DHL 2014 Annual Report Download

Download and view the complete annual report

Please find the complete 2014 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.

Page out of 234

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234

2014 Annual Report
WHEN YOU
THINK OF
LOGISTICS

Table of contents

  • Page 1
    2014 annual report WHEN YOU THINK OF LOGISTICS

  • Page 2

  • Page 3
    WE WANT YOU TO THINK OF US. 2 - 11 THINK DEUTSCHE POST DHL

  • Page 4

  • Page 5
    ...85 86 97 GROUP MANAGEMENT REPORT 19 - 102 General Information Report on Economic Position Deutsche Post Shares Non-Financial Figures Post-Balance-Sheet Date Events Opportunities and Risks Expected Developments TO OUR SHAREHOLDERS 12 - 15 "Ten reasons why I'm proud of Deutsche Post DHL Group." Dr...

  • Page 6
    ... look forward to receiving their new purchases quickly. That's why DHL delivers orders six days a week. Once collected from the retailer, DHL processes the items directly. Parcels sent via DHL generally arrive at your door on the very next workday. Deutsche Post DHL Group - 2014 Annual Report

  • Page 7
    ...the status of your item at any time, and with our parcel notification and preferred-day services you can receive free notification of the delivery date via text message or e-mail and select the day on which you wish to receive your parcel. THINK ONLINE Deutsche Post DHL Group - 2014 Annual Report

  • Page 8
    ... can send and receive parcels day and night at 2,750 Packstations in over 1,600 cities and communities - that's more than 280,000 parcel compartments. The first Packstations are also already being installed in other European countries. THINK FLEXIBLE Deutsche Post DHL Group - 2014 Annual Report

  • Page 9
    ....com allows you to shop conveniently online and have fresh groceries delivered to your door. At no extra charge, you can choose to have DHL's courier service deliver your order right away or in selectable time slots in the evening on the same day. Deutsche Post DHL Group - 2014 Annual Report

  • Page 10
    ...-based Cirque du Soleil, globally known for its spectacular and breathtaking live performances. DHL provides event logistics support for the worldtouring live shows, assisting with transport between event locations as well as many other requirements. Deutsche Post DHL Group - 2014 Annual Report

  • Page 11
    ...for sustainable technologies, teamwork and innovation. DHL not only transports the electric racing cars, its environmentally friendly logistics solutions also take care of all the associated equipment. The series is made up of nine races over ten months. Deutsche Post DHL Group - 2014 Annual Report

  • Page 12
    ...LOVE THE COUNTRY Deutsche Post DHL Group operates in more than 220 countries and territories, and more than 480,000 employees work for us around the world. This global network offers you customised logistics solutions no matter where you are in the world. Deutsche Post DHL Group - 2014 Annual Report

  • Page 13
    9 OR CALL A MEGACITY HOME Growing cities and emerging markets require new logistics solutions. DHL is investing constantly in the network, adding, for instance, new facilities in the Middle East and North Africa region. Deutsche Post DHL Group - 2014 Annual Report

  • Page 14
    ... NO MATTER HOW URGENT IT MIGHT BE DHL is looking into ways to deliver urgent items quickly and reliably in inner cities. In New York, Los Angeles and London, we offer a helicopter service to deliver time-critical documents, primarily for bank customers. Deutsche Post DHL Group - 2014 Annual Report

  • Page 15
    ..., DHL launched a globally unique test project. The DHL Parcelcopter is the first unmanned aircraft to take flight in line operations, delivering parcels from the mainland to a chemist on the island as part of an express and emergency supply service. Deutsche Post DHL Group - 2014 Annual Report

  • Page 16
    12 DR FRANK APPEL Chief Executive Officer Deutsche Post DHL Group - 2014 Annual Report

  • Page 17
    ... staff and an attractive investment for shareholders. We aim to build on these successes and continue to grow. Increasing digitalisation, booming e-commerce and momentum in the emerging countries number amongst the most important drivers of our business. Deutsche Post DHL Group - 2014 Annual Report

  • Page 18
    ...cash flow all increased. The German parcel business and the international express business continued to generate dynamic growth. Earnings in the Supply Chain division likewise benefited from a high level of new business and continuing restructuring 7 8 Deutsche Post DHL Group - 2014 Annual Report

  • Page 19
    ... a dividend of â,¬0.85 per share for 2014. Forecasts for 2015 indicate that the global economy will continue to experience regional variations and only demonstrate moderate growth on the whole. We expect consolidated EBIT to reach â,¬3.05 billion to â,¬3.20 billion in financial year 2015. The Post...

  • Page 20
    ... March 2011 Appointed until March 2019 Left the company during the reporting year: BRUCE EDWARDS Supply Chain Born in 1955 Member from March 2008 until 10 March 2014 ANGELA TITZRATH Human Resources Born in 1966 Member from May 2012 until 1 July 2014 Deutsche Post DHL Group - 2014 Annual Report

  • Page 21
    Board of Management 17 Deutsche Post DHL Group - 2014 Annual Report

  • Page 22
    ... E-POST With E-POST, communication processes become digital, easier, faster and more cost efficient - personally and professionally. Together E-POSTBRIEF, digitisation solutions, end-to-end encryption, hybrid delivery and value-added services optimally cover the requirements of all customer groups.

  • Page 23
    ... Intermodal transport Supply Chain BUSINESS UNITS AND PRODUCTS Supply Chain Warehousing Distribution Managed transport Value-added services Supply Chain management and consulting Williams Lea Marketing Solutions Office Document Solutions Customer Correspondence Management REGIONS Europe Americas...

  • Page 24
    .... DIVIDEND PER SHARE 2014 â,¬0.85 1 2013 â,¬0.80 1 RETURN ON SALES 2014 5.2% (Previous year: 5.2%) 2013 adjusted 1 Proposal. 2014 +/- % Q 4 2013 adjusted 1 Q 4 2014 +/- % Revenue Profit from operating activities (EBIT) Return on sales 2 EBIT after asset charge (EAC) Consolidated net profit...

  • Page 25
    19 - 102 a GrOUP MaNaGEMENT rEPOrT A GROUP MANAGEMENT REPORT

  • Page 26
    ...operations Financial position Net assets Business performance in the divisions DEUTSCHE POST SHARES NON-FINANCIAL FIGURES Employees Health and safety Corporate responsibility Procurement Customers and quality Brands POST-BALANCE-SHEET DATE EVENTS OPPORTUNITIES AND RISKS Overall Board of Management...

  • Page 27
    ... and DHL corporate brands represent a one-of-a-kind portfolio of logistics (DHL) and communications (Deutsche Post) services. We provide our customers with both easy-to-use standardised products as well as innovative and tailored solutions ranging from dialogue marketing to industrial supply chains...

  • Page 28
    ... Operations, Legal Services etc. • Investor Relations • Corporate Audit & Security • Taxes Human resources Board member • Melanie Kreis Functions • Corporate HR Germany • Corporate HR Standards & Programs • Corporate HR International • HR Post - eCommerce Parcel • HR Express...

  • Page 29
    Group Management Report - GENEraL INFOrMaTION - Business model and organisation 23 a presence that spans the globe Deutsche Post DHL Group operates around the world. The map shows our most important locations. Table A.02 provides an overview of market volumes in key regions. Our market shares are...

  • Page 30
    ... E-POST product provides a secure, confidential and reliable platform for electronic communication. It allows companies, public authorities and private individuals to send secure communications whilst reducing processing costs. In the reporting year, the domestic market for business communications...

  • Page 31
    ... industry. We have expanded the existing shipping routes in and out of the most important international markets, for example, from Germany, the United Kingdom and the United States to China. 43.0 % DHL 57.0 % Competition Source: company estimate. Deutsche Post DHL Group - 2014 Annual Report

  • Page 32
    ...(previous year: 33 %), we were well ahead of the competition in 2013. In financial year 2014, the international express business continued to benefit from e-commerce and the growing importance of small and medium-sized enterprises in international trade. Deutsche Post DHL Group - 2014 Annual Report

  • Page 33
    ... provider in the region with additional investments in our main hubs and locations. Supporting growth in asia 41 % DHL 1 2 Includes the TDI express product. Country base: AT, DE, DK, ES, FR, IT, nL, RU, TR, UK. Source: Market Intelligence 2014, annual reports and desk research. A.08 americas...

