DHL 1999 Annual Report Download - page 95

106
Notes to the Consolidated Financial Statements
In the 1999 financial year, expenses for acquisitions
amounted to a total of EUR 5,101 million. EUR 2,211
million were accounted for by the Deutsche Postbank
Group,EUR 933 million by Danzas,EUR 678 million by
the Nedlloyd Group, EUR 384 million by the ASG
Group, EUR 303 million by the Securicor Group, and
EUR 242 million by DSL Holding AG. The acquisition
prices were paid exclusively through the transfer of cash
and cash equivalents.
With the 100 percent takeover ofthe Deutsche Postbank
Group,which is primarily operating the retail market,on
January 1, 1999 the Deutsche Post Group expanded its
corporate division for FINANCIAL SERVICES and is
now well prepared to operate the Deutsche Post AG
retail outlet network with improved economic feasi-
bility by selling financial products and services. The
acquisition is also meant to open up new cross-selling
opportunities.Further,a majority stake in DSL Holding
AG was acquired in preparation of our acquisition of
DSL Bank.DSL Holding AG held a 48-percent dormant
equity stake in DSL Bank as of December 31,1999.
By acquiring Danzas, the Deutsche Post Group incor-
porated a logistics group offering air and sea ship-
ments around the world, road transportation all over
Europe and providing customers with tailor-made
logistics solutions. The acquisition of the ASG Group,
which operates in the Scandinavian market, and of the
logistics division of Nedlloyd which is prominent in
Benelux and Germany, rounded out the product and
service portfolio of the LOGISTICS corporate divisions
of Deutsche Post World Net. Extensive reorganization
efforts are required to realize synergy effects arising
from the acquisition of these three logistics groups.
Therefore, restructuring provisions were made as of
the acquisition dates in line with IAS 22 (Business
Combinations): EUR 107 million for the Nedlloyd
companies and EUR 37 million for the ASG com-
panies. These restructuring provisions were primarily
made with a view to staff reduction plans.
All other acquisitions abroad were made under Deutsche
Post’s internationalization strategy,in particular for set-
ting up an efficient pan-European parcel distribution
and express network.
Seven fully consolidated companies,WohnBau Rhein-
Main AG, Deutsche Post Wohnen Verwaltungs- und
Dienstleistungsgesellschaft mbH and five DTZ compa-
nies as well as one DTZ company valued at equity were
sold and left the consolidated Group in the 1999 finan-
cial year. These disposals are part of the strategy of a
medium-term withdrawal from the residential building
sector in order to focus on the core business of the
Group.
The changes in the composition of the Group due to
acquisitions and sales of subsidiaries had the following
effects on the net worth, financial position and results
for the period:
Intangible assets
Property, plant and equipment
Financial assets
Current assets
Deferred tax
Liabilities and provisions
EUR mill.
1,705
1,996
405
60,975
897
59,459
1999