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Annual Report 2012
PIONEERING
FUTURE
MARKETS

Table of contents

  • Page 1
    Annual Report 2012 Pioneering Future MarKets

  • Page 2
    ... and DHL corporate brands represent a one-of-a-kind portfolio of logistics (DHL) and communications (Deutsche Post) services. the group provides its customers with both easy-to-use standardised products as well as innovative and tailored solutions ranging from dialogue marketing to industrial supply...

  • Page 3
    letter to our sHareHolDers Contents aç"² grouP ManageMent rePort 17 bä¹™ C丙 CorPorate goVernanCe 109 ConsoliDateD FinanCial stateMents 135 D丁 FurtHer inForMation 215

  • Page 4
    ... zone even saw a decline. Given these developments, at the Annual General Meeting we shall propose that a dividend per share of â,¬0.70 be paid to you as in the previous year. The distribution ratio of 53.3 % reflects our dividend policy of paying out 40 % to 60 % of adjusted net profit as dividends...

  • Page 5
    ... evidence that our Strategy 2015 is delivering and is being implemented successfully - for the benefit of our shareholders, customers and employees. With our extensive portfolio of products and services, targeted innovations in growth areas, exceptional position in the emerging markets and a culture...

  • Page 6
    ... ManageMent rePort business and environment Deutsche Post shares economic Position Divisions non-Financial Performance indicators Further Developments outlook 17 19 33 36 50 70 84 85 DHL divisions: around â,¬2.0 billion 1. Corporate Center / other: around â,¬-0.4 billion. Consolidated net profit...

  • Page 7
    ... importance as a domestic logistics market. DHL has been doing business in China for more than 30 years and is the fastest, most reliable express service provider there. as a logistics pioneer in the region, Deutsche Post DHl has continually expanded its global network, opening up asia's growth...

  • Page 8
    4

  • Page 9
    ... today, China is the fifth largest wine market in the world. and the more exclusive and expensive the vintage, the better - because here, wine is not only a drink, it is also a status symbol. the most important trans-shipment point is Hong Kong. in a former warehouse right on the harbour, DHL global...

  • Page 10
    ...492.4 2 2009 2010 2011 DHL Wine Hub, Hong Kong 230,000 bottles are stored in the hub; 180,000 are handled each year. Wine consumption in selected countries in 2010 3 million 9-litre-cases (a crate of twelve 750 ml bottles) 156 300 282 98 China 311 France germany 141 116 usa argentina sources...

  • Page 11
    ...York and london, which were previously the major locations for wine auctions. Wine shipments delivered at the perfect temperature Yet wine merchants, restaurants and auction houses aren't the only ones that rely on DHL's services - an increasing number of private individuals do, too. Hardly anybody...

  • Page 12
    8

  • Page 13
    ... system based in shanghai to service customers in the key asia Pacific region. organising supply Chains Milk - a growth market in China 1 250,000 dairy cows 120,000 dairy cows 1949 2004 21,850,000 tonnes of milk +108% 10,620,000 tonnes of milk +106% 1949 1 2004 source: China today...

  • Page 14
    ...billion litres 1 2 +14.4% 2011 2014 forecast shanghai warehouse 6,500 M² oF sPaCe 1,827 M² sHelVing a key trans-shipment hub in DeCeMber 2012, one-tHirD oF all tetra PaK rePlaCeMent Part sHiPMents arounD tHe WorlD Were DeliVereD to CustoMers bY DHl exPress asia PaCiFiC. sources: 1 PWC. 2 tetra...

  • Page 15
    ... Pak's best performing distribution centre in the world and its largest in terms of end-customer deliveries. in December 2012, one-third of all tetra Pak replacement part shipments were delivered to customers by DHL express asia Pacific. 1 DHL serves tetra Pak customers throughout asia from the...

  • Page 16
    12

  • Page 17
    ... board of Management of Deutsche Post DHl attended the official opening celebration in July 2012. "DHL express' north asia Hub is a logistics milestone in our asia Pacific network," says Chief executive officer Dr Frank appel. expanding infrastructure Four asian hubs 690 commercial flights per day...

  • Page 18
    ... cent of its global revenue in the asia Pacific region. by 2017, the company plans to increase revenue in the region to a third of its total. in the last several years DHL has invested more than 2.5 billion US dollars to develop products and services in asia. in addition, the company plans to invest...

  • Page 19
    ... leader in China today, DHL generates almost 20 per cent of its overall revenue in the asia Pacific region. "DHL pioneered express services in asia," says Ken allen, CEO of DHL express. "We tapped into the market and were the first international express company to enter China more than 30 years ago...

  • Page 20
    .... tom Wong, Managing Director of DHL supply Chain Hong Kong & Macau, explains: "the MegaHub allows us to meet a central need of our customers even better: by offering a comprehensive logistics service solution from a single source." this is also because the EXPRESS division operates another facility...

  • Page 21
    A ç"² GROup MAnAGeMent RepORt grouP ManageMent rePort 17 108

  • Page 22
    ...division SUPPLY CHAIN division 50 50 52 58 63 67 non-FinanCial PerForManCe inDiCators employees Diversity Health and safety Corporate responsibility Procurement research and development Customers and quality brands 70 70 73 75 76 78 79 80 83 FurtHer DeVeloPMents report on post-balance-sheet date...

  • Page 23
    ... freight forwarders in Europe. Our SUPP4Y CHAIN division is the global market leader in contract logistics, providing warehousing, managed transport and value-added services at every link in the supply chain for customers in a variety of industries. We also offer solutions for corporate information...

  • Page 24
    ... Marketing • Press services • Value-added services • Parcel germany • retail outlets • global Mail • Pension service EXPRESS Board member • Ken allen Regions • europe • americas • asia Pacific • MEA (Middle east and africa) SUPPLY CHAIN Board member • bruce edwards Business...

  • Page 25
    ... shareholders that would limit voting rights or the transfer of shares. Members of the Board of Management receive stock appreciation rights (SAR s) each year as a long-term remuneration component under the Long-Term Incentive Plan provided that they each invest cash or Deutsche Post AG shares...

  • Page 26
    ... 20 April 2014 in exchange for cash and / or non-cash contributions and thereby increase the company's share capital by up to â,¬240 million (Authorised Capital 2009, article 5 (2) of the Articles of Association). To date, the Board of Management has not used such authorisation. When new shares are...

  • Page 27
    ... time should the shares thus acquired, together with the shares already held by the company, account for more than 10 % of the share capital. The shares may be purchased through the stock market, a public offer, a public call for offers of sale from the company's shareholders or by some other means...

  • Page 28
    .... The authorisation to use shares for the purpose of listing on a foreign stock exchange is intended to enable the company to expand its shareholder base also in foreign countries in line with its global orientation. Any public offer to acquire shares in the company is governed solely by law and the...

  • Page 29
    ...year: 3.9 %). Growth in global trade weakened even further to just below 3 % (IMF: 2.8 %, OECD: 2.8 %). A.02 Global economy: growth indicators in 2012 % China Japan USA euro zone germany Data partially estimated, as at 30 January 2013. sources: Postbank research, national statistics. gross domestic...

  • Page 30
    ...the labour market came to a standstill over the course of the year. However, the average annual number of unemployed workers went down by 79,000 to around 2.9 million; the working population grew to 41.6 million. price of crude oil fluctuates significantly over the year At the end of 2012, a barrel...

  • Page 31
    ... sovereign debt crisis and the resulting weak economy. Trade between emerging markets in the Asia Pacific region, Africa and the Middle East saw above-average growth. A.04 trade volumes: compound annual growth rate 2011 to 2012 % imports exports africa asia Pacific europe latin america Middle east...

