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Roadmap to Value
Five steps to value generation
Annual Report 2007
Revenue by region1)
€m
1,745
934
Germany
Rest of
Europe
Americas
Asia
Pacific
Other
regions
2007 2006 restated
5,765
5,580
10,813
11,130
20,161
18,072
25,028
24,829
1) Note 8.2.
Revenue by segment1),2)
€m
2,357
2,201
2007 2006 restated
10,426
9,593
25,739
24,405
13,874
13,463
15,484
15,290
MAIL
EXPRESS
LOGISTICS
FINANCIAL
SERVICES
SERVICES
1) Exluding Consolidation.
2) Note 8.1.
■
■
■

Table of contents

  • Page 1
    Annual Report 2007 Roadmap to Value Five steps to value generation

  • Page 2
    ...sales1) Consolidated net profit 2) Operating cash ï¬,ow (Postbank at equity) Net debt (Postbank at equity)3) Return on equity before taxes Earnings per share Dividend per share Number of employees5) Segments MAIL Revenue Profit from operating activities (EBIT) Return on sales1) EXPRESS Revenue Pro...

  • Page 3
    ... customers be even more successful in their markets. www.dpwn.com MAIL Deutsche Post delivers mail and parcels in Germany. It is an expert provider of dialogue marketing and press distribution services as well as corporate communications solutions. We operate a nationwide transport and delivery...

  • Page 4
    ... the international market leader in the air and ocean freight and contract logistics segments. To satisfy our customers' needs, we draw on our geographic coverage, multi-modal capabilities and specific skills in numerous sectors. www.dhl.com FINANCIAL SERVICES As the largest single retail bank...

  • Page 5
    ... an extensive capital markets programme. 2 12 15 19 The Group Key Figures /At a Glance Roadmap to Value Letter to our Shareholders Deutsche Post Shares Milestones of the Year Group Management Report 21 22 35 47 71 85 94 Overview Business and Environment Earnings, Financial Position and Assets and...

  • Page 6
    ... use further measures to make underperforming units more profitable. â- â- All segments will contribute to increasing EBIT â,¬m ≈150 ≈150 ≈200 ≈100 ≈100 ≈100 ≈100 ≈100 1,000 MAIL, FINANCIAL SERVICES EXPRESS LOGISTICS Corporate Centre/ Other1) 2008 2009 1) Including...

  • Page 7

  • Page 8
    ...currently major performance and steering metric - = Asset charge WACC1 x NAB2 Focus management attention on capital tied into their business = EBIT after asset charge EBIT after asset charge to become new key performance indicator at Deutsche Post World Net 1) Weighted average cost of capital...

  • Page 9

  • Page 10
    ...Value 3. Payout to shareholders 2007 dividend to increase by 20% â- At the Annual General Meeting, we will be proposing a dividend increase for 2007 from â,¬0.75 to â,¬0.90 per share. This represents a 20% rise on the previous year. We plan to increase the dividend in coming years broadly in line...

  • Page 11

  • Page 12
    ... be comparable over time. We plan to adapt our reporting structure accordingly. The SERVICES segment will be unbundled and all Global Business Services costs allocated to the operating divisions. The remaining parts of the SERVICES segment will be combined in the new Corporate Centre/Other segment...

  • Page 13

  • Page 14
    ...superior positions in high-growth regions to outperform market growth. The First Choice programme will ensure our customers' loyalty and thus also future growth. Spending on mergers and acquisitions is expected to stay at the current low level. The criteria for acquisitions of businesses or parts of...

  • Page 15

  • Page 16
    ...as their loyalty is a prerequisite of our profitable organic growth. The First Choice initiative gives usa frame of reference for systematically meeting customers' needs and will, I am convinced, bring about a shift in our management and corporate culture. Deutsche Post World Net Annual Report 2007

  • Page 17
    ... the marketplace. Second: The express business in the United States remains flawed. The improvements made at the start of 2007 were undone as the economy faltered at the year-end. We have already adopted measures to improve performance. However - and I say this in all openness - the situation as it...

  • Page 18
    ... we have embarked on a course that will help us become the most attractive investment in the industry and the preferred provider for customers throughout the world. Bonn, 29 February 2008 Yours sincerely, Dr Frank Appel Chairman of the Board of Management Deutsche Post World Net Annual Report 2007

  • Page 19
    ... 8.9%. Our share data 2004 Year-end closing price High Low Number of shares Market capitalisation Average trading volume per day Annual performance with dividend Annual performance excluding dividend Beta factor2) Earnings per share3) Cash ï¬,ow per share 4) Price/earnings ratio5) Price/cash ï¬,ow...

  • Page 20
    ... 2007 Aug. 2007 Sep. 2007 Oct. 2007 Nov. 2007 Dec. 2007 30-day moving average opening or closing price opening or closing price the highest price for the week body is black if stock closed lower, body is white if it closed higher the lowest price for the week Deutsche Post World Net Annual Report...

  • Page 21
    ... 4.0% Switzerland 3.2% Other European countries 8.3% Other regions 1) The chart refers to institutional investors named in the share register. Their share of the free ï¬,oat was 50.9% on the reporting date. Source: Thomson Financial As at December 2007 Deutsche Post World Net Annual Report 2007

  • Page 22
    18 Deutsche Post World Net Annual Report 2007

  • Page 23
    ... plans to open around 600 outlets in the new Postpoint format in Germany. October Williams Lea takes over Deutsche Post's document management business with over 2,500 employees in Germany. November Germany's federal network agency approves Deutsche Post's pricing proposal. Prices for the domestic...

  • Page 24
    ...German commercial code) and explanatory report Remuneration of the Board of Management and the Supervisory Board Economic parameters Strategy and goals Internal Group management Earnings, Financial Position and Assets and Liabilities Revenue and earnings performance Financial position and assets and...

  • Page 25
    ...) Return on sales1) Consolidated net profit excluding minorities Earnings per share Dividend per share 1) EBIT/revenue. 2007 63,512 3,202 5.0 1,389 1.15 0.90 +/- % 4.9 -17.3 -27.5 -28.1 20.0 â,¬m â,¬m % â,¬m â,¬ â,¬ 60,545 3,872 6.4 1,916 1.60 0.75 Deutsche Post World Net Annual Report 2007

  • Page 26
    ...increase the flexibility of our business, improve service quality and leverage economies of scale and cost benefits. Segments and business units Deutsche Post World Net comprises four divisions. In 2007, the reporting segments were: â- MAIL • MAIL Germany • MAIL International • PARCEL Germany...

  • Page 27
    ... company. The Board of Management is not aware of any agreements between shareholders which would limit voting rights or the transfer of shares. • Deutsche Post AG • Deutsche Postbank AG â- Brand names Structure in accordance with brand names used in customer communication • Deutsche Post...

