DHL 2000 Annual Report Download

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Financial calendar 2001
May 16, 2001 Analysts’ conference call/First-quarter figures
June 27, 2001 Deutsche Post AG Shareholders’ Meeting, Kölnarena/Köln-Deutz
August 29, 2001 Analysts’ conference in Bonn/Half-year figures
August 29, 2001 Press conference in Bonn
November 29, 2001 Analysts’ conference call/Third-quarter figures
Subject to correction – changes may be made at short notice

Table of contents

  • Page 1
    Financial calendar 2001 May 16, 2001 June 27, 2001 August 29, 2001 August 29, 2001 November 29, 2001 Analysts' conference call/First-quarter figures Deutsche Post AG Shareholders' Meeting, Kölnarena/Köln-Deutz Analysts' conference in Bonn/Half-year figures Press conference in Bonn Analysts' ...

  • Page 2
    ... Deutsche Post AG Konzernkommunikation Headquarters Corporate Finance/ Investor Relations 53109 Bonn 53250 Bonn For information on AKTIE GELB please e-mail [email protected] Investor Relations: Tel.: + 49 2 28 1 82-64 61 Fax: + 49 2 28 1 82-66 64 E-mail: [email protected] Press Office...

  • Page 3
    OPEN Annual Report 2000

  • Page 4
    ... also includes the associated value added services; for instance, we provide electronic information systems to our customers and process their financial transactions.We are expanding our product range systematically to produce all-round solutions, which we are increasingly customizing to respond to...

  • Page 5
    ... before tax/average equity levels 5) To allow better comparison, calculation was based on the number of shares following the increase in share capital and switch to Euro as well as conversion to 1,112,800,000 no-par value shares (1999: 42,800,000 shares) 4) Profit Revenue by corporate division MAIL...

  • Page 6
    Deutsche Post World Net's brand architecture Corporate logo Brand Brand Brand Brand

  • Page 7
    ... - 1,326 32,708 1998 1999 2000 EBITDA Profit from operating activities, before amortization of goodw ill (EBITA) MAIL MAIL share EXPRESS EXPRESS share LOGISTICS LOGISTICS share FINANCIAL SERVICES FINANCIAL SERVICES share Corporate divisions total Other/consolidation Total in â,¬ millions 1,299...

  • Page 8
    ... better comparison, calculation was based on the number of shares follow ing the increase in the share capital and sw itch to â,¬ as w ell as conversion to 1,112,800,000 no-par value shares (in previous years: 42,800,000 shares). 4) Cash flow I forms the basis. 5) Profit before tax/average equity...

  • Page 9
    ... report following auditor's review 130 131 132 133 133 134 142 Consistent implementation of corporate strategy • Risk report Post-balance sheet events • Prospects AKTIE GELB 34 Report by the Supervisory Board Corporate Divisions MAIL EXPRESS LOGISTICS FINANCIAL SERVICES 38 46 54 62

  • Page 10
    ... Company, Inc. in Düsseldorf and New Y ork in 1974 where he became Partner and member of the German management in 1979. Five years later he was made Senior Partner, having been elected into McKinsey's worldwide management. In 1985, he moved to the Quelle group in Fürth where he was appointed board...

  • Page 11
    ... corporate transformation and, with the successful IPO, opened a new chapter in our company's over 500-year histor y. In the last financial year, Deutsche Post World Net achieved record results. Revenue rose by 46.3% to â,¬ 32.7 billion and we were able to more than double our EBITA (profit...

  • Page 12
    ...ten years Deutsche Post has been consistently pursuing a new direction. Away from a government-led bureaucracy toward an international group called Deutsche Post World Net. Thanks to a well-targeted acquisitions policy, we now have a worldwide range of mail, express, logistics and financial services...

  • Page 13
    Foreword All of our services and activities will contribute to the achievement of our ambitious goals: we want to expand our position as a leading global player in the logistics business. We want to offer our customers top services worldwide, our personnel jobs with prospects for the future and our...

  • Page 14
    Prof. Dr. Wulf von Schimmelmann FINANCIAL SERVICES Uwe R. Dörken EXPRESS (from 2001: Worldwide Express) Dr. Klaus Zumwinkel Chairman of the Board of Management Walter Scheurle Personnel 6

  • Page 15
    Board of Management Dr. Peter Kruse Euro Express (from 2001) Dr. Edgar Ernst Finance Dr. Hans-Dieter Petram MAIL Peter Wagner LOGISTICS 7

  • Page 16
    HIGHL 8

  • Page 17
    Milestones IGHTS A new service dimension for our customers. Promising perspectives for our shareholders. 9

  • Page 18
    .... Danzas AEI thus becomes the Number One in airfreight worldwide. M arch Acquisition of Herald International Mailings. Deutsche Post Global Mail acquires the London-based company Herald International Mailings. April Alliance with Lufthansa Cargo. Heralding the launch of a close strategic alliance...

