DHL 2006 Annual Report Download - page 146

Bonds
2005 2006
Nominal
coupon Issue volume Issuer
Carrying
amount/€m Fair value/€m
Carrying
amount/€m Fair value/€m
Bond 2002/2007 4.25% €636 million Deutsche Post Finance B.V. 645 649 634 637
Bond 2002/2012 5.125% €679 million Deutsche Post Finance B.V. 729 746 692 706
Bond 2003/2014 4.875% €926 million Deutsche Post Finance B.V. 978 1,002 960 948
Bond 2003 1.15%
US$230
million
DHL Holdings Inc. (USA) via Kenton County
Airport Board 158 158 142 142
Exchangeable bond
2004/2007 2.65%
€1,018
million
Deutsche Post Finance B.V., assumed by
Deutsche Post AG 994 994 0 0
3,504 3,549 2,428 2,433
In connection with the acquisition of Exel, the latter’s shareholders were also
oered loan notes instead of Deutsche Post AG shares or cash. e loan notes
(originally in the amount of  million) are reported under other noncurrent
nancial liabilities. As of December ,  Exel’s existing shareholders took
the rst termination opportunity to call loan notes in the amount of  million
pounds sterling.
e following table contains the terms and conditions of signicant individual
contracts reported under amounts due to banks:
Terms and conditions
2005 2006
Coupon Term Carrying amount/€m Fair value/€m Carrying amount/€m Fair value/€m
Deutsche Post International B.V., Netherlands 4.923 Dec. 2011 0 0 125 124
Deutsche Post International B.V., Netherlands 3-month floater June 2011 89 89 72 72
Deutsche Post International B.V., Netherlands 5.81 Feb. 2011 61 59 51 49
Deutsche Post International B.V., Netherlands 3.85 Apr. 2006 102 105 0 0
Deutsche Post International B.V., Netherlands 5.19 Mar. 2006 104 106 0 0
356 359 248 245
e above-mentioned liabilities due to banks are fully guaranteed by Deutsche
Post AG.
 million of the nance lease liabilities (previous year:  million)
relates to aircra leases entered into by DHL Operations B.V., the Netherlands,
with Barclays Mercantile Business Financing Limited, London. e interest
rate is .; the leases run until  and .
e increase in other current nancial liabilities relates to the loan raised by
Deutsche Post AG from the Bundes-Pensions-Service für Post und
Telekommunikation. In addition,  million is attributable to Deutsche
Post International B.V., the Netherlands, (previous year:  million) and
relates to QTE leases, as in the previous year.
Breakdown of financial liabilities
€m 2005 2006
Deutsche Post Finance B.V., Netherlands 2,350 2,286
Deutsche Post AG 1,240 1,040
Deutsche Post International B.V., Netherlands 478 335
Exel Group 451 233
DHL Operations B.V., Netherlands 410 419
Other Group companies 971 1,127
5,900 5,440
e following table compares the fair values and carrying amounts of the
nancial liabilities of Deutsche Post World Net:
Financial liabilities
2005 2006
€m
Carrying
amount Fair value
Carrying
amount Fair value
Bonds 3,504 3,549 2,428 2,433
Due to banks 985 988 806 803
Liabilities to Group companies 9 9 58 58
Finance lease liabilities 810 810 735 735
Other financial liabilities 592 578 1,413 1,389
5,900 5,934 5,440 5,418
Dierences between fair values and carrying amounts result from changes
in market interest rates for nancial liabilities of equivalent maturities and
risk structures.
Short maturities or marking-to-market means that there are no signicant
dierences between the carrying amounts and fair value of all other primary
nancial instruments. ere is no signicant interest rate risk because most
of these instruments bear oating rates of interest at market rates. e
dierences between the fair values and carrying amounts of the nancial
liabilities are therefore relatively minor. Details of existing credit lines can be
found in the Group Management Report in the nancial analysis section.
142
Deutsche Post World Net Annual Report 2006