  • Page 28
    ... is standard business practice in Germany. The 2005 authorised capital allows the company to acquire companies and shareholdings flexibly, without recourse to the capital market. The authorised capital is equivalent to less than 15% of the share capital. Deutsche Post World Net Annual Report 2007

  • Page 29
    ... Group Management Report 25 New, no-par value registered shares may only be issued from Contingent Capital II (Article 5(3) of the Articles of Association) in order to service the subscription rights granted in accordance with the 2003 Stock Option Plan. To this end, the company's share capital...

  • Page 30
    ... for commercial property was especially high. In addition, export activity was aided by both the healthy global economy and the weak US dollar. The 2.2% advance in gross domestic product (GDP) was substantially lower than the previous year's rise (2.9%). Deutsche Post World Net Annual Report 2007

  • Page 31
    ...the labour market was bolstered by the approximately 5% rise in gross fi xed capital formation, private consumption faltered due to the significant increase in value-added tax from 16% to 19% at the start of the year, amongst other reasons. Brent Crude spot price and euro/US dollar exchange rate USD...

  • Page 32
    ... long-term interest rates remain low, the climate for corporate bonds has deteriorated appreciably. Apprehension in financial markets has made investors more risk averse and risk premiums have increased significantly as a consequence, even for high-quality corporate bonds. International trade...

  • Page 33
    ... arena despite high oil and energy prices. However, global and complex supply chains give rise to new risks which companies can counter only with the aid of capable logistics partners. 2. Liberalisation The member states of the European Union are obliged to open up their mail markets fully to...

  • Page 34
    ... the overriding corporate strategy. Roadmap to Value On 8 November 2007, the Group initiated its Roadmap to Value, an extensive capital markets programme geared to achieving a sustained increase in enterprise value. The idea is to improve profitability, increase cash generation and give shareholders...

  • Page 35
    ... units in order to reduce waiting times. First Choice remains a key component of our growth strategy. We now intend to focus on smaller countries whilst at the same time integrating employees more closely into the programme. Internal Group management, page 34 Deutsche Post World Net Annual Report...

  • Page 36
    ... profit as an additional earnings performance indicator alongside EBIT in our value-based Group management system. Economic profit measures the value we create for shareholders in operating activities, taking into account the cost of capital employed. Deutsche Post World Net Annual Report 2007

  • Page 37
    ... Deutsche Postbank Group at equity and the interest component of operating lease expenses. Taking net operating profit after taxes and deducting the total cost of capital (weighted average cost of capital times average net assets employed) gives economic profit. Economic profit (Postbank at equity...

  • Page 38
    ... new performance metric will enhance the focus on cash generation. This means we can make better use of our strengths and more easily identify scope for improvement to boost the value of the company and returns for shareholders. + Goodwill Net asset base Deutsche Post World Net Annual Report 2007

  • Page 39
    ...US-American company Polar Air Cargo Worldwide, Inc.; the company has been included as an associate in the consolidated financial statements. • On 31 December 2007, we purchased all shares in the Israeli company FC (Flying Cargo) International Transportation Ltd., Tel Aviv. • The waste management...

  • Page 40
    ... on the assets of the EXPRESS business in the Americas region. The prioryear earnings figure contained non-recurring income of â,¬375 million. Adjusted for these factors, profit improved by 7.6%. Consolidated EBIT â,¬bn 3.8 3.0 3.9 3.2 04 05 06 07 Deutsche Post World Net Annual Report 2007

  • Page 41
    Earnings, Financial Position and Assets and Liabilities Group Management Report 37 Net finance costs closed at â,¬1,010 million, a slight improvement on the previous year (â,¬1,030 million). In 2006, interest and measurement effects from the exchangeable bond on Postbank shares was responsible for...

  • Page 42
    ...in business) of 27 April 1998. Aims Our principal goal is to minimise the cost of capital and financial risks, whilst safeguarding the Group's lasting financial stability and flexibility. In order to maintain its unrestricted access to the capital markets, the Group continues to seek a credit rating...

  • Page 43
    ... Position and Assets and Liabilities Group Management Report 39 The Group's unsecured fi rm credit lines total around â,¬4.2 billion, of which some â,¬398 million had been used as at 31 December. Our banking policy seeks to spread the volume of transactions widely and to foster long-term business...

  • Page 44
    ...' balance sheets, income statements and cash flow statements. Qualitative factors, such as industry particularities and corporate strategy, are also taken into account. Our creditworthiness is regularly reviewed by the international rating agencies Standard & Poor's, Moody's Investors Service...

  • Page 45
    ... in countries where foreign exchange transactions are unrestricted. The financial liabilities disclosed in our balance sheet break down as follows: Financial liabilities, 2007 (Postbank at equity) â,¬m Bonds Due to banks Finance lease liabilities Liabilities to Group companies Other financial...

  • Page 46
    ...We also installed Paketboxes that allow customers to drop off franked parcels and small packets. Sorting, franking and wrapping machines were purchased for production purposes in the international mail business, and its information technology was expanded. Deutsche Post World Net Annual Report 2007

  • Page 47
    ... transport services, warehousing solutions and the associated information systems. Spending focused on the United Kingdom, Germany, the USA, Canada and South Africa. In the DHL Global Forwarding business, we invested in the facilities of buildings and IT infrastructure and, in the DHL Freight...

  • Page 48
    ...outflow of â,¬757 million). The increase in interest paid is mainly due to the modified, gross disclosure of financial derivatives from the beginning of 2007. There was a parallel increase in interest received as part of net cash from investing activities. Deutsche Post World Net Annual Report 2007

  • Page 49
    ... as set out above, cash and cash equivalents decreased by â,¬422 million compared with 1 January 2007, to â,¬1,339 million. Assets and liabilities Consolidated balance sheet Total assets increased compared with the previous year-end by â,¬17,768 million to â,¬235,466 million. The main factors in...

  • Page 50
    ... as an investment accounted for using the equity method. Net debt comprises financial liabilities less cash and cash equivalents, current fi nancial instruments, long-term deposits and financial liabilities to minority shareholders of Williams Lea. The figure decreased with the scaling back of...

  • Page 51
    ... Q4 2007 +/- % MAIL Profit from operating activities (EBIT) Revenue of which Mail Communication Dialogue Marketing (formerly Direct Marketing) Press Services (formerly Press Distribution) Parcel Germany Global Mail/Corporate Information Solutions Consolidation/Other EXPRESS Profit or loss from...

  • Page 52
    ... We deliver Germany's mail. The around seventy million items we carry on average every working day make us Europe's largest postal company. Our range of mail products for private and business customers extends from standard letters to merchandise. We also offer services such as cash-on-delivery and...