  • Page 19
    ... activities for Telekom worth â,¬ 280 million a year. August Foundation stone laid for the Post Tower. Deutsche Post World Net celebrates the laying of the foundation stone for its new corporate headquarters in Bonn. In fall 2002 around 2,000 Group employees will move into their new offices...

  • Page 20
    CON 12

  • Page 21
    Group Management Report NECT A worldwide presence enables global connections: Deutsche Post World Net. 13

  • Page 22
    ... employees invested about â,¬ 400 million of their private assets in Deutsche Post shares. Business developed very successfully for Deutsche Post World Net over the year covered by this report. Both revenue and profits increased considerably. At â,¬ 2.4 billion our profit from operating activities...

  • Page 23
    Group Management Report Revenue and profit by corporate division Financial Year 2000 Revenue Profit from operating activities, before amortization of goodwill (EBITA) in â,¬ millions MAIL EXPRESS* LOGISTICS* FINANCIAL SERVICES* Total for all corporate divisions Other/consolidation Total 11,733 6,...

  • Page 24
    ... Investment funds 2-3 5 19 3-5 12 - 20 9 8 3 4 21 One-stop shopping LOGISTICS Outsourcing FINANCIAL SERVICES E-business Grow ing mail market The volume of the German mail market again grew in 2000. This confirms the trend of previous years. The internet and new forms of communication are...

  • Page 25
    ...means of addressing customers. In the year covered by this report 4.25% more letters were sent than in the previous year. The international mail market also continues to grow. Liberalization and ongoing efforts toward internationalization on the part of multi-national companies have generated volume...

  • Page 26
    ...competing with the retail outlets as the traditional sales channel. In addition, the internet fuels competition by allowing ease of comparison between banking products and services. Successful business development Favorable revenue trends In financial year 2000 Deutsche Post World Net revenues rose...

  • Page 27
    ... by increased volume, particularly in the Mail Communication business division. The increase was reflected in almost all products. The rise in hybrid mail of 63.1% over the previous year was particularly impressive, proving that the new services on offer are also accepted by the customers and are...

  • Page 28
    LOGISTICS: Grow th primarily in international business LOGISTICS also managed to serve up a revenue rise. The core of the LOGISTICS corporate division, established in 1999, is the Danzas group that operates throughout the world. It provides customers with an all-round service every step of the way ...

  • Page 29
    Group Management Report Profit from operating activities, before amortization of goodw ill (EBITA) by corporate division in â,¬ millions MAIL EXPRESS* LOGISTICS* FINANCIAL SERVICES* Total for corporate divisions Other/consolidation Total * Restated, see Notes 6 and 7 to Consolidated Financial ...

  • Page 30
    Mail business division were also very favorable. Express Europe, essentially focused over the financial year on the cost of integrating the newly acquired companies, was not able as yet to make a significant contribution to profits. The LOGISTICS corporate division improved its EBITA greatly ...

  • Page 31
    ... level of investment As in previous financial years investments remained at a high level overall. The segment investments in the Group amounted to â,¬ 3.2 billion. The trends vary depending on the corporate division. In the case of EXPRESS and LOGISTICS, that made large acquisitions in the past few...

  • Page 32
    ... â,¬ 135.1 billion. As the Postbank group's business activities differ considerably from Deutsche Post World Net's other ordinary operations, financial statements are presented in addition to the consolidated financial statements, in which the Postbank group is not included as a subsidiary. Instead...

  • Page 33
    ... as productivity gains, e.g. in the mail area, and structural effects. Overall, the Group's total workforce rose by 8.1% to 278,705 employees (calculated as FTEs, not including trainees) as at December 31, 2000. Development of w orkforce* by corporate division 2000 MAIL EXPRESS LOGISTICS FINANCIAL...

  • Page 34
    ... the challenges of this market trend. Deutsche Post World Net accomplished important steps in realizing the required changes during the past year. Targeted acquisitions supplement the service portfolio The partnership with DHL International that began with the purchase of a minority holding in 1998...

  • Page 35
    ... are part of the global village - the virtual community that is the internet. Ever lower transaction costs for electronic business offer attractive opportunities for the more efficient design of many logistics processes (supply chain management). At the same time, customers and business partners...

  • Page 36
    ...business strategy Dimensions Goals Incubator for new business eBusiness Holding e. g. venture capital; eVITA Value increase Processes Company processes e. g. corporate intranet; shopping portals Cost reduction/ Quality enhancement Products M AIL e. g. hybrid mail Corporate divisions EXPRESS...

  • Page 37
    ... electronic communication. We are countering this risk with a strategic reorientation.With our strategy of internationalization and expansion of the product range beyond the classic postal services, we hope to reduce the share of Group revenue and Group profits accounted for by the mail business...

  • Page 38
    .... The other charges under the parcel-delivery competition proceedings were rejected or did not attract a penalty. Deutsche Post World Net made a commitment to the European Commission that it would transfer its domestic parcel services for business customers to a legally independent subsidiary. The...

