Global Forwarding (Korea) Ltd. | South Korea, Seoul | 100.00 | eur | 16,876 | 8,827 |
| dhl Global Forwarding (Malaysia) Sdn. Bhd. | Malaysia, Kuala Lumpur | 100.00 | eur | 13,930 | 5,175 |
| dhl Global Forwarding (New Zealand) Limited | New Zealand, Auckland | 100.00 | eur | 14,336 | 1,852 |
| dhl Global Forwarding (Philippines) Inc. | Philippines, Manila | 100.00 | eur | 1,177 | –274 |
| dhl Global Forwarding (png) Limited 5 | Papua New Guinea, Port Moresby | 74.00 | eur | –123 | 0 |
| dhl Global Forwarding (Singapore) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 96,044 | 16,307 |
| dhl Global Forwarding (Singapore) Pte. Ltd., Taiwan Branch | Taiwan, Taipeh | 100.00 | eur | 6,025 | 5,557 |
| dhl Global Forwarding (Thailand) Limited | Thailand, Bangkok | 100.00 | eur | 28,732 | 2,227 |
| dhl Global Forwarding (Vietnam) Corporation 7a | Vietnam, Ho Chi Minh City | 49.00 | eur | 3,958 | 512 |
| dhl Global Forwarding Caledonie | New Caledonia, Noumea | 100.00 | eur | 1,931 | 277 |
| dhl Global Forwarding Japan k. k. | Japan, Tokyo | 100.00 | eur | 21,876 | 5,794 |
| dhl Global Forwarding Lanka (Private) Limited | Sri Lanka, Colombo | 70.00 | eur | – 404 | –212 |
| dhl Global Forwarding Management (Asia Pacifi c) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 224,665 | 32,571 |
| dhl Global Forwarding Pakistan (Private) Limited | Pakistan, Karachi | 100.00 | eur | 1,298 | 720 |
| dhl Global Forwarding Polynesie s. a. r. l. | French Polynesia, Faaa | 100.00 | eur | 4,211 | 323 |
| dhl Global Mail (Japan) k. k. | Japan, Tokyo | 100.00 | eur | 375 | 66 |
| dhl Global Mail (Singapore) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 1,269 | 1,331 |
| dhl Holdings (New Zealand) Limited | New Zealand, Auckland | 100.00 | eur | 12,972 | 5,412 |
| dhl Incheon Hub Limited (Korea) | South Korea, Incheon | 100.00 | eur | 7,151 | 763 |
| dhl International Guinea Ecuatorial srl | Republic of Equatorial Guinea, Malabo | 100.00 | eur | –282 | –285 |
| dhl International Kazakhstan, too | Kazakhstan, Almaty | 100.00 | eur | 2,135 | 1,534 |
| dhl isc (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | 8,120 | 1,685 |
| dhl Japan Inc. | Japan, Tokyo | 100.00 | eur | 68,811 | 3,919 |
| dhl Keells (Private) Limited 7b | Sri Lanka, Colombo | 50.00 | eur | 3,543 | 410 |
| dhl Korea Limited | South Korea, Seoul | 95.00 | eur | 25,880 | 884 |
| dhl Lao Limited | Laos, Vientiane | 100.00 | eur | 648 | 282 |
| dhl Lemuir Logistics Private Limited | India, Mumbai | 76.00 | eur | 61,824 | 11,872 |
| dhl Logistics (Beijing) Co., Ltd. | China, Beijing | 100.00 | eur | –16,792 | 905 |
| dhl Logistics (Cambodia) Ltd. | Cambodia, Phnom Penh | 100.00 | eur | 2,185 | 455 |
| dhl Logistics (China) Co., Ltd. | China, Beijing | 100.00 | eur | 66,499 | 25,946 |
| dhl Logistics (Kazakhstan) too | Kazakhstan, Aksai | 100.00 | eur | 2,131 | 122 |
| dhl Logistics (Shenzhen) Co., Ltd. | China, Shenzhen | 100.00 | eur | 4,700 | 1,860 |
| dhl Pakistan (Private) Limited | Pakistan, Karachi | 100.00 | eur | 5,085 | 1,282 |
| dhl Project & Chartering (China) Limited | China, Hong Kong | 100.00 | eur | –1,801 | –2,847 |
| dhl Properties (Malaysia) Sdn. Bhd. | Malaysia, Shah Alam | 69.98 | eur | 10,905 | 4,893 |
| dhl scm k. k. | Japan, Saitama | 100.00 | eur | 48 | 374 |
| dhl Sinotrans Bonded Warehouse (Beijing) Co., Ltd. | China, Beijing | 100.00 | eur | 2,254 | 664 |
| dhl Sinotrans International Air Courier Ltd. 7a | China, Beijing | 50.00 | eur | 190,110 | 82,302 |
| dhl Supply Chain (Australia) Pty Limited | Australia, Mascot | 100.00 | eur | 28,612 | 10,808 |
| dhl Supply Chain (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | 38,367 | –232 |
| dhl Supply Chain (Korea) Ltd. | South Korea, Seoul | 100.00 | eur | 1,996 | 460 |
| dhl Supply Chain (Malaysia) Sdn. Bhd. | Malaysia, Petaling Jaya | 100.00 | eur | 4,970 | 17 |
| dhl Supply Chain (New Zealand) Limited | New Zealand, Auckland | 100.00 | eur | 29,408 | 3,313 |
| dhl Supply Chain (Taiwan) Co. Ltd. | Taiwan, Taipeh | 100.00 | eur | 26 | –263 |
| Exel Logistics (Far East) Ltd. | Thailand, Bangkok | 100.00 | eur | 5,453 | 22 |
| dhl Supply Chain (Vietnam) Limited | Vietnam, Ho Chi Minh City | 100.00 | eur | –1,937 | –1,714 |
| dhl Supply Chain k. k. | Japan, Tokyo | 100.00 | eur | –24,024 | 1,042 |
| dhl Supply Chain Service k. k. | Japan, Tokyo | 100.00 | eur | 1,078 | – 8 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Supply Chain Singapore Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 29,009 | 4,263 |
| dhl Worldwide Express (Bangladesh) Private Limited | Bangladesh, Dhaka | 90.00 | eur | 2,129 | 1,008 |
| dhl-vnpt Express Ltd. | Vietnam, Ho Chi Minh City | 51.00 | eur | 2,680 | 599 |
| Dongguan dhl Supply Chain Co., Ltd. | China, Dongguan | 100.00 | eur | 760 | 236 |
| Exel (Australia) Pty Ltd. | Australia, Victoria | 100.00 | eur | 4,402 | 0 |
| Exel Consolidation Services Limited | China, Hong Kong | 100.00 | eur | 2,307 | – 8 |
| Exel Japan (Finance) Ltd. | Japan, Tokyo | 100.00 | eur | 13,735 | 177 |
| Exel Logistics (China) Co. Ltd | China, Shanghai | 100.00 | eur | –12,288 | – 5,121 |
| Exel Logistics Services Lanka (Private) Ltd. | Sri Lanka, Colombo | 99.00 | eur | –110 | –333 |
| Exel Thailand Ltd. 8 | Thailand, Bangkok | 100.00 | eur | 854 | 0 |
| Gori Australia Pty Ltd. | Australia, Brighton-Le-Sands | 100.00 | eur | 5,428 | 3,184 |
| mdf Australia Pty Limited t / a creatis | Australia, Sydney | 100.00 | eur | 1,305 | 0 |
| msas Global Logistics (Far East) Limited | China, Hong Kong | 100.00 | eur | 1,147 | 7,244 |
| pt danzas sarana perkasa | Indonesia, Jakarta | 100.00 | eur | 246 | 218 |
| pt Birotika Semesta 13 | Indonesia, Jakarta | 0.00 | eur | 2,864 | 921 |
| pt Cargotama Multi Servisindo 5 | Indonesia, Jakarta | 100.00 | eur | 0 | –28 |
| pt dhl Exel Supply Chain Indonesia | Indonesia, Jakarta | 90.34 | eur | 1,526 | 196 |
| pt dhl Global Forwarding Indonesia | Indonesia, Jakarta | 100.00 | eur | 8,533 | 2,972 |
| Shanghai Danzas Freight Agency Co. Ltd. | China, Shanghai | 100.00 | eur | 832 | – 94 |
| Singha Sarn Co. Ltd | Thailand, Bangkok | 100.00 | eur | – 60 | –10 |
| StarBroker (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | 42 | –2 |
| Tag India Private Limited | India, New Delhi | 100.00 | eur | – 42 | – 43 |
| Tag Worldwide (Shanghai) Co Ltd. | China, Shanghai | 100.00 | eur | –379 | –358 |
| Tag Worldwide (Singapore) Pte. Ltd. | Singapore, Singapore | 100.00 | eur | – 439 | 82 |
| Tag Worldwide Australia pty Ltd. | Australia, Parramatta | 100.00 | eur | 320 | 127 |
| Tibbett & Britten Asia Pte. Ltd. | Singapore, Singapore | 100.00 | eur | 13 | –173 |
| Trade Clippers Cargo Limited | Bangladesh, Dhaka | 85.00 | eur | 871 | 641 |
| Williams Lea (Beijing) Limited | China, Beijing | 100.00 | eur | 1,501 | 748 |
| Williams Lea (Hong Kong) Limited | China, Hong Kong | 100.00 | eur | 2,709 | 261 |
| Williams Lea Asia Limited | China, Hong Kong | 100.00 | eur | 9 | 237 |
| Williams Lea India Private Limited | India, New Delhi | 100.00 | eur | 3,771 | 1,634 |
| Williams Lea Japan Limited | Japan, Tokyo | 100.00 | eur | 3,729 | 605 |
| Williams Lea Private Limited | Singapore, Singapore | 100.00 | eur | –186 | 198 |
| Williams Lea Pty Limited | Australia, Sydney | 100.00 | eur | –1,939 | 226 |
| Other regions | |||||
| Air & Ocean General Transport Forwarding and Customs Clearance llc |
Iraq, Baghdad | 100.00 | eur | 319 | 277 |
| Buddingtrade 33 (Proprietary) Limited 5 | South Africa, Benoni | 100.00 | eur | 2,352 | 0 |
| Danzas Abu Dhabi llc 7b | United Arab Emirates (uae), Abu Dhabi | 49.00 | eur | 5,166 | 605 |
| Danzas Bahrain wll 7b | Bahrain, Manama | 40.00 | eur | 1,228 | 790 |
| dhl (Ghana) Limited | Ghana, Accra | 100.00 | eur | 1,622 | – 445 |
| dhl (Israel) Ltd. | Israel, Tel Aviv | 100.00 | eur | 7,452 | 864 |
| dhl (Mauritius) Ltd. | Mauritius, Port Louis | 100.00 | eur | 919 | 342 |
| dhl (Namibia) (Pty) Ltd. | Namibia, Windhoek | 100.00 | eur | 668 | 214 |
