DHL 2008 Annual Report Download - page 137

Deutsche Post World Net Annual Report 2008
Consolidated Financial Statements
Notes
EXPRESS
In February , Deutsche Post Beteiligungen Holding
GmbH, Germany, formed Express Couriers Australia Pty Ltd.,
Australia, with a view to entering into a    joint venture with
New Zealand Post, New Zealand. By  June, the joint venture had
taken over business units from  Global Forwarding, Australia.
At the same time, New Zealand Post acquired a   interest in the
company. At the beginning of July, the joint venture acquired New
Zealand Post Australia Pty Ltd. and its subsidiaries for   million.
A further   million was spent to acquire the assets and operations
of Hills Transport Pty Ltd., Hills Express Pty Ltd., Aufast Couriers
Pty Ltd. and  Services Pty Ltd.
In June , the Group acquired a   interest in the 
company Polar Air Cargo Worldwide, Inc. (Polar Air Cargo), a
leading provider of global air freight services. Under the terms of its
contractual arrangements that took e ect at the end of October ,
the company predominantly provides services to the Group and has
therefore been fully consolidated since November . Polar Air
Cargo was previously included in the consolidated  nancial state-
ments as an associate. Provisional goodwill of   million arose
on its full consolidation.  e  nal purchase price allocation will be
presented in a later set of  nancial statements, as not all the neces-
sary information is available at the present time.
Net assets
€ m Fair value from preliminary
purchase price allocation 1)
Intangible assets 1
Property, plant and equipment 0
Current assets and cash and cash equivalents 137
Non-current liabilities – 1
Current liabilities – 103
Net assets acquired 34
1) Corresponds to the carrying amount.
Since November, the company has contributed   mil-
lion to consolidated revenue. It has signi cant service relationships
with the Group.
GLOBAL FORWARDING/FREIGHT
On  December ,  (Flying Cargo) International
Transportation Ltd., Israel, was acquired for   million. Flying
Cargo is the Israeli market leader in air and ocean freight. In the
 rst quarter of , the former shareholders were paid the equiva-
lent of   million, of which   million related to the  rst tranche
of the purchase price and   million to the repayment of loans by
former shareholders.  e remainder of the purchase price is expected
to be paid in . Goodwill of   million arose on the company’s
initial consolidation.  e purchase price allocation was completed
as at  September  and is as follows:
Measurement of goodwill
€ m
31 December 2007
Acquisition costs 85
Less net assets measured at fair value 11
Goodwill 74
Net assets
€ m Carrying
amount Adjustments Fair value
Intangible assets 113 14
of which software and licences 1 0 1
of which customer list 011 11
of which brand 0 2 2
Property, plant and equipment 1 0 1
Current assets and cash
and cash equivalents 40 040
Current liabilities – 36 0– 36
Deferred taxes – 5 – 3 – 8
Net assets acquired 110 11
In  nancial year , Flying Cargo contributed   mil-
lion to consolidated revenue and   million to consolidated .
SUPPLY CHAIN/CIS
In the second quarter of , Deutsche Post Beteiligungen
Holding GmbH, Germany, increased its stake in Williams Lea
Holdings plc., , from   to   for a purchase price of   mil-
lion.  e  nancial liability for the remaining outstanding shares fell
to   million.
In April ,  Exel Supply Chain Hong Kong acquired
from Sinotrans Air Transportation Development, China, the remain-
ing   of the shares in their joint venture, Exel-Sinotrans Freight
Forwarding Co. Ltd., China, for   million and has since been the
sole owner.  e company has been renamed  Logistics (China)
Co. Ltd. It was previously accounted for in the consolidated  nancial
statements as a proportionately consolidated joint venture. Good-
will of   million arose on its full consolidation.  e purchase price
allocation is as follows:
Measurement of goodwill
€ m
1 April 2008
Cost of the investment (second tranche) 61
Less proportionate net assets measured at fair value – 30
Goodwill 31
133