  • Page 39
    ... throughout the world. The aim is to combine the activities of Danzas and AEI in each region. Deutsche Post AG will increase its holding in DHL International Ltd. in financial year 2001 to 50.6%. DHL's restructuring process in the US made it necessary to register DHL Worldwide Express as a Foreign...

  • Page 40
    ... for instance, we can use the worldwide customer lists of DHL for other products from our portfolio of services and vice versa. Three phases of our corporate strategy I. Turnaround II. Establishing new business platforms III. Worldw ide leading logistics company 1990 - 1997 1998 - 2000 from 2001...

  • Page 41
    ... in the current year. Now that DSL Bank has been integrated we are in a position to realize new business potential in the area of FINANCIAL SERVICES. In the EXPRESS corporate division we already have an integrated European parcel distribution network and the first truly European products are now...

  • Page 42
    SUC 34

  • Page 43
    AKTIE GELB CESS November 2000 heralded in a new era for us. The IPO marked Day One. 35

  • Page 44
    ... part of the year, by rising crude oil prices and higher interest rates. Whereas 1999 had been a record year for the capital market with 168 new issues, with just 152 new companies venturing along that route in financial year 2000 issue activity was more tentative. Stock markets across the worlds...

  • Page 45
    ...no-par value shares (1999: 42,800,000 shares). 2) The Board of Management intends to propose a dividend distribution of â,¬ 300 million to the Shareholders' Meeting. 3) Cash flow I 4) Profit before tax/average equity levels On the last day of trading of the 2000 financial year, AKTIE GELB closed at...

  • Page 46
    SE 38

  • Page 47
    Corporate Division MAIL ND True classics thrive with ultra-modern interpretation. Best example: the letter. 39

  • Page 48
    ... been a member of the Board of Management at Deutsche Bundespost POSTDIENST, since 1995 Deutsche Post AG. As Board member, Dr. Petram first headed the retail outlets division before moving to the MAIL corporate division in October 1999. With revenue of â,¬ 11.7 billion and a delivery volume of 21...

  • Page 49
    ...centers with an 85% level of automation represent the key element in our production system. That degree of automation puts us at a very high level by international comparison. Stable market development Total volume German communications market Lorem ispumof sit dolres mail in hoppert: Deutsche Post...

  • Page 50
    ...market. Addressed mailings, direct household advertising (unaddressed) and inserts are the typical forms of physical communication used in direct marketing. In 2000 the distribution sub-segment recorded a projected volume of â,¬ 4.6 billion excluding the new media. Deutsche Post has a 46.1% share of...

  • Page 51
    ... accounted for by the business-to-business segment, 43.3% from the business-to-consumer area, 10.1% from the consumer-to-business segment and just 8% from the consumer-to-consumer segment. Share of corporate divisions' total revenue Deutsche Post World Net - Other 65.5 % MAIL 34.5 % Revenue share...

  • Page 52
    ... contributions to the Deutsche Post Pensions Service we were able to reduce staff costs by â,¬ 1,224 million to â,¬ 5,762 million, thus improving the staff costs-to-revenue ratio from 60.1% to 49.1% within one year. The average number of employees is 1.7% below the previous year's figure. Other...

  • Page 53
    ... - also provide opportunities for new services and products. Our strategy is to generate additional revenue via new products while securing our core business. The Mailing Factory, an internet-based concept for mailing campaigns, is a concrete example of new forms of communication that can bridge the...

  • Page 54
    DEL 46

  • Page 55
    Corporate Division EXPRESS IVER Borders just disappear: with Euro Express and DHL Worldwide Express. 47

  • Page 56
    ... years later he accepted a new professional challenge when he moved to the management board of Kühne & Nagel (International) AG. Since 1 January 2001, he has been a member of Deutsche Post AG's Board of Management where he heads the Euro Express board department. By means of strategic acquisitions...

  • Page 57
    ... Germany we compete with both domestic and foreign postal companies that acquire domestic mail items and transport them abroad for delivery. Market volume: â,¬ 10 bn/1999 International mail logistics market Others 68 % DP Global Mail 6% TPG/ TNT 5 % La Poste 5 % U.S. Postal Service 10 % DHL World...

  • Page 58
    ...enjoy rapid transportation and secure payment for goods acquired in internet auctions. In the business customer sector, we were able to expand our customer base. In order to focus our sales activities more on our customers'needs, the three sales segments express, parcel and international that had up...

  • Page 59
    ...system. This is a software product that provides technical support for domestic, international and express dispatch, from labeling right through to customs declarations. Express Europe Deutsche Post Global M ail's worldwide presence Windson Chicago Detroit Los Angeles New York Sterling Mexico City...

  • Page 60
    ... the worldwide courier and express delivery segment. With our joint venture World Mail Services we are planning to offer a combination of DHL's international mail products and Deutsche Post Global Mail's services. DHL will organize the sale and pick-up of the products while Deutsche Post Global Mail...

