• Responsibility Statement 
• Independent Auditor´s Report 
• Consolidated Balance Sheet 
• Consolidated Income Statement 
• Consolidated Statement of Cash Flows 
• Consolidated Statement of Recognized Income and Expense 
• Notes 
• Statement of Movements of Intangible and Tangible Assets and Financial Assets 
• Shareholdings 

25 Cost by Nature

Expenses are presented by function in the income statement. Supplementary information on the expenses by nature is detailed below.

Cost of Materials
The total cost of materials was € 5.153 billion and € 5.470 billion for the years ending December 31, 2007 and 2006, respectively.

Personnel Expenses
Personnel expenses were as follows:

Personnel Expenses

€ in millions

	Year ending Dec. 31
	2007	2006
Wages and salaries	1,133	942
Social security contributions	92	92
Pension expense	54	53
Personnel expenses	1,279	1,087

Personnel expenses which are directly attributable to the production costs of goods are included within the cost of sales.