  • Page 32
    ...132 22 imports 27 174 Asia pacific exports 96 478 145 526 110 174 1,003 2,920 imports 310 325 548 1,211 africa asia Pacific europe north america latin america Middle east source: Copyright © IHS, 2012. all rights reserved, as at 31 December 2012. 28 Deutsche Post DHL Annual Report 2012

  • Page 33
    ...: Market intelligence 2012, annual reports and desk research. Company estimates. Country base: total for 19 european countries, excluding bulk and specialties transport. source: MI study DHL Freight (based upon eurostat, financial publications, IHS global insight). Deutsche Post DHL Annual Report...

  • Page 34
    ... market position, a large number of our services are subject to sector-specific regulation under the Postgesetz (PostG - German Postal Act). Further information on this issue and legal risk is contained in the notes to the consolidated financial statements. 30 Deutsche Post DHL Annual Report 2012

  • Page 35
    Group Management Report Business and Environment Group management group management EBIT after asset charge increases Since 2008, Deutsche Post DHL has used EBIT after asset charge (EAC) as a key performance indicator. EAC is calculated by subtracting a cost of capital component, or asset charge, ...

  • Page 36
    ... in the reporting year due, in part, to the Group's investments in software and IT systems and the purchase of freight aircraft as well as replacement and expansion investments in warehouses, sorting systems and our vehicle fleet. The 42.2 % increase in net working capital was mainly attributable to...

  • Page 37
    ... on account of the slight recovery in the US economy. A.11 Deutsche post shares: multi-year review 2006 2007 2008 2009 2010 2011 2012 Year-end closing price High low number of shares Market capitalisation as at 31 December average trading volume per day annual performance including dividends annual...

  • Page 38
    ...Deutsche Post shares on 30 December 2011. Deutsche post shares considerably outgain the market note 43.1 Deutsche Post shares performed positively over the course of 2012. The share price began the year at â,¬11.88, which was also its lowest value. Boosted by the publication of our 2011 financial...

  • Page 39
    ...the end of 2011, which aimed at providing more precise and up-to-date information to analysts and investors. The site was ranked 17 th in the IR Global Rankings amongst 285 participating companies from around the world. 48.0 % germany 1 as at 31 December 2012. Deutsche Post DHL Annual Report 2012...

  • Page 40
    ... note 43.1 We took advantage of favourable conditions on the capital market to issue new bonds as well as a convertible bond for total proceeds of more than â,¬3 billion. Most of the cash generated was used to continue funding our pension obligations. 36 Deutsche Post DHL Annual Report 2012

  • Page 41
    ... Couriers Limited, New Zealand, and Parcel Direct Group Pty Limited, Australia, to our former joint venture partner New Zealand Post. In these markets, we are now focusing on the international express business with time-definite deliveries. In July, we acquired intelliAd Media GmbH, a specialist in...

  • Page 42
    ...At the Annual General Meeting on 29 May 2013, the Board of Management and the Supervisory Board will propose a dividend of â,¬0.70 per share for financial year 2012 (previous year: â,¬0.70) to shareholders. The distribution ratio based on the consolidated net profit attributable to Deutsche Post AG...

  • Page 43
    ...favourable capital market conditions for companies with a high credit quality, at the end of 2012 the Group decided to increase plan assets via debt financing. In the future, excess liquidity will therefore be used for the continued gradual funding of pension liabilities, special dividends and share...

  • Page 44
    ... strategy Credit rating • Maintain "BBB +" and "baa 1" ratings, respectively. • FFO to debt used as dynamic performance metric. Dividend policy • Pay out 40 % - 60 % of net profit. • Consider cash flows and continuity. excess liquidity 1. increase plan assets of german pension plans. 2. Pay...

  • Page 45
    ... Group covers its long-term financing requirements by maintaining a balanced ratio of equity to liabilities. This ensures our financial stability as well as providing adequate flexibility. Our most important source of funds is net cash from operating activities. Deutsche Post DHL Annual Report 2012...

  • Page 46
    ... of the annual report and appropriate planning data. Qualitative factors, such as industryspecific features and the company's market position and range of products and services, are also taken into account. The Group has a Moody's Investors Service credit rating of "Baa 1". At the end of September...

  • Page 47
    ... the DHL divisions. Moody's Investors Service long-term: baa 1 short-term: P - 2 outlook: positive • scale and global presence as the world's largest logistics company. • large and relatively robust mail business in germany. • success in restoring profitability of logistics activities while...

  • Page 48
    ... important source of funding for the Group. We mainly use operating leases to finance real estate but also aircraft, vehicle fleets and IT equipment. A.25 Operating lease liabilities by asset class â,¬m 2011 2012 land and buildings A.26 Capex by region â,¬m germany 979 1,057 americas 259 203 europe...

  • Page 49
    ... we increased expenditures in the Asia Pacific region and Latin America compared with the prior year. A.27 Capex and depreciation, amortisation and impairment losses, full year MAIL 2011 2012 2011 adjusted EXPRESS 2012 GLOBAL FORWARDING, FREIGHT 2011 adjusted 2012 2011 SUPPLY CHAIN 2012 Corporate...

  • Page 50
    ... in the Freight business unit, with the largest projects relating to buildings in Northern and Eastern Europe. In Germany our primary investments were mainly in the purchase of software as well as new office and IT equipment. SUPPLY CHAIN invests in new business In the SUPP4Y CHAIN division, capex...

  • Page 51
    ... The dividend payment to our shareholders increased again, from â,¬786 million to â,¬846 million. The proceeds from issuing shares or other equity instruments amounted to â,¬74 million. The equity component of the convertible bond is recognised in this item. Deutsche Post DHL Annual Report 2012 47

  • Page 52
    ...11,951 million, equity attributable to Deutsche Post AG shareholders was â,¬942 million higher than at 31 December 2011 (â,¬11,009 million). Consolidated net profit for the period increased equity, whilst the dividend payment to our shareholders reduced it. 48 Deutsche Post DHL Annual Report 2012

  • Page 53
    ... VAT payment. Net gearing was 13.8 % at 31 December 2012. A.34 net liquidity (-) / net debt (+) â,¬m 2011 2012 non-current financial liabilities Current financial liabilities Financial liabilities Cash and cash equivalents Current financial assets long-term deposits 1 Positive fair value of...

  • Page 54
    ... revenue of which Mail Communication Dialogue Marketing Press services Value-added services Parcel germany retail outlets global Mail Pension service Consolidation / other Profit from operating activities (EBIT) return on sales (%) 1 operating cash flow EXPRESS revenue of which europe americas asia...

  • Page 55
    ...transport mail and parcels internationally. Mail Business units and products Mail Communication Mail products special services Franking Philately Dialogue Marketing advertising mail tailored end-to-end solutions special services press Services Press distribution services special services Value-Added...

  • Page 56
    ... business units anD MarKet Positions the postal service for Germany A.36 Domestic mail communication market, business customers, 2012 Market volume: â,¬4.2 billion 37.3 % Competition 62.7 % Deutsche Post source: company estimate. Deutsche Post DHL is Europe's largest postal company. We deliver...

  • Page 57
    ...In 2012, business customer volumes again experienced double-digit growth and had a positive impact on growth in the mail-order and parcel services businesses. Overall, our market share in the reporting year was approximately 40.9 %. 40.9 % DHL 59.1 % Competition source: company estimate. Deutsche...

  • Page 58
    ... mail sector, we kept prices stable as dictated by the price-cap procedure. The first postal rate increase in 15 years was approved for 2013. A.41 Mail Communication: volumes mail items (millions) 2011 2012 +/- % Q4 2011 Q4 2012 +/- % business customer letters Private customer letters total...