| dhl (Tanzania) Ltd. | Tanzania, Dar es Salaam | 100.00 | eur | 684 | – 408 |
| dhl Aviation (Maroc) sa | Morocco, Casablanca | 100.00 | eur | 1,555 | –1 |
| dhl Aviation (Nigeria) Ltd. | Nigeria, Lagos | 100.00 | eur | 192 | 33 |
| dhl Aviation (Pty) Limited | South Africa, Johannesburg | 100.00 | eur | 4,856 | 51 |
| dhl Aviation eemea b. s. c. (c) | Bahrain, Manama | 100.00 | eur | 769 | 0 |
| dhl Aviation Kenya Ltd. | Kenya, Nairobi | 100.00 | eur | 16 | 0 |
| dhl Egypt wll | Egypt, Cairo | 100.00 | eur | 658 | 233 |
| dhl Exel Supply Chain Kenya Limited | Kenya, Nairobi | 100.00 | eur | 6,429 | 1,570 |
| dhl Express Maroc s. a. | Morocco, Casablanca | 100.00 | eur | – 687 | –1,083 |
| dhl Global Forwarding & Co. llc 7b | Oman, Muscat | 40.00 | eur | 4,819 | 1,444 |
| dhl Global Forwarding (Angola) – Comércio e Transitários, | |||||
| Limitada | Angola, Luanda | 99.99 | eur | –1,271 | 2,637 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Global Forwarding (Cameroon) plc | Cameroon, Douala | 62.00 | eur | – 546 | –130 |
| dhl Global Forwarding (Kenya) Limited | Kenya, Nairobi | 100.00 | eur | –2,008 | –2,932 |
| dhl Global Forwarding (Kuwait ) Company wll 7b | Kuwait, Safat | 49.00 | eur | 5,844 | 2,274 |
| dhl Global Forwarding (Senegal) s. a. | Senegal, Dakar | 100.00 | eur | –1,169 | – 847 |
| dhl Global Forwarding (Uganda) Limited | Uganda, Kampala | 100.00 | eur | –147 | – 473 |
| dhl Global Forwarding (Congo) sa | Republic of Congo, Pointe-Noire | 100.00 | eur | –27 | –173 |
| dhl global forwarding cote d'ivoire sa | Ivory Coast, Abidjan | 100.00 | eur | –121 | –15 |
| dhl Global Forwarding (Gabon) sa | Gabon, Libreville | 99.00 | eur | 272 | – 423 |
| dhl Global Forwarding Lebanon s. a. l. 7b | Lebanon, Beirut | 50.00 | eur | 1,863 | 781 |
| dhl Global Forwarding Nigeria Limited | Nigeria, Lagos | 100.00 | eur | 1,055 | 318 |
| dhl Global Forwarding Qatar llc 7b | Qatar, Doha | 49.00 | eur | 1,387 | 763 |
| dhl Global Forwarding Egypt s. a. e. | Egypt, Cairo | 100.00 | eur | 4,038 | –2,943 |
| dhl Global Forwarding sa (Pty) Limited | South Africa, Boksburg | 74.99 | eur | 12,590 | 1,028 |
| dhl Global Forwarding Tasimacilik a. s. | Turkey, Istanbul | 100.00 | eur | 8,734 | 1,342 |
| dhl International (Algeria) sarl | Algeria, Algiers | 100.00 | eur | 3,338 | 874 |
| dhl International (Angola) – Transportadores Rápidos | |||||
| Limitada | Angola, Luanda | 100.00 | eur | 2,603 | – 871 |
| dhl International (Bahrain) wll 7b | Bahrain, Manama | 49.00 | eur | 51 | 0 |
| dhl International (Congo) sprl | Democratic Republic of Congo, Kinshasa | 100.00 | eur | 1,694 | – 531 |
| dhl International (Gambia) Ltd. | Gambia, Kanifi ng | 100.00 | eur | 27 | – 85 |
| dhl International (Liberia) Ltd. | Liberia, Monrovia | 100.00 | eur | –223 | 169 |
| dhl International (Pty) Ltd. | South Africa, Isando | 74.99 | eur | 16,359 | 2,951 |
| dhl International (Pvt) Ltd. | Zimbabwe, Harare | 100.00 | eur | 1,360 | 68 |
| dhl International (sl) Ltd. | Sierra Leone, Freetown | 100.00 | eur | 709 | 85 |
| dhl International (Uganda) Ltd. | Uganda, Kampala | 100.00 | eur | 459 | 23 |
| dhl International b. s. c. (c) | Bahrain, Manama | 100.00 | eur | 345 | 211 |
| dhl International Benin sarl | Benin, Cotonou | 100.00 | eur | 886 | 264 |
| dhl International Botswana (Pty) Ltd. | Botswana, Gaborone | 100.00 | eur | 129 | 191 |
| dhl International Burkina Faso sarl | Burkina Faso, Ouagadougou | 100.00 | eur | 605 | – 84 |
| dhl International Cameroon sarl | Cameroon, Douala | 100.00 | eur | 1,531 | –124 |
| dhl International Centrafrique sarl | Central African Republic, Bangui | 100.00 | eur | 287 | –24 |
| dhl International Chad sarl | Chad, Ndjamena | 100.00 | eur | – 69 | –166 |
| dhl International Congo sarl | Republic of Congo, Brazzaville | 100.00 | eur | 1,308 | –3,859 |
| dhl International Cote D'Ivoire sarl | Ivory Coast, Abidjan | 100.00 | eur | 1,075 | –1,230 |
| dhl International Gabon sarl | Gabon, Libreville | 100.00 | eur | – 597 | 142 |
| dhl International Guinee sarl | Guinea, Conakry | 100.00 | eur | 301 | – 52 |
| dhl International Iran pjsc | Iran, Tehran | 100.00 | eur | 4,431 | 190 |
| dhl International Madagascar sa | Madagascar, Antananarivo | 100.00 | eur | 321 | – 527 |
| dhl International Malawi Ltd. | Malawi, Blantyre | 100.00 | eur | 436 | 153 |
| dhl International Mali sarl | Mali, Bamako | 100.00 | eur | 349 | –300 |
| dhl International Mauritanie sarl | Mauretania, Nouakchott | 100.00 | eur | 245 | 206 |
| dhl International Niger sarl | Niger, Niamey | 100.00 | eur | 629 | 220 |
| dhl International Nigeria Ltd. | Nigeria, Lagos | 100.00 | eur | 4,251 | –264 |
| dhl International Reunion sarl | Réunion, Sainte Marie | 100.00 | eur | 173 | –128 |
| dhl International Togo sarl | Togo, Lomé | 100.00 | eur | 185 | –149 |
| dhl International Transportation Co wll 13 | Kuwait, Safat | 0.00 | eur | 162 | 0 |
| dhl International Zambia Limited | Zambia, Lusaka | 100.00 | eur | – 971 | 59 |
| dhl Lesotho (Proprietary) Ltd. | Lesotho, Maseru | 100.00 | eur | 192 | –10 |
| dhl Logistics Ghana Ltd. | Ghana, Tema | 100.00 | eur | 1,412 | 357 |
| dhl Logistics Kenya Limited | Kenya, Nairobi | 100.00 | eur | 183 | 208 |
| dhl Logistics Morocco s. a. | Morocco, Casablanca | 100.00 | eur | –109 | –1,772 |
| dhl Logistics Tanzania Limited | Tanzania, Dar es Salaam | 100.00 | eur | – 94 | 33 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| dhl Lojistik Hizmetleri a. s. | Turkey, Istanbul | 100.00 | eur | 11,656 | 1,202 |
| dhl Mocambique Lda. | Mozambique, Maputo | 100.00 | eur | 1,740 | 812 |
| dhl Operations bv Jordan Services with Limited Liability | Jordan, Amman | 100.00 | eur | 518 | 138 |
| dhl Qatar Limited 7b | Qatar, Doha | 49.00 | eur | – 870 | –181 |
| dhl Regional Services (Indian Ocean) Ltd. | Mauritius, Port Louis | 100.00 | eur | 1 | 0 |
| dhl Regional Services Limited | Nigeria, Lagos | 100.00 | eur | 111 | 0 |
| dhl International Senegal sarl | Senegal, Dakar | 100.00 | eur | 2,418 | 532 |
| dhl Supply Chain (South Africa) (Pty) Ltd. | South Africa, Germiston | 100.00 | eur | –734 | –1,927 |
| dhl Swaziland (Proprietary) Ltd. | Swaziland, Mbabane | 100.00 | eur | 234 | –11 |
| dhl Worldwide Express & Company llc | Oman, Ruwi | 70.00 | eur | 229 | 223 |
| dhl Worldwide Express (Abu Dhabi) llc 7b | United Arab Emirates (uae), Abu Dhabi | 49.00 | eur | 63 | 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 | 105 | 0 |
| dhl Worldwide Express Cargo llc 7b | United Arab Emirates (uae), Dubai | 49.00 | eur | 63 | 0 |
| dhl Worldwide Express Ethiopia Private Limited Company | Ethiopia, Addis Ababa | 73.00 | eur | 426 | 516 |
| dhl Worldwide Express Kenya Limited | Kenya, Nairobi | 51.00 | eur | 3,068 | –2 |
| dhl Worldwide Express Tasimacilik ve Ticaret a. s. | Turkey, Istanbul | 100.00 | eur | 22,930 | 3,760 |
| Document Handling (East Africa) Ltd. | Kenya, Nairobi | 51.00 | eur | 55 | 520 |
| Durra al Hamra al Lamia'a co. Iraq | Iraq, Baghdad | 100.00 | eur | 33 | 0 |
| Exel Contract Logistics Nigeria Ltd. | Nigeria, Ikeja | 100.00 | eur | – 632 | –1,997 |
| Exel Middle East (Fze) | United Arab Emirates (uae), Dubai | 100.00 | eur | 289 | 0 |
| Exel Supply Chain Services (South Africa) (Pty) Ltd. | South Africa, Johannesburg | 100.00 | eur | 15,764 | – 55 |
| f. c. (Flying Cargo) International Transportation Ltd. | Israel, Lod | 100.00 | eur | 28,248 | 7,653 |
| Giorgio Gori International Freight Forwards (Pty) Ltd. | South Africa, Ferndale | 100.00 | eur | 249 | 56 |
| Hull, Blyth (Angola) Ltd. (Angolan branch) 1 | Angola, Luanda | 100.00 | eur | 5,413 | –1,716 |
| Hull Blyth Angola Viagens e Turismo Lda. 1 | Angola, Luanda | 99.99 | eur | – | – |
| Kinesis Logistics (Pty) Ltd. 5 | South Africa, Germiston | 100.00 | eur | –319 | 0 |
| Misr Freight Sarl | Egypt, Cairo | 100.00 | eur | 310 | –35 |
| Sherkate Haml-oNaghl Sarie dhl Kish | Iran, Tehran | 100.00 | eur | 0 | 0 |
| snas Lebanon sarl | Lebanon, Beirut | 90.00 | eur | 905 | 159 |