  • Page 53
    ... day in Germany and seek to make access to our services as simple as possible for customers. We have developed special solutions tailored to the segments in which our business customers operate. We support mail order companies, for example, in transporting their merchandise to consumers and carrying...

  • Page 54
    ... tougher, we sustained a market share of 14%. We thus defended our position on a par with the United States Postal Service - amongst other things, by increasing the volume of mail from Germany, Austria, Switzerland and the USA. Expertise in information exchange Every day, companies need to process...

  • Page 55
    ... more flexible pricing for business customers. There are currently no plans to impose value-added tax on mail carried under the postal universal services obligation. Extending range of services Deutsche Post has long since emerged as more than a company that simply carries and delivers mail and...

  • Page 56
    ... European Union." Dr Frank Appel, MAIL International Revenue and earnings performance Since the start of the 2007 financial year, we have been reporting on the Parcel Germany unit in the MAIL Division; the prior-year figures were restated accordingly. The division once again increased its revenues...

  • Page 57
    Divisions Group Management Report 53 Mail Communication (Deutsche Post AG share) mail items (millions) 2006 7,011 1,369 8,380 2007 6,764 1,348 8,112 +/- % -3.5 -1.5 -3.2 Business customer letters Private customer letters Total In the regulated mail sector, we kept our prices stable although ...

  • Page 58
    ...parcels Private customer parcels Total Revenue growth in international mail business Once again, the strongest growth was posted in our international business. Revenue in the Global Mail and Corporate Information Solutions units rose by 14.4%, from â,¬2,917 million to â,¬3,338 million. A key factor...

  • Page 59
    Divisions Group Management Report 55 EXPRESS Business units and market positions Globalisation acts as a mainspring of network expansion The global express market is growing at an annual average rate of 6% to 8%, as globalisation fuels the expansion of worldwide trade, and more and more shipments ...

  • Page 60
    ... a special position as the largest express market. It is connected to the world's principal trade lanes. Some 47% of all domestic and international DHL shipments are billed in the United States, where half of our 200 largest customers are based. In our global business, offering a high-performance...

  • Page 61
    ... co-operation with Colography Group, 2007 international express markets - including the region's fourteen largest economies - we hold by far the largest market share (34%). We have made it even easier for customers to access our services by increasing the number of service points and extending the...

  • Page 62
    ... The core element of our strategy is the international air traffic network. Competitive pricing and a first-rate service on all the major international trade routes is the target. We employ specialist teams to ensure delivery of the best possible performance, profitability and growth on 74 important...

  • Page 63
    ... positive at 0.6%. The enhanced performance of our Ground and International products was unable to make good the sharp decline in the Domestic Air business - a pattern which became apparent in the second half-year in particular as economic activity waned. Deutsche Post World Net Annual Report 2007

  • Page 64
    ... as revenue stagnated and the demand shifted in favour of lower-margin products. The return on sales for the EXPRESS business climbed from 2.1% to 3% when measured before the extraordinary impairment loss on non-current assets in the Americas region. Deutsche Post World Net Annual Report 2007

  • Page 65
    ... us to track goods in transit at all times, providing customers with maximum visibility and control. On request, we also develop customised programmes such as integrated order management. Business units and products â- DHL Global Forwarding • Air freight • Ocean freight • Industrial projects...

  • Page 66
    ... by sharing IT systems, teaming up for joint product offerings and delivering reliable transport solutions to all of these units - thus leveraging the purchasing power and competence of DHL Freight for the whole Group. 1) Company estimates. Sources: annual reports, press releases, company websites...

  • Page 67
    ...employees alike. There continues to be increased collaboration across all DHL business units, with our customers benefiting from our ability to bundle together products and services from one provider to create seamless support for their critical business needs. Deutsche Post World Net Annual Report...

  • Page 68
    ...market growth of only around 4%. Revenue decreased slightly due to negative impacts from currency effects and lower freight rates on key trade lanes. Our business performed well, above all in Europe, the Middle East and Africa. DHL Global Forwarding: revenue by segment â,¬m Air freight Ocean freight...

  • Page 69
    ... end of the year 2007, delivering synergies in line with expectations. DHL Exel Supply Chain: revenue by regional split, 2007 6% Asia Pacific 4% Latin America 1% Middle East/Africa 35% UK 32% Mainland Europe 22% North America Gross profit by business unit, 2007 â,¬m 2,177 DHL Global Forwarding...

  • Page 70
    ... companies offer their customers basic Postbank products such as current and savings accounts. The German retail banking market remains fiercely competitive. Postbank has successfully held its own here as Germany's largest single retail bank. In terms of customer numbers, it's market share increased...

  • Page 71
    .... Financial asset management Postbank invests its liquid funds in financial markets. Its Financial Markets unit is acknowledged as an efficient service provider in managing interest rate, currency and share price risk. Strategy and goals Expanding business with existing customers Postbank plans to...

  • Page 72
    ... other resources, a multi-client platform for handling building loans. Developing investment products The Financial Markets Business Unit - Postbank's innovation driver - will focus in future on developing products for private and corporate customers. Deutsche Post World Net Annual Report 2007

  • Page 73
    ...from â,¬4,117 million to â,¬4,253 million. The balance sheet-related revenues - net interest income, net trading income and net income from investment securities - increased by 4.2%, from â,¬2,710 million to â,¬2,824 million. Despite an inhospitable interest rate climate, net interest income rose by...

  • Page 74
    ... to the high level of effectiveness and exemplary cost structure in Legal Services. Human Resources Operations is set to provide payroll accounting for employees in the various regions along with centralised human resources management and made a start in 2007 with Germany, Asia and the United States...

  • Page 75
    ... the first time. Number of employees 2006 At year-end Headcount1) Full-time equivalents2) By division MAIL EXPRESS LOGISTICS FINANCIAL SERVICES3) SERVICES By region Germany Europe (excluding Germany) North, Central and South America Asia Pacific Other Average for the year Headcount Hourly workers...

  • Page 76
    ...a social plan agreed with the General Works Council. Excellent health management At 6.3%, the illness rate at the Deutsche Post Group in Germany remains at a low level. This performance indicator is computed using a new method whereby part-time staff are converted to full-time employees and weekends...

  • Page 77
    ..., our employees developed measures relating to everyday work experiences. Alongside the binding terms of reference introduced by the Code of Conduct in summer 2006, we launched an internet-based information tool in spring 2007. Strategy and goals, page 32 Deutsche Post World Net Annual Report 2007

  • Page 78
    ... Communication, the Swedish market research institute, it once again reached the number one spot in both Germany and Europe. Each year, we advertise more than 19,000 jobs online and our database already encompasses over half a million candidates. dpwn.com/career Deutsche Post World Net Annual...

