Today the Federal Government of Germany implemented a January 2012 ruling of the European Commission by officially delivering to Deutsche Post DHL a demand for repayment of state aid including interests in the amount of EUR298 million. The European Commission had initiated a formal investigation concerning state aid in 2007 and reached the conclusion that that the consideration of pension expenses during price approvals by the Federal Network Agency (Bundesnetzagentur) led to incompatible state aid for Deutsche Post.
This, therefore, in part constituted incompatible state aid. In its ruling, the Commission did not determine the amount of the controversial state aid but had initially expected the range to be between EUR500 million to EUR1 billion. The amount ultimately calculated by the federal government on the basis of the ruling is EUR298 million.
The liquidity of the Group will continue to remain solid
Deutsche Post DHL, as well as the Federal Government of Germany, has meanwhile filed an appeal with the European Court of Justice against the state aid ruling made by the European Commission. From the company’s point of view, the ruling is incomprehensible and has no basis in fact as the Commission addressed matters they had already examined during similar state aid proceedings from 2002, matters that had ended in a defeat for the Commission in September 2010 as a result of a company appeal in the ultimate legal instance.
Since it is the company’s opinion that the state aid ruling from January cannot withstand legal review, the payment that is to be made will be recorded only in the balance sheet for 2012. As a consequence, company earnings both in the past fiscal year and in the years to come remain unaffected by the decision. The liquidity of the Group will continue to remain solid.