DHL 2009 Annual Report Download - page 102

RISK CATEGORIES AND SPECIFIC RISKS
 e risks set out in the following are those which we presently consider to have a
signi cant potential negative impact on our earnings,  nancial position and assets and
liabilities.  ey are not necessarily the only risks to which the Group is exposed. Our
business activities could also be adversely a ected by risks of which we are currently
unaware or which we do not yet consider to be material.
Risks arising from the political and regulatory environment
Risks associated with the general business environment primarily arise from the
fact that both the Group and its subsidiaries provide some of their services in a regulat-
ed market. Our statutory exclusive licence was abolished in Germany on  January .
However, the Postgesetz (German postal act) has allowed exceptions enabling competi-
tors to operate within the weight and price ceilings laid down in our exclusive licence
from January  onwards. By the end of the year, the regulatory authority (Bundes-
netzagentur – German federal network agency) had issued licences to around , com-
petitors, around  of which operate in the market.
On  November , the regulatory authority announced a benchmark deci-
sion specifying the conditions that would apply from  until the end of  to
regulation under the price-cap procedure for mail prices requiring approval.  is
stipulates the general rate of in ation and the expected productivity growth rate for
Deutsche Post  as the key factors applicable to mail prices subject to approval. Prices
have to be lowered if the in ation rate in the reference period is less than the productiv-
ity growth rate speci ed by the regulatory authority. Mail prices requiring approval will
remain largely unchanged in .  e regulatory authority accepted an application
from Deutsche Post  to this e ect on  November .
 e third  Postal Directive came into force on  February .  e Directive
requires most  member states to open up their markets by , although the nine
most recent members plus Greece and Luxembourg have the option to defer the open-
ing of their markets until . Until then, the previous limits continue to apply across
the , with reservable services restricted to a maximum of g or two-and-a-half
times the standard letter price. It is now possible to plan with certainty for the future
regarding the date by which all national monopolies in Europe must fall.
Whilst liberalisation of postal markets entails risks for Deutsche Post  due to in-
creased competition in Germany, it also opens up new opportunities in other European
postal markets. In , cross-border mail in Europe between Deutsche Post  and 
other western European postal operators was governed by the   agreement and
with another nine Eastern European postal companies by the   agreement.
  came into force on  January  as the successor to these two agreements.
Discussions continue regarding the extent to which postal services should be ex-
empt from value added tax . An amendment to the Umsatzsteuergesetz (Ger-
man value added tax act) currently in preparation will reduce the  exemption for
Deutsche Post . A bill to this e ect was adopted by the German cabinet on  Decem-
ber  and is set to become law on  July . Under the new rules, the  exemp-
tion will only apply to speci c universal services pursuant to the  Postal Directive
that are not subject to individually negotiated agreements or provided on special terms
(discounts etc.). Any enterprise that o ers some or all of these services nationwide in
Germany will qualify for the  exemption.
Glossary, page 
Deutsche Post DHL Annual Report 
Group Management Report
Risks
Risk categories and specifi c risks
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