DHL 2009 Annual Report Download - page 44

GROUP MANAGEMENT
 after asset charge as additional control parameter
In , Deutsche Post DHL introduced a new performance metric, which it uses
to assess the degree of target achievement. In the year under review,  a er asset
charge  was used as an additional key control parameter together with pro t from
operating activities .
We aim for sustained value growth in all areas of our operating business. To this
end, we carefully control not only targeted pro ts but also the use of resources neces-
sary to meet this goal. Executives are now expected to place greater emphasis on the
asset charge that their operating business must generate.
To calculate the asset charge, the net asset base is multiplied by the weighted aver-
age cost of capital .
 e Group’s  is de ned as the weighted average net cost of interest-bearing
liabilities and equity, taking into account division-speci c risk factors in a beta factor
according to the Capital Asset Pricing Model. Deutsche Post DHL aims to increase en-
terprise value via e cient management of the net asset base.
In order to optimise the gearing ratio and thus decrease , two factors must be
weighed against each other:
1 Since equity investors expect higher yields than debt investors,  declines as
the gearing ratio increases (leverage e ect).
2 If the gearing ratio is high, the company’s credit rating has a tendency to decrease
and borrowing costs to increase – and negate the positive e ects of the decline
in .
Since , a  of .  has been considered the minimum target level for
projects and investments in the Group.
 amounted to – million in  (previous year: –, million). In both
 nancial years  and , pro t from operating activities was depressed by non-
recurring items.
.  after asset charge 
 m 2008
adjusted
2009 + / – 
Reported  –966 231 123.9
Asset charge –1,518 –1,190 –21.6
 –2,484 –959 61.4
In terms of , we reduced the asset charge by   million to  , million
across all segments, in part thanks to improved net working capital management.
Earnings, page 
. Calculating 
Reported 
Asset charge
= Net asset base
× Weighted average cost of capital
 after asset charge
. Calculating net asset base
Operating assets
• Intangible assets
• Property, plant and equipment
• Trade receivables,
other operating assets
Operating liabilities
• Operating provisions
• Trade payables,
other operating liabilities
Business operating assets 
Goodwill
Net asset base
Deutsche Post DHL Annual Report 
Group Management Report
Business and Environment
Group management
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