  • Page 34
    ... countries, excluding bulk and specialities transport. 2012 and 2013 figures have been adjusted with respect to the MI study 2013 using current price information. Source: MI Study DHL 2014 (based on Eurostat, financial publications, IHS Global Insight). Deutsche Post DHL Group - 2014 Annual Report

  • Page 35
    ... to make significant investments into infrastructure and talent in these four key markets, strengthening local capabilities for growth. 8 % DHL Source: Transport Intelligence; figures estimated for Rhenus AG and UPS; exchange rates: as at July 2014. Deutsche Post DHL Group - 2014 Annual Report

  • Page 36
    ... in customer satisfaction rates, the results of our annual Employee Opinion Survey as well as the development of key financial figures. Therefore, we feel it is the right time to set the course for future growth and set the stage for further long-term success. Deutsche Post DHL Group - 2014 Annual...

  • Page 37
    ... geographically and in terms of our portfolios' performance. Our aim is to be internationally renowned not only as a highly customer-centric company but also as quality leaders. When people think logistics, we want them to think Deutsche Post DHL Group. Deutsche Post DHL Group - 2014 Annual Report

  • Page 38
    ... Supply Chain Focus.Connect.Grow. Post - eCommerce - Parcel division In line with Strategy 2020, we see four main drivers for the future success of our business. Designing a market-based cost structure: To achieve this goal, we are adapting our networks to changing market conditions and shipment...

  • Page 39
    ...number of new markets, we intend to go beyond delivery services to offer domestic value-added e-commerce services. EXPRESS division In line with our strategic programme "Focus", we have expanded our business, increased our market share and strengthened our margins in recent years. In the reporting...

  • Page 40
    ... to better manage their inventory flows by dispatching shipments in smaller consignments. In the overland transport business, our daily Eurapid service provides fast, reliable and day-definite deliveries to Europe's major markets. The number of participating terminals doubled in the reporting year...

  • Page 41
    ... our operational performance. The Connect pillar is about connecting our people and processes to achieve efficiency gains on a global scale. A lean management structure and the use of shared service centres will improve our cost structure and establish industry-wide best-in-class functions. To...

  • Page 42
    ...cash is available to the company for dividend payments or the repayment of debt. Given its higher relevance for the Group's management and other stakeholders, we shall use the Group FCF instead of OCF as financial Performance indicator from 2015 onwards. Deutsche Post DHL Group - 2014 Annual Report

  • Page 43
    Group Management Report - GENEraL INFOrMaTION - Group management - Disclosures required by takeover law 37 NON-FINANCIAL PERFORMANCE INDICATOR Employee Opinion Survey result as a management indicator Our annual worldwide Employee Opinion Survey shows us how we are perceived as a group from the ...

  • Page 44
    ... by issuing a convertible bond in the aggregate principal amount of â,¬1 billion. No shares were issued to the bond holders in financial year 2014. As at 31 December 2014, the share capital was still increased on a contingent basis by up to â,¬75 million Deutsche Post DHL Group - 2014 Annual Report

  • Page 45
    ... as certain outperformance targets based on the percentage change of the STOXX Europe 600 Index are met. The share capital is increased on a contingent basis by up to â,¬40 million in order to grant shares in the company to the executives entitled to subscription rights, in accordance with the...

  • Page 46
    ... of banks. If a change of control within the meaning of the contract 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 request repayment. Deutsche Post DHL Group - 2014 Annual Report

  • Page 47
    ... was obtained in the reporting year and which, in case of a change of control, grants the supplier the right to bring the business relationship to a close without notice. In the event of a change in control, any member of the Board of Management is entitled to resign their office for good cause...

  • Page 48
    ... 60 % of the net profit as dividend. Employee Opinion Survey 4 Increase approval rating of key performance indicator Active Leadership to 71 %. results 2014 EBIT • Group: â,¬2.97 billion. • PeP division: â,¬1.30 billion. • DHL divisions: â,¬2.02 billion. • Corporate Center /Other: â,¬-0.35...

  • Page 49
    ... commodities prices. Total global economic output grew by 3.3 % in 2014 after adjustment for purchasing power, as in the prior year. Global trade saw a similar increase (IMF: 3.1 %; OECD: 3.0 %). A.21 Global economy: growth indicators in 2014 % China Japan USA Euro zone Germany Data estimated in...

  • Page 50
    ...3 % on an annual average. Private consumption increased by 1.1 % (previous year: 0.8 %). The labour market developed positively, with the average annual number of employed workers increasing to 42.7 million (previous year: 42.3 million). Crude oil prices fall sharply At the end of 2014, a barrel of...

  • Page 51
    ... 2014. Trade volumes (transported quantity in tonnes) thus increased by 2.4 % in the reporting year. Exports from North America and the Asia Pacific region rose at a greater rate than in other regions. A.23 Trade volumes: compound annual growth rate 2013 to 2014 % Imports Exports Asia Pacific Europe...

  • Page 52
    ... market position, a large number of our services are subject to sector-specific regulation under the Postgesetz (PostG - German Postal Act). Further information on this issue and legal risk is contained in the Notes to the consolidated financial statements. Deutsche Post DHL Group - 2014 Annual...

  • Page 53
    ...of operations in financial year 2014. Results of operations A.25 Selected indicators for results of operations 2013 adjusted 1 2014 Revenue Profit from operating activities (EBIT) Return on sales 2 EBIT after asset charge (EAC) Consolidated net profit for the period 3 Earnings per share 4 Dividend...

  • Page 54
    ... factors. Higher transportation costs Materials expense rose by â,¬1,004 million to â,¬32,042 million, especially due to higher transportation costs and the increase in goods purchased and held for resale for the business with the UK National Health Service in the Supply Chain division. Staff costs...

  • Page 55
    ... rule. At the Annual General Meeting on 27 May 2015, the Board of Management and the Supervisory Board will therefore propose a dividend of â,¬0.85 per share for financial year 2014 (previous year: â,¬0.80) to shareholders. The distribution ratio based on the consolidated net profit for the period...

  • Page 56
    ... to the sector. We therefore monitor the ratio of our operating cash flow to our adjusted debt particularly closely. Adjusted debt refers to the Group's net debt, allowing for unfunded pension obligations and liabilities under operating leases. Deutsche Post DHL Group - 2014 Annual Report

  • Page 57
    ...-recurring income or expenses, as shown in the following calculation. In addition to financial liabilities and surplus cash and near-cash investments, the figure for debt also includes operating lease liabilities as well as unfunded pension liabilities. Deutsche Post DHL Group - 2014 Annual Report

  • Page 58
    ... using standardised processes and IT systems. Many Group companies pool their external payment transactions in the Group's Payment Factory, which executes payments in the name of the respective companies via Deutsche Post AG's central bank accounts. Deutsche Post DHL Group - 2014 Annual Report

  • Page 59
    ... our financial stability and also provides adequate flexibility. Our most important source of funds is net cash from operating activities. We also have a syndicated credit facility in a total volume of â,¬2 billion that guarantees us favourable market conditions and acts as a secure, long-term...

  • Page 60
    ... in the operating environment and a further increase in profitability for Deutsche Post DHL Group. Our credit quality as rated by Fitch Ratings has not changed from the rating of "BBB+" with a stable outlook. Deutsche Post DHL Group remains well positioned in the transport and logistics sector with...