  • Page 59
    .... A.43 parcel Germany: volumes parcels (millions) 2011 2012 +/- % Q4 2011 Q4 2012 +/- % business customer parcels 1 Private customer parcels total 1 755 115 870 835 120 955 10.6 4.3 9.8 226 39 265 244 40 284 8.0 2.6 7.2 including intra-group revenue. Deutsche Post DHL Annual Report 2012 55

  • Page 60
    ... â,¬496 million. Positive currency effects increased revenue in the reporting year by â,¬48 million. The domestic business in the United States saw an especially encouraging development. A.44 Mail International: volumes mail items (millions) 2011 2012 +/- % Q4 2011 Q4 2012 +/- % global Mail 2,987...

  • Page 61
    ...USA > 50 countries suPPlY CHain Supply Chain logistics solutions Warehousing Distribution Managed transport Value-added services business process outsourcing supply Chain management and consulting Supply Chain focus sectors Locations Global Forwarding > 850 branches Freight > 160 branches products...

  • Page 62
    ...number of our Service Points increased to the current 36,750, 1,000 were added in emerging markets and in Africa alone. At these Service Points, customers paying directly can purchase our Express Easy product even if they do not have a customer account. This simple product with its transparent price...

  • Page 63
    ...customers in Asia our Collect and Return service. The completion of our North Asia Hub in Shanghai puts us in an excellent position for the future. Our customers now have faster access to international markets and benefit from earlier delivery times. source: Market intelligence 2012, annual reports...

  • Page 64
    ... related to the divested domestic express businesses in China, Canada, Australia and New Zealand. Excluding these divestments and positive currency effects of â,¬513 million, revenue grew by 6.8 %. In the Time Definite International (TDI) product line, per-day shipment volumes rose by 9.4 % in 2012...

  • Page 65
    ... exchange rates. these revenues are also the basis for the weighted calculation of working days. A.49 EXPRESS: volumes by product thousands of items per day 1 time Definite international (TDI) time Definite Domestic (TDD) Day Definite Domestic (DDD) 1 2011 adjusted 2012 +/- % Q4 2011 adjusted...

  • Page 66
    ... business in the Asia Pacific region performed very well during the entire financial year. Revenue increased by 15.7 % to â,¬4,301 million (previous year: â,¬3,718 million). In the prior year, this figure still included revenues related to the divested domestic express businesses in China, New...

  • Page 67
    ... rate increases, which decreased the effective capacity in the market to the point that overall vessel use was high throughout the entire year. After transporting 2.72 million twenty-foot equivalent units in 2011, we remained the second largest provider of ocean freight services in 2012. 2,724 DHL...

  • Page 68
    ... 1 Country base: total for 19 european countries, excluding bulk and specialities transport. reVenue anD earnings PerForManCe Freight forwarding business grows profitably in weak market source: MI study, DHL 2012 (based on eurostat, financial publications, IHS global insight). strategic focus...

  • Page 69
    ..., above all in Asia. A number of our suppliers put large, new ships into operation in the fourth quarter, which improved purchasing conditions in the market. Revenue and gross profit both grew by 5.5 % in the reporting year. Our industrial project business (in table A.53 reported as part of Other...

  • Page 70
    ... year-on-year from 3.3 % to 4.2 %. Net working capital declined compared with the prior year as a result of improved receivables management. Operating cash flow was â,¬647 million and therefore slightly below the adjusted prior-year figure of â,¬670 million. 66 Deutsche Post DHL Annual Report 2012

  • Page 71
    ... transport and value-added services as well as business process outsourcing, supply chain management and consulting solutions. By ensuring that our customers' products and information reach their markets quickly and efficiently, we secure them competitive advantages. With local insight and global...

  • Page 72
    ... industry, where supply chains and logistics processes are still developing in many parts of the world. Our offering takes account of steadily rising cost pressure whilst meeting the high quality standards of our customers. The Automotive industry is one of our truly global sectors. Production...

  • Page 73
    ... loss of two major Financial Services customers in the UK in the previous year and a move towards digital publishing in the public sector that reduced print volumes. new business of around â,¬1.2 billion concluded 19 % Consumer 26 % retail A.58 SUPPLY CHAIN: revenue by region, 2012 total revenue...

  • Page 74
    ... in the previous year. A.59 number of employees 2011 2012 +/- % At year-end Headcount 1 Full-time equivalents 2 of which MAIL EXPRESS 3 GLOBAL FORWARDING, FREIGHT 3 SUPPLY CHAIN Corporate Center / other of which germany europe (excluding germany) americas asia Pacific other regions Average for the...

  • Page 75
    ...number of employees in financial year 2013. Staff costs rise staff costs rose by 6.2 % to â,¬17,770 million (previous year: â,¬16,730 million). A.61 Staff costs and social security benefits â,¬m 2011 2012 A.60 employees by region, 2012 1 4 % other regions 15 % asia Pacific 17 % americas 25 % europe...

  • Page 76
    ... enables our employees around the world to share and develop ideas. As a result of the extensive changes to systems and processes associated with that, the total number of ideas declined sharply but expectedly. The quality of the ideas remains outstanding. 72 Deutsche Post DHL Annual Report 2012

  • Page 77
    ... countries. An idea from a DH4 employee in Slovakia also drew international interest. He developed a concept for a customer in the Automotive sector that showed suppliers how to best arrange parts on a pallet, a solution that resulted in higher capacity at lower cost. A.63 Idea management 2011 2012...

  • Page 78
    ... analysed future priorities in a Group-wide project. Talent management, communications and gender diversity training will be our focal points. In October 2012 we received our fifth consecutive Total E-Quality award. The association of the same name recognises companies and organisations that promote...

  • Page 79
    ... safety organisation's quality management system in the reporting year. A.67 Occupational safety 1 2011 3 2012 4 number of workplace accidents 2 12,864 72 320,997 24.9 2 14,167 78.6 311,224 22.0 1 accident rate (number of accidents per 1,000 employees per year) number of working days lost due...

  • Page 80
    ... used less energy and our road transport vehicles consumed less fuel. This was due mainly to the increased demand for air transport, which to a large extent we operate ourselves. A.69 Fuel and energy consumption 1 2011 2012 62 % air transport 1 scopes 1 and 2. Consumption by fleet air transport...

  • Page 81
    ... work life and help them make their own career choices. With Global Volunteer Day and the Living Responsibility Fund we support our employees' volunteering activities. In the reporting year, around 62,000 employees took part in more than 1,000 projects in 114 countries on Global Volunteer Day...

  • Page 82
    ... systems 8 % network supplies 10 % real estate 11 % transport services 12 % air fleet 13 % ground fleet 15 % IT and communications 24 % services Slight rise in expenditure strategic focus, page 100 f. In the year under review, the Group centrally purchased goods and services having a total value...

  • Page 83
    ...Mexico and other European countries. In the reporting year, we introduced the system in 14 countries in the Asia Pacific region as well as in seven countries in Latin America. Further expansion is planned in Europe and Latin America in 2013. We also use e-sourcing to make our processes efficient and...

  • Page 84
    ... our mail and parcel businesses. We offer private and business customers climate-neutral shipping options with our GoGreen products. We are also testing vehicles with hybrid and electric drive technology, as well as energy-saving lighting in our facilities. 80 Deutsche Post DHL Annual Report 2012

  • Page 85
    ... total revenue in the Global Forwarding business unit. The Freight business unit surveyed more than 2,500 customers in 14 European countries. We carried out a detailed analysis of the results and introduced measures to further improve our products and services. Deutsche Post DHL Annual Report 2012...

  • Page 86
    ... year in a row. The company rates its suppliers based on quality, cost management, performance, technical support and speed. Quality translates into competitive advantage in the supply chain business In line with our Strategy 2015, we also want to be the provider of choice in the SUPP4Y CHAIN...