  • Page 61
    ... uniform IT systems and pan-European network management. In the Global Mail business division we intend to build up an efficient worldwide network based on an integrated IT platform for cross-border mail services. Future grow th through netw ork strength For 2001 we are expecting an average...

  • Page 62
    MO 54

  • Page 63
    Corporate Division LOGISTICS VE Everyone is talking about the logistics market of the future. We are making it happen. 55

  • Page 64
    ... group controller at headquarters in Switzerland, then moved to Kühne & Nagel Inc. in New Y ork in 1982 following his appointment as Chief Financial Officer. In 1986 he came to Germany as CFO and board member as well as managing director of several of the group's companies. After joining Danzas...

  • Page 65
    ... customer demands on the logistics service providers.What is needed is an international presence, short transit times and one-stop shopping. E-business continues to drive grow th The upswing of the world economy last year led to a trade boom from which logistics markets were also able to benefit...

  • Page 66
    ... LOGISTICS corporate division recorded a dramatic increase in revenue in the last financial year. The trend was dominated by three acquisitions, but also by internal growth. Integration of the Scandinavian company ASG and the Dutch company Nedlloyd ETD into the Solutions and Eurocargo Business Units...

  • Page 67
    ..., see Notes 6 and 7 to Consolidated Financial Statements With the integration of AEI we massively increased our volume and revenue in the area of intercontinental air and ocean freight.We expanded operations above all in airfreight: Danzas is the number one worldwide. Philips, the electronics group...

  • Page 68
    ..., the processes between Danzas and freight carriers can be optimized using electronic freight exchanges.With these steps, Deutsche Post World Net is establishing its name throughout the world as an innovative provider of logistics services for internet-based companies. Customized IT for the business...

  • Page 69
    ... and uniform software solution, with design features specific to each of the business units. For the Solutions Business Unit Prologs (processes of logistics) was developed for warehouse management and associated transport planning. The air and ocean freight system Logis is the dominant product for...

  • Page 70
    TRAN 62

  • Page 71
    Corporate Division FINANCIAL SERVICES SFER Multi-channel banking: more service via more channels for more people. 63

  • Page 72
    ... Deutsche Post AG's Board of Management in the same year, where he is responsible for the FINANCIAL SERVICES corporate division. Ten million customers with four million checking accounts and a savings volume of â,¬ 31 billion make us one of the largest banks in Germany. We expanded our product...

  • Page 73
    ... in the investment funds business. Strong grow th via new sales channels 2,871 1999 2000 Share of corporate divisions' total revenue and income from banking transactions FINANCIAL SERVICES 23.5 % Other corporate divisions 76.5 % The number of checking accounts held by private customers rose from...

  • Page 74
    ...to 1.49 million in 2000. Postbank at a glance 2000 Private checking accounts Corporate checking accounts Online banking Telephone banking Savings deposits Fund assets Private loans Building loans Commercial financing, bank refinancing, international public-sector lending in millions in millions in...

  • Page 75
    ... primarily from new business involving domestic and international commercial real estate financing and foreign bank refinancing. A clear leap forw ard The FINANCIAL SERVICES corporate division's profit from operating activities, before amortization of goodwill (EBITA) rose over the past year from...

  • Page 76
    ... serve around 70% of our customers in these newly designed outlets at open service counters - products from the MAIL, EXPRESS and FINANCIAL SERVICES corporate divisions as well as from Deutsche Telekom are all available here. Our flagship outlets are the 480 "Center" outlets. They were conceived as...

  • Page 77
    ... for the secure processing of online payments. And by the planned integration of the Versorgungsanstalt Post (Deutsche Post institution for supplementary retirement pensions; VAP) into the pension service in 2001 we will be in a position to offer companies the service of calculating and maintaining...

  • Page 78
    M OTI 70

  • Page 79
    Personnel VATE Our Group's strength is in the hands of our employees. That goes for our future, too. 71

  • Page 80
    ...member of the Board of Management, where he is responsible for the Personnel board department. We are rewarding the personal commitment, good performance and innovative ideas of our employees with modern pay systems. We are investing in training and promoting our own "new generation". Our employees...

  • Page 81
    Personnel Personnel Development of w orkforce* by corporate division as at December 31 2000 MAIL EXPRESS LOGISTICS FINANCIAL SERVICES Other (incl. retail outlet branches) Total Workforce within the Group (Headcount, incl. trainees) * calculated as FTEs 1999 142,332 38,319 29,010 11,575 36,600 257...

  • Page 82
    ... - the members of the Board of Management, members of the management bodies and a limited number of executives both from the company itself and from domestic and foreign Group companies. Stock options can only be issued to the Board of Management and a small group of other executives in exchange for...

  • Page 83
    ...the largest personnel management system anywhere in the world based on standard market software. Strategically speaking, we completed the transition from administratively focused personnel operations to distinctly more creative human resources work with our PRIMUS project. With this new strategy, in...

