DHL 1997 Annual Report Download - page 15

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At 26.6 percent, our equity ratio remained virtually unchanged from the
previous year’s level.
We slashed the amounts owed to banks by a substantial 34.4 percent to
DM 506 million during 1997. We were also able to reduce debt owed to
Deutsche Telekom AG listed under other liabilities by DM 392 million to
DM 1,038 million. This item involves the allocation of debt of the former
Deutsche Bundespost per Postreform II.
Large capital expenditures accelerate structural change
We also continued our planned multi-year investment program
during fiscal 1997. Additions to property, plant and equipment amount-
ing to DM 1,929 million (1996: DM 1,879 million) were financed entirely
from internally generated cash flow.
As in 1996, investment activity continued to focus on establishing new
production facilities for the Letter Mail business. The number of state-of-
the-art letter processing centers grew from 20 to 58 in 1997. This project
envisages a total of 83 centers and will be completed ahead of schedule
in late 1998.
As part of our efforts to increase the international orientation of our
corporation, we have successfully concluded several acquisitions during
the financial year.
Deutsche Post Express und Transport GmbH (Bonn) has acquired a
24.8 percent stake in trans-o-flex Schnell-Lieferdienst AG (Weinheim)
through a holding company. Along with our participation in the pan-
European Eurodis Network, the trans-o-flex acquisition, with its sub-
sidiaries in six countries, helps form a top-quality network that will
ensure better service for Deutsche Post customers, particularly in the
European region.
12
Capital expenditures property, plant and
equipment
1996 1997
1,879
1,929
2,000
2.250
1,750
1,500
1,250
1,000
in DM millions