| snas Trading and Contracting 13 | Saudi Arabia, Riyadh | 0.00 | eur | 0 | 0 |
| ssa Regional Services (Pty) Ltd. | South Africa, Johannesburg | 100.00 | eur | 690 | –278 |
| Tag mena fze | United Arab Emirates (uae), Dubai | 100.00 | eur | –71 | – 65 |
| Trans Care Fashion sarl (Morocco) 5 | Morocco, Casablanca | 100.00 | eur | – 538 | 0 |
| Ukhozi Logistics (Pty) Ltd. | South Africa, Boksburg | 100.00 | eur | 104 | 6 |
| Uniauto-Organizações Técnicas e Industriais sarl 5 | Angola, Luanda | 98.93 | eur | 16 | 0 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
14 Not included because they do not have signifi cant infl uence on the Group's net assets, fi nancial position and results of operations.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| Alistair McIntosh Trustee Company Limited 3, 5, 9 | United Kingdom, London | 100.00 | gbp | 0 | – |
| Arbuckle, Smith & Company Limited 3, 5, 9 | United Kingdom, Glasgow | 100.00 | gbp | 5,298 | 0 |
| asg Leasing Handelsbolag 3, 5, 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 | – | – |
| Carbon Limited 2, 5 | United Kingdom, London | 100.00 | gbp | 0 | – |
| Cormar Limited 3, 8 | United Kingdom, Bracknell | 100.00 | eur | 1,764 | 739 |
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| degemolto Grundstücksverwaltungsgesellschaft mbH & Co. Immobilien-Vermietungs kg 2, 9 |
Germany, Meinerzhagen | 100.00 | eur | 16 | 32 |
| Deutsche Post DHL Corporate Real Estate Management | |||||
| GmbH & Co. Objekt Weißenhorn kg 2, 9 | Germany, Bonn | 100.00 | eur | 26 | – |
| Deutsche Post gemeinnützige Gesellschaft für sichere und vertrauliche Kommunikation im Internet mbH 4 |
Germany, Bonn | 100.00 | eur | 25 | – |
| Deutsche Post Grundstücks- Vermietungsgesellschaft beta mbH 6, 9 |
Germany, Bonn | 100.00 | eur | 17 | 0 |
| dhl Employee Benefi t Fund asbl/vzw 2, 9 | Belgium, Diegem | 100.00 | eur | –240 | 0 |
| dhl Energy Performance & Management Limited 3, 8 | United Kingdom, Bracknell | 100.00 | eur | – 6,008 | –1,737 |
| dhl Pensions Investment Fund Limited 4, 5 | United Kingdom, Bedford | 100.00 | gbp | – | – |
| dhl Trustees Limited 4, 5 | United Kingdom, Bedford | 74.00 | gbp | 0 | – |
| dhl uk Pension Trustees Limited 3, 5, 9 | United Kingdom, Hounslow | 100.00 | gbp | 0 | – |
| Elan International (Ireland) Ltd. 4, 5 | Ireland, Dublin | 100.00 | eur | – | – |
| Eric Studio Limited 2, 5 | United Kingdom, London | 100.00 | gbp | 1,792 | – |
| Excel Logistics Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Exel (Africa) Limited 3, 8 | United Kingdom, Bracknell | 100.00 | eur | –1,861 | –255 |
| Exel (Northern Ireland) Limited 3, 5, 9 | United Kingdom, Mallusk | 100.00 | gbp | 511 | – |
| Exel Express Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Exel Holdings (Russia) Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | –3 | – |
| Exel International Holdings Limited 2, 8 | United Kingdom, Bedford | 100.00 | eur | 258,564 | 1,600 |
| Exel Logistics Limited 9, 12 | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Exel Nominee No 2 Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Exel Overseas Finance 2, 8 | United Kingdom, Bedford | 100.00 | eur | 343,765 | 15,666 |
| Exel Sand and Ballast Company Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 189 | – |
| Exel Scotland Limited 3, 8 | United Kingdom, Glasgow | 94.17 | eur | 2,497 | 28 |
| Exel Secretarial Services Limited 4, 5 | United Kingdom, Bracknell | 100.00 | gbp | – | – |
| Exel Share Scheme Trustees Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Exel Taskforce Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | – 48 | – |
| Fashionfl ow Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| forum gelb GmbH 6, 9 | Germany, Bonn | 100.00 | eur | 25 | 0 |
| Higgs Air España s. a. 8 | Spain, Barcelona | 100.00 | eur | – | – |
| 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 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 15 | – |
| Lightbox Creative Services Limited 5 | United Kingdom, London | 100.00 | eur | – 56 | 0 |
| McGregor Gow & Holland (1996) Limited 3, 8 Mercury Airfreight Holdings Limited 3, 5, 9 |
United Kingdom, Bracknell United Kingdom, Bracknell |
100.00 100.00 |
eur gbp |
272 500 |
0 – |
| Mercury Airspeed International b. v. 3, 8 | Netherlands, The Hague | 100.00 | eur | – 834 | –12 |
| Mexicoblade Limited 3, 5, 9 | United Kingdom, London | 100.00 | gbp | –2 | – |
| msas Global Logistics Limited 2, 8 | United Kingdom, Bracknell | 100.00 | eur | 63,790 | 4,290 |
| msas Limited 3, 8 | United Kingdom, Bracknell | 100.00 | eur | –3,577 | 0 |
| nfc Investments Limited 3, 5, 9 | |||||
| United Kingdom, Bracknell | 100.00 | gbp | 1 | 0 | |
| Ocean (bfl) Limited 8, 12 | United Kingdom, Bracknell | 100.00 | eur | 1 | 0 |
| Ocean Group Share Scheme Trustee Limited 3, 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 |
| ooo asg Road Transport Russia 8 | Russia, Moscow | 100.00 | rub | 418 | 0 |
| Outrack Credit Ireland Ltd. 4, 5 | Ireland, Dublin | 100.00 | eur | – | – |
| Packaging Datastore Limited 3, 8 | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Packaging Management Group Limited3, 8 | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Pismo Limited 2, 5 | United Kingdom, London | 100.00 | gbp | 13 | – |
| Power Europe Development No. 2 Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Print to Post Limited 3, 5, 9 | United Kingdom, London | 100.00 | gbp | 11 | – |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Realcause Limited 4, 5 | United Kingdom, Bracknell | 100.00 | gbp | – | – |
| Siegfried Vögele Institut (svi) – Internationale Gesellschaft für Dialogmarketing mbH 6, 9 |
Germany, Königstein | 100.00 | eur | 50 | 0 |
| sw Post Beheer b. v. 4 | Netherlands, Apeldoorn | 100.00 | eur | – | – |
| Tag Studios Limited 2, 5 | United Kingdom, London | 100.00 | gbp | –166 | – |
| Tag At Engine Limited 2, 5 | United Kingdom, London | 100.00 | gbp | 0 | – |
| Tag At Red Brick Road Limited 2, 5 | United Kingdom, London | 100.00 | gbp | 0 | – |
| Tag Design and Interactive Limited 2, 5 | United Kingdom, London | 100.00 | gbp | 0 | – |
| Tag Paris gie 4, 8 | France, Paris | 51.00 | eur | – | – |
| Tag Worldwide (uk) Limited 2, 5 | United Kingdom, London | 100.00 | gbp | 1 | – |
| Tankfreight Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 2 | – |
| The Stationery Offi ce Pension Trustees Limited 3, 5, 9 | United Kingdom, London | 100.00 | gbp | 0 | – |
| The Stationery Offi ce Trustees Limited 3, 5, 9 | United Kingdom, London | 100.00 | gbp | 0 | – |
| Tibbett & Britten (n. i.) Limited 3, 5, 9 | United Kingdom, Ballyclare | 100.00 | gbp | – 5 | – |
| Tibbett & Britten (usa) Limited 2, 8 | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Tibbett & Britten Applied Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 1 | – 835 |
| Tibbett & Britten Automotive Assets Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Tibbett & Britten Consumer Group Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Tibbett & Britten Consumer Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 10 | 0 |
| Tibbett & Britten Dairy Logistics Sp. z o. o. 5, 9 | Poland, Warsaw | 100.00 | pln | 50 | 0 |
| Tibbett & Britten Group Iberia Limited 8 | United Kingdom, Bracknell | 100.00 | gbp | – | – |
| Tibbett & Britten International Holdings Limited 3, 8 | United Kingdom, Bracknell | 100.00 | eur | 0 | 0 |
| Tibbett & Britten Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | – |
| Tibbett & Britten Pension Trust Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Tibbett & Britten Quest Trustees Limited 3, 5, 9 | United Kingdom, Bracknell | 100.00 | gbp | 0 | 0 |
| Track One Logistics Limited 3, 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 3, 5, 9 | United Kingdom, Bedford | 100.00 | gbp | 100 | – |
| unitrans Deutschland Gesellschaft für Terminverkehre mbH 2, 9 Germany, Düsseldorf | 65.38 | eur | 308 | –71 | |
| Van Gend & Loos – Euro Express nv 3, 9 | Belgium, Ternat | 100.00 | eur | –206 | 1 |