  • Page 84
    76

  • Page 85
    Financial Statements A whole year of good figures speaks for itself. And for us. 77

  • Page 86
    ... corporate development at Quelle, the large mail order company. In 1990 he moved to Deutsche Post, first as head of planning and controlling, then as a Board member at Deutsche Bundespost POSTDIENST. He has been a member of the Board of Management since 1995 and is responsible for the Finance board...

  • Page 87
    ... the notes to the financial statements. These consolidated financial statements, which were prepared in accordance with the standards laid down by the International Accounting Standards Committee (IASC), are the responsibility of Deutsche Post AG's Managing Board. Our responsibility is to express an...

  • Page 88
    ... 31 in â,¬ millions Notes Deutsche Post Deutsche Post World Net World Net 2000 1999 (9) (10) 32,708 1,209 22,363 1,159 Revenue and income from banking transactions Other operating income* Total operating income 33,917 23,522 Material s expense and expenses from banking transaction Staff costs...

  • Page 89
    ... in associates Other financial assets Notes Deutsche Post Deutsche Post World Net World Net 2000 1999 (22) (23) (24) 1,482 8,987 - 46 8,948 459 153 612 771 118 889 11,081 9,791 Current assets Inventories Receivables and other assets* Receivables and other securities from financial services...

  • Page 90
    ...Post Deutsche Post World Net World Net 2000 1999 2,038 - 159 1,204 221 175 776 - 258 993 - 115 66 Net profit before taxation * Proceeds from the disposal of non-current assets Depreciation of non-current assets* Non-cash income and expenses* Interest income Operating profit before w orking capital...

  • Page 91
    ... w ith ow ner Contribution to capital from corporate funds Dividend 19 - 19 - 179 Other changes in equity not affecting net profit Currency translation differences Other changes - 61 26 139 Profit-related changes in equity Transfer to retained earnings Net profit for the period 845 - 845...

  • Page 92
    Notes to the Consolidated Financial Statements of Deutsche Post World Net as at December 31, 2000 (1) Accounting principles The consolidated financial statements of Deutsche Post World Net for fiscal year 2000 were prepared in accordance with the International Accounting Standards (IAS) and ...

  • Page 93
    ... liability theor y, using the tax rates applying to future distributed profits. Estimated realizable future income tax savings from losses carried forward are also capitalized. In addition to Deutsche Post AG, the consolidated financial statements for the year ending December 31, 2000 generally...

  • Page 94
    ... Assets 100 March 2000 Acquisition Liabilities and provisions Revenue Profit/loss for the period after taxation 1,708 421 638 - 10 EXPRESS Deutsche Post Global Mail (Australia), Pty.Ltd., Australia Herald International Mailings Limited, London Eight companies of the trans-o-flex group 100 100 100...

  • Page 95
    ...largest private international mail logistics companies in the UK. The acquisition strengthens Deutsche Post's presence in the UK market and enables the Group to offer its UK customers a complete range of valueadded services in the international mailing business. Following the acquisition of DSL Bank...

  • Page 96
    ..., Dublin/Ireland January 2000 January 2000 January 2000 April 2000 April 2000 Remarks Merger Merger Merger Sale Sale Note 46 provides a list of the significant affiliated companies, joint ventures and associated companies. A complete list of Deutsche Post AG's ownership interests has been filed...

  • Page 97
    ...the purchase costs of the acquisition are set off against the prorated share capital of the relevant subsidiary. The assets and liabilities acquired are reflected in the consolidated balance sheet at their time value and at the date of acquisition in as much as they relate to Deutsche Post World Net...

  • Page 98
    ... and payables or provisions, respectively, are eliminated. Inter-group profit and losses not realized through sales to third parties are also eliminated. (6) Application of IAS and SIC interpretations Deutsche Postbank AG, which was reported under deferred income in the 1999 consolidated financial...

  • Page 99
    ... of the previous year's figures stated under note 6 as a result of the first-time application of new or revised standards, further restatements had to be made in accordance with IAS 22.71. sions amounting to â,¬ 8 million were set up for the logistics companies ASG, Nedlloyd and Danzas. These...

  • Page 100
    ... in the previous year, segment investments had amounted to â,¬ 1,227 million. A retrospecive consolidation of the Special Funds in Deutsche Postbank group would have increased income from operating activities of the FINANCIAL SERVICES division by â,¬ 324 million in 1999 (cf. note 7). Based on the...

  • Page 101
    ...marketable securities) including receivables from financial services. Acquired goodwill is allocated to the corporate division. Deutsche Post AG has combined its national and international activities on the distribution market in the EXPRESS corporate division. The international letter business and...

  • Page 102
    ... Interest income from credit and money market transactions Interest income from fixed income securities and bonds 4,240 3,108 1,427 712 2000 1999 7,348 Commission income Income from shares and marketable securities Income from insurance business Net income from financial operations Other income...