  • Page 87
    Group Management Report Non-Financial Performance Indicators Brands brands A.71 Brands and business units Brand GLOBAL FORWARDING, FREIGHT • global Forwarding • Freight Division brand area MAIL • Mail Communication • Dialogue Marketing • Value-added services • Press services • ...

  • Page 88
    .... FurtHer DeVeloPMents report on post-balance-sheet date events no further significant events There were no significant events with material effects on the Group's earnings, financial position, and assets and liabilities after the balance sheet date. 84 Deutsche Post DHL Annual Report 2012

  • Page 89
    ...Our strong position as market leader in the German mail and parcel business and in nearly all of our logistics activities is the best possible basis for our further growth. We expect consolidated EBIT to reach between â,¬2.7 billion and â,¬2.95 billion in financial year 2013 and the world economy to...

  • Page 90
    ... review supplement and change aggregate report Define measures analyse identify Internal auditors review processes Control review results 5 review measures Monitor early warning indicators 3 Overall strategy / risk management / compliance Determine Manage 4 Operating measures Plan implement...

  • Page 91
    ... report) Deutsche Post DHL uses an internal accounting control system to ensure that Group accounting adheres to generally accepted accounting principles. This system is intended to make sure that statutory provisions are complied with and that both internal and external accounting provide...

  • Page 92
    ... responsible locally (by a chief financial officer, for example) and at a central level by Corporate Accounting and Reporting, Taxes and Corporate Finance at the Corporate Center. Over and above the aforementioned internal accounting control system and risk management structures, Corporate Internal...

  • Page 93
    ... the productivity growth rate specified by the regulatory authority. In the year under review, the regulatory authority approved the prices to be charged in 2013 for the products regulated under the price-cap procedure. glossary, page 218 glossary, page 218 Deutsche Post DHL Annual Report 2012 89

  • Page 94
    ...part of Deutsche Post AG and the tax authorities will be judicially clarified. Risks arising from market and sector-specific conditions In addition to the regulatory environment, market and sector-specific conditions have a significant effect on the performance of our Group. Our business is closely...

  • Page 95
    ...range of electronic communications services, securing our standing as the quality leader and, where possible, making our transport and delivery costs more flexible. We follow developments in the market very closely. Although customer demand will change significantly over the long term, we regard the...

  • Page 96
    ... our most important markets. Risks arising from internal processes strategic focus, page 102 Logistics services are generally provided in bulk and require a complex operational infrastructure with high quality standards. To consistently guarantee reliability and on-time delivery, processes must be...

  • Page 97
    ... our employee survey testify to our progress in this area: employee approval ratings for "working conditions" improved by one percentage point to 77 %, and the ratings for "learning and development" even rose by two percentage points to 70 %. employees, page 73 Deutsche Post DHL Annual Report 2012...

  • Page 98
    ... with respect to agreements on mail transport with major customers. Based upon information from Deutsche Post AG's competitors, the authorities initially suspected that the company had violated the provisions of German and European antitrust law. Deutsche Post AG does not share this opinion. However...

  • Page 99
    ... environment. Deutsche Post DHL is well positioned in terms of its operations. Strategically, the Group is positioned to benefit from momentum on the markets. In previous years, we further improved our cost structures and made them more flexible. In Germany, our future corporate profits could be...

  • Page 100
    ... our operating business and a unified corporate culture and value set. A.74 Strategic approaches Divisional focus MAIL EXPRESS GLOBAL FORWARDING, FREIGHT SUPPLY CHAIN Group-wide initiatives unified corporate culture Innovations Infrastructure Go to market 96 Deutsche Post DHL Annual Report 2012

  • Page 101
    ... air network. GLOBAL FORWARDING, FREIGHT • Focus markets: BRIC + M. • strengthen intra-regional trade in the americas region. • expand presence in the asia Pacific region. • improve network in subsaharan africa. SUPPLY CHAIN • Deepening expertise in focus sectors and strategic products...

  • Page 102
    ... receive real-time track and trace data and we are doing this with the environment in mind: the majority of our delivery services in Germany will be completely carbon neutral in the future. Proximity to our customers is important to us. We operate by far the largest network of fixed-location...

  • Page 103
    ... monitor costs, improve processes and structure our prices as required by economic factors. Detailed reporting systems supply us with the relevant data and thus support profitability management at all levels and in all countries. strategic focus, page 102 Deutsche Post DHL Annual Report 2012 99

  • Page 104
    ...delivery service from the Asia Pacific region, to a number of destination markets in Europe. The product links our intercontinental freight traffic with our comprehensive overland transport network in Europe. It shortens transit times for our customers by offering streamlined and seamless operations...

  • Page 105
    ..., Energy, Life Sciences & Healthcare, Retail and Technology. Dedicated global sector teams offer our customers comprehensive sector-specific solutions along the entire supply chain and ensure an exchange of knowledge on best practices across regions and business units. In our Strategic Products...

  • Page 106
    ...uniform reporting systems, security standards and innovative applications. • Global Business Services: We consolidated the internal services that support the entire Group, including Accounting, IT and Procurement, into our Global Business Services. This allows us to make even more efficient use of...

  • Page 107
    ... changes to the Group's organisational structure are planned for financial year 2013. Future economic parameters Global economy stabilises after weak start to the year At the beginning of 2013, the world economy is in an uncertain position and subject to a number of risks. The EMU sovereign debt...

  • Page 108
    A.76 Global economy: growth forecast % 2012 2013 World trade volumes Real gross domestic product World industrial countries emerging markets Central and eastern europe CIS countries emerging markets in asia Middle east and north africa latin america and the Caribbean africa south of the sahara 2.8...

  • Page 109
    .... Business and private customers are increasingly making use of the online marketplace. We shall continue to drive this development and to expand our market position with our own portals, shipping and delivery services. glossary, page 218 glossary, page 218 Deutsche Post DHL Annual Report 2012...

  • Page 110
    ...continue in 2013. Ocean freight capacities are increasing because new ships are being put into operation. However, market capacities are likely to be managed in such a way as to keep freight rates stable. As in the reporting year, we expect European road transport volumes to grow slightly at best or...

  • Page 111
    ... paying out 40 % to 60 % of net profits as dividends as a general rule. At the Annual General Meeting on 29 May 2013, we intend to propose to the shareholders that a dividend per share of â,¬0.70 be paid for financial year 2012 (previous year: â,¬0.70). Projected financial position Creditworthiness...

  • Page 112
    ...in America, the Asia Pacific region and the UK. Cross-divisional capital expenditure is expected to decrease slightly in 2013. Investments will again be centred on our vehicle fleet and IT. this annual report contains forward-looking statements that relate to the business, financial performance and...

  • Page 113
    109 134 CorPorate goVernanCe B ä¹™ CORpORAte GOVeRnAnCe

  • Page 114
    ... oF tHe suPerVisorY boarD suPerVisorY boarD Members of the supervisory board Committees of the supervisory board boarD oF ManageMent ManDates Mandates held by the board of Management Mandates held by the supervisory board 116 118 118 118 CorPorate goVernanCe rePort remuneration report 119 124

  • Page 115
    ... Board of Management provided us with detailed information on the situation and direction of the company and the Group, strategic initiatives, all key issues related to planning and implementation, and the opportunities and risks for business performance. Special attention was given to the European...

  • Page 116
    ... September 2012, the company organised a Directors' Day to provide Supervisory Board members with basic and further training. Selected speakers gave presentations on the internal control and risk management system and recent changes to accounting standards. In the meeting on 20 September 2012, part...

  • Page 117
    ... examined the business plan for the years from 2013 to 2015 and approved the internal audit plan for 2013. The committee regularly discussed the Group's business development and the internal control and risk management system. The appropriateness of the Group's accounting system was discussed...