| Williams Lea (us Acquisitions) Limited 9, 12 | United Kingdom, London | 100.00 | gbp | 1 | 0 |
| Williams Lea Group Quest Trustees Limited3, 5, 9 | United Kingdom, London | 100.00 | gbp | 0 | – |
| Williams Lea International Limited 3, 5, 9 | United Kingdom, London | 100.00 | gbp | 0 | – |
| Americas | |||||
| Axis Logistics Inc. 3, 5, 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 | mxn | – 5,186 | 6,704 |
| dhl Express (Belize) Limited 2, 9 | Belize, Belize City | 100.00 | usd | 20 | 0 |
| dhl Global Forwarding (Brazil) Logistics Ltda. 5 | Brazil, São Paulo | 100.00 | brl | 50 | – |
| 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 | mxn | –251 | 39 |
| dhl St. Lucia Ltd. 4, 5 | St.Lucia, Castries | 100.00 | xcd | – | – |
| Hyperion Properties Inc. 4, 5 | usa, Westerville | 100.00 | usd | – | – |
| Inversiones 3340, c. a. 4 | Venezuela, Caracas | 49.00 | vef | – | – |
| Power Packaging (Geneva), llc 4, 5 | 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. 3, 5, 9 | Argentina, Buenos Aires | 99.97 | eur | 34 | 0 |
| Skyhawk Transport Ltd. 3, 5, 9 | Canada, Mississauga | 100.00 | cad | 35,000 | 0 |
| usc Distribution Services llc 4 | usa, Westerville | 100.00 | usd | – | – |
| Asia Pacifi c | |||||
| Concorde Air Logistics Ltd. 3, 9 | India, Mumbai | 99.54 | inr | 46,490 | 2,880 |
| dhl Customs Brokerage Corp. 3, 9 | Philippines, Pasay City | 100.00 | php | 1,104 | – 63 |
| dhl Global Mail (Hong Kong) Limited 5 | China, Hong Kong | 100.00 | usd | 0 | 0 |
| Exel Logistics Delbros Philippines Inc. 5, 8 | Philippines, Manila | 60.00 | php | – | – |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name Skyline Air Logistics Ltd. 9 |
Headquarters India, Mumbai |
equity share % 99.99 |
Currency inr |
thousands 37,808 |
thousands 5,155 |
| Tibbett & Britten Kontena Nasional Sdn. Bhd. 5, 8 | Malaysia, Petaling Jaya | 60.00 | myr | – | – |
| Watthanothai Company Ltd. 5, 9 | Thailand, Bangkok | 49.00 | thb | 10,100 | – |
| Yamato Dialog & Media Co. Ltd. 3, 9 | Japan, Tokyo | 49.00 | jpy | 579,158 | 56,479 |
| Other regions | |||||
| Blue Funnel Angola Ltda. 2, 5, 9 | Angola, Luanda | 99.99 | usd | – 61 | – |
| 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 |
| dhl Air Freight Forwarder (Egypt) wll 8 | Egypt, Cairo | 99.90 | egp | – | – |
| dhl Danzas Air & Ocean (Kenya) Ltd. 8 | Kenya, Nairobi | 100.00 | kes | – | – |
| Elder Dempster Ltda. 2, 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. 4, 5 | South Africa, Elandsfontein | 100.00 | zar | – | – |
| Nile Perishable (Egypt – Europe – Trans) Ltd. 3 | Egypt, Alexandria | 97.20 | egp | – 801 | –187 |
| Synergistic Alliance Investments (Pty) Ltd. 2, 5, 9 | South Africa, Germiston | 100.00 | zar | –3,341 | – |
| Tibbett & Britten Egypt Ltd. 8 | Egypt, Cairo | 50.00 | egp | – | – |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
14 Not included because they do not have signifi cant infl uence on the Group's net assets, fi nancial position and results of operations.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Europe | |||||
| AeroLogic GmbH | Germany, Leipzig | 50.00 | eur | 27,541 | 9,048 |
| Danzas dv, llc 5 | Russia, Yuzhno-Sakhalinsk | 50.00 | eur | 303 | 0 |
| Americas | |||||
| ev Logistics | Canada, Vancouver | 50.00 | eur | 2,898 | 1,730 |
| Asia Pacifi c | |||||
| Express Couriers Limited 1 | New Zealand, Wellington | 50.00 | eur | 91,625 | 8,252 |
| Roadstar Transport Limited 1 | New Zealand, Wellington | 50.00 | eur | – | – |
| Parcel Direct Group Pty Limited 1 | Australia, Mascot | 50.00 | eur | 4,035 | 4,216 |
| Couriers Please Pty. Ltd. 1 | Australia, Pymble | 50.00 | eur | – | – |
| Express Couriers Australia (sub1) Pty Limited 1 | Australia, Mascot | 50.00 | eur | – | – |
| Hills Parcel Direct Pty. Limited 1 | Australia, Pymble | 50.00 | eur | – | – |
| Parcel Direct Australia Pty. Limited 1 | Australia, Pymble | 50.00 | eur | – | – |
| Parcel Express (sa) 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 | 44.10 | eur | 908 | 3,510 |
|---|---|---|---|---|---|
| Exel Saudia llc | Saudi Arabia, Al Khobar | 50.00 | eur | 8,819 | 2,219 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
| Associated companies (accounting treatment in the consolidated fi nancial statements using the equity method) | |||
|---|---|---|---|
| -- | -- | -- | --------------------------------------------------------------------------------------------------------------- |
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| All you need GmbH 4 | Germany, Berlin | 33.00 | eur | – | – |
| Betriebs-Center für Banken ag 11 | Germany, Frankfurt/Main | 39.50 | eur | 299,182 | 33,227 |
| Betriebs-Center für Banken Processing GmbH 11 | Germany, Frankfurt/Main | 39.50 | eur | 4,330 | 1,280 |
| bhw – Gesellschaft für Wohnungswirtschaft mbH 11 | Germany, Hameln | 39.50 | eur | 918,946 | 0 |
| bhw – Gesellschaft für Wohnungswirtschaft mbH & Co. | |||||
| Immobilienverwaltungs kg 11 | Germany, Hameln | 39.50 | eur | 82,451 | 2,324 |
| bhw Bausparkasse ag 11 | Germany, Hameln | 39.50 | eur | 983,831 | 0 |
| bhw Gesellschaft für Vorsorge mbH 11 | Germany, Hameln | 39.50 | eur | 242,370 | 0 |
| bhw Holding Aktiengesellschaft 11 | Germany, Berlin | 39.50 | eur | 912,156 | 184,653 |
| bhw Immobilien GmbH 11 | Germany, Hameln | 39.50 | eur | 2,728 | 567 |
| bhw Kreditservice GmbH 11 | Germany, Hameln | 39.50 | eur | 25 | 0 |
| Cargo Center Sweden ab 9 | Sweden, Stockholm | 50.00 | sek | 20,309 | 2,476 |
| Deutsche Postbank ag 3, 9 | Germany, Bonn | 39.50 | eur | 2,621,072 | 343,640 |
| Deutsche Postbank Finance Center Objekt GmbH 11 | Luxembourg, Munsbach | 39.50 | eur | 50 | 355 |
| Deutsche Postbank Financial Services GmbH 11 | Germany, Frankfurt/Main | 39.50 | eur | 5,000 | 0 |
| Deutsche Postbank International s. a. 11 | Luxembourg, Munsbach | 39.50 | eur | 832,435 | 91,264 |
| 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 | 16,659 | 819 |
| dsl Holding Aktiengesellschaft 11 | Germany, Bonn | 39.50 | eur | 63,527 | 395 |
| dsl Portfolio Verwaltungs GmbH 11 | Germany, Bonn | 39.50 | eur | 25 | 1 |
| pb Factoring GmbH 11 | Germany, Bonn | 39.50 | eur | 11,546 | 0 |
| pb Firmenkunden ag 11 | Germany, Bonn | 39.50 | eur | 1,100 | 0 |
| pb Spezial-Investmentaktiengesellschaft mit Teilgesellschaftsvermögen 11 |
Germany, Frankfurt/Main | 39.50 | eur | 6,513,539 | 435,522 |
| Postbank Beteiligungen GmbH 11 | Germany, Bonn | 39.50 | eur | 310 | 0 |
| Postbank Direkt GmbH 11 | Germany, Bonn | 39.50 | eur | 20,858 | 0 |
| Postbank Filial GmbH 11 | Germany, Bonn | 39.50 | eur | 25 | 0 |
| Postbank Filialvertrieb ag 11 | Germany, Bonn | 39.50 | eur | 55 | 0 |
| Postbank Finanzberatung ag 11 | Germany, Hameln | 39.50 | eur | 30,130 | –19,936 |
| 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 | 0 | 739 |
| Postbank Leasing GmbH 11 | Germany, Bonn | 39.50 | eur | 500 | 0 |
| Postbank p. o. s. Transact GmbH 11 | Germany, Eschborn | 39.50 | eur | 9,011 | 2,603 |
| Postbank Support GmbH 11 | Germany, Cologne | 39.50 | eur | 759 | 0 |
| Postbank Systems ag 11 | Germany, Bonn | 39.50 | eur | 51,591 | 0 |
| Postbank Versicherungsvermittlung GmbH 11 | Germany, Bonn | 39.50 | eur | 25 | 0 |
| Unipost Servicios Generales s. l. 1, 3, 9 | Spain, Barcelona | 37.69 | eur | 22,340 | 3,289 |
| Unipost s. a. 1, 3, 9 | Spain, Barcelona | 37.69 | eur | – | – |
| Suresa Cit., s. l. 1, 3, 9 | Spain, L'Hospitalet de Llobregat | 37.69 | eur | – | – |
| vöb-zvd Bank für Zahlungsverkehrsdienstleistungen GmbH 11 | Germany, Bonn | 29.62 | eur | 12,896 | 4,048 |
| 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 |
| Miami mei, llc 10, 11 | usa, Dover | 0.00 | eur | 6,981 | 0 |
| pb Realty Corporation 11 | usa, New York | 39.50 | eur | 1,104,031 | 56,071 |
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| pb (usa) Holdings, Inc. 11 | usa, Wilmington | 39.50 | eur | 607,653 | 0 |
| pb Capital Corporation 11 | usa, Wilmington | 39.50 | eur | 488,847 | 76,590 |
| pb Finance (Delaware), Inc. 11 | usa, Wilmington | 39.50 | eur | 176 | 0 |