  • Page 103
    ...Commission to postal agencies Service provided by temporary staff Internally developed software Energy Off-period expenses Other expenses for purchased services 8,852 9,718 5,161 5,939 1,209 1,159 * Restatement of previous year's figures, more detailed information under note 7. The increase in...

  • Page 104
    ... 319,998 persons employed on an annual average, 270,806 employees worked in Germany. The staff of companies which were acquired during the fiscal year (in particular AEI group, the trans-o-flex companies, Herald International Mailings, Deutsche Post Global Mail Australia, Deutsche Post eBusiness) or...

  • Page 105
    ... 3 million to technical equipment and machinery. The increase in depreciation and amortization is primarily due to the extension of the consolidated group. The increase in public relations expenses is associated with the stock market flotation of Deutsche Post AG. Taxes other than taxes on income...

  • Page 106
    ... DHL International Limited Trans-o-flex Schnell-Lieferdienst GmbH Other Group companies 2000 7 -8 7 1999 7 -4 0 6 3 Expenses and income from Deutsche Postbank group's banking transactions are not included under "Other financial results". Interest income, interest from shares and securities...

  • Page 107
    ...-2 The tax rate applicable for German Group companies consists of the standard tax rate of 25% plus solidarity surcharge and an average trade tax rate. Foreign Group companies apply their individual income tax rate in their calculations of deferred tax items. The income tax rates applied by foreign...

  • Page 108
    ... year 1999 amounted to â,¬ 179 million, which meant a dividend per share of â,¬ 4.18. Notes to the Balance Sheet (22) Intangible assets In accordance with IAS 33 (Earnings per Share), basic earnings per share are determined by dividing Deutsche Post Group's profit by the average number of shares...

  • Page 109
    ...929 12 5 1,482 - 46 the course of first consolidation of the Danzas group, some intangible assets were reported in the schedule of fixed assets at book values rather than at gross values. The adjustments were made retrospectively at the time of first consolidation in " Changes in the consolidated...

  • Page 110
    ... with the acquisition and manufacture of property, plant and equipment is capitalized, unless it is deducted as input tax. Within the entire Deutsche Post Group, scheduled depreciation is generally recorded on a straight-line basis using the following useful lives: Buildings Technical equipment and...

  • Page 111
    ...", provided that Deutsche Post World Net rendered the advance services in connection with a pending transaction. Recorded as construction in progress is any property, plant and equipment, the production of which has already engendered internal or third party service costs and such services have not...

  • Page 112
    .... Starting from the beginning of fiscal year 1999, the financial assets developed as follows in fiscal year 2000: in â,¬ millions Shares in affiliated companies Investments in associates Other investments Loans to other investees Housing promotion loans Long-term investments Other loans...

  • Page 113
    ... balances Receivables from affiliated companies Payments on account Compensation claim pursuant to § 40 DMBilG Receivables from the Federal Post and Telecommunications Agency Recourse claims 169 120 Finished goods and work in progress are accounted for at cost, moving average prices or under the...

  • Page 114
    ...: The increase in receivables and securities from financial services reflects the acquisition of DSL Bank by Deutsche Postbank AG. Receivables due from banks and customers are stated at acquisition costs net of depreciation, if applicable, Premiums and discounts are recognized under the respective...

  • Page 115
    ... 25.23. Shares of the Special Purpose Funds are reported at fair values. In the event that values are permanently impaired, the respective values are written down. (28) Securities All Group securities which cannot be classified under financial assets or financial services securities are reported...

  • Page 116
    ...Post AG Deutsche Postbank AG Danzas group Other Group companies 127 145 42 6 1,952 137 172 5 2 Due after 5 years 320 316 320 1,818 316 2,268 (30) Issued capital Term of maturity for deferred tax assets on tax loss carr y forwards: in â,¬ millions Domestic loss carry forwards Corporation tax...

  • Page 117
    ...of the increase in the shares in DHL International. The percentage of shares traded on the capital market is around 31%. Within the framework of the Initial Public Offering, Deutsche Post AG employees were granted option warrants. The employee participation plan granted allotment of shares up to the...

  • Page 118
    ...accordance with the German Commercial Code, the dividend to Deutsche Post AG shareholders is based on the net profit for the year of Deutsche Post AG. The Board of Management of Deutsche Post AG proposes that the Deutsche Post AG's net profit for the year be used for the payment of a dividend in the...

  • Page 119
    ...and insurance institutions in the form of incidental wage costs. In accordance with the statutory provisions, Deutsche Post AG and Deutsche Postbank AG also pay contributions into a defined contribution plan, specifically to finance the pension claims of staff with "civil servant" status and retired...

  • Page 120
    ... on the following actuarial assumptions: in % Rate of interest Expected increase in wages and salaries (per staff group) Expected increase in retirement benefits (per staff group) Expected average fluctuation Expected return on assets (35) Tax provisions 2000 6.0 2.0 to 3.0 1.75 to 2.5 1.0 3.1 to...

