DHL 2002 Annual Report Download - page 96

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The first-time consolidation of DHL International had
the following effect on the net assets, financial position and
results of operations of the Group in the EXPRESS segment:
DHL International has been consolidated as a sub-
sidiary since January 2002. Deutsche Post AG acquired a
further 53.6% interest in DHL International during the
course of the year under review. This now gives us 100% of
the shares of the global market leader in the international
courier express business. The total purchase price for the
interests acquired in 2002 amounted to €1,130 million. The
aggregate goodwill resulting from the acquisitions amounted
to €1,742 million as of December 31, 2002.
In September 2002, Deutsche Post AG acquired an
additional 2% interest in the Spanish parcel delivery service
Narrondo Desarrollo San Sebastián S.L. (Guipuzcoana),
thereby giving us a majority interest. This means that the
Group now holds a 51% interest in the Guipuzcoana group.
Our interest in Guipuzcoana is now reported for the first
time as an investment in a subsidiary in the consolidated
financial statements. In previous years, the company was
proportionately consolidated, reflecting our equity interest
at the time.
Overall, we spent around €1.3 billion on acquisitions
in fiscal year 2002. The purchase prices of the companies
acquired were settled exclusively on a cash basis. The signifi-
cant companies acquired contributed €21 million to Group
EBITA in fiscal year 2002.
45 subsidiaries and four associates have been decon-
solidated since December 31, 2001. Four companies were
sold, 29 were merged and 12 were liquidated. This did not
materially affect the Group’s net assets, financial position
and results of operations.
A list of significant subsidiaries, joint ventures and
associates is presented in note 51. A complete list of
Deutsche Post AG’s shareholdings has been filed with the
commercial register of the Bonn Local Court.
The following table provides information about material
balance sheet and income statement items attributable to the
significant joint ventures:
The consolidated joint ventures in 2002 related
primarily to the companies of the Securicor group (Securicor
Omega Holdings Ltd., United Kingdom) and DHL Sinotrans
Express Ltd., China.
Foreign currency translation
The financial statements of consolidated companies pre-
pared in foreign currencies are translated into euros in
accordance with IAS 21 (The Effects of Changes in Foreign
Exchange Rates) using the functional currency method. The
functional currency of all foreign companies of Deutsche
Post World Net is the local currency, as the companies
operate independently in terms of their financial and
business activities and organizational structures (“foreign
entities”). Assets and liabilities are therefore translated at
the middle rates prevailing at the consolidated closing date,
while income and expenses are generally translated at
average rates for the year. The resulting currency translation
differences are taken directly to equity.
Goodwill resulting from the capital consolidation of
foreign companies is translated at the rates prevailing at the
transaction dates and amortized over its useful life.
4
Financial Statements
Notes
in €m 2001* 2002*
Noncurrent assets 237 198
Current assets 198 165
Liabilities and provisions 154 153
Revenue 772 650
*Amounts at December 31
Joint ventures
in €m DHL International
Assets 1) 3,682
Liabilities and provisions 1) 2,575
Revenue 1) 6,199
1) Amounts at December 31, 2002
EXPRESS