DHL 2010 Annual Report Download - page 55

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Funds from operations  represents operating cash ow before changes in work-
ing capital plus interest and dividends received less interest paid and adjusted for operat-
ing leases, pensions and non-recurring income or expenses, as shown in the following
calculation. In addition to  nancial liabilities and available cash and cash equivalents,
the  gure for debt also includes operating lease liabilities as well as unfunded pension
liabilities.  e de nition of  to debt and the method used to calculate its individual
components correspond to those used by the rating agency Standard & Poor’s.
. Finance strategy
Credit rating
• Maintain “+” and “Baa” ratings, respectively.
•  to debt introduced as dynamic performance metric.
Dividend policy
• Pay out  –   of net profi t.
• Consider cash fl ow and continuity.
Excess liquidity
. Invest in the operating business.
. Increase plan assets for German pension plans.
. Aim for credit ratings of “–” and “”, respectively.
. Pay out special dividend or execute share buy-back
programme.
Debt portfolio
• Syndicated credit facility taken out as liquidity reserve.
• Bonds could be issued to cover long-term capital
requirement.
Investors
• Reliable and consistent informa tion
fromthe company.
• Predictability of expected returns.
Group
• Preserve fi nancial and strategic fl exibility.
• Assure low costs of capital 1).
 Weighted average cost of capital Group management, page .
standardandpoors.com
.  to debt
 m
2009 2010
Operating cash fl ow before changes in working capital 763 2,109
Interest and dividends received 103 59
Interest paid 291 183
Adjustment for operating leases 1,082 1,055
Adjustment for pensions 153 198
Non-recurring income / expenses 1,415 531
Funds from operations  3,225 3,769
Reported fi nancial liabilities1) 7,439 7,022
Financial liabilities related to the sale of Deutsche Postbank 1) 3,990 4,164
Financial liabilities recognised at fair value through profi t or loss1) 141 115
Adjustment for operating leases1) 4,933 5,527
Adjustment for pensions1) 5,221 5,323
Surplus cash and near-cash investments1), 2) 3,864 2,893
Debt
1) 9,598 10,700
 to debt  33.6 35.2
 As at  December.
 Surplus cash and near-cash investments are defi ned as cash and cash equivalents and investment funds callable at sight,
less cash needed foroperations.
Deutsche Post DHL Annual Report 
Group Management Report
Economic Position
Financial position
41