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Please find page 79 of the 2015 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.Deutsche Post Group — Annual Report
SUPPLY CHAIN DIVISION
Continued revenue growth in all regions
Revenue in the division increased by . to , million in the reporting year (pre-
vious year: , million). Positive currency eects of , million contributed to
this growth; excluding these eects, revenue declined by . . e decrease is due
mainly to the change in revenue reporting in connection with the National Health
Service in the fourth quarter of as a result of the revised terms of the contract.
Compared with the previous year, the Automotive, Consumer and Retail sectors demon-
strated the highest revenue growth. In the fourth quarter of , revenue declined
year-on-year by . from , million to , million, due primarily to rev-
enues in the amount of million which were no longer recognised.
In the (Europe, Middle East and Africa) region, volumes in the Automotive
and Retail sectors increased due to higher end-customer demand. Revenue in the Life
Sciences & Healthcare sector declined, reecting the change in the revenue report-
ing in the .
In the Americas region, we gained revenue from new business in the United States,
driven predominantly by the Consumer and Automotive sectors. Revenue growth in
Canada was impacted negatively as a whole by the loss of a contract in the Retail sector
at the end of the second quarter of .
In the Asia Pacic region there was a substantial revenue increase across all focus
sectors. China and ailand in particular contributed to this increase, which stemmed
from new and additional business. In China, revenue increased signicantly in the
Automotive and Technology sectors. Revenue growth in ailand came primarily from
the Retail and Consumer sectors. Our business in India, Hong Kong, Vietnam and Japan
also contributed to the increased revenue in the region.
New business worth around , million secured
In , the Supply Chain division concluded additional contracts worth around
, million in annualised revenue with both new and existing customers. e Con-
sumer, Retail, Automotive, Life Sciences & Healthcare and Technology sectors accounted
for the majority of the gains. In the fourth quarter of , the procurement and logis-
tics contract with the was extended to under the same scope but with new
cost savings targets. e annualised contract renewal rate remained at a consistently
high level.
includes restructuring expenses and disposal income
in the division was million in the reporting year (previous year: million).
e main reason for the decline was the restructuring costs supporting our “Focus.
Connect. Grow.” strategic initiative, which were oset partially by income from the sale
of shares in King’s Cross in the . New business also had a positive eect on earnings.
e return on sales fell to . (previous year: . ). In the fourth quarter of ,
increased from million in the previous year to million. Higher income from
real estate sales was dampened by restructuring costs.
Operating cash ow was million (previous year: million). e decrease
was attributable mainly to performance and excludes the cash proceeds benet of
the King’s Cross sale.
:
revenue by sector, .
Total revenue: , million
a
b
d
c
e
f
gh
a Retail 25 %
b Consumer 21 %
c Life Sciences & Healthcare 18 %
d Automotive 12 %
e Technology 10 %
f Others 7 %
g Engineering & Manufacturing 4 %
h Financial Services 3 %
:
revenue by region, .
Total revenue: , million
a
b
c
a Europe / Middle East /Africa /
Consolidation 60 %
b Americas 27 %
c Asia Pacific 13 %
69
Group Management Report — REPORT ON ECONOMIC POSITION — Business performance in the divisions