  • Page 121
    Notes The provisions mainly relate to the following companies: in â,¬ millions Current tax Deferred tax provisions provisions 2000 1999 2000 1999 368 260 21 10 381 426 259 214 63 131 50 3 221 206 31 53 (36) Other provisions Deutsche Postbank group Deutsche Post AG Danzas group Other Group ...

  • Page 122
    ... provision for postage stamps covers unperformed services relating to the sale of postage stamps. Restructuring provisions relate almost exclusively to obligations toward employees resulting from the termination of their employment (Part-time employment program, transitional social benefits). These...

  • Page 123
    Notes Restructuring provisions include: in â,¬ millions Deutsche Post AG MAIL Retail outlets EXPRESS 294 109 50 453 Deutsche Postbank AG Danzas group Van Gend & Loos Other Group companies 145 112 11 6 274 377 137 62 576 173 101 0 0 274 counted at market interest rates which reflect both the risk ...

  • Page 124
    ... millions Deutsche Post AG Deutsche Post International Danzas group Other Group companies (38) Trade payables Trade payables also include liabilities from outstanding supplier invoices. 2000 1,246 745 226 196 2,413 Of reported borrowings, amounts owed to banks equaling â,¬ 0 million are secured...

  • Page 125
    Notes (39) Liabilities from financial services Liabilities from financial services are as follows: in â,¬ millions Amount s owed to banks Payable on demand With agreed maturity or notice period 391 14,460 14,851 Amount s owed to customers Savings deposits With agreed notice period of 3 months With...

  • Page 126
    ... balance sheet. Cash inflow from operating activities Liabilities to employees and corporate bodies Other free time not taken Derivat ives Liabilities relating to social security Debtors with credit balances Settlement agency agreement Liabilities from damages Miscellaneous other liabilities 2,626...

  • Page 127
    .... The sale and purchase price for the enterprises was settled in cash and cash equivalents. Cash inflow from financing activities Risk control The risk control unit of Deutsche Postbank AG performs its independent functions at Deutsche Postbank's headquarters on behalf of the entire Postbank group...

  • Page 128
    ...effects of extreme market movements on the Postbank portfolio. Interest rate risks The concentration of loan loss risks (credit risk concentration) results from business relationships with borrower groups which are characterized by a number of joint features and whose ability to repay debts depends...

  • Page 129
    ... rate transactions OTC products Interest rate swaps Forward rate agreements Interest rate option purchases Interest rate option sales Caps, floors Other 75,208 3,575 108 3,036 68 7,591 1,149 10 41 9 0 18 2,184 0 2 215 0 26 3,536 480 0 0 0 0 19 0 0 0 0 0 79 0 0 0 0 0 Stock exchange traded products...

  • Page 130
    ... of our derivative business, we are following the recommendation of the German association of public sector banks. The nominal values represent the gross volume of all purchases and sales combined. This value is a reference value for determining the mutually agreed settlement payments. The value...

  • Page 131
    ... be assessed in association with the fair values of derivatives (41.b) Risks and market values of the remaining Deutsche Post Group's financial instruments Risks • • • • • equivalents corresponds to the carr ying amount. Receivables due from banks and customers account for a fair value...

  • Page 132
    ...unexpected financial events (financing or investment risk) for Deutsche Post Group. Confirmed credit lines at sufficient amounts were available for the Group at the end of 2000 to this end. Currency risk and currency management Interest rate risk and interest rate management The interest rate risk...

  • Page 133
    Notes generate cost savings in comparison with alternative forms of financing. The interest rate hedging contracts include forward rate agreements (FRAs) and cross currency swaps. M arket values (fair values) The fair value of a primary financial instruments is the price obtainable on the market, ...

  • Page 134
    ... who accuse Deutsche Post AG of misusing its market-dominating position. On March 20, 2001 the European Commission completed the proceedings concerning the violation of rules of competition through below-cost-prices and inadmissible discount agreements in the mail order business. A monetary fine of...

  • Page 135
    ... Due after 5 years Deutsche Post World Net acquired a further 21.38 percent of the shares in DHL International, Bermuda at the beginning of 2001. Together with the shares held to date, Deutsche Post World Net now holds 46,382% of the shares in this international express mail service provider. At...

  • Page 136
    ... involved and own internal costs are borne by the parties to the agreement. The costs to be borne by Deutsche Post AG amount to â,¬ 121 million. In fiscal year 2000 all shares in DSL Bank AG were acquired. The former shareholder was the Federal Republic of Germany holding 99 % (cf. note 3). For more...

  • Page 137
    ... - LOGISTICS DANZAS Holding AG (Sub-group including the ASG group, Nedl loyd Logistics Unit and the AEI group) Switzerland 100.00 100.00 8,288 4,8422) FINANCIAL SERVICES Deutsche Postbank AG (including DSL Bank) Germany 99.994) 99.994) 7,985 2,8002) Other McPaper Aktiengesellschaft Deutsche Post...

