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Deutsche Post World Net Annual Report 2007
announced that it would review the VAT exemption of Deutsche Post AG against the
backdrop of the expiration of the exclusive licence on 31 December 2007. In a rst
statement on the infringement proceedings, a spokesman for Germany’s nance
ministry stated that the German government considers the current VAT exemption
in Germany to be tenable throughout Europe. e German cabinet has resolved to
retain the VAT exemption for nationwide universal services in the postal sector.
Concurring with Deutsche Post AG, the regulatory authority is of the opinion that
the prices it approved are net prices not including VAT. VAT could therefore be added
to the approved prices. However, it cannot be ruled out that the application of VAT
would lead to a decrease in revenue and earnings.
Business strategy risks
Deutsche Post World Net continues to focus on meeting the needs of its customers
at all times. To do this, we aim to make optimum use of our global platform. In
regional expansion of the services network, priority is given to organic growth over
business acquisitions.
Starting 1 January 2008, our MAIL Division with its diverse range of mail and parcel
services will face heightened competition in the liberalised German mail market.
is may result in loss of market share, most of all in the business customer segment.
e spread of digital technology also continues, with conventional mail increasingly
being replaced by electronic communication methods. We aim to absorb impending
losses of market share in the German mail market as far as possible through consist-
ent customer focus, new products and further internationalisation of our mail busi-
ness. e parcels business in Germany is una ected by mail market liberalisation,
since it has been exposed to competition for many years.
e
EXPRESS Division has uni ed its worldwide management structure. e aim here
is maximum possible e ciency in marshalling resources and capital expenditure
and to strengthen our position in the regions we serve. As re ected in the success-
ful launch of our First Choice programme, customer satisfaction is amongst our
central strategic goals. In a ercely competitive environment, our focus on customer
satisfaction and cost e ciency forms the basis for numerous projects, including the
cost-e cient expansion of our infrastructure. Despite intensive planning, temporary
quality lapses may arise in the course of complex infrastructure projects, in rare
instances with an adverse e ect on revenue and earnings.