Deutsche Post DHL Annual Report 2012

Annual Report 2012

Seal: DHL in China

Earnings

Excerpts from Deutsche Post AG's 2012 Group Annual Report.

Selected indicators for results of operations
 
2011 2012
Revenue m 52,829 55,512
Profit from operating activities (EBIT) m 2,436 2,665
Return on sales1 % 4.6 4.8
Consolidated net profit for the period2 m 1,163 1,658
Earnings per share3 0.96 1.37
Dividend per share 0.70 0.704
  1. EBIT/revenue.
  2. After deduction of non-controlling interests.
  3. Basic earnings per share.
  4. Proposal.


Changes in portfolio and reporting

In the first quarter of 2012, responsibility for the less-than-truckload and part-truckload business in the Czech Republic was transferred from the EXPRESS division to the GLOBAL FORWARDING, FREIGHT division. The previous year’s segment reporting figures were adjusted accordingly.

During the second quarter, we sold our shares in the joint ventures Express Couriers Limited, New Zealand, and Parcel Direct Group Pty Limited, Australia, to our former joint venture partner New Zealand Post. In these markets, we are now focusing on the international express business with time-definite deliveries.

In July, we acquired intelliAd Media GmbH, a specialist in search engine advertising domiciled in Munich. The company has been assigned to the MAIL division, where it is helping us to position ourselves as a central provider of technological infrastructures for online advertising.

Due to a change in contractual arrangements, the joint venture Exel Saudia LLC, which was previously proportionately consolidated, was fully consolidated in the fourth quarter. The company is part of the SUPPLY CHAIN division.

There were no other significant changes in reporting.


Consolidated revenue up 5.1%

Consolidated revenue increased by 5.1% to €55,512 million in financial year 2012 (previous year: €52,829 million). The proportion of consolidated revenue generated abroad grew from 68.3% to 69.7%, with positive currency effects accounting for €1,738 million of this increase. By contrast, changes in the portfolio reduced revenue by €216 million. In the fourth quarter, revenue rose 3.2% to €14,577 million (previous year: €14,126 million). Changes in the portfolio reduced revenue by €34 million, whilst currency effects lifted it by €233 million.

Other operating income rose by 5.8% to €2,168 million, mainly due to the reversal of surplus provisions and accruals.

Consolidated revenue

Transport costs push up materials expense

Higher transport volumes, freight costs and fuel prices pushed up materials expense by €1,319 million to €31,863 million.

Staff costs also increased, rising from €16,730 million to €17,770 million in the year under review. In the SUPPLY CHAIN division in particular, the increase in the business volume led to a rise in staff numbers. Currency effects also pushed up costs significantly.

At €1,339 million, depreciation, amortisation and impairment losses were €65 million higher than in the previous year, principally as a result of investments made in the past.

Other operating expenses increased by €148 million to €4,043 million, mainly due to the additional VAT payment.


Development of revenue, other operating income and operating expenses
€m %
Revenue 55,512 5.1
  • Revenue increase, particularly in DHL divisions
  • €1.7 billion in currency effects
Other operating income 2,168 5.8
  • Increase mainly due to the reversal of surplus provisions and accruals
Materials expense 31,863 4.3
  • Higher transport volumes
  • Higher freight costs and fuel prices
Staff costs 17,770 6.2
  • Increased number of staff, mostly in SUPPLY CHAIN
  • Increase also due to currency effects
Depreciation, amortisation and impairment losses 1,339 5.1
  • Result of higher investments in the past
Other operating expenses 4,043 3.8
  • Increase mainly due to additional VAT payment

Consolidated EBIT rises 9.4% year-on-year

At €2,665 million, profit from operating activities (EBIT) was 9.4% up on the prior-year figure (€2,436 million). In the fourth quarter, EBIT was €228 million higher year-on-year at €827 million.

Net finance costs improved to €427 million (previous year: €777 million), mainly due to the disposal gain recorded on the Postbank sale.

Profit before income taxes increased from €1,659 million to €2,238 million. This caused income taxes to rise from €393 million to €458 million.

Consolidated EBIT

Net profit and earnings per share improve

Consolidated net profit for the period rose from €1,266 million to €1,780 million. €1,658 million of this amount is attributable to shareholders of Deutsche Post AG and €122 million to non-controlling interest holders. Basic and diluted earnings per share also increased, up from €0.96 to €1.37 and €1.32 respectively.

Total dividend and dividend per no-par value share


Dividend of €0.70 per share proposed

At the Annual General Meeting on 29 May 2013, the Board of Management and the Supervisory Board will propose a dividend of €0.70 per share for financial year 2012 (previous year: €0.70) to shareholders. The distribution ratio based on the consolidated net profit attributable to Deutsche Post AG shareholders amounts to 51.0%. The net dividend yield based on the year-end closing price of our shares is 4.2%. The dividend will be distributed on 30 May 2013 and is tax-free for shareholders resident in Germany.

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