DHL 2004 Annual Report Download - page 27

Download and view the complete annual report

Please find page 27 of the 2004 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.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Corporate Strategy
The program comprises over 100 individual projects that have the following goals at an
international level:
to achieve uniform branding,
to harmonize our sales structures,
to standardize our product range,
to integrate existing networks and
to optimize horizontal functions such as procurement and IT.
This enables us to improve our entire offering, systematically orient it to our customers’
needs, and substantially cut our costs.
The individual projects can be divided into two groups:
1. Value that we create at Group level and within the MAIL and FINANCIAL SERVICES
Corporate Divisions. We report on the latter in the sections on the corporate divisions
on pages 27 and 28.
2. Measures designed to more closely integrate the EXPRESS and LOGISTICS Corporate
Divisions under the joint DHL brand. You can find further examples in the sections
on the EXPRESS Corporate Division on page 31 and the LOGISTICS Corporate
Division on page 35.
Group-wide procurement was again one of the highest-priority initiatives in 2004. The large
number of subprojects described in the Group Management Report starting on page 74 has
allowed us to further standardize processes and effectively bundle our procurement volume.
We successfully completed numerous projects at Group and corporate division level
in the year under review, such as the Corporate Center & Overhead subprogram. Its goal
was to improve the efficiency of the work performed by Group headquarters and internal
service providers. The program succeeded in doing this by refocusing central functions,
defining service portfolios for 15 internal service providers and establishing productivity
goals. This enabled us to achieve considerable savings.
STAR gets results faster
We achieved successes in a range of key projects faster than previously expected. STAR
contributed € 439 million to consolidated earnings in the period under review. Since the
program was launched in November 2002, STAR has made an accumulated contribution
of € 862 million.
Overall, we are reiterating the projected earnings growth from STAR of at least €1.4
billion. We expect the Group’s profit from operating activities (EBITA) to reach at least
€ 3.6 billion in 2005. As planned, in 2005 we will focus more strongly on implementing
the measures required to integrate our networks in Europe.
Accumulated earnings contribution from STAR since November 2002
in € m
1,600
1,400
1,200
1,000
800
600
400
200
0
Q1Q4
Accumulated target for 12/ 31/ 2005:
at least €1,400 million
86
93 81 79
84
Q2
20032002 2004 2005
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
81
97
118
Accumulated target for 12/ 31/ 2004:
at least € 800 million
€ 337 million€ 86 million € 439 million
143 € 862 million (12/31/2004)
€ 86 million (12/31/2002)
€ 423 million (12/31/2003)
The Company
23
The CompanyGroup Management ReportConsolidated Financial StatementsAdditional Information