| pb Hollywood i Hollywood Station llc 10, 11 | usa, Dover | 0.00 | eur | 2,086 | 348 |
| pb Hollywood ii Lofts llc 10, 11 | usa, Dover | 0.00 | eur | 14,066 | – 555 |
| pbc Carnegie llc 10, 11 | usa, Wilmington | 0.00 | eur | 0 | 0 |
| pmg Collins, llc 11 | usa, Tallahassee | 39.50 | eur | 8,583 | 901 |
| Asia Pacifi c | |||||
| Air Hong Kong Ltd. 3, 9 | China, Hong Kong | 40.00 | hkd | 350,580 | 433,237 |
| Tasman Cargo Airlines Pty. Limited 9 | Australia, Mascot | 48.98 | aud | 6,522 | 413 |
| Other regions | |||||
| Danzas aei Emirates llc 3 | United Arab Emirates (uae), Dubai | 42.50 | aed | 208,644 | 41,018 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
14 Not included because they do not have signifi cant infl uence on the Group's net assets, fi nancial position and results of operations.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| Aerologic Management GmbH 3, 8 | Germany, Frankfurt / Main | 50.00 | eur | 216 | 41 |
| malto Grundstücks-Verwaltungsgesellschaft mbH & Co. KG 3, 9, 10 Germany, Grünwald | 50.00 | eur | 140 | – | |
| Roster Worldwide Limited 4 | United Kingdom, London | 48.23 | gbp | 0 | – |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
14 Not included because they do not have signifi cant infl uence on the Group's net assets, fi nancial position and results of operations.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| Airmail Center Frankfurt GmbH 3, 9 | Germany, Frankfurt / Main | 20.00 | eur | 3,342 | 1,291 |
| Automotive Logistics (uk) Limited 8 | United Kingdom, Ipswich | 50.00 | gbp | – | – |
| Balsa Grundstücksverwaltungs s. á. r. l. & Co. Vermietungs kg 2, 9 | Germany, Hamburg | 100.00 | eur | 12 | – |
| Bike-Logistik GmbH Gesellschaft für Zweiradtransporte 3, 9 | Germany, Nuremberg | 25.00 | eur | 55 | 2 |
| Dalim Software GmbH 2, 9 | Germany, Kehl | 22.26 | eur | 967 | 302 |
| dcm GmbH & Co Vermögensaufbau Fonds 2 kg 2, 9 | Germany, Munich | 23.81 | eur | 4,260 | –22 |
| Deutsche Fonds Management GmbH & Co. dcm Rendite fonds 18 kg 2, 9, 10 |
Germany, Munich | 24.94 | eur | 51,641 | – 51 |
| Diorit Grundstücksverwaltungsgesellschaft mbH & Co. Vermietungs kg 3, 10 |
Germany, Mainz | 24.00 | eur | 0 | –13 |
| European epc Competence Center GmbH 9 | Germany, Cologne | 30.00 | eur | 292 | 53 |
| Expo-Dan 2, 9 | Ukraine, Kiev | 50.00 | uah | 680 | – 493 |
| Gardermoen Perishable Center as 3, 9 | Norway, Gardermoen | 33.33 | nok | 3,793 | – 491 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
11 Company is included in group fi nancial statements of Deutsche Postbank ag. 12 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
7 a Inclusion in accordance with ias 27.13 (a). 7 b Inclusion in accordance with ias 27.13 (b – d). 8 In liquidation. 9 Local gaap. 10 Voting rights.
| Group | Equity | Net income | |||
|---|---|---|---|---|---|
| Name | Headquarters | equity share % | Currency | thousands | thousands |
| Jurte Grundstücksverwaltungsgesellschaft mbH & Co. | |||||
| Vermietungs kg 3, 9, 10 | Germany, Mainz | 24.00 | eur | 0 | 0 |
| Maxser Holding b. v. 4 | Netherlands, Maastricht | 30.00 | eur | – | – |
| profresh Systemlogistik GmbH 3, 9 | Germany, Hamburg | 33.33 | eur | 57 | 17 |
| Americas | |||||
| bits Limited 3, 4, 9 | Bermuda, Hamilton | 40.00 | bmd | – 984 | – |
| Consimex s.a. 3, 9 | Colombia, Medellín | 29.24 | cop | 9,728,288 | 493,933 |
| dhl International (Cayman) Ltd. 3, 4, 9 | Cayman Islands, George Town | 40.00 | kyd | – 960 | – |
| Wilmington Commerce Park Partnership 3, 9 | usa, Westerville | 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 | zar | 11,904 | 2,752 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
14 Not included because they do not have signifi cant infl uence on the Group's net assets, fi nancial position and results of operations.
| Name | Headquarters | Group equity share % |
Currency | Equity thousands |
Net income thousands |
|---|---|---|---|---|---|
| Europe | |||||
| Deutsche Post Pensionsfonds ag 3, 9 | Germany, Bonn | 99.98 | eur | 3,225 | 0 |
| Deutsche Post Pensions-Treuhand GmbH & Co. kg 2, 9 | Germany, Bonn | 99.98 | eur | 10 | 0 |
| Asia Pacifi c | |||||
| Sinotrans Ltd. 1, 3 | China, Beijing | 5.59 | rmb | 12,039,989 | 832,058 |
Reported ifrs data.
1 Only subgroup data available. 2 Amounts from 2009. 3 Amounts from 2010. 4 Data not available. 5 Dormant. 6 Amounts after profi t transfer.
7 a Inclusion in accordance with ias 27.13 (a). 7 b 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 Amounts from 2008. 13 Inclusion in accordance with sic 12 (spe).
To the best of our knowledge, and in accordance with the applicable reporting 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, 17 February 2012
Deutsche Post AG Th e Board of Management
Dr Frank Appel Ken Allen
Roger Crook Bruce Edwards
Walter Scheurle
Jürgen Gerdes Lawrence A. Rosen
To Deutsche Post AG
We have audited the consolidated fi nancial statements of Deutsche Post AG, Bonn, and its subsidiaries, 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 for the fi nancial year from 1 January to 31 December 2011.
Th e Board of Management of Deutsche Post AG, Bonn, is responsible for preparation of these consolidated fi nancial statements. Such responsibility extends to the preparation of consolidated fi nancial statements in accordance with the IFRS s as adopted by the EU and the additional requirements of German law pursuant to section 315 a (1) Handelsgesetzbuch (HGB – German Commercial Code) that 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 Board of Management is also responsible for such internal control as it determines is necessary to enable the preparation of consolidated fi nancial statements that are free from material misstatements, whether due to fraud or error.
Our responsibility is to express an opinion on these consolidated fi nancial statements based on our audit. We conducted our audit 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 International Standards on Auditing (ISA). Th ose standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated fi nancial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated fi nancial statements. Th e procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of consolidated fi nancial statements that give a true and fair view in order to design and conduct audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff ectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated fi nancial statements.
We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our qualifi ed audit opinion.
Pursuant to section 322 (3) sentence 1 HGB, we hereby state that 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, in all material respects, with the IFRS s as adopted by the EU and the additional requirements of German law pursuant to section 315 a (1) HGB and give a true and fair view of the net assets and fi nancial position of the Group as at 31 December 2011 and the results of operations for the fi nancial year ended on such date in accordance with these requirements.
We have audited the group management report of Deutsche Post AG, Bonn, for the fi nancial year from 1 January to 31 December 2011. Th e Board of Management of Deutsche Post AG, Bonn, is responsible for preparation of the group management report in accordance with the requirements of German law pursuant to section 315 a (1) HGB. We conducted our audit in accordance with section 317 (2) HGB and the generally accepted standards for the audit of fi nancial statements promulgated by the Institut der Wirtschaft sprüfer (IDW) for the audit of group management reports. Th ose standards require that we plan and perform the audit of the group management report to obtain reasonable assurance about whether the group management report is consistent with the consolidated fi nancial statements and the fi ndings we made during our audit and, as a whole, provides a suitable understanding of the group's position and suitably presents the opportunities and risks of future development.