  • Page 79
    ...of the International Business Leadership Programme in 2007. Some 100 managers from twenty countries took the opportunity to meet and talk to the Group's Board members and executives, as well as representatives of other companies. The participants honed their leadership skills through active learning...

  • Page 80
    ...äckchen (small packet plus postage) for retail customers, online franking and parcels for mail order customers. In January 2007, we also began offering climate-neutral express delivery services to business customers in Europe. dpwn.com/sustainability Deutsche Post World Net Annual Report 2007

  • Page 81
    ... consolidate shipments and optimise route planning. The infrastructure of our new central air freight hub for Europe, in Leipzig, will emit about 3,000 fewer tonnes of CO2 each year than conventional systems, thanks to photovoltaic technology and cogeneration. More than 35% of our employees now work...

  • Page 82
    ... and regional procurement managers report to the head of Corporate Procurement. This line reporting structure enables us to pool our needs worldwide while satisfying the service and quality requirements of internal customers. We seek continuously to improve our performance. Our success in 2007 was...

  • Page 83
    ... â- Private customers: 39 million â- Business customers: 3 million â- Letters in Germany: 70 million per working day â- Parcels in Germany: 2.5 million per working day â- International items transported: 7,457 million â- Production facilities: 162 Deutsche Post World Net Annual Report 2007

  • Page 84
    ... further yardstick of quality. In Germany, we employ environmental management systems in both our mail and parcel businesses. Within the framework of our GOGREEN initiative, we offer private and business customers climate-neutral shipping options. Express services driven by customer satisfaction The...

  • Page 85
    ... media and our customers, including: • "Best International Express Operator 2007" from the magazine Air Cargo Weekly. • "International Express Operator of the Year" in the UK for the third year in succession. • The "Mobile 2007" award in the Polish transport business. • "Best Company...

  • Page 86
    ... â- Private mortgage lending: â,¬68.0 billion Strategy and goals, page 31 Retail outlets in figures â- Deutsche Post employees: 6,939 â- Total outlets: 13,526 â- Own outlets: 5,440 â- Partner outlets: 8,086 â- Average weekly opening hours: 42 Deutsche Post World Net Annual Report 2007

  • Page 87
    ... three brands: Deutsche Post, DHL and Postbank. Each stands for high-quality products and services, and market research studies have confirmed that each is well established amongst its individual target groups. The awareness of Deutsche Post in Germany amongst both private and business customers has...

  • Page 88
    ... campaigns, trade fair presentations, market research, internal communications, press relations and sales support. In keeping with its global presence, the DHL brand attracted around half of the development budget. A quarter was earmarked for each of the German domestic brands, Deutsche Post and...

  • Page 89
    ... and risks is supported within Deutsche Post World Net by a Groupwide opportunity and risk management process. The objective is to strengthen the Group's firmly established culture of tackling risks and opportunities proactively in order to secure our business success for the long term. The...

  • Page 90
    ...-specific risks Our business success substantially depends on the financial health of our customers. Despite turbulence in the fi nancial markets, the world's countries are expected on average to sustain their GDP growth, with particularly strong growth rates in emerging and developing economies...

  • Page 91
    ...entails risks for Deutsche Post AG due to increased competition in Germany, it also opens up new opportunities in other European mail markets. In 2007, cross-border mail in Europe between Deutsche Post AG and fi fteen other western European postal operators was governed by the REIMS II agreement and...

  • Page 92
    ... would lead to a decrease in revenue and earnings. Business strategy risks Deutsche Post World Net continues to focus on meeting the needs of its customers at all times. To do this, we aim to make optimum use of our global platform. In regional expansion of the services network, priority is given to...

  • Page 93
    ... processes, we set high quality standards. We are also optimising and rendering more flexible the costs of our transport and delivery network. Consistent customer focus in conjunction with sales and marketing activities additionally reduce the risk of loss of market share. The EXPRESS Division is...

  • Page 94
    ... performance assessment that is standardised Group-wide. These are linked to human resources development activities specially tailored for each employee target group. The increasing internationalisation of our business and the growing demands on management Deutsche Post World Net Annual Report 2007

  • Page 95
    ...If despite all efforts Deutsche Post AG suffers substantial losses in market share, jobs may come under threat within the Group. Information technology risks Information technology is an integral part of our Group's production and service processes. Our business performance therefore depends heavily...

  • Page 96
    ...DOT regulations. A similar review of ASTAR Air Cargo Inc. was decided positively by the DOT in 2003/2004. External audits are currently underway at DHL Express (USA) and Airborne Inc. in line with the US unclaimed property laws. These laws state that abandoned assets must either be returned to their...

  • Page 97
    ... upon the company's ability to continue as a going concern. Nor are any such risks apparent in the foreseeable future. For a description of the risk position of Deutsche Postbank AG, please refer also to the Postbank Group's risk report. ir.postbank.com Deutsche Post World Net Annual Report 2007

  • Page 98
    ... for parts of our Group's global IT operations to HP Services. Under the terms of the agreement, we expect to save at least â,¬1 billion over the next seven years by driving down overall IT costs and better leveraging IT resources needed to run the business and serve customers. The companies expect...

  • Page 99
    ...it in the advertising market as a whole. The press services market is likely to contract somewhat because of the increasing use of new media. We are seeking to maintain our revenue position here also by drawing on the growing significance of subscriptions. Deutsche Post World Net Annual Report 2007

  • Page 100
    ... the international trade lanes to Europe and the USA. In North America, we are planning to develop our air and ground-based shipments between the United States, Canada and Mexico and thus enhance the networking of our infrastructure in the NAFTA region. Deutsche Post World Net Annual Report 2007

  • Page 101
    ...from 1 January 2008. All costs of Global Business Services will be allocated to the operating divisions. The result will be a clean Corporate Centre/ Other segment, on which we will report starting in the first quarter of 2008. Strategy and goals, page 30 Deutsche Post World Net Annual Report 2007

  • Page 102
    ... years, the Group intends to increase dividends broadly in line with underlying earnings growth. In addition to that the Group will consider other methods of cash return, such as share buybacks once proceeds from asset disposals reach â,¬1 billion. Deutsche Post World Net Annual Report 2007

  • Page 103
    ... Division, we will continue to invest chiefly in customised transport services, appropriate warehousing solutions and the associated information systems. In view of the targeted business development, we expect capital expenditure to rise overall in the medium term. Postbank will be primarily...

  • Page 104
    ... Value capital markets programme, which we view as a further pillar of our future business success. Our broad range and large geographical reach already make us the logistics provider of choice for discerning and in many cases globally operating customers. Our goal is to become the world's preferred...

  • Page 105
    ... in open markets. The EXPRESS Division relies on strong regional units linked by a global network. We are optimising this network on an ongoing basis to secure our competitive position and hence our future success. Current major projects include the relocation of our central European air hub from...