  • Page 118
    ... and Audit Committee, the Super visory Board reviewed the annual and consolidated financial statements and the management reports for the 2012 financial year at the financial statements meeting held on 4 March 2013. The review included the Board of Management's proposal for the appropriation of the...

  • Page 119
    ... Deutsche Post AG Anke Kufalt Member of the Works Council, DHL global Forwarding gmbH, Hamburg Andreas Schädler Chair of the general Works Council, Deutsche Post AG Sabine Schielmann Member of the executive board of the general Works Council, Deutsche Post AG Stephan teuscher (since 29 october 2012...

  • Page 120
    boarD oF ManageMent Ken ALLen expReSS born in 1955 Member since February 2009 appointed until February 2017 BRuCe eDWARDS SuppLy CHAIn born in 1955 Member since March 2008 appointed until March 2016 ROGeR CROOK GLOBAL FORWARDInG, FReIGHt born in 1957 Member since March 2011 appointed until March ...

  • Page 121
    ... CHIeF exeCutIVe OFFICeR born in 1961 Member since november 2002, CEO since February 2008 appointed until october 2017 AnGeLA tItzRAtH HuMAn ReSOuRCeS born in 1966 Member since May 2012 appointed until april 2015 LAWRenCe ROSen FInAnCe, GLOBAL BuSIneSS SeRVICeS born in 1957 Member since september...

  • Page 122
    ... bodies Ken Allen DHL-sinotrans international air Courier ltd 1 (board of Directors) Roger Crook DHL global Forwarding Management (asia Pacific) Pte ltd 1 (board of Directors) Bruce edwards ashtead plc (board of Directors) greif, inc. (board of Directors) Williams lea group limited 1 (board of...

  • Page 123
    ...on environmental protection and a commitment to social responsibility. Our commitment was again recognised by leading sustainability indices in the reporting year. employees, page 73 Customers and quality, page 80 ff. Corporate responsibility, page 76 f. Deutsche Post DHL Annual Report 2012 119

  • Page 124
    ...%), a positive trend we intend to accelerate. The Supervisory Board supports the Group's diversity strategy, with a particular focus on the objective of increasing the number of women on the Board of Management. It sees the efforts for greater diversity as being part of long-term succession planning...

  • Page 125
    ... to business partners, co-ordinated reporting of any breaches of law or guidelines, the central management of guidelines and the development and implementation of training and communication on compliance. In particular, 2012 saw the further development of guidelines governing the review process for...

  • Page 126
    ... the half-yearly and quarterly financial reports with the Board of Management before they are published. Based on its own preliminary assessment, it makes proposals for the approval of the annual and consolidated financial statements by the Supervisory 122 Deutsche Post DHL Annual Report 2012

  • Page 127
    ... 1982 he has been CFO at various companies, most recently at Linde AG, where he was responsible for balance sheets, taxation, business management, audits, corporate governance and finance. The Personnel Committee discusses human resources principles for the Group. The Personnel Committee's current...

  • Page 128
    ... taken into account. Numerous members possess special international knowledge and experience. remuneration report The remuneration report also forms part of the Group Management Report. Remuneration structure of the Group Board of Management in financial year 2012 The total remuneration paid...

  • Page 129
    ... average closing price of Deutsche Post shares for the five trading days preceding the exercise date and the exercise price of the SAR. In 2012, the members of the Board of Management each invested 10 % of their annual base salary as a personal financial investment. The waiting period for the stock...

  • Page 130
    ... that neither special remuneration paid, nor the value of rights allocated from long-term incentive plans, may be taken into account in the calculation of the severance payment cap. In the event of a change in control, any member of the Board of Management is entitled to resign their office for good...

  • Page 131
    ... of her transfer to Deutsche Post AG, the company paid her the sum of â,¬538,835. Amount of remuneration paid to active members of the Group Board of Management in financial year 2012 The remuneration paid to active members of the Board of Management in financial year 2012 totalled â,¬13.30 million...

  • Page 132
    ... above. B.06 Remuneration paid to the Group Board of Management in 2012: share-based component with long-term incentive effect â,¬ active board members number of SAR s Value of SAR s on grant date (1 July 2012) Dr Frank appel, Chairman Ken allen roger Crook bruce edwards Jürgen gerdes lawrence...

  • Page 133
    ... in 2014 provided the sustainability indicator is fulfilled. B.08 Remuneration paid to the Group Board of Management in 2011: share-based component with long-term incentive effect â,¬ active board members number of SAR s Value of SAR s on grant date (1 July 2011) Dr Frank appel, Chairman Ken allen...

  • Page 134
    ...ten years of service. The pension level increases gradually based on the period of service on the Board of Management. Subsequent pension benefits increase or decrease to reflect changes in the consumer price index in Germany. B.09 pension commitments under the previous system in financial year 2012...

  • Page 135
    ... Corporate Governance Report Remuneration report B.11 Board of Management pension commitments under the new system in financial year 2012: individual breakdown â,¬ total contribution for 2012 Present value (DBO) as at 31 Dec. 2012 service cost for pension obligation, financial year 2012 Ken allen...

  • Page 136
    ... 20,000 20,000 20,000 30,000 5,000 30,000 20,000 30,000 20,000 this variable remuneration component will fall due for payment as at the end of the 2015 AGM after determination of the consolidated net profit per share for financial year 2014. 132 Deutsche Post DHL Annual Report 2012

  • Page 137
    ...500 - not a board member in financial year 2010. Accordingly, the active members of the Supervisory Board will receive a total of â,¬1,884,625 as the sum of the fixed component and the attendance allowance for 2012, and the variable remuneration for 2010. Deutsche Post DHL Annual Report 2012 133

  • Page 138
    ... 7,500 20,000 20,000 20,000 30,000 30,000 20,000 30,000 12,500 this variable remuneration component will fall due for payment as at the end of the 2014 AGM after determination of the consolidated net profit per share for financial year 2013. 134 Deutsche Post DHL Annual Report 2012

  • Page 139
    135 214 ConsoliDateD FinanCial stateMents C 丙 COnSOLIDAteD FInAnCIAL StAteMentS

  • Page 140
    ... 187 189 189 CasH FloW stateMent stateMent oF CHanges in eQuitY notes to tHe ConsoliDateD FinanCial stateMents oF DeutsCHe Post ag basis oF PreParation 1 2 3 4 5 6 7 8 basis of accounting Consolidated group significant transactions new developments in international accounting under IFRS s Currency...

  • Page 141
    Consolidated Financial Statements Income Statement C.01 inCoMe stateMent 1 January to 31 December â,¬m note 2011 2012 revenue other operating income total operating income Materials expense staff costs Depreciation, amortisation and impairment losses other operating expenses total operating ...

  • Page 142
    ... losses Changes from realised gains and losses income taxes relating to components of other comprehensive income share of other comprehensive income of associates (after tax) Other comprehensive income (after tax) total comprehensive income attributable to Deutsche Post AG shareholders attributable...

  • Page 143
    ... assets inventories income tax assets receivables and other current assets Current financial assets Cash and cash equivalents assets held for sale Current assets total ASSETS EQUITY AND LIABILITIES issued capital other reserves retained earnings equity attributable to Deutsche Post AG shareholders...

  • Page 144
    ... December â,¬m note 2011 2012 Consolidated net profit for the period attributable to Deutsche Post AG shareholders Consolidated net profit for the period attributable to non-controlling interests income taxes net other finance costs net income from associates Profit from operating activities (EBIT...

  • Page 145
    ... Post AG earnings shareholders 38 39 noncontrolling interests 40 total equity note balance at 1 January 2011 Capital transactions with owner Dividend transactions with non-controlling interests Changes in non-controlling interests due to changes in consolidated group Purchase of treasury shares...

