DHL 2002 Annual Report Download - page 131

46
Cash flow disclosures
The consolidated cash flow statement is prepared in
accordance with IAS 7 (Cash Flow Statements) and discloses
the cash flows in order to present the source and application
of cash and cash equivalents. It distinguishes between cash
flows from operating, investing and financing activities. Cash
and cash equivalents are composed of cash, checks and bank
balances with a maturity of not more than three months,
and correspond to the cash and cash equivalents reported on
the balance sheet. The effects of currency translation and
changes in the consolidated group are adjusted when calcu-
lating cash and cash equivalents.
Net cash from operating activities
Cash flows from operating activities are calculated by
adjusting net profit before taxes and extraordinary expense
for non-cash factors (net profit before changes in working
capital). Adjustments for changes in working capital result
in net cash from or used in operations (Cash flow I). Cash
flow I is then adjusted for interest and taxes paid and
received to produce net cash from or used in operating
activities (Cash flow II).
Net profit before changes in working capital fell by
€1,302 million year-on-year to €2,393 million. The main
reason for this was the €907 million from the EU state aid
proceedings reported as an extraordinary expense. However,
because the payment will not be made until January 2003,
it is reflected in the change in liabilities and does not affect
Cash flow I and Cash flow II.
Non-cash income and expenses relate to the reversal
of the negative goodwill at Postbank amounting to
€1,499 million (€212 million systematic amortization and
€1,287 million exceptional reversal), which is offset by non-
cash additions to restructuring and staff-related provisions
amounting to €1,600 million.
Cash flow I fell by €283 million (9.0%) year-on-year
to €2,850 million, and Cash flow II also fell by 7.0% from
€2,904 million to €2,702 million. This saw net cash from
operating activities decline overall in line with our profit from
operating activities, which fell by €291 million year-on-year
to €1,856 million.
44 Net cash used in investing activities
Cash flows from investing activities result from cash received
from disposals of noncurrent assets and cash paid for
investments in noncurrent assets. Net cash used in investing
activities amounted to €2,362 million in the year under
review (previous year: €2,419 million). Disposals of items
of noncurrent assets generated income for the Group of
€738 million (previous year: €1,049 million). €3,100 million
(previous year: €3,468 million) was spent on investments in
noncurrent assets. €1,256 million of this amount (previous
year: €1,240 million) was attributable to the acquisition of
companies, in particular the acquisition of the remaining
interests in DHL International amounting to €963 million
(purchase price less cash and cash equivalents acquired), and
the acquisition of DHL India (€32 million). Other significant
financial investments were the acquisition of additional shares
of DSL Holding AG i.A. (€59 million), the Danzas Cargo-
plan/ Cargoline group (€47 million), the Danzas SGS group
(€23 million) and Danzas UAE Logistics AB (€23 million).
The total cash and cash equivalents acquired with these
acquisitions amounted to €193 million. The acquisitions
were financed largely from operating cash flow.
The following assets and liabilities were acquired or
sold on the acquisition or divestiture of companies:
Acquisitions and divestitures
in €m 2001 2002
Acquisitions
Noncurrent assets 7 1,750
Receivables and other securities
from financial services 3,712 0
Other current assets (excl. cash and cash equivalents) 76 1,811
Provisions 14 350
Liabilities from financial services 3,508 0
Other liabilities 15 1,970
Divestitures
Noncurrent assets 0 0
Other current assets (excl. cash and cash equivalents) 6 0
Provisions 0 0
Other liabilities 6 0