  • Page 61
    ... (â,¬100 million), IT equipment (â,¬79 million), operating and office equipment (â,¬76 million) as well as aircraft (â,¬35 million). In regional terms, we invested mainly in Europe and the Americas as well as in Asia. 2013 Prior-period amount adjusted. Deutsche Post DHL Group - 2014 Annual Report

  • Page 62
    ... project. We also modernised and fitted out warehouses and office buildings across all regions. A total of â,¬25 million was invested in the Freight business unit, mainly for real estate, operational and technical equipment and machinery and software. Deutsche Post DHL Group - 2014 Annual Report

  • Page 63
    ..., Retail and Automotive sectors. In Europe, the majority of capital expenditure was used for customer projects in the UK Consumer sector and the Retail sector in Germany. Investments were also made to renew the fleet in the UK and in Africa. In the Williams Lea business unit, the main focus of our...

  • Page 64
    ... to â,¬85 million in the reporting year, a significant increase on the prioryear figure of â,¬23 million. As a result of the aforementioned items, cash and cash equivalents declined from â,¬3,414 million as at 31 December 2013 to â,¬2,978 million. Deutsche Post DHL Group - 2014 Annual Report

  • Page 65
    ... indicators for net assets 31 Dec. 2013 adjusted 1 31 Dec. 2014 Equity ratio Net debt Net interest cover Net gearing FFO to debt 2 1 2 % â,¬m % % Financial position, page 52. 28.3 1,499 25.8 13.0 34.4 25.9 1,499 20.7 13.5 27.7 Note 4. Calculation Consolidated total assets increased The Group...

  • Page 66
    ... derivatives 2 Financial assets Net debt 1 2 31 Dec. 2013 adjusted 1 31 Dec. 2014 4,599 1,297 5,896 3,414 821 55 107 4,397 1,499 4,655 425 5,080 2,978 351 60 192 3,581 1,499 Note 4. Reported in non-current financial liabilities in the balance sheet. Deutsche Post DHL Group - 2014 Annual Report

  • Page 67
    Group Management Report - rEPOrT ON ECONOMIC POSITION - Net assets - Business performance in the divisions 61 Business performance in the divisions OVERVIEW A.46 Key figures by operating division â,¬m 2013 adjusted 2014 +/- % Q 4 2013 adjusted Q 4 2014 +/- % Post - eCommerce - Parcel Revenue of ...

  • Page 68
    62 POST - ECOMMERCE - PARCEL DIVISION revenue increases by 2.6 % In the reporting year, with 0.3 additional working days in Germany, revenue in the division was â,¬15,686 million, 2.6 % above the prior-year figure of â,¬15,291 million. Operations in both business units performed well, with our ...

  • Page 69
    ...consolidated this business into the Post - eCommerce - Parcel division, revenue and sales have increased considerably compared with the prior year. Our worldwide e-commerce activities also continue to perform well. Revenue increased in the reporting year due to solid growth in the Americas and India...

  • Page 70
    ...the domestic express business in Romania in the first quarter of 2013, revenue in the reporting year increased by 7.3 %. In the fourth quarter of 2014, revenue climbed year-on-year by 10.0 %. In the Time Definite International (TDI) product line, both per-day shipment volumes and daily revenues rose...

  • Page 71
    ... climbed by 11.5 % to â,¬348 million, which improved return on sales from 10.1 % to 10.2 %. As a result of the improved operating profit, operating cash flow increased in the reporting year by 22.5 % to â,¬1,689 million (previous year: â,¬1,379 million). Deutsche Post DHL Group - 2014 Annual Report

  • Page 72
    ... year. In the reporting year, the share of revenue related to industrial project business and reported under Other was 34.7 % and therefore down year-on-year (previous year: 37.1 %). Gross profit therefore declined by 10.8 % compared with the prior-year period. Deutsche Post DHL Group - 2014 Annual...

  • Page 73
    ...2014, EBIT fell year-onyear, from â,¬138 million to â,¬71 million. Moreover, net working capital in the reporting year worsened due to increased outstanding receivables, leading to an operating cash flow of â,¬181 million (previous year: â,¬641 million). Deutsche Post DHL Group - 2014 Annual Report

  • Page 74
    ... 20 % Life Sciences & Healthcare 24 % Retail Positive revenue performance A.54 SUPPLY CHAIN: revenue by region, 2014 Total revenue: â,¬14,737 million 14 % Asia Pacific / Middle East/Africa 26 % Americas 60 % Europe/Other / Consolidation Revenue in the division increased in the reporting year by...

  • Page 75
    ...reporting year, the Supply Chain business unit concluded additional contracts worth around â,¬1,220 million in annualised revenue with both new and existing customers in the reporting year. The Consumer, Retail, Automotive, Life Sciences & Healthcare and Technology sectors accounted for the majority...

  • Page 76
    ...-on-year. A.55 Deutsche Post shares: multi-year review 2008 2009 2010 2011 2012 2013 2014 Year-end closing price High Low Number of shares Market capitalisation as at 31 December Average trading volume per day Annual performance including dividends Annual performance excluding dividends Beta factor...

  • Page 77
    ..., Deutsche Post shares closed 2014 with an overall gain. The shares recorded their greatest price increase at the start of the year after publication of the figures for 2013. On 2 April, the shares benefited from the positive response to presentation of our Strategy 2020 to reach a new all-time high...

  • Page 78
    ... % of all issued shares (previous year: 30.5 %). recognition for investor relations work As at 31 December 2014. A.59 Shareholder structure by region 1 13.7 % USA 16.3 % UK 24.8 % Other 45.2 % Germany 1 As at 31 December 2014. We held a total of 474 individual and group meetings with more than...

  • Page 79
    Group Management Report - DEUTSCHE POST SHarES - NON-FINaNCIaL FIGUrES - Employees 73 NON-FINANCIAL FIGURES Deutsche Post DHL Group not only wants to be an attractive investment for shareholders, it also wants to become the employer of choice for employees and the provider of choice for customers....

  • Page 80
    ...Number of employees 2013 adjusted 2014 +/- % at year-end Headcount 1 Full-time equivalents 2 of which Post - eCommerce - Parcel Express Global Forwarding, Freight Supply Chain Corporate Center/Other of which Germany Europe (excluding Germany) Americas Asia Pacific Other regions average for the year...

  • Page 81
    ...we provide defined benefit or defined contribution retirement plans in many countries. In order to ensure a fair and balanced compensation structure within our company, we have introduced systems to rate positions in a number of areas. The rating is based upon job category and responsibilities - and...

  • Page 82
    ... junior employees an apprenticeship or study opportunity; in 2015, we will increase this offer to 2,375. Diversity as a success factor Number of apprentices, annual average: 5,089. A.65 Gender distribution in management 1, 2014 19.3 % Women Diversity is not only integral to our corporate values...

  • Page 83
    Group Management Report - NON-FINaNCIaL FIGUrES - Employees - Health and safety 77 The average annual employment rate of people with disabilities was 9.1 % at Deutsche Post AG in 2014, again well above the national average in the German private sector (4.1 % in 2012, source: Bundesagentur für ...

  • Page 84
    ... Citizenship-related investments in accordance with the LBG model for the first time and are thus fulfilling the assessment base for corporate community investment. Our Group-wide environmental management is based upon the value proposition of shared value. With measures to increase CO 2 efficiency...

  • Page 85
    Group Management Report - NON-FINaNCIaL FIGUrES - Corporate responsibility 79 A.71 Fuel and energy consumption 2013 adjusted 2014 Consumption by fleet Air transport (jet fuel) Road transport (petrol, biodiesel, diesel, bio-ethanol, LPG) Road transport (biogas, CnG) Energy for buildings and ...

  • Page 86
    ... closely with the four procurement regions. All functions report to the head of Corporate Procurement. Our purchasing operations are pooled in regional centres at six locations. In Asia, we outsourced the catalogue-based ordering system to an external provider. Deutsche Post DHL Group - 2014 Annual...

  • Page 87
    ... transit times within Germany: according to surveys conducted by Quotas, a quality research institute, 94 % of the letters posted during our daily opening hours or before final collection are delivered to their recipients the next day. This places us far Deutsche Post DHL Group - 2014 Annual Report

  • Page 88
    ...have also increased our use of renewable energies. Service quality translates into competitive advantage in the express business We want to offer our customers the best possible service quality all around the world and thus place high demands on our products, processes, infrastructure and employees...

