Deutsche Post World Net presents capital markets program
Deutsche Post World Net today presented its “Roadmap to Value,” a far-reaching capital markets program to use the company’s excellent market position to generate more value for its shareholders. The program is aimed at making Deutsche Post World Net the most attractive investment in the logistics industry in addition to being the No. 1 choice for customers and employees.
The capital markets program “Roadmap to Value” is aimed at making the group the most attractive investment in the logistics industry.
With a comprehensive profit improvement program affecting all units and divisions, Deutsche Post World Net plans to generate 1 billion euros to underpin EBIT growth through 2009. In order to boost cash, the Group aims to reduce net working capital by 700 million euros and raise at least 1 billion euros in proceeds from the disposal of real-estate and other non-strategic assets over the next two years. The management board will also propose to raise the 2007 dividend by 20 percent to 90 cents per share compared with 75 cents per share for 2006. To help increase transparency, Deutsche Post World Net will unbundle its SERVICES division and in principle has committed itself to a stable reporting structure in the future.
In order to establish the value-based approach throughout the Group, Deutsche Post World Net will introduce a new performance metric. The metric, EBIT after Asset Charge, is aimed at motivating managers to generate more value from their day-to-day businesses. Chief Financial Officer John Allan: “The new metric will help us leverage our strengths and attack our weaknesses in order to raise returns for investors and to serve customers even better. We have highly motivated, best-in-class managers and employees around the globe and I am very confident that they are going to rise to this challenge.”
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