  • Page 138
    ...- 70 Profit from operating activities (EBIT) 1,762 866 Profit (losses) from associates Profit from equity valuation Postbank group Other financial results 6 424 - 218 3 33 - 108 Financial results 212 - 72 Profit from ordinary activities 1,974 794 Income taxes - 455 226 Net profit for...

  • Page 139
    ... capital Reserves Net profit for the period* 1,113 1,376 1,512 1,094 445 1,015 4,001 M inority interest 15 2,554 20 Provisions Provisions for retirement benefits and similar obligations Tax provisions Other provisions* 6,192 559 2,771 6,134 669 2,932 9,522 Liabilities Borrowings* Trade payables...

  • Page 140
    ... 1,086 - 291 175 Dt. Post World Net (Postbank at Equity) 1999 795 - 259 878 0 95 Net profit before taxation Proceeds from the disposal of non-current assets Depreciation of non-current assets Non-cash income and expenses Interest income Operating profit before w orking capital changes/ cash flow...

  • Page 141
    ... financial statements of Deutsche Post World Net including Deutsche Postbank group in accordance with the equity method is in agreement with the International Accounting Standards (IAS) adopted and published by the International Accounting Standards Committee (IASC) which are to be applied...

  • Page 142
    ...the Board of Management Dr. Hans-Dieter Petram, MAIL Corporate Division Dr. Peter Kruse, EXPRESS Corporate Division - Euro Express Uwe Rolf Dörken, EXPRESS Corporate Division - Worldwide Express Peter Wagner, LOGISTICS Corporate Division Prof. Dr. Wulf von Schimmelmann, FINANCIAL SERVICES Corporate...

  • Page 143
    ...AG Chair • Tchibo Holding AG • Thyssen Krupp Materials & Services AG b) • C.V. International Post Corp. U.A. • Danzas Holding AG 1) 3) • DHL Worldwide Express B.V. • Deutsche Post Beteiligungen GmbH 1) • Deutsche Post eBusiness GmbH 1) Grundstücksgesellschaft mbH 1) (Mandate ended on...

  • Page 144
    ... • Bank J.Vontobel AG • Danzas AEI Inc.1) • Danzas AG1) • Danzas ASG AB1) • Danzas Ecuador S.A.1) • Danzas Holding AG1) • Danzas Management AG1) • Danzas S.A.1) • Danzas SpA1) • Through Transport Mutual Insurance Association Ltd • Through Transport Mutual Insurance Association...

  • Page 145
    Company Organs Additional supervisory board mandates held by members of the Supervisory Board Josef Hattig (Chairman of the Supervisory Board of Deutsche Post AG) Hero Brahms a) • Bremer Lagerhaus-GmbH (Chair of Supervisory Board) • ICON brand navigation group AG (Chair of Supervisory Board) ...

  • Page 146
    ... (Chair of Supervisory Board) b) • Verband der PSD-Banken (Chair of the Association Council) • Bundesanstalt für Post und Telekommunikation (Administrative Board) a) Membership in supervisory boards required by law b) Membership in comparable national and international supervisory bodies 138

  • Page 147
    Company Organs Members of the Supervisory Board of Deutsche Post AG Shareholders' representatives Josef Hattig (Chairman) Dr.-Ing. M anfred Lennings Senator for Commerce and Ports for the Free Hanseatic City of Bremen Willem G. van Agtmael Management consultant Dr. M anfred Overhaus Managing ...

  • Page 148
    ... of Deutsche Post AG's Corporate Executive Representation Committee Benita Unger Member of Magdeburg District Board of German Postal Union Henry Hillmann Member of Works Council, Deutsche Post AG, Mail Branch, Central Berlin Stefanie Weckesser Member of the Managing Board of Deutsche Post AG...

  • Page 149
    Company Organs Josef Hattig Chairman of the Supervisory Board Born 1931. Josef Hattig trained as a commercial clerk before embarking on a degree course in law and the state sciences. Following his second state law examination, he was a junior judicial officer (Gerichtsassessor) and management ...

  • Page 150
    ... the purchase of additional shares in DHL International Limited - with the transfer of these shares in 2001 Deutsche Post will own a majority holding of 50.6% and the organizational integration of DHL International into the Group. Furthermore, the Supervisory Board discussed and approved a number of...

  • Page 151
    ...net profit. During the 2000 financial year, the Board of Management underwent the following changes: Dr.-Ing. Günter W.Tumm, Board Member Domestic PARCELS EXPRESS, Wolfhard Bender, Board Member MAIL COMMUNICATION Production, Legal Affairs, and Horst Kissel, Board Member Personnel, left the Board of...

  • Page 152
    Imprint: Published by: Deutsche Post AG, Headquarters Corporate Departments: Corporate Communications, Corporate Finance/Investor Relations 53250 Bonn ...86368 Gersthofen Mat. No. 915-317- 000 Translation: Deutsche Post Foreign Language Service et al. This Annual Report is also published in German.