DHL 2007 Annual Report Download - page 103
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Further Developments and Outlook Group Management Report
Deutsche Post World Net Annual Report 2007
Future fi nancing
At the start of 2008, we launched a commercial paper programme with a maximum
volume of €1 billion. is complements our portfolio of short-term nancing tools
and enables us to issue notes in various currencies at short notice with maturities of
generally less than ninety days. e lasting fundamental need for nancial resources
will, however, continue to be met by long-term nancing tools, as short-term note is-
sues under the commercial paper programme only meet the nancing requirements
otherwise covered by short-term bank loans.
Capital expenditure plans
e 2008 budget earmarks expenditure in a slightly larger amount than in 2007.
Property, plant and equipment will again attract the larger portion of spending, with
more than three-quarters being allocated to the MAIL, EXPRESS and LOGISTICS
divisions.
In the domestic mail and parcel business, we intend to improve production, amongst
other things by testing machinery that sorts standard and compact letters. In
Corporate Information Solutions we will focus on customer projects and the
replacement of printers and enveloping machines. We also intend to improve the
technical equipment of the international mail business. In the outlets, electronic
POS hardware is to be renewed and the agency network expanded.
In the EXPRESS Division, we will complete the European hub in Leipzig/Halle,
develop our infrastructure and renew the vehicle eet in several countries. In the
United States, IT applications are to be developed and operating facilities modernised.
Infrastructure projects are also envisaged in other regions – hubs in particular in the
Asia Paci c region and primarily vehicles in the EEMEA region.
In the LOGISTICS Division, we will continue to invest chie y 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 investing in the implementation of statutory require-
ments, including the at-rate withholding tax on investment income, Basel II and the
liquidity management project. e purpose of this project is to appropriately control
liquidity risks in compliance with the practices of the Basel Committee on Banking
Supervision. Further improvements to branches will also be made.
Company-wide capex will concentrate on vehicle procurement on a scale similar to
the previous year.