DHL Group reports five operating segments for the 2023 fiscal year; these are managed independently by the responsible segment management bodies in line with the products and services offered and the brands, distribution channels and customer profiles involved. Components of the entity are defined as a segment on the basis of the existence of segment managers with bottom-line responsibility who report directly to DHL Group’s top management.
External revenue is the revenue generated by the divisions from non-Group third parties. Internal revenue is revenue generated with other divisions. If comparable external market prices exist for services or products offered internally within the Group, these market prices or market-oriented prices are used as transfer prices (arm’s-length principle). The transfer prices for services for which no external market exists are generally based on incremental costs.
The expenses for services provided in the IT service centers are allocated to the divisions by their origin. The additional costs resulting from Deutsche Post AG’s universal postal service obligation (nationwide retail outlet network, delivery every working day), and from its obligation to assume the remuneration structure as the legal successor to Deutsche Bundespost, are allocated to the Post & Parcel Germany division.
In keeping with internal reporting, capital expenditure (capex) is disclosed. Additions to intangible assets net of goodwill and to property, plant and equipment, including right-of-use assets, are reported in the capex figure. Depreciation, amortization and impairment losses relate to the segment assets allocated to the individual divisions. For reasons of transparency, net cash from/used in operating activities is now shown in segment reporting instead of in other noncash expenses and income, as previously.
The profitability of the Group’s operating divisions is measured as profit from operating activities (EBIT).
10.2 Segments by division
The primary reporting format is based on the divisions, reflecting the Group’s predominant organizational structure. The Group distinguishes between the following divisions:
Express
The Express division offers time-definite courier and express services to business and private customers. The division comprises the Europe, Middle East and Africa, Americas and Asia Pacific regions.
Global Forwarding, Freight
The Global Forwarding, Freight division comprises international air, ocean and overland freight forwarding services. The division’s business units are Global Forwarding and Freight.
Supply Chain
The Supply Chain division delivers customized logistics services and supply chain solutions to its customers based on globally standardized modular components including warehousing, transport and value-added services. The division comprises the Europe, Middle East and Africa, Americas and Asia Pacific regions.
eCommerce
The eCommerce division is home to the Group’s international parcel delivery business. The core business activities are domestic parcel delivery in selected countries in Europe, Asia and the United States and non-TDI cross-border services.
Post & Parcel Germany
The Post & Parcel Germany division transports, sorts and delivers documents and goods in and outside of Germany. Its business units are called Post Germany, Parcel Germany and International.
In addition to the reported segments shown above, segment reporting comprises the following categories:
Group Functions
Group Functions includes Corporate Center, Global Business Services (GBS) and Customer Solutions & Innovation (CSI). The profit/loss generated by GBS is allocated to the operating segments, while its assets and liabilities remain with GBS (asymmetrical allocation).
Consolidation
The data for the divisions is presented following consolidation of interdivisional transactions. The transactions between the divisions are eliminated in the Consolidation column.
10.3 Information about geographical regions
The main geographical regions in which the Group is active are Germany, Europe (excluding Germany), the Americas, Asia Pacific, and Middle East and Africa. External revenue, noncurrent assets and capex are disclosed for these regions. Revenue, assets and capex are allocated to the individual regions on the basis of the domicile of the reporting entity. Noncurrent assets comprise intangible assets, property, plant and equipment and other noncurrent assets (excluding pension assets).
10.4 Reconciliation of segment amounts to consolidated amounts
The following table shows the reconciliation of DHL Group’s total assets to the segment assets. Financial asset components, income tax assets, deferred taxes, cash and cash equivalents and other asset components are deducted.
The following table shows the reconciliation of DHL Group’s total liabilities to the segment liabilities. Components of the provisions and liabilities as well as income tax liabilities and deferred taxes are deducted.
