DHL 2015 Annual Report Download - page 47

Deutsche Post  Group —  Annual Report
Group management
FINANCIAL PERFORMANCE INDICATORS
Impact on management compensation
Deutsche Post  Group uses both nancial and non-nancial performance indicators
in its management of the Group. e monthly, quarterly and annual changes in these
indicators are compared with the prior-year data and the forecast data to assist in mak-
ing management decisions. e year-to-year changes in nancial and non-nancial
performance metrics portrayed here are also particularly relevant for calculating manage-
ment remuneration. e Group’s nancial performance indicators are intended to pre-
serve a balance between protability, an ecient use of resources and sucient liquid-
ity. e performance of these indicators in the reporting year is described in the Report
on economic position.
Profit from operating activities measures earnings power
e protability of the Group’s operating divisions is measured as prot from operating
activities .  is calculated by deducting materials expense and sta costs,
depreciation, amortisation and impairment losses, as well as other operating expenses
from revenue and other operating income, and adding net income from investments
accounted for using the equity method. Interest and other nance costs / other nancial
income are deducted from or added to net nancial income / net nance costs. To enable
a comparison of divisions, the return on sales is calculated as the ratio of  to revenue.
 after asset charge promotes ecient use of resources
Since , the Group has used  aer asset charge  as an additional key per-
formance indicator.  is calculated by subtracting the cost of capital component, or
asset charge, from . Making the asset charge a part of business decisions encourages
the ecient use of resources and ensures that the operating business is geared towards
increasing value sustainably whilst generating increasing cash ow.
e asset charge is calculated on the basis of the weighted average cost of capital, or
, which is dened as the weighted average net cost of interest-bearing liabilities
and equity, taking into account company-specic risk factors in accordance with the
Capital Asset Pricing Model.
A standard  of .  is applied across the divisions. at gure also represents
the minimum target for projects and investments within the Group. e  is gen-
erally reviewed once annually on the basis of 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. To ensure better comparability with previous gures, in  the  was
maintained at a constant level compared with the previous years.
e asset charge calculation is performed each month so that uctuations in the net
asset base can also be taken into account during the year. Table . shows the compo-
sition of the net asset base.
Page  ff.
 calculation .
Revenue
Other operating income
Materials expense
Staff costs
Depreciation, amortisation
and impairment losses
Other operating expenses
Net income from investments
accountedfor using the equity method
Profit from operating activities 
 calculation .

Asset charge
= Net asset base
× Weighted average cost of capital

 after asset charge 
Net asset base calculation .
Operating assets
• Intangible assets
• Property, plant and equipment
• Goodwill
• Trade receivables
( includedinnetworking capital)
• Other non-current operating assets
Operating liabilities
• Operating provisions
(not includingprovisions for
pensionsand similar obligations)
• Trade payables
( includedinnet working capital)
• Other non-current operating liabilities
Net asset base
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Group Management Report — GENERAL INFORMATION — Objectives and strategies — Group management