  • Page 106
    ... German mail market due to its complete liberalisation, the modified price regulation system, the exemption from value-added tax for providers of a universal service and the minimum wage. All major decisions affecting the company were discussed in detail with the Board of Management, which informed...

  • Page 107
    ... Deutsche Post World Net and Deutsche Luft hansa AG to create a freight airline. On 7 November 2007, in an extraordinary meeting, the Supervisory Board debated at length the new capital markets programme presented to the general public on 8 November 2007. Deutsche Post World Net Annual Report 2007

  • Page 108
    ..., individual Board of Management members gave presentations on the business performance of their respective divisions for discussion by the committee. Key topics included the express business in the United States, the mail business in Germany as well as the impact of the sub-prime credit crisis on...

  • Page 109
    ... Audit Committee, the Supervisory Board reviewed the annual and consolidated financial statements and the management reports for the financial year 2007 in the financial statements meeting. The auditors' reports were made available to all Supervisory Board members and were discussed intensively at...

  • Page 110
    ... and Global Business Services. On 1 October 2007, Dr Frank Appel took charge of the LOGISTICS Division, MAIL International, Corporate Regulation Management, Global Customer Solutions and the First Choice programme. On 18 February 2008, Dr Klaus Zumwinkel resigned from office. The Supervisory Board...

  • Page 111
    ... 2007) • Deputy ver.di Regional District Head, Regional District of Baden-Württemberg (until 27 April 2007) • Project Manager, Postal Services, Forwarding Companies and Logistics section, ver.di Regional District of BadenWürttemberg (since 28 April 2007) Deutsche Post World Net Annual Report...

  • Page 112
    108 Top left to bottom right: Dr Frank Appel, John Allan, Jürgen Gerdes, Dr Wolfgang Klein, John P. Mullen, Walter Scheurle Deutsche Post World Net Annual Report 2007

  • Page 113
    ..., Global Business Services Born in 1948, member of the Board of Management since 2006, appointed until December 2010, responsible for Finance including Controlling, Corporate Accounting and Reporting, Investor Relations, Corporate Finance, Corporate Internal Audit/ Security, Taxes, as well as Global...

  • Page 114
    ...Board of Directors), until 30 June 2007 • Williams Lea Group Ltd.1) (Board of Directors), until 30 June 2007 • Membership of supervisory boards required by law • Membership of comparable supervisory bodies of German and foreign companies 1) Group company Deutsche Post World Net Annual Report...

  • Page 115
    ... KMS AG (Chair) • KMS Asset Management AG (Chair) • SIREO REAL ESTATE ASSET MANAGEMENT GmbH (Advisory Board) â- Elmar Toime • Blackbay Ltd., United Kingdom (Non-Executive Director) • SKYCITY Entertainment Group Ltd., New Zealand (Non-Executive Director) Left in 2007 â- Dr Hubertus von Gr...

  • Page 116
    ...of Management and Supervisory Board members in the supervisory bodies of other companies may be found on pages 110 and 111. The Supervisory Board's report on its activities in fi nancial year 2007 is published on page 102. investors.dpwn.com postbank.com Deutsche Post World Net Annual Report 2007

  • Page 117
    ... and internal regulations. Based on the company's corporate values, the Board of Management has therefore introduced a Code of Conduct for the employees which all executives are required to sign. As part of our Group-wide compliance system, we have set up a Global Values Office and Regional Values...

  • Page 118
    ...appropriate, taking into account the company's results, the industry in which it operates and its future prospects. The remuneration of the Board of Management is performance-based and comprises fi xed and variable elements as well as long-term incentives. Deutsche Post World Net Annual Report 2007

  • Page 119
    ... stock appreciation rights (SARs) issued on the basis of a long-term incentive plan. The remuneration paid to active members of the Board of Management in the financial year 2007 totalled â,¬15.70 million (previous year: â,¬18.50 million). Th is amount comprised â,¬8.68 million in non-performance...

  • Page 120
    ...difference between the issue price of the SAR and the closing price of the Deutsche Post share on the last trading day before the exercise date. As in the past, the members of the Board of Management must each invest 10% of their annual target salary in Deutsche Post shares. The number of SARs to be...

  • Page 121
    ... contractual arrangements depends either on the period of service or the periods of appointment on the Board of Management. Subsequent pension benefits will be adjusted (increased or decreased) to reflect changes in the consumer price index in Germany. Deutsche Post World Net Annual Report 2007

  • Page 122
    ... pension level % 75 50 75 50 60 50 75 60 75 Service cost for pension obligation Financial year 2007 â,¬ 01) 334,558 566,584 76,011 184,414 652,498 01) 627,516 1,623,938 1) Ongoing financing complete. 2) Member of the Board of Management until 30 September 2007. 3) Member of the Board of Management...

  • Page 123
    ... consolidated net profit per share of fi nancial year 2006. The remuneration falls due for payment at the end of the 2010 AGM. Taken individually, the two variable remuneration components may not exceed the amount of the fi xed remuneration of â,¬20,000. Deutsche Post World Net Annual Report 2007

  • Page 124
    ... than the previous year. Shareholdings of the Board of Management and Supervisory Board Effective 31 December 2007, shares held by the Board of Management and Supervisory Board of Deutsche Post AG amounted to less than 1% of the company's share capital. Deutsche Post World Net Annual Report 2007

  • Page 125
    ...the balance sheet date 57. Auditors' fees 58. Miscellaneous 59. Additional information: Consolidated financial statements including the Deutsche Postbank Group at equity Consolidated Financial Statements 188 Responsibility Statement 189 Auditor's Report Deutsche Post World Net Annual Report 2007

  • Page 126
    ... income Other finance costs Net other finance costs Net finance costs Profit before income taxes Income tax expense Consolidated net profit for the period attributable to Deutsche Post AG shareholders Minorities (19) 1,916 366 â,¬ Basic earnings per share Diluted earnings per share (20) (20...

  • Page 127
    ... and cash equivalents Non-current assets held for sale Current assets Total assets EQUITY AND LIABILITIES Issued capital Other reserves Retained earnings Equity attributable to Deutsche Post AG shareholders Minority interest Equity Provisions for pensions and other employee benefits Deferred tax...

  • Page 128
    ... in exchange rates on cash and cash equivalents Changes in cash and cash equivalents associated with non-current assets held for sale Changes in cash and cash equivalents due to changes in consolidated group Cash and cash equivalents at beginning of reporting period Cash and cash equivalents at end...

  • Page 129
    ... Consolidated net profit Total changes in equity recognised in income and not recognised in income Balance at 31 December 2006 Balance at 1 January 2007 Capital transactions with owner Capital contribution from retained earnings Dividend Stock option plans (exercise) Stock option plans (issuance...

