DHL 2005 Annual Report Download - page 105

e following table shows a breakdown of the FINANCIAL SERVICES
Corporate Division’s EBIT by segment component:
EBIT of the FINANCIAL SERVICES Corporate Division
€m
Deutsche
Postbank
group
Other
segment
compo-
nents Total
Deutsche
Postbank
group
Other
segment
compo-
nents Total
2004 2005
EBIT 683 31 714 756 34 790
Other/consolidation
e amounts for the corporate divisions are presented aer consoli-
dating intersegment transactions, which are eliminated in the Other/
consolidation column. e Other/consolidation column also in-
cludes activities not attributable to specic corporate divisions, such
as real estate and housing activities. In addition, to enable improved
management of the Group’s cross-segment service functions such as
IT services (ITS), aviation and hubs, these are no longer reported in
the corporate divisions, but in the Other/consolidation segment. e
reclassication took retroactive eect as of January 1, 2005.
• External revenue is the revenue generated by the corporate divisions
from non-Group third parties.
• Internal revenue is revenue generated with other corporate divi-
sions. If comparable external market prices exist for services or
products oered internally within the Group, these market prices
or market-oriented prices are used as transfer prices (arm’s length
principle). e transfer prices for services for which no external
market exists are generally based on incremental costs.
• e expenses for IT services provided in the IT service centers are
allocated to the corporate divisions by cause. at portion of the
expenses which cannot be passed on to the corporate divisions ac-
cording to the arm’s length principle continues to be included in the
reconciliation line. As compared to the previous year, the Other/
consolidation segment contains an amount of €164 million which
cannot be allocated to the EXPRESS or LOGISTICS segments.
• e ALS (Airborne Logistics Services) business area has been re-
classied from the EXPRESS segment to the LOGISTICS segment,
producing a gain on disposal of €59 million. A gain of €46 million
was recognized due to the reclassication of the Wilmington (USA)
hub from the EXPRESS segment to the Other/consolidation col-
umn.
• e additional costs resulting from Deutsche Post AG’s postal uni-
versal service obligation (nationwide retail outlet network, delivery
every working day), and from its obligation to assume the compen-
sation structure as the legal successor to Deutsche Bundespost, are
allocated to the MAIL Corporate Division.
• e segment income and expense of the FINANCIAL SERVICES
Corporate Division also include the Deutsche Postbank group’s
interest, fee and commission income and expense, because these are
allocated to the business operations of this corporate division.
• Segment assets are composed of noncurrent assets (excluding non-
current nancial assets) and current assets (excluding income tax
receivables, cash and cash equivalents, and current nancial instru-
ments). e receivables and other securities from nancial services
are reported under the FINANCIAL SERVICES segment. Pur-
chased goodwill is allocated to the corporate divisions.
• Segment liabilities relate to non-interest-bearing provisions and
liabilities (excluding income tax liabilities) and to liabilities from
nancial services.
• Segment investments relate to intangible assets (including pur-
chased goodwill) and property, plant and equipment.
• Depreciation, amortization and write-downs relate to the segment
assets allocated to the individual corporate divisions.
• Other non-cash expenses relate primarily to expenses from the rec-
ognition of provisions.
Segments by region
• e allocation of external revenue is based on the location of the
customers. Only revenue generated from non-Group third parties
is disclosed.
• Segment assets are allocated to the location of the assets. ey are
composed of the noncurrent assets (excluding noncurrent nancial
assets) and current assets (excluding income tax receivables, cash
and cash equivalents, and current nancial instruments) of the in-
dividual regions. Segment assets also include receivables and other
securities from nancial services, as well as purchased goodwill,
which are generally allocated on the basis of the domicile of the
Group companies.
• Segment investments are also allocated on the basis of the location
of the assets. ey include investments in intangible assets (includ-
ing purchased goodwill) and property, plant and equipment.
Income statement disclosures
10 Revenue and income from banking transactions
Revenue and income from banking transactions
2004 2005
€m
Revenue 36,781 38,267
Income from banking transactions 6,387 6,327
43,168 44,594
As in the prior-year period, there was no revenue or income from
banking transactions in scal year 2005 that was generated on the
basis of barter transactions.
e increase in revenue is primarily due to organic growth in the
LOGISTICS division as well as the revenue contribution from
KarstadtQuelle logistics and from companies consolidated for the
rst time in the year under review, such as Koba, Blue Dart and Ex-
press Couriers (see note 3).
e further classication of revenue by corporate division (business
segment) and the allocation of revenue and income from banking
transactions to geographical regions is presented in the segment re-
porting.
Deutsche Post World Net
101
Notes
Consolidated Financial StatementsAdditional Information