  • Page 89
    ... weekday and co-ordinate the services of various DHL business units in multiple countries. Upon request, shipment information can even be updated directly in the customer's systems. We use quality control centres to track shipments worldwide and adjust our processes as required. Should unforeseen...

  • Page 90
    ... the most added value. We use globally tested processes to offer our customers comparable solutions and uniformly high service standards. In order to measure and monitor the quality of our service, we have defined a number of key performance indicators (KPI s) for the division. These include safety...

  • Page 91
    ... club. POST-BALANCE-SHEET DATE EVENTS DHL Delivery GmbH creates new jobs In order to secure the increased demand for labour as a result of continued sustained growth in the parcel business, Deutsche Post DHL Group has founded numerous regional companies under the umbrella of DHL Delivery GmbH. The...

  • Page 92
    ... outlook is moreover reflected in the Group's credit ratings. Opportunity and risk management processes Uniform reporting standards for opportunity and risk management As an internationally operating logistics company, we are faced with numerous changes. Our aim is to identify the resulting...

  • Page 93
    .... After being approved by the department head, all results are passed on to the next level in the hierarchy. The last step is complete when Corporate Controlling reports to the Group's Board of Management on significant opportunities and risks as well as Deutsche Post DHL Group - 2014 Annual Report

  • Page 94
    ..., manual checks are carried out regularly at a decentralised level by those responsible locally (by a chief financial officer, for example) and at a central level by Corporate Accounting & Controlling, Taxes and Corporate Finance at the Corporate Center. Deutsche Post DHL Group - 2014 Annual Report

  • Page 95
    ... accounting control system and risk management structures, Corporate Internal Audit is an essential component of the Group's controlling and monitoring system. Using risk-based auditing procedures, Corporate Internal Audit regularly examines the processes related to financial reporting and reports...

  • Page 96
    ...the trustee on 2 January 2013, 2 January 2014 and 2 January 2015, respectively. The payments made were reported in the balance sheet under non-current assets; the earnings position remained unaffected. The European Commission has not expressed its final acceptance of the calculation of the state aid...

  • Page 97
    ... the productivity growth rate specified. On 15 October 2014, the Bundesnetzagentur approved a 1.0 % increase in the average price of all price-capped products. On 8 June 2013, the Bundesnetzagentur initiated market abuse proceedings against Deutsche Post InHaus Services GmbH, citing discriminatory...

  • Page 98
    ... as point in time, which may mitigate the total effect. Therefore, we consider these risks to be medium at best. Moreover, we have taken measures in recent years to make costs more flexible and to allow us to respond quickly to a change in market demand. Deutsche Post DHL Group - 2014 Annual Report

  • Page 99
    ...credit line of â,¬2 billion. Therefore, the Group's liquidity is sound in the short and medium term. Moreover, the Group enjoys open access to the capital markets on account of its good ratings within the industry, and is well positioned to secure long-term capital requirements. The Group's net debt...

  • Page 100
    ... efficiency and be supplied with information on their CO2 emissions, which we regard as a positive trend. Such an increase in environmental awareness presents new business potential: with our mail, parcel and express products as well as air and ocean freight transport, we not only lead our industry...

  • Page 101
    ..., IT Audit, Data Protection and Corporate Security monitor and assess IT risk on an on-going basis. For our processes to run smoothly at all times, the essential IT systems must be constantly available. We ensure this by designing our systems to Deutsche Post DHL Group - 2014 Annual Report

  • Page 102
    ...risks arising from human resources Employees, page 75 Employees, page 75 Health and safety, page 77 As a mail and logistics services group, it is particularly important that we have qualified and motivated employees in order to achieve long-term success. However, demographic change could lead to...

  • Page 103
    ... emerging economies that exhibit strong structural growth are the main factors we see as supporting the long-term performance of our business. The Board of Management expects consolidated EBIT to reach â,¬3.05 billion to â,¬3.20 billion in financial year 2015. The Post - eCommerce - Parcel division...

  • Page 104
    ... Central and Eastern Europe CIS countries Emerging markets in Asia Middle East and North Africa Latin America and the Caribbean Sub-Saharan Africa Source: International Monetary Fund (IMF) World Economic Outlook, Update January 2015. Growth rates calculated on the basis of purchasing power parity...

  • Page 105
    ..., crossmedia campaigns. We intend to consolidate our position in the market for paper-based advertising. Furthermore, we want to tap into new fields by developing new technologies for online marketing and cross-media campaigns. Glossary, page 218 Deutsche Post DHL Group - 2014 Annual Report

  • Page 106
    ...time, demand is likely to remain stable or rise slightly. Should the moderate growth observed in the global and European economies in the reporting year continue in 2015, the European overland transport market is likely to see a positive trend similar to that of 2014. Outlook for Supply Chain market...

  • Page 107
    ...of net profits as dividends as a general rule. At the Annual General Meeting on 27 May 2015, we intend to propose to the shareholders that a dividend per share of â,¬0.85 be paid for financial year 2014 (previous year: â,¬0.80). Expected financial position No change in the Group's credit rating In...

  • Page 108
    ...matching performance indicator. Our goal therefore remains to consider CEX as a non-financial indicator relevant for internal management in the Group. This Annual Report contains forward-looking statements that relate to the business, financial performance and results of operations of Deutsche Post...

  • Page 109
    103 - 130 B B COrPOraTE GOVErNaNCE CORPORATE GOVERNANCE

  • Page 110
    ... 110 110 110 111 117 CORPORATE GOVERNANCE REPORT OF THE SUPERVISORY BOARD SUPERVISORY BOARD Members of the Supervisory Board Committees of the Supervisory Board MANDATES Mandates held by the Board of Management Mandates held by the Supervisory Board CORPORATE GOVERNANCE REPORT Remuneration report

  • Page 111
    Corporate Governance - rEPOrT OF THE SUPErVISOry BOarD 105 REPORT OF THE SUPERVISORY BOARD WULF VON SCHIMMELMANN Chairman DEAR SHAREHOLDERS, In financial year 2014, Deutsche Post DHL Group continued to perform well as an attractive investment and the provider and employer of choice in the Group...

  • Page 112
    ... net retained profit for financial year 2013. We also approved a share capital increase in order to finance a share buy-back to settle share-based payments due to executives in 2014. The financial statements meeting approved the Supervisory Board's proposed resolutions for the Annual General Meeting...

  • Page 113
    ... strategy for pension assets. On 3 December 2014, the Finance and Audit Committee meeting concentrated on the Group business plan for 2015 and recommended that the Supervisory Board approve the plan. The Committee discussed the Group's performance and the internal control and risk management system...

  • Page 114
    ... Management and all employees for their genuine commitment and all their hard work in a challenging economic climate. You have all made an important contribution to the company's success. Bonn, 10 March 2015 The Supervisory Board Wulf von Schimmelmann Chairman Deutsche Post DHL Group - 2014 Annual...

  • Page 115
    ...since 27 May 2014) Member of the Executive Board, Deutsche Lufthansa AG roland oetker Managing Partner, ROI Verwaltungsgesellschaft mbH Dr ulrich Schröder CEO of KfW Bankengruppe Dr Stefan Schulte Chair of the Executive Board of Fraport AG elmar Toime Managing Director, E Toime Consulting Ltd. Prof...

  • Page 116
    ... International Air Courier Ltd, China (Board of Directors) 1 roger Crook DHL Global Forwarding Management (Asia Pacific) Pte Ltd, Singapore (Board of Directors) 1 Bruce edwards (until 10 March 2014) Ashtead plc, UK (Board of Directors) Greif, Inc., USA (Board of Directors) Williams Lea Group Limited...

