Future financing

At the start of 2008, we launched a commercial paper programme with a maximum volume of €1 billion. This complements our portfolio of short-term financing tools and enables us to issue notes in various currencies at short notice with maturities of generally less than ninety days. The lasting fundamental need for financial resources will, however, continue to be met by long-term financing tools, as short-term note issues under the commercial paper programme only meet the financing requirements otherwise covered by short-term bank loans.

Capital expenditure plans

The 2008 budget earmarks expenditure in a slightly larger amount than in 2007. Property, plant and equipment will again attract the larger portion of spending, with more than three-quarters being allocated to the MAIL, EXPRESS and LOGISTICS divisions.

In the domestic mail and parcel business, we intend to improve production, amongst other things by testing machinery that sorts standard and compact letters. In Corporate Information Solutions we will focus on customer projects and the replacement of printers and enveloping machines. We also intend to improve the technical equipment of the international mail business. In the outlets, electronic POS hardware is to be renewed and the agency network expanded.

In the EXPRESS Division, we will complete the European hub in Leipzig/Halle, develop our infrastructure and renew the vehicle fleet in several countries. In the United States, IT applications are to be developed and operating facilities modernised. Infrastructure projects are also envisaged in other regions – hubs in particular in the Asia Pacific region and primarily vehicles in the EEMEA region.

In the LOGISTICS Division, we will continue to invest chiefly in customised transport services, appropriate warehousing solutions and the associated information systems. In view of the targeted business development, we expect capital expenditure to rise overall in the medium term.

Postbank will be primarily investing in the implementation of statutory requirements, including the flat-rate withholding tax on investment income, Basel II and the liquidity management project. The purpose of this project is to appropriately control liquidity risks in compliance with the practices of the Basel Committee on Banking Supervision. Further improvements to branches will also be made.

Company-wide capex will concentrate on vehicle procurement on a scale similar to the previous year.

Future procurement activities

In future, all standard contracts will contain a Code of Conduct for suppliers. We shall thus ensure that all companies working with us comply with our ethical and environmental principles.

Future research and development

As a pure service provider, Deutsche Post World Net does not perform any notable research and development activities. This section therefore does not contain any disclosures.