Annual Report 2009/10 Excellence in Retailing - Douglas Holding

DVA calculation
Based on the premise that the DOUGLAS Group and its individual subsidiaries only
generate value if the required cost of capital employed is at least covered by their earnings,
the DVA is calculated by subtracting the imputed financial costs of capital employed from
the net operating profit after taxes (NOPAT). The NOPAT is the operating profit before financing
costs minus income taxes. Capital employed is the total of all assets minus all noninterest
bearing liabilities plus the allocable present value of rental and lease obligations.
The capital employed is calculated based on the average of the four quarters of a fiscal year.
The DOUGLAS Group’s cost of capital is derived from the weighted average cost of
capital (WACC) concept. As in the preceding year, this amounted to 6.5 percent after taxes
for the DOUGLAS Group in the year under review. This takes into account interest for
both lenders and investors. The cost of equity is calculated using the capital asset pricing
model (CAPM). In addition to the absolute DVA of the period, the Delta DVA is also a key
performance indicator. This illustrates whether, and the extent to which, the DVA could
be increased in comparison to the preceding year.
Statement of Value Added
The DOUGLAS Group’s statement of value added details the origin and the use of economic
performance in the reporting and preceding fiscal years. Value added is calculated
by deducting intermediate input – cost of materials, depreciation and amortization and
other expenses – from the Group’s performance. The origin and use of the valued added
is then compared. The portions of value added received are shown by the individual inter-
Fig. 13 · Statement of Value Added
2009/10 2008/09 Change
(in EUR m) (in %) (in EUR m) (in %) (in %)
Origin of Value Added
Net sales 3,320.8 93.9 3,200.8 93.7 3.7
Other income 215.0 6.1 213.8 6.3 0.6
Group performance 3,535.8 100.0 3,414.6 100.0 3.5
Cost of materials −1,749.5 −49.5 −1,683.5 −49.2 3.9
Depreciation/amortization −145.2 −4.1 −138.9 −4.1 4.5
Other Expenses −776.1 −21.9 −772.0 −22.6 0.5
Value Added 865.0 24.5 820.2 24.0 5.5
Use of Value Added
Employees 720.3 83.2 698.3 85.1 3.2
Public sector 55.1 6.4 41.1 5.0 34.1
Shareholders 43.3 5.0 43.2 5.3 0.0
Company (retained earnings) 32.6 3.8 19.6 2.4 66.8
Creditors 13.5 1.6 18.0 2.2 −25.0
Minority interests 0.2 0.0 0.0 0.0 −
Value Added 865.0 100.0 820.2 100.0 5.5
Management Report
Key results
Business activities and operating environment
Net assets, financial position and result of operations
DOUGLAS HOLDING AG
Subsequent events
Control system and success factors
Opportunities and risks situation
Statutory disclosures
Forecast and overall assessment
Fig. 13
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