Sharp decline in cross-divisional investments

Cross-divisional investments fell from €459 million to €234 million and concentrated mainly on vehicle purchases and IT. The prior-year figure includes the reversal of a purchase agreement concluded with Viterra Logistik Immobilien GmbH & Co. KG. The relevant properties were brought into Deutsche Post Immobilienentwicklung Grundstücksgesellschaft mbH & Co. Logistikzentren KG in December 2007. Deutsche Post Fleet GmbH invested €160 million in new and replacement vehicles. A total of €41 million was allocated to IT, particularly for improving the IT infrastructure, security systems and software licences.

Significant improvement in free cash flow

Net cash from operating activities (Postbank at equity) increased significantly by €554 million year-on-year to €3,362 million. Net cash before changes in working capital was slightly below the prior-year level at €120 million. The decrease in EBIT was negatively affected in particular by increased non-cash additions to provisions. EBIT was also reduced, amongst other things, by non-cash write-downs on goodwill and intangible assets, which were added back in the depreciation/amortisation of non-current assets item. EBIT was strengthened amongst other things by the €572 million repayment from the state aid proceedings which impacted cash flow. The reduction in working capital was a key factor in the increase in net cash from operating activities. In particular, the reduction in receivables and other assets contributed to the improvement.

At €914 million, net cash used in investing activities was €396 million less than in the previous year. Cash was used above all for the capital increase at Postbank, to acquire Flying Cargo Ltd. and for the joint venture with New Zealand Post. We also increased our interests in Exel-Sinotrans Freight Forwarding and Williams Lea. Proceeds from the disposal of non-current assets stemmed primarily from real estate disposals. In addition, interest on the repayment awarded in the state aid proceedings led to a cash inflow of €495 million.

 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8

 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8