DHL 2006 Annual Report Download - page 122

Segment reporting disclosures
Segment reporting was prepared in accordance with IAS  (Segment
Reporting). e presentation of specic data from the consolidated nancial
statements is classied by divisions and regions, based on the Group’s internal
reporting and organizational structure. Segment reporting is designed to
enable a transparent view of the earnings power, net assets, and nancial
position of the individual components of the Group’s activities and regions.
Reecting the Group’s predominant organizational structure, the primary
reporting format is based on the divisions. Deutsche Post World Net
distinguishes between the following divisions:
Segments by division
MAIL
In addition to the transport and delivery of written communications, the
MAIL Division is positioning itself as an end-to-end service provider for the
management of written communications. e division is divided into the
following business units: Mail Communication, Direct Marketing, Press
Distribution, Value-added Services and Mail International.
EXPRESS
e EXPRESS Division oers national and international courier, express and
parcel services (DHL EXPRESS) under the DHL brand. Eective July , the
European overland transport business – now the DHL Freight Business Unit
– was transferred from the EXPRESS Division to the LOGISTICS Division. As
part of the reorganization of the global express network, hubs and global
network aviation were removed from the SERVICES segment and transferred
to the EXPRESS Division. e prior-period amounts were restated accordingly.
In addition, the DHL Contract Logistics unit of DHL Freight & Contract
Logistics Ltd. was sold by the EXPRESS segment to the LOGISTICS segment at
a prot of  million.
LOGISTICS
e LOGISTICS Division comprises the national and international logistics
services of the DHL Global Forwarding (formerly DHL Danzas Air & Ocean)
and DHL Exel Supply Chain (formerly DHL Solutions) Business Units and,
since July , , the European overland transport business DHL Freight
under the DHL brand. As a result of the reallocation of the DHL Freight
Business Unit, the prior-period amounts had to be restated, increasing EBIT
for scal  by  million.
FINANCIAL SERVICES
e FINANCIAL SERVICES Division consists of the Deutsche Postbank Group’s
activities. Deutsche Postbank Group oers a wide range of standardized
banking services, including payments, deposits, retail and corporate banking,
fund products, and investment securities services. Eective January , ,
Deutsche Postbank AG took over DP Retail GmbH, thus acquiring  retail
outlets of Deutsche Post AG. e transfer of ownership led to a change of
employer for around , employees. e purchase price amounted to 
million. e retail outlets still owned by Deutsche Post AG are reported in the
SERVICES segment. In addition, the FINANCIAL SERVICES segment includes
the Pension Service.
e following table shows a breakdown of the FINANCIAL SERVICES
Division’s EBIT by segment component:
EBIT of FINANCIAL SERVICES
2005 2006
€m
Deutsche
Postbank Group
Retail outlets of
DP Retail GmbH Pension Service Total
Deutsche
Postbank Group Pension Service Other Total
EBIT 756 97 10 863 1,000 7 –3 1,004
e change in other segment components is due to the sale of the  retail
outlets now reported by the Deutsche Postbank Group.
SERVICES
e SERVICES segment contains the company’s Global Business Services with
the following areas: Legal, Insurance, Procurement, Finance Operations, IT
Services, Real Estate, Fleet Management, Global Customer Solutions and
Business Consulting. It also includes the Corporate Center and those retail
outlets still belonging to Deutsche Post AG. is segment also reports
Deutsche Post AG income and expenses which cannot be allocated to an
individual division. As part of the reorganization of the global express
network, hubs and global network aviation were removed from the SERVICES
segment with eect from July ,  and transferred to the EXPRESS segment.
e prior-period amounts were restated accordingly.
Consolidation
e amounts for the divisions are presented aer consolidating intersegment
transactions, which are eliminated in the consolidation column.
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Deutsche Post World Net Annual Report 2006