DHL 2013 Annual Report Download - page 55

sorting systems and the vehicle eet increased year-on-year, they were unable to com-
pensate for the decrease in intangible assets as a result of amortisation and impairment
as well as exchange rate losses.
e decline in operating provisions is due to the utilisation of some of the provi-
sion for postage stamps, amongst other factors. In addition, the decrease in other non-
current assets and liabilities contributed to the decline in the net asset base.
. Net asset base (unconsolidated)
 m 31 Dec. 2012
adjusted 1
31 Dec. 2013 + / – %
Intangible assets, property, plant and equipment, and goodwill 18,860 18,698 – 0.9
Net working capital – 503 – 675 34.2
Operating provisions (excluding provisions for pensions
and similar obligations) –2,825 –2,633 – 6.8
Other non-current assets and liabilities – 96 – 60 –37.5
Net asset base 15,436 15,330 – 0.7
1 Prior-year amounts adjusted due to a revised calculation basis.
Financial position
Financial management is a centralised function in the Group
e Group’s nancial management activities include managing cash and liquidity;
hedging interest rate, currency and commodity price risk; ensuring Group nancing;
issuing guarantees and letters of comfort and liaising with rating agencies. We steer
processes centrally, which allows us to work eciently and successfully manage risk.
Responsibility for these activities rests with Corporate Finance at Group head-
quarters in Bonn, which is supported by three Regional Treasury Centres in Bonn
( Germany), Weston  and Singapore. ese act as interfaces between headquarters
and the operating companies, advise the companies on all nancial management issues
and ensure compliance with Group-wide requirements.
Corporate Finance’s main task is to minimise nancial risk and the cost of capital,
whilst preserving the Group’s lasting nancial stability and exibility. In order to main-
tain its unrestricted access to the capital markets, the Group continues to aim for a credit
rating appropriate to the sector. We therefore monitor the ratio of our operating cash
ow to our adjusted debt particularly closely. Adjusted debt refers to the Group’s net
debt, allowing for unfunded pension obligations and liabilities under operating leases.
Maintaining financial flexibility and low cost of capital
e Group’s nance strategy builds on the principles and aims of nancial manage-
ment. In addition to the interests of shareholders, the strategy also takes lender require-
ments into account. e goal is for the Group to maintain its nancial exibility and low
cost of capital by ensuring a high degree of continuity and predictability for investors.
A key component of this strategy is a target rating of “+”, which is managed via
a dynamic performance metric known as funds from operations to debt ( to debt).
Our strategy additionally includes a sustained dividend policy and clear priorities re-
garding the use of excess liquidity, which is to be used to gradually increase plan assets
of our German pension plans as well as paying special dividends or buying back shares.
51Deutsche Post DHL 2013 Annual Report
Group Management Report Report on Economic Position
Results of operations
Financial position