DHL 2003 Annual Report Download - page 114
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The higher net other finance costs are primarily due to the
increase in interest cost on discounted provisions for pensions and
other provisions.
Income and expenses from the Deutsche Postbank group’s
banking transactions are not carried under net other finance costs.
Income – in particular in the form of interest, fee and commission
income, and income from equities and securities – is carried under
revenue and income from banking transactions (see note 9), while
expenses – in particular interest, fee, and commission expenses – are
carried under materials expense and expenses from banking trans-
actions (see note 11).
Income tax expense
The income tax expense is composed of the following items:
The income tax expense rose by €307 million, primarily as a
result of the increase in the consolidated net profit and the resulting
decrease in deferred tax assets from tax loss carryforwards at Deutsche
Post AG and the Deutsche Postbank group; this resulted in a Group
tax rate of 29.9% (previous year: 28.0%).
The reconciliation to the effective tax expense is shown
below, based on consolidated net profit before minorities and
income taxes, and the expected income tax expense:
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The difference between the expected and the effective income
tax expense is due in particular to temporary differences between
the carrying amounts in the IFRS financial statements and in the
tax accounts of Deutsche Post AG resulting from initial differences
in the opening tax accounts as of January 1, 1996. In accordance
with IAS 12.15 (b) and IAS 12.24 (b), the Group did not recognize
any deferred tax assets on these temporary differences, which relate
mainly to property, plant and equipment, and to provisions for
pensions and other employee benefits.
In accordance with IAS 12.88 in conjunction with IAS 37.33,
Deutsche Post AG has opted not to recognize deferred taxes from
loss carryforwards arising from the recognition of goodwill in the
opening tax accounts, as there is still substantial uncertainty regard-
ing the measurement of the goodwill for tax purposes.
The remaining temporary differences between the carrying
amounts in the IFRS financial statements and in the opening tax
accounts amount to €5.6 billion as of December 31, 2003 (previous
year: €6.2 billion).
The effects from section 8 b KStG (German Corporate
Income Tax Act) relate primarily to special funds of the Deutsche
Postbank group. The Other item contains the adjustments from
the German Flood Victims Act, as well as tax-exempt income and
nonallowable expenses.
Net profit for the period before minority
interest and extraordinary expense
In fiscal year 2003, Deutsche Post World Net recorded a net profit
for the period before minority interest and extraordinary expense
of €1,342 million (previous year: €1,590 million).
Minority interest
The profit for fiscal year 2003 attributable to minority shareholders
amounts to €38 million (previous year: €31 million), and losses
attributable to minority shareholders amount to €5 million (previous
year: €7 million).
Extraordinary expense
The extraordinary expense of €907 million resulting from the
European Commission’s state aid ruling was disclosed under this
item in the previous year. This expense was recognized gross of
the attributable taxes of €215 million.
Earnings per share
Basic earnings per share are computed in accordance with IAS 33
(Earnings per Share) by dividing consolidated net profit by the
average number of shares. Basic earnings per share for fiscal year
2003 were €1.18 (previous year: €0.59).
To compute diluted earnings per share, the average number
of shares outstanding is adjusted for the number of all potentially
dilutive shares. There were 25,701,258 stock options for executives
at the reporting date (previous year: 15,479,178), of which 213,991
were potentially dilutive (previous year: 0). Diluted earnings per
share were the same as basic earnings per share in the year under
review.
Dividend per share
A dividend of €490 million is being proposed for fiscal year 2003
(previous year: €445 million). Based on the 1,112,800,000 shares
recorded in the commercial register, this corresponds to a dividend
per share of €0.44 (previous year: €0.40). Further details of the
distribution can be found in note 35.
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Reconciliation
Income tax expense
in €m 2002 2003
Current income tax expense –179 –213
Current recoverable income tax 63 13
–116 – 200
Deferred tax expense (previous year: income)
from temporary differences 100 – 42
Deferred tax expense from the reduction in
deferred tax assets from tax loss carryforwards –250 –331
–150 – 373
–266 –573
in €m 2002 2003
Consolidated net profit before minorities
and income taxes 949 1,915
Expected income tax expense 379 764
Deferred tax assets from temporary differences
not recognized for
Initial differences –216 – 252
Goodwill amortization 97 127
Restructuring provisions 378 –119
Reversal of negative goodwill – 598 0
Deferred tax assets of foreign Group companies
not recognized for tax loss carryforwards 138 71
Effects from section 8 b KStG 108 7
Differences in tax rates at foreign companies –14 – 9
Other – 6 –16
Effective income tax expense 266 573