Deutsche Post Annual Report 2006

Materials expense and expenses from banking transactions
€m	2005	2006

Materials expense	20,010	28,641
Expenses from banking transactions	3,758	5,708
	23,768¹⁾	34,349

1)	Prior-period amount restated, see Note 5.

Materials expense
€m	2005	2006

Cost of raw materials, consumables and supplies, and of goods purchased and held for resale
Fuel	413	669
Aircraft fuel	532	571
Packaging material	106	223
Goods purchased and held for resale	332	128
Office supplies	108	102
Spare parts and repair materials	45	69
Other expenses	51	100
	1,587	1,862
Cost of purchased services
Transportation costs	13,242	19,757
Cost of temporary staff	868	1,690
Expenses from non-cancelable leases	931	1,297
Expenses from cancelable leases	302	497
Other lease expenses (incidental expenses)	225	346
Maintenance costs	749	953
IT services	894	916
Commissions paid	283	294
Other purchased services	929	1,029
	18,423¹⁾	26,779
	20,010¹⁾	28,641

1)	Prior-period amount restated, see Note 5.

The increase in materials expense was a result of the expansion of the LOGISTICS and EXPRESS Divisions’ business activities, in particular in the Europe and Asia Pacific regions. Higher transportation costs as a result of increased oil prices also had a substantial impact on materials expense.

€277 million of the cost of purchased services is attributable to Williams Lea, of which €172 million related to the cost of temporary staff.

Other purchased services include a number of individual items.

Expenses from banking transactions
€m	2005	2006

Interest expense on liabilities	2,182	3,566
Interest expense on securitized liabilities	727	833
Interest expense on subordinated debt	171	253
Commission expense	103	214
Other interest expenses	575	842
	3,758	5,708

The increase in expenses from banking transactions is largely due to the acquisition of BHW.

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12. Materials expense and expenses from banking transactions

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