Flexible and stable financing

The Group covers its long-term financing requirements by maintaining a balanced ratio of equity to liabilities. This ensures our financial stability whilst providing adequate flexibility. Our most important source of funds is net cash from operating activities. We cover our borrowing requirements using a number of independent financing sources, including confirmed bilateral credit lines, bonds and structured financing transactions, and operating leases. Most debt is taken out centrally in order to leverage economies of scale and specialisation benefits and hence to minimise the cost of capital.

The Group has total unsecured committed credit lines of €2.7 billion, of which only €0.2 billion had been drawn down as at 31 December 2009. As part of our banking policy, we ensure we spread the volumes widely and maintain long-term business relationships with financial institutions. Alongside the customary equal treatment clauses and termination rights, the relevant loan agreements do not contain any further covenants concerning the Group’s financial indicators. On average, only around 7% of credit lines were drawn down in 2009 (previous year: 17%).

Guarantees and letters of comfort

Deutsche Post AG provides security for the loan agreements, leases and supplier contracts entered into by Group companies, associates or joint ventures as necessary by issuing letters of comfort, sureties or guarantees. This practice allows better conditions to be negotiated locally. The sureties are provided and monitored centrally.