  • Page 146
    ... to the parent company Deutsche Post AG. Consolidated group 2011 2012 Basis of accounting As a listed company, Deutsche Post AG prepared its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS s), as adopted by the European Union (EU), and...

  • Page 147
    ...which is reported in other operating income. Deutsche Post DHL acquired 50 % of the shares of Luftfrachtsicherheit-Service GmbH. The company is fully consolidated due to the terms of the contract. Cash purchase price Fair value of the existing equity interest 1 total cost less net assets Difference...

  • Page 148
    ... using the straight-line method, whilst the software is being amortised over five years. The brand name has an indefinite useful life. Goodwill for tag equity, 2011 SUPPLY CHAIN GLOBAL FORWARDING, FREIGHT 100 11 July 2011 USA 100 29 July 2011 â,¬m Fair value Cost australia SUPPLY CHAIN asset...

  • Page 149
    ...order to expand capacity in the Freight business unit. Deutsche Post DHL acquired all of the shares of its LifeConEx 44C, USA, joint venture, previously held by 4CAG USA Inc., USA. This company provides end-to-end cold chain logistics services for the life sciences industry. The change in the method...

  • Page 150
    ..., Deutsche Post DHL sold the freight forwarding company Exel Transportation Services Inc., USA, including Exel Trucking Inc., USA, and Exel Transportation Services Inc. (Canadian Branch), Canada, to the US-based Hub Group. EXPRESS SEGMENT At the end of June 2011, DH4 Express Canada sold its domestic...

  • Page 151
    ..., www.dp-dhl.com/en/investors.html. BALANCE SHEET intangible assets Property, plant and equipment receivables and other assets Cash and cash equivalents trade payables, other liabilities Provisions Financial liabilities INCOME STATEMENT revenue 2 Profit from operating activities (EBIT) 1 2 100...

  • Page 152
    .... A large part of the additional payment amount relates to tax matters for which the Group had in some cases already recognised provisions. The impact on EBIT for the financial year amounted to â,¬181 million, while the interest expense was â,¬115 million. 148 Deutsche Post DHL Annual Report 2012

  • Page 153
    ... convertible bond are contained in note 43. 4 new developments in international accounting under IFRS s The following Standards, changes to Standards and Interpretations are required to be applied on or after 1 January 2012: effective for financial years beginning on or after subject matter and...

  • Page 154
    ...taxes - recovery of revalued non-Depreciable assets) was also incorporated into IAS 12. the change has no effect on the consolidated financial statements. 1 January 2014 these provide clarification on the conditions for offsetting financial assets and liabilities in the balance sheet. a right of set...

  • Page 155
    ... the statement of comprehensive income and statement of changes in equity). Goodwill arising from business combinations after 1 January 2005 is treated as an asset of the acquired company and therefore carried in the functional currency of the acquired company. Deutsche Post DHL Annual Report 2012...

  • Page 156
    ...monetary assets recognised at consolidated companies operating in hyperinflationary economies are generally indexed in accordance with IAS 29 and thus reflect the current purchasing power at the balance sheet date. In accordance with IAS 21, receivables and liabilities in the financial statements of...

  • Page 157
    ... Financial Statements Notes Basis of preparation useful lives Years 1 buildings technical equipment and machinery aircraft IT systems transport equipment and vehicle fleet other operating and office equipment 1 20 to 50 10 to 20 15 to 20 4 to 5 4 to 18 8 to 10 the useful lives indicated...

  • Page 158
    ... at amortised cost using the effective interest method. LOANS AND RECEIVABLES These are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. Unless held for trading, they are recognised at cost or amortised cost at the balance sheet date. The...

  • Page 159
    ... the periods in which the costs they are intended to compensate are incurred. Where the grants relate to the purchase or production of assets, they are reported as deferred income and recognised in the income statement over the useful lives of the assets. Deutsche Post DHL Annual Report 2012 155

  • Page 160
    ... working lives of the active employees and recognised in income. The interest cost and expected return on plan assets components of the pension expense are reported under net financial income / net finance costs, the other components under staff costs. 156 Deutsche Post DHL Annual Report 2012

  • Page 161
    ... information which allows the allocation of the respective proportionate share of the defined benefit obligation, plan assets and costs. The plans are therefore accounted for as if they were defined contribution plans. PENSION PLANS FOR CIVIL SERVANT EMPLOYEES IN GERMANY Deutsche Post AG pays...

  • Page 162
    ... calculated using the tax rates applicable in the individual countries at the balance sheet date or announced for the time when the deferred tax assets and liabilities are realised. The tax rate of 29.8 % (unchanged from the previous year) applied to German Group companies comprises the corporation...

  • Page 163
    ... - e. g., a reduction in the EBIT margin, an increase in the cost of capital or a decline in the long-term growth rate - could result in an impairment loss that could negatively affect the Group's net assets, financial position and results of operations. Deutsche Post DHL Annual Report 2012 159

  • Page 164
    ... operating income, and expenses as well as receivables, liabilities and provisions between consolidated companies are eliminated. Intercompany profits or losses from intra-group deliveries and services not realised by sale to third parties are eliminated. 160 Deutsche Post DHL Annual Report 2012

  • Page 165
    ... 2011 1 EXPRESS 2012 GLOBAL FORWARDING, FREIGHT 2011 1 2012 SUPPLY CHAIN 2011 2012 Corporate Center / other 2011 2012 Consolidation 2011 1 2012 2011 group 2012 external revenue internal revenue total revenue Profit / loss from operating activities (EBIT) net income from associates segment assets...

  • Page 166
    ... logistics and provides warehousing and transport services as well as value-added services along the entire supply chain in the different sectors. The division also offers end-to-end solutions for corporate information and communications management. The division's business units are Supply Chain...

  • Page 167
    ... â,¬m total for reportable segments 2011 1 2012 Corporate Center / other 2011 2012 reconciliation to group / Consolidation 2011 1 2012 Consolidated amount 2011 2012 external revenue internal revenue total revenue other operating income Materials expense staff costs other operating expenses...

  • Page 168
    ...The increase in the materials expense is due on the one hand to higher aircraft fuel prices, and on the other hand to higher transportation costs as a result of the expansion of business activities. Other expenses include a large number of individual items. 164 Deutsche Post DHL Annual Report 2012

  • Page 169
    ... in net financial income / net finance costs, as well as contributions to defined contribution pension plans. Detailed information can be found in notes 6, 17 and 41. The average number of Group employees in the year under review, broken down by employee group, was as follows: employees 2011 2012...

  • Page 170
    ... 2011 2012 net other finance costs 2011 2012 other business taxes travel and training costs expenses for advertising and public relations Cost of purchased cleaning and security services insurance costs Warranty expenses and compensation payments telecommunication costs Consulting costs Write...

  • Page 171
    ... in the balance sheet for companies that reported a loss in the previous year or in the current period as, based on tax planning, realisation of the tax asset is probable. In financial year 2012, as in the previous year, German Group companies were not affected by tax rate changes. The change in the...

  • Page 172
    ...consolidated net profit by the average number of shares. Basic earnings per share for financial year 2012 were â,¬1.37 (previous year: â,¬0.96). Basic earnings per share 2011 2012 Consolidated net profit for the period attributable to Deutsche Post AG shareholders Weighted average number of shares...

  • Page 173
    ...Intangible assets 23.1 Overview internally generated intangible assets Purchased brand names Purchased customer lists other purchased intangible assets goodwill advance payments and intangible assets under development total Cost Balance at 1 January 2011 additions from business combinations...

  • Page 174
    ... and in global trade, and the ongoing trend towards outsourcing logistics activities. Cost trend forecasts for the transportation network and services also have an impact on value in use. The pre-tax cost of capital is based on the weighted average cost of capital. The (pre-tax) discount rates for...

