DHL 2004 Annual Report Download - page 63

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Equity was substantially strengthened by the consolidated net profit for the period
of €1,588 million. It was reduced by the amount of the dividend payment of € 490 million
for fiscal year 2003. At the balance sheet date, equity was 18.2% higher at € 7,217 million
(previous year: € 6,106 million).
The equity ratio rose accordingly to 4.7% (previous year: 3.9%). Overall, the Group
continues to enjoy a very sound equity structure. The return on equity (RoE) before taxes
amounted to 32.4% compared with 34.2% in the previous year. In respect of “Postbank
at equity” – i.e. without the banking operations – the equity ratio was 24.4% (previous
year: 21.9%) and the return on equity before taxes was 27.9% (previous year: 31.6%).
The ratio of equity to fixed assets rose from 38.3% to 45.0% for the Group and
from 31.0% to 40.0% for the “Postbank at equity” scenario. With respect to the latter, the
carrying amount of the investment in Postbank is reported under noncurrent financial
assets. For that reason, the ratio is lower than the value for the Group. The Group figure
is more suitable for comparative sector analyses.
Minority interest changed considerably, rising from € 59 million to €1,611 million.
Postbank’s IPO reduced the Group’s shareholding in Postbank from 100% to 66.8%.
33.2% of Postbank’s equity is now shown in the consolidated financial statements under
minority interest.
Provisions showed a slight overall decline of 1.8% to €12,439 million (previous
year: €12,673 million). Provisions for pensions and other employee benefits – the most
significant classification of provisions – fell by 7.4% to € 5,882 million (previous year:
€ 6,351 million). In addition, € 278 million of the STAR restructuring provision, estab-
lished in 2002, was utilized in the year under review. Other provisions rose slightly by
2.8% to € 4,965 million (previous year: € 4,831 million).
Liabilities fell in total by 2.9% to €132,090 million (previous year: €136,095 mil-
lion). This was principally due to the largest individual item, liabilities from financial
services, which fell by 5.1% to €117,026 million (previous year: €123,317 million). A
detailed commentary can be found in the annual report of Deutsche Postbank AG. Group
financial liabilities rose by € 491 million to € 5,240 million. The increase was attributable
in particular to the exchangeable bond on Postbank shares with an amount of €1,056
million, which we issued in the context of Postbank’s IPO. The increase was partially
offset by repurchases of bonds with an amount of € 269 million at their market price.
Financial liabilities are listed by maturity under item 40 of the notes to the consolidated
financial statements. Trade payables rose by 19.2% to € 3,285 million (previous year:
€ 2,755 million). Other liabilities also increased, namely by 24.0% from € 5,274 million to
€ 6,539 million. The rise is due in particular to Postbank’s subordinated debt , which was
€1,085 million higher at € 2,808 million.
As of December 31, 2004, we had bank credit lines of around € 4.1 billion at our
disposal. Together with its cash and cash equivalents, the Group has sufficient funds to
finance the further expansion of business operations.
A detailed commentary on our financial strength and the cash flow statement is
presented in item 44 of the notes to the consolidated financial statements.
Business Developments
Subordinated debt:
debt on the balance sheet
of a bank which is available
in the long term.
59
Group Management ReportGroup Management ReportConsolidated Financial StatementsAdditional Information