DHL 2003 Annual Report Download - page 105
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Please find page 105 of the 2003 DHL annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Financial Statements
101
Notes
The consolidated joint ventures in fiscal year 2003 now relate
primarily to DHL Sinotrans International Air Courier Ltd., China
(DHL Sinotrans). Securicor, which was included here in the previous
year, was fully consolidated in July 2003. The table above includes
its proportionate contribution to revenue and EBITA for the first
half of the year only.
Reclassifications
The interest cost on discounted provisions for pensions and other
interest-bearing provisions measured in accordance with IAS 19 is
reported under net finance costs for the first time in fiscal year 2003.
For fiscal year 2003, this resulted in a €578 million increase in net
finance costs. This primarily relates to interest cost on discounted
provisions for pensions. The prior-year amount was adjusted accord-
ingly in the amount of €548 million.
In addition, the short-term deposits of DHL International
recognized in the previous year in the amount of €196 million
were reclassified from receivables and other assets to cash and cash
equivalents.
The following table shows the changes in the amounts of the
balance sheet and income statement items recognized in fiscal year
2002 following these reclassifications:
These reclassifications improve the presentation of the net
assets and results of operations.
Foreign currency translation
The financial statements of consolidated companies prepared 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. Assets and liabil-
ities 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 trans-
lation differences are taken directly to equity. Currency translation
differences of €102 million were recognized directly in equity in
fiscal year 2003 (previous year: €97 million). See also the statement
of changes in equity.
5
4
In July 2003, Deutsche Post World Net acquired all remaining
shares of Securicor Omega Holdings Ltd., Sutton, United Kingdom
(Securicor). The purchase price for this 50% of the shares of the
company amounted to €250 million. As a result, Securicor has been
fully consolidated since July. Goodwill amounted to €393 million as
of December 31. Before July 3, 2003, Securicor was proportionately
consolidated in line with the equity interest held at the time.
With the acquisition of Mayne Group Canada (Loomis), now
known as DHL Express Canada Ltd., with effect from January 31,
2003, DHL was able to further expand its market share in Canada.
The purchase price for this company was €96 million. Goodwill
amounted to €63 million as of December 31, 2003.
In December 2003, Deutsche Post World Net increased its
equity interest in Narrondo Desarrollo, S.L. (Guipuzcoana) by 24%
to 75%. Goodwill amounted to €224 million as of December 31, 2003.
Deutsche Post World Net acquired the Italian parcel company
Casa di Spedizioni Ascoli S.p.A., Milan, with effect from January 15,
2003. The purchase price amounted to €15 million. Goodwill in the
amount of €8 million was reported as of December 31, 2003.
Overall, around €1.5 billion was spent on acquisitions in
fiscal year 2003. The purchase prices of the companies acquired were
settled exclusively on a cash basis. Further details of cash flows can
be found in note 44. The significant companies acquired contrib-
uted €51 million to Group EBITA in fiscal year 2003.
50 subsidiaries, 27 joint ventures, and 6 associates have
been deconsolidated since December 31, 2002. Of these companies,
5 were sold, 22 were merged, and 18 were liquidated. The method
of inclusion or consolidation was changed for 38 companies. 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 50. A complete list of Deutsche Post AG’s share-
holdings 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 signifi-
cant consolidated joint ventures:
Reclassifications
in €m 2002 2002 Change
restated
Balance sheet
Receivables and other assets 6,168 5,972 –196
Cash and cash equivalents 2,639 2,835 +196
Income statement
Staff costs –13,772 –13,313 +459
Other operating expenses – 6,946 – 6,857 +89
Net other finance costs –115 – 663 –548
Joint ventures
in €m 2002* 2003*
Noncurrent assets 198 10
Current assets 165 39
Liabilities and provisions 153 18
Revenue 650 355
EBITA 37 32
* Proportionate amounts; all figures at December 31