DHL 2003 Annual Report Download - page 132
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The following assets and liabilities were acquired on the
acquisition of companies:
Further details of the acquisitions can be found in note 3
“Consolidated group”.
Investments in other noncurrent assets fell by €360 million
year-on-year to €1,484 million (previous year: €1,844 million).
44.3 Net cash used in financing activities
Cash flows from financing activities result from the issue and
repayment of financial liabilities, and from distributions. In add-
ition, interest paid in the amount of €256 million (previous year:
€186 million) is included in cash flows from financing activities,
as this expense did not arise in the course of the Group’s operating
activities.
The proceeds from finance facilities raised, which totaled
€1,798 million (previous year: €2,810 million), were significantly
impacted by the proceeds from the bond issued by Deutsche Post
Finance B.V. in 2003 in the amount of €1 billion and a bond
issued by DHL Holdings (USA) Inc. in the amount of €196 million.
The bond issue by Deutsche Post Finance is aimed at the long-term
refinancing of liabilities. These proceeds were offset by the repay-
ment of financial liabilities in the amount of €1,401 million (previ-
ous year: €2,065 million), which related primarily to the repayment
of an EIB loan by Deutsche Post International B.V., as well as to
repayments by individual express and logistics companies. In
addition, a dividend of €445 million (previous year: €412 million)
was paid to shareholders of Deutsche Post AG, resulting in a
corresponding cash outflow in the period under review.
44.4 Cash and cash equivalents
Currency translation differences impacted cash and cash equivalents
in the amount of € – 49 million in the year under review (previous
year: € –19 million). The cash inflows and outflows described above
produced cash and cash equivalents of €3,355 million at year-end.
Cash and cash equivalents therefore grew by €520 million over the
prior-period comparable figure, with internal financing resources
remaining strong.
Other disclosures
Financial instruments
Financial instruments are contractual obligations to receive or
deliver cash and cash equivalents. In accordance with IAS 32
and IAS 39, these include both primary and derivative financial
instruments. Primary financial instruments include in particular
bank balances, all receivables, liabilities, securities, loans, and
accrued interest. Examples of derivatives include options, swaps,
and futures.
The Deutsche Postbank group accounts for most of the
financial instruments in Deutsche Post World Net. The risks and
derivatives of the Deutsche Postbank group’s financial instruments
are therefore presented separately below.
45.1 Risks and financial instruments
of the Deutsche Postbank group
45.1.1 Risk management system
The Deutsche Postbank group defines risk management as a system
that enables a systematic, permanent process across all areas of the
Deutsche Postbank group, based on defined objectives. This process
consists of strategy, analysis and evaluation, management, and
control of overall bank risks.
Risk management thus forms part of overall risk- and
earnings-based group management. The Deutsche Postbank group
aims to ensure that risks are entered into in a controlled manner in
terms of the group strategy and the available risk capital. An effect-
ive risk management system provides the necessary stimulus for
strategic and daily business decisions, and enables the responsible,
earnings-driven management of risk. The Deutsche Postbank group
measures this for its board departments and business divisions
using the ratio of capital employed to earnings, expressed by the
performance indicator RoE (return on equity).
The Management Board of Deutsche Postbank AG is respon-
sible for risk strategy, proper risk management organization,
monitoring the risk content of all transactions entailing risk, and
risk control.
The risk control units, which operate independently of
operating risk management, measure and assess group-wide risks
and ensure that limits are monitored and complied with.
Definition of risk categories and risk types
Price risk refers to potential losses from financial transactions that
may be triggered by changes in interest rates, volatility, foreign
exchange rates, and share prices. The changes in value are derived
from daily marking-to-market.
Counterparty risk relates to the risk of loss due to changes in
creditworthiness or default by a counterparty. Counterparty (default)
risk consists of credit (issuer) risk, country risk and counterparty
risk (settlement and replacement risk).
45
Acquisitions
in €m 2002 2003
Noncurrent assets 1,750 392
Receivables and other securities
from financial services 0 1
Other current assets
(excl. cash and cash equivalents) 1,811 721
Provisions 295 409
Other liabilities 1,970 911