Exel and BHW integrated successfully

In December 2005, we acquired the UK company Exel plc (Exel), which was included in the consolidated group as of December 31, 2005. Our Group subsidiary Deutsche Postbank AG acquired a majority interest in BHW Holding AG (BHW) with effect from January 2, 2006. These two key acquisitions were integrated quickly and smoothly during the period under review. We also rounded off our portfolio by making selected acquisitions and disposals.

International platform for mail logistics expanded

In the MAIL Division, we made the following important investments:

• On March 24, 2006, we acquired 66.15% of the shares, and hence a majority stake, in the UK company Williams Lea, the global leader in corporate information management solutions. With the acquisition of this interest, we are expanding both our international presence and our range of Value-added services.
• As announced in November 2006, Williams Lea acquired 100% of the shares in the UK company The Stationery Office, the public-sector leader in print and document management with excellent contacts in public administration. The transaction was completed on January 10, 2007.

Air freight capacity secured in the express business

In the EXPRESS Division, we made considerably fewer acquisitions in the period under review. The only major acquisition was that, on November 28, 2006, we agreed to purchase 49% of US airline Polar Air Cargo Worldwide. The transaction is likely to take legal effect in the first half of 2007. It guarantees DHL long-term access to air freight capacity on trans-Pacific routes.

Logistics business consolidated following the acquisition of Exel

In 2006, in the course of integrating Exel, we made a series of smaller acquisitions to complement the business area.

Postbank becomes the leading financial services provider for private customers

The acquisition of BHW Holding was completed on January 2, 2006. Postbank now holds 98.43% of the shares in the home financing specialist, making it Germany’s leading financial services provider for private customers. With approximately 4,400 mobile financial advisors, it offers the largest network of advisors controlled by a bank. The official program for integrating Postbank, BHW and the retail outlets was completed on October 1, 2006, three months ahead of schedule.

Ongoing portfolio management

In addition to making acquisitions in 2006, we continued to optimize our portfolio by disposing of activities that were not part of our core business. These included activities that were acquired together with Exel and classified as non-core activities. The key disposals were:

• McPaper AG, Germany, as of January 1, 2006
• Marken Ltd., UK, as of March 21, 2006
• Vfw Thermomed GmbH & Co. KG, Germany, as of October 19, 2006
• Building society Modra Pyramida Stavebni Sporitelna, a. s., as of October 10, 2006