DHL 2015 Annual Report Download - page 193

Deutsche Post  Group —  Annual Report
OTHER DISCLOSURES
 Risks and financial instruments of the Group
. Risk management
As a result of its operating activities, the Group is exposed to nan-
cial risks that may arise from changes in exchange rates, commodity
prices and interest rates. Deutsche Post  Group manages these
risks centrally through the use of non-derivative and derivative
nan cial instruments. Derivatives are used exclusively to mitigate
non-derivative nancial risks, and uctuations in their fair value
should not be assessed separately from the underlying transaction.
e Group’s internal risk guidelines govern the universe of
actions, responsibilities and necessary controls regarding the use of
derivatives. Financial transactions are recorded, assessed and pro-
cessed using proven risk management soware, which also regularly
documents the eectiveness of hedging relationships. Portfolios of
derivatives are regularly reconciled with the banks concerned.
To limit counterparty risk from nancial transactions, the
Group may only enter into this type of contract with prime-rated
banks. e conditions for the counterparty limits individually as-
signed to the banks are reviewed on a daily basis. e Group’s Board
of Management is informed internally at regular intervals about
existing nancial risks and the hedging instruments deployed to
mitigate them. Financial instruments are accounted for and meas-
ured in accordance with  .
Information on risks and risk mitigation in relation to the
Group’s dened benet retirement plans can be found in Note ..
Liquidity management
e ultimate objective of liquidity management is to secure the solv-
ency of Deutsche Post  Group and all Group companies. Con-
sequently, liquidity in the Group is centralised as much as possible
in cash pools and managed in the Corporate Center.
e centrally available liquidity reserves (funding availability),
consisting of central short-term nancial investments and commit-
ted credit lines, are the key control parameter. e target is to have
at least  billion available in a central credit line.
e Group had central liquidity reserves of . billion (previ-
ous year: . billion) as at  December , consisting of central
nancial investments amounting to . billion plus a syndicated
credit line of  billion.
e maturity structure of non-derivative nancial liabilities
within the scope of   based on cash ows is as follows:
Maturity structure of financial liabilities
 m
Less than
1year
More than
1year
to2years
More than
2years
to3years
More than
3years
to4years
More than
4years
to5years
More than
5years
At  December 
Non-current financial liabilities 82 943 635 1,096 368 1,984
Other non-current liabilities 0 2 2 1 1 138
Non-current liabilities 82 945 637 1,097 369 2,122
Current financial liabilities 445
Trade payables 7,069
Other current liabilities 355
Current liabilities 7,869
At  December 
Non-current financial liabilities 82 99 854 580 1,070 2,206
Other non-current liabilities 0 2 2 2 1 154
Non-current liabilities 82 101 856 582 1,071 2,360
Current financial liabilities 353
Trade payables 6,922
Other current liabilities 342
Current liabilities 7,617
183
Consolidated Financial Statements — NOTES — Cash flow disclosures — Other disclosures