DHL 2015 Annual Report Download - page 63

Deutsche Post  Group —  Annual Report
Financial position
Selected cash flow indicators .
 m
2014 2015
Cash and cash equivalents as at  December 2,978 3,608
Change in cash and cash equivalents –395 615
Net cash from operating activities 3,040 3,444
Net cash used in investing activities –1,087 –1,462
Net cash used in financing activities –2,348 –1,367
Financial management is a centralised function in the Group
e Group’s nancial management activities include managing cash and liquidity; hedg-
ing interest rate, currency and commodity price risk; arranging 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 (Germany), which is supported by three Regional Treasury Centres
in Bonn, 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 continuous nancial stability and exibility. In order to
maintain 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 upon the principles and aims of nancial manage-
ment. In addition to the interests of shareholders, the strategy also takes creditor re-
quirements 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.
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Group Management Report — REPORT ON ECONOMIC POSITION — Results of operations — Financial position