DHL 2005 Annual Report Download - page 56

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German mail prices are among the lowest in Europe, according to a comparative European
study by Deutsche Post. In addition to nominal prices for a standard letter (20 grams) in
the fastest category, the study also takes into account signicant macroeconomic factors,
such as purchasing power and labor costs.
Due to weak domestic demand, we were unable to maintain sales volumes in the business
customer segment and we also lost market shares to competitors. In the private customer
segment, it is becoming clear that letters are being replaced by electronic communications
media.
Mail Communication (Deutsche Post AG share) 2004 2005 +/– %
mail items (millions)
Business customer letters 7,515 7,216 –4.0
Private customer letters 1,459 1,398 –4.2
Total 8,974 8,614 –4.0
e Direct Marketing Business Division also experienced a dicult economic environ-
ment in the year under review. In this area, however, we were able to attract new custom-
ers thanks to intensied sales activities and so equal the previous year’s high gure with
revenue of €2,820 million.
Direct Marketing (Deutsche Post AG share) 2004 2005 +/– %
mail items (millions)
Infopost/Infobrief (addressed advertising mail) 6,870 6,889 0.3
Postwurfsendung/Postwurf Spezial
(unaddressed/partially addressed advertising mail) 3,846 3,904 1.5
Total 10,716 10,793 0.7
e Press Distribution Business Division is showing evidence of a trend change aer the
falling revenue gures of recent years: revenue for the period under review rose to €805
million, up from €797 million for the previous year.
We were once again pleased to record substantial growth in our international business.
Revenue in the Mail International and Value-added Services Business Divisions for the
year under review rose by 22.3% to €2,098 million (previous year: €1,715 million). is
primarily reects the initial inclusion of two acquisitions: we have consolidated revenues
from SmartMail Holdings LLC in the USA since May 28, 2004, and revenues from Koba
in France since January 1, 2005. We have also grown organically, for example at our Dutch
subsidiary Selekt Mail. e two newest business divisions now account for 16% of the
corporate division’s revenue.
We achieved our declared target gure with a prot from operating activities (EBIT) of
€2,030 million. Productivity increases due to STAR made a particular contribution to this,
as did higher revenue from the international mail business. Our return on sales for the pe-
riod under review amounted to 15.8%, again reaching the high level of the previous year.
Express business up less than expected
e corporate division’s revenue rose by 4.1% from €17,557 million to €18,273 million
year-on-year. Positive currency eects of €124 million and €115 million from acquisitions
contributed to the growth in revenue.
Annual Report 2005
52