DHL 2004 Annual Report Download - page 97

93
Consolidated Financial Statements
Notes
12
Materials expense and expenses
from banking transactions
The materials expense and expenses from banking transactions are
composed of the following items:
Materials expense and expenses
from banking transactions
in € m 2003 2004
Materials expense 14,084 16,509
Expenses from banking transactions 4,382 4,037
18,466 20,546
The materials expense is broken down as follows:
Materials expense
in € m 2003 2004
Cost of raw materials, consumables
and supplies, and of goods purchased
and held for resale
Fuel, repair materials 412 559
Office supplies 346 398
Aircraft fuel 192 243
Goods purchased and held for resale 174 171
Other expenses 44 10
1,168 1,381
Cost of purchased services
Transportation costs 9,919 11,423
Cost of temporary staff 778 1,490
Maintenance costs 706 738
IT services 765 677
Commissions paid to postal agencies 218 211
Energy 194 156
Prior-period expenses 20 11
Other purchased services 316 422
12,916 15,128
14,084 16,509
The increase in the materials expense relates firstly to the rise in
fuel prices and transportation costs (in particular resulting from
the growing outsourcing of transportation services), and secondly
to the acquisition of Airborne Inc. and the consolidation in full of
Securicor, which is reflected in particular in the cost of temporary
staff (subcontractor services for Airborne Inc.).
In addition to the amount of €142 million that is primarily
due to a service agreement that relates to the operation of the
Wilmington hub and that was concluded between Airborne Inc.
and the spun-off airline ABX Air Inc. (ABX), USA, other purchased
services include a number of individual items that do not exceed
€10 million.
Expenses from banking transactions are composed of the
following items:
Expenses from banking transactions
in € m 2003 2004
Interest expense on liabilities 1,970 1,963
Interest expense on securitized liabilities 1,348 934
Interest expense on subordinated debt 85 103
Commission expense 73 94
Other interest expenses 906 943
4,382 4,037
The reduction in expenses from banking transactions is largely
due to the fall in interest rates. The interest expense on securitized
liabilities fell as a result of the reduced volume (see also note 42
“Liabilities from financial services”).
13 Staff costs/Employees
Staff costs are composed of the following items:
Staff costs
in € m 2003 2004
Wages, salaries and compensation 10,552 11,334
thereof expenses for options
under the stock option plans 21 31
thereof expenses for SARs under
the stock option plans 1 2
Social security contributions 1,589 1,630
Retirement benefit expenses 928 514
Welfare and assistance benefits 260 266
13,329 13,744
The increase in staff costs as against the previous year is mainly
due to the acquisition of Airborne Inc. and the consolidation in
full of Securicor as well as higher employee wages, salaries and
compensation.
The fall in retirement benefit expenses results from the
planned reduction of VAP pensions (further details can be found
in note 4 “Significant transactions”). Retirement benefit expenses
also include € 650 million (previous year: € 664 million) relating to
contributions by Deutsche Post AG and € 67 million (previous year:
€ 77 million) relating to contributions by Deutsche Postbank AG to
Bundes-Pensions-Service für Post und Telekommunikation e. V.
Further details can be found in note 37 “Provisions for pensions
and other employee benefits”.
Staff costs relate mainly to wages, salaries and compensa-
tion, as well as all other benefits paid to employees of the Group for
their services in the year under review.
Additional Information Consolidated Financial Statements