Düsseldorf, 17 February 2012
PricewaterhouseCoopers Aktiengesellschaft Wirtschaft sprüfungsgesellschaft
Gerd Eggemann Dietmar Prümm Wirtschaft sprüfer Wirtschaft sprüfer (German Public Auditor) (German Public Auditor)
D FURTHER INFORMATION
| INDEX | 249 |
|---|---|
| GLOSSARY | 250 |
| GRAPHS AND TABLES | 251 |
| LOCATIONS | 252 |
| MULTI-YEAR REVIEW | 254 |
| CONTACTS | 256 |
| EVENTS | IV |
Advertising mail 65 Air freight 29, 39, 72 ff., 114 f., 119 Annual General Meeting 31 ff., 48, 120, 126 ff., 133, 138, 146 f., 187 Articles of Association 31 ff., 146 Auditor's report 128, 246 Authorised capital 32, 187
Balance sheet 53, 58 f., 153, 156 f., 160 ff., 164 ff., 170 f., 180 ff. Board of Management 3 ff., 30 ff., 45 f., 48, 99 ff., 110 ff., 116, 125 ff., 130 ff., 133 ff., 139 ff., 168, 187, 217 ff., 245 Board of Management remuneration 31, 34, 126, 137, 139 ff., 221 Bonds 50, 51, 53, 166, 196 f. Brands 30, 95 ff., 157, 165, 172, 180
Capital expenditure 41, 49, 54 ff., 66, 106, 121 f., 137, 173, 200 Cash fl ow 40, 42, 46, 49 f., 56 f., 60, 66, 71, 75, 80, 120, 154, 165, 199 ff., 202 ff., 208 f., 254 Cash fl ow statement 56 f., 154, 156, 199 ff. Change in control 34, 141 f. Consolidated net profi t 46, 48, 58, 151, 152, 154, 155, 179, 188, 199, 254 Consolidated revenue 47, 157 f. Contingent capital 32 f., 187 Contract logistics 29 f., 76 ff., 120, 139, 160, 173 Corporate governance 30, 34, 123 ff., 128, 133 ff., 222 Cost of capital 40 f., 50, 181 Credit lines 51, 201 Credit rating 49 f., 52, 121
Declaration of Conformity 126, 128, 133, 222 Dialogue Marketing 30, 60, 62, 65, 95, 173 Dividend 42, 46, 48, 49 f., 57 f., 97, 120, 128, 154, 179, 188 f., 255
Earnings per share 42, 46, 48, 151, 179, 255 ebit after asset charge 40 f., 140, 143 e-Postbrief 29, 40, 55, 61 f., 93, 96, 107, 113, 118 Equity ratio 58 f., 187, 255 express 9 ff., 29 f., 39, 47, 52, 54 ff., 60, 67 ff., 81 f., 93 f., 95, 105, 113 f., 119, 121, 159 f., 172 f.
Finance strategy 49 ff., 120 First Choice 93 f., 106, 111, 113, 115 Free fl oat 44, 186 Freight 30, 39, 47, 55, 60, 73, 75, 95, 157, 159 f., 173 Freight forwarding business 73, 75, 94, 119, 159
Global Business Services 29 f., 173 Global economy 35 f., 45, 98, 117 f., 120 Global Forwarding 30, 55, 60, 72 ff., 95, 114 f., 121, 173 global forwarding, freight 29 f., 54 ff., 60, 72 ff., 81 f., 94 f., 105, 114 f., 121, 127, 159 f., 172 f. Global Mail 30, 60, 63, 66, 95, 173 GoGreen 23, 87 ff., 93, 107, 133 f. GoHelp 87, 89, 133 f. GoTeach 87, 90, 133 f. Guarantees 49, 52
Illness rate 85
I
Income statement 151, 156, 160 f., 164, 175 ff., 183 f. Income taxes 48, 151, 152, 154, 170, 178 f. Investments 41, 49, 54 ff., 58 f., 66, 90, 105 f., 115, 119, 121 f., 137, 200, 254
Letters of comfort 49, 52 Liquidity management 51, 201 Living responsibility 87, 110, 133 f.
mail 15 ff., 29 f., 39, 45, 47, 52, 54 ff., 60, 61 ff., 81, 92 f., 95, 98, 105, 112 f., 120, 121, 172 f. Mail Communication 30, 60, 61, 64, 95, 118, 173 Mandates 132 Market shares 61 ff., 68 f., 72 f., 78, 118 f. Market volumes 39
Net asset base 40 f. Net debt 59, 187 Net gearing 59, 187, 255 Net interest cover 58 f.
Ocean freight 29, 39, 72 ff., 102, 114, 119 Oil price 36, 48, 118 Operating cash fl ow 46, 49 f., 56, 60, 66, 71, 75, 80, 120, 254 Opportunities 98 ff., 101 f., 111, 114, 119, 125, 173 Outlook 98 ff.
Parcel Germany 15 ff., 30, 60, 63, 65, 81, 95, 173 Pension Service 30, 60, 61, 95, 173 Press Services 30, 60, 62, 65, 95, 119, 173 Price-to-earnings ratio 42, 255
Quality 29, 54, 63, 67 f., 77, 86, 92 ff., 104 f., 112 f.
Rating 49 f., 52, 87, 121 Regulation 40, 102 f., 125, 216 f. Responsibility statement 245 Retail outlets 30, 60, 61, 63, 66, 93, 112, 173 Return on sales 46, 60, 66, 71, 75 Revenue 46, 47, 60, 64 ff., 69 ff., 73 ff., 78 f., 120, 151, 157 f., 160, 164, 172, 175, 254 Risk management 85, 98 ff., 127, 137, 201, 204 f. Road transport 39, 73, 75, 119, 173
Segment reporting 46 f., 78, 172 ff. Share capital 31 ff., 186 f., 218, 221 Share price 43, 168, 217 Shareholder structure 44 f. Staff costs 48, 81, 151, 168 f., 176, 195, 200, 219, 255 Strategy 2015 39, 44, 81, 86, 87, 95, 110 ff., 126 Supervisory Board 31 ff., 48, 116, 125 ff., 129, 132, 133 ff., 146 ff., 220 f., 222 Supervisory Board committees 126 f., 129, 137 f., 147 Supervisory Board remuneration 146 ff., 221 supply chain 29 f., 46 f., 54, 56, 60, 64, 76 ff., 81 f., 95, 105, 115 f., 120, 122, 157, 159 f., 172 f.
Tax rate 255 Trade volumes 37 f., 118, 120 Training 83, 85, 107
wacc 40 f., 50, 181 Williams Lea 30, 47, 56, 59, 60, 62, 78 f., 95, 120, 157, 173 Working capital 40, 56, 66, 71, 75, 80, 91, 181, 200
All outbound international mail.
Market-orientated activities that apply direct communications to selectively reach target groups using a personal, individualised approach.
A means of secure and reliable online communication that can be delivered both electronically and by traditional mail.
Federal Network Agency (Bundesnetzagentur) German national regulator for electricity, gas, telecommunications, post and railway.
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.
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.
Letter measuring a maximum of 235 × 125 × 5 mm and weighing up to 20 g.
A press product of which no more than 30 % consists of journalistic reporting.
Target-specific advertising on websites aimed at achiev ing the highest possible advertising effectiveness.
Logistics services for manufacturer exchanges, returns and repairs.
Outsourcing specifi c business functions to a thirdparty service provider.
Packaging services integrated into supply chain solutions.
Goods are picked up from end users at different addresses, transported to the predetermined repair company, collected after repair and returned to the end user.
Large, standardised, lockable storage unit with a volume of more than three cubic metres and a holding capacity of more than fi ve 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.
Delivery of shipments on a specifi ed day.
Unit that brings together the Group's existing innovation drivers, develops innovative solutions and promotes cross-divisional co-operation.
Fulfi lment services for the e-commerce market.
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.
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 fill 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.
Time-critical samples (tissue, blood) are transported during the clinical test phase of a new drug.
Shipment that does not constitute a full truckload but is transported from point of departure to destination without transhipment.
Delivery within 24 hours of order placement.
A series of connected resources and processes from sourcing materials to delivering goods to consumers.
Time Defi nite Delivery of time-critical shipments for which the day or time of delivery has been specifi ed or guaranteed.
A forum that unites manufacturers, logistics providers, freight carriers, law enforcement authorities and other stakeholders with the common aim of reducing losses from international supply chains.
