DHL 2007 Annual Report Download - page 50
Download and view the complete annual report
Please find page 50 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.46
Deutsche Post World Net Annual Report 2007
Current and non-current liabilities increased from 189,513 million to €208,997 mil-
lion, primarily due to a €19,124 million rise in liabilities from nancial services. e
Group’s nancial liabilities were reduced from €10,488 million to €10,181 million.
is was partly accounted for by repayment of a €636 million xed-interest bond in
October. In the opposite direction, subordinated debt at Postbank increased nan-
cial liabilities by €555 million. Other nancial liabilities were €226 million down.
In contrast, trade payables rose by €315 million to €5,384 million. At €5,462 mil-
lion, other current and non-current liabilities were also up on the previous year
(€5,175 million).
A major portion of the 11.4% drop in current and non-current provisions to €12,610
million is accounted for by Postbank’s sale of its insurance companies.
Selected indicators for the “Postbank at equity” scenario
In the analysis with Postbank accounted for at equity, Postbank is treated as an in-
vestment accounted for using the equity method.
Net debt comprises nancial liabilities less cash and cash equivalents, current nan-
cial instruments, long-term deposits and nancial liabilities to minority shareholders
of Williams Lea. e gure decreased with the scaling back of nancial liabilities,
whilst the reduction in cash and cash equivalents had the e ect of increasing net debt.
Overall, net debt was reduced by €225 million compared with 31 December 2006, to
€2,858 million.
Net gearing – the ratio of net debt to the sum of equity and net debt combined – de-
creased from 21.4% to 20.3%.
Selected indicators for net assets (Postbank at equity)
2006 2007
Equity ratio % 31.6 31.4
Ratio of equity to non-current assets % 46.3 47.0
Net debt €m 3,083 2,858
Net gearing % 21.4 20.3
Net interest cover 8.3 14.6
Dynamic gearing ratio years 1.4 1.0
Net interest cover is the ratio of EBIT to the balance of interest paid and interest
received. e gure has increased from 8.3 to 14.6. is indicates that EBIT exceeds
net interest obligations by a factor of 14.6.
e dynamic gearing ratio is an indicator of internal nancing capacity and expresses
the average number of years required to pay outstanding debt using the whole of the
cash ow generated in the year under review. As net debt has dropped and operating
cash ow has increased, the dynamic gearing ratio has further improved from an
average of 1.4 to 1.0 years.