  • Page 117
    ... deliveries by a wide margin. According to surveys conducted by the quality research institute Quotas, 94 % of the letters received during our daily opening hours and before final post box collections were delivered the next day. Employees, page 73 Deutsche Post DHL Group - 2014 Annual Report

  • Page 118
    ... presents a report to the Board of Management member for the respective division. These reports are incorporated into the Chief Compliance Officer's report to the Board of Management and to the Finance and Audit Committee of the Supervisory Board. Deutsche Post DHL Group - 2014 Annual Report

  • Page 119
    ... Financial Officer (CFO) and the Board Member for Human Resources, the Board of Management also includes four operating divisions: Post - eCommerce - Parcel, Express, Global Forwarding, Freight, and Supply Chain. Group management functions are centralised in the Corporate Center. The Group Strategy...

  • Page 120
    ... contact with other Board of Management members between Supervisory Board meetings. The Supervisory Board carries out an annual efficiency review of the work of the Supervisory Board, which includes assessing co-operation with the Board of Management. The efficiency review for financial year 2014...

  • Page 121
    ... Board aims to ensure that the independent Supervisory Board members as defined in number 5.4.2 of the German Corporate Governance Code comprise at least 75 % of the Supervisory Board and that at least 30 % of the Supervisory Board members are women. Deutsche Post DHL Group - 2014 Annual Report

  • Page 122
    ... relationships might exist that could call into question the Supervisory Board's independence. The international nature of the company's business is also appropriately reflected in the extensive international experience of many Supervisory Board members. Deutsche Post DHL Group - 2014 Annual Report

  • Page 123
    ...Group's reported free cash flow is one of the targets applicable to all members of the Board of Management. Furthermore, an employee-related target is agreed with all Board of Management members based upon the annual Employee Opinion Survey, as are additional targets. Deutsche Post DHL Group - 2014...

  • Page 124
    ... difference between the average closing price of Deutsche Post shares for the five trading days preceding the exercise date and the exercise price of the SAR. In 2014, the members of the Board of Management each made a personal financial investment consisting of 10 % of their annual base salary. The...

  • Page 125
    ... to pay compensation due to a restraint on competition six months after receipt of such declaration. Apart from the aforementioned arrangements, no member of the Board of Management has been promised any further benefits after leaving the company. Deutsche Post DHL Group - 2014 Annual Report

  • Page 126
    ... in financial year 2014 for a total value of â,¬7.30 million (previous year: â,¬7.30 million) at the time of issue (1 September 2014). The total remuneration of the Board of Management members is presented individually in the tables below. In addition to the applicable accounting principles, the new...

  • Page 127
    ... Governance - COrPOraTE GOVErNaNCE rEPOrT - Remuneration report 121 B.05 Target remuneration for the Board of Management members active as at 31 December 2014 â,¬ 2013 Dr Frank Appel Chairman 2014 Min. 2014 Max. 2014 a) non-performance-related remuneration Base salary Fringe benefits Total (lit...

  • Page 128
    ...Jürgen Gerdes Post - eCommerce - Parcel 2013 2014 Min. 2014 Max. 2014 2013 John Gilbert Supply Chain (since 11 March 2014) 2014 Min. 2014 Max. 2014 a) non-performance-related remuneration Base salary Fringe benefits Total (lit. a) b) Performance-related remuneration One-year variable remuneration...

  • Page 129
    ... COrPOraTE GOVErNaNCE rEPOrT - Remuneration report 123 B.06 Target remuneration for the Board of Management members who left the company in financial year 2014 â,¬ Bruce Edwards Supply Chain (until 10 March 2014) 2013 2014 Min. 2014 Max. 2014 2013 Angela Titzrath Human Resources (until 1 July 2014...

  • Page 130
    ... Gilbert Supply Chain (since 11 March 2014) 2013 2014 Melanie Kreis Human Resources (since 31 October 2014) 2013 2014 Lawrence Rosen Finance, Global Business Services 2013 2014 Payments Base salary Fringe benefits Total One-year variable remuneration Multi-year variable remuneration Medium-term...

  • Page 131
    ... - CorPorATe GoVernAnCe rePorT - Remuneration report 125 B.08 Payments made to the Board of Management members who left the company in financial year 2014 â,¬ Bruce Edwards Supply Chain (until 10 March 2014) 2013 2014 Angela Titzrath Human Resources (until 1 July 2014) 2013 2014 Payments Base...

  • Page 132
    ... 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 dependents and a future pension increase of 1 % per year. Deutsche Post DHL Group - 2014 Annual Report

  • Page 133
    ... or committee meeting that they attend. They are entitled to the reimbursement of out-of-pocket cash expenses incurred in the exercise of their office. Any value added tax charged on Supervisory Board remuneration or out-of-pocket expenses is reimbursed. Deutsche Post DHL Group - 2014 Annual Report

  • Page 134
    ...,000 76,000 74,625 158,000 78,000 78,000 114,000 141,875 120,000 119,000 78,000 118,000 77,000 Deutsche Post DHL Group - 2014 Annual Report

  • Page 135
    ...,000 20,000 20,416 30,000 30,000 30,000 20,000 30,000 20,000 This variable remuneration component will fall due for payment as at the end of the 2016 AGM after determination of the consolidated net profit per share for financial year 2015. Deutsche Post DHL Group - 2014 Annual Report

  • Page 136
    ...000 20,000 - 40,000 20,000 20,000 20,000 30,000 5,000 30,000 20,000 30,000 20,000 Not a Board member in financial year 2012. No variable remuneration for financial year 2011 was paid out in the previous year (2013) as the requirements had not been met. Deutsche Post DHL Group - 2014 Annual Report

  • Page 137
    131 - 214 C C ConSoLIDATeD FInAnCIAL STATeMenTS CONSOLIDATED FINANCIAL STATEMENTS

  • Page 138
    ...- Net income from investments accounted for using the equity method 18 - Net finance costs 19 - Income taxes 20 - Consolidated net profit for the period 21 - Non-controlling interests 22 - Earnings per share 23 - Dividend per share OTHER DISCLOSURES 50 - Risks and financial instruments of the Group...

  • Page 139
    ... income from investments accounted for using the equity method Profit from operating activities (EBIT) Financial income Finance costs Foreign currency result net finance costs Profit before income taxes Income taxes Consolidated net profit for the period attributable to Deutsche Post AG shareholders...

  • Page 140
    ... or loss Change due to remeasurements of net pension provisions IFRS 3 revaluation reserve Other changes in retained earnings Income taxes relating to components of other comprehensive income Share of other comprehensive income of investments accounted for using the equity method (after tax) Total...

  • Page 141
    Consolidated Financial Statements - STaTEMENT OF COMPrEHENSIVE INCOME - BaLaNCE SHEET 135 C.03 BALANCE SHEET â,¬m Note 1 Jan. 2013 adjusted 1 31 Dec. 2013 adjusted 1 31 Dec. 2014 ASSETS Intangible assets Property, plant and equipment Investment property Investments accounted for using the equity ...

  • Page 142
    ... STATEMENT 1 January to 31 December â,¬m Note 2013 adjusted 1 2014 Consolidated net profit for the period attributable to Deutsche Post AG shareholders Consolidated net profit for the period attributable to non-controlling interests Income taxes Net finance costs Profit from operating activities...

  • Page 143
    ... of net pension provisions Other changes Balance at 31 December 2013, adjusted 1 Balance at 1 January 2014 Capital transactions with owner Dividend Transactions with non-controlling interests Changes in non-controlling interests due to changes in consolidated group Issue of shares or other equity...

  • Page 144
    ...controlling the investee. DHL Sinotrans International Air Courier Ltd. (Sinotrans), China, is a significant company that has been consolidated despite Deutsche Post DHL Group not having a majority of voting rights. Sinotrans provides domestic and international express delivery and transport services...

  • Page 145
    ..., transport and logistics service provider DHL Global Forwarding & Co. LLC (DHL Oman), Oman, which was previously accounted for using the equity method, has been consolidated since May 2014 due to contractual changes. In December 2014, Deutsche Post DHL Group acquired StreetScooter GmbH. The company...