Standardised container unit, 20 foot long, 8 foot wide (6 × 2.4 metres).
| 01.1 Selected key fi gures | i | |
|---|---|---|
| 02 | Group structure | ii |
| 03 | Target-performance comparison | iii |
| 04 | Events | iv |
| A | Group Management Report | |
| Business and Environment | ||
| a.01 Organisational structure | ||
| of Deutsche Post DHL | 30 | |
| a.02 Group structure from different perspectives |
30 | |
| a.03 Global economy: growth indicators in 2011 |
35 | |
| a.04 Brent Crude spot price and euro / us dollar exchange rate in 2011 |
36 | |
| a.05 Trade volumes: compound annual growth | ||
| rate 2010 – 2011 a.06 Major trade fl ows: 2011 volumes |
37 38 |
|
| a.07 Market volumes | 39 | |
| a.08 eac calculation | 40 | |
| a.09 Net asset base calculation | 40 | |
| a.10 ebit after asset charge (eac) | 41 | |
| a.11 Net asset base (unconsolidated) | 41 | |
| Deutsche Post Shares | ||
| a.12 Deutsche Post shares: multi-year review | 42 | |
| a.13 Peer group comparison: closing prices | 43 | |
| a.14 Share price performance | 43 | |
| a.15 Candlestick graph / 30-day moving average 44 | ||
| a.16 Shareholder structure | 44 | |
| a.17 Shareholder structure by region | 45 | |
| Economic Position | ||
| a.18 Selected indicators for results of operations |
46 | |
| a.19 Consolidated revenue | 47 | |
| a.20 Consolidated ebit | 48 | |
| a.21 Total dividend and dividend per no-par value share |
48 | |
| a.22 Finance strategy | 50 | |
| a.23 ffo to debt | 50 | |
| a.24 Agency ratings | 52 | |
| a.25 Financial liabilities | 53 | |
| a.26 Operating lease liabilities by asset class | 53 | |
| a.27 Capex by region | 54 | |
| a.28 Capex and depreciation, amortisation and impairment losses, full year |
54 | |
| a.29 Capex and depreciation, amortisation and impairment losses, q4 |
54 | |
| a.30 Operating cash fl ow by division, 2011 | 56 | |
| a.31 Selected cash fl ow indicators | 56 | |
|---|---|---|
| a.32 Calculation of free cash fl ow | 57 | |
| a.33 Selected indicators for net assets | 58 | |
| a.34 Net liquidity (–) / net debt (+) | 59 | |
| Divisions | ||
| a.35 Key fi gures by operating division | 60 | |
| a.36 Domestic mail communication market, business customers 2011 |
61 | |
| a.37 Domestic dialogue marketing market, 2011 62 | ||
| a.38 Domestic press services market, 2011 | 62 | |
| a.39 Domestic parcel market, 2011 | 63 | |
| a.40 International mail market, 2011 (outbound) 63 | ||
| a.41 Mail Communication: volumes | 64 | |
| a.42 Dialogue Marketing: volumes | 65 | |
| a.43 Parcel Germany: volumes | 65 | |
| a.44 Mail International: volumes | 66 | |
| a.45 European international express market, 2010 : top 4 |
68 | |
| a.46 Americas international express market, 2010: top 4 |
68 | |
| a.47 Asia Pacifi c international express market, 2010 : top 4 |
69 | |
| a.48 International express market in the eemea region, 2010: top 4 |
69 | |
| a.49 express: revenue by product | 70 | |
| a.50 express: volumes by product | 70 | |
| a.51 Air freight market, 2010: top 4 | 72 | |
| a.52 Ocean freight market, 2010: top 4 | 73 | |
| a.53 European road transport market, 2010: top 5 |
73 | |
| a.54 Global Forwarding: revenue | 74 | |
| a.55 Global Forwarding: volumes | 74 | |
| a.56 Logistics and value-added services along the entire supply chain |
76 | |
| a.57 Contract logistics market, 2010: top 10 | 78 | |
| a.58 supply chain: revenue by sector, 2011 | 79 | |
| a.59 supply chain: revenue by region, 2011 | 79 | |
| Non-Financial Performance Indicators | ||
| a.60 Number of employees | 81 | |
| a.61 Employees by region, 2011 | 82 | |
| a.62 Gender distribution in management, 2011 | 84 | |
| a.63 Work-life balance | 85 | |
| a.64 Traineeships, Deutsche Post DHL, worldwide |
85 | |
| a.65 Illness rate | 85 | |
| a.66 Occupational safety | 86 | |
| a.67 Idea management | 86 | |
| a.68 co2 emissions, 2011 | 88 | |
| a.69 Procurement expenses, 2011 | 90 | |
a.70 Brands and business units 95
| Outlook | ||
|---|---|---|
| a.71 Monte Carlo simulation | 99 | |
| a.72 Opportunity and risk management | ||
| process | 99 | |
| a.73 Global economy: growth forecasts | 117 | |
| B | Corporate Governance |
| b.01 Members of the Supervisory Board | 129 | |
|---|---|---|
| b.02 Committees of the Supervisory Board | 129 | |
| b.03 Mandates held by the Board of Management |
132 | |
| b.04 Mandates held by the Supervisory Board | 132 | |
| b.05 Remuneration paid to the Group Board of Management in 2011: cash components 143 |
||
| b.06 Remuneration paid to the Group Board of Management in 2011: share-based component with long-term incentive effect |
143 | |
| b.07 Remuneration paid to the Group Board of Management in 2010: cash components 144 |
||
| b.08 Remuneration paid to the Group Board of Management in 2010: share-based component with long-term incentive effect |
144 | |
| b.09 Pension commitments under the previous system in fi nancial year 2011: individual breakdown |
145 | |
| b.10 Pension commitments under the previous system in the previous year (2010): individual breakdown |
145 | |
| b.11 Board of Management pension commit ments under the new system in fi nancial year 2011: individual breakdown |
146 | |
| b.12 Board of Management pension commit ments under the new system in the previ ous year (2010): individual breakdown |
146 | |
| b.13 Remuneration paid to Supervisory Board members in 2011 |
147 | |
| b.14 Remuneration paid to Supervisory Board members in 2010 |
148 | |
| C | Consolidated Financial Statements | |
| c.01 Income Statement | 151 | |
| c.02 Statement of Comprehensive Income | 152 | |
| c.03 Balance Sheet | 153 | |
| c.04 Cash Flow Statement | 154 | |
| c.05 Statement of Changes in Equity | 155 |
| d.01 Deutsche Post DHL around the world | 252 |
|---|---|
| d.02 Key fi gures 2004 to 2011 | 254 |
| Antigua and Barbuda | |
|---|---|
| Argentina | |
| Aruba | |
| Bahamas | |
| Barbados | |
| Belize | |
| Bermuda | |
| Bolivia | |
| Brazil | |
| British Virgin Islands | |
| Canada | |
| Cayman Islands |
Austria Belgium
Bulgaria Croatia Cyprus
Denmark Estonia Finland France Germany
Bosnia and Herzegovina Czech Republic
United Kingdom
1 Countries according to the list of shareholdings.
| Algeria | Ghana |
|---|---|
| Angola | Guinea |
| Bahrain | Iran |
| Benin | Iraq |
| Botswana | Israel |
| Burkina Faso | Ivory Coast |
| Cameroon | Jordan |
| Central African Republic | Kenya |
| Chad | Kuwait |
| Democratic Republic | Lebanon |
| of Congo | Lesotho |
| Egypt | Liberia |
| Ethiopia | Madagascar |
| Gabon | Malawi |
| Gambia | Mali |
Mauretania Mauritius Morocco Mozambique Namibia Niger Nigeria Oman Qatar Republic of Congo Republic of Equatorial Guinea Réunion Saudi Arabia Senegal
Sierra Leone South Africa Swaziland Tanzania Togo Turkey Uganda United Arab Emirates Yemen Zambia Zimbabwe
Australia Bangladesh Brunei Darussalam Cambodia China East Timor Fiji French Polynesia India Indonesia Japan Kazakhstan Laos Macau
| € m | 2004 adjusted |
2005 adjusted |
2006 adjusted |
2007 adjusted |
2008 adjusted |
2009 adjusted |
2010 adjusted |
2011 |
|---|---|---|---|---|---|---|---|---|
| Revenue | ||||||||
| 12,747 | 12,878 | 15,290 | 14,569 | 14,393 | 13,912 | 13,913 | 13,973 | |
| express | 17,557 | 16,831 | 13,463 | 13,874 | 13,637 | 9,917 | 11,111 | 11,766 |
| logistics | 6,786 | 9,933 | 24,405 | – | – | – | – | – |
| global forwarding, freight | – | – | – | 12,959 | 14,179 | 11,243 | 14,341 | 15,044 |
| supply chain | – | – | – | 14,317 | 13,718 | 12,183 | 13,061 | 13,223 |
| financial services | 7,349 | 7,089 | 9,593 | – | – | – | – | – |
| services | – | 3,874 | 2,201 | – | – | – | – | – |
| Divisions total | 44,439 | 50,605 | 64,952 | 55,719 | 55,927 | 47,255 | 52,426 | 54,006 |
| Corporate Center / Other (until 2004: Other / Consolidation; until 2006: Consolidation; until 2007: Corporate Center / Other and Consolidation) |
–1,271 | – 6,011 | – 4,407 | –1,676 | 1,782 | 1,527 | 1,302 | 1,260 |
| Consolidation | – | – | – | – | –3,235 | –2,581 | –2,340 | –2,437 |
| Continuing operations | – | – | – | 54,043 | 54,474 | 46,201 | 51,388 | 52,829 |
| Discontinued operations | – | – | – | 10,335 | 11,226 | 1,634 | – | – |
| Total | 43,168 | 44,594 | 60,545 | – | – | – | – | – |
