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Notes Consolidated Financial Statements
Deutsche Post World Net Annual Report 2007
e German government has already argued before the European Com-
mission that the allegations are in its opinion unfounded. Nevertheless,
with regard to the two allegations relating to the requests for informa-
tion, no assurance can be given that the Commission will not nd that
the facts of the case constitute state aid.
On September , the European Commission initiated a formal in-
vestigation against Germany concerning possible subsidies to Deutsche
Post. e investigation will focus on whether Germany, using state re-
sources, overcompensated Deutsche Post AG or its legal predecessor
Deutsche Bundespost POSTDIENST for the cost of providing universal
services between and and whether the company was thereby
granted state aid incompatible with EU law. According to the decision
opening the investigation, the Commission intends to examine all public
transfers, public guarantees, statutorily granted exclusive rights, the
price regulation of letter services and the public funding of civil serv-
ants’ pensions during the period in question. Also to be investigated is
the cost allocation within Deutsche Post AG and its predecessor between
the regulated letter service, the universal service and competitive serv-
ices. is also relates to co-operation agreements between Deutsche Post
AG and Postbank as well as between Deutsche Post AG and the business
parcel service marketed by DHL Vertriebs GmbH.
Deutsche Post AG and Deutsche Postbank AG hold that the new inves-
tigation lacks any factual basis. All public transfers associated with the
privatisation of Deutsche Bundespost, the public guarantees and the
funding of pension obligations formed part of the subject matter of the
state aid procedure closed by the decision of June . at deci-
sion did not identify the measures concerned as incompatible state aid.
Deutsche Post AG and Deutsche Postbank AG are further of the opin-
ion that the statutorily granted exclusive rights and the regulated letter
prices do not ful l the legal criteria to be considered a form of state aid
in the rst place. Deutsche Post AG also considers the internal allocation
of costs with its subsidiaries to be consistent with EU state aid rules and
the case law of the European Court of Justice. Nonetheless, based on
an overall appraisal the possibility of the Commission nding a case of
incompatible state aid cannot be ruled out.
On November , the European Commission opened formal pro-
ceedings with regard to possible state aid in connection with the con-
struction of the DHL European air hub at Leipzig/Halle airport. e
Commission notably has doubts that the nancing of the new southern
runway by the German state of Saxony, nancial guarantees endorsed by
Saxony and certain operational undertakings on the part of the airport
operator are compatible with European law on state aid. In the opinion
of Deutsche Post AG and DHL, the arrangements entered into with the
state of Saxony and the airport comply with the law relating to state aid.
It cannot be ruled out, however, that the Commission will deem speci c
features of these arrangements to be unlawful. is could result in ad-
ditional costs for DHL in operating the air hub.
In October DHL Global Forwarding, along with all other major
players in the freight forwarding industry, received a request for infor-
mation from the Competition Directorate of the European Commission,
a subpoena from the United States Department of Justice’s Antitrust
Division, and information requests from competition authorities in
other jurisdictions, in connection with a formal investigation into the
setting of surcharges and fees in the international freight forwarding
industry.
In January , an anti-trust class action law suit was initiated in the
New York district court on behalf of purchasers of freight forwarder
services in which Deutsche Post AG and DHL are named as defend-
ants. is civil law suit appears to be based on the fact that anti-trust
investigations are on-going, but not on any known outcome or quanti-
ed loss.
Deutsche Post World Net is not able to predict or comment on the out-
come of the investigations or the merits of the class action law suit, but
believes its nancial exposure in relation to both is limited and has not,
therefore, taken any provision in its accounts.
51 Other fi nancial obligations
In addition to provisions, liabilities and contingent liabilities, there are
other nancial obligations amounting to , million (previous year:
, million) from non-cancellable operating leases as de ned by IAS .
e Group’s future non-cancellable payment obligations under leases
are attributable to the following asset classes:
€m 2006 2007
Land and buildings 5,637 6,310
Technical equipment and machinery 214 470
Other equipment, operating and offi ce equipment 324 96
Aircraft 222 165
Other 17 0
Leases 6,414 7,041
€m 2006 2007
Year 1 after reporting date 1,160 1,285
Year 2 after reporting date 958 1,069
Year 3 after reporting date 779 871
Year 4 after reporting date 611 700
Year 5 after reporting date 468 561
Year 6 after reporting date and thereafter 2,438 2,555
Maturity structure of minimum
lease payments 6,414 7,041
e present value of discounted minimum lease payments is , mil-
lion (previous year: , million), based on a discount factor of .
(previous year: .) Overall, rental and lease payments of , mil-
lion (previous year: , million) arose in , of which , mil-
lion (previous year: , million) relates to non-cancellable leases.
Future lease obligations from non-cancellable leases relate primarily to
the following companies:
€m 2006 2007
Deutsche Post AG/
Deutsche Post Immobilien GmbH 2,306 2,468
Express and logistics companies 3,392 4,182
Other Group companies
(including Deutsche Postbank Group) 716 391
Future lease obligations 6,414 7,041
e purchase obligation for investments in non-current assets amounted
to million.