DHL 2012 Annual Report Download - page 35

Group management
 after asset charge increases
Since , Deutsche Post DHL has used  aer asset charge  as a key
performance indicator.  is calculated by subtracting a cost of capital component, or
asset charge, from .
By including the asset charge in our business decisions, we encourage all divisions
to use resources eciently and to organise our operating business to increase value sus-
tainably whilst generating cash ow. In the reporting year,  served as a key perform-
ance indicator in addition to  and was also used as a basis on which to determine
management remuneration.
To calculate the asset charge, the net asset base is multiplied by the weighted average
cost of capital . e asset charge calculation is performed each month so that we
can also take uctuations in the net asset base into account during the year.
All of our divisions use a standard calculation for the net asset base. e key com-
ponents of operating assets are intangible assets, including goodwill, property, plant and
equipment and net working capital. Provisions and operating liabilities are subtracted
from operating assets.
e Group’s  is dened as the weighted average net cost of interest-bearing
liabilities and equity, taking into account company-specic risk factors in a beta factor
in accordance with the Capital Asset Pricing Model.
We apply a standard  of .  across the divisions and this also represents a
minimum target for projects and investments within the Group. e  is generally
adjusted to adhere to the current situation on the nancial markets. However, the goal
is not to match every short-term change but to reect long-term trends. e  is
reviewed once annually. e  used reects company-specic risks and the net
cost of interest-bearing liabilities and equity in the current market environment. As in
previous years, we did not change the  in order to prevent our internal resource
allocation from being inuenced by short-term, minor uctuations in capital market
interest rates. A constant  also ensures that  is comparable with previous years.
In our reporting for the prior years, the net asset base was broken down into current
and non-current assets and liabilities. In the year under review, the individual compo-
nents of the net asset base were regrouped to increase transparency for the drivers of
asset charges in the context of internal and external reporting. e denition of the
net asset base, the methods for calculating the asset charge and  have not changed.
 improved from , million to , million in , primarily due to the
 divisions’ rising protability. e asset charge increased by . , which was pre-
dominantly attributable to our high capital expenditures throughout the divisions.
.  calculation

Asset charge
= Net asset base
× Weighted average cost of capital
 after asset charge 
. Net asset base calculation
Operating assets
• Intangible assets including goodwill
• Property, plant and equipment
• Trade receivables, other operating
assets
Operating liabilities
• Operating provisions
• Trade payables, other operating
liabilities
Net asset base
Deutsche Post DHL Annual Report 
Group Management Report
Business and Environment
Group management
31