  • Page 130
    ...fic 2006 5,580 3,865 219 2007 5,765 4,309 245 Other regions 2006 934 393 42 2007 1,745 517 74 Group 2006 60,545 4,414 2007 63,512 2,892 2007 25,028 1,048 24,829 2,265 167,589 182,722 212,823 227,578 For segment reporting disclosures, see Note 8. Deutsche Post World Net Annual Report 2007

  • Page 131
    ... for the first time Equity interest % MAIL The Stationery Office Holdings Limited, United Kingdom EXPRESS ASTAR Air Cargo Holdings LLC, USA Polar Air Cargo Worldwide Inc., USA AeroLogic GmbH, Germany LOGISTICS FC (Flying Cargo) International Transportation Ltd., Israel FINANCIAL SERVICES Postbank...

  • Page 132
    ... 2007, Deutsche Post World Net acquired a 49% interest in US company Polar Air Cargo Worldwide, Inc. (Polar Air Cargo), a leading provider of global air freight services. Polar Air Cargo is included in the consolidated fi nancial statements as an associate. The total purchase price, including a post...

  • Page 133
    ..., policies and processes for managing it. 4 46 10 69 24 -77 -1 -14 48 8 93 18 -93 -2 -20 433 17 352 19 The consolidated joint ventures relate primarily to Express Courier Ltd. (New Zealand) and Exel-Sinotrans Freight Forwarding Co. Ltd., China. Deutsche Post World Net Annual Report 2007

  • Page 134
    ... the consolidated fi nancial statements. IFRIC 11 (IFRS 2 Group and Treasury Share Transactions) clari fies the issue of how IFRS 2 should be applied to share-based payment arrange- treatment of revenues arising in connection with customer loyalty programmes operated by the manufacturers or service...

  • Page 135
    ... share of allocable production overhead costs. Any The carrying amounts of non-monetary assets recognised in the case of consolidated companies operating in hyperinflationary economies are generally indexed in accordance with IAS 29 and thus reflect the current purchasing power at the balance sheet...

  • Page 136
    ... costs. They are expensed directly. Value-added tax arising in conjunction with the acquisition or production of items of property, plant or equipment is included in the cost if it cannot be deducted as input tax. Depreciation is generally charged using the straight-line method. Deutsche Post World...

  • Page 137
    ... and economically useful. Gains and losses from the derivative and the related hedged item are simultaneously recognised in income. Depending on the hedged item and the risk to be hedged, Deutsche Post World Net uses fair value hedges and cash flow hedges. Deutsche Post World Net Annual Report 2007

  • Page 138
    ... are recognised at the lower of their fair value less costs to sell and the carrying amount. Gains and losses arising from the remeasurement of individual non-current assets or disposal groups classi fied as held for sale are reported in the profit or loss from continuing operations until the fi nal...

  • Page 139
    ...separate balance sheet item. It comprises the allowance for losses on loans and advances to other banks and customers. Trading assets comprise securities and derivatives with positive fair values acquired for the purpose of generating a profit from short-term fluctuations in market prices or dealing...

  • Page 140
    ...a number of countries Deutsche Post World Net maintains defi ned benefit pension plans based on the pensionable compensation and length of service of employees. Most of these benefit plans are funded through external pension funds. Provisions for pensions are measured using the projected unit credit...

  • Page 141
    ... if the estimates of planned taxable income or the tax benefits achievable as a result of tax planning strategies are revised downwards, or in the event that changes to current tax laws restrict the extent to which future tax benefits can be realised. Deutsche Post World Net Annual Report 2007

  • Page 142
    ... operating income and expenses as well as receivables, liabilities and provisions between consolidated companies are eliminated. Inter-company profits or losses from intra-Group deliveries and services not realised by sale to third parties are eliminated. Deutsche Post World Net Annual Report 2007

  • Page 143
    ...-to-end service provider for the management of written communications. The division comprises the following business units: Mail Communication, Dialogue Marketing, Press Services, Parcel Germany, Global Mail and Corporate Information Solutions. FINANCIAL SERVICES EBIT â,¬m Deutsche Postbank Group...

  • Page 144
    ... on the basis of the domicile of the Group companies. Segment investments are also allocated on the basis of the location of the assets. They include investments in intangible assets (including purchased goodwill) and property, plant and equipment. Deutsche Post World Net Annual Report 2007

  • Page 145
    ... Postbank shares due to conversion right from exchangeable bond Income from arbitration proceedings against Deutsche Telekom AG Income from the reversal of the provision for Bundes-Pensions-Service für Post und Telekommunikation e.V. Income from the sale of Modra Pyramida Income from cost transfers...

  • Page 146
    ... to pension provisions, employer contributions to supplementary occupational pension plans and retirement benefit payments by employers for their employees. The average number of employees of Deutsche Post World Net in the year under review, classified by employee group, was as follows: 2006 Hourly...

  • Page 147
    ... costs Legal, consulting and audit costs Other business taxes Warranty expenses, refunds and compensation payments Allowance for losses on loans and advances from financial services (Deutsche Postbank Group) Telecommunication costs Cost of purchased cleaning, transportation and security services...

  • Page 148
    ...the opening tax accounts amount to â,¬3.4 billion as at 31 December 2007 (previous year: â,¬5.2 billion). The effects from deferred tax assets not recognised on tax loss carryforwards relate primarily to Deutsche Post AG and members of its consolidated tax group. Effects from deferred tax assets not...

  • Page 149
    ...rights and assets are reported under purchased intangible assets. Internally generated intangible assets relate to development costs for internally developed soft ware. Purchased customer lists of â,¬402 million relate to Exel (previous year: â,¬494 million), â,¬188 million to Williams Lea (previous...

  • Page 150
    ... on value in use. The pre-tax cost of capital is based on the weighted average cost of capital. The following table shows the discount rates used for the individual CGUs: Discount rates % LOGISTICS DHL Exel Supply Chain Freight Europe DHL Global Forwarding MAIL International National EXPRESS 10...

  • Page 151
    ... and equipment in progress at the balance sheet date for whose production internal or third-party costs have already been incurred. Items of property, plant and equipment pledged as collateral amount to less than â,¬1 million (previous year: â,¬5 million). Deutsche Post World Net Annual Report 2007

  • Page 152
    .../fair value hedges - relate to bonds issued by Deutsche Post Finance, the Netherlands, and were entered into with external banks. Further information on pension assets can be found in Note 40. 27 â,¬m Deferred taxes 2006 270 272 542 1,426 2007 227 793 1,020 1,569 Deferred tax assets for tax loss...

  • Page 153
    ... from sales of assets Income from cost absorption Creditors with debit balances Receivables from Group companies Current derivatives Receivables from insurance business Receivables from employees Land rights Receivables from loss compensation (recourse claims) Receivables from cash-on-delivery Rent...

