The increase in staff costs is primarily attributable to the Exel Group acquired in 2005. The acquisition of Williams Lea contributed €224 million and the acquisition of the BHW Group €247 million to staff costs.

Retirement benefit expenses include €559 million (previous year: €650 million) relating to contributions by Deutsche Post AG and €111 million (previous year: €64 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 41.

Staff costs relate mainly to wages, salaries and compensation, as well as all other benefits paid to employees of the Group for their services in the year under review. Social security contributions relate in particular to statutory social security contributions paid by employers.

Retirement benefit expenses relate to current and former employees or their surviving dependants. These expenses consist of additions to pension provisions, employer contributions to supplementary occupational pension plans and retirement benefit payments by employers for their employees.

The average number of employees of Deutsche Post World Net in the year under review, classified by employee groups, was as follows:

The number of full-time equivalents as of December 31, 2006 was 463,350 employees (December 31, 2005: 455,115 employees). The employees of companies acquired or disposed of during the year under review were included ratably. The employees of the joint venture companies have been included proportionately.