  • Page 146
    ... Fair value of existing equity interest 1 37 2 39 5 5 29 2 31 Cost Less net assets In January 2013, Deutsche Post DHL Group acquired 49 % of the shares of Compador Technologies GmbH (Compador), Berlin, which specialises in the development and manufacture of sorting machines and software solutions...

  • Page 147
    ... 2 0 2 2 POST - ECOMMERCE - PARCEL SEGMENT Compador Technologies, Berlin, was sold and deconsolidated in December 2014. SUPPLY CHAIN SEGMENT In December 2014, DHL Supply Chain Limited, UK, sold its Digital Solutions Business by way of an asset deal. GLOBAL FORWARDING, FREIGHT SEGMENT In July 2014...

  • Page 148
    ... method as it now also includes the joint ventures to be accounted for using the equity method. Accordingly, the net income from associates item in the income statement was changed to net income from investments accounted for using the equity method. Deutsche Post DHL Group - 2014 Annual Report

  • Page 149
    ...of Deutsche Post DHL Group's investment portfolio revealed that it only held investments in companies that are active in the Group's core business area. This means that reporting the income and expenses from these investments under operating profit (EBIT) gives a better view of operating performance...

  • Page 150
    ... the presentation of the financial statements. The following are not relevant for the consolidated financial statements: amendments to IFRS 10, IFRS 12 and IAS 27 (Investment Entities), effective for financial years beginning on or after 1 January 2014. Deutsche Post DHL Group - 2014 Annual Report

  • Page 151
    ...periods beginning on or after 1 January 2017. The requirements must in principle be applied retrospectively. Its effects on the consolidated financial statements are currently being reviewed. IFRS 15 (Revenue from Contracts with Customers) (28 May 2014) Deutsche Post DHL Group - 2014 Annual Report

  • Page 152
    ...in the functional currency of the acquired company. The exchange rates for the currencies that are significant for the Group were as follows: Closing rates Currency Country 2013 EUR 1 = 2014 EUR 1 = 2013 EUR 1 = Average rates 2014 EUR 1 = AUD CnY GBP JPY SEK CHF USD Australia China UK Japan Sweden...

  • Page 153
    ... differences relating to net investments in a foreign operation are recognised in other comprehensive income. The company's business in Venezuela is subject to exchange controls. The Venezuelan currency, the bolívar fuerte, is not freely convertible. In March 2014, a new exchange rate system known...

  • Page 154
    ...the same amount is recognised under non-current liabilities. The lease is subsequently measured at amortised cost using the effective interest method. The depreciation methods and estimated useful lives correspond to those of comparable purchased assets. Deutsche Post DHL Group - 2014 Annual Report

  • Page 155
    ... mismatch). The Group makes use of the option in order to avoid accounting mismatches. Financial assets Financial assets are accounted for in accordance with the provisions of IAS 39, which distinguishes between four categories of financial instruments. Deutsche Post DHL Group - 2014 Annual Report

  • Page 156
    ...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 20 and 50 years using the straight-line method. The fair value is...

  • Page 157
    ...sum payments on retirement and other post-employment benefits and are referred to as retirement benefits, pensions and similar benefits, or simply pensions, in these disclosures. A distinction must be made between defined benefit and defined contribution plans. Deutsche Post DHL Group - 2014 Annual...

  • Page 158
    ... reporting year: â,¬25 million, in the previous year: â,¬23 million). Some of the plans in which Deutsche Post DHL Group participates are underfunded according to information provided by the funds. There is no information from the plans that would indicate any change from the contribution rates set...

  • Page 159
    ... as the average of the different municipal trade tax rates. Foreign Group companies use their individual income tax rates to calculate deferred tax items. The income tax rates applied for foreign companies amount to up to 40 % (previous year: 38 %). Deutsche Post DHL Group - 2014 Annual Report

  • Page 160
    ... - 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 affect the Group's net assets, financial position and results of operations. Deutsche Post DHL Group - 2014 Annual Report

  • Page 161
    ... losses from intra-group deliveries and services not realised by sale to third parties are eliminated. Unrealised gains and losses from business transactions with investments accounted for using the equity method are eliminated on a proportionate basis. Deutsche Post DHL Group - 2014 Annual Report

  • Page 162
    ... 2 2014 Supply Chain 2013 2 2014 Corporate Center / Other 2013 2014 Consolidation 1 2013 2 2014 2013 2 Group 2014 External revenue Internal revenue Total revenue Profit / loss from operating activities (EBIT) of which net income from investments accounted for using the equity method Segment assets...

  • Page 163
    ... structure, the primary reporting format is based on the divisions. The Group distinguishes between the following divisions: 10.2 Segments by division Post - eCommerce - Parcel EXPRESS The Express division offers time-definite courier and express services to business and private customers...

  • Page 164
    ... 2013 2 2014 Consolidated amount 2013 2 2014 External revenue Internal revenue Total revenue Other operating income Materials expense Staff costs Depreciation, amortisation and impairment losses Other operating expenses Net income from investments accounted for using the equity method Profit / loss...

  • Page 165
    ... to higher transportation costs and increased expenses related to goods purchased and held for resale for the business with the UK National Health Service in the Supply Chain division. Other expenses include a large number of individual items. Note 4. Deutsche Post DHL Group - 2014 Annual Report

  • Page 166
    ... during the year under review were included rateably. Calculated as full-time equivalents, the number of employees as at 31 December 2014 amounted to 443,784 (31 December 2013, adjusted: 434,974). The number of employees at joint operations included in the consolidated financial statements amounted...

  • Page 167
    ...- 400 17 â,¬m net income from investments accounted for using the equity method 2013 adjusted 1 2014 Net income from associates Net income from joint ventures net income from investments accounted for using the equity method 1 5 0 5 5 0 5 Note 4. Deutsche Post DHL Group - 2014 Annual Report

  • Page 168
    ... income. As regards future effects, it is very difficult to make an estimation because those effects depend crucially on the change in pension provisions associated with the differences between the IFRS financial statements and the tax accounts. Deutsche Post DHL Group - 2014 Annual Report

  • Page 169
    ... the convertible bond issued on 6 December 2012. Consolidated net profit for the period attributable to Deutsche Post AG shareholders was increased by the amounts spent for the convertible bonds. A dividend per share of â,¬0.85 is being proposed for financial year 2014. Based on the 1,211,180,262...

  • Page 170
    ... purchased intangible assets. Internally generated intangible assets relate to development costs for internally developed software. Other than goodwill, only brand names that are acquired in their entirety are considered to have indefinite useful lives. Deutsche Post DHL Group - 2014 Annual Report

  • Page 171
    ...to the post-tax cost of capital. Pre-tax discount rates are then determined iteratively. The cash flow projections are based on the detailed planning for EBIT, depreciation / amortisation and investment planning adopted by management, as well as changes in net working capital, and take both internal...

  • Page 172
    ... paid ad­ vances 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 third­party costs have already been incurred. Deutsche Post DHL Group - 2014 Annual Report

  • Page 173
    ... 28 44 2 - 46 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Quoted market prices that are observable directly (as a price) or indirectly (derived from the price). Inputs that are not based on observable market data. Deutsche Post DHL Group - 2014 Annual Report

  • Page 174
    ...using the equity method Investments accounted for using the equity method changed as follows: Associates 2013 adjusted 1 2014 2013 adjusted 1 Joint ventures 2014 2013 adjusted 1 Total 2014 Balance at 1 January Disposals Changes in Group's share of equity Changes recognised in profit or loss Profit...

  • Page 175
    ... Financial Statements - noTeS - Balance sheet disclosures 169 28 â,¬m non-current financial assets 30 1 Jan. 2013 adjusted 1 2013 adjusted 1 2014 Deferred taxes 30.1 overview â,¬m 2013 2014 Available-for-sale financial assets Loans and receivables Assets at fair value through profit or loss...

