DHL 2010 Annual Report Download - page 59

Capital expenditure lower than expected
 e Group’s capital expenditure (capex) totalled  , million at the end of 
(previous year:  , million), down   on the originally budgeted  gure of  . bil-
lion. Funds were injected primarily into replacements and growing the business.
At the beginning of the year, we were initially cautious with our investments in light
of the uncertain economic trend. As the year progressed, we shi ed from a single focus
on replacements to growth-orientated investments. Funds were used mainly to replace
and expand assets as follows:  , million were invested in property, plant and equip-
ment and   million in intangible assets excluding goodwill. Investments in property,
plant and equipment related mainly to advance payments and assets under development
(  million), technical equipment and machinery (  million), transport equip-
ment (  million),  equipment (  million) and aircra (  million).
Our initial focus on replacement investments led to investments being made pri-
marily in Europe and the Americas, as shown in the graph on the right. In Europe,
investments were centred on Germany and the .
 invests in internet business
Capital expenditure in the  division rose in the reporting year from   mil-
lion (adjusted) to   million.  ese investments related in particular to technical
equipment and machinery (  million), internally generated so ware (  million)
and other operating and o ce equipment (  million).  e domestic mail business
invested primarily in replacing technical equipment and mail sorting machines. In
addition, we developed the platform for the -Postbrief product.
. Investments by region
 m
Germany
733
635
Americas
210
123
Europe (excluding Germany)
174
300
Asia Pacifi c
94
78
Other regions
51
35
 
. Capex and depreciation, amortisation and impairment losses, full year
 
 ,
  
Corporate Center /
Other
Continuing
operations
2009
adjusted
2010 2009
adjusted
2010 2009
adjusted
2010 2009
adjusted
2010 2009
adjusted
2010 2009 2010
Capex  m 338 445 370 286 92 102 195 215 176 214 1,171 1,262
Depreciation, amortisation and
impairment losses  m 332 323 483 373 114 98 392 298 299 204 1,620 1,296
Ratio of capex to depreciation,
amortisation and impairment losses 1.02 1.38 0.77 0.77 0.81 1.04 0.50 0.72 0.59 1.05 0.72 0.97
. Capex and depreciation, amortisation and impairment losses, 
 
 ,
  
Corporate Center /
Other
Continuing
operations
2009
adjusted
2010 2009
adjusted
2010 2009
adjusted
2010 2009
adjusted
2010 2009 2010 2009 2010
Capex  m 133 146 95 134 36 34 60 81 61 104 385 499
Depreciation, amortisation and
impairment losses  m 79 99 169 87 29 25 89 78 83 48 449 337
Ratio of capex to depreciation,
amortisation and impairment losses 1.68 1.47 0.56 1.54 1.24 1.36 0.67 1.04 0.73 2.17 0.86 1.48
Deutsche Post DHL Annual Report 
Group Management Report
Economic Position
Financial position
45