  • Page 154
    ... to customers 0 -1,155 -1,155 Trading assets Bonds and other fixed-income securities Held-for-trading building loans held for sale Equities and other non-fixed-income securities Positive fair value of trading derivatives Positive fair value of banking book derivatives Positive fair value of...

  • Page 155
    ... structure Payable on demand Less than 3 months 3 months to 1 year 1 year to 2 years 2 years to 3 years 3 years to 4 years 4 years to 5 years More than 5 years Total 2007 Loans and advances to other banks Loans and advances to customers Trading assets Hedging derivatives Investment securities...

  • Page 156
    ... Deutsche Postbank Group - BHW Bank's credit card and sales financing business DHL Express (France) SAS - land/buildings Deutsche Post AG - real estate Other Vfw AG, Germany SCM Supply Chain Management Inc., Canada - land DHL Express Denmark A/S, Denmark - buildings Non-current assets held for sale...

  • Page 157
    ... in the company or to receive a cash settlement in the amount of the difference between the exercise price and the average price of Deutsche Post shares during the last five trading days prior to the exercise date, at the Board of Management's discretion. Deutsche Post World Net Annual Report 2007

  • Page 158
    ... price of Deutsche Post shares on the previous day and the fi xed issue price, if demanding performance targets are met. 35.6 A successor plan was also launched for members of the Board of Management: Under the new Long-Term Incentive Plan (2006 LTIP), members were granted SAR s for the fi rst time...

  • Page 159
    ...remeasurement of available-for-sale financial instruments. Further details can be found in Note 31. The revaluation reserve relates almost entirely to gains or losses on the fair value remeasurement of fi nancial instruments of the Deutsche Postbank Group. Deutsche Post World Net Annual Report 2007

  • Page 160
    ...in Germany. No capital gains tax (investment income tax) will be withheld on the distribution. 40.2 Actuarial assumptions The majority of the Group's defi ned benefit obligations relate to plans in Germany and the UK . In addition, significant pension plans are provided in other euro zone countries...

  • Page 161
    ... ned benefit obligations of â,¬37 million, fair value of plan assets of â,¬26 million). Changes in the present value of the defined benefit obligations Deutsche Postbank Group Germany 2007 Present value of total defined benefit obligations at 1 January Current service cost, excluding employee...

  • Page 162
    ... in the fair value of plan assets Deutsche Postbank Group Germany 2007 Fair value of plan assets at 1 January Employer contributions Employee contributions Expected return on plan assets Gains (+) / losses (-) on plan assets Benefit payments Transfers Acquisitions Settlements Currency translation...

  • Page 163
    ... to the Group's 40.10 Pension expense â,¬m expected direct benefit payments and â,¬310 million to expected payments to pension funds). Germany 2007 Current service cost, excluding employee contributions Interest cost Expected return on plan assets Recognised past service cost Recognised actuarial...

  • Page 164
    ... on studies by market research companies. It is measured at the nominal value of the stamps issued. 41.2 â,¬m Provisions for the home savings business Tax provisions STAR restructuring provision Risks from business activities Postal Civil Service Health Insurance Fund Litigation costs Welfare bene...

  • Page 165
    ...436 42 Financial liabilities Financial liabilities represent all interest-bearing obligations of Deutsche Post World Net not classi fied as liabilities from fi nancial services. â,¬m Non-current financial liabilities Bonds Due to banks Finance lease liabilities Liabilities to Group companies Other...

  • Page 166
    ... â,¬m DHL Operations B.V., Netherlands Deutsche Post AG, Germany DHL Networks Operations Corp., USA Leasing partner Barclays Mercantile Business Financing Limited, London T-Systems Enterprise Services GmbH, Deutschland Abx Air Inc., USA Interest rate 3.745% - 7.55% Maturity 2027/2028 2011 2010 Asset...

  • Page 167
    ...AG Deutsche Post AG 0 164 347 126 43.1 Deutsche Post AG Other Group companies 800 449 6,461 42 â,¬m 443 6,561 Breakdown of other liabilities 2006 774 530 481 406 350 288 2007 841 486 453 420 391 312 Tax liabilities Payable to employees and members of executive bodies Deferred income Compensated...

  • Page 168
    ... accounting are composed of the following items: â,¬m Assets Hedging derivatives on loans to other banks Loans and receivables Purchased loans (available for sale) Hedging derivatives on loans to customers Loans and receivables Purchased loans (available for sale) Hedging derivatives on investment...

  • Page 169
    ...from remeasurement of assets Income from remeasurement of liabilities Staff costs relating to stock option plan Non-cash income and expense of Deutsche Postbank Group Other Other non-cash income and expense 2006 96 -10 30 337 0 453 2007 54 -26 14 338 5 385 Deutsche Post World Net Annual Report 2007

  • Page 170
    .... Free cash flows are deemed an indicator to show how much cash is available to the company for dividend payments or the repayment of debt. Free cash flows amounted to â,¬4,398 million in the year under review and improved by â,¬3,173 million year-on-year. Deutsche Post World Net Annual Report 2007

  • Page 171
    ... units in the Deutsche Postbank Group, primarily the Financial Markets board department, Domestic/Foreign Credit Management and the credit functions of the private customer business and, at a decentralised level, the subsidiaries BHW Bausparkasse AG, BHW Bank AG, Deutsche Postbank International...

  • Page 172
    ...774 2007 5,427 421 5,848 Negative fair values 2006 3,616 958 4,574 2007 5,593 873 6,466 The following table presents the open interest rate and foreign currency forward transactions and option contracts of the Deutsche Postbank Group at the balance sheet date. Deutsche Post World Net Annual Report...

  • Page 173
    ... Exchange-traded products Interest-rate futures Interest-rate options Total portfolio of interest-rate derivatives Equity/index derivatives OTC products Equity options (long/short) Exchange-traded products Equity/index futures Equity/index options Total portfolio of equity/index derivatives Credit...

  • Page 174
    ... to limit them. The fi nancial instruments used are accounted for in accordance with IAS 39. Liquidity management Deutsche Post World Net ensures a sufficient supply of cash for Group companies at all times via a largely centralised liquidity management system. Along with bilateral credit lines...

  • Page 175
    Notes Consolidated Financial Statements 171 The maturity structure of primary fi nancial liabilities to be applied within the scope of IFRS 7 based on cash flows is as follows: Maturity structure -...0 0 0 0 -1,685 1,730 -16 16 -15 16 -15 16 -16 16 -160 191 Deutsche Post World Net Annual Report 2007

  • Page 176
    ... currency risks from primary monetary fi nancial instruments linked with Deutsche Post AG by using derivatives. The internal derivatives are consolidated in the Group. The risk remaining at Group level is taken into account when computing the net position. Deutsche Post World Net Annual Report 2007

  • Page 177
    Notes Consolidated Financial Statements 173 Deutsche Post World Net moderately increased the proportion of instruments with long-term interest-rate lock-in in the fi rst half of 2007. To take appropriate account of the unsteadiness in the fi nancial markets in the second half of 2007, the ...