  • Page 176
    ...term Netting Total 33 â,¬m Trade receivables 1 Jan. 2013 adjusted 1 2013 adjusted 1 2014 2014 Deferred tax assets Deferred tax liabilities 2013 Deferred tax assets Deferred tax liabilities Trade receivables 308 106 1,801 335 -357 -357 1,752 84 Deferred revenue Receivables from Group companies...

  • Page 177
    ... reported under this item mainly relate to the following items: â,¬m 2013 Assets 2014 2013 Liabilities 2014 Exel Inc., USA - property (Supply Chain segment) Deutsche Post DHL Corporate Real Estate Management GmbH Co. Logistikzentren KG, Germany - property (Corporate Center / Other) Deutsche Post...

  • Page 178
    ... levels in financial year 2014. As at 31 December 2014, Deutsche Post AG held 1,507,473 treasury shares (previous year: no treasury shares). Changes in treasury shares are presented in the statement of changes in equity. Authorised / contingent capital at 31 December 2014 Amount â,¬ m Purpose...

  • Page 179
    ...in the reporting year. Contingent Capital 2014 On 27 May 2014, the Annual General Meeting of Deutsche Post AG resolved to authorise the Board of Management to contingently increase the share capital by up to â,¬40 million through the issue of up to 40 million new no-par value registered shares. The...

  • Page 180
    ... of listing on a stock exchange outside Germany. In addition, the Board of Management remains authorised to acquire treasury shares using derivatives. As part of the Share Matching Scheme, Deutsche Post AG issued a total of 1,651,244 shares to executives in the current financial year. To this end...

  • Page 181
    ... assets are sold or otherwise disposed of, or if their value is significantly or permanently impaired. Comprehensive income Changes from unrealised gains and losses Changes from realised gains and losses Currency translation reserve at 31 December 1 Note 4. Deutsche Post DHL Group - 2014 Annual...

  • Page 182
    ... interests relate: â,¬m DHL Sinotrans International Air Courier Ltd., China Blue Dart Express Limited, India Exel Saudia LLC, Saudi Arabia Tradeteam Limited, UK Other companies Non-controlling interests 1 The dividend payment to Deutsche Post AG shareholders of â,¬968 million was made in May 2014...

  • Page 183
    ...Dart 2014 Balance sheet ASSETS Non-current assets Current assets Total ASSETS EQUITY AND LIABILITIES Non-current provisions and liabilities Current provisions and liabilities Total EQUITY AND LIABILITIES Net assets Non-controlling interests Income statement Revenue Profit before income taxes Income...

  • Page 184
    ... internal change in the conditions for access to certain invalidity benefits. Retirement arrangements with a similar structure are available to executives below the management board level and to specific employee groups who can make use of deferred compensation. The large majority of Deutsche Post...

  • Page 185
    ... Germany have retirement plans that were acquired in the context of acquisitions and transfers of operations and that are closed to new entrants. In the UK, the Group's defined benefit pension arrangements have largely been closed to new entrants for a number of years. In addition, Deutsche Post DHL...

  • Page 186
    ... from former Group companies existed in the Group in Germany in the amount of around â,¬17 million (31 December 2013: â,¬14 million) which are reported separately. Consequently, benefit payments are being made directly by the former Group companies. Deutsche Post DHL Group - 2014 Annual Report

  • Page 187
    ... Financial Statements - noTeS - Balance sheet disclosures 181 44.2 Present value of defined benefit obligations The present value of defined benefit obligations changed as follows: â,¬m Germany UK Other Total 2014 Present value of defined benefit obligations at 1 January Current service cost...

  • Page 188
    ... bond yields were used for countries without a deep market for such corporate bonds. For the annual pension increase in Germany, agreed rates in particular must be taken into account in addition to the assumptions shown. The effective weighted average therefore amounts to 1.00 % (2013: 1.00 %). The...

  • Page 189
    Consolidated Financial Statements - noTeS - Balance sheet disclosures 183 44.3 Fair value of plan assets The fair value of the plan assets changed as follows: â,¬m Germany UK Other Total 2014 Fair value of plan assets at 1 January Interest income on plan assets Return on plan assets excluding ...

  • Page 190
    ... previous year. 44.5 net pension provisions Net pension provisions changed as follows: â,¬m Germany UK Other Total 2014 Net pension provisions at 1 January Service cost 1 Net interest cost Remeasurements Employer contributions Employee contributions Benefit payments Settlement payments Transfers...

  • Page 191
    ... mitigated by largely closing the defined benefit arrangements and setting a fixed rate of increase or, to some extent, by capping increases or providing for lump sum payments in some cases. Additionally, there is a positive correlation with interest. Deutsche Post DHL Group - 2014 Annual Report

  • Page 192
    ... Other employee benefits Technical reserves (insurance) Restructuring provisions Postage stamps Tax provisions Miscellaneous provisions Total At 1 January 2014 Changes in consolidated group Utilisation Currency translation differences Reversal Unwinding of discount / changes in discount rate...

  • Page 193
    Consolidated Financial Statements - noTeS - Balance sheet disclosures 187 The provision for other employee benefits primarily covers workforce reduction expenses (severance payments, transitional benefits, partial retirement, etc.), stock appreciation rights (SAR s) and jubilee payments. The ...

  • Page 194
    ... adjusted to â,¬20.69 due to the dividend payment of â,¬0.80 per share for financial year 2013. In addition, Deutsche Post AG was granted a call option allowing it to repay the bond early at face value plus accrued interest if Deutsche Post AG's share price more than temporarily exceeds 130 % of the...

  • Page 195
    ... Financial Statements - noTeS - Balance sheet disclosures 189 46.4 Finance lease liabilities Finance lease liabilities mainly relate to the following items: Interest rate % 2013 â,¬m 2014 â,¬m Leasing partner End of term Asset Deutsche Post Immobilien GmbH, Germany DHL Express (Austria) GmbH...

  • Page 196
    .... 49.1 net cash from operating activities Maturity structure 2013 adjusted 1 2014 3,978 41 7 7 28 144 4,205 4,196 28 7 34 6 180 4,451 Cash flows from operating activities are calculated by adjusting consolidated net profit / loss for tax expenses, net financial income / net finance costs and...

  • Page 197
    ... increase was attributable to the DHL divisions, with the Express division in particular significantly expanding its investments in regional and global hubs. The change in current financial assets, in particular, led to a significant net cash inflow of â,¬405 million. The sale of money market funds...

  • Page 198
    ...instruments of the Group 50.1 risk management As a result of its operating activities, the Group is exposed to financial risks that may arise from changes in exchange rates, commodity prices and interest rates. Deutsche Post DHL Group manages these risks centrally through the use of non-derivative...

  • Page 199
    ... balance sheet currency risks within the Group are centralised at Deutsche Post AG through the in-house bank function. The centralised risks are aggregated by Corporate Treasury to calculate a net position per currency and hedged externally based on value-at-risk limits. The currency-related value...

  • Page 200
    ... by 100 basis points would affect the fair values of the interest rate derivatives recognised in equity. As in the previous year, a rise in interest rates in this financial year would not have increased equity, nor would a reduction have reduced equity. Deutsche Post DHL Group - 2014 Annual Report

  • Page 201
    ...counterparties fail to meet their obligations arising from operating activities and from financial transactions. To minimise credit risk from financial transactions, the Group only enters into transactions with prime-rated counterparties. The Group's heterogeneous customer structure means that there...

  • Page 202
    ... â,¬600 million (previous year: â,¬545 million) of collateral is recognised in non-current financial assets as at the balance sheet date. Of this amount, â,¬335 million relates to the restricted cash transferred to a blocked account with Commerzbank AG for any payments that may be required...

