DHL 2013 Annual Report Download - page 103

Since  July , as a result of the revision of the relevant tax exemption provisions,
the  exemption has only applied to those specic universal services in Germany
that are not subject to individually negotiated agreements or provided on special terms
(discounts etc.). Deutsche Post  does not believe that the legislative amendment fully
complies with the applicable provisions of European Community law. Due to the legal
uncertainty resulting from the new legislation, Deutsche Post  is endeavouring to
clarify certain key issues with the tax authorities. Although Deutsche Post  is imple-
menting the required measures to a large extent, the diering legal opinions on the part
of Deutsche Post  and the tax authorities will be judicially claried.
In light of the announced legal proceedings, we have not undertaken a risk classi-
cation.
Risks arising from corporate strategy
Over the past years, the Group has ensured that its business activities are well pos-
itioned in the world’s fastest growing regions and markets. We have also created ecient
structures in all areas to enable us to exibly adapt capacities and costs to demand – a
prerequisite for lasting, protable business success. With respect to strategic orientation,
we are focusing on our core competencies in the mail and logistics businesses with an
eye towards growing organically and simplifying our processes for the benet of our
customers. In the specied period under consideration, risks arising from the current
corporate strategy, which extends over a long-term period, are considered to have a low
relevance for the Group. In addition, the divisions face the following special situations:
In the  division, we are responding to the challenges presented by the structural
change from a physical to a digital business. We are counteracting the risk arising from
changing demand by expanding our range of services. Due to the e-commerce boom,
we expect our parcel business to continue growing robustly in the coming years and are
therefore extending our parcel network. We are also expanding our range of electronic
communications services, securing our standing as the quality leader and, where pos-
sible, making our transport and delivery costs more exible. We follow developments
in the market very closely and take these into account in our earnings projections. For
the specied forecast period, we do not see these developments as having any signicant
potential to sustain a negative impact.
In the  division, our future success depends above all on general factors
such as trends in the competitive environment, costs and quantities transported. Aer
having spent recent years successfully restructuring our business and substantially
improving cost structures, we are focusing on fostering growth in our international
business. We expect an increase in shipment volumes. Based on this assumption, we are
investing in our network, our services, our employees and the  brand. Against the
backdrop of the past trend and the overall outlook, we do not see any signicant strategic
risk for the  division beyond that reported in the section entitled “Risks arising
from market and sector-specic conditions”.
99Deutsche Post DHL 2013 Annual Report
Opportunities and Risks
Risks
Group Management Report