DHL 2007 Annual Report Download - page 35
Download and view the complete annual report
Please find page 35 of the 2007 DHL annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.31
Business and Environment Group Management Report
Deutsche Post World Net Annual Report 2007
Increasing cash generation
In future, cash generation will be more central to our strategy than ever before. e
Group plans to reduce its net working capital by €700 million by the end of 2009.
In addition, we aim to free up at least €1 billion in cash through the disposal of real
estate in the next 24 months. In January 2008, a new performance metric, EBIT
a er asset charge, was introduced as an expression of this value-driven approach. As
we move forward, management incentives will be tied to this metric.
Value-added for investors
In a move to give our shareholders a larger stake in the value we create, we will be
proposing that the dividend for 2007 be increased by 20% to €0.90 per share. We
plan to increase the dividend again in the coming years – broadly in line with the
anticipated growth in net pro t excluding non-recurring e ects.
Transparent fi gures
e Group is committed to improving the transparency of its reporting. e unbun-
dling of the SERVICES Division and the allocation of all Global Business Services
costs to the operating units will illustrate more clearly the pro tability of the indi-
vidual segments.
Organic growth
We intend to use the strong platform we have built in recent years as a springboard
for organic growth. The strengths we have already established in high-growth
regions – e.g. Asia Paci c and Eastern Europe – enable us to participate in their
expansion. e construction of our new hub in Shanghai is to be seen as an expres-
sion of our con dence in Asia’s sustainable growth potential. e rate of growth in
the LOGISTICS Division, which has been signi cantly outperforming the market
since 2005 despite the integration of Exel, further re ects our strong position in
rapidly growing markets. Spending on company mergers and acquisitions has thus
been capped and the criteria for such takeovers have been tightened. Acquisitive
investments have already fallen substantially.
We laid a foundation stone for further, sustainable growth when the First Choice
programme was launched back in 2006. Its aim is to improve our performance
systematically at every point of contact with our customers – from sales through
customer centres and the internet to the mail carriers. For us, the programme is a
tool for fostering even greater loyalty amongst our customers. In the reporting period,
almost 900 initiatives in 116 countries were rolled out and, in some cases, completed
within the framework of the programme. In the mail business, for instance, 350 new
service managers were employed and Postbank has equipped its branches with mo-
bile counter units in order to reduce waiting times. First Choice remains a key com-
ponent 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