DHL 2012 Annual Report Download - page 35
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Please find page 35 of the 2012 DHL annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Group management
after asset charge increases
Since , Deutsche Post DHL has used aer asset charge as a key
performance indicator. is calculated by subtracting a cost of capital component, or
asset charge, from .
By including the asset charge in our business decisions, we encourage all divisions
to use resources eciently and to organise our operating business to increase value sus-
tainably whilst generating cash ow. In the reporting year, served as a key perform-
ance indicator in addition to 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 . e asset charge calculation is performed each month so that we
can also take uctuations in the net asset base into account during the year.
All of our divisions use a standard calculation for the net asset base. e key com-
ponents 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.
e Group’s is dened as the weighted average net cost of interest-bearing
liabilities and equity, taking into account company-specic risk factors in a beta factor
in accordance with the Capital Asset Pricing Model.
We apply a standard of . across the divisions and this also represents a
minimum target for projects and investments within the Group. e is generally
adjusted to adhere to the current situation on the nancial markets. However, the goal
is not to match every short-term change but to reect long-term trends. e is
reviewed once annually. e used reects company-specic risks and the net
cost of interest-bearing liabilities and equity in the current market environment. As in
previous years, we did not change the in order to prevent our internal resource
allocation from being inuenced by short-term, minor uctuations in capital market
interest rates. A constant also ensures that is comparable with previous years.
In our reporting for the prior years, the net asset base was broken down into current
and non-current assets and liabilities. In the year under review, the individual compo-
nents of the net asset base were regrouped to increase transparency for the drivers of
asset charges in the context of internal and external reporting. e denition of the
net asset base, the methods for calculating the asset charge and have not changed.
improved from , million to , million in , primarily due to the
divisions’ rising protability. e asset charge increased by . , which was pre-
dominantly attributable to our high capital expenditures throughout the divisions.
. calculation
Asset charge
= Net asset base
× Weighted average cost of capital
after asset charge
. Net asset base calculation
Operating assets
• Intangible assets including goodwill
• Property, plant and equipment
• Trade receivables, other operating
assets
Operating liabilities
• Operating provisions
• Trade payables, other operating
liabilities
Net asset base
Deutsche Post DHL Annual Report
Group Management Report
Business and Environment
Group management
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