DHL 2015 Annual Report Download - page 206

Deutsche Post  Group —  Annual Report
In its ruling of  September , the General Court of the
European Union held that the decision of the European Commis-
sion dated  September  regarding the initiation of a formal
state aid investigation was null and void based upon a complaint
led by Deutsche Post . e legal action did not involve the sub-
stantive proceedings but rather the procedural side issue of whether
the European Commission was acting within its rights in reopening
the state aid proceedings in . In , Deutsche Post  had
led an action against the reopening of the state aid proceedings as
a precautionary measure. e substantive proceedings of the legal
dispute will continue, i.e. the action brought by Deutsche Post 
against the  state aid ruling of  January  that is still pend-
ing before the General Court of the European Union.
If the appeals of Deutsche Post  or the federal government
against the state aid ruling are successful, the opportunity exists that
the payment of  million and the payments of . million,
. million, . million and . million made in addition – as
well as the additional annual payments of around  million to be
made in the future – will be reimbursed. Reimbursement would
only aect the liquidity of Deutsche Post ; the earnings position
would remain unaected.
Although Deutsche Post  and the federal government are of
the opinion that the state aid decision of  January  cannot
withstand legal review, it cannot be ruled out that Deutsche Post 
will ultimately be required to make a potentially higher payment,
which could have an adverse eect on earnings, Note .
On  November , the Bundeskartellamt (German federal
cartel oce) initiated proceedings against Deutsche Post  on sus-
picion of abusive behaviour with respect to mail transport for major
customers. Based upon information from Deutsche Post’s competi-
tors, the authorities suspected that the company had violated Ger-
man and European antitrust law. In a decree dated  July , the
Bundeskartellamt determined that such violations had indeed taken
place but also that Deutsche Post had discontinued them at the end
of . No ne was imposed. e company appealed the decision
to the Higher Regional Court in Düsseldorf on  August  and
submitted a statement setting out the grounds of appeal within the
prescribed period.
Since  July , as a result of the revision of the relevant tax
exemption provisions, the  exemption has only applied to those
specic universal services in Germany that are not subject to indi-
vidually negotiated agreements or provided on special terms (dis-
counts etc.). Deutsche Post  does not believe that the legislative
amendment fully complies with the applicable provisions of Euro-
pean Community law. Due to the legal uncertainty resulting from
the new legislation, Deutsche Post  is endeavouring to clarify
certain key issues with the tax authorities, Note .
On  June ,  Express France received a statement of
objections from the French competition authority alleging anti-
competitive conduct in the domestic express business, a business,
which had been divested in June . On  December ,
Deutsche Post  Group received the decision of the French au-
thority regarding the fuel surcharges and price xing. e decision
has been appealed by the Group. Further details cannot be given at
this point in time.
In view of the ongoing or announced legal proceedings men-
tioned above, no details are given on their presentation in the nan-
cial statements.
 Share-based payment
Assumptions regarding the price of Deutsche Post ’s shares and
assumptions regarding employee uctuation are taken into account
when measuring the value of share-based payments for executives.
All assumptions are reviewed on a quarterly basis. e sta costs are
recognised pro rata in prot or loss to reect the services rendered
as consideration during the vesting period (lock-up period).
. Share-based payment for executives (Share Matching Scheme)
Under the share-based payment system for executives (Share
Matching Scheme), certain executives receive part of their vari-
ableremuneration for the nancial year in the form of shares of
Deutsche Post  in the following year (deferred incentive shares).
All Group executives can specify an increased equity component
individually by converting a further portion of their variable remu-
neration for the nancial year (investment shares). Aer a four-year
lock-up period during which the executive must be employed by
the Group, they again receive the same number of Deutsche Post 
shares (matching shares). Assumptions are made regarding the con-
version behaviour of executives with respect to their relevant bonus
portion. Share-based payment arrangements are entered into each
year with  December (from nancial year ; until :  Janu-
ary) of the respective year and  April of the following year being
the grant dates for each year’s tranche. Whereas incentive shares and
matching shares are classied as equity-settled share-based pay-
ments, investment shares are compound nancial instruments and
the debt and equity components must be measured separately. How-
ever, in accordance with  ., only the debt component is
measured due to the provisions of the Share Matching Scheme. e
investment shares are therefore treated as cash-settled share-based
payments.
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