DHL 2001 Annual Report Download - page 114

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114
8.1 Notes to the segment reporting
Segment reporting was prepared in accordance with
IAS 14 (Segment Reporting). The presentation of
specific data from the consolidated financial state-
ments is classified by corporate divisions and regions,
based on the Group’s internal reporting and organi-
zational structure. Segment reporting is designed
to enable a transparent view of the earnings power,
risks and rewards, net assets and financial position
of the individual components of the Group’s activi-
ties.
Reflecting the predominant organizational
structure of the Group, the primary reporting for-
mat is based on the Group’s corporate divisions.
Deutsche Post AG Group distinguishes between
the following corporate divisions:
MAIL
In addition to the transport and delivery of written
communications, the MAIL Corporate Division
increasingly positions itself as an end-to-end service
provider for the management of written commu-
nications.
EXPRESS
The EXPRESS Corporate Division is home to
Deutsche Post AG’s national and international parcels
and express activities. The Global Mail Business Divi-
sion is also allocated to this corporate division to
ensure common management of international mail
activities.
LOGISTICS
The LOGISTICS Corporate Division consists of the
Danzas subgroup with 320 companies. Customers
are offered a one-stop end-to-end service: air and
ocean freight,European overland transport and cus-
tom logistics solutions.
FINANCIAL SERVICES
The FINANCIAL SERVICES Corporate Division
covers Postbank’s activities. This corporate division
also provides pension payment services. It offers a
wide range of standardized banking services,includ-
ing payments, deposits, retail and corporate bank-
ing, fund products and – since September 1, 2000 –
investment securities services.
The information on the corporate divisions
is presented after eliminating intrasegment trans-
actions. Transactions between the corporate divi-
sions are eliminated in the Other/Consolidation
segment to ensure reconciliation with the amounts
in the consolidated financial statements. The Other/
Consolidation segment also includes amounts not
attributable to specific corporate divisions, such as
real estate and housing activities, and eBusiness.
8.2 Notes to the amounts of the segments by
corporate division (primary reporting)
•External revenue is the revenue generated by the
corporate divisions from non-Group third parties.
•Internal revenue is revenue generated with other
corporate divisions. Transfer prices for intragroup
revenue are determined on an arm’s length basis.
For services for which no external market exists,
transfer prices are based on fully absorbed costs.
The additional costs resulting from Deutsche Post
AG’s universal service obligation (nationwide retail
outlet network, delivery every working day), and
from its obligation to assume the compensation
structure as the legal successor to Deutsche Bundes-
post,are allocated to the MAIL Corporate Division.
From January 1,2001 a new collective pay agreement
for hourly workers has been effective,which for the
first time provides for wages common in the com-
petitive environment.Compensation (€134 million)
unusual in the competitive environment is included
there in favor of the other corporate divisions – in
particular EXPRESS with €115 million.