  • Page 178
    ... assets of liabilities Fair values 2007 according to maturity Assets Up Up Up Up Up Total fair to 1 to 2 to 3 to 4 to 5 > 5 value year years years years years years Liabilities Up Up Up Up Up to 1 to 2 to 3 to 4 to 5 > 5 year years years years years years Deutsche Post World Net Annual Report 2007

  • Page 179
    ... portion of fair value hedges â,¬m Gains (-) / losses (+) on hedged items Gains (-) / losses (+) on hedging transactions Balance (ineffective portion) 2006 -57 57 0 2007 -20 19 -1 Cash flow risks arise for the Group from contracted aircraft purchases in connection with future payments in US dollars...

  • Page 180
    ... in the balance sheet as at 31 December 2007 â,¬m Carrying amount Financial assets recognised at fair value through profit and loss Trading Fair value ASSETS Non-current financial assets Other non-current assets Receivables and other assets Receivables and other securities from financial services...

  • Page 181
    ... Consolidated Financial Statements 177 pursuant to IAS 39 Financial liabilities recognised at fair value through profit and loss Trading Fair value Fair value option Fair value Amortised cost Fair value Miscellaneous financial liabilities Derivatives designated as hedging instruments Carrying...

  • Page 182
    ... in the balance sheet as at 31 December 2006 â,¬m Carrying amount Financial assets recognised at fair value through profit and loss Trading Fair value ASSETS Non-current financial assets Other non-current assets Receivables and other assets Receivables and other securities from financial services...

  • Page 183
    ... Consolidated Financial Statements 179 pursuant to IAS 39 Financial liabilities recognised at fair value through profit and loss Trading Fair value Fair value option Fair value Amortised cost Fair value Miscellaneous financial liabilities Derivatives designated as hedging instruments Carrying...

  • Page 184
    ... our market-leading position, a large number of Deutsche Post AG services are subject to sectoral regulation in accordance with the Postgesetz (German postal act). The regulatory authority approves or reviews prices in particular, formulates the terms of downstream access and conducts general checks...

  • Page 185
    ... costs for DHL in operating the air hub. In October 2007 DHL Global Forwarding, along with all other major players in the freight forwarding industry, received a request for information from the Competition Directorate of the European Commission, a subpoena from the United States Department...

  • Page 186
    ... of Germany) All companies classified as related parties that are controlled by Deutsche Post World Net or on which the Group can exercise significant influence are recorded in the list of shareholdings together with information on the equity interest held, their equity and their net profit or loss...

  • Page 187
    ... the Wertpapierhandelsgesetz (German securities trading act), please refer to the company website at www.dpwn.com. The post-employment benefits are recognised as the service cost resulting from the pension provisions for active members of the Board of Management. The share-based remuneration amount...

  • Page 188
    ... Lea Inhouse Solutions GmbH Interlanden B.V. Deutsche Post Customer Service Center GmbH Deutsche Post Selekt Mail Nederland C.V. EXPRESS/LOGISTICS Exel Europe Ltd. DHL Express (USA) Inc. Air Express International USA Inc. Exel Inc. DHL Freight GmbH DHL Express (France) SAS DHL Global Forwarding GmbH...

  • Page 189
    ...GmbH • Williams Lea Deutschland GmbH • Williams Lea Inhouse Solutions GmbH • Williams Lea Direct Marketing Solutions GmbH • Williams Lea Document Solutions GmbH • Williams Lea Print Solutions GmbH HP Services. Pursuant to the planned agreement Deutsche Post World Net expects to save costs...

  • Page 190
    ...investments in the Deutsche Postbank Group reported under non-current financial assets and measured at equity. Column 5 contains the data for Deutsche Post World Net including Postbank at equity. Cash ï¬,ow disclosures The cash flow statement including Postbank at equity is based on the consolidated...

  • Page 191
    ... and cash equivalents Non-current assets held for sale Current assets Total assets EQUITY AND LIABILITIES Issued capital Other reserves Retained earnings Equity attributable to Deutsche Post AG shareholders Minority interest Equity Provisions for pensions and other employee benefits Deferred tax...

  • Page 192
    ..., the consolidated fi nancial statements give a true and fair view of the assets, liabilities, fi nancial position and profit or loss of the Group, and the management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together...

  • Page 193
    ... by the Deutsche Post AG , Bonn, comprising the balance sheet, the income statement, statement of changes in equity, cash flow statement and the notes to the consolidated fi nancial statements, together with the group management report for the business year from 1 January to 31 December 2007. The...

  • Page 194
    ... EU Postal Directive Legal framework for the postal markets in the member states of the European Union. Co-pack services Finishing, order picking and packaging under customer contract. Exclusive licence In accordance with the German postal act, Deutsche Post AG had the excluDay Definite Delivery of...

  • Page 195
    ... distribution centres share certain resources such as staff and means of transport to save time and maximise cost efficiency. nationwide provision of appropriate and sufficient postal services. The postal act includes regulations on licensing, price control and the universal service. Standard...

  • Page 196
    ... G Global Business Services B Balance sheet 45 f., 123, 130 ff., 145 ff. Board of Management 12 ff. , 19, 23 ff., 94, 102 ff.,106, 108 f., 112 ff., 188 Bonds Brands Brand awareness 41, 162 23, 83 f., 145 83 Global Customer Solutions Global economy I Illness rate Income statement Investments 72...

  • Page 197
    ...Divisions total Consolidation (until 2004 Other/Consolidation) Total Profit or loss from operating activities (EBIT) MAIL EXPRESS LOGISTICS FINANCIAL SERVICES SERVICES Divisions total Consolidation (until 2004 Other/Consolidation) Total Consolidated net profit for the period Cash ï¬,ow/investments...

  • Page 198
    ... trainees) Full time equivalents (excluding trainees)3) Average number of employees (headcount) Staff costs Staff cost ratio 4) Key figures revenue/income/assets and capital structure Return on sales5) Return on equity (ROE) before taxes6) Return on total assets7) Tax rate8) Equity ratio9) Net...

  • Page 199
    ... the Annual Report Tel.: +49 (0)180 5 710101 E-mail: [email protected] Online: investors.dpwn.com Internal Order module GeT Mat. no. 675-601-666 Picture references Press and Information Office of the Federal Government Deutsche Post World Net picture database DHL USA Polar Air Cargo...

  • Page 200
    Deutsche Post AG Headquarters Investor Relations 53250 Bonn Germany www.dpwn.com