  • Page 203
    ... purchase of diesel and marine diesel fuels, which cannot be passed on to customers, were hedged using commodity swaps that will affect cash flow in 2014. The fair value of these cash flow hedges amounted to â,¬-4 million (previous year: â,¬0 million). Deutsche Post DHL Group - 2014 Annual Report

  • Page 204
    ...also include the convertible bond issued by Deutsche Post AG in December 2012. The listed bond had a fair value of â,¬1,384 million at the balance sheet date. A fair value of â,¬1,006 million was reported for the debt component at the balance sheet date. Deutsche Post DHL Group - 2014 Annual Report

  • Page 205
    ... 456 7,825 1,048 0 68 283 0 - 4,480 0 160 0 334 0 6,922 390 0 12,286 0 12 0 0 0 58 0 0 0 70 191 0 0 0 19 0 0 0 0 210 5,461 12 160 0 353 133 6,922 390 0 - Deutsche Post DHL Group - 2014 Annual Report

  • Page 206
    ... also include the convertible bond issued by Deutsche Post AG in December 2012. The listed bond had a fair value of â,¬1,353 million at the balance sheet date. A fair value of â,¬928 million was reported for the debt component at the balance sheet date. Deutsche Post DHL Group - 2014 Annual Report

  • Page 207
    ... 7,022 956 0 70 751 3,414 - 4,414 0 147 0 1,287 0 6,358 346 0 12,552 0 11 0 0 0 21 0 0 0 32 194 0 0 0 19 0 0 0 0 213 4,664 11 147 0 1,306 29 6,358 346 0 - Deutsche Post DHL Group - 2014 Annual Report

  • Page 208
    ... cost was reduced by â,¬75 million in the financial year. There are no plans to sell or derecognise significant shares of the availablefor-sale financial assets recognised as at 31 December 2014 in the near future. Available-for-sale financial assets measured at fair value relate to equity and debt...

  • Page 209
    ... Liabilities Debt instruments Derivatives Equity derivatives 1 2 28 0 41 24 0 93 1 48 -1 - 43 0 0 0 0 0 -3 0 2 Fair value losses were recognised in other finance costs. Unrealised gains were recognised in the IAS 39 revaluation reserve. Deutsche Post DHL Group - 2014 Annual Report

  • Page 210
    ...of business, the financial assets and liabilities are recognised in the balance sheet at their gross amounts as at the reporting date. The master netting arrangement creates a conditional right of set-off that can only be enforced by taking legal action. Deutsche Post DHL Group - 2014 Annual Report

  • Page 211
    ...extended contract with US airline Southern Air at the start of 2014, which led to an increase in aircraft lease obligations. Furthermore, new leases were concluded for mechanised delivery bases. Maturity structure of minimum lease payments â,¬m 2013 2014 Less than 1 year More than 1 year to 2 years...

  • Page 212
    ... the value of share-based payments for executives. All assumptions are reviewed on a quarterly basis. The staff costs are recognised pro rata in profit or loss to reflect the services rendered as consideration during the vesting period (lock-up period). Deutsche Post DHL Group - 2014 Annual Report

  • Page 213
    ... closing price of Deutsche Post shares during the last five trading days before the exercise date and the issue price of the SAR. The members of the Board of Management each invest 10 % of their fixed annual remuneration (annual base salary) as a personal financial investment every year. The number...

  • Page 214
    ... Long-Term Incentive Plan (2006 LTIP) for members of the Board of Management remains unchanged. In the consolidated financial statements as at 31 December 2014, a total of â,¬3 million (previous year: â,¬0 million) has been added to capital reserves for the purposes of the plan; Note 39. The value...

  • Page 215
    ....com/en/investors.html, together with information on the equity interest held, their equity and their net profit 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...

  • Page 216
    ... its non-controlling interest, has a secure majority at the Annual General Meeting due to its average presence there. Deutsche Telekom AG is therefore a related party of Deutsche Post AG. In financial year 2014, Deutsche Post DHL Group provided goods and services (mainly transport services for...

  • Page 217
    ... for the function or work performed in the company. Post-employment benefits are recognised as the service cost resulting from the pension provisions for active members of the Board of Management. The corresponding liability amounted to â,¬34 million as at the reporting date (previous year: â,¬23...

  • Page 218
    ...Hannover GmbH Deutsche Post Shop München GmbH Deutsche Post Signtrust und DMDA GmbH DHL Airways GmbH DHL Automotive GmbH DHL Automotive Offenau GmbH DHL Delivery GmbH DHL Express Customer Service GmbH DHL Express Germany GmbH DHL Express Network Management GmbH DHL Fashion Retail Operation GmbH DHL...

  • Page 219
    ... business, Deutsche Post DHL Group has founded numerous regional com­ panies under the umbrella of DHL Delivery GmbH. The goal is to create up to 10,000 new positions by 2020. Staff working in the new companies shall be employed in line with the regionally applicable collective terms and conditions...

  • Page 220
    ... Code) and that these consolidated financial statements give a true and fair view of the net assets, financial position and results of operations of the group in accordance with these requirements. The Board of Management is also responsible for the internal controls as the Board of Management...

  • Page 221
    215 - 224 D FURTHER INFORMATION D FUrTHEr INFOrMATION

  • Page 222
    D 217 218 219 220 222 224 224 224 FURTHER INFORMATION INDEX GLOSSARY GRAPHS AND TABLES LOCATIONS MULTI-YEAR REVIEW CONTACTS PUBLICATION SERVICE FINANCIAL CALENDAR

  • Page 223
    ... 61, 68, 110, 157, 165, 223 Working capital 36, 50, 57, 63, 67, 80, 165 O Ocean freight 23, 28, 34, 66 f., 94, 100 Oil price 44, 66, 70, 98 f. Operating cash flow 36, 42, 50, 52, 57, 61 Opportunities and risk management 86 ff., 94 Outlook 42, 86, 97 ff. Deutsche Post DHL Group - 2014 Annual Report

  • Page 224
    ...-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. Day Definite Delivery of shipments on a specified day. DHL Customer Solutions & Innovation...

  • Page 225
    ... CHAIN: revenue by sector, 2014 A.54 SUPPLY CHAIN: revenue by region, 2014 Deutsche Post Shares A.55 Deutsche Post shares: multi-year review A.56 Peer group comparison: closing prices A.57 Share price performance A.58 Shareholder structure A.59 Shareholder structure by region Non-financial Figures...

  • Page 226
    ... Serbia Slovakia Slovenia Spain Sweden Switzerland Ukraine United Kingdom 1 2 Countries according to the list of shareholdings which can be accessed on the website Full-time equivalents, excluding trainees. Main global hubs. dpdhl.com/en/investors. Deutsche Post DHL Group - 2014 Annual Report

  • Page 227
    ... Darussalam Cambodia China East Timor Fiji French Polynesia India Indonesia Japan Kazakhstan Laos Macau Malaysia Myanmar / Burma Nepal New Caledonia New Zealand Pakistan Papua New Guinea Philippines Singapore South Korea Sri Lanka Taiwan Thailand Vietnam Deutsche Post DHL Group - 2014 Annual Report

  • Page 228
    ... 2014 revenue Post - eCommerce - Parcel (until 2013 Mail) Express Global Forwarding, Freight Supply Chain Divisions total Corporate Center / Other (2007: Corporate Center / Other and Consolidation) Consolidation Total (continuing operations) Discontinued operations Profit / loss from operating...

  • Page 229
    ...yEAr rEVIEW 223 2007 adjusted 2008 adjusted 2009 2010 2011 2012 adjusted 2013 adjusted 2014 Employees/staff costs (continuing operations) Number of employees 2 Full time equivalents 3 Average number of employees 2 Staff costs Staff cost ratio 4 Key figures revenue/income/assets and capital...

  • Page 230
    ... the Deutsche Post DHL IR app you can receive investor relations and financial media news directly on your iPad. FINANCIAL CALENDAR 2015 12 MAY 2615 9 MARCH 2616 2016 2015 Annual Report 11 MAY 2616 Interim Report January to March 2015 27 MAY 2615 2015 Annual General Meeting (Frankfurt am Main...

  • Page 231

  • Page 232

  • Page 233

  • Page 234
    Deutsche Post AG Headquarters Investor relations 53250 Bonn Germany dpdhl.com