DHL 2014 Annual Report Download - page 58

.  to debt
 m 2013
adjusted 1
2014
Operating cash flow before changes in working capital 3,078 3,061
Interest received 2 55 45
Interest paid 166 188
Adjustment for operating leases 1,240 1,283
Adjustment for pensions 144 122
Non-recurring income / expenses 73 74
Funds from operations  4,424 4,397
Reported financial liabilities 5,954 5,169
Financial liabilities at fair value through profit or loss 40 145
Adjustment for operating leases 5,099 5,953
Adjustment for pensions 4,940 7,174
Surplus cash and near-cash investments 3 3,082 2,256
Debt 12,871 15,895
 to debt  34.4 27.7
1 Note .
2 The dividends received previously shown under this item have been included in operating cash flow before changes
in working capital as at  December . To improve comparability, the figures for  take the new presentation
into account.
3 Surplus cash and near-cash investments are defined as cash and cash equivalents and investment funds callable at sight,
less cash needed for operations.
e “ to debt” dynamic performance metric declined signicantly in the reporting
year compared with the prior year primarily due to an increase in debt.
Funds from operations decreased slightly by  million to a total of , million,
due to the nominal decline in operating cash ow before changes in working capi-
tal, amongst other factors. e amount of interest paid increased, mainly because we
had to pay interest on the two bonds issued in  for the rst time. Operating re-
structuring payments in the amount of  million were recognised as non-recurring
income / expenses in the reporting year.
Debt increased by , million year-on-year to , million in nancial year
. e increase was attributable mainly to the increase in the adjustment for pensions,
which resulted above all from the signicant increase in pension obligations due to lower
discount rates. Further information on pensions is contained in the Notes. Another
factor contributing to the increase was the rise in lease obligations, which are reported
under adjustment for operating leases.
Cash and liquidity managed centrally
e cash and liquidity of our globally operating subsidiaries is managed centrally by
Corporate Treasury. More than   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 man-
aged centrally by Corporate Treasury. In this context, we observe a balanced banking
policy in order to remain independent of individual banks. Our subsidiaries’ intra-group
revenue is also pooled and managed by our in-house bank in order to avoid exter-
nal bank charges and margins through intercompany clearing. Payment trans actions
are executed in accordance with uniform guidelines using standardised processes and
 systems. Many Group companies pool their external payment transactions in the
Group’s Payment Factory, which executes payments in the name of the respective com-
panies via Deutsche Post ’s central bank accounts.
Note 
Deutsche Post  Group —  Annual Report
52