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Deutsche Post World Net Annual Report 2007
47.2 Net cash used in investing activities
Cash ows from investing activities mainly result from cash received
from disposals of non-current assets and cash paid for investments in
non-current assets. Net cash in the amount of million was used in
investing activities in the year under review, thus falling by , mil-
lion below the previous year’s amount (previous year: , million).
e disposal of non-current assets generated cash and cash equivalents
in the amount of , million (previous year: , million). Divesti-
tures of operations brought cash in ows of million, mainly from
the sale of the insurance equity investments of Deutsche Postbank Group
( million) and from the sale of Vfw AG ( million). million of
cash was received from the sale of other non-current assets.
Cash paid to acquire non-current assets totalled , million compared
with , million in the previous year. Of this amount, million
was attributable to the acquisition of companies, such as the acquisition
of TSO ( million), Astar ( million), Polar Air Cargo ( million),
and to an increase in the share in Lemuir India ( million). e total
cash and cash equivalents acquired with these acquisitions amounted to
million (previous year: million).
e following assets and liabilities were acquired on the acquisition of
companies (see also Note ):
€m 2006 2007
Non-current assets 905 98
Receivables and other securities from fi nancial
services 40,385 26
Current assets (excluding cash and cash
equivalents) 958 212
Provisions –3,018 –70
Liabilities from fi nancial services –36,863 0
Other liabilities –1,220 –214
Net cash used for the acquisition of other non-current assets amounted
to , million, a year-on-year increase of million. is increase
relates to capital expenditure (, million compared with , mil-
lion in the previous year) and to cash paid for other non-current nancial
assets ( million compared with million in the previous year). In
addition, interest received increased cash ows from investing activities
by million (previous year: million). is increase is mainly
accounted for by the fact that nancial derivatives have been presented
in gross amounts since the beginning of the year. No data were available
to determine the previous year’s amounts.
Free cash ows are a combination of net cash provided by operating
activities and net cash used in investing activities. Free cash ows are
deemed an indicator to show how much cash is available to the com-
pany for dividend payments or the repayment of debt. Free cash ows
amounted to , million in the year under review and improved by
, million year-on-year.
47.3 Net cash used in fi nancing activities
Cash ows from nancing activities result from the issue and repayment
of nancial liabilities and from distributions. In addition, interest paid
in the amount of million (previous year: million) is included
in net cash used in nancing activities, which increased mainly due to
the change in the gross recognition of nancial derivatives since the
beginning of the year.
Net cash used in nancing activities rose from million in the pre-
vious year to , million in the year under review. is increase,
in addition to the gross recognition of interest payments mentioned
above, mainly re ects a reduction in nancial liabilities. e changes in
nancial liabilities resulted in cash in ows amounting to million
in the previous year, whereas the year under review saw cash out ows
of million, re ecting the repayment of current and non-current
liabilities. Amongst other items, the Group repaid a xed-income bond
in the principal amount of million in October and issued a munici-
pal bond amounting to US million in April. In addition, increased
dividends paid to shareholders of Deutsche Post AG ( million) and
minority shareholders ( million) resulted in a cash out ow from
nancing activities.
47.4 Cash and cash equivalents
e cash in ows and out ows described above produced cash and cash
equivalents of , million (see Note ). is is a year-on-year in-
crease of , million. Currency translation di erences reduced cash
and cash equivalents by million, changes in the consolidated group,
by contrast, brought an increase of million.
Other Disclosures
48 Financial instruments
Financial instruments are contractual obligations to receive or deliver
cash and cash equivalents. In accordance with IAS and IAS , these
include both primary and derivative nancial instruments. Primary
nancial instruments include in particular bank balances, all receiva-
bles, liabilities, securities, loans and accrued interest. Examples of de-
rivatives include options, swaps and futures.
e Deutsche Postbank Group accounts for most of the nancial in-
struments in Deutsche Post World Net. e risks and derivatives of the
Deutsche Postbank Group’s nancial instruments are therefore pre-
sented separately below.
48.1 Risks and fi nancial instruments of the
Deutsche Postbank Group
Taking risks in order to generate earnings is the core function of the
Deutsche Postbank Group’s business activities. One of the Deutsche
Postbank Group’s core competencies is to assume normal banking risks
within a strictly de ned framework, whilst at the same time maximising
the potential return arising from them. In the process, each of the rel-
evant risks is thoroughly identi ed, continuously measured and moni-
tored as well as regularly reported. To this end, the Deutsche Postbank
Group has established a risk management organisation as the basis for
risk- and earnings-based overall bank management.