(17) Partners' taxes

In accordance with a mandatory requirement of IFRS, taxes on the profits of Freudenberg Group companies attributable to the partners in Freudenberg & Co. are not recognized as tax expense for the current year but are treated as a withdrawal of profit by the partners.

The Partnership Agreement places Freudenberg & Co. under an obligation to ensure the payment of taxes on the profits earned which are to be paid by the partners. The tax burden for fiscal 2003 (including deferred tax) was -1.6 million Euro (2002: -22.0 million Euro).