Earnings

Changes in reporting

The current reporting format is the one that will apply to the Group in the future following the agreed sale of Postbank. The Pension Service has been reallocated from the FINANCIAL SERVICES Division to the MAIL Division, as they share a regulatory environment that is almost the same. The remaining segment consists only of Postbank and is thus reported under “discontinued operations”. We report our other activities as “continuing operations”.

With effect from 1 January 2008, we unbundled the SERVICES Division, allocated the costs of Global Business Services to the operating units and gave the MAIL Division responsibility for the retail outlets. We now report a more narrowly defined unit, Corporate Center/Other. In addition, we split up the LOGISTICS Division into the new GLOBAL FORWARDING/FREIGHT Division and the new SUPPLY CHAIN/CIS Division. The prior-year amounts have been restated accordingly. Details can be found in the Segment reporting disclosures.

Portfolio expanded

In the reporting year, the main changes to our portfolio were as follows:

• FC (Flying Cargo) International Transportation Ltd., an Israeli company domiciled in Tel Aviv, was included for the first time in profit and loss. We purchased all shares in the company on 31 December 2007.
• In April 2008, we increased our 66% stake in Williams Lea to 96%. The Group had made an unconditional cash offer to acquire the outstanding shares held by Williams Lea’s minority shareholders.
• In April 2008, we acquired the remaining 50% of the shares in the Exel-Sinotrans Freight Forwarding Co., Ltd. joint venture. The company was renamed DHL Logistics (China) Co., Ltd. and has been fully consolidated.
• Express Couriers Australia Pty Ltd., a joint venture with New Zealand Post that was established at the beginning of the year, commenced operations in the third quarter, primarily by acquiring business units from New Zealand Post. The company has been proportionately consolidated.
• At the end of October, we entered into a charter agreement for block space with Polar Air Cargo Worldwide, Inc., a US company. The agreement guarantees us access to six cargo aircraft. Due to this contractual regulation, Polar Air Cargo has been fully consolidated.

Consolidated revenue from continuing operations increased

Consolidated revenue from continuing operations increased by 0.8% to €54,474 million in financial year 2008 (previous year: €54,043 million). However, this figure was reduced by negative currency effects of €2,168 million. As a globally operating logistics group, we generated, with 69.2%, the majority of our revenue outside of Germany, an increase of 0.1% over the previous year.

 1 | 2 | 3

 1 | 2 | 3