DHL 2004 Annual Report Download - page 82

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The logistics market forecast is for air freight transport to grow by an average of
6% per year up until 2010. The highest increase is expected in Asia, with above-average
growth primarily being recorded for inner-Asian transport. Capacity bottlenecks could
lead to rate hikes. Further rate rises are also predicted for ocean freight, especially for
outbound Asian traffic. This development will not be slowed until the second half of the
year, when the latest generation of container ships are launched and freight capacities
increase accordingly.
Since interest rates are only expected to rise moderately in 2005, the pressure on
German banks to optimize their cost structures is unlikely to ease.
STAR on the home straight
The close of 2005 will see the completion of our value creation and integration program
as planned. Individual projects that continue after this point will become the responsibil-
ity of the corporate divisions at the end of the year.
STAR’s focus in 2005 is the physical integration of the network in Europe.
We will be introducing a global supplier management system for procurement to
ensure a standardized Group-wide procedure based on objective criteria for evaluating
and developing suppliers. After introducing the new operational procurement process
based on SAP EBP in Poland and the USA at the beginning of 2005, the system will be
extended to additional countries. When this project is completed, around 20 of the coun-
tries with the largest procurement volumes in Deutsche Post World Net will be working
with this software.
In 2005, our activities designed to optimize the Group’s legal structure will be con-
tinued and completed in most countries.
At DHL, we are starting to roll out our newly designed company uniforms world-
wide. By the end of 2005, they will have been issued to over 110,000 employees.
Further increase in EBITA planned
We estimate that the measures and initiatives as part of STAR will achieve an aggregate
earnings contribution of at least €1.4 billion by December 31, 2005.
We expect total Group EBITA for the coming year of at least € 3.6 billion.
As goodwill is no longer amortized as of fiscal year 2005, we are expecting ceteris
paribus, i.e. all else remaining constant, a correspondingly higher consolidated net profit.
We intend to share our good business development with our shareholders in the
future by paying a corresponding dividend, and thus to continue our current dividend
policy.
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