Changes in portfolio and reporting

In order to strengthen the focus on our core activities in the Supply Chain business unit in the United States, we sold Exel Transportation Services Group (ETS), a provider of freight brokerage and intermodal services in the USA and Canada, on 1 April 2011.

On the same date, we incorporated a specialist provider of internet advertising services into the MAIL division by acquiring all shares of Adcloud GmbH, Cologne, Germany.

The acquisition of the 100% interest in Eurodifarm srl., Lodi, Italy, was completed in the middle of May 2011. As part of the SUPPLY CHAIN division, the company specialises in the temperature-controlled distribution of pharmaceutical and diagnostic products.

On 1 June 2011, we acquired all the shares of Standard Forwarding LLC, East Moline, USA. This acquisition expands our freight business capacities in the Freight business unit.

DHL Express Canada sold its domestic business to the transport company TransForce at the end of June and is now focusing on international express services in Canada.

In the middle of July, we acquired Tag EquityCo Limited, Cayman Islands, together with its subsidiaries. The Tag Group is an international provider of marketing execution and production services. The company has been assigned to the Williams Lea business unit. We expect to achieve synergies and economies of scale through the combined service offering.

Due to a change in the legal framework in China, we sold our domestic express business to the Chinese company Unitop Industry, Shenzhen, in the third quarter.

In the MAIL division, we adjusted our method of reporting revenues and materials expense in the Williams Lea business unit at the end of 2011. Discounts granted to customers are no longer recognised under materials expense but are consistently deducted from revenues. The prior-year figures were adjusted.

As at 1 July, we transferred the Home Delivery business in Germany from the SUPPLY CHAIN division to the MAIL division. The significant synergies between this delivery service and the German parcel business will allow us to cultivate the market in this sector more intensively.