| Profi t / loss from operating activities (ebit) | ||||||||
| 2,072 | 2,030 | 2,094 | 1,976 | 2,179 | 1,391 | 1,120 | 1,107 | |
| express | 117 | –23 | 288 | –272 | –2,194 | –790 | 497 | 927 |
| logistics | 182 | 346 | 751 | – | – | – | – | – |
| global forwarding, freight | – | – | – | 409 | 362 | 174 | 383 | 429 |
| supply chain | – | – | – | 577 | – 920 | –216 | 231 | 362 |
| financial services | 714 | 863 | 1,004 | – | – | – | – | – |
| services | – | 679 | –229 | – | – | – | – | – |
| Divisions total | 3,085 | 3,895 | 3,908 | 2,690 | – 573 | 559 | 2,231 | 2,825 |
| Corporate Center / Other (until 2004: Other / Consolidation; until 2006: Consolidation; until 2007: Corporate Center / Other and Consolidation) |
– 84 | –131 | –36 | – 557 | –393 | –328 | –395 | –389 |
| Consolidation | – | – | – | – | 0 | 0 | –1 | 0 |
| Continuing operations | – | – | – | 2,133 | – 966 | 231 | 1,835 | 2,436 |
| Discontinued operations | – | – | – | 1,060 | – 871 | –24 | – | – |
| Total | 3,001 | 3,764 | 3,872 | – | – | – | – | – |
| Consolidated net profi t / loss for the period | 1,740 | 2,448 | 2,282 | 1,873 | –1,979 | 693 | 2,630 | 1,266 |
| Cash fl ow / investments / depreciation, amortisation and impairment losses |
||||||||
| Total cash fl ow from operating activities | 2,336 | 3,624 | 3,922 | 5,151 | 1,939 | – 584 | 1,927 | 2,371 |
| Total cash fl ow from investing activities | –385 | – 5,052 | –2,697 | –1,053 | – 441 | –2,710 | 8 | –1,129 |
| Total cash fl ow from fi nancing activities | – 493 | –1,288 | – 865 | –1,787 | –1,468 | 1,676 | –1,651 | –1,547 |
| Investments | 2,536 | 6,176 | 4,066 | 2,343 | 3,169 | 1,444 | 1,276 | 1,880 |
| Depreciation, amortisation and impairment losses | 1,821 | 1,961 | 1,771 | 2,196 | 2,662 | 1,620 | 1,296 | 1,274 |
| Assets and capital structure | ||||||||
| Non-current assets | 17,027 | 25,223 | 26,074 | 25,764 | 20,517 | 22,022 | 24,493 | 21,225 |
| Current assets | 136,369 | 147,417 | 191,624 | 209,656 | 242,447 | 12,716 | 13,270 | 17,183 |
| Equity (excluding non-controlling interests) | 7,242 | 10,624 | 11,220 | 11,035 | 7,826 | 8,176 | 10,511 | 11,009 |
| Non-controlling interests | 1,623 | 1,791 | 2,732 | 2,778 | 2,026 | 97 | 185 | 190 |
| Current and non-current provisions | 12,441 | 12,161 | 14,233 | 12,276 | 10,836 | 9,677 | 9,427 | 9,008 |
| Current and non-current liabilities 1 | 15,064 | 19,371 | 20,850 | 21,544 | 242,276 | 16,788 | 17,640 | 18,201 |
| Total assets | 153,396 | 172,640 | 217,698 | 235,420 | 262,964 | 34,738 | 37,763 | 38,408 |
| 2004 adjusted |
2005 adjusted |
2006 adjusted |
2007 adjusted |
2008 adjusted |
2009 | 2010 | 2011 | ||
|---|---|---|---|---|---|---|---|---|---|
| Employees / staff costs (from 2007: continuing operations) |
|||||||||
| Total number of employees (headcount including trainees) |
as at 31 Dec. |
379,828 | 502,545 | 520,112 | 512,147 | 512,536 | 477,280 | 467,088 | 471,654 |
| Full-time equivalents (excluding trainees) 2 | as at 31 Dec. |
340,667 | 455,115 | 463,350 | 453,626 | 451,515 | 424,686 | 418,946 | 423,502 |
| Average number of employees (headcount) | 381,492 | 393,463 | 507,641 | 500,252 | 511,292 | 488,518 | 464,471 | 467,188 | |
| Staff costs | € m | 13,840 | 14,337 | 18,616 | 17,169 | 18,389 | 17,021 | 16,609 | 16,730 |
| Staff cost ratio 3 | % | 32.1 | 32.2 | 30.7 | 31.8 | 33.8 | 36.8 | 32.3 | 31.7 |
| Key fi gures revenue / income / assets and capital structure |
|||||||||
| Return on sales 4 | % | 7.0 | 8.4 | 6.4 | 3.9 | –1.8 | 0.5 | 3.6 | 4.6 |
| Return on equity (roe) before taxes 5 | % | 29.2 | 28.7 | 21.6 | 8.6 | – 9.0 | 3.0 | 29.8 | 15.2 |
| Return on assets 6 | % | 1.9 | 2.3 | 2.0 | 0.9 | – 0.4 | 0.2 | 5.1 | 6.4 |
| Tax rate 7 | % | 20.2 | 19.8 | 19.7 | 14.0 | – | 5.4 | 6.9 | 23.7 |
| Equity ratio 8 | % | 5.8 | 7.2 | 6.4 | 5.9 | 3.7 | 23.8 | 28.3 | 29.2 |
| Net debt (+) / net liquidity (–) (Postbank at equity) 9 | € m | –32 | 4,193 | 3,083 | 2,858 | 2,466 | –1,690 | –1,382 | – 938 |
| Net gearing (Postbank at equity) 10 | % | – 0.4 | 28.1 | 21.4 | 20.4 | 23.7 | –25.7 | –14.8 | – 9.1 |
| Dynamic gearing (Postbank at equity) 11 | years | 0.0 | 2.4 | 1.4 | 1.0 | 0.7 | –1.4 | – 0.7 | – 0.4 |
| Key stock data | |||||||||
| (Diluted) earnings per share 12 | € | 1.44 | 1.99 | 1.60 | 1.15 | –1.40 | 0.53 | 2.10 | 0.96 |
| Cash fl ow per share 12, 13 | € | 2.10 | 3.23 | 3.28 | 4.27 | 1.60 | – 0.48 | 1.59 | 1.96 |
| Dividend distribution | € m | 556 | 836 | 903 | 1,087 | 725 | 725 | 786 | 846 14 |
| Payout ratio (distribution to consolidated net profi t) | % | 34.8 | 37.4 | 47.1 | 78.6 | – | 112.6 | 30.9 | 72.7 |
| Dividend per share | € | 0.50 | 0.70 | 0.75 | 0.90 | 0.60 | 0.60 | 0.65 | 0.70 14 |
| Dividend yield (based on year-end closing price) | % | 3.0 | 3.4 | 3.3 | 3.8 | 5.0 | 4.4 | 5.1 | 5.9 |
| (Diluted) price / earnings ratio 15 | 11.7 | 10.3 | 14.3 | 20.4 | – 8.5 | 25.5 | 6.0 | 12.4 | |
| Number of shares carrying dividend rights | millions | 1,112.8 | 1,193.9 | 1,204.0 | 1,208.2 | 1,209.0 | 1,209.0 | 1,209.0 | 1,209.0 |
| Year-end closing price | € | 16.90 | 20.48 | 22.84 | 23.51 | 11.91 | 13.49 | 12.70 | 11.88 |
1 Excluding liabilities from fi nancial services. 2 2004 including trainees. 3 Staff costs / revenue. 4 ebit / revenue (from 2007: continuing operations). 5 Profi t before income taxes (from 2007:
continuing operations) / average equity (including non-controlling interests). 6 ebit (from 2007: continuing operations) / average total assets. 7 Income taxes / profi t before income taxes. 8 Equity (including non-controlling interests)/total assets. 9 Financial liabilities excluding cash and cash equivalents, current financial assets and long-term deposits. From 2006: excluding fi nancial liabilities to minority shareholders of Williams Lea. From 2008: please refer to page 59 of the Group Management Report. 10 Net debt / net debt and equity (including noncontrolling interests). 11 Net debt / cash fl ow from operating activities. 12 The weighted average number of shares for the period was used for the calculation. 13 Cash fl ow from operating activities. 14 Proposal. 15 Year-end closing price / earnings per share.
Tel.: + 49 (0) 228 182-6 36 36 Fax: + 49 (0) 228 182-6 31 99 e-mail: ir @ deutschepost.de
Tel.: + 49 (0) 228 182-99 44 Fax: + 49 (0) 228 182-98 80 e-mail: pressestelle @deutschepost.de
Published on 13 March 2012.
e-mail: ir @ deutschepost.de dp-dhl.com/en/investors.html
GeT and dhl Webshop Mat. no. 675-602-331
Deutsche Post Corporate Language Services et al.
The English version of the Annual Report 2011 of Deutsche Post DHL constitutes a translation of the original German version. Only the German version is legally binding, insofar as this does not conflict with legal provisions in other countries.
| Financial calendar | ||
|---|---|---|
| 8 MAY 2012 | 9 MAY 2012 | 10 MAY 2012 |
| INTERIM REPORT JANUARY TO MARCH 2012 |
2012 ANNUAL GENERAL MEETING (FRANKFURT AM MAIN) |
DIVIDEND PAYMENT |
| 24 MAY 2012 | 2 AUGUST 2012 | 8 NOVEMBER 2012 |
| CAPITAL MARKETS DAY (LONDON) |
INTERIM REPORT JANUARY TO JUNE 2012 |
INTERIM REPORT JANUARY TO SEPTEMBER 2012 |
| 12 MARCH 2013 | 14 MAY 2013 | 29 MAY 2013 |
| ANNUAL REPORT 2012 | INTERIM REPORT JANUARY TO MARCH 2013 |
2013 ANNUAL GENERAL MEETING (FRANKFURT AM MAIN) |
| 30 MAY 2013 | 6 AUGUST 2013 | 12 NOVEMBER 2013 |
| DIVIDEND PAYMENT | INTERIM REPORT JANUARY TO JUNE 2013 |
INTERIM REPORT JANUARY TO SEPTEMBER 2013 |
| Investor events 1 | |
|---|---|
| 13 – 14 March 2012 | j. p. Morgan Transportation Conference (New York) |
| 21 March 2012 | Nomura Transport Conference (London) |
| 14 – 15 May 2012 | Deutsche Bank German, Swiss & Austrian Corporate Conference (Frankfurt am Main) |
| 13 June 2012 | rbc Transport and Infrastructure Investor Day (London) |
| 26 June 2012 | Goldman Sachs Business Services Conference (London) |
| 27 June 2012 | Davy Transport Conference (London) |
| 6 September 2012 | Deutsche Bank Transportation & Aviation Conference (New York) |
| 13 September 2012 | ubs Best of Germany Conference (New York) |
| 19 September 2012 | Sanford C. Bernstein's Strategic Decisions Conference (London) |
1Further dates, updates as well as information on live webcasts dp-dhl.com/en/investors.html.
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