DHL 2012 Annual Report Download - page 45
Download and view the complete annual report
Please find page 45 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.e “ to debt” dynamic performance metric declined versus the prior year, since
even the improvement in funds from operations was not sucient to oset the increase
in debt.
Funds from operations increased by a total of million to , million in
the year under review. Even though operating cash ow before changes in working
capital decreased signicantly, the decline was attributable to the one-time increase in
the plan assets of German pension plans (, million) and portions of the additional
payment ( million). Since the related eects are non-recurring, they were
recorded under non-recurring income / expenses, which also includes operating restruc-
turing payments ( million) and the interest eects of the additional payment
( million).
Although business performance was positive in the reporting year, debt rose by
, million to , million year-on-year. e primary reasons for the increase were
the lower discount rates and the related increase in the present value of pension obliga-
tions, the additional payment ( million) and the payment made in connection
with the state aid proceedings ( million). Whereas the last two items reduced sur-
plus cash and near-cash investments, the lower discount rates for pension obligations
increased the “adjustment for pensions” considerably. However, due to the one-time,
debt-nanced increase in plan assets in the amount of , million, this item declined
by a total of , million to , million. More information on the financial liabilities
reported is contained in the Notes.
Cash and liquidity managed centrally
e cash and liquidity of our globally active subsidiaries is managed centrally by
Corporate Treasury. Approximately 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 sub sidiaries’
intra- group revenue is also pooled and managed by our in-house bank in order to
avoid external bank charges and margins through intercompany clearing. Payment
trans actions are executed in accordance with uniform guidelines using standardised
processes and systems.
Limiting market risk
e Group uses both primary and derivative 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 uctuations to our customers and, to some extent,
use commodity swaps to manage the remaining risk. e parameters, responsibilities
and controls governing the use of derivatives are laid down in internal guidelines.
Flexible and stable financing
e Group covers its long-term nancing requirements by maintaining a balanced
ratio of equity to liabilities. is ensures our nancial stability as well as providing
adequate exibility. Our most important source of funds is net cash from operating
activities.
Note
Deutsche Post DHL Annual Report
Group Management Report
Economic Position
Financial position
41