  • Page 175
    ... Group has paid advances in connection with uncompleted transactions. Assets under development relate to items of property, plant and equipment in progress at the balance sheet date for whose production internal or third-party costs have already been incurred. Deutsche Post DHL Annual Report 2012...

  • Page 176
    ...receivables assets at fair value through profit or loss lease receivables non-current financial assets 172 428 94 35 729 162 737 115 25 1,039 26 â,¬m Investments in associates Investments in associates changed as follows: 2011 2012 as at 1 January additions Changes in group's share of equity...

  • Page 177
    ... can be assumed that the Group will probably not be able to use these tax loss carryforwards and temporary differences in its tax planning. income tax liabilities All income tax assets and liabilities are current and have maturities of less than one year. Deutsche Post DHL Annual Report 2012 173

  • Page 178
    ...germany - (MAIL segment) exel inc., USA - real estate (SUPPLY CHAIN segment) DHL logistics (China) Co. ltd., China - real estate (SUPPLY CHAIN segment) Cargus international S. R. L., romania - domestic express business (EXPRESS segment) Deutsche Post immobilien gmbH, germany - real estate (Corporate...

  • Page 179
    ...the financial liability of â,¬7 million related to the warehouse. CARGUS INTERNATIONAL S. R. L. Since the middle of October 2012, Deutsche Post DHL has intended to sell the domestic express business in Romania. The transaction is expected to be completed in the first quarter of 2013. The assets and...

  • Page 180
    ... used for the purposes of listing on a stock exchange outside Germany. In addition, the Board of Management is authorised to acquire treasury shares using derivatives. As on 31 December 2011, Deutsche Post AG did not hold any treasury shares on 31 December 2012. 176 Deutsche Post DHL Annual Report...

  • Page 181
    Consolidated Financial Statements Notes Balance sheet disclosures 36.4 Disclosures on corporate capital The equity ratio was 35.6 % in financial year 2012 (previous year: 29.2 %). The company's capital is monitored using the net gearing ratio which is defined as net debt divided by the total of ...

  • Page 182
    ... year 2012 for the year 2011 Dividend distributed in financial year 2011 for the year 2010 846 786 0.70 0.65 The dividend is tax-exempt for shareholders resident in Germany. No capital gains tax (investment income tax) will be withheld on the distribution. 178 Deutsche Post DHL Annual Report...

  • Page 183
    ... This balance sheet item includes adjustments for the interests of non-Group shareholders in the consolidated equity from acquisition accounting, as well as their interests in profit or loss. The interests relate primarily to the following companies: â,¬m 2011 2012 DHL sinotrans international air...

  • Page 184
    ...assets was determined by reference to long-term bond yields (government and corporate). In this process, suitable risk premiums were applied on the basis of historical market returns and current market expectations taking plan asset structures into account. 180 Deutsche Post DHL Annual Report 2012

  • Page 185
    Consolidated Financial Statements Notes Balance sheet disclosures 41.4 Reconciliation of the present value of the defined benefit obligation, the fair value of plan assets and the pension provisions â,¬m germany UK other total 2012 Present value of defined benefit obligation at 31 December for ...

  • Page 186
    41.5 Changes in the present value of the total defined benefit obligation â,¬m germany UK other total 2012 Present value of total defined benefit obligation at 1 January Current service cost, excluding employee contributions employee contributions interest cost benefit payments Past service cost ...

  • Page 187
    Consolidated Financial Statements Notes Balance sheet disclosures 41.6 Changes in the fair value of plan assets â,¬m germany UK other total 2012 Fair value of plan assets at 1 January employer contributions employee contributions expected return on plan assets gains (+) / losses (-) on plan assets...

  • Page 188
    ... benefit obligations are recognised until financial year 2008 with the amounts of the Deutsche Postbank group included. 41.9 Changes in net pension provisions â,¬m germany UK other total 2012 net pension provisions at 1 January Pension expense benefit payments employer contributions employee...

  • Page 189
    Consolidated Financial Statements Notes Balance sheet disclosures 41.10 pension expense â,¬m germany UK other total 2012 Current service cost, excluding employee contributions interest cost expected return on plan assets recognised past service cost amortisation of unrealised gains (-) / losses ...

  • Page 190
    ... employee benefits restructuring provisions technical reserves (insurance) Postage stamps tax provisions Miscellaneous provisions total as at 1 January 2012 1 Changes in consolidated group utilisation Currency translation differences reversal unwinding of discount / changes in discount rate...

  • Page 191
    ... bond; the equity component is recognised in capital reserves. the fair value of the listed convertible bond was â,¬1,049 million at the balance sheet date. Two new bonds with an aggregate principal amount of â,¬1.25 billion were placed on the market in June 2012 under the Debt Issuance Programme...

  • Page 192
    ... partner interest rate end of term asset DHL express (US) inc., USA Wachovia Financial services; Wells Fargo 6.74 % sorting system 2019 / 2022 software Warehouse, office 2012 / 2013 equipment 2019 real estate 2015 IT equipment 2016 real estate 36 34 SCM supply Chain Management inc., Canada...

  • Page 193
    Consolidated Financial Statements Notes Balance sheet disclosures 44 â,¬m Other liabilities non-current 2011 2012 2011 Current 2012 2011 total 2012 other liabilities 347 276 4,106 4,004 4,453 4,280 44.1 â,¬m Breakdown of other liabilities 44.2 Maturity structure â,¬m 2011 2012 2011 ...

  • Page 194
    ... calculated by adjusting consolidated net profit / loss for tax expenses, net financial income / net finance costs and non-cash factors, as well as taxes paid, changes in provisions and in other non-current assets and liabilities (net cash from operating activities before changes in working capital...

  • Page 195
    ... to the interest payments related to the additional VAT payment required by the tax authorities. As a result of its operating activities, the Group is exposed to financial risks that may arise from changes in exchange rates, commodity prices and interest rates. Deutsche Post DHL manages these risks...

  • Page 196
    ... in money market funds and, in addition to a further â,¬736 million in cash, was transferred to a Contractual Trust Arrangement (CTA) at the end of December. The newly generated plan assets, note 41, serve solely to meet the pension commitments of Deutsche Post AG. The mandatory exchangeable bond...

  • Page 197
    ... settlement). No cash flows were reported in the maturity bands for "More than 2 years to 3 years", "More than 3 years to 4 years", "More than 4 years to 5 years" and "More than 5 years" as at 31 December 2012, because all derivatives will mature by 2014. Deutsche Post DHL Annual Report 2012 193

  • Page 198
    ... foreign exchange differences directly impact profit or loss. In order to mitigate this impact as far as possible, all significant balance sheet currency risks within the Group are centralised at Deutsche Post AG through the in-house bank function. The centralised risks are aggregated by Corporate...

  • Page 199
    ... bank accounts as well as internal and external loans extended by Deutsche Post AG. The foreign currency value at risk of the foreign currency items concerned was â,¬3 million at the reporting date (previous year: â,¬4 million). In addition, hypothetical changes in exchange rates affect equity and...

  • Page 200
    ... price changes would affect both the fair values of the derivatives and the income statement. If the underlying commodity prices had been 10 % higher at the reporting date, this would have increased the fair values in question and, consequently, operating profit by â,¬0 million (previous year...

  • Page 201
    ...financial assets (previous year: â,¬170 million). The majority of this concerns collateral deposited for QTE leases. In addition to collateral for QTE leases, the collateral reported in 2011 consisted largely of collateral relating to the sale of the Deutsche Postbank AG shares held by Deutsche Post...

  • Page 202
    ... used in the Group and their fair values. Derivatives with amortising notional volumes are reported in the full amount at maturity. Derivative financial instruments â,¬m Fair values in 2012, by maturity 2011 2012 Fair value of assets Fair value of liabilities less than 1 year assets less than 1 year...

  • Page 203
    ... of fair value hedges â,¬m 2011 2012 CASH FLOW HEDGES The Group uses currency forwards and swaps to hedge the cash flow risks from future foreign currency operating revenue and expenses. The fair values of currency forwards and swaps amounted to â,¬-10 million at the reporting date (previous year...

  • Page 204
    ... financial liabilities also include the convertible bond issued by Deutsche Post AG in December 2012. the listed bond had a fair value of â,¬1,049 million at the balance sheet date. a fair value of â,¬929 million was reported for the debt component at the balance sheet date. 200 Deutsche Post DHL...

  • Page 205
    Consolidated Financial Statements Notes Other disclosures other financial instruments outside the scope of IAS 39 loans and receivables / other financial liabilities Derivatives designated as hedging instruments lease receivables / finance lease liabilities Fair value of financial instruments ...

  • Page 206
    ... liabilities were designated as a hedged item in a fair value hedge and are thus subject to a basis adjustment. they are therefore recognised neither at full fair value nor at amortised cost. No assets were reclassified in financial years 2012 and 2011. 202 Deutsche Post DHL Annual Report 2012

  • Page 207
    Consolidated Financial Statements Notes Other disclosures other financial instruments outside the scope of IAS 39 loans and receivables / other financial liabilities Derivatives designated as hedging instruments lease receivables / finance lease liabilities Fair value of financial instruments ...

  • Page 208
    ... into account; measurement depends largely on financial ratios. Gains of â,¬5 million from the change in fair value impacted net finance costs in 2012; note 17. Financial assets and liabilities, 2011 â,¬m level 1 2 Measurement using key inputs based on observable market data 3 Measurement using key...

  • Page 209
    ... assets and liabilities at fair value through profit or loss trading Fair value option other financial liabilities - 94 -111 Lease obligations 231 -1 1 -337 0 2 â,¬m 2011 2012 land and buildings aircraft transport equipment technical equipment and machinery other equipment, operating and office...

  • Page 210
    ... Deutsche Post AG and DH4 Vertriebs GmbH. The European Commission did not revisit the 1999 sale of shares of Deutsche Postbank AG to Deutsche Post AG in its ruling. However, in its review of the funding of civil servants' pensions, the European Commission concluded that Deutsche Post AG had received...

  • Page 211
    ... conditions are met, the executive will again be awarded the same number of Deutsche Post AG shares four years later (matching shares). Share Matching Scheme 2009 tranche 2010 tranche 2011 tranche 2012 tranche grant date term end of term share price at grant date number of incentive shares number...

  • Page 212
    ..., the members of the Board of Management receive SAR s under the 2006 Long-Term Incentive Plan. Each SAR under the 2006 4TIP entitles the holder to receive a cash settlement equal to the difference between the average closing price of Deutsche Post shares during the last five trading days before the...

  • Page 213
    ...despite its non-controlling interest, has a secure majority at the Annual General Meeting due to its average presence there. Deutsche Telekom is therefore a related party of Deutsche Post AG. In financial year 2012, Deutsche Post DHL provided goods and services (mainly transport services for letters...

  • Page 214
    ... the function or work performed in the company. Post-employment benefits are recognised as the service cost resulting from the pension provisions for active members of the Board of Management. The share-based payment amount relates to the relevant expense recognised for financial years 2011 and 2012...

  • Page 215
    ... active members of the Board of Management in financial year 2012 including the components with a long-term incentive effect totalled â,¬20.3 million (previous year: â,¬19.0 million). Of this amount, â,¬7.6 million (previous year: â,¬7.4 million) is attributable to non-performance-related components...

  • Page 216
    ... Forwarding Management GmbH • DH4 Global Management GmbH • DH4 Home Delivery GmbH • DH4 Hub Leipzig GmbH • DH4 International GmbH • DH4 Logistics GmbH • DH4 Solutions Fashion GmbH • DH4 Solutions GmbH • DH4 Solutions Großgut GmbH • DH4 Solutions Retail GmbH • DH4 Supply Chain...

  • Page 217
    ..., the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together...

  • Page 218
    ... sheet, the cash flow statement, the statement of changes in equity, and the notes to the consolidated financial statements, for the business year from 1 January to 31 December 2012. BOARD OF MANAGEMENT'S RESPONSIBILITY FOR CONSOLIDATED FINANCIAL STATEMENTS The Board of Management of Deutsche Post...

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    215 224 FurtHer inForMation D 丁 FuRtHeR InFORMAtIOn

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    D inDex glossarY FurtHer inForMation 217 218 219 220 222 224 graPHs anD tables loCations Multi-Year reVieW ContaCts

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    ... f., 83, 106, 144, 162 Working capital 31 f., 46, 56, 62, 66, 69, 78, 170, 190 t tax rate 223 trade volumes 27 f., 105, 107 training 72, 93, 99 l letters of comfort 39, 42 living responsibility Fund 77 liquidity management 41, 191 f. F Finance strategy 39 ff., 107 First Choice 20, 81 f., 92, 99, 101...

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    ... logistics service provider. services are tailored to a particular industry or customer and are generally based on long-term contracts. Day Definite Delivery of shipments on a specified day. DHL Customer Solutions & Innovation (DSI) a unit in which we merged our key account management, global...

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    ... logistics market, 2011: top 10 A.57 SUPPLY CHAIN: revenue by sector, 2012 A.58 SUPPLY CHAIN: revenue by region, 2012 non-Financial performance Indicators A.59 number of employees A.60 employees by region, 2012 A.61 staff costs and social security benefits A.62 traineeships, Deutsche Post DHl...

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    ... Malta netherlands norway Poland Portugal romania russia serbia slovakia slovenia spain sweden switzerland ukraine united Kingdom 1 Countries according to the list of shareholdings, which can be accessed on the website www.dp-dhl.com/en/investors.html. 220 Deutsche Post DHL Annual Report 2012

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    Further Information Locations Middle east ...China east timor Fiji French Polynesia india indonesia Japan Kazakhstan laos Macau Malaysia nepal new Caledonia new Zealand Pakistan Papua new guinea Philippines singapore south Korea sri lanka taiwan thailand Vietnam Deutsche Post DHL Annual Report 2012...

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    Multi-Year reVieW D.02 Key figures 2005 to 2012 â,¬m 2005 adjusted 2006 adjusted 2007 adjusted 2008 adjusted 2009 adjusted 2010 adjusted 2011 adjusted 2012 Revenue MAIL EXPRESS LOGISTICS GLOBAL FORWARDING, FREIGHT SUPPLY CHAIN FINANCIAL SERVICES SERVICES Divisions total Corporate Center / other (...

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    ... 2010 2011 2012 employees / staff costs (from 2007: continuing operations) total number of employees (headcount including trainees) Full-time equivalents average number of employees (headcount) staff costs staff cost ratio 2 Key figures revenue / income / assets and capital structure return on...

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    ...Annual Report external E-mail: ir @ deutschepost.de dp-dhl.com/en/investors.html Internal get and DHL Webshop Mat. no. 675-602-339 publication Published on 12 March 2013. english translation Deutsche Post Corporate language services et al. the english version of the annual report 2012 of Deutsche...

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    ... 2013 2014 annual rePort 2013 interiM rePort JanuarY to MarCH 2014 2014 annual general Meeting (FranKFurt aM Main) DiViDenD PaYMent interiM rePort JanuarY to June 2014 interiM rePort JanuarY to sePteMber 2014 12 MarCH 2014 15 MaY 2014 27 MaY 2014 28 MaY 2014 5 august 2014 12 noVeMber 2014 inVestor...

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    Deutsche Post AG Headquarters